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164 terms

Management Exam 1

STUDY
PLAY
1) In his capacity as the regional production manager, Mark Brown is required to address the regional heads from across the country in a quarterly meeting organized by his company. At this meeting, Mark presents the detailed production figures of his region and also outlines the changes he plans to implement in order to improve productivity. Mark is playing the role of a ________. 1) _______
A) disturbance handler B) spokesperson
C) monitor D) negotiator
B) spokesperson
2) Douglas McGregor is best known for promoting ________ leadership practices in which positive leadership can bring forth greater efforts and levels of achievement from employees. 2) _______
A) ERG theory B) Theory Z C) Theory Y D) Theory X
C. Theory Y
3) Technology and the attitudes of subordinates are considered to be the ________ of managerial jobs. 3) _______
A) demands B) choices C) requirements D) constraints
D. constraints
4) Which of the following is an informational role? 4) _______
A) entrepreneurial B) disseminator C) negotiator D) leader
B. disseminator
5) The term manager refers to anyone who ________. 5) _______
A) plans, controls, and evaluates B) owns shares in the company
C) is not a member of a labor union D) is a member of an organization
A. plans, controls, and evaluates
6) Daniel is the manager of a luxury resort in the Bahamas. It is his responsibility to ensure that his subordinates do all that it takes to meet customer requirements and make their stays memorable. As a result, when one of their major customers voiced his dissatisfaction with the receptionist at the front desk, Daniel decided to change the receptionist's shift while the guest was staying at the resort. His authority to make this change reflects the ________ aspect of a manager's job. 6) _______
A) constraint B) demand C) choice D) compliance
C. choice
7) When managers are called upon to make accommodations with other units or other organizations, they are functioning in the ________ role. 7) _______
A) spokesperson B) figurehead C) liaison D) negotiator
D. negotiator
8) Derek, a manager at an insurance firm, instructs all subordinates to fill in a daily log of their day's work. However, he finds that even after a week of instituting this new rule, most employees are either reluctant to fill it or are taking the instruction far too lightly. This reluctance on the part of the employees is an example of the ________ dimension of Derek's job as a manager. 8) _______
A) requirement B) constraint C) demand D) technique
B. constraint
9) Which one of the following statements is true about the effects of the Internet on how managers do their jobs? 9) _______
A) It offers new ways of accomplishing tasks.
B) It has decreased the importance of entrepreneurs.
C) The Internet has reduced the amount of competition in all markets.
D) The importance of knowledge has declined.
A. it involves new ways of accomplishing tasks
10) According to Mintzberg's theory of managerial functions, ________ roles include acting as an entrepreneur, a disturbance handler, a resource allocator, and a negotiator. 10) ______
A) interpersonal B) leader C) decisional D) informational
C. decisional
11) ________ translates long-term plans into actions designed to achieve specific and shorter-term goals and objectives. 11) ______
A) Strategic planning B) Tactical planning
C) Transactional planning D) Operational planning
B. Tactical planning
12) Which of the following roles is an interpersonal role? 12) ______
A) negotiator B) disturbance handler
C) leader D) spokesperson
C. Leader
13) ________ is the process of assembling and using sets of resources in a goal-directed manner to accomplish tasks in an organization. 13) ______
A) Management B) Budgeting C) Accounting D) Planning
A. Management
14) Which of the following statements is true regarding change in an organization? 14) ______
A) If employees are resistent to change, the only option left with a manager is to enforce it forcibly.
B) Managers must face the need for change and the opportunity to create change.
C) Managing change is a lengthy but straightforward task.
D) New managers are usually not expected to create change.
B. managers must face the need for change and the opportunity to create change
15) As the manager of a waste recycling company, Ruth has been asked to attend a seminar on green living. At the seminar, she spends considerable time interacting with her colleagues from the industry and discussing the various events and innovations that are taking place. Ruth feels it is extremely important for her to remain updated with the developments in the industry. She is playing the ________ role. 15) ______
A) monitor B) negotiator C) entrepreneurial D) liaison
A. monitor
16) Ensuring that a restaurant maintains an attractive appearance would reflect the ________ job dimension for its manager. 16) ______
A) constraint B) technique C) demand D) choice
C. demand
17) Of the four major functions of a manager, ________ involves systematically integrating resources to accomplish tasks. 17) ______
A) organizing B) directing C) auditing D) planning
A. organizing
18) Which of the following is a typical managerial choice? 18) ______
A) legal regulations B) attitudes of subordinates
C) scheduled deadlines D) allocation of resources
D. allocation of resources
19) The ________ role involves extensive information seeking in which managers engage to remain aware of crucial developments that may affect their units and their own work. 19) ______
A) entrepreneurial B) monitor
C) disturbance handler D) spokesperson
B. monitor
20) Acting as a figurehead involves ________. 20) ______
A) contacts with persons outside the formal chain of command
B) attending or participating in ceremonial activities
C) influencing or directing others
D) extensive information seeking
B. attending or participating in ceremonial activities
21) ________ involves estimating future conditions and circumstances and making decisions based on these estimations. 21) ______
A) Organizing B) Directing C) Planning D) Controlling
C. planning
22) As the CEO of a software company, Keith is required to participate in several meetings each week. Some of his other responsibilities include helping to formulate the company's strategic plans and giving the final word on which projects the company will undertake. This reflects the ________ aspect of Keith's role as a manager. 22) ______
A) demand B) technique C) constraint D) compliance
A. demand
23) ________ involve having specialized knowledge about procedures, processes, and equipment. 23) ______
A) Interpersonal skills B) Verbal skills
C) Conceptual skills D) Technical skills
D. Technical Skills
24) Rick was hired as the director of a company manufacturing refrigerators at a time when the company was financially unstable. After analyzing the market carefully, Rick decided to change their marketing strategy. Rick's sound judgment did the trick, and the company turned around and became profitable within two years. What managerial skill did Rick show? 24) ______
A) interpersonal skills B) conceptual skills
C) technical skills D) communication skills
B. conceptual skills
25) Managers who have an entrepreneurial mind-set ________. 25) ______
A) are found only at the top-level of the organizational hierarchy
B) usually avoid risky ventures
C) resist uncertainty and maintain the status quo
D) are alert to new ideas and use them to create value for customers
D. are alert to new ideas and use them to create value for customers
26) The ________ role of a manager involves influencing or directing others. 26) ______
A) figurehead B) leader C) monitor D) liaison
B. leader
27) Of the four major functions of a manager, the purpose of ________ at the most basic level is the attempt to bring order to the organization. 27) ______
A) auditing B) organizing C) directing D) feedback
B. organizing
28) Which of the following is true about the principal managerial functions applicable to modern organizations? 28) ______
A) Controlling employee behavior is easier for a manager from the middle level management.
