Name: Better Business Canadian 2nd Edition by Solomon - Test Bank
SKU: 23462
Availability: InStock

Complete Test Bank With Answers

Sample Questions Posted Below

1) ___________ is the process of working with people and resources to accomplish the goals of the organization.

a. Recruitment

Incorrect: Management is the process of working with people and resources to accomplish the goals of the organization.

b. Production

Incorrect: Management is the process of working with people and resources to accomplish the goals of the organization.

c. Management

Correct: Management is the process of working with people and resources to accomplish the goals of the organization.

d. Communication

Incorrect: Management is the process of working with people and resources to accomplish the goals of the organization.

Answer: c

Diff: 1

Type: MC

Page Reference: 95

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

2) Which type of skills describes the drafting skills of an architect, programming skills of a software developer, or the market analysis skills of a marketing manager?

a. conceptual skills

Incorrect: Every job has a set of technical skills that is specific to that particular job. These skills include abilities and knowledge that enable an employee to carry out the tasks required of a discipline or department.

b. technical skills

Correct: Every job has a set of technical skills that is specific to that particular job. These skills include abilities and knowledge that enable an employee to carry out the tasks required of a discipline or department.

c. interpersonal skills

d. decision-making skills

Answer: b

Diff: 2

Type: MC

Page Reference: 95

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

3) Alfred supervises a group of 20 employees. Every day, he finds the time to have one-on-one conversations with each of his workers. These conversations can help boost morale at the office. What type of skills is Alfred demonstrating?

a. decision-making skills

Incorrect: Interpersonal skills allow a manager to interact with others in order to motivate them.

b. interpersonal skills

Correct: Interpersonal skills allow a manager to interact with others in order to motivate them.

c. time management skills

Incorrect: Interpersonal skills allow a manager to interact with others in order to motivate them.

d. conceptual skills

Incorrect: Interpersonal skills allow a manager to interact with others in order to motivate them.

Answer: b

Diff: 3

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

4) Malia was recently complimented on her ability to motivate the employees she supervises. Outline the skill she is being complimented for.

a. conceptual skills

Incorrect: Interpersonal skills are also known as human relations skills because they enable managers to interact with others in order to motivate them.

b. leadership skills

Incorrect: Interpersonal skills are also known as human relations skills because they enable managers to interact with others in order to motivate them.

c. technical skills

Incorrect: Interpersonal skills are also known as human relations skills because they enable managers to interact with others in order to motivate them.

d. interpersonal skills

Correct: Interpersonal skills are also known as human relations skills because they enable managers to interact with others in order to motivate them.

Answer: d

Diff: 2

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

5) Jeffrey is the manager of a manufacturing company that has started to lose money. Explain how Jeffrey can identify the company’s problems.

a. by choosing a plan of action

Incorrect: The first step in a manager’s decision-making process is to identify problems by analyzing data and searching for trends.

b. by generating alternative solutions

Incorrect: The first step in a manager’s decision-making process is to identify problems by analyzing data and searching for trends.

c. by analyzing data and searching for trends

Correct: The first step in a manager’s decision-making process is to identify problems by analyzing data and searching for trends.

d. by ensuring his decisions are carried out immediately

Incorrect: The first step in a manager’s decision-making process is to identify problems by analyzing data and searching for trends.

Answer: c

Diff: 3

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

6) Madison is a top manager who is able to communicate with the board of directors, investors, and other leaders in the business community. Shirley is a middle manager who often communicates with all levels of management and acts as a liaison among groups. Determine the skills both managers possess.

a. time management skills

Incorrect: Interpersonal skills are also known as human relations skills because they enable managers to interact with others in order to motivate them.

b. interpersonal skills

Correct: Interpersonal skills are also known as human relations skills because they enable managers to interact with others in order to motivate them.

c. decision-making skills

Incorrect: Interpersonal skills are also known as human relations skills because they enable managers to interact with others in order to motivate them.

d. technical skills

Incorrect: Interpersonal skills are also known as human relations skills because they enable managers to interact with others in order to motivate them.

Answer: b

Diff: 3

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

7) Which step should a manager carry out first when he or she is making a decision?

a. Choose the best plan of action.

Incorrect: When making an important decision, managers go through a formal decision-making process: identify the problem, generate alternative solutions, evaluate the alternatives, choose the best plan of action, and evaluate the decision.

b. Generate alternative solutions.

c. Evaluate the alternatives.

d. Identify the problem.

Correct: When making an important decision, managers go through a formal decision-making process: identify the problem, generate alternative solutions, evaluate the alternatives, choose the best plan of action, and evaluate the decision.

Answer: d

Diff: 2

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

8) Daniel is part of upper management and is charged with making difficult decisions for the company. During his decision-making process, he must evaluate alternatives based on ______________.

a. cost and time

Correct: The decision-making process includes analyzing a problem, examining the alternatives, choosing and implementing the best plan of action, and evaluating the results.

b. excitement and action needed

Incorrect: The decision-making process includes analyzing a problem, examining the alternatives, choosing and implementing the best plan of action, and evaluating the results.

c. market competition and share

Incorrect: The decision-making process includes analyzing a problem, examining the alternatives, choosing and implementing the best plan of action, and evaluating the results.

d. proximity and employees’ approval

Incorrect: The decision-making process includes analyzing a problem, examining the alternatives, choosing and implementing the best plan of action, and evaluating the results.

Answer: a

Diff: 3

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

9) Carlos is a manager at a bottle distribution company. Though he is only responsible for the marketing department, he can also picture the organization as a whole and understands his department’s relationship to the overall company and the rest of the business community. These facts demonstrate that Carlos has acquired ____________.

a. technical skills

Incorrect: Conceptual skills give the manager the ability to think abstractly and see the company and its relationship to the greater community. A person with these skills also has an understanding about the individual components of an organization.

b. interpersonal skills

c. conceptual skills

Correct: Conceptual skills give the manager the ability to think abstractly and see the company and its relationship to the greater community. A person with these skills also has an understanding about the individual components of an organization.

d. time management skills

Answer: c

Diff: 3

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

10) A manager may go through the decision-making process and find out that business goals are not being met. When this happens, propose what the manager should do.

a. Identify a new problem.

Incorrect: If the goals are not being met, the decision-making process may possibly become cyclical, beginning again with identifying problems.

b. Understand that the problem cannot be solved.

Incorrect: If the goals are not being met, the decision-making process may possibly become cyclical, beginning again with identifying problems.

c. Repeat the process.

Correct: If the goals are not being met, the decision-making process may possibly become cyclical, beginning again with identifying problems.

d. Combine the business goals into one.

Incorrect: If the goals are not being met, the decision-making process may possibly become cyclical, beginning again with identifying problems.

Answer: c

Diff: 2

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

11) When the final choice has been made during the decision-making process, the next step is to _____________.

a. identify the problem

Incorrect: When the final choice has been made, plans are put in place to implement the plan of action.

b. evaluate the alternatives

Incorrect: When the final choice has been made, plans are put in place to implement the plan of action.

c. implement the plan of action

Correct: When the final choice has been made, plans are put in place to implement the plan of action.

d. generate an alternative solution

Incorrect: When the final choice has been made, plans are put in place to implement the plan of action.

Answer: c

Diff: 1

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

12) Jonathan is a manager who is known to have technical skills, while Michelle is good at time management. George relies on his conceptual skills, and Anna has great interpersonal skills. If a new market opportunity or potential threat arises, evaluate the manager that would be able to best analyze the impending outcomes of his or her decision.

a. Jonathan

Incorrect: George’s conceptual skills would allow him to think abstractly in order to picture the organization as a whole and to understand its relationship to the rest of the business community.

b. Michelle

Incorrect: George’s conceptual skills would allow him to think abstractly in order to picture the organization as a whole and to understand its relationship to the rest of the business community.

c. George

Correct: George’s conceptual skills would allow him to think abstractly in order to picture the organization as a whole and to understand its relationship to the rest of the business community.

d. Anna

Incorrect: George’s conceptual skills would allow him to think abstractly in order to picture the organization as a whole and to understand its relationship to the rest of the business community.

Answer: c

Diff: 3

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

13) If Aaron has the ability to identify and analyze a problem, examine the alternatives, choose and implement the best plan of action, and evaluate the results, he has _____________.

a. conceptual skills

Incorrect: The decision-making process includes analyzing a problem, examining the alternatives, choosing and implementing the best plan of action, and evaluating the results.

b. interpersonal skills

Incorrect: The decision-making process includes analyzing a problem, examining the alternatives, choosing and implementing the best plan of action, and evaluating the results.

c. decision-making skills

Correct: The decision-making process includes analyzing a problem, examining the alternatives, choosing and implementing the best plan of action, and evaluating the results.

d. time management skills

Incorrect: The decision-making process includes analyzing a problem, examining the alternatives, choosing and implementing the best plan of action, and evaluating the results.

Answer: c

Diff: 2

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

14) Identify the last step in the decision-making process.

a. Evaluate the decision.

Correct: Decision-making skills refer to the ability to identify and analyze a problem, examine the alternatives, choose and implement the best plan of action, and evaluate the results.

b. Implement the plan of action.

Incorrect: Decision-making skills refer to the ability to identify and analyze a problem, examine the alternatives, choose and implement the best plan of action, and evaluate the results.

c. Generate alternative solutions.

Incorrect: Decision-making skills refer to the ability to identify and analyze a problem, examine the alternatives, choose and implement the best plan of action, and evaluate the results.

d. Choose the best plan of action.

Incorrect: Decision-making skills refer to the ability to identify and analyze a problem, examine the alternatives, choose and implement the best plan of action, and evaluate the results.

Answer: a

Diff: 1

Type: MC

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

15) When Robert’s superior gives him a task with a tight deadline, Robert does it as efficiently as possible. This shows that Robert has developed good _____________.

a. technical skills

Incorrect: Managers with good time management skills have the ability to achieve the maximum amount of productivity in a set amount of time.

b. conceptual skills

Incorrect: Managers with good time management skills have the ability to achieve the maximum amount of productivity in a set amount of time.

c. interpersonal skills

Incorrect: Managers with good time management skills have the ability to achieve the maximum amount of productivity in a set amount of time.

d. time management skills

Correct: Managers with good time management skills have the ability to achieve the maximum amount of productivity in a set amount of time.

