101 terms

Management 301 First Test

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One of the major differences between statements of strategic vision and mission statements is that the​ ________.
A) strategic vision contains information about a​ company's obligation to shareholders while a mission statement does not
B) mission statement deals exclusively with its principal​ products, while the strategic vision incorporates a​ company's identity or​ self-concept
C) mission statements tend to be much more specific in terms of the values and the primary focus of the organization
D) strategic vision contains information on a​ firm's geographic focus while a mission statement does not
C) mission statements tend to be much more specific in terms of the values and the primary focus of the organization
Which of the following is the fourth step in minimizing the effects of escalation of​ commitment?
A) As a​ manager, one can encourage each member to evaluate the prospects of future outcomes.
B) As a​ manager, one should stress that all past investments cannot be recovered.
C) One must create an atmosphere in which consistency does not dominate.
D) A member can be appointed to serve as a​ devil's advocate to challenge the majority position.
D) A member can be appointed to serve as a​ devil's advocate to challenge the majority position.
In the context of the strategic corporate social responsibility​ perspective, the​ inside-out approach involves managers looking​ ________.
A) at social issues to the extent to which they are problematic
B) at the issues faced by other companies in the same industry
C) inside the company at issues that are more rather than less important
D) outside the company at issues the company can influence
C) inside the company at issues that are more rather than less important
Which of the following managerial functions involves estimating future conditions and circumstances and making decisions about appropriate courses of​ action?
A) controlling
B) planning
C) organizing
D) directing
B) Planning
Management is a process undertaken in an organization by people with different functions intentionally structured and coordinated to achieve common purposes.
a) True
b)False
a) True
Management involves acting in a​ goal-directed manner to accomplish tasks.
a) True
b) False
a) True
​________ refers to the development and observation of the increasing international and​ cross-national nature of everything from politics to business.
A) Leadership
B) Management
C) Globalization
D) Entrepreneurship
C) Globalization
Which of the following is the most​ persistent, pervasive, and powerful challenge that all managers have to deal​ with, regardless of the nature of their organization or its​ location?
A) managing change
B) managing legal issues
C) managing resources
D) managing labor unions
A) Managing Change
Which of the following statements is consistent with Frederick​ Taylor's view on​ management?
A) Pay is the primary factor that motivates the employees to work.
B) Employees should be provided with proper feedback and incentives.
C) Control is more important than cooperation.
D) Employees are just like any other factor of production.
B) Employees should be provided with proper feedback and incentives
​________ is best known for promoting​ "Theory Y" leadership practices.
A) Douglas McGregor
B) Frederick W. Taylor
C) Chester Barnard
D) Alfred P. Sloan
A) Douglas McGregor
Which of the following managerial functions involves systematically integrating resources to accomplish​ tasks?
A) organizing
B) planning
C) directing
D) controlling
A) Organizing
The​ ________ role is an interpersonal role.
A) entrepreneurial
B) disseminator
C) monitor
D) figurehead
D) Figurehead
Which of the following is an informational role of a​ manager?
A) negotiator
B) disseminator
C) liaison
D) disturbance handler
B) Disseminator
According to the British researcher Rosemary​ Stewart, which of the following is one of the three dimensions that characterize a managerial​ job?
A) operations
B) compliance
C) tactics
D) demands
D) Demands
The amount of time available for an​ activity, budgets,​ technology, and legal regulations are examples of the​ ________ dimension of a managerial job.
A) choice
B) constraint
C) demand
D) compliance
B) Constraint
________ skills involve having specialized knowledge about​ procedures, processes, and​ equipment, and include knowing how and when to use that knowledge.
A) Interpersonal
B) Conceptual
C) Critical thinking
D) Technical
D) Technical
________ skills, also called cognitive​ abilities, are essential for the​ top-level management in an organization.
A) Technical
B) Conceptual
C) Interpersonal
D) Critical thinking
B) Conceptual
________ is concerned with morality and standards of business​ conduct, especially among individuals.
A) Moral syncretism
B) Meta-ethics
C) Moral absolutism
D) Managerial ethics
D) Managerial Ethics
Ethical judgments can vary even within a culture.

