Exam 2

The desired ends toward which efforts are directed comprise a. the organization's goals. b. the mission. c. the organization's objectives. d. None of the above.

A

The CEO also serving as chair of the board is known as a. a rubber stamp mentality. b. corporate governance. c. CEO duality. d. executive leadership.

C

The Internet a. has unleashed a number of successful business models. b. has unleashed a number of unsuccessful business models. c. can be factored into most successful business models. d. All of the above.

D

T/F Most organizations can be classified as either ethical or unethical

False. (managers and employees)

T/F Offshoring refers to the relocation of some or all of a firm's manufacturing or other business activities to another country, usually to reduce costs.

True

The triple bottom line refers to the notion that firms must maintain and improve social and ecological performance in addition to economic performance. True or False?

True

T/F In many respects, social forces are the drivers of consumer markets?

True. (In general, social forces are very strong in consumer markets)

A common suggestion to align the goals of managers with those of the stockholders is to pursue a. stock options. b. liberal vacation leave. c. lower salaries. d. None of the above.

A

Contracting out a firm's non-core, non-revenue-producing activities to other organizations primarily to reduce costs is known as a. outsourcing. b. offshoring. c. mass customization. d. commoditization.

A

Over the past several decades, the composition of the typical board has shifted from a. one controlled by insiders to one controlled by outsiders. b. one controlled by outsiders to one controlled by insiders. c. one controlled by insiders to one controlled by government agencies. d. None of the above.

A

The attractiveness of diversification is consistent with which agency perspective? a. Management serves its own interests. b. Management and stockholders share the same interests. c. Management pursues the interests of the stakeholders. d. None of the above.

A

The decline in unit costs of a product or service that occurs as the absolute volume of production increases is known as a. economies of scale. b. mass customization. c. specialization. d. None of the above.

A

The preoccupation with firm growth is consistent with which agency perspective? a. Management serves its own interests. b. Management and stockholders share the same interests. c. Management pursues the interests of the stakeholders. d. None of the above.

A

The unconscious reference to one's own cultural values as a standard of judgment is known as a. the self-reference criterion. b. cultural distinction. c. cultural awareness. d. cultural apathy.

A

Which of the following is the largest form of electronic commerce? a. business-to-business (B2B) b. business-to-consumer (B2C) c. consumer-to-business (C2B) d. consumer-to-consumer (C2C)

A

Which of the following might represent the goals of customers? a. The company should provide high quality products and services at the most reasonable prices possible. b. The company should maintain a healthy financial posture and a policy of on-time payment of debt c. The company should produce a higher-than-average return on equity. d. The company should provide goods and services with minimum environmental costs, increase employment opportunities, and contributing to social and charitable causes.

A

Agency Problem:

A situation in which a firms' top managers (i.e., the "agents" of the firms' owners) do not act in the best interests of the shareholders.

A purchase of a controlling quantity of shares of a firm by an individual, a group of investors, or another organization is known as a a. leveraged buyout. b. takeover. c. stock option. d. None of the above.

B

A situation in which a firm's managers fail to act in the best interest of the shareholders is known as a. management ineffectiveness. b. the agency problem. c. managerial goal incongruity. d. None of the above.

B

E-tailing is synonymous with___ A. B2B B. B2C C. C2C D. C2B

B

Individuals or groups who are affected by or can influence an organization's operations are called a. shareholders. b. stakeholders. c. organizational constituencies. d. None of the above.

B

Relocating some or all of a firm's manufacturing or other business processes to another country to reduce costs is known as a. outsourcing. b. offshoring. c. mass customization. d. commoditization.

B

Social responsibility and managerial ethics a. are synonymous. b. are related, but different concepts. c. are relative easy to assess. d. None of the above.

B

The country accounting for the greatest piece of the U.S. trade deficit is a. Mexico. b. China. c. India. d. None of the above.

B

The ethical perspective that suggests that organizational decisions should be made in accordance with established rules or guidelines is known as_____ A. the self-interest view B. the justice view C. the rights view D. the integrative social contracts view

B

When a recession occurs_______ A. all industries benefit B. some industries benefit C. no industries benefit D. none of the above

B

Which group of investors typically wields the greatest influence on the management of firms? a. blockholders b. institutional investors c. private shareholders d. the CEO

B

"Clicks and bricks" refers to a. businesses that focus on Internet technology as well as Internet distribution. b. retailers that utilize the Internet only as a support mechanism for traditional sales. c. businesses that emphasize both Internet-mediated and traditional forms of business. d. None of the above.

C

According to the notion of disaggregation and reaggregation, a. partnerships are usually not effective means of competing in the global marketplace. b. the Internet is not a viable means of product or service distribution. c. recent advances in Internet and related technologies, coupled with rapid economic development in parts of Asia and Eastern Europe, has enabled firms to reorganize work processes and improve efficiency. d. None of the above.