Answer: d

Diff: 3

Type: MC

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

16) Dylan is a manager who has vision, knowledge, and interpersonal skills; however, he usually spends the whole day talking with his employees. Select one of the following skills he needs to become a more effective manager.

a. time management skills

Correct: Time management requires that managers have the ability to recognize ways in which they can make every task as productive as possible. Efficiency is necessary in order to successfully manage a business.

b. decision-making skills

Incorrect: Time management requires that managers have the ability to recognize ways in which they can make every task as productive as possible. Efficiency is necessary in order to successfully manage a business.

c. conceptual skills

d. technical skills

Answer: a

Diff: 3

Type: MC

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

17) A(n) ________ helps everyone stay on task and end the meeting on time.

a. e-mail

Incorrect: Time can be easily wasted if a meeting agenda is not clear and goals are not set. Effective managers distribute an agenda to all attendees before a meeting that specifies the goals the meeting must achieve.

b. agenda

Correct: Time can be easily wasted if a meeting agenda is not clear and goals are not set. Effective managers distribute an agenda to all attendees before a meeting that specifies the goals the meeting must achieve.

c. binder

d. deadline

Answer: b

Diff: 1

Type: MC

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

18) Keeping a(n) ________ and crossing off each task when completed are important time management skills.

a. e-mail

Incorrect: Managers must therefore separate paperwork according to due dates and clearly label each pile. Keeping a schedule—either electronically or on a calendar—and crossing off each task when completed are important time management skills.

b. agenda

c. schedule

Correct: Managers must therefore separate paperwork according to due dates and clearly label each pile. Keeping a schedule—either electronically or on a calendar—and crossing off each task when completed are important time management skills.

d. binder

Answer: c

Diff: 1

Type: MC

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

19) Determine which function of management includes establishing goals, developing strategies, and determining resources to meet those goals.

a. planning

Correct: Planning is the process of establishing goals and objectives and determining the best ways to accomplish them.

b. organizing

Incorrect: Planning is the process of establishing goals and objectives and determining the best ways to accomplish them.

c. controlling

Incorrect: Planning is the process of establishing goals and objectives and determining the best ways to accomplish them.

d. leading

Incorrect: Planning is the process of establishing goals and objectives and determining the best ways to accomplish them.

Answer: a

Diff: 2

Type: MC

Page Reference: 98

Objective: 5.2

Explain how corporate vision and a mission statement help to keep the company focused on achieving its goals and objectives.

20) Broad, long-term accomplishments that an organization wants to achieve are called _____________.

a. mission statements

Incorrect: Goals are broad, long-term accomplishments an organization wants to achieve within a certain period—in most companies, this is about five years.

b. goals

Correct: Goals are broad, long-term accomplishments an organization wants to achieve within a certain period—in most companies, this is about five years.

c. objectives

Incorrect: Goals are broad, long-term accomplishments an organization wants to achieve within a certain period—in most companies, this is about five years.

d. strategic targets

Incorrect: Goals are broad, long-term accomplishments an organization wants to achieve within a certain period—in most companies, this is about five years.

Answer: b

Diff: 1

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

21) ________ are short-term targets that are designed to help companies achieve goals.

a. Mission statements

Incorrect: Objectives are the short-term targets designed to help achieve these goals.

b. Objectives

Correct: Objectives are the short-term targets designed to help achieve these goals.

c. Outcomes

Incorrect: Objectives are the short-term targets designed to help achieve these goals.

d. Vision statements

Incorrect: Objectives are the short-term targets designed to help achieve these goals.

Answer: b

Diff: 1

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

22) When does management establish goals and objectives?

a. during a SWOT analysis

Incorrect: Goals and objectives help keep you on task. By establishing them at the beginning of strategic planning, a manager will be able to have long-term and short-term accomplishments to target.

b. in the last step of tactical planning

c. in the first step of strategic planning

Correct: Goals and objectives help keep you on task. By establishing them at the beginning of strategic planning, a manager will be able to have long-term and short-term accomplishments to target.

d. while identifying external opportunities

Answer: c

Diff: 2

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

23) Which of the following statements accurately describes both goals and objectives?

a. Both are achievable in about a five-year time frame.

Incorrect: Both goals and objectives should be specific, measurable, acceptable, realistic, timely, extending, and rewarding.

b. Both are best set with deadlines and quantifiable measures.

Correct: Both goals and objectives should be specific, measurable, acceptable, realistic, timely, extending, and rewarding.

c. Both refer to broad and long-term accomplishments.

Incorrect: Both goals and objectives should be specific, measurable, acceptable, realistic, timely, extending, and rewarding.

d. Both refer to short-term targets and outcomes.

Incorrect: Both goals and objectives should be specific, measurable, acceptable, realistic, timely, extending, and rewarding.

Answer: b

Diff: 2

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

24) Identify the acronym managers should keep in mind when designing and wording goals and objectives.

a. SMART

Incorrect: Both goals and objectives should be specific, measurable, acceptable, realistic, timely, extending, and rewarding.

b. SMARTER

Correct: Both goals and objectives should be specific, measurable, acceptable, realistic, timely, extending, and rewarding.

c. SMARTEST

Incorrect: Both goals and objectives should be specific, measurable, acceptable, realistic, timely, extending, and rewarding.

d. SMARTS

Incorrect: Both goals and objectives should be specific, measurable, acceptable, realistic, timely, extending, and rewarding.

Answer: b

Diff: 2

Type: MC

Page Reference: 102, Figure 5.5

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

25) What is a strategic plan in business planning?

a. a vision statement developed by middle management

Incorrect: Top-level managers develop a strategic plan in order to set the approach for achieving the long-term goals and objectives of the organization. A strategic plan serves as a framework for decisions and assists in setting corporate benchmarks.

b. a way of developing time management skills

c. a goal created by an individual employee

d. a course of action created by top-level managers

Correct: Top-level managers develop a strategic plan in order to set the approach for achieving the long-term goals and objectives of the organization. A strategic plan serves as a framework for decisions and assists in setting corporate benchmarks.

Answer: d

Diff: 2

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

26) Which of the following is the first step in strategic planning?

a. establishing the corporate purpose

Correct: Strategic planning process includes establishing corporate purpose, performing SWOT analysis, formulating strategy, and implementing strategy.

b. operational planning

Incorrect: Strategic planning process includes establishing corporate purpose, performing SWOT analysis, formulating strategy, and implementing strategy.

c. performing a SWOT analysis

Incorrect: Strategic planning process includes establishing corporate purpose, performing SWOT analysis, formulating strategy, and implementing strategy.

d. tactical planning

Incorrect: Strategic planning process includes establishing corporate purpose, performing SWOT analysis, formulating strategy, and implementing strategy.

Answer: a

Diff: 1

Type: MC

Page Reference: 99, Figure 5.3

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

27) In a business organization, determine where planning happens.

a. at all levels

Correct: Planning happens at all levels of an organization.

b. within the board of directors

Incorrect: Planning happens at all levels of an organization.

c. in middle management

Incorrect: Planning happens at all levels of an organization.

d. in top management

Incorrect: Planning happens at all levels of an organization.

Answer: a

Diff: 1

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

28) Explain which of the following sets the approach for achieving the long-term goals and objectives of an organization.

a. developmental plan

b. marketing plan

c. promotional plan

d. strategic plan

Answer: d

Diff: 2

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

29) A strategic plan should _____________.

a. be spontaneous

Incorrect: A strategic plan is realistic and obtainable and looks at the big picture.

b. look at the big picture

Correct: A strategic plan is realistic and obtainable and looks at the big picture.

c. include several companies

Incorrect: A strategic plan is realistic and obtainable and looks at the big picture.

d. be intuitive

Incorrect: A strategic plan is realistic and obtainable and looks at the big picture.

Answer: b

Diff: 1

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

30) Identify the BEST description of a strategic plan.

a. It gears advertising toward the right investors and consumers.

Incorrect: A strategic plan points the organization to where it wants to be in the future and identifies how it’s going to get there.

b. It points the organization to where it wants to be in the future.

Correct: A strategic plan points the organization to where it wants to be in the future and identifies how it’s going to get there.

c. It describes criteria for promoting employees of a company.

Incorrect: A strategic plan points the organization to where it wants to be in the future and identifies how it’s going to get there.

d. It provides specific guidelines for hiring new employees.

Incorrect: A strategic plan points the organization to where it wants to be in the future and identifies how it’s going to get there.

Answer: b

Diff: 2

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

31) Select one of the following questions that managers need to answer when coming up with a strategic plan.

a. What do we want to focus on?

Correct: A strategic plan points the organization to the following questions: “Where are we going?” “What do we want to focus on?” and “What is the best means to get there?”

b. What are the competitors saying about us?

Incorrect: A strategic plan points the organization to the following questions: “Where are we going?” “What do we want to focus on?” and “What is the best means to get there?”

c. What do we purchase?

Incorrect: A strategic plan points the organization to the following questions: “Where are we going?” “What do we want to focus on?” and “What is the best means to get there?”

d. Who is watching us?

Incorrect: A strategic plan points the organization to the following questions: “Where are we going?” “What do we want to focus on?” and “What is the best means to get there?”

Answer: a

Diff: 2

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

32) Which of the following is a characteristic of a strategic plan?

a. broad

Incorrect: A strategic plan is realistic and obtainable and looks at the big picture.

b. complex

Incorrect: A strategic plan is realistic and obtainable and looks at the big picture.

c. realistic

Correct: A strategic plan is realistic and obtainable and looks at the big picture.

d. comprehensive

Incorrect: A strategic plan is realistic and obtainable and looks at the big picture.

Answer: c

Diff: 1

Type: MC

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

33) Which of the following is an aspect that business people must pay attention to when making a strategic plan?

a. shortcomings of the organization

Incorrect: The overall strategic plan is focused on the entire organization, or an entire department. Those making strategic plans must pay attention to capabilities, resources, and changes in the environment.

b. weather forecast in the world

c. personal profile of managers

d. resources of the organization

Correct: The overall strategic plan is focused on the entire organization, or an entire department. Those making strategic plans must pay attention to capabilities, resources, and changes in the environment.

Answer: d

Diff: 2

Type: MC

Page Reference: 98-99

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

34) A company’s ________ describes why the company is in business and what the business will look like in the future.

a. strategic plan

Incorrect: A vision identifies what the business wants to be in the future.

b. company profile

Incorrect: A vision identifies what the business wants to be in the future.

c. corporate objective

Incorrect: A vision identifies what the business wants to be in the future.

d. corporate vision

Correct: A vision identifies what the business wants to be in the future.

