Old Questions: Business Exam 2

Which of the following statements is true in the context of decision making under a condition of uncertainty?

A decision maker greatly relies on intuition, judgment, and experience.

_____ are federally licensed to borrow money from the Small Business Administration and to invest it in or lend it to small businesses.

small business investment companies

Which of the following is a possible diagnostic activity in organization development?

Attitude surveys

_____ is power that has been legitimized by the organization

Authority

Which of the following is true of business process changes?

Business process change requires a careful blend of top-down and bottom-up involvement.

_____ is defined as the process of linking the activities of the various departments of an organization.

Coordination

The _____ boasts a total membership of more than 10,000 small-business owner largest number in the country; it offers its members not only networking possibilities but also educational programs and services tailored to their needs.

Council of smaller enterprises of cleveland

Which of the following is an example of a goal for change for an organization?

Deciding to decrease employee turnover rates by 90 percent

​A(n) _____ is a form of group decision making in which a group arrives at a consensus of expert opinion.

Delphi group

Which of the following is one of the characteristics of Weber's bureaucracy?

Distinct division of labor

A company has set an objective to increase its product sales by 50 percent in the next two years. Identify the step of the organization change process of the company.

Establishment of goals for the change

The _____ design is essentially a holding company that results from unrelated diversification.

H-Form

​Christine, a teacher, notices that the performances of her students at class tests have been declining. While attempting to find a solution to the problem, she thinks of three choices: rewarding students who get good grades, holding class tests more often, or punishing students when they perform poorly in the tests. Which step of the rational decision-making process is Christine in?

Identifying alternatives

A company has built a new manufacturing plant to increase production. This scenario illustrates which step in the Lewin model of organization change?

Implementation

One of the benefits of job specialization is that:​

It makes employees proficient at a task

Who among the following is most likely to be an entrepreneur?

Mariam has taken a loan to fund her new café.

Which of the following is an advantage of group decision making when compared to individual decision making

More alternatives are likely to be generated

Identify the true statement about small businesses.

New jobs are also being created by small firms specializing in international business.

Jenny runs a small boutique in New Orleans and has five employees working under her. Lately, she has noticed that her boutique has not been delivering customer orders on time, and she has realized that it is because of the rise in the number of customers and insufficient manpower. She has decided to employ another five employees. Which step of the change process is illustrated in the scenario?

Selection of an appropriate change technique

Jason worked as a manager for 30 years in a leading corporation who now works with the Small Business Administration. As he wishes to help small business, he provides free consultation and assistance to new entrepreneurs. Jason is most likely to belong to:

Service Corps of Retired Executives.

Identify an accurate comparison between small businesses and large businesses.

Small businesses are better than large businesses in identifying niches.

What is a disadvantage of starting a business through a franchise agreement?

The franchise agreement may be difficult to terminate.

Which of the following statements is true about a franchise agreement?

The franchisee can consult the franchiser for managerial and financial help.

Which of the following is one of the assumptions on which the theory and practice of organization development (OD) are based?

The total organization and the way it is designed influence the way individuals behave within the organization.

Which of the following statements is true about entrepreneurs?

They essentially start new businesses.

Under the _____ arrangement, the members and units in an organization are grouped into functional departments such as marketing and production.

U-form

​Service businesses:

appeal to the talent for innovation typified by many small enterprises.

The administrative model of decision making argues that decision makers _____ while making decisions.

are constrained by bounded rationality

Entrepreneurs:

are usually better at discovering new markets than are larger, more mature organizations.

Which of the following helps a manager avoid groupthink during group decision making?

assigning one person to act as devils advocate

Keisha is the vice president of accounting, and she has to decide which computer software to purchase for her department. She has looked at all of the possible alternatives and is leaning toward the system with which she is most familiar. This is an example of _____.

bounded rationality

Professor Campbell needs to recommend a biology textbook for his senior class. Only two well-known publishers, Educate and WordTree, publish biology textbooks in the state, and both publishers are known for the clarity and extensiveness of their content. When Campbell chooses a textbook from one of the two publishers, he is making a decision in a state of _____.

certainty

At Delta Corp. the manufacturing and design department frequently consults with the research and development department and the marketing and sales department regularly interacts with the manufacturing and design department. This scenario illustrates _____ at Delta.

coordination

At Supertech Inc., a technology company, employees are given more authority and are allowed to make their own decisions. Supertech operates in a business environment that is not predictable. The middle managers, supervisors, and employees have a degree of autonomy and are encouraged to make decisions. Which of the following concepts is illustrated in the scenario?

decentralization

The process of choosing one alternative from among a set of alternatives is called _____.

decision making

The first stage of the organizational innovation process is _____ of creative ideas.

development

For his work in developing the administrative model to describe how managers make decisions in the real world, Herbert Simon won the Nobel Prize in _____.

economics

Tina works at a coffee shop. One of the four coffee machines at the coffee shop has not been functioning well; the same machine has broken down thrice in two weeks. Now, Tina is looking at the machine and trying to decide if the problem is a bad machine or if people are just using the machine wrong. Tina is currently _____.

eliminating feasible alternatives

​According to the classical decision model, managers:

evaluate all aspects of a decision situation logically and rationally.