C

An individual's responsibility to make business decisions that are legal, honest, moral, and fair is known as _______ A. social responsibility B. the social imperative C. managerial ethics D. all of the above

C

One of Friedman's primary arguments in The World is Flat is that a. organizations must restructure every five years or so. b. global business has become more regionalized. c. recent changes have "leveled the playing field" between firms in developed nations and those in developing nations. d. None of the above.

C

Societal values, trends, traditional, and religious practices are examples of a. consumer forces. b. industry forces. c. social forces. d. None of the above.

C

The systematic collection and analysis of information about relevant environmental trends is known as a. industry analysis. b. macroenvironmental analysis. c. environmental scanning. d. None of the above.

C

The systematic collection and analysis of information about relevant macro-environmental trends is known as_______ A. strategic planning B. strategic management C. environmental scanning D. none of the above

C

Which of the following is NOT an example of a social force? A. trends B. values C. industrial change D. all of the above

C

Which of the following is not a strategic dimension of the Internet? a. focus on interactivity b. potential for cost reductions and cost shifting c. movement toward information asymmetry d. None of the above.

C

Which of the following might represent the goals of shareholders? a. The company should provide high quality products and services at the most reasonable prices possible. b. The company should maintain a healthy financial posture and a policy of on-time payment of debt. c. The company should produce a higher-than-average return on equity. d. The company should provide goods and services with minimum environmental costs, increase employment opportunities, and contributing to social and charitable causes.

C

According to the notion of disaggregation and reaggregation, a. partnerships are usually not effective means of competing in the global marketplace. b. the Internet is not a viable means of product or service distribution. c. effective business models do not change. d. None of the above.

D

Auction facilitator eBay is an example of which form of electronic commerce? a. business-to-business (B2B) b. business-to-consumer (B2C) c. consumer-to-business (C2B) d. consumer-to-consumer (C2C)

D

Corporate takeovers a. often receive substantial criticism. b. are widely supported as necessary. c. can increase debt for a firm. d. All of the above.

D

How has the Internet changed strategic management? A. it promotes information symmetry B. it can often be used as a distribution channel C. it often reduces cost D. all of the above

D

Leveraged buyouts can_______ A. strap the company with a large amount of debt B. serve as a system of checks and balances C. lead to a sale of company assets D. All of the above

D

Outsourcing efforts can fail because a. of hidden costs. b. of loss of control of the outsourced activity. c. a firm might outsource an activity that should not be outsourced. d. All of the above.

D

Scientific improvements and innovations are examples of a. social forces. b. industry forces. c. economic forces d. None of the above.

D

Social forces can a. vary widely among nations. b. affect different industries in markedly different ways. c. affect different businesses in an industry in different ways. d. All of the above

D

Technological forces often_____ A. decimate an entire industry B. spawn new industries C. vary substantially among industries D. all of the above

D

The CEO also serving as chair of the board is known as a. corporate domain. b. corporate governance. c. corporate congruence. d. None of the above.

D

The ability to individualize product and service offerings to meet specific buyer needs is known as a. commoditization. b. information symmetry. c. the "flat world." d. None of the above.

D

The assessment of strategies and related processes that promote superior performance from both market and environmental perspectives is known. as_______ A. CSR B. managerial ethics C. management decision-making effectiveness D. none of the above

D

The attractiveness of downsizing is consistent with which agency perspective? a. Management serves its own interests. b. Management and stockholders share the same interests. c. Management pursues the interests of the stakeholders. d. None of the above.

D

The competing priorities of an organization's stakeholders are known as a. the organization's goals. b. the mission. c. the organization's objectives. d. None of the above.

D

The idea that business firms should serve both society and the financial interests of the shareholders is known as a. the corporate charter. b. the corporate dilemma. c. managerial ethics. d. None of the above.

D

The increasing difficulty firms have distinguishing their products and services from those of their rivals is known as a. outsourcing. . b. offshoring. c. mass customization d. commoditization.

D

The reason for the firm's existence is known as______ A. the vision B. organizational goals C. organizational objectives D. none of the above

D

When implemented properly, outsourcing can a. cut costs. b. refocus the core business. c. improve firm performance. d. All of the above.

D

When outsiders are added to insider-dominated boards, a. CEO dismissal is less likely when performance is poor. b. insiders are more likely to press for corporate restructuring. c. insiders are likely to retain their relative influence on the management of the firm. d. None of the above.

D

Which of the following is not a reason that the outsourcing/offshoring debate is difficult to resolve? a. lack of key data b. differences in regulations c. complex firm relationships across borders d. All of the above are reasons.

D

Which of the following is not a strategic dimension of the Internet? a. movement toward information symmetry b. increased emphasis on speed c. potential for cost reductions and cost shifting d. None of the above.