Answer: d

Diff: 1

Type: MC

Page Reference: 99

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

35) How does a company establish its corporate purpose?

a. through a code of ethics

Incorrect: The mission statement is a more current description of the organization’s purpose, basic goals, and philosophies.

b. through a company profile

Incorrect: The mission statement is a more current description of the organization’s purpose, basic goals, and philosophies.

c. through a mission statement

Correct: The mission statement is a more current description of the organization’s purpose, basic goals, and philosophies.

d. through a company logo

Incorrect: The mission statement is a more current description of the organization’s purpose, basic goals, and philosophies.

Answer: c

Diff: 2

Type: MC

Page Reference: 99

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

36) Which of the following refers to the organization’s purpose, basic goals, and philosophies?

a. code of ethics

Incorrect: The mission statement is a more current description of the organization’s purpose, basic goals, and philosophies.

b. corporate profile

Incorrect: The mission statement is a more current description of the organization’s purpose, basic goals, and philosophies.

c. mission statement

Correct: The mission statement is a more current description of the organization’s purpose, basic goals, and philosophies.

d. strategic plan

Incorrect: The mission statement is a more current description of the organization’s purpose, basic goals, and philosophies.

Answer: c

Diff: 2

Type: MC

Page Reference: 99

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

37) Which part of the strategic planning process focuses on the internal strengths and weaknesses of a company?

a. establishing the corporate purpose

Incorrect: A SWOT analysis helps management to assess the company’s own strengths and weaknesses as well.

b. operational planning

Incorrect: A SWOT analysis helps management to assess the company’s own strengths and weaknesses as well.

c. performing a SWOT analysis

Correct: A SWOT analysis helps management to assess the company’s own strengths and weaknesses as well.

d. tactical planning

Incorrect: A SWOT analysis helps management to assess the company’s own strengths and weaknesses as well.

Answer: c

Diff: 1

Type: MC

Page Reference: 101

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

38) When conducting a SWOT analysis, identify an internal element that management must consider.

a. the company’s competitors

Incorrect: In evaluating the company’s strengths and weaknesses, management must analyze the company’s internal resources, including finances, human resources, marketing, operations, and technological resources.

b. the company’s employees

Correct: In evaluating the company’s strengths and weaknesses, management must analyze the company’s internal resources, including finances, human resources, marketing, operations, and technological resources.

c. the growth of the industry

d. the stock market

Answer: b

Diff: 2

Type: MC

Page Reference: 101

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

39) Define the term SWOT as it applies to management’s tool for situational analysis.

a. strengths, weaknesses, opportunities, and threats

Correct: This situational analysis of strengths, weaknesses, and anticipated changes is called a SWOT analysis.

b. strengths, weaknesses, outcomes, and threats

Incorrect: This situational analysis of strengths, weaknesses, and anticipated changes is called a SWOT analysis.

c. successes, weaknesses, obligations, and threats

Incorrect: This situational analysis of strengths, weaknesses, and anticipated changes is called a SWOT analysis.

d. successes, weaknesses, opportunities, and threats

Incorrect: This situational analysis of strengths, weaknesses, and anticipated changes is called a SWOT analysis.

Answer: a

Diff: 1

Type: MC

Page Reference: 101

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

40) Which of the following is considered to be one of the internal resources of a company?

a. demographics

b. mineral resources

c. marketing

d. outsourcing

Answer: c

Diff: 2

Type: MC

Page Reference: 101

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

41) When performing a SWOT analysis, one of the following must be analyzed.

a. company’s values

Incorrect: Once the company’s vision and mission statement have been articulated, management must assess the company’s own strengths and weaknesses as well as its position among its competitors.

b. mission statement

c. company’s vision

d. company’s strengths and weaknesses

Correct: Once the company’s vision and mission statement have been articulated, management must assess the company’s own strengths and weaknesses as well as its position among its competitors.

Answer: d

Diff: 2

Type: MC

Page Reference: 101

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

42) Which of these statements is TRUE about tactical planning?

a. Tactical planning is only done occasionally.

Incorrect: Tactical plans are generated to carry out the specific goals determined by the strategic plan.

b. Tactical planning focuses on specific goals.

Correct: Tactical plans are generated to carry out the specific goals determined by the strategic plan.

c. Tactical planning has a long-term horizon.

Incorrect: Tactical plans are generated to carry out the specific goals determined by the strategic plan.

d. Tactical planning is done only by executive officers.

Incorrect: Tactical plans are generated to carry out the specific goals determined by the strategic plan.

Answer: b

Diff: 1

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

43) What is the usual time period allotted for implementing tactical plans?

a. 1 to 3 years

Correct: Whereas strategic plans have a long-term focus, tactical plans are made with a one- to three-year horizon in mind.

b. 4 to 6 years

Incorrect: Whereas strategic plans have a long-term focus, tactical plans are made with a one- to three-year horizon in mind.

c. 5 to 10 years

Incorrect: Whereas strategic plans have a long-term focus, tactical plans are made with a one- to three-year horizon in mind.

d. 10 to 20 years

Incorrect: Whereas strategic plans have a long-term focus, tactical plans are made with a one- to three-year horizon in mind.

Answer: a

Diff: 1

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

44) Which level of management is in charge of tactical planning?

a. board of directors

Incorrect: Middle management generates tactical plans to carry out the goals determined by the strategic plan.

b. executive officers

Incorrect: Middle management generates tactical plans to carry out the goals determined by the strategic plan.

c. middle managers

Correct: Middle management generates tactical plans to carry out the goals determined by the strategic plan.

d. first-line managers

Incorrect: Middle management generates tactical plans to carry out the goals determined by the strategic plan.

Answer: c

Diff: 1

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

45) Which of the following sections of a company portfolio is usually drawn during tactical planning?

a. mission-vision

Incorrect: Determining the company’s annual budget, for example, is one function of a tactical plan.

b. long-term goals

Incorrect: Determining the company’s annual budget, for example, is one function of a tactical plan.

c. philosophy

Incorrect: Determining the company’s annual budget, for example, is one function of a tactical plan.

d. annual budget

Correct: Determining the company’s annual budget, for example, is one function of a tactical plan.

Answer: d

Diff: 2

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

46) Operational plans ________ about how the company will carry out its tactical plans.

a. plan the objectives

Incorrect: Operational plans determine the process by which tactical plans can be achieved.

b. consider the goals

Incorrect: Operational plans determine the process by which tactical plans can be achieved.

c. are the specific details

Correct: Operational plans determine the process by which tactical plans can be achieved.

d. motivate employees

Incorrect: Operational plans determine the process by which tactical plans can be achieved.

Answer: c

Diff: 1

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

47) Identify which of these statements accurately describes the role of operational planning.

a. Operational planning puts the company’s specific goals into action.

Correct: Operational plans are derived in order for a company to carry out its tactical plans.

b. Operational planning draws up specific goals for the company’s first year.

Incorrect: Operational plans are derived in order for a company to carry out its tactical plans.

c. Operational planning helps employees develop time management skills.

Incorrect: Operational plans are derived in order for a company to carry out its tactical plans.

d. Operational planning develops a vision for the company.

Incorrect: Operational plans are derived in order for a company to carry out its tactical plans.

Answer: a

Diff: 2

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

48) Which level of management is in charge of operational planning?

a. board of directors

Incorrect: First-line managers carry out operational planning.

b. executive officers

Incorrect: First-line managers carry out operational planning.

c. mid-level executives

Incorrect: First-line managers carry out operational planning.

d. first-line managers

Correct: First-line managers carry out operational planning.

Answer: d

Diff: 1

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

49) After completing a SWOT analysis, a company should _____________.

a. analyze the strengths and weaknesses of the company

Incorrect: Tactical and operational planning are two methods that companies use to carry out plans, assuming there are no external factors affecting the business.

b. form tactical and operational plans

Correct: Tactical and operational planning are two methods that companies use to carry out plans, assuming there are no external factors affecting the business.

c. change from a vertical to a horizontal organizational structure

Incorrect: Tactical and operational planning are two methods that companies use to carry out plans, assuming there are no external factors affecting the business.

d. implement its operational plans

Incorrect: Tactical and operational planning are two methods that companies use to carry out plans, assuming there are no external factors affecting the business.

Answer: b

Diff: 1

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

50) Which of the following aspects of running the business would be thoroughly discussed during operational planning?

a. annual budget

Incorrect: Operational plans depend on daily or weekly schedules and focus on specific departments or employees.

b. code of ethics

Incorrect: Operational plans depend on daily or weekly schedules and focus on specific departments or employees.

c. weekly output

Correct: Operational plans depend on daily or weekly schedules and focus on specific departments or employees.

d. year-end reports

Incorrect: Operational plans depend on daily or weekly schedules and focus on specific departments or employees.

Answer: c

Diff: 2

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

51) Which of the following falls directly under the responsibility of first-line managers?

a. annual budget allocation

Incorrect: In an operational plan, first-line managers precisely determine the process by which tactical plans can be achieved.

b. yearly plan of activities

Incorrect: In an operational plan, first-line managers precisely determine the process by which tactical plans can be achieved.

c. annual quota results

Incorrect: In an operational plan, first-line managers precisely determine the process by which tactical plans can be achieved.

d. weekly departmental budget

Correct: In an operational plan, first-line managers precisely determine the process by which tactical plans can be achieved.

Answer: d

Diff: 2

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

52) __________ is(are) considered in detail in operational planning but not in tactical planning.

a. The weekly product quota

Correct: Operational plans depend on daily or weekly schedules and focus on specific departments or employees.

b. The annual department budget

Incorrect: Operational plans depend on daily or weekly schedules and focus on specific departments or employees.

c. The wages of employees

Incorrect: Operational plans depend on daily or weekly schedules and focus on specific departments or employees.

d. Shipping and storage expenses

Incorrect: Operational plans depend on daily or weekly schedules and focus on specific departments or employees.

Answer: a

Diff: 3

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

53) Operational planning focuses on _____________.

a. objectives independent of tactical objectives

Incorrect: The specifics of carrying out tactical plans are operational plans.

b. implementing tactical plans

Correct: The specifics of carrying out tactical plans are operational plans.

c. helping a company reach long-term goals

Incorrect: The specifics of carrying out tactical plans are operational plans.

d. what to do in the event of an emergency

Incorrect: The specifics of carrying out tactical plans are operational plans.

Answer: b

Diff: 1

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

54) Calicow, a milk bottle manufacturing company, has recently received complaints about chipped milk bottles and sour milk from the latest batch of its products. Deeply concerned, the management has called the floor managers and quality assurance supervisors from the affected departments for an important planning session. Describe the type of management planning that would BEST fit this situation.

a. strategic planning

Incorrect: The company has to study its operations for the latest batch of product; hence, it should conduct operational planning.

b. tactical planning

Incorrect: The company has to study its operations for the latest batch of product; hence, it should conduct operational planning.

c. operational planning

Correct: The company has to study its operations for the latest batch of product; hence, it should conduct operational planning.

d. contingency planning

Incorrect: The company has to study its operations for the latest batch of product; hence, it should conduct operational planning.

