The four basic management functions are planning, organizing, influencing, and controlling.
A) True
B) False

A

Planning is concerned with setting objectives for organizational success, while controlling is concerned with monitoring the actual performance of the organization's success.
A) True
B) False

A

________ refers to all the organizational assets available for activation during the production process.
A) Strategies
B) Technologies
C) Resources
D) Plans
E) Information

C

A manager is considered efficient and effective if the manager ________.
A) does not reach goals and wastes resources
B) does not reach goals and does not waste resources
C) reaches goals and wastes resources
D) wastes resources on unattainable goals
E) reaches goals and does not waste resources

E

If a manager reaches goals but wastes resources doing so, the manager is considered to be ________.
A) inefficient and ineffective
B) effective and inefficient
C) efficient and effective
D) neither effective nor ineffective
E) ineffective and efficient

B

Management principles are considered to be universal because ________.
A) the principles of planning, organizing, influencing, and controlling are the same across organizations
B) all organizations have the same organizational hierarchy
C) employees in all organizations have the same skill sets
D) organizational goals and methods do not change from organization to organization
E) production processes and strategies remain the same across organizations

A

According to Robert Katz, applying specialized knowledge and expertise to work-related techniques is a characteristic of ________.
A) strategic skills
B) human skills
C) technical skills
D) interpersonal skills
E) conceptual skills

C

As a manager’s career advances from lower-level management to upper-level management, conceptual skills become more important and technical skills less important while at the same time their time spent planning increases and daily leading of operational employees decreases.
A) True
B) False

A

In building a career, an individual should be focused on ________ to qualify for the next planned job and not simply taking a job with the highest salary.
A) the application process
B) making the most money
C) interviews
D) unit performance
E) developing skills necessary

E

Which career stage is characterized by self-analysis and the exploration of the different types of available jobs?
A) exploration stage
B) career plateauing stage
C) establishment stage
D) decline stage
E) maintenance stage

A

Which of the following demonstrates the correct sequence in the stages of entrepreneurship?
A) Opportunity identification, opportunity evaluation, opportunity exploitation
B) Opportunity identification, opportunity exploitation, opportunity evaluation
C) Opportunity evaluation, opportunity identification, opportunity exploitation
D) Opportunity evaluation, opportunity exploitation, opportunity identification
E) Opportunity exploitation, opportunity evaluation, opportunity identification

A

Which of the following is an example of an opportunity that has arisen from new uses for raw materials?
A) The invention of the heart stent
B) An American bank providing services in Canada
C) Raising chickens without using any antibiotics
D) Using the Internet to sell a product
E) Using corn to produce ethanol

E

Although an opportunity may exist, it needs to be recognized first. This is ________.
A) Opportunity feedback
B) Opportunity evaluation
C) Opportunity exploitation
D) Opportunity identification
E) Opportunity cost

D

Entrepreneurial alertness refers to an individual’s ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment.
A) True
B) False

A

What will entrepreneurs study in a feasibility analysis?
A) Customer demands, structure of the industry, ability to provide the new product or service
B) Ways to increase production and cut corners on costs
C) Strategic planning
D) The likelihood of a product or service affecting the generation gap
E) Entrepreneurial alertness

A

Research suggests that organizations started by entrepreneurial teams tend to perform better than those started by individual entrepreneurs working by themselves. What is this attributed to?
A) The new, fresh mindset of entrepreneurs
B) Organizations started by teams have more money
C) Individual organizations do not have the manpower to help
D) The combination of diverse skills, experiences, and relationships of the entrepreneurial team members
E) Entrepreneurial teams use more research for start-up decisions

D

Entrepreneurs are most likely to exploit an opportunity when ________.
A) Customers are likely to continue using an existing product
B) There is no market demand, but an opportunity to create market demand
C) They perceive that they have the support of important stakeholders
D) They want to enhance the prospects of the opportunity by training an incapable management team
E) They feel they do not have access to the resources needed to ensure high levels of organizational performance

C

Which of the following is an example of an opportunity that arose from the use of a new method of organizing?
A) Using corn to produce ethanol
B) Using the Internet to sell a product
C) Raising chickens without antibiotics
D) An American bank providing services in Australia
E) The invention of the heart stent

B

When Nintendo Crescendo, an electronics company, develops and markets the Wii gaming system, it is an opportunity that has arisen from a ________.
A) New product or service
B) New geographical market
C) New method of production
D) New raw material
E) New method of organizing

A

The ability of entrepreneurs to understand how to turn a new technology into a product or service that will be valued by consumers refers to the ability to assess ________.
A) Information symmetry
B) Market research
C) Means-end relationships
D) Social networks
E) Entrepreneurial risk

C

Social responsibility is the managerial obligation to take action that protects and improves both the welfare of society and the interests of the organization.
A) True
B) False

A

Any individual or group that is directly or indirectly affected by an organization’s decisions is called a stakeholder.
A) True
B) False

A

Measuring the present socially responsible activities of an organization to assess performance in those areas is known as a/an ________.
A) Social check
B) Social audit
C) Social benchmark
D) Social target reading
E) Social responsive mark

B

When Apple donates computers for educational purposes, the company is said to be working towards enhancing its ________ efforts.
A) Redundant
B) Philanthropic
C) Obligation
D) Educational
E) Philosophical

B

________ is the degree to which a person or an entity can meet its present needs without compromising the ability of other people or entities to meet their needs in the future.
A) Accountability
B) Reliability
C) Sustainability
D) Maintainability
E) Scalability

C

The three sustainability gauges for organizational development – economy, environment, and society – considered collectively are commonly referred to as the ________.
A) Triple bottom-line
B) Triple threat
C) Long-term tests
D) Global best practices
E) Protection areas

A

Which of the following suggests that an organization is acting unethically?
A) The customers are unhappy with one of the products manufactured by the organization.
B) The public pressures legislators and other government officials to enforce existing regulations.
C) The organization loses its customers to competitors due to lack of after-sale services for its products.
D) The public pressures the organization to conduct social responsibility activities.
E) The union members of the organization declare a strike to demand a hike in salaries.

