Principles of Business Management ch 1-5

Around ________, the Greeks recognized management as a separate art and advocated a scientific approach to work. Select one: A. 400-350 BC B. 2000 BC C. 4000 BC D. 1100 BC E. 500 BC

A. 400-350 BC

Planning involves which of the following? A. analyzing current situations B. monitoring performance C. implementing necessary changes D. attracting people to the organization E. motivating employees

A. Analyzing current situations

________ wrote the book Dynamic Administration, which emphasized the continually changing situations that managers face. Two key contributions of the author are the notion that managers desire flexibility and the differences between motivating groups and individuals. Select one: A. Mary Parker Follett B. Lillian Gilbreth C. Max Weber D. Henri Fayol E. Adam Smith

A. Mary Parker Follett

________ is an ethical system, which states that all people should uphold certain values that society needs to function. Select one: A. Universalism B. Utilitarianism C. Egoism D. Relativism E. Ethnocentrism

A. Universalism

________ is the ethical system wherein one seeks the greatest good for the greatest number of people. Select one: A. Utilitarianism B. Virtue C. Morality D. Relativism E. Egoism

A. Utilitarianism

To become an effective manager, one should choose ________ of the four management functions and commit one hundred percent. Select one: A. all B. none C. only one D. at least two E. between one and three

A. all

In the context of the planning process, ________ are the targets or ends a manager wants to reach. Select one: A. goals B. strategies C. scenarios D. contingencies E. plans

A. goals

The opportunities for mass production created by the ________ spawned intense and systematic thought about management problems and issues. Select one: A. industrial revolution B. management and business education schools C. economies of scale D. resurgence methodology E. sociotechnical systems theory

A. industrial revolution

In ________ planning, frontline managers usually focus on routine tasks such as production runs, delivery schedules, and human resource requirements. Select one: A. operational B. acquisition C. feasibility D. strategic E. tactical

A. operational

________ is coordinating the human, financial, physical, informational, and other resources. A. Organizing B. Controlling C. Grouping D. Assembling E. Planning

A. organizing

A ________ is powerful if a buyer has few other sources of supply or if the supplier has many other buyers. Select one: A. supplier B. customer C. manager D. competitor E. marketer

A. supplier

Which of the following best describes management? A. the process of working with people and resources to accomplish organizational goals B. the method of executing, responding, and delivering results in a fast and timely manner C. the introduction of new goods and services D. the technique of keeping costs low enough so the company can realize profits and price its products at levels that are attractive to consumers E. the method of creating goodwill through social relationships

A. the process of working with people and resources to accomplish organizational goals

The evolution of management thought is divided into ________ major sections. Select one: A. two B. three C. six D. five E. four

A. two

In 1776, ________ discussed control and the principle of specialization with regard to manufacturing workers. Select one: A. Max Weber B. Adam Smith C. Douglas McGregor D. Abraham Maslow E. Frederick Taylor

B. Adam Smith

Who discussed control and the principle of specialization with regard to manufacturing workers? Select one: A. Abraham Maslow B. Adam Smith C. Frederick Taylor D. Max Weber E. Henri Fayol

B. Adam Smith

________ are conditions that prevent new companies from setting foot in an industry. Select one: A. Zero-profit conditions B. Barriers to entry C. Demographics D. Prospectors E. Industry shakeouts

B. Barriers to entry

In the context of universalism, kyosei and human dignity are the two basic ideals underpinning the ________ Principles for Business. Select one: A. Sachs B. Caux C. Madoff D. Freeman E. Smith & Nephew

B. Caux

________ refer(s) to reductions in the average cost of a unit of production as the total volume produced increases. Select one: A. Systematic management B. Economies of scale C. Quantitative management D. Smoothing E. Buffering

B. Economies of scale

________ introduced the scientific management approach that advocated the application of scientific methods to analyze work and to determine how to complete production tasks efficiently. Select one: A. Henry L. Gantt B. Frederick Taylor C. Henri Fayol D. Max Weber E. Lillian M. Gilbreth

B. Frederick Taylor

Which of the following is true of Frederick Taylor's contributions to scientific management as an approach to management? Select one: A. Taylor believed that supervisors could be motivated to provide training to underperforming workers. B. Taylor advocated the use of the differential piecerate system. C. Taylor focused less on the technical and more on the human side of management. D. Taylor developed a system to lower costs and increase worker productivity by showing how employees could work smarter, not harder. E. Taylor created the Gantt chart, which helps managers plan projects by task and time to complete those tasks.