Answer: c

Diff: 3

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

55) Identify the type of planning that considers unique situations that may disrupt the company’s work structure.

a. strategic planning

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

b. contingency planning

Correct: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

c. operational planning

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

d. tactical planning

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

Answer: b

Diff: 2

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

56) Jacqueline and Ned are brainstorming ideas about how the company would react if a virus shut down their computer networks. Identify the type of planning for this scenario.

a. strategic

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

b. tactical

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

c. contingency

Correct: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

d. operational

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

Answer: c

Diff: 3

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

57) Identify when a company should use a contingency plan.

a. when a competitor threatens a takeover

Correct: Contingency planning involves determining what departments within the company are vital to the immediate needs of the organization when an unexpected crisis occurs.

b. when executive officers use all their sick leave

Incorrect: Contingency planning involves determining what departments within the company are vital to the immediate needs of the organization when an unexpected crisis occurs.

c. when several departments meet their quotas

Incorrect: Contingency planning involves determining what departments within the company are vital to the immediate needs of the organization when an unexpected crisis occurs.

d. when employees ask for overtime pay

Incorrect: Contingency planning involves determining what departments within the company are vital to the immediate needs of the organization when an unexpected crisis occurs.

Answer: a

Diff: 2

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

58) Identify the situation that requires contingency planning from the following cases.

a. A hurricane destroys expensive company equipment and facilities.

Correct: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

b. The company chief executive officer goes on annual vacation.

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

c. The human resource department prepares for the company’s anniversary.

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

d. Some people in the company are asking for a promotion.

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption.

Answer: a

Diff: 3

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

59) Select one option among the following that is directly involved in tests or drills of contingency plans.

a. competing firms

Incorrect: Like fire drills in school, companies should periodically review and rehearse their plans. A company could conduct mock disaster drills together with municipal, provincial, and federal authorities.

b. families of employees

c. investors Group

d. municipal, provincial, and federal authorities

Correct: Like fire drills in school, companies should periodically review and rehearse their plans. A company could conduct mock disaster drills together with municipal, provincial, and federal authorities.

Answer: d

Diff: 2

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

60) Describe how a company’s contingency plan should handle external communications during a crisis.

a. The company should set up a system of information dissemination to address all concerned parties.

Correct: Externally, an organization must have a plan in place to deal with requests for information either from employees, the families of employees, or even the media.

b. Top-level executives should give information on a need-to-know basis upon their discretion.

Incorrect: Externally, an organization must have a plan in place to deal with requests for information either from employees, the families of employees, or even the media.

c. The local authorities and media should disseminate all information.

Incorrect: Externally, an organization must have a plan in place to deal with requests for information either from employees, the families of employees, or even the media.

d. The company should rely on individual employees to notify their own friends and relatives.

Incorrect: Externally, an organization must have a plan in place to deal with requests for information either from employees, the families of employees, or even the media.

Answer: a

Diff: 3

Type: MC

Page Reference: 103

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

61) Camel Clothiers is a small clothing manufacturer. Its best-selling product, camel felt boots, has recently gained the attention of animal rights activists. As a result, its monthly sales revenue has dropped by 50 percent. Several years ago, the chief executive officer and top-level executives developed a plan about what they would do if this situation would occur. Identify the type of plan the company developed.

a. a strategic plan

Incorrect: The bulk of revenue comes from the best-selling product, camel felt boots, so the whole company would face a crisis if this product were withdrawn from the market. Therefore, the company made a contingency plan to deal with this situation.

b. a tactical plan

c. an operational plan

d. a contingency plan

Correct: The bulk of revenue comes from the best-selling product, camel felt boots, so the whole company would face a crisis if this product were withdrawn from the market. Therefore, the company made a contingency plan to deal with this situation.

Answer: d

Diff: 3

Type: MC

Page Reference: 102-103

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

62) Green Grocers used to deliver vegetables from farms that use pesticide sprays. Some managers, however, want to steer the company in a new direction: they want the company to distribute only organically grown vegetables. Top management has gathered to discuss this issue and create a plan for the company’s future. Determine the type of plan they will create.

a. a strategic plan

Correct: The company has to overhaul its mission-vision and restructure itself. It also has to amend its long-term goals to accommodate the new direction it wishes to take. These are all part of strategic planning.

b. a tactical plan

Incorrect: The company has to overhaul its mission-vision and restructure itself. It also has to amend its long-term goals to accommodate the new direction it wishes to take. These are all part of strategic planning.

c. an operational plan

d. a contingency plan

Answer: a

Diff: 3

Type: MC

Page Reference: 162

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

63) Off-the-Rack is a small retail clothing company that has a small but loyal customer base. The management is looking at several options to expand its market range to attract more customers. It has called its top-level and mid-level executives for an important planning session. Describe the type of management planning that would BEST fit this situation.

a. strategic planning

Incorrect: Middle managers or department heads are the people to call for this kind of situation where the company’s budget is involved and a major (but specific) endeavour is being suggested. Tactical planning involves forming specific goals to address the company’s long-term objectives. Successful advertising is one such specific goal.

b. tactical planning

Correct: Middle managers or department heads are the people to call for this kind of situation where the company’s budget is involved and a major (but specific) endeavour is being suggested. Tactical planning involves forming specific goals to address the company’s long-term objectives. Successful advertising is one such specific goal.

c. operational planning

d. contingency planning

Answer: b

Diff: 3

Type: MC

Page Reference: 98

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

64) Just Knot It! is a start-up company that manufactures boating equipment. Because hurricanes often hit the bay where the company’s boats dock, the owner of the company has called his employees to an important planning session to discuss what would be done if the company’s boats were destroyed in a hurricane. Identify the type of management planning that would BEST describe this situation.

a. strategic planning

Incorrect: In case of an unexpected crisis such as a hurricane, business develops a contingency plan to address the issue before it is realized. In this case, the company will create a contingency to deal with the possibility of a destructive hurricane.

b. tactical planning

c. operational planning

d. contingency planning

Correct: In case of an unexpected crisis such as a hurricane, business develops a contingency plan to address the issue before it is realized. In this case, the company will create a contingency to deal with the possibility of a destructive hurricane.

Answer: d

Diff: 3

Type: MC

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

65) Once goals have been finalized and plans have been made, what is the next step in the management process?.

a. Conduct a SWOT analysis

Incorrect: Once goals have been finalized and plans have been made, the next step in the management process is to put those plans into action.

b. Put the plans into action.

Correct: Once goals have been finalized and plans have been made, the next step in the management process is to put those plans into action.

c. Establish a purpose.

Incorrect: Once goals have been finalized and plans have been made, the next step in the management process is to put those plans into action.

d. Create a contingency plan.

Incorrect: Once goals have been finalized and plans have been made, the next step in the management process is to put those plans into action.

Answer: b

Diff: 1

Type: MC

Page Reference: 103

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

66) The hierarchical structure of management can be illustrated as a(n) _____________.

a. organizational chart

Incorrect: The hierarchical structure of management is shown as a traditional vertically structured managerial pyramid.

b. managerial ladder

Incorrect: The hierarchical structure of management is shown as a traditional vertically structured managerial pyramid.

c. managerial pyramid

Correct: The hierarchical structure of management is shown as a traditional vertically structured managerial pyramid.

d. organizational graph

Incorrect: The hierarchical structure of management is shown as a traditional vertically structured managerial pyramid.

Answer: c

Diff: 1

Type: MC

Page Reference: 103-104

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

67) On the managerial pyramid, one of the following positions is an example of middle managers.

a. supervisor

Incorrect: Middle managers are responsible for the tactical planning and creating more specific plans that coordinate with the strategic vision set by the top managers.

b. department head

Incorrect: Middle managers are responsible for the tactical planning and creating more specific plans that coordinate with the strategic vision set by the top managers.

c. executive vice-president

Incorrect: Middle managers are responsible for the tactical planning and creating more specific plans that coordinate with the strategic vision set by the top managers.

d. marketing manager

Correct: Middle managers are responsible for the tactical planning and creating more specific plans that coordinate with the strategic vision set by the top managers.

Answer: d

Diff: 2

Type: MC

Page Reference: 104

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

68) Supervisors and department heads are both examples of _____________.

a. top managers

Incorrect: First-line managers carry out operational planning activities and fill a supervisory role such as supervisor and department head. They have control over those employees who carry out the day-to-day operations of the company.

b. chief executive managers

c. middle managers

d. first-line managers

Correct: First-line managers carry out operational planning activities and fill a supervisory role such as supervisor and department head. They have control over those employees who carry out the day-to-day operations of the company.

Answer: d

Diff: 1

Type: MC

Page Reference: 104

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

69) ________ report to top managers.

a. Junior managers

Incorrect: Middle-level managers can be thought of as top managers for only one division or a part of an organization; they report to top managers.

b. First-line managers

Incorrect: Middle-level managers can be thought of as top managers for only one division or a part of an organization; they report to top managers.

c. Middle-level managers

Correct: Middle-level managers can be thought of as top managers for only one division or a part of an organization; they report to top managers.

d. Second-line managers

Incorrect: Middle-level managers can be thought of as top managers for only one division or a part of an organization; they report to top managers.

Answer: c

Diff: 1

Type: MC

Page Reference: 104

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

70) Lance is a first-line manager at a telemarketing company. He allocates resources, creates an organizational structure, and recruits and places employees. Identify one of the following functions of management that BEST describes what Lance does.

a. planning

Incorrect: Organizing is the process of structuring the capital, personnel, raw materials, and other resources to carry out the plans in a way that best matches the nature of the work.

b. organizing

Correct: Organizing is the process of structuring the capital, personnel, raw materials, and other resources to carry out the plans in a way that best matches the nature of the work.

c. controlling

Incorrect: Organizing is the process of structuring the capital, personnel, raw materials, and other resources to carry out the plans in a way that best matches the nature of the work.

d. leading

Incorrect: Organizing is the process of structuring the capital, personnel, raw materials, and other resources to carry out the plans in a way that best matches the nature of the work.