B

________ is a formal statement that acts as a guide for the ethics of how people within a particular organization should act and make decisions.
A) A social audit
B) A whistle-blower’s policy
C) Corporate governance
D) A code of ethics
E) A mission statement

D

________ indicates that behavior can be considered ethical if it provides the most good for the greatest number of people.
A) The golden rule
B) The deontological principle
C) The utilitarian standard
D) The virtue standard
E) The Kantian principle

C

A whistle-blower is ________.
A) The employee who reports the alleged activities of the firm
B) The customer who files a product liability suit against the firm
C) The business lawyer who protects the firm against lawsuits
D) The employee who performs the unethical or illegal activity in the firm
E) The manager who protects the employee who reports the alleged activities of the firm

A

The process of determining how an organization can get where it wants to go and what it will do to accomplish its objectives is known as ________.
A) Organizing
B) Influencing
C) Planning
D) Controlling
E) Analyzing

C

A potential disadvantage of planning is that it can take up too much managerial time.
A) True
B) False

A

A single-use financial plan that covers a specified length of time is known as a(n) ________.
A) Offshoot
B) Microsystem
C) Spinoff
D) Subsystem
E) Budget

E

Alisa is trying to determine how to get her employees more involved in the company’s plans and goals. Which one of the following actions could she take as she begins identifying the goals for her department for the upcoming year?
A) Tell employees which goals they will be working on.
B) Have employees vote on the goals for the organization.
C) Assign goals randomly to employees.
D) Let the people responsible for attaining the objectives have a voice in setting them.
E) Let upper management set all departmental goals.

D

Which one of the following steps in the planning process should precede the others?
A) Develop premises upon which each alternative is based
B) Develop plans to pursue the chosen alternative
C) List alternative ways of reaching objectives
D) Choose the best alternative for reaching objectives
E) Put plans into action

C

Premises are the assumptions upon which alternatives to reaching organizational objectives are based.
A) True
B) False

A

It is important for an organization to ensure that the objectives set for its employees are ________.
A) Unrealistically high
B) Within easy reach
C) Low
D) Within reach, but not easy reach
E) Out of reach

D

According to Drucker, which one of the following key areas for organizational objectives is more personal and subjective in nature, and hence likely to arouse managerial opposition?
A) Productivity
B) Innovation
C) Worker performance and attitude
D) Physical and financial resources
E) Market standing

C

When using PERT, the sequence of events requiring the longest period of time is considered to be critical because one delay in the activities results in delays in the completion of a project.
A) True
B) False

A

________ is a standing plan that designates specific required action.
A) A resource
B) A rule
C) A budget
D) A strategy
E) A responsibility

B

Long-range planning that focuses on the organization as a whole is ________.
A) Operational planning
B) Organizational planning
C) Strategic planning
D) Tactical planning
E) Managerial planning

C

The first step of strategic management is designed to ________.
A) Establish an organizational direction
B) Formulate strategy
C) Study the organizational environment
D) Advise managers to commit funds for planning
E) Control the environment

C

The lobbying of government by interest groups is an example of the ________ component of the general environment.
A) Social
B) Political
C) Legal
D) Technological
E) International

B

According to Porter, the threat of new entrants refers to ________.
A) The power that customers have over the firms
B) The power that suppliers have over the firms
C) The extent to which customers may use services from another industry instead of the focal industry
D) The ability of new firms to enter an industry
E) The intensity of the rules of an organization

D

A summer storm just passed through the town of Chester Oaks and caused much roofing and siding damage to homes. This storm offers a(n) ________ to those offering roofing and siding services.
A) Strength
B) Weakness
C) Opportunity
D) Threat
E) Force fulfillment

C

The document that is written by management and describes and explains what the purpose for which the organization exists is the ________.
A) Mission statement
B) Strategic plan
C) Operating plan
D) Annual budget
E) Vision statement

A

Jewel Delight is planning to compete using a differentiation strategy. Doing this means they will have what kind of products in their jewelry stores?
A) Basic, no-frills jewelry offerings
B) Highly unique jewelry offerings
C) One line of jewelry
D) Comparable jewelry their competitors offer
E) Easily imitable jewelry offerings

B

An SBU with a large market share of a low-growth market is a ________.
A) Star
B) Dog
C) Cash cow
D) Question mark
E) Low-cost leader

C

________ is a strategy adopted by management to increase the amount of business that an SBU is currently generating.
A) Differentiation
B) Divestiture
C) Retrenchment
D) Growth
E) Focus

D

Because strategic planning focuses on the long term and tactical planning on the short term, strategic plans cover a relatively long period of time, whereas tactical plans cover a relatively short period of time.
A) True
B) False

A