B. Taylor advocated the use of the differential piecerate system.

A(n) ________ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong. Select one: A. personal right B. ethical issue C. business norm D. ethical standard E. moral right

B. ethical issue

A customer who purchases products in their finished form is a(n) ________ consumer. Select one: A. complete B. final C. alpha D. immediate E. suave

B. final

An organization's mission statement describes all of the following except Select one: A. its basic good or service. B. its morals. C. its aspiration. D. what the organization does. E. the company's basic purpose.

B. its morals.

________ is a manager's ability to stimulate people to be high performers. A. Monitoring B. Leading C. Controlling D. Planning E. Organizing

B. leading

Competition is most intense when there are ________ direct competitors, industry growth is slow, and the product or service cannot be differentiated. Select one: A. few B. many C. no D. limited E. some

B. many

The level of planning involving the longest time horizon, usually ranging from three to seven years, is Select one: A. operational planning. B. strategic planning. C. tactical planning. D. departmental planning. E. missionary planning.

B. strategic planning.

Frontline managers often have titles such as A. team leader. B. supervisor or sales manager. C. tactical manager. D. strategic manager. E. senior executive.

B. supervisor or sales manager.

Top-level managers focus on A. translating goals and objectives into specific activities. B. the long-term survival of an organization. C. supervising nonmanagement employees. D. initiating new daily activities. E. managing frontline managers.

B. the long-term survival of an organization.

The formal planning model emphasizes a ________ approach. Select one: A. left-right B. top-down C. horizontal D. bottom-up E. vertical

B. top-down

________ is the immediate environment surrounding a firm, including suppliers, customers, rivals, and the like. Select one: A. Open system B. Macroenvironment C. Competitive environment D. Microenvironment E. Exosystem

C. Competitive environment

________ means that managers do not have enough information about the surroundings needed to understand or predict the future. Select one: A. Minimization B. Observational inadequacy C. Environmental uncertainty D. Disinformation E. Competitive intelligence

C. Environmental uncertainty

According to Professor Edward Freeman, which of the following is true of ethics and corporate responsibility? Select one: A. It is not the responsibility of managers to behave ethically when dealing with their stakeholders. B. Managers can benefit their organizations only by growing profits. C. Managers can benefit their organizations by growing profits as well as behaving ethically toward stakeholders. D. Managers must emphasize ethical behavior toward stakeholders at the cost of growing profits. E. In business, it is a myth that profits and ethical behavior go hand in hand.

C. Managers can benefit their organizations by growing profits as well as behaving ethically toward stakeholders.

Which of the following are considered unconscious biases? Select one: A. Managers take less credit than they deserve. B. Managers act only in an ethical manner. C. Managers think they are immune to conflicts of interest. D. Managers hire people who are unlike them, since opposites attract. E. Managers take blame themselves instead of blaming others.

C. Managers think they are immune to conflicts of interest.

________ planning is the process of identifying the specific procedures and processes required at lower levels of an organization. Select one: A. Acquisition B. Tactical C. Operational D. Contingency E. Strategic

C. Operational

________ is leveling normal fluctuations at the boundaries of an environment. Select one: A. Skirting B. Sifting C. Smoothing D. Flexing E. Buffering

C. Smoothing

Which of the following helped organizations achieve goals through systematic management? Select one: A. focus on decentralization in decision making B. encouragement of participation and provision of opportunities for individual challenge C. careful definition of duties and responsibilities D. emphasis on the application of quantitative analysis to managerial decisions and problems E. preservation of employees' interpersonal relationships and other human aspects of the work

C. careful definition of duties and responsibilities

Business ________ are the moral principles and standards that guide behavior in the world of business. Select one: A. norms B. strategies C. ethics D. goals E. politics

C. ethics

Controlling helps A. stimulate people to be high performers. B. determine department goals. C. monitor performance and implement necessary changes. D. establish reporting relationships. E. create an organization chart by identifying business functions.

C. monitor performance and implement necessary changes.

A ________ plan is one that focuses on ongoing activities designed to achieve an enduring set of goals. Select one: A. single-use B. start-up C. standing D. subject E. contingency

C. standing

Which type of manager is responsible for translating the general goals and plans developed for an organization into more specific activities? A. activities managers B. operational managers C. tactical managers D. functional managers E. strategic managers

C. tactical managers

________ is a technique that helps managers summarize relevant and important facts from the internal and external analyses of an organization in order to formulate strategy. Select one: A. A functional strategy B. Benchmarking C. The BCG matrix D. A SWOT analysis E. Diversification

D. A SWOT analysis

________ refers to the moral principles and standards that guide the behavior of an individual or group. Select one: A. Prioritization B. Theology C. Corporate legitimacy D. Ethics E. The legal system

D. Ethics

Which of the following is true of Abraham Maslow's contribution to the field of human relations? Select one: A. He emphasized the maintenance of inventories to meet consumer demand. B. He was concerned with meeting the explosive growth in demand brought about by the industrial revolution. C. He advocated the application of scientific methods to analyze work. D. He suggested that humans have five levels of needs. E. He concluded that management decisions were unsystematic.