Answer: b

Diff: 3

Type: MC

Page Reference: 103

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

71) Middle managers are responsible for _____________.

a. strategic planning

Incorrect: Middle managers are responsible for tactical planning and creating more specific plans that coordinate with the strategic vision set by the top managers.

b. operational planning

Incorrect: Middle managers are responsible for tactical planning and creating more specific plans that coordinate with the strategic vision set by the top managers.

c. long-term planning

Incorrect: Middle managers are responsible for tactical planning and creating more specific plans that coordinate with the strategic vision set by the top managers.

d. tactical planning

Correct: Middle managers are responsible for tactical planning and creating more specific plans that coordinate with the strategic vision set by the top managers.

Answer: d

Diff: 2

Type: MC

Page Reference: 104

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

72) Sam supervises the employees who carry out the day-to-day operations of a leather company. He is MOST likely a _____________.

a. top manager

Incorrect: First-line managers fill a supervisory role over those employees who carry out the day-to-day operations of the company.

b. resource manager

Incorrect: First-line managers fill a supervisory role over those employees who carry out the day-to-day operations of the company.

c. first-line manager

Correct: First-line managers fill a supervisory role over those employees who carry out the day-to-day operations of the company.

d. middle manager

Incorrect: First-line managers fill a supervisory role over those employees who carry out the day-to-day operations of the company.

Answer: c

Diff: 3

Type: MC

Page Reference: 104

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

73) An organizational chart shows how groups of ________ fit into the larger organizational structure.

a. investors

Incorrect: An organizational chart shows how groups of employees fit into the larger organizational structure.

b. employees

Correct: An organizational chart shows how groups of employees fit into the larger organizational structure.

c. clients

Incorrect: An organizational chart shows how groups of employees fit into the larger organizational structure.

d. suppliers

Incorrect: An organizational chart shows how groups of employees fit into the larger organizational structure.

Answer: b

Diff: 1

Type: MC

Page Reference: 104-105

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

74) What does an organizational chart show?

a. the work schedule of each employee

Incorrect: To accomplish many tasks at the same time, organizations must have some division of labour and allocate work into smaller tasks. An organizational chart shows how groups of employees fit into the larger organizational structure.

b. the complete history of the business

c. the division of labour within a company

Correct: To accomplish many tasks at the same time, organizations must have some division of labour and allocate work into smaller tasks. An organizational chart shows how groups of employees fit into the larger organizational structure.

d. the promotions and reshuffling of employees

Answer: c

Diff: 1

Type: MC

Page Reference: 104-105

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

75) A vertical organization is also called a(n) _____________.

a. flat organization

Incorrect: In a vertical organization (or tall organization), the company is organized by specific function, such as marketing, finance, purchasing, information technology, and

human resources.

b. tall organization

Correct: In a vertical organization (or tall organization), the company is organized by specific function, such as marketing, finance, purchasing, information technology, and

human resources.

c. upright institution

Incorrect: In a vertical organization (or tall organization), the company is organized by specific function, such as marketing, finance, purchasing, information technology, and

human resources.

d. high institution

Incorrect: In a vertical organization (or tall organization), the company is organized by specific function, such as marketing, finance, purchasing, information technology, and

human resources.

Answer: b

Diff: 1

Type: MC

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

76) What makes it difficult for a vertical organization to respond quickly to changes in the market?

a. the differences in opinion among managers

Incorrect: Vertical organization usually calls for long lines of communication and “reporting up.” This makes it difficult for a company to respond quickly to changes in a market or to provide new innovation because keeping each division updated means spending time doing so.

b. the complex organizational structure

c. the long lines of communication and “reporting up”

Correct: Vertical organization usually calls for long lines of communication and “reporting up.” This makes it difficult for a company to respond quickly to changes in a market or to provide new innovation because keeping each division updated means spending time doing so.

d. the absence of specific marketing guidelines

Answer: c

Diff: 2

Type: MC

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

77) The organizational structure of most businesses is _____________.

a. vertical

Correct: Vertical organization has been the primary structure of business since the Industrial Revolution.

b. flat

Incorrect: Vertical organization has been the primary structure of business since the Industrial Revolution.

c. horizontal

Incorrect: Vertical organization has been the primary structure of business since the Industrial Revolution.

d. network

Incorrect: Vertical organization has been the primary structure of business since the Industrial Revolution.

Answer: a

Diff: 1

Type: MC

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

78) The benefit of a horizontal organization is that _____________.

a. the teams all contain high levels of management

Incorrect: The benefit of a horizontal organization is that each team has more responsibility for the outcome of its work. There are fewer layers of management, so fewer reporting issues arise.

b. the teams work together

Incorrect: The benefit of a horizontal organization is that each team has more responsibility for the outcome of its work. There are fewer layers of management, so fewer reporting issues arise.

c. each team has less responsibility

Incorrect: The benefit of a horizontal organization is that each team has more responsibility for the outcome of its work. There are fewer layers of management, so fewer reporting issues arise.

d. each team has more responsibility

Correct: The benefit of a horizontal organization is that each team has more responsibility for the outcome of its work. There are fewer layers of management, so fewer reporting issues arise.

Answer: d

Diff: 3

Type: MC

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

79) When companies grow, they often restructure from ________ organizations to ________ ones.

a. vertical; horizontal

Correct: Occasionally, when companies have grown so large that the variety of product lines, geographic regions, or manufacturing processes can be difficult to manage, they restructure from a vertical organization to a horizontal one.

b. horizontal; vertical

Incorrect: Occasionally, when companies have grown so large that the variety of product lines, geographic regions, or manufacturing processes can be difficult to manage, they restructure from a vertical organization to a horizontal one.

c. vertical; network

d. horizontal; network

Answer: a

Diff: 1

Type: MC

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

80) A democratic style of leadership often requires _____________.

a. employees

Incorrect: Because democratic leaders delegate authority and involve employees in decision making, this style of leadership requires more time and advanced planning.

b. creative ideas

Incorrect: Because democratic leaders delegate authority and involve employees in decision making, this style of leadership requires more time and advanced planning.

c. advanced planning

Correct: Because democratic leaders delegate authority and involve employees in decision making, this style of leadership requires more time and advanced planning.

d. capital

Incorrect: Because democratic leaders delegate authority and involve employees in decision making, this style of leadership requires more time and advanced planning.

Answer: c

Diff: 2

Type: MC

Page Reference: 108

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

81) Which of the following types of leaders is advisory in style, encouraging employees to contribute ideas and is best used in teams?

a. democratic

Incorrect: Affiliative (or laissez-faire) leaders are more advisory in style, encouraging employees to contribute ideas rather than specifically directing their tasks. This style of leadership is often best used with groups and teams.

b. affliliative

Correct: Affiliative (or laissez-faire) leaders are more advisory in style, encouraging employees to contribute ideas rather than specifically directing their tasks. This style of leadership is often best used with groups and teams.

c. contingency

d. visionary

Answer: b

Diff: 1

Type: MC

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

82) Businesses that use contingency leadership do so because they recognize the importance of being _____________.

a. influential

Incorrect: No one style of leadership will work in every situation. In reality, managers recognize that they need to be flexible and use whatever style works best for the particular situation.

b. democratic

Incorrect: No one style of leadership will work in every situation. In reality, managers recognize that they need to be flexible and use whatever style works best for the particular situation.

c. flexible

Correct: No one style of leadership will work in every situation. In reality, managers recognize that they need to be flexible and use whatever style works best for the particular situation.

d. communicative

Incorrect: No one style of leadership will work in every situation. In reality, managers recognize that they need to be flexible and use whatever style works best for the particular situation.

Answer: c

Diff: 1

Type: MC

Page Reference: 110

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

83) When managers make sure that people are performing their tasks appropriately, they are engaging in which management function?

a. planning

Incorrect: Controlling is the process that ensures that the plans and strategies set in place by management are properly carried out. Controlling helps to identify and correct weaknesses and errors in the system.

b. controlling

Correct: Controlling is the process that ensures that the plans and strategies set in place by management are properly carried out. Controlling helps to identify and correct weaknesses and errors in the system.

c. checking

d. evaluating

Answer: b

Diff: 2

Type: MC

Page Reference: 111

Objective: 5.7 Explain the importance of control within a business.

84) ________ is the process that ensures that the plans and strategies set in place by management are properly carried out.

a. Controlling

b. Directing

c. Organizing

d. Planning

Answer: a

Diff: 1

Type: MC

Page Reference: 111

Objective: 5.7 Explain the importance of control within a business.

85) Which of the following types of leaders is are able to inspire others, believe in their own vision, and move people toward a shared dream?

a. democratic

Incorrect: Visionary leaders are able to inspire others,believe in their own vision, and move people toward a shared dream.

b. affliliative

Incorrect: Visionary leaders are able to inspire others,believe in their own vision, and move people toward a shared dream.c. contingency

Incorrect: Visionary leaders are able to inspire others,believe in their own vision, and move people toward a shared dream.

d. visionary

Correct: Visionary leaders are able to inspire others,believe in their own vision, and move people toward a shared dream.

Answer: d

Diff: 1

Type: MC

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

86) Which of the following styles of leadership maintains the highest degree of control and studiously monitors employees?

a. Laissez-faire

Incorrect: Autocratic leaders have a “Do as I say” approach, maintain tight controls and monitors employees studiously.

b. Affiliative

Incorrect: Autocratic leaders have a “Do as I say” approach, maintain tight controls and monitors employees studiously.

c. Autocratic

Correct: Autocratic leaders have a “Do as I say” approach, maintain tight controls and monitors employees studiously.

d. Democratic

Incorrect: Autocratic leaders have a “Do as I say” approach, maintain tight controls and monitors employees studiously.

Answer: c

Diff: 2

Type: MC

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

87) Which famed management researcher and author noted that “management is doing things right; leadership is doing the right things”?

a. Abraham Maslow

Incorrect: Famed management researcher and author Peter Drucker once noted that “management is doing things right; leadership is doing the right things.”

b. Steven Covey

Incorrect: Famed management researcher and author Peter Drucker once noted that “management is doing things right; leadership is doing the right things.”

c. Peter Drucker

Correct: Famed management researcher and author Peter Drucker once noted that “management is doing things right; leadership is doing the right things.”

d. James Belbin

Incorrect: Famed management researcher and author Peter Drucker once noted that “management is doing things right; leadership is doing the right things.”

Answer: c

Diff: 1

Type: MC

Page Reference: 107

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

88) Which of the following leadership styles is characterized by empathy and the ability to solve conflicts?

a. democratic

Incorrect: Features of affiliative leadership include the ability to promote harmony, be emphatic, boost morale, and solve conflicts.

b. visionary

Incorrect: Features of affiliative leadership include the ability to promote harmony, be emphatic, boost morale, and solve conflicts.

c. commanding

Incorrect: Features of affiliative leadership include the ability to promote harmony, be emphatic, boost morale, and solve conflicts.

d. affiliative

Correct: Features of affiliative leadership include the ability to promote harmony, be emphatic, boost morale, and solve conflicts.

