Chapter 1
What is defined as a set of activities directed at an organization’s resources to achieve organizational goals in an efficient and effective manner?
What is Managment
Which of the following is a part of an organization's external environment?
a. Board of directors
b. Physical work environment
c. Inflation
d. Organization’s culture
e. Employees
What is c Inflation?
An organization’s _____ is a statement of its fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business’s operations in product and market terms.
a. mission
b. code of ethics
c. article of incorporation
d. operational goal
e. tactical plan
What is a. mission
The process of choosing one alternative from among a set of alternatives is called _____.
a. rational ignorance
b. altruism
c. bounded rationality
d. decision making
e. groupthink
d. decision making
Which of the following statements is true about entrepreneurs?
a. They are typically angel investors.
b. They assume the risk of a start-up.
c. They hire professional managers.
d. They manage businesses of other individuals.
e. They are employees of a corporation.
d. They manage businesses of other individuals.
6. Which of the following is the role of top managers in an organization?
a. Overseeing day-to-day operations
b. Performing routine administrative tasks
c. Implementing plans of first-line managers
d. Creating organizational goals and overall strategy
e. Coordinating the work of first-line managers
What is D Creating organizational goals and overall strategy?
Which of the following statements about organizational culture is true?
a. Organizational culture shapes the behavior of employees, and thus it impacts organizational effectiveness.
b. Organizational culture of an overseas franchisee is always the same as the culture of the nation in which the organization’s headquarters are located.
c. Organizational culture will necessarily be the same throughout an organization's subunits.
d. Organizational culture refers to the cultural and artistic charities that an organization supports.
e. Organizational culture is frequently and easily changed by most organizations.
What is a Organizational culture shapes the behavior of employees, and thus it impacts organizational effectiveness.
Which of the following statements is true about strategic goals?
a. They are set by an organization's middle managers.
b. They are set by first-line managers.
c. They provide plans for the day-to-day operations of an organization.
d. They focus on broad and general issues.
e. Their focus is on short-term issues.
What is d. They focus on broad and general issues.
What is a commitment to finding and using the best theory and data available at the time to make a decision?
a. Rational decision making
b. Classical decision making
c. Rational management
d. Evidence-based management
e. Bounded rationality
D. Evidence-based management
. 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.
a. publicly held corporation
b. regulatory agency
c. nonprofit organization
d. strategic business unit
e. small business
e. small business
Which of the following statements about top managers is true?
a. They are the largest group of managers in most organizations.
b. They officially represent their organization to the external environment.
c. They primarily oversee the day-to-day operations of an organization.
d. They supervise and coordinate the activities of first-line managers.
e. They supervise and coordinate the activities of operating employees.
What is d. They supervise and coordinate the activities of first-line managers.
Which of the following statements about the European Union is true?
a. It dictates the internal organizational culture.
b. It is a union of observer countries that monitor the open markets to ensure that WTO rules are followed.
c. It is the strategic alliance between a European company and an American company.
d. It a form of labor union across Europe.
e. It is an economic community.
What is e. It is an economic community.
Which of the following statements is true about tactical goals?
a. Their focus is on how to operationalize actions necessary to achieve strategic goals.
b. Their focus is on broad and long-term issues.
c. They are set by and fortop managers.
d. They are set by and forthe board of directors.
e. They are broad and nonspecific.
What is a. Their focus is on how to operationalize actions necessary to achieve strategic goals.
. In which way is crowdsourcing a solution different than using the Delphi technique?
a. It has a much smaller base of contributors.
b. The process is much quicker.
c. Explanations are not relayed to others.
d. They do not meet face to face.
e. Not everyone is an expert.
e. Not everyone is an expert.
Why are small businesses important to big businesses?
a. Most of the products made by big manufacturers are sold to consumers by small businesses.
b. Innovations are least likely to come from small businesses.
c. Small businesses provide services instead of products.
d. Small companies outsource packaging, delivery, and distribution to large companies.
e. Big businesses provide small businesses with the services, supplies, and raw materials they need.
a. Most of the products made by big manufacturers are sold to consumers by small businesses.
In which area do first-line managers spend the majority of their time?
a. Implementing policies made by top managers
b. Creating overall organizational strategies and goals
c. Representing their organization to the external environment
d. Supervising the work of their subordinates
e. Making decisions about activities such as acquiring other companies and entering or abandoning various markets
What is d Supervising the work of their subordinates?
The _____ is a trade agreement intended to promote international trade by reducing trade barriers and making it easier for all nations to compete in international markets.
a. Sarbanes–Oxley Act
b. Export Restraint Agreement
c. North American Free Trade Agreement (NAFTA)
d. General Agreement on Tariffs and Trade (GATT)
e. United States-Mexico-Canada Agreement
What is d General Agreement on Tariffs and Trade (GATT)
A(n) _____ plan is a general plan outlining decisions about resource allocation, priorities, and action steps necessary to reach the goals set by the top managers.
a. recovery
b. contingency
c. operational
d. tactical
e. strategic
e. strategic
What can managers do to promote effective group decision making and avoid groupthink?
a. Disband the group when the decision has been reached.
b. Allow senior employees to dominate discussion.
c. Avoid setting deadlines for the group.
d. Add group members from a variety of departments.
e. Insist that a group evaluate all alternatives.
e. Insist that a group evaluate all alternatives.
Most small businesses employ______.
a. more than 700 people
b. Between500 and 700 people
c. between 100 and 499 people
d. between 20 and 99 people
e. fewer than 20 people
e. fewer than 20 people
What is the primary responsibility of a manager within an organization?
a. To maximize the profitability of the organization
b. To get consumers and clients to buy the organization's products and services
c. To ensure consistent quality of all output
d.To use organizational resources to help the organization achieve its goals
e. To attract investors
What is d To use organizational resources to help the organization achieve its goals?
In a single organization, members of the sales staff always wear business attire, while the product development staff dresses more casually. What does this illustrate?
a. Management does not have control over employee behavior.
b. Some employees refuse to follow rules
c. The culture is consistent throughout the organization.
d. The same culture is not found throughout the organization.
e. The organization does not have an established culture
What is d. The same culture is not found throughout the organization.
. Libra Travels LLC. has a few back-up buses at key locations where the business operates. This is to be prepared in case any of its day-tour buses break down. This is an example of a________.
a. project
b. program
c. regulation
d. single-use plan
e. contingency plan
What is a contingency plan?
As the most common form of decision-making groups, which of the following includes members who openly discuss, argue about, and agree on the best alternative?
a. Nominal group
b. Interacting groups
c. Coalition
d. Delphi group
e. Focus group
d. Delphi group
At what point should an entrepreneur ask the questions, "who are my customers, and where are they?"
a. When seeking an opening in the market for a start-up
b. When writing a business plan
c. When buying an existing business
d. When entering into a franchising agreement
e. When sales begin to decline
When seeking an opening in the market for a start-up