B) Organizing involves strategic and tactical planning.
C) Directing involves leading and motivating those for whom the manager is responsible.
D) Planning involves identifying the appropriate structure of relationships among positions and the people occupying them.
C. directing involves leading and motivating those for whom the manager is responsible
29) The managerial function of ________ is regulating the work of those for whom a manager is responsible. 29) ______
A) directing B) controlling C) auditing D) planning
B. controlling
30) According to Rosemary Stewart's dimensions of managerial jobs, within which of the following job dimensions is a manager working when he/she adheres to deadlines and follows established procedures? 30) ______
A) demands B) constraints C) techniques D) choices
A. demands
31) Cigarette ads and smoking have not been completely outlawed in part because the ________ is not 100 percent. 31) ______
A) anchoring effect B) probability of effect
C) temporal immediacy D) externality
B. probability of effect
32) ________ is the view that your perspective is correct and the views of people in other cultures are inferior. 32) ______
A) Universality B) Ethnocentricity C) Regiocentricity D) Polycentricity
B. ethnocentricity
33) Pixel Inc has established a system to settle employee grievances. According to this system, aggrieved employees must first approach their immediate supervisors with their problems. If the employee considers the supervisor's decision unsatisfactory, he or she may approach the next person in the chain of command. If the grievance still remains unresolved, the matter may be referred to voluntary arbitration. This system is indicative of ________. 33) ______
A) compensatory justice B) interactional justice
C) procedural justice D) distributive justice
C. procedural justice
34) According to the principle of ________, the financial obligation corporations have to others is limited to the company and does not extend to its shareholders. 34) ______
A) distributive justice B) compensatory justice
C) limited liability D) limited interest
C. limited liability
35) According to the universal approach to ethical decision making, managers must first determine whether a course of action can apply to all people in all situations, then ask themselves whether ________. 35) ______
A) the act has moral significance in the community
B) the rewards of the act can be equitably distributed
C) the costs and benefits of the act can be equitably distributed
D) they would want the same rule applied to themselves
D. they would want the same rule applied to themselves
36) A(n) ________ is an individual or group that has an interest in and is affected by the actions of an organization. 36) ______
A) accommodator B) cohort
C) social consensus D) stakeholder
D. stakeholder
37) The social responsibility perspective argues that ________. 37) ______
A) firms are accountable only to shareholders
B) costs and benefits should be equitably distributed
C) society grants existence to firms
D) the basis of all rights stem from freedom and autonomy
C. society grants existence to firms
38) The Foreign Corrupt Practices Act prohibit payments to ________. 38) ______
A) foreign shareholders B) competitors
C) firm partners D) foreign officials
D. foreign officials
39) Even if a manager does not intend to discriminate against a particular minority group, legal action can be brought against the firm if the minority group can prove ________. 39) ______
A) probability of effect B) temporal immediacy
C) disparate impact D) compensatory justice
C. disparate impact
40) An executive who justifies paying a bribe because it allows his company to provide the greatest good for the greatest number of people adheres to the ________ approach to ethical decision making. 40) ______
A) justice B) utilitarian C) moral rights D) universal
B. utilitarian
41) A(n) ________ is a decision that is contrary to an individual's stated beliefs and policies of the company. 41) ______
A) ethnocentric viewpoint B) ethical lapse
C) cognitive bias D) fallacy
B. ethical lapse
42) Which aspect of the justice approach to ethical decision making forms the basis of affirmative action plans? 42) ______
A) restorative justice B) compensatory justice
C) procedural justice D) distributive justice
B. compensatory justice
43) According to the Foreign Corrupt Practices Act, which of the following can be paid to low-level government employees to perform their duties more quickly? 43) ______
A) bribes B) facilitating payments
C) dividends D) push money
B. facilitating payments
44) Which aspect of the justice approach to ethical decision making is concerned with the impartial administration of decision-making processes? 44) ______
A) distributive justice B) restorative justice
C) procedural justice D) procuratory justice
C. procedural justice
45) Actions that benefit shareholders but harm the other stakeholders would be viewed as ________ from the efficiency perspective but ________ from the social responsibility perspective. 45) ______
A) socially irresponsible; managerially responsible
B) managerially irresponsible; socially responsible
C) managerially responsible; socially irresponsible
D) socially responsible; managerially irresponsible
C. managerially responsible; socially irresponsible
46) Refer to the scenario above. Which of the following is similar to the given scenario? 46) ______
A) A forest officer allows a tribal community living in the forest to cut trees for personal use.