Answer: d

Diff: 1

Type: MC

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

89) Affiliative leaders create harmony by connecting workers to ___________.

a. the company’s goals

Incorrect: The style of affiliative leaders is to create harmony by connecting workers to one another.

b. one another

Correct: The style of affiliative leaders is to create harmony by connecting workers to one another.

c. their wants

Incorrect: The style of affiliative leaders is to create harmony by connecting workers to one another.

d. specific tasks

Incorrect: The style of affiliative leaders is to create harmony by connecting workers to one another.

Answer: b

Diff: 1

Type: MC

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

90) It is BEST to use the ________ leadership style to heal rifts in a team.

a. affiliative

Correct: Affiliative leadership concentrates on having employees create personal relationships within the workplace. So, if there were any arguments or distance between employees, an affiliative leader would promote harmony and understanding in the group.

b. autocratic

Incorrect: Affiliative leadership concentrates on having employees create personal relationships within the workplace. So, if there were any arguments or distance between employees, an affiliative leader would promote harmony and understanding in the group.

c. visionary

d. democratic

Answer: a

Diff: 2

Type: MC

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

91) ) To build buy-in or consensus, or to get valuable input from employees, it is BEST to use the ________ leadership style.

a. visionary

Incorrect: The democratic leadership style concentrates on getting a general consensus on policy so that everyone’s opinion is taken into account when issues come up. So, a democratic leader would want his or her team’s valuable input when making decisions.

b. affiliative

c. laissez-faire

d. democratic

Correct: The democratic leadership style concentrates on getting a general consensus on policy so that everyone’s opinion is taken into account when issues come up. So, a democratic leader would want his or her team’s valuable input when making decisions.

Answer: d

Diff: 2

Type: MC

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

92) ________ is an integrated approach to measuring the quality of products or services from the beginning phase of the production process to the end.

a. Quality control

Incorrect: Total quality management is an integrated approach focusing on quality from the beginning of the production process up through managerial involvement to detect and correct problems.

b. Total quality management

Correct: Total quality management is an integrated approach focusing on quality from the beginning of the production process up through managerial involvement to detect and correct problems.

c. Six Sigma

Incorrect: Total quality management is an integrated approach focusing on quality from the beginning of the production process up through managerial involvement to detect and correct problems.

d. Damage minimization

Incorrect: Total quality management is an integrated approach focusing on quality from the beginning of the production process up through managerial involvement to detect and correct problems.

Answer: b

Diff: 1

Type: MC

Page Reference: 111

Objective: 5.7 Explain the importance of control within a business.

93) Identify the goal of total quality management (TQM).

a. to produce goods in the cheapest, fastest way

Incorrect: In addition to meeting financial, production, and sales measures, another measure of performance is quality so that the products or services the company provides meet or exceed customer requirements.

b. to produce goods or services that are innovative and unique

c. to produce goods that meet or exceed customer requirements

Correct: In addition to meeting financial, production, and sales measures, another measure of performance is quality so that the products or services the company provides meet or exceed customer requirements.

d. to produce goods that will earn the company the most money

Answer: c

Diff: 1

Type: MC

Page Reference: 111

Objective: 5.7 Explain the importance of control within a business.

94) To achieve Six Sigma, a business must not allow more than:

a. 3.4 defects per thousand opportunities.

Incorrect: Six Sigma is a statistically based, proactive, long-term process designed to look at the overall business process to prevent problems. To achieve the Six Sigma standard, a business must not allow more than 3.4 defects per million opportunities.

b. 3.4 defects per million opportunities.

Correct: Six Sigma is a statistically based, proactive, long-term process designed to look at the overall business process to prevent problems. To achieve the Six Sigma standard, a business must not allow more than 3.4 defects per million opportunities.

c. 0.1 percent defects per thousand opportunities.

d. 0.5 percent defects per million opportunities.

Answer: b

Diff: 3

Type: MC

Page Reference: 111

Objective: 5.7 Explain the importance of control within a business.

95) Mac-Wan is a family restaurant business that has recently decided to advertise in the local paper to pull in more customers. The owners anticipate that the ads will increase their revenue by 10 percent. After they put their ad in the paper, recommend what they should do next.

a. measure the company’s previous performance levels

Incorrect: Re-evaluating performance standards is part of a control system cycle that companies use to measure performance. It allows the company to measure the plans it has set to carry out the goals of the organization.

b. re-evaluate performance standards of the restaurant

Correct: Re-evaluating performance standards is part of a control system cycle that companies use to measure performance. It allows the company to measure the plans it has set to carry out the goals of the organization.

c. set new performance standards for the company

d. make adjustments to current performance standards

Answer: b

Diff: 3

Type: MC

Page Reference: 111

Objective: 5.7 Explain the importance of control within a business.

96) Managers achieve goals by working with people both inside and outside the organization.

a. True

Correct: Managers achieve goals working with people both inside and outside the organization, so it’s important that they possess good interpersonal or human relations skills.

b. False

Incorrect: Managers achieve goals working with people both inside and outside the organization, so it’s important that they possess good interpersonal or human relations skills.

Answer: a

Diff: 1

Type: TF

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

97) Although managerial tasks are varied, a successful manager only needs to become skilled at time management.

a. True

Incorrect: A successful manager needs to possess a variety of skills because managerial tasks are so varied. They must also assess the skills that are required in any given situation.

b. False

Correct: A successful manager needs to possess a variety of skills because managerial tasks are so varied. They must also assess the skills that are required in any given situation.

Answer: b

Diff: 2

Type: TF

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

98) Conceptual skills refer to the ability to think abstractly, picture the organization as a whole, and understand its relationship to the rest of the business community.

a. True

Correct: Such skills also include understanding the relationships between the parts of the organization itself.

b. False

Incorrect: Such skills also include understanding the relationships between the parts of the organization itself.

Answer: a

Diff: 2

Type: TF

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

99) A manager does not need to possess decision-making skills, but they will allow him to relate better to his employees.

a. True

Incorrect: The ability to make decisions is one of the most critical skills required of a manager. This skill allows a manager to identify problems, examine alternatives, choose the best plan of action, and evaluate results.

b. False

Correct: The ability to make decisions is one of the most critical skills required of a manager. This skill allows a manager to identify problems, examine alternatives, choose the best plan of action, and evaluate results.

Answer: b

Diff: 2

Type: TF

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

100) Many times the best routes to fix a problem are missed because management has not taken the time to explore all alternatives thoroughly.

a. True

Correct: Once a manager has generated alternatives to fix a problem, he or she must evaluate all of these alternatives before implementing a plan of action. This process can be long and tedious, but a thorough examination is required in order to achieve the best results.

b. False

Incorrect: Once a manager has generated alternatives to fix a problem, he or she must evaluate all of these alternatives before implementing a plan of action. This process can be long and tedious, but a thorough examination is required in order to achieve the best results.

Answer: a

Diff: 2

Type: TF

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

101) Having technical, conceptual, decision-making, and interpersonal skills is enough to manage a successful business.

a. True

Incorrect: A manager may possess all the skills—technical, conceptual, decision-making, and interpersonal skills—but that may not be enough to manage a successful business.

b. False

Correct: A manager may possess all the skills—technical, conceptual, decision-making, and interpersonal skills—but that may not be enough to manage a successful business.

Answer: b

Diff: 1

Type: TF

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

102) Conceptual skills require that managers be able to recognize specific ways in which they can make every task or situation productive.

a. True

Incorrect: Time management skills require that managers have the ability to recognize specific ways in which they can make every task or situation productive.

b. False

Correct: Time management skills require that managers have the ability to recognize specific ways in which they can make every task or situation productive.

Answer: b

Diff: 1

Type: TF

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

103) Creating folders to store e-mails usually shows good time-management skills.

a. True

Correct: To manage e-mail effectively, managers should filter spam to a specific folder and create other folders based on subject.

b. False

Incorrect: To manage e-mail effectively, managers should filter spam to a specific folder and create other folders based on subject.

Answer: a

Diff: 2

Type: TF

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

104) Managers should separate paperwork according to due date and clearly label each pile.

a. True

Correct: Time management skills refer to the ability to achieve the maximum amount of productivity in a set amount of time.

b. False

Incorrect: Time management skills refer to the ability to achieve the maximum amount of productivity in a set amount of time.

Answer: a

Diff: 2

Type: TF

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

105) Planning is the process of establishing goals and objectives and determining the best ways to accomplish them.

a. True

Correct: In today’s busy world, it’s easy to get distracted. Goals and plans help to keep you on task. Planning helps to establish goals and objectives, and also assists with best options to accomplish them.

b. False

Incorrect: In today’s busy world, it’s easy to get distracted. Goals and plans help to keep you on task. Planning helps to establish goals and objectives, and also assists with best options to accomplish them.

Answer: a

Diff: 1

Type: TF

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

106) Goals are broad, long-term accomplishments that an organization wants to achieve in about a five-year time frame.

a. True

Correct: In today’s busy world, it’s easy to get distracted. Goals and plans help to keep you on task. Goals are broad, long-term accomplishments an organization wants to achieve within a certain period—in most companies, this is about five years.

b. False

Incorrect: In today’s busy world, it’s easy to get distracted. Goals and plans help to keep you on task. Goals are broad, long-term accomplishments an organization wants to achieve within a certain period—in most companies, this is about five years.

Answer: a

Diff: 1

Type: TF

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

107) It is important that both goals and objectives are set with deadlines.

a. True

Correct: Both goals and objectives are best set with deadlines and quantifiable measures.

b. False

Incorrect: Both goals and objectives are best set with deadlines and quantifiable measures.

Answer: a

Diff: 2

Type: TF

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

108) The overall strategic plan is focused on the entire organization or an entire department.

a. True

Correct: A strategic plan is the main course of action created by top-level managers that sets the approach for achieving the long-term goals and objectives of the entire organization.

b. False

Incorrect: A strategic plan is the main course of action created by top-level managers that sets the approach for achieving the long-term goals and objectives of the entire organization.

Answer: a

Diff: 2

Type: TF

Page Reference: 98

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

109) A corporate vision is a current description of an organization’s purpose, basic goals, and philosophies.

a. True

Incorrect: A vision identifies what the business wants to be in the future. The vision should be made clear to all employees and people investing in the company.

b. False

Correct: A vision identifies what the business wants to be in the future. The vision should be made clear to all employees and people investing in the company.