A) True
B) False
A) True
According to the​ ________ perspective, a​ manager's responsibility is to maximize profits for the owners of the business.
A) efficiency
B) application
C) opportunistic
D) moral
A) Efficiency
According to the social responsibility perspective​ ________.
A) managers must consider the legitimate concerns of other stakeholders beyond just the​ firm's shareholders
B) managers should conduct business in accordance with​ owner's desires
C) it is socially responsible to maximize the return to the shareholder
D) a​ manager's responsibility is to maximize profits for the owners of the business
A) managers must consider the legitimate concerns of other stakeholders beyond just the​ firm's shareholders
In the context of the strategic corporate social responsibility​ perspective, which of the following approaches takes into consideration social issues like​ poverty, literacy, and​ sanitation?
A)outside-out
B) inside-in
C) outside-in
D) inside-out
A) Outside-out
Under the moral rights approach to ethical decisions when two courses of action have moral​ standing, you should​ ________.
A) choose the action that only conforms with moral principles
B) choose the action that conforms with moral principles and provides positive consequences
C) focus on an examination of the actions depending on their consequences
D) focus on the negative consequences of each action to determine the more ethical course
B) choose the action that conforms with moral principles and provides positive consequences
In the context of the justice​ approach, managers ascribing to​ ________ justice distribute rewards and punishments equitably based on performance.
A) procedural
B) universal
C) distributive
D) compensatory
C) Distributive
In the context of moral​ intensity, ________ indicates the extent to which members of a society agree that an act is either good or bad.
A) probability of effect
B) temporal immediacy
C) social consensus
D) magnitude of the consequences
C) social consensus
Which of the following components of moral intensity indicates the extent to which consequences are focused on a few individuals or dispersed across​ many?
A) magnitude of the consequences
B) concentration of effect
C) temporal immediacy
D) probability of effect
B) Concentration of effect
A​ whistle-blower is​ ________.
A) an external auditing firm that discovers an accounting fraud in the organization
B) an employee who engages in to bribery on behalf of the organization
C) an employee who discloses illegal or unethical conduct on the part of others in the organization
D) an employee who violates the ethical code of conduct of the organization
C) an employee who discloses illegal or unethical conduct on the part of others in the organization
The​ ________ was passed in 1977 primarily because U.S. firms were making payments to foreign government officials to win government contracts and receive preferential treatment.
A) Federal Advisory Committee Act
B)Federal Trade Commission Act
C) Foreign Trade Commission Act
D) Foreign Corrupt Practices Act
D) Foreign corrupt Practices Act
Which is the first step of the rational model of decision​ making?
A) analyzing alternatives
B) developing objectives and criteria
C) identifying decision situations
D) implementing a decision
C) Identifying decision situations
The subjectively expected utility model exemplifies that idea that​ ________.
A) managers will choose the alternative that maximizes the desired outcome
B) one can consider alternatives one has successfully resorted to in the past
C) one can eliminate alternatives that are unlikely to at least achieve the minimally acceptable outcome
D) a single criterion will be sufficient to guide the​ decision-making process
A) managers will choose the alternative that maximizes the desired outcome
A(n)________ is a rule that limits the search for alternatives to areas that have a high probability for yielding success.
A) algorithm
B) heuristic
C) brute force technique
D) dialectic
B) Heuristic
Which of the following stands true for the bounded rationality​ model?
A) It assumes people are completely rational when they make decisions.
B) The bounded rationality model argues that people use explicit criteria and weights to evaluate alternatives rather than heuristics.
C) People cannot identify all the possible solutions to select the best alternative.
D) One mechanism of this model is satisficing which involves choosing a minimally acceptable solution rather than searching exhaustively for the alternative that produces the best results.
D) One mechanism of this model is satisficing which involves choosing a minimally acceptable solution rather than searching exhaustively for the alternative that produces the best results
The more ambiguous the​ ________ is, the harder it is to be certain about the right decision.