B) As an owner of a retail store, Jeremy decides to cut off his supplier in order to switch to a different supplier with lower prices.
C) Naomi, a designer in Georgia, refuses to pay for a damaged shipment of material that arrived via courier from India.
D) Albert, who runs a sports goods store, declines a consignment of shoes from a manufacturer after learning that working conditions at the factory were extremely poor.
A. a forest officer allows a tribal community living in the forest to cut trees for personal use
47) Which of the following is an example of an accommodator firm? 47) ______
A) Ramen's retail store decides to stop using plastic bags after customers threatened to boycott its products.
B) The Hardley Accounting Firm changes its accounting practices after the introduction of the Sarbanes-Oxley Act in 2002.
C) A biotech company fights government efforts that will restrict its ability to import raw materials.
D) A petrochemical company takes preventive measures to protect employees from harmful chemicals within the workplace even before anyone suffers negative side effects.
B. the Hardley Accounting Firm changes its accounting practices after the introduction of the Sarbanes-Oxley Act in 2002
48) A major concern with the efficiency perspective is that corporations can impose indirect consequences that may not be completely understood or anticipated. In economic terms, such an unintended consequence is called a(n) ________. 48) ______
A) random error B) externality C) oligopoly D) ethical lapse
B. externality
49) Which of the following is an example of a reactor firm? 49) ______
A) The Hardley Accounting Firm changes its accounting practices after the introduction of the Sarbanes-Oxley Act in 2002.
B) A petrochemical company takes preventive measures to protect employees from harmful chemicals within the workplace even before anyone suffers negative side effects.
C) Ramen's retail store decides to stop using plastic bags after customers threatened to boycott its products.
D) A biotech company fights government efforts that will restrict its ability to import raw materials.
C. Ramen's retail store decides to stop using plastic bags after customers threatened to boycott its products
50) Which of the following statements is true regarding whistleblowing? 50) ______
A) Laws in the United States neither protect nor reward whistleblowing.
B) Whistleblowers rarely use external channels to blow the whistle.
C) Whistleblowers tend not to be disgruntled employees.
D) Whistleblowers report illegal acts for personal fame.
C. Whistleblowers tend not to be disgruntled employees
51) A factory continues to dump its chemical waste into the local river in spite of government orders banning the dumping of industrial effluents in local water bodies. The company knows that the effects of the chemicals on the water will not be detected until several years later. This is an example of ________. 51) ______
A) concentration of effect B) proximity
C) temporal immediacy D) social consensus
C. Temporal immediacy
52) Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways. ________ firms make changes when they feel that pressure from constituencies is sufficient such that nonresponsiveness could have a negative economic impact on the firm. 52) ______
A) Defender B) Reactor C) Accommodator D) Anticipator
B. reactor
53) ________ involves the extent to which members of a society agree that an act is either good or bad. 53) ______
A) Social consensus B) Concentration of effect
C) Probability of effect D) Social order
A. social consensus
54) Corporations react to the various pressures and constituencies connected to the topic of social responsibility in different ways. Companies that are ________ tend to fight efforts that they see as resulting in greater restriction and regulation of their ability to maximize profits. 54) ______
A) anticipators B) accommodators C) reactors D) defenders
D. defenders
55) Chucks' Eggs is a company that distributes eggs in Latin America and is planning to enter the North American market. As the risks are greater when entering new markets, Chucks' decides to join hands with another firm that has mutually desirable goals. This way, they can share the costs and have access to each other's resources. Which of the following ways is Chucks' implementing to enter a new market? 55) ______
A) licensing B) exporting
C) purchasing a local firm D) creating a strategic alliance
D. creating a strategic allience
56) ________ is the degree to which a situation influences behavior or perception of the appropriateness of behavior. 56) ______
A) Cultural context B) Cultural dimensionality
C) Cultural elasticity D) Cultural milieu
A. cultural context
57) ________ is the extent to which a person's identity is a function of the group(s) to which he or she belongs and the extent to which group members are expected to look after each other. 57) ______
A) Individualism B) Collectivism
C) Uncertainty avoidance D) Power distance
B. collectivism
58) According to Thomas Friedman, the third stage of globalization involves ________. 58) ______
A) countries moving into international markets
B) increasing influence of national governments on local economies
C) internationalization of countries
D) individuals collaborating or competing on a global basis
D. individuals collaborating or competing on a global basis
59) Countries emphasizing masculine traits value ________. 59) ______
A) activities that encourage forgiveness B) activities that enhance quality of life
C) activities that show caring for others D) activities that lead to success
D. activities that lead to success
60) Cluster 1 countries largely consist of developing and transition economies that ________. 60) ______
A) are low on monetary policies
B) are high in regulatory control and low in political rights
C) have balanced regulatory controls and political rights
D) have strong physical infrastructures
B. are high in regulatory control and low in political rights
61) When Maria arrived from Mexico to study in the U.S., she noticed a difference between the students in Mexico and the students in the U.S. The American students felt comfortable asking questions, they were eager to share a thought or an opinion, and in some instances they even contradicted the teacher. Maria comes from a country that has ________. 61) ______