Answer: b

Diff: 2

Type: TF

Page Reference: 99

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

110) After defining a mission and vision statement, companies often define core values

or principles.

a. True

Correct: Core values are the fundamental beliefs about what is important and appropriate when conducting company activities that affect a company’s overall planning processes and operations.

b. False

Incorrect: Core values are the fundamental beliefs about what is important and appropriate when conducting company activities that affect a company’s overall planning processes and operations.

Answer: a

Diff: 2

Type: TF

Page Reference: 100

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

111) An economic recession merits a contingency plan, especially for small businesses.

a. True

Correct: Contingency planning involves determining what departments within the company are vital to the immediate needs of the organization when an unexpected crisis occurs. The particulars of each plan differ depending on the size and function of the company and the magnitude of crisis for which the plan is needed.

b. False

Incorrect: Contingency planning involves determining what departments within the company are vital to the immediate needs of the organization when an unexpected crisis occurs. The particulars of each plan differ depending on the size and function of the company and the magnitude of crisis for which the plan is needed.

Answer: a

Diff: 2

Type: TF

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

112) Unexpected disruptions in operations are rare in major corporations, making contingency planning unnecessary.

a. True

b. False

Answer: b

Diff: 2

Type: TF

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

113) Contingency planning involves determining what departments within a company are vital to the immediate needs of the organization when an unexpected crisis occurs.

a. True

Correct: The particulars of each plan differ depending on the size and function of a company and the magnitude of the crisis the plan is needed for.

b. False

Incorrect: The particulars of each plan differ depending on the size and function of a company and the magnitude of the crisis the plan is needed for.

Answer: a

Diff: 1

Type: TF

Page Reference: 103

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

114) Contingency plans are only put into action during unexpected natural disasters like bad weather, fire, earthquake, or death.

a. True

Incorrect: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during any unexpected disruption.

b. False

Correct: Contingency planning is a set of plans that ensures that the organization will run as smoothly as possible during any unexpected disruption.

Answer: b

Diff: 2

Type: TF

Page Reference: 102-103

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

115) Managing is the process of structuring the capital, personnel, raw materials, and other resources to carry out the plans in a way that best matches the nature of the work.

a. True

Incorrect: Organizing is the process of structuring all of the resources needed to carry out the plans in a way that best matches the nature of the work.

b. False

Correct: Organizing is the process of structuring all of the resources needed to carry out the plans in a way that best matches the nature of the work.

Answer: b

Diff: 2

Type: TF

Page Reference: 103

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

116) Organizational structure depends on a variety of factors, such as the number of employees in the organization, the speed at which decisions need to be made, the subjectivity of the business to rapid change, and the collaborative nature of the work.

a. True

Correct: Establishing an organizational structure is part of the function of organizing.

b. False

Incorrect: Establishing an organizational structure is part of the function of organizing.

Answer: a

Diff: 3

Type: TF

Page Reference: 103

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

117) An organizational chart shows how groups of consumers fit together in a company’s marketing goals.

a. True

Incorrect: An organizational chart shows how groups of employees fit into the larger organizational structure.

b. False

Correct: An organizational chart shows how groups of employees fit into the larger organizational structure.

Answer: b

Diff: 1

Type: TF

Page Reference: 104

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

118) Most companies have a horizontal structure of management.

a. True

Incorrect: Vertical organization has been the primary structure of business since the Industrial Revolution. Vertical structures have been criticized as being overspecialized, fragmented, and inflexible.

b. False

Correct: Vertical organization has been the primary structure of business since the Industrial Revolution. Vertical structures have been criticized as being overspecialized, fragmented, and inflexible.

Answer: b

Diff: 1

Type: TF

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

119) Horizontal organization usually calls for long lines of communication and “reporting up.”

a. True

Incorrect: Vertical organization usually calls for long lines of communication and “reporting up.”

b. False

Correct: Vertical organization usually calls for long lines of communication and “reporting up.”

Answer: b

Diff: 1

Type: TF

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

120) Because it is difficult to integrate between a company’s functions and its divisions, vertical organizational structures have been criticized.

a. True

Correct: Although vertical organization has been the primary business structure since the Industrial Revolution, in the early 1990s, these structures were criticized as being overspecialized, fragmented, and inflexible.

b. False

Incorrect: Although vertical organization has been the primary business structure since the Industrial Revolution, in the early 1990s, these structures were criticized as being overspecialized, fragmented, and inflexible.

Answer: a

Diff: 2

Type: TF

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

121) Network organizations are multi-function firms that collaborate on a product or service

a. True

Incorrect: Network organizations are collections of independent, mostly single-function firms that collaborate on a product or service.

b. False

Correct: Network organizations are collections of independent, mostly single-function firms that collaborate on a product or service.

Answer: b

Diff: 2

Type: TF

Page Reference: 106

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

122) A democratic leader takes a more “hands-off” approach to managing employees.

a. True

Incorrect: Laissez-faire leaders (or free-reign leaders) are more advisory in style.

b. False

Correct: Laissez-faire leaders (or free-reign leaders) are more advisory in style.

Answer: b

Diff: 2

Type: TF

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

123) Laissez-faire leaders act more as consultants rather than as participants.

a. True

Correct: Laissez-faire leaders are more advisory in style, encouraging employees to contribute ideas rather than specifically directing their tasks.

b. False

Incorrect: Laissez-faire leaders are more advisory in style, encouraging employees to contribute ideas rather than specifically directing their tasks.

Answer: a

Diff: 1

Type: TF

Page Reference: 108-109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

124) Leaders have the confidence to overcome inevitable obstacles and to make tough decisions despite uncertainty.

a. True

Correct: A leader’s confidence promotes calm in stressful situations.

b. False

Incorrect: A leader’s confidence promotes calm in stressful situations.

Answer: a

Diff: 1

Type: TF

Page Reference: 108

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

125) Measuring performance is vital to running even a small business.

a. True

Correct: To manage any business and ensure that the goals are being met, managers measure performance in a variety of ways.

b. False

Incorrect: To manage any business and ensure that the goals are being met, managers measure performance in a variety of ways.

Answer: a

Diff: 2

Type: TF

Page Reference: 111

Objective: 5.7 Explain the importance of control within a business.

126) Elizabeth worked in a data encoding company for several years before becoming a supervisor in a general transcription firm. From her own experience, she knows that transcriptionists are often stressed by deadlines and the poor quality of audio files. Therefore, she closely monitors her employees’ work but understands when they have to decline a bad file. Describe the managerial skills that are shown in this situation.

Answer:

Both technical and interpersonal skills are shown in this situation. Elizabeth has first-hand knowledge of the process involved in transcription, so she realizes the need to motivate the workers and to recognize the limitation of both the files and the employees.

Feedback: Technical skills include abilities and knowledge that enables an employee to carry out the specific tasks required of the discipline or department. Interpersonal skills involve good human relations. Motivating employees to carry out their work is an important aspect of interpersonal skills.

Diff: 2

Type: ES

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

127) George constantly evaluates how his manufacturing company can better address the environmental concerns of the community in which the factory is based. Explain how he is showing that he possesses conceptual skills.

Answer:

A manager demonstrates conceptual skills when he or she is able to picture the organization as a whole and understand its relationship to the rest of the community. George is clearly aware of the company’s responsibility to the community because he understands the community’s concerns about the environment.

Feedback: Conceptual skills involve understanding an organization’s internal relationships—between parts of the organization—as well as its external relationships with the community.

Diff: 2

Type: ES

Page Reference: 96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

128) When John sets up a meeting, it usually either finishes early because the staff forgets to discuss some important issues, or it ends late because staff is debating issues that suddenly arise during the meeting. Propose what John should do to avoid wasting time and to ensure that important matters are discussed during staff meetings.

Answer:

To better manage time, John should inform every staff member of the meeting’s agenda before it begins. This way, everyone is prepared and focused on the matters to be discussed. Other trivial matters are eliminated, so the meeting ends on time.

Feedback: Part of effective time management is identifying clear agendas for meetings. With a clear agenda, the people involved are conscious of the goals to be achieved during the meeting.

Diff: 3

Type: ES

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

129) In order to increase sales, Natural Juice plans to promote its products in parks by distributing free samples to potential customers. What type of planning is this? Explain your answer.

Answer:

This is a tactical plan on the part of management. Part of a tactical plan is to determine what to do to carry out the strategic plan, which in this case is probably to increase sales.

Feedback: A tactical plan determines resources and actions necessary to implement a strategic plan. It applies to a short time frame, usually 1 to 3 years.

Diff: 2

Type: ES

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

130) In order to increase sales, Natural Juice plans to promote its products in parks by distributing free samples to potential customers. If you were a first-line manager of Natural Juice, outline the details you would include in your operational plan.

Answer:

I would include strategic areas for distribution, volume of free juice samples, and schedules of distribution.

Feedback: An operational plan determines the process required to execute the tactical plans.

Diff: 3

Type: ES

Page Reference: 102

Objective: 5.3 Describe the implications of tactical plans, operational plans, and contingency plans within the context of management.

131) Vicky wants to open a small travel agency with two of her friends. List the factors she and her friends should consider as they organize their company.

Answer:

They should consider the number of people they will employ, the division of labour, and accountability in terms of decision-making.

Feedback: Organizational structure depends on several factors, including number of employees, speed at which decisions need to be made, the subjectivity of the business to rapid change, and the collaborative nature of the work.

Diff: 2

Type: ES

Page Reference: 103

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

132) As the manager of the sales division, Robert regularly reports to the chief executive officer and vice president to update them on the status of tactical plans. Indicate the layer of the managerial pyramid Robert would be in. Why?

Answer:

In the managerial pyramid, Robert is a middle manager because he is accountable to the top managers of his company (the chief executive officer and the vice president). Also, middle managers are usually responsible for tactical planning.

Feedback: Middle managers are heads of a division who answer to the top managers of the company. They are responsible for tactical planning, which leads to more specific plans that help the company achieve the strategic plans set by the top managers.

Diff: 2

Type: ES

Page Reference: 104

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

133) A good leader is a person of action and inspiration. Discuss the five qualities of effective leadership.

Answer:

Good leaders are persons of action because whenever appropriate they challenge the conventional beliefs and practices of the organization. They also model the best way of doing things. Good leaders are sources of inspiration because they inspire a shared vision and encourage the people around them. They also enable their subordinates to act by giving them access to information that is necessary to perform their tasks.