A) character of the​ decision-maker
B) nature of the problem
C) importance of the decision
D) environment surrounding the​ decision-making process
B) Nature of the problem
Which of the following is a characteristic of a decision​ maker?
A) accountability
B) unfamiliarity
C) instability
D) motivation
D) Motivation
Which of the following is true regarding individual decision making and group decision​ making?
A) group decision making is faster than individual decision making
B) group decision making is both an asset and a liability
C) both bring equal cumulative knowledge to problems
D) individual decision making is superior to group decision making
B) group decision making is both an asset and a liability
While​ ________, involving group members often leads to greater acceptance of the final outcome.
A) implementing the choice
B) identifying alternatives
C) evaluating alternatives
D) choosing alternatives
D) choosing alternatives
As a strategy to improve decision​ making, ________ is the process of assigning several group members to represent the opinions of various constituencies that might have an interest in the decision.
A) multiple advocacy
B) structured debate
C) brainstorming
D) dialectical inquiry
A) Multiple advocacy
As a technique to improve the​ problem-solution process,​ ________ is a process of generating many creative solutions but not immediately evaluating their merit.
A) structured debate
B) brainstorming
C) nominal group technique
D) delphi technique
B) Brainstorming
​________ occurs when agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action.
A) Peer pressure
B) Scapegoating
C) Group polarization
D) Groupthink
D) Groupthink
Which of the following will lead to a competitive​ advantage?
A) standardized value
B) availability of close substitutes
C) low scale of production
D) superiority of product
D) Superiority of product
Having capabilities that are rare and provide superior value for customers will produce a permanent competitive advantage.
A) True
B) False
B) False
The​ ________ of a firm represents a view of the firm over the long term that describes what it should achieve in the future.
A) operational objectives
B) shareholder obligation
C) tactical vision
D) strategic vision
D) Strategic Vision
Long term economic changes that significantly affect the current and future dynamics of economic activity are called​ ________.
A) structural changes
B) fundamental changes
C) active changes
D) policy changes
A) Structural changes
Institutional force is a dimension of the external environment that is typically examined in the context of a foreign country. Which of the following is included under institutional​ force?
A) mineral resources
B) air links
C) country's infrastructure
D) rules and policies
D) Rules and policies
Which of the following dimensions of the general environment includes the demographics of the country in which an organization​ operates?
A) economic
B) sociocultural
C) global forces
D) political-legal
B) Sociocultural
Many North American steel manufacturers were driven into bankruptcy because virtually all of the largest firms were slow to adopt an important​ technology, the electric arch furnace. This is an example of​ ________ technological change.
A) process
B)product
C) paradigm
D) positioning
A) Process
Which of the following factors most likely leads to lower​ profits?
A) high entry barriers
B) quality-based competition
C) few suppliers
D) few new entrants
C) Few Suppliers
Michael Porter developed perhaps the most​ well-known model for analyzing a​ firm's industry and competitor environment. The​ ________ is one of the five forces that yields information on​ competitors' strengths and weaknesses.
A) substitutes
B) bargaining power of sellers
C) bargaining power of buyers
D) nature of rivalry in the industry
D) nature of rivalry in the industry
Which of the following components of the value chain consists of activities that are designed to​ receive, store, and then disseminate various inputs related to the​ firm's products or​ services?
A) after-sale service
B) inbound logistics
C) operations
D) marketing and sales
B) Inbound Logistics
Which of the following is considered a primary activity in the value chain​ analysis?
A) infrastructure management
B) technology development
C) marketing and sales
D) human resource management
C) Marketing and sales
A firm is analyzing the foreign markets that appear to be attractive destinations for its products. In the context of the SWOT​ analysis, this is a part of the​ ________ dimension.
A) threat
B) opportunity
C) strength
D) weakness
B) Opportunity
The​ ________strategy determines what business or businesses the firm wishes to operate.