A) high power distance B) individualism
C) gender focus D) uncertainty avoidance
A. high power distance
62) Swedish companies usually have a flat and team-oriented structure with few management levels. The result is a simple and direct decision-making process. In Swedish companies, the concept of personal responsibility is paramount. This is because Swedish companies have ________. 62) ______
A) high uncertainty avoidance B) low power distance
C) gender focus D) collectivism
B. low power distance
63) A country's ________ consists of its rules, policies, and enforcement processes. 63) ______
A) institutional environment B) economic dimension
C) socioeconomic landscape D) cultural milieu
A. institutional enviornment
64) ________ rely on electronically mediated communication. 64) ______
A) Swift trust teams B) Virtual teams
C) Ad hoc teams D) Cross-functional teams
B. virtual teams
65) Business meetings in Japan follow elaborate procedure, often take a long time as seemingly little details are scrutinized, and end with all parties signing detailed protocols to leave no room for misunderstandings. This is because Japan ranks high when it comes to ________. 65) ______
A) individualism B) uncertainty avoidance
C) gender focus D) personal freedom
B. uncertainty avoidance
66) Managing multicultural teams, competing in international markets, and managing international operations all require managers to develop a ________. 66) ______
A) cross-functional vocabulary B) global mind-set
C) certain savoir-faire D) no-holds-barred management style
B. global mind-set
67) Which of the following is likely to be an advantage for the licensor in a licensing arrangement? 67) ______
A) low royalty percentages
B) major returns on investment irrespective of sales
C) strict control over the use of its product and brand name
D) low cost and little risk
D. low cost and little risk
68) Brian, a senior manager in a logistics firm, has a democratic style of leadership. Brian is very approachable, and employees in his department are free to consult with him at any time. The culture in Brian's department is one of ________. 68) ______
A) low power distance B) economic development
C) uncertainty avoidance D) gender focus
A. low power distance
69) Ruth belongs to a community where members have a strong feeling of involvement in each other's lives, as well as a strong feeling of loyalty and responsibility to their community. This community is an example of? 69) ______
A) gender focus B) collectivism C) power distance D) avoidance
B. collectivism
70) Which of the following is a characteristic of collectivism? 70) ______
A) group membership B) high emotional independence
C) emphasis on individual achievement D) value for individual decisions
A. group membership
71) When a company ________ a foreign country, it makes a direct investment to establish a business that it solely owns and controls there. 71) ______
A) exports goods to
B) creates a new, wholly-owned subsidiary in
C) enters into a licensing arrangement with
D) purchases a local firm to enter
B. creates a new, wholly-owned subsidiary in
72) In an organization using transnational focus, ________. 72) ______
A) strategic decisions are decentralized
B) managers can tailor their strategies to local market conditions and demands
C) innovative products are developed in the home country market
D) subsidiaries react quickly to changes in the marketplace
A. strategic decisions are decentralized
73) Which of the following is true about exporting goods? 73) ______
A) Exporting is not a popular entry strategy because of its high risks and capital requirements.
B) An export strategy most likely provides big returns because of shared costs with local firms.
C) An exporting firm must establish a means of marketing and distributing its goods within the country.
D) Exporting requires establishing operations in the country and a large capital investment.
C. an exporting firm must establish a means of marketing and distributing its goods within the country
Ibiz is an ad agency that specializes in creating advertisements targeted at kids. After a dip in profits, managers are planning to implement the SWOT analysis approach to understand where they are going wrong.

74) Which of the following, if true, would suggest that the company should concentrate on its opportunities? 74) ______
A) The company has no competitors due to high entry barriers.
B) Despite innovative technology and the Internet, employees continue to use traditional animation techniques to create ads.
C) Employees have become complacent after a few successful campaigns, are highly demotivated, and lack creativity.
D) The managers make sure they get the best talent in the market, even if they have to pay a high price for it.
A. the company has no competitors due to high entry barriers
75) The ________ strategy determines how a firm will compete in each of these markets. 75) ______
A) corporate-level B) unit-level C) functional D) business-level
D. business-level
76) Aliva, a bottled water company, places a premium on the marketing and sales of its products by offering purified water from the natural streams of the Himalayas. This way, compared to other companies, it provides superior value. This is an example of ________. 76) ______
A) absolute advantage B) comparative advantage
C) first-mover advantage D) open source advantage
B. comparative advantage
77) Crystal is a vintage champagne, meaning that the champagne is made in the best years for wine production and all grapes used to make the wine are harvested in the same year. No other champagne can match this quality. Crystal has a ________. 77) ______
A) strategic vision B) consistent advantage
C) production advantage D) competitive advantage
D. competitive advantage
78) ________ translate(s) the strategic intent and mission of the firm into concrete and measurable goals. 78) ______
A) Strategic alliance B) Strategic planning
C) Strategic objectives D) Core competencies
C. strategic objectives
79) Which of the following, if true, provides the best explanation of why consumers are willing to pay a premium price for Starbucks coffee? 79) ______
A) Starbucks has invested in the latest technology to increase production.