Feedback: The best leaders are those who challenge the process, model the way, inspire a shared vision, encourage the heart, and enable others to act.

Diff: 2

Type: ES

Page Reference: 107

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

134) Jane works in a big organization with several departments that have special functions. She works in the human resource department and is in charge of hiring new personnel. Under her are several individuals who report to her, and she in turn reports to the head of the human resource department. Classify Jane’s organization as vertical or horizontal. Explain your classification.

Answer:

Jane’s organization has a vertical structure because it has several layers. The employees who report to Jane are at least three steps removed from the top managers, and they all fulfill related functions.

Feedback: Organizations with vertical or tall organizational structures are organized by specific functions and levels of expertise. Vertical organizations also have longer lines of communication.

Diff: 2

Type: ES

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

135) Let’s suppose you start a small company with fewer than 10 employees. As your company grows, you employ more workers and need to expand beyond your current location. Determine some changes that will most likely take place in your organizational structure.

Answer:

As more workers are employed, there might be a need to create positions for supervisors, department heads, or other team managers with specialties.

Feedback: Smaller start-up companies often have simpler organizational structures. However, as a company grows, additional employees, refined division of labour, and specialization will most likely be necessary. This would call for changes in the company’s organizational structure.

Diff: 3

Type: ES

Page Reference: 105

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

136) As the owner of a spa facility, Katya hired a manager to oversee the daily operations of the spa and delegated the financial management of the business to a trusted employee. She keeps herself instantly available to her staff through mobile communication. Explain Katya’s type of leadership.

Answer:

Katya’s leadership style is laissez-faire because she acts more as a consultant rather than as an active participant.

Feedback: Laissez-faire is a leadership style in which leaders do not take a hands-on approach. It is also called free-reign leadership because employees or team members are given wider responsibilities and room for experimentation.

Diff: 2

Type: ES

Page Reference: 109

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

137) Discuss when it is appropriate to use am affiliative leadership style.

Answer:

The affiliative leadership style is appropriate when there are conflicts in a team and certain rifts need to be healed. It is also appropriate to use this style to motivate employees during stressful times and to strengthen connections within the team.

Feedback: Table 5.1 on page 109 summarizes the four basic leadership styles.

Diff: 2

Type: ES

Page Reference: 109, Table 5.1

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

138) Describe the leadership characteristics of an autocratic leader.

Answer:

• Commands—”Do it because I say so”

• Threatens

• Has tight control

• Monitors studiously

• Creates dissonance

• Contaminates everyone’s mood

• Drives away talent

Feedback: Feedback: Table 5.1 on page 109 summarizes the four basic leadership styles.

Diff: 2

Type: ES

Page Reference: 109, Table 5.1

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

139) To increase public awareness and generate support, companies often use the media and the Internet to share their vision or mission statement. Cite an example of how a nonprofit organization used a vision or mission statement to keep the organization on task.

Answer:

The Canadian Cancer Society’s mission statement states “The Canadian Cancer Society is a national, community-based organization of volunteers whose mission is the eradication of cancer and the enhancement of the quality of life of people with cancer.” This statement reflects the organization’s commitment to serving the community.

Both the vision and mission statement are usually posted on an organization’s website. However, because the mission statement is directed toward customers—unlike the vision, which is directed toward employees—it is often used alone on advertising materials or on the actual product.

Feedback: The mission statement states the organization’s purpose, basic goals, and philosophies.

Diff: 3

Type: ES

Page Reference: 100

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

140) A trend in business nowadays is business process outsourcing. Business process outsourcing is the process of hiring another company to perform functions that are traditionally part of a company’s business operation. Compare outsourcing with network organizations.

Answer:

Major companies outsource their business process by hiring other companies to process their financial administration, human resources requirements, and customer service. In this setup, the organizations involved are the company in need of outside service and the service provider. The service provider collaborates with the original company in providing a service. Network organizations are collections of independent firms that collaborate on a product or service. Therefore, business process outsourcing is an example of network organization.

Feedback: Outsourcing occurs when a company contracts with an outside firm to handle a specific part of its business activities, while network organizations are collections of independent, mostly single-function firms that collaborate on a product or service.

Diff: 3

Type: ES

Page Reference: 106

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

141) You are a top manager of a traditional vertical organization whose main business concern is quick delivery of services. You have observed that your competitors are shifting from the vertical setup to the more responsive horizontal setup. Describe how you would convince your peers in top management that it is time for you to make the same shift as well.

Answer:

I would tell them that our competitors are gaining an edge because they have reorganized to deliver a faster, more reliable service to their demanding market. A traditional vertical organization has several layers, which means longer lines of communication. This could mean waiting for a longer period before critical decisions are made. By the time we have made a decision, our competitors have already served their customers satisfactorily and are already busy laying the grounds for another branch. A horizontal setup with fewer layers will facilitate the decision-making process and faster delivery of services.

Feedback: In a horizontal organization (or flat organization), the traditional managerial pyramid is flattened and the management layers are collapsed. The benefit of a horizontal organization is that each team has more responsibility for the outcome of its work.

Diff: 3

Type: ES

Page Reference: 105

Objective: 5.5 Distinguish among vertical organizations, horizontal organizations, and network organizations.

142) In addition to the five traits of effective leadership, describe any other trait you think is necessary when a leader is faced with adversity. Why?

Answer:

All of the five leadership traits are crucial and, when taken together, can prove to be helpful to a leader’s success. But in the face of adversity, determination can push a leader to achieve a breakthrough. Leaders who are determined don’t give up easily and are even more driven to look for solutions to persistent problems. A determined leader will not be stopped by obstacles. Instead, obstacles will give him or her more energy to succeed.

Feedback: In addition to the five traits of effective leadership, most leadership analysts agree that good leaders share several other traits. Some other traits include determination, inspiration, flexibility and empathy, innovativeness, honesty, self-confidence, knowledge, and competence.

Diff: 3

Type: ES

Page Reference: 107-108

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

143) Successful managers possess a variety of skills. Briefly outline these skills.

Answer:

Successful managers are equipped with the following skills such as technical, interpersonal, conceptual, decision-making, and time management skills.

Feedback: Managers often have these skills, but there is no master of all skills. Therefore, managers need to be willing to acquire any skills they are weak at through training and education.

Diff: 2

Type: ES

Page Reference: 95-96

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

144) Describe the five steps involved in the decision-making process.

Answer:

These following steps are often necessary when making important decisions in business:

Identify problems.

Generate alternative solutions.

Evaluate the alternatives.

Choose and implement a plan of action.

Evaluate the decision.

Feedback: It is critical that a manager has good problem-solving and decision-making skills—the ability to identify and analyze a problem, examine the alternatives, choose and implement the best plan of action, and evaluate the results.

Diff: 2

Type: ES

Page Reference: 96, Figure 5.1

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

145) Your friend has just been recently promoted to the top management team. He confided in you that he has problem dealing with his multiple commitments and family life. Make up a set of steps for him to manage his time more efficiently.

Answer:

This new manager needs to follow the following steps in his daily activities:

Determine the level of urgency of paperwork.

Create folders for e-mail.

Designate a time for telephone calls.

Identify clear agendas for meetings.

Feedback: If a manager could follow the above steps, he will find out that his productivity levels will increase. He will also have more time freed for completing other tasks required of the job and enhance his family life.

Diff: 2

Type: ES

Page Reference: 97

Objective: 5.1 Describe the ways managers apply technical, interpersonal, decision-making, conceptual, and time management skills to business.

146) Discuss the four primary functions of management.

Answer:

Management functions are categorized into these four areas—planning, organizing, leading, and controlling.

Planning refers to the process of establishing goals and objectives, and determining ways to accomplish them.

Organizing refers to process of allocating resources, creating an organizational structure, and recruiting and placing employees in the organization.

Leading has to do with guiding and motivating employees, achieving results, reaching milestones, and maintaining the organization’s visions or goals.

Controlling refers to the process of measuring results against goals, monitoring performance, correcting when necessary, and rewarding.

Feedback: All these functions are important for the growth of any organizations. The four primary functions integrate all of the company’s resources, including human, financial, and technological.

Diff: 2

Type: ES

Page Reference: 98, Figure 5.2

Objective: 5.2 Explain how corporate vision and mission statements help to keep the company focused on achieving its goals and objectives.

147) A local company in your hometown is taking stock of its businesses over the past five years. You have been hired as an intern to help the management determine if the company has the means to fulfill its mission. Explain what you would do and provide reasons for your actions as an intern working on this task.

Answer:

I would start by examining the company’s vision and mission statement. The next step is to assess the company’s strengths and weaknesses as well as its position among its competitors using SWOT analysis.

SWOT analysis would help management determine the strategic fit between an organization’s internal, distinctive capabilities, and external possibilities relative to the business and economic environments.

Feedback: It is essential that SWOT analysis be performed to evaluate the company’s strengths and weaknesses. Management needs to analyze the company’s internal resources, including finances, human resources, marketing, operations, and technological resources.

Diff: 2

Type: ES

Page Reference: 101

Objective: 5.4 Explain the significance of organizing and how most organizations are organized.

148) Distinguish between a leader and a manager based on their portfolios.

Answer:

A leader is someone who has the ability to influence, motivate, and enable others to contribute to the success and effectiveness of the organization by achieving its goals.

Managers are task-oriented and focus on process and control, whereas leaders realize the importance of guiding and inspiring others to help accomplish a task.

Feedback: Managers and leaders are not the same, though it is important for a manager to strive to be both a leader and a manager. All managers are not necessarily good leaders.

Diff: 2

Type: ES

Page Reference: 107

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

149) What are the traits of a good leader?

Answer:

A good leader possesses some of these traits:

Determination

Inspiration

Flexibility and empathy

Innovativeness

Honesty

Self-confidence

Knowledge and competence

Feedback: For effective leadership, a leader needs to display most of these traits, not necessarily all of them.

Diff: 2

Type: ES

Page Reference: 108

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

150) Classify the different leadership styles.

Answer:

The leadership styles are categorized into four as follows:

Democratic

Autocratic

Laissez-faire or free-reign

Contingency

Feedback: Leadership styles often depend on forces in today’s business environment, and management may need to respond to different situations in different ways. For example, Apple has autocratic leadership and Google has laissez-faire or free-reign leadership.

Diff: 2

Type: ES

Page Reference: 108

Objective: 5.6 Describe what makes a good leader and the various styles of leadership.

Solomon: Better Business, Second Canadian Edition

Chapter 5: Business Management

Better Business Canadian 2nd Edition by Solomon – Test Bank

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