A) business-level
B) competitive
C) corporate-level
D) unit-level
C) Corporate-level
Firms using the​ ________ strategy typically charge slightly less than the​ industry-average prices.
A) differentiation
B) price skimming
C) cost leadership
D) multipoint competition
C) cost leadership
Firms following the​ ________ strategy charge premium prices for their goods and services.
A) multipoint competition
B) cost leadership
C) market penetration
D) differentiation
D) Differentiation
Greenfield ventures are a mode of organic entry into a new market.
A) True
B) False
A) True
It is not advisable to tie an​ individual's personal goals to the​ organization's operational adjectives.
A) True
B) False
B) False
An​ organization's ________ are the future end states targeted by its managers.
A) tactics
B) plans
C) operations
D) objectives
D) objectives
Plans are the means by which managers achieve objectives.
A) True
B) False
A) True
Which of the following types of plans has the broadest scope and the longest time​ frame?
A) functional plans
B) tactical plans
C) strategic plans
D) operational plans
C) Strategic plans
When an organization has several businesses or product​ lines, a plan that focuses on a single business or product line constitutes​ a(n) ________.
A) tactical plan
B) departmental plan
C) strategic plan
D) operational plan
A) Tactical Plan
At the​ ________ level, planning focuses on questions such as​ "What industries should we get into or out​ of?" and​ "What markets should the firm be​ in?"
A) corporate
B) business
C) functional
D) unit
A) Corporate
At the​ ________ level, managers engaged in planning focus on determining how they are going to compete effectively in the market.
A) departmental
B) corporate
C) business
D) functional
C) Business
The first two of the simultaneous stages of the planning process include​ ________.
A) developing action plans and implementing these plans
B) setting objectives and measuring them
C) an assessment of the external environment and of internal resources
D) monitoring plans and making​ real-time adjustments
C) an assessment of the external environment and of internal resources
​________ is a popular tool for environmental​ analysis; it involves investigating the best practices used by competitors and noncompetitors in order to identify and imitate those that can be adopted by the firm.
A) Standardizing
B) Extrapolation
C) Forecasting
D) Benchmarking
D) Benchmarking
A(n) ________ budget specifies the amount of money a company plans to spend on specific items
long dash
—such as manufacturing​ equipment, land, and buildings
long dash
—that have​ long-term use and require significant financial investments.
A) cash flow
B) expense
C) capital expenditure
D) value
C) Capital Expenditure
At Carzone​ Corporation, managers use their approved budgets from the previous year as a starting point for developing the current​ year's budget. They then present arguments for why the upcoming budget should be more or less than the previous​ year's budget. Identify the budgeting approach described in this scenario.
A) incremental budgeting approach
B) Kaizen budgeting approach
C) zero-based budgeting approach
D) activity based budgeting approach
A) Incremental Budgeting approach
Which of the following is true of employee commitment as a characteristic of effective organizational​ goals?
A) Superficial agreement to a goal among employees will ensure that the goal is effective.
B) To be​ effective, it is necessary that goals be set by the manager and communicated to the employees.
C) Employee participation in goal setting will increase their commitment to achieving the goals.
D) Because managers are in a position of​ power, they can effectively impose commitment to goals on their employees.
C) Employee participation in goal setting will increase their commitment to achieving the goals.
Having a time frame for goals is necessary to evaluate if the goals are realistic or not.
A) True
B) False
A) True
Which of the following is a challenge facing managers?
A) staying ahead of competitors through replication
B) understanding the differences between ethical issues and legal issues
C) remembering what worked in the past
D) dealing with accelerated decision making, conflict, and stress
D) dealing with accelerated decision making, conflict, and stress
That which the firm does better than any of its competitors is called its _______.
A) core competence.
B) distinctive competence
C) efficiency
D) competitive advantage
B) Distinctive Competence
Finding ways to deliver goods or services as quickly as possible using as few resources as possible is called
A) innovation.
B) efficiency.
C) effectiveness.
D) organizing.