D. He suggested that humans have five levels of needs.

________ refers to the principles, rules, and values people use in deciding what is right or wrong. Select one: A. Business responsibility B. Ecocentric management C. Corporate legislation D. Moral philosophy E. Sustainability index

D. Moral philosophy

________ are key management functions. A. Hiring, training, appraising, and firing B. Marketing, finance, accounting, and production C. Planning, operations, labor, and contracting D. Planning, organizing, leading, and controlling E. Marketing, management, finance, and accounting

D. Planning, organizing, leading, and controlling

________ are senior executives responsible for the overall management and effectiveness of an organization. A. Long-term managers B. Tactical managers C. Short-run managers D. Strategic managers E. Middle managers

D. Strategic managers

The goal of ________ is to thoroughly understand the "best practices" of other firms and to undertake actions to achieve better performance and lower costs. Select one: A. competition B. satisficing C. organizing D. benchmarking E. SWOT analysis

D. benchmarking

When Carousel Corp. advertises its soap products as better than the soap products of Rhye Corp., Carousel is demonstrating Select one: A. cooptation. B. benchmarking. C. smoothing. D. competitive aggression. E. competitive pacification.

D. competitive aggression.

________ involves monitoring performance and making necessary changes. A. Budgeting B. Leading C. Planning D. Controlling E. Organizing

D. controlling

What method is used to predict exactly how some variable or variables will change in the future? Select one: A. searching B. competitive intelligence C. sorting information D. forecasting E. environmental scanning

D. forecasting

Which is the most basic human need, as suggested by Abraham Maslow? Select one: A. love and belonging B. self-actualization C. esteem D. physical E. safety

D. physical

______ is specifically the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals. A. Staffing B. Controlling C. Organizing D. Planning E. Leading

D. planning

Which ethical system acknowledges the existence of different ethical viewpoints? Select one: A. totalitarianism B. egoism C. universalism D. relativism E. utilitarianism

D. relativism

According to Abraham Maslow, the most advanced human need is for Select one: A. love or belonging. B. safety. C. esteem. D. self-actualization. E. homeostasis

D. self-actualization.

The ________ step in the formal planning process, monitoring and controlling performance, identifies the priorities and trade-offs among the goals and plans. Select one: A. fourth B. second C. third D. sixth E. fifth

D. sixth

Leading involves A. creating an organization chart by identifying business functions. B. dealing directly with customers and clients. C. establishing reporting relationships. D. stimulating people to be high performers. E. having a personnel department that administers plans, programs, and paperwork.

D. stimulating people to be high performers.

All relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy, are referred to as Select one: A. relative constraints. B. conditions of certainty. C. open systems. D. the external environment. E. the barriers to entry domain selection.

D. the external environment.

In the context of the levels of planning, strategic goals are Select one: A. the procedures and processes to get day-to-day work done. B. driven by operational plans. C. focused on the major actions a unit must take. D. the major targets that relate to the long-term survival of an organization. E. specific to a functional area in an organization.

D. the major targets that relate to the long-term survival of an organization.

________ argued that people try to satisfy their lower-level needs and then progress upward to the higher-level needs. Select one: A. Frederick Taylor B. William Procter C. Fritz Roethlisberger D. Elton Mayo E. Abraham Maslow

E. Abraham Maslow

In the context of the planning process, which of the following statements is true of the step that involves monitoring and controlling performance? Select one: A. It is the first step taken by managers in the planning process. B. Managers consider monitoring and controlling performance as the most important step in the planning process. C. It identifies the priorities and trade-offs among the goals and plans. D. Managers need to restart the planning process after plans are implemented improperly. E. Managers must continually monitor the performance of their work units against the unit's goals and plans.

E. Managers must continually monitor the performance of their work units against the unit's goals and plans.

________, an ethical system, defines ethical behavior based on the opinions and behaviors of associated people. Select one: A. Egoism B. Universalism C. Utilitarianism D. Totalitarianism E. Relativism

E. Relativism

According to the ethical system of utilitarianism, which of the following is true? Select one: A. Society will be enhanced if we all take care of ourselves and do not harm others. B. Societal rules or customs should be used to mold values. C. Individuals might choose between conflicting values by tallying the final results of the various acts. D. Some values must always be upheld, regardless of the consequences. E. Seeking the greatest good for the greatest number of people should be the overriding concern of decision makers.