In which step of the rational decision-making model does the decision maker test the feasibility and satisfactoriness of alternatives before choosing one?

evaluation alternatives

Unions negotiating for higher wages is an example of a(n) _____ force for change.

external

In the context of the job characteristics approach, _____ refers to the extent to which a worker knows how well the job is being performed.

feedback

Mortgage companies, and pawnshops operate in the _____ industry.

finance

Sequential interdependence:

generally involves one-way interdependence.

​_____ is a situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision.

groupthink

Henry discovered and added a new flavor of ice cream to his menu of homemade ice creams in the ice cream parlor he owns in Florida. The ice cream became an instant hit; he plans to sell the ice cream in Georgia by supplying it to the retailers there. Henry is involved in _____.

identifying a new market

Reciprocal interdependence:

is the most complex form of interdependence.

A disadvantage of using interacting groups to make decisions is that:

it fosters political forces

In _____, the jobs do not change, but instead workers move from job to job.

job rotation

In organizations using _____, the product is manufactured in assembly-line fashion by combining component parts into another part or finished product.

large-batch technology

_____ is one of the factors that makes an alternative infeasible.

legal barriers

_____ is an example of an external force that affects an organization.

new government regulations

One disadvantage of group decision making is that:

one person may dominate the group

Substantive modification to some part of an organization is known as _____.

org. change

A company has introduced new rules and regulations and appraisal criteria to promote discipline and commitment among employees. This organization change is in the area of _____.

people

_____ is change that is designed and implemented in an orderly and timely fashion in anticipation of future events.

planned change

Units with _____ operate with little interaction-the output of the units is put together at the organizational level.

pooled interdependence

The first step of the change process involves:

recognizing the need for change.

Job enrichment:

requires delegation of authority

The Red Wagon Utility Store sells home supplies to residents on Charlton Street. It operates in the _____ industry.

retail

A marketing manager decides to launch a new product because it is the first product that came to his mind, even if there are several better products to be explored. Which of the following is illustrated in the scenario?

satisficing

Begun in 1976, _____ are designed to consolidate information from various disciplines and institutions, including technical and professional schools.

small Business Development Centers

​A _____ is privately owned by one individual or a group of individuals and has sales and assets that are not adequate enough to meaningfully influence its environment.

small business

A finding of Woodward's study about forms of technology was that:

small-batch organizations tended to have minimal bureaucracy.

Jeanne owns a boutique in Paris and is best known for the formal suits that she stitches for working women. She makes customized suits for each of her customers, keeping their age, body type, and their appearance in mind. Which of the following technologies is Jeanne using in her boutique?

small-batch technology

_____ departmentalization groups together those jobs involving the same or similar activities.

Functional

_____ is the process of grouping jobs according to some logical arrangement.

Departmentalization

Which of the following can help make the business change process more effective?

Starting the process with a new, clean slate

_____ is a general factor that contributes to the success of small businesses.

​Escalation of commitment

​A(n) _____ is a market in which several large firms compete according to relatively well-defined criteria.

​established market

​Peter was looking for alternatives to double his plant's production capacity, and he considered acquiring the production plant of a rival company. The engineers in Peter's company advised him against it because acquiring the new plant would only increase their company's production by 15 percent. Therefore, Peter's idea failed the test for _____ in the context of the rational decision-making process.

​satisfactoriness

A(n) _____ is a top-level manager who approves of and supports a project. This person may fight for the budget needed to develop an idea, overcome arguments against a project, and use organizational politics to ensure the project's survival.

sponsor

Alpha Corp. has divided its business into a number of sub units. This organization change is an example of change in the area of _____.

structure and design

When a company changes its work processes, the change is in the area of _____.

technology and operations

Which of the following statements is true in the context of decision making under a state of risk?

the decision maker uses probability estimates to assess alternatives

The most significant disadvantage of a franchising agreement is that:

the franchisee may have to pay a high start-up cost.

According to Weber, in a bureaucracy:

there should not be any arbitrary dismissals.

When the top management at Venus Corp. sought to change the organization design, form more work teams, and decrease the managers' span of management, it met with great resistance from the managers. This was because the managers feared that their power within the company would decrease. The managers' reaction to change was brought about by _____.

threatened self-interest

Wendy is reluctant to accept a new job offer because she's worried about her ability to meet new job demands. The most likely reason for such employee resistance to change is _____.

uncertainty

Which of the following factors is responsible for the failure of a small business?

​Managerial inexperience