B) Starbucks has achieved economies of scale.
C) Starbucks differentiates itself through its product, service, and brand reputation.
D) Starbucks has lower costs than its competitors.
C. Starbucks differentiates itself through its product, service, and brand reputation
80) A firm's ________ consists of its planning, finance, accounting, legal, government relations, and other activities supplied by its various primary activities. 80) ______
A) procurement B) infrastructure
C) marketing strategies D) human resource management
B. infrastructure
81) A newly established company, The Malt Company, wishes to enter the beer market in Country A by building a new brewery there. Many companies already have breweries in Country A. These companies spend heavily on advertising, which Malt is finding difficult to afford. This is an example of ________. 81) ______
A) substitution B) barriers to entry
C) low costs of switching D) high costs of switching
B. barriers to entry
82) Which of the following is the first step in managing the value chain? 82) ______
A) analyze how suppliers, distributors, and other business partners fit into a value net
B) develop valuable capabilities and use them to provide products that are superior in value
C) use formulated strategies to earn above-average returns
D) determine where in the value chain there is potential to add the greatest value
D. determine where in the value chain there is potential to add the greatest value
83) What part of a SWOT analysis focuses on the internal environment? 83) ______
A) opportunities and threats B) weaknesses and threats
C) strengths and weaknesses D) strengths and opportunities
C. strengths and weaknesses
84) Redeem is a local microbrewery that is working on its methods of advertising, promoting, and selling its product. This is an example of ________. 84) ______
A) service activities in the value chain B) procurement activities in the value chain
C) primary activities in the value chain D) support activities in the value chain
C. primary activities in the value chain
85) ________ activities are designed to inform potential customers about the products and services the firm has available and entice them to purchase them. 85) ______
A) Marketing and sales B) Procurement
C) Operation D) Service
A. marketing and sales
86) In the process of strategic management, the ________ strategy determines what business or businesses the firm wishes to operate. 86) ______
A) functional B) unit-level C) corporate-level D) business-level
C. corporate level
87) Which of following is a requirement for a product to have competitive advantage over others? 87) ______
A) responsiveness B) durability C) rarity D) assurance
C. rarity
88) SWOT analysis stands for ________. 88) ______
A) strengths, weaknesses, organizations, and threats
B) strengths, weaknesses, organizations, and tools
C) strengths, weaknesses, opportunities, and threats
D) strengths, weaknesses, opportunities, and tools
C. strengths, weaknesses, opportunities, and threats
89) Which of the following is NOT a key element in developing an action plan? 89) ______
A) sequence and timing B) accountability
C) making real-time adjustments D) monitoring the implementation
C. making real-time adjustments
90) ________ serve as the future "end states" targeted by its managers. 90) ______
A) Plans B) Strategies C) Tactics D) Objectives
D. objectives
91) Identify the question that managers at the strategic business unit (SBU) level would attempt to address. 91) ______
A) "What industries should we get into or out of?"
B) "What resources should be allocated to each of the businesses?"
C) "What activities does my unit need to perform well in in order to meet customer expectations?"
D) "Who are our direct competitors?"
D. "who are our direct competitors?"
92) Which of the following statements regarding objectives is true? 92) ______
A) Managers need to assign equal importance to all of the objectives.
B) A clear understanding of the sequence of priorities has no significant impact on employee performance.
C) The importance of some objectives varies with time.
D) Determining priorities for objectives is usually the final stage associated with setting objectives.
C. the importance of some objectives varies with time
93) ________ is a term that refers to the tool used to quantify and allocate resources to specific activities. 93) ______
A) Budget B) Contingency plan
C) Accounting D) Benchmarking
A. budget
94) Ted is a manager at the strategic business unit level of his organization. Which of the following would be one of his responsibilities? 94) ______
A) ensuring coordination across different departments of business
B) facilitating the achievement of the competitive plan of the business
C) deciding whether to expand operations in Brazil
D) determining the activities to be performed to meet customer expectations
A. ensuring coordination across different departments of business
95) Which of the following business plans has the broadest scope? 95) ______
A) strategic plans B) tactical plans
C) functional plans D) operational plans
A. strategic plans
96) Altering the time frame for a goal is most likely to affect ________. 96) ______
A) the realism of the goal B) the specificity of the goal
C) the scope of the goal D) the measurability of the goal
D. the measurability of the goal
97) Ned heads the finance department of a business. At which organizational level is Ned functioning? 97) ______
A) corporate level B) functional level C) strategic level D) business level
B. functional level
98) A manager of a local flower franchise is investigating her own company's strengths and weaknesses and comparing them with those of her competitors. She is operating at the ________ level. 98) ______
A) functional B) corporate C) operational D) business
D. business
99) Which of the following statements is true about strategic plans? 99) ______
A) They focus on the broad future of the organization.
B) They have a narrow scope, a departmental focus, and a short time frame.
C) They focus on the immediate functional aspects of an organization.
D) They have moderate interdependence and cross-functional relevance.
A. they focus on the broad future of the organization
100) At the functional level of an organization, a manager would attempt to address the issue of: 100) _____
A) determining the advantages over competitors.
B) assessing a competitor's strengths and weaknesses.
C) identifying the business' direct competitors.
D) evaluating the unit's strengths and weaknesses.