E. Seeking the greatest good for the greatest number of people should be the overriding concern of decision makers.

________ planning involves a process of translating broad strategic goals and plans into specific goals and plans relevant to a particular portion of an organization. Select one: A. Strategic B. Feasibility C. Contingency D. Operational E. Tactical

E. Tactical

If an organization ensures that a chain of command or hierarchy is well established, which characteristic of an effective bureaucracy does it exhibit? Select one: A. division of labor B. qualifications C. ownership D. rules and controls E. authority

E. authority

Hospitals and universities are very expensive to run because of the capital and equipment required. The requirement of personnel such as specialized medical doctors and researchers are also high. Which of the following is this an example of? Select one: A. downsizing B. protectionism C. buffering D. smoothing E. barriers to entry

E. barriers to entry

According to ________, an ethical system, individual self-interest is the actual motive of all conscious action. Select one: A. universalism B. utilitarianism C. humanitarianism D. relativism E. egoism

E. egoism

The notion of ________, an ethical system, is similar to Adam Smith's concept of the invisible hand in business. Select one: A. humanitarianism B. utilitarianism C. relativism D. universalism E. egoism

E. egoism

In the context of the levels of planning, the formal planning model is ________, with top-level strategies flowing down through the levels of the organization into more specific goals and plans. Select one: A. tactical B. concentrated C. uncertain D. horizontal E. hierarchical

E. hierarchical

_____ is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. A. Planning B. Quantifying C. Controlling D. Leading E. Organizing

E. organizing

A centralized, bureaucratic approach with standardized work processes for managing uncertainty is ideal for which of the following environments? Select one: A. complex and dynamic B. stable and complex C. stable and dynamic D. dynamic and simple E. simple and stable

E. simple and stable

The main difference between final consumers and intermediate consumers is that the final consumers Select one: A. purchase more than intermediate consumers. B. pay cash. C. are not as flexible as intermediate consumers. D. do not have any bargaining power. E. use products themselves.

E. use products themselves.

An advantage of using a group for decision making is that disagreements are unlikely to happen, and this phenomenon is called groupthink. Select one: True False

False

An organization's operational plans serve as the foundation for its strategic plans and tactical plans. Select one: True False

False

Business should look at environmental issues as a no-win situation. Select one: True False

False

If there are many barriers to entry, the threat of new entrants is greater. Select one: True False

False

In the context of the origins of management, Wu Qi, a Chinese general, discussed the importance of planning and leading in his book The Art of War. Select one: True False

False

Individuals usually make higher-quality decisions when compared to groups, provided there is enough time. Select one: True False

False

Lower-level managers who possess technical skills tend to earn less credibility from their subordinates than comparable managers without technical know-how. True False

False

Management could not emerge as a formal discipline even after the industrial revolution ended. Select one: True False

False

Managers always operate under conditions of certainty. Select one: True False

False

Open systems are all relevant forces outside a firm's boundaries. Select one: True False

False

Satisficing is less likely with groups. Select one: True False

False

Standing plans are designed to achieve a set of short-term goals. Select one: True False

False

The best managers prioritize efficiency over effectiveness. True False

False

The most important innovation is always the product itself and not the way it is delivered. True False

False

Unethical behavior happens only in a business environment. Select one: True False

False

A strategic control system must encourage efficient operations while allowing flexibility to adapt to changing conditions. Select one: True False

True

An ethical leader is one who is both a moral person and a moral manager influencing others to behave ethically. Select one: True False

True

As managers rise through an organization, they will probably rely less on their technical skills. True False

True

Benchmarking is the process comparing an organization's practices and technologies with those of other companies. Select one: True False

True

Change continually creates both new opportunities and new demands for lowering costs and for achieving greater innovation, quality, and speed. Select one: True False

True

Coalition involves groups that act jointly with respect to a set of political initiatives for some period. Select one: True False

True

Employees, organizations, and communities thrive over the long term when managers apply ethical standards that direct them to act with integrity. Select one: True False

True

If one does not anticipate change and adapt to it, one's firm will not thrive in a competitive business world. Select one: True False

True

It is a common perception that business leaders use illegal means to gain competitive advantage or improve their personal positions. Select one: True False

True

Lillian Gilbreth focused on the human side of management and was interested in how job satisfaction motivated employees. Select one: True False

True

One of the fourteen principles of management identified by Henri Fayol was the subordination of individual interest to the general interest. Select one: True False

True

Social capital is the goodwill stemming from your social relationships. True False

True

Some companies, called prospectors, are more likely than others to engage in strategic maneuvering. Select one: True False

True

The economic responsibilities of business include satisfying its obligations to investors. Select one: True False

True

When an industry matures, profits drop. Select one: True False

True