D

Which of the following is not an example of a stakeholder? A. customers B. suppliers C. employees D. none of the above

D

Which view of ethics suggests that decisions should be based on existing norms of behavior, including cultural, community, or industry factors? a. rights view b. cultural view c. religious view d. None of the above.

D

Adverse selection exists when the parties in an arrangement do not share equally in the risks and benefits. True or False?

False

Any purchase of a controlling quantity of shares of a firm by an individual, a group of investors, or another organization is known as a leveraged buyout (LBO). True or False?

False

Corporate takeovers have been supported because of their ability to reduce the debt of acquired firms. True or False?

False

Creditors and suppliers typically share the same goals for the organization. True or False?

False

Environmental scanning refers to the systematic analysis of a firm's social responsible activity related to environmental awareness. True or False?

False

Goals are verifiable and specific, and are developed so that management can measure performance. True or False?

False

On-line shoppers tend to be single, female, and college educated. True or False?

False

Over the past several decades, the composition of the typical board has shifted from one controlled by insiders to one controlled by outsiders. True or False?

False

Social responsibility refers to an individual's responsibility to make business decisions that are legal, honest, moral, and fair. True or False?

False

T/F The integrative social contracts view of ethics suggests that decisions should be based on religious convictions

False

The Internet fosters information asymmetry, a state whereby the seller and buyer are not likely to share the same information. True or False?

False

The country accounting for the greatest piece of the U.S. trade deficit is Mexico. True or False?

False

The rate of technological change varies considerably across industries in different nations, but generally not in the same nation. True or False?

False

The unconscious reference to one's own cultural values as a standard of judgment is known as cultural discrimination. True or False?

False

When additional insiders are added to outsider-dominated boards, CEO dismissal is more likely when corporate performance declines. True or False?

False

T/F Commoditization refers to the ability to individualize product and service offerings to meet specific buyer needs.

False. (Mass customization refers to the ability. to individualize product and service offerings to meet specific buyer needs.)

T/F If a firm is able to consistently earn above-average profits, it is effectively balancing the goals of it stakeholders.

False. (Profitability is only one stakeholder goal.)

T/F The agency problem refers to the balancing act a firm must exhibit when attempting to satisfy the myriad of governmental agencies

False. (The agency problem refers to a situation in which a firm's managers fail to act in the best interests of the shareholders.)

T/F The unconscious reference to one's own cultural values as a standard of judgment is known as cultural bias.

False. (The unconscious reference to one's own cultural values as a standard of judgment is known as hte self-reference criterion.)

T/F Goals are specific and often quantified versions of objectives.

False. (objectives are specific and often quantified versions of goals.)

Adverse Selection

The inability of shareholders to identify the precise competencies and personal attributes of top managers when they are hired.

Diversification:

The process of acquiring companies to increase a firm's size.

A situation in which a firm's managers fail to act in the best interest of the shareholders is known as the stakeholder dilemma. True or False?

True

Commoditization refers to the increasing difficulty firms have distinguishing their products and services from those of their rivals. True or False?

True

Corporate takeovers have been promoted as a system of checks and balances for firm management. True or False?

True

Many companies limit the number of board memberships their own board members may hold. True or False?

True

Mass customization refers to the ability to individualize product and service offerings to meet specific buyer needs. True or False?

True

Objectives are specific, often quantified, versions of goals. True or False?

True

Offshoring refers to relocating some or all of a firm's manufacturing or other business processes to another country to reduce costs. True or False?

True

One of the reasons that outsourcing/offshoring debates are so difficult to resolve is that accurate data can be difficult to obtain, especially in developing nations. True or False?

True

Outsourcing refers to contracting out a firm's non-core, non-revenue-producing activities to other organizations primarily to reduce costs. True or False?

True

Reading the Wall Street Journal can be an integral part of environmental scanning. True or False?

True

Social forces can vary markedly among nations, even those whose cultures are similar. True or False?

True

The Internet acts as a distribution channel for many non-tangible goods and services. True or False?

True

The process of disaggregation and reaggregation has resulted in an increased emphasis on partnerships. True or False?

True

The utilitarian view of ethics suggests that anticipated outcomes and consequences should be the primary considerations when evaluating an ethical dilemma. True or False?

True

When additional outsiders are added to insider-dominated boards, outsiders are more likely to pressure for corporate restructuring when performance is poor. True or False?

True

T/F Reading business publications can serve as a means of environmental scanning.

True. (Environmental scanning is the process of staying abreast of changes in the macro-environment, a process that can be assisted by reading business publications.)

T/F The expansion of a religion in an emerging country is an example of a social force.

True. (Religious values in all countries, emerging or otherwise, constitute a key social force.)

T/F Environmental scanning can be difficult for large firms because fo the availability of too much information

True. (The main problem created by environmental scanning is often one of determining which information available warrants attention.)