B) Efficiency
The manager of a residential construction business plans to build more houses next year because interest rates are falling and more people will be able to afford new homes. This is an example of ________.
A) Benchmarking
B) Forecasting
C) CPS
D) POLC
B) Forecasting
CEO Herb Kelleher used to set the direction and strategy at Southwest Airlines. What type of managerial role was he performing?
A) Interpersonal
B) Informational
C) Decisional
D) Conclusive
A) Interpersonal
In the early 1980s, Phillip Thompson was a manager at Lever Bros, South Africa in charge of a plant with 3 departments, each with 3 managers. He had a total of 9 managers reporting to him - each of the department ran on a 3-shift, 24 hour basis. In that capacity he took directions from his superior, Lever Bros Technical Director, and the implemented them through the managers that reported to him his. The plant manufactured toilet soaps, laundry soaps, and other detergent products. In that capacity Phillip was most likely to be involved with _______ decisions.
A) operational
B) tactical
C) strategic
D) Advisory

advisory
B) Tactical
José, a manager, has an open door policy and encourages his staff to drop in whenever they have a question. José is exercising ______ skills.
A) technical
B) conceptual
C) human
D) intuitive
C) Human
Milton Friedman would have agreed with which of the following statements about social responsibility?
A) A company will produce ever more quality goods and services when it practices social responsibility.
B) A company will increase their sales when it practices social responsibility.
C) A company will be able to create better jobs when it practices social responsibility.
D) A company will not benefit the stockholders when it practices social responsibility
D) A company will not benefit the stockholders when it practices social responsibility
Which of the following is an example of an organizational stakeholder?
A) Distributors
B) Suppliers
C) Employees
D) Shareholders
C) Employees
A manager is aware that not all his employees contributed equally to the project. In order to determine how much to reward each employees after considering their inputs into the project, the manager will be engaging which approach to resolving the dilemma?
A) Utilitarian
B) Moral rights
C) Justice
D) Universalism
B) Moral Rights
Newly promoted BBA graduates sometimes expect the employees they supervise to be obedient for obedience's sake. The level of personal moral development for which this statement is an example is the __________ level according to Kohlberg.
A) conventional
B) unconventional
C) pre-conventional
D) post-conventional
C) Pre-Conventional
Which is the best model to use when a team of senior managers wishing to expand abroad the most general perspective of the country's environment?
A) 5-Forces Model
B) SEPTED Model
C) The PLC Model
D) The BCG Matrix
B) SEPTED Model
A company that only decides to discontinue manufacturing a product only after pressure from the constituencies has mounted to the point that non-responsiveness would have a negative impact on profits, is known as a(n) _________
A) defender
B) accommodator.
C) anticipator.
D) reactor
D) Reactor
A "vision statement" is a statement of
A) the organization's purpose.
B) what the organization sees in its environment.
C) what the organization wants to become.
D) the organization's ethics
C) what the organization wants to become.
Which of the following would be associated with operational planning?
A) decisions about the overall direction of the organization
B) directing daily tasks of non-managerial personnel
C) managers who pay attention to the environment outside of the organization
D) implementation of policies and plans of top management
B) directing daily tasks of non-managerial personnel
A "SMART" goal is one that is
A) specific, maintainable, attainable, realistic, and time-bound.
B) specific, maintainable, achievement-oriented, real-time, and targeted.
C) specific, measurable, affordable, realistic, and targeted.
D) specific, measurable, attainable, results-oriented, and has targeted dates.
D) specific, measurable, attainable, results-oriented, and has targeted dates.
When analyzing the "W" in SWOT analysis, Roberta, the manager might be assessing:
A) Possible challenges in the market
B) Competitors' actions
C) High turnover of employees
D) Good financial resources of the firm
C) High turnover of employees
A company's CEO puts pressure on his/her firm's R&D managers to develop products that can be created cheaply. The firm would be following a ________ strategy:
A) Cost leadership
B) Differentiation
C) Cost focus
D) Retrenchment
A) Cost Leadership
High product differentiation is generally accompanied by
A) Higher market share
B) Decreased emphasis on competition based on price
C) Higher profit margins and lower costs
D) Significant economies of scale
B) Decreased emphasis on competition based on price
John owns a piano sales and tuning store. He wants to be the biggest retailer in the Midlands. Adding salespeople would be part of his strategic __________.