D. evaluating the units strengths and weaknesses
101) In the context of an organization, identify the correct statement from the following. 101) _____
A) The term member refers to all employees of the organization.
B) Union is synonymous with collective bargaining units.
C) All those who are not involved in specific managerial activities must be members of the union.
D) All members are, by definition, parts of collective bargaining units.
A. the term member refers to all employees of the organization
102) What is the primary legacy of Frederick Taylor? 102) _____
A) the concept of job enrichment B) the concept of employee motivation
C) the "hierarchy of needs" theory D) the principles of scientific management
D. the principles of scientific management
103) As the regional manager of an accounting firm, Ruth is often required to attend ceremonial activities like attending a social function on behalf of the company or presiding at a farewell dinner of a departing employee. Which of the following is similar to the given scenario? 103) _____
A) As a marketing manager, Aaron's accountability to the firm lies in seeking extensive information and remaining aware of crucial developments in the industry.
B) One of Naomi's responsibilities as a manager is to build contacts with important officials within and outside the industry.
C) In his capacity as a manager, Dave is often required to solve conflicts within the organization.
D) As the dean of a business school, Jack is always present at official functions like commencement ceremonies and convocations to give away diplomas.
D. as the dean of a business school, Jack is always present at official functions like commencement ceremonies and convocations to give away diplomas
104) According to Rosemary Stewart, ________ involve(s) activities or duties that must be accomplished and standards or levels of minimum performance that must be met. 104) _____
A) constraints B) choices C) planning D) demands
D. demands
105) A manager in the ________ role not only receives information but also sends it. 105) _____
A) disseminator B) negotiator C) monitor D) entrepreneurial
A. disseminator
106) ________ are important at all levels of the management, and a lack of these skills will usually limit managerial advancement, even when other skills exist. 106) _____
A) Interpersonal skills B) Organizational skills
C) Conceptual skills D) Technical skills
A. interpersonal skills
107) Sarah is the business manager of a company manufacturing shoes. After a successful stint in the shoe industry, she begins to consider the viability of expanding the business to the leather bag industry. This is an example of ________. 107) _____
A) tactical planning B) operational planning
C) functional planning D) strategic planning
D. strategic planning
108) Matt is known to have substantial influence over his team. He has regular meetings with them to ensure that they do not lose sight of what they are trying to accomplish. He also motivates them to set challenging targets for themselves and achieve those targets. What role is Matt playing? 108) _____
A) the leader role B) the monitor role
C) the negotiator role D) the figurehead role
A. the leader role
109) When forming the strategy of the major units within an organization, managers should ________. 109) _____
A) not focus on the human factor B) focus only on existing opportunities
C) be innovative and entrepreneurial D) assume that conditions will remain stable
C. be innovative and entrepreneurial
110) Which of the following statements about globalization is NOT true? 110) _____
A) Globalization affects the goals, decisions, and responsibilities of managers.
B) Globalization affects large businesses but seldom impacts small businesses.
C) Globalization opens new markets and increases competition.
D) Globalization promotes greater involvement in international markets.
B. globalization affects large businesses but seldom impacts small businesses
111) How can a company communicate ethical standards? 111) _____
A) by repeatedly communicating the code in memos and company newsletters
B) by disseminating a one-time memo
C) by letting employees conduct themselves in ways they think appropriate and correcting them, if need be
D) by conducting one-to-one meetings with the manager and the employee
A. by repeatedly communicating the code in meos and company newsletters
112) When companies reward employees who report valid claims of corporate unethical conduct, what are they clearly encouraging? 112) _____
A) pay for performance B) moral intensity
C) whistleblowing D) compensatory justice
C. whistleblowing
113) The ________ associated with the outcome of a given action is the anticipated level of impact, independent of whether the consequences are positive or negative. 113) _____
A) temporal immediacy B) probability of effect
C) concentration of effect D) magnitude of the consequences
D. magnitude of the consequences
114) When managers look at social issues in general terms of the extent to which they are problematic they are following the ________ approach to strategic corporate social responsibility. 114) _____
A) outside-out B) inside-out C) inside-in D) outside-in
A. outside-out
115) ________ is the extent to which consequences are focused on a few individuals or dispersed across many. 115) _____
A) Concentration of effect B) Proximity
C) Probability of effect D) Social consensus
A. concentration of effect
116) Pixel Inc is planning to upgrade its technology infrastructure. However, this move is likely to render more than half of its workforce redundant. Which of the following statements is true in this scenario? 116) _____
A) The magnitude of the consequence is high.
B) The probability of effect is low.
C) The concentration of effect is low.
D) There is a high degree of social consensus.