A) Location
B) Efficacy
C) Efficiency
D) Execution
D) Execution
Which of the following is true about the principal managerial functions applicable to modern organizations?
A) Organizing involves strategic and tactical planning
B) Planning involves the determination of a program of future activities designed to achieve organizational objectives
C) Leading involves a manager driving and pushing those under his control whether they are willing or not, to accomplish organizational goals
D) Controlling employee behavior is easier for a manager from the middle level management
B) Planning involves the determination of a program of future activities designed to achieve organizational objectives
Scott is the business head of a software development firm that wants to increase its market share to 30 percent in the next 5 years. The company feels that the best way to go about this is to acquire smaller firms that have a promising talent pool. In his capacity as a business head, Scott is required to plan how the company will arrange for the necessary finances for these acquisitions. Scott is engaging in ________ for the firm.
A) operational planning
B) product planning
C) tactical planning
D) strategic planning
C) Tactical Planning
A(n) ________ involves having to make a choice between two competing but arguably valid options.
A) cognitive bias
B) ethical lapse
C) fallacy
D) ethical dilemma
D) Ethical Dilemma
Which aspect of the justice approach to ethical decision making forms the basis of affirmative action plans?
A) compensatory justice
B) distributive justice
C) procedural justice
D) restorative justice
A) compensatory justice
What are the primary organizational levels of a corporation?
A) production, marketing, and sales
B) corporate, business, and functional
C) finance, human resources, and operations
D) production, marketing, and administration
B) corporate, business, and functional
In large organizations, strategic plans are typically developed at the ________ level.
A) Corporate
B) business
C) functional
D) operational
A) Corporate
Prior to entering the Eastern European markets, Procter & Gamble assessed the strengths and weaknesses of possible competitors and non-competitors in those markets. Procter & Gamble's actions can be classified as ________.
A) setting objectives and strategies
B) analyzing the external environment
C) determining corporate resources
D) monitoring contingent outcomes
B) analyzing the external environment
A catering company manager is proposing the purchase of a new van to enable the company to handle more deliveries. She is working on ________.
A) a sales pitch
B) a capital expenditure budget
C) an operating budget
D) a contingency plan
B) a capital expenditure budget
________ is the extent to which consequences are focused on a few individuals or dispersed across many.
A) Proximity
B) Probability of effect
C) Concentration of effect
D) Social consensus
C) Concentration of Effect
What is the major problem with the goal, "We will become the best in the business"?
A) It is not specific enough.
B) It is too constricting.
C) It is not relevant.
D) It is not achievable
A) It is not specific enough.
Kenneth is a manager for a content management firm. He realizes that the firm requires five technicians to maintain and update the firm's servers. Which of the following actions would suggest that Kenneth is developing objectives and criteria according to the classical model?
A) Kenneth decides to poach technicians from its competitor to understand its database management techniques.
B) Kenneth realizes that the firm's data storage capacity has to be doubled in the next six months.
C) Kenneth decides that these technicians require 5 percent interpersonal skills, 50 percent technical knowledge, 15 percent motivation, and 30 percent problem solving ability.
D) Kenneth selects twenty resumes from a job portal
C) Kenneth decides that these technicians require 5 percent interpersonal skills, 50 percent technical knowledge, 15 percent motivation, and 30 percent problem solving ability.
Preston rejects Jose for the position of customer-relations manager because of his perception that Mexicans are disloyal. This is an example of ________.
A) cognitive complexity
B) stereotyping
C) uncertainty absorption
D) information bias
B) Stereotyping
________ is the tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than push further for an alternative that produces the best results.
A) Altruism
B) Rational ignorance
C) Groupthink
D) Satisficing
D) Satisficing