A. the magnitude of the consequence is high
117) According to philosopher Immanuel Kant, ________ form the basis of all rights. 117) _____
A) freedom and autonomy B) fairness and equitability
C) individuality and happiness D) justice and truth
A. freedom and autonomy
118) The ________ approach to ethical decision making focuses on the equity of processes and outcomes. 118) _____
A) universal B) moral rights C) justice D) utilitarian
C. justice
119) ________ is a learned set of assumptions, values, and beliefs that have been accepted by members of a group and that affect human behavior. 119) _____
A) Nationality B) History C) Ethnicity D) Culture
D. culture
120) Which of the following is a dimension of the country's physical infrastructure? 120) _____
A) production of raw materials B) welfare of the citizens
C) political stability D) number of airports
D. number of airports
121) People who live in countries that score high on individual orientations tend to ________. 121) _____
A) emphasize and reward individual achievement
B) exhibit emotional dependence on organizations
C) value collective decisions
D) emphasize group membership
A. emphasize and reward individual achievement
122) Countries emphasizing feminine traits value ________. 122) _____
A) activities that lead to possessions B) activities that enhance quality of life
C) activities that lead to success D) activities that lead to money
B. activities that enhance quality of life
123) ________ is when cultures differ in the extent to which they need clarity or can tolerate ambiguity. 123) _____
A) Collectivism B) Power distance
C) Individualism D) Uncertainty avoidance
D. uncertainty avoidance
124) Which of the following is a challenge associated with cross-border acquisitions? 124) _____
A) little control over the product
B) complexity in launching
C) increased costs of transportation
D) integration of two previously independent companies
D. integration of two previously independent companies
125) SockUp is a company that manufactures socks of different sizes, types, and colors for men, women, and children. The company aims at being the lowest-cost provider and charges slightly lower than the market price. This is an example of ________. 125) _____
A) multipoint competition strategy B) differentiation strategy
C) cost leadership strategy D) integrated leadership strategy
C. cost leadership strategy
126) ________ strategies focus on the operations of each function and their contribution to help the firm achieve a competitive advantage. 126) _____
A) Business-level B) Unit-level
C) Competitive D) Corporate-level
A. business level
127) McKinsey discovered that performance declined when many of their clients implemented new strategic plans because the strategies were ________. 127) _____
A) executed without sufficient studies of the competitive environment
B) not developed organically within the company
C) not designed, recommended, and reviewed by McKinsey consultants
D) implemented within old structures, cultures, skills, styles, and staff
D. implemented within old structures, cultures, skills, styles, and staff
128) Which one of the following is necessary if a firm is to maintain a competitive advantage? 128) _____
A) providing products and services of a superior value than those of competitors
B) winning consistently over the short term in a competitive situation
C) reproducing the successful actions of competitors
D) charging a higher price than what competitors charge
A. providing products and services of a superior value than those of competitors
129) A(n) ________ articulates the fundamental purpose of the organization and often contains several components. 129) _____
A) income statement B) statement of faith
C) mission statement D) annual report
C. mission statement
130) Which of the following is a reason why goals that are too easy to achieve are usually ineffective? 130) _____
A) Employees are too financially motivated to achieve the goals.
B) The goals do not deliver substantial results.
C) The goals are not specific enough.
D) Employees are daunted by having to perform at a level much higher than their capabilities.
B. the goals do not deliver substantial results
131) Which of the following organizational levels is also known as the strategic business unit? 131) _____
A) functional level B) operational level
C) corporate level D) business level
D. business level
132) ________ is a decision-making process that focuses on the future of an organization and how it will achieve its goals. 132) _____
A) Programming B) Planning
C) Implementation D) Budgeting
B. planning
133) A(n) ________ budget outlines how much money an organization needs, and it is submitted to a superior or a budget review committee. 133) _____
A) pro forma B) approved C) linked D) proposed
D. proposed
134) In the context of an organization, members are defined as ________. 134) _____
A) the nonmanagerial employees B) members of the labor union
C) all employees D) the group of rank-and-file employees
C. all employees
135) ________ roles of a manager are composed of the figurehead role, the leader role, and the liaison role. 135) _____
A) Decisional B) Informational C) Interpersonal D) Negotiator
C. interpersonal
136) Effective managers ________. 136) _____
A) prefer working alone rather than with groups or other individuals
B) let subordinates evaluate people's skills before selecting the best candidate
C) use resources to maximize the achievement of the organization's goals
D) accept existing resource limits and levels of employee motivation
C. use resources to maximize the achievement of the organizations goals
137) ________ is the degree to which people see an issue as an ethical one. 137) _____
A) Disparate impact B) Moral intensity
C) Social consensus D) Ethnocentricity
B. moral intensity
138) Which of the following is least likely to encourage whistleblowing? 138) _____
A) communicating procedures to all employees
B) investigating all claims based on consistent procedures
C) having a closed-door policy
D) protecting whistleblowers who make valid claims
C. having a closed-door policy
139) ________ is the rapid development of trust in teams with positive and reciprocal communications about the team's task activities. 139) _____
A) Improved trust B) Reciprocal trust
C) Swift trust D) Improved reliability
C. swift trust
140) Which of the following is a requirement for swift trust? 140) _____
A) The manager must let the team members eliminate misunderstandings among themselves.
B) Team members must know each other's faiths before starting a project.
C) The manager must have significant cultural knowledge and sensitivity to handle the virtual team.
D) Team members must learn a common language to communicate better.
C. the manager must have significant cultural knowledge and sensitivity to handle the virtual team
141) Companies perform ________ to reinforce efforts that have contributed to desired results and to correct those that have not. 141) _____
A) internal audits B) benchmarking exercises
C) organizational performance evaluations D) SWOT analyses
D. SWOT analyses
142) Which of the following is true about cost leadership strategy? 142) _____
A) The key to this strategy is to add value at a cost that produces a superior margin.
B) In this strategy, firms seek to make their product or service different from those of competitors.
C) One of the ways of achieving cost leadership is by using special technology.
D) Firms using this strategy charge slightly higher than industry-average prices.
C. one of the ways of achieving cost leadership is by using special technology
143) Which of the following is NOT one of the five characteristics of effective goals? 143) _____
A) specificity B) measurability C) commitment D) abstractness
D. abstractness
144) Which of the following types of managerial roles includes acting as a monitor, disseminator, and a spokesperson? 144) _____
A) liaison roles B) informational roles
C) interpersonal roles D) decisional roles
B. informational roles
145) Which of the following is in accordance with the utilitarian approach to ethical decision making? 145) _____
A) Focus on the equity and process of outcomes.
B) Do onto others as you would have them do unto everyone, including yourself.
C) Try to make decisions that result in the greatest good.
D) Choose the action that conforms with moral principles.
C. try to make decisions that result in the greatest good
146) According to Hofstede, ________ is the extent to which people accept power and authority differences among people. 146) _____
A) uncertainty avoidance B) individualism
C) power distance D) gender focus
C. power distance
147) Nobelle, a chocolatier based in France, produces candy containing exotic ingredients from the rain forests of Brazil. The ingredients are provided by a single supplier who has an exclusive contract with Nobelle. The chocolate manufacturer thus has a great deal of power over the market. This is an example of ________. 147) _____
A) competitive advantage B) strategic vision
C) strategic management D) distinctive competence
A. competitive advantage
148) Which one of the following is a benefit of zero-based budgeting? 148) _____
A) Expensive items can be justified based on their historical merits.
B) Managers can rely on last year's budget to identify patterns.
C) Items that cannot be justified on their current merits will not be allocated money.
D) It requires less time to create than an incremental budgeting approach.
C. items that cannot be justified on their current merits will not be allocated money
149) The term ________ refers to any person in an organization without regard to that individual's role in it. 149) _____
A) member B) manager C) management D) union
A. member
150) From an efficiency perspective, when the manager of a business ________, the self-interests of the owner are best achieved by serving the interests of society. 150) _____
A) plays a purely administrative role B) is also its owner
C) is risk averse D) has a strong concern for social welfare
B. is also its owner
151) What are interpersonal roles?
Interpersonal roles are composed of three types of behavior and are derived directly from the managers formal authority granted by the organization. The three types of behavior are:
1. figurehead role: emphasizes ceremonial activities
2. leader role: involves influences or directing others
3. liaison role: a managers contacts with those outside the formal chain of command (customers, suppliers)
152) How are interpersonal skills critical for managerial tasks?
Interpersonal skills are critical because a lack of these skills may prematurely limit managerial advancement even when other skills exist. These skills are also particularly important at lower and middle class levels
153) According to Rosemary Stewart's analysis of a managerial job along different dimensions, what sort of factors might be found in the demands dimension?
Activities or duties to carry out and the standards or levels of minimum performance to meet. Attending required meetings, adhering to scheduled deadlines, and following certain procedures.
154) What does the efficiency perspective of social responsibility suggest when the manager of a business is also its owner?
The self-interests of the owner are best achieved by serving the needs of society, by incorporating societies values.
155) What is the strategic corporate social responsibility perspective? Explain the "inside-out" approach with examples.
-This approach argues that three fundamental criteria can guide managers when responding to concerns, inside out, outside in, outside out
-The strategic corporate social responsibility perspective is a three criteria model that can help managers focus on social areas where there is the highest possibility of creating shared value for the business and society
-The first criterion takes an "inside out" approach. Managers can look inside the company at issues that are more rather than less important as a function of the company's strategy and business activities.
156) What is a globally focused organization?
A globally focused organization is an organization that invests the primary authority for major strategic decision in the home office
-Try to market a relatively standardized product across geographic markets.
157) Explain the importance of the institutional environment.
The institution environment is important because it includes the country's rules, policies, and enforcement processes that influence individuals and organizations behaviors that operate within the country boundaries
-important because it influences the behavior of the individuals and organizations that operate within the country
158) Describe the differentiation strategy.
The differentiation strategy is used to gain competitive advantage by making a product or service different from those of its competitors
159) What is the focus of executives at the business level?
(SBU strategic business unit)
-determining how they are going to compete effectively in the market
-who are our direct competitors?
-what are their strengths/weaknesses?
-what are our strengths/weaknesses?
160) Explain the types of planning that prevail within organizations.
-Strategic Plans: focus on the broad future and incorporate both external environmental demands and internal resources
-Tactile Plans: translate strategic plans into specific goals for specific parts of the organization
-Operational Plans: translate tactile plans into specific goals and actions for small units of the organization and focus on the near term
161) Briefly describe the Foreign Corrupt Practices Act.
The Foreign Corrupt Practices Act is a law prohibiting employees of US firms from corrupting the actions of foreign officials, politicians, or candidates for office.
162) Define the term institutional environment.
Institutional environment is the countries rules, policies, and enforcement processes that influence individuals and organizations behaviors that operate within the country boundaries
163) What is the meaning of the term competitive advantage? Discuss the four required elements for competitive advantage.
Competitive advantage is the ability of a firm to win consistently over the long term in a competitive situation.

Four elements of competitive advantage:
1. they provide superior value
2. they are rare
3. they are difficult to imitate
4. they are non substitutable
164) What tactical plans are evident in this scenario?
-shorter time frame, affect single business within organization