MGT103 FULL » 97 ngubihge trong Ingty qua # 48 (31 dénh gis) Tauat ngir trong hoc phan nay (893) E) Divestment 2) Which of the (cowie A) Increasing overhead production costs (C) Making management decisions independently of tne organization's extemal environment 1) Using the majority ofr promotion activ ) Using micromana MGTIO3 FULL3) Amanagement process Is considered to be 5 effective when ‘A) overhead production costs are increased. B) the right decisions are made and implemented ) decisions are made independently of the organization's extemal environment D) the same amount of resources are allocated fo all the functions ofthe organization. E) the organization is highly centralized 4) One ofthe titles found inthe group of midale E managers is A)director B) vice president ©) supervisor D) office manager E) plant manager MGTIO3 FULL5) Which ofthe following statements 's true about top managers? |A) They are the largest group of managers in most organizations, 8) They officially ropresent ther organization to the extemal environment. ) They primary oversee the day-to-day operations of an organization. ) They supervise and coordinate the activities of firstline managers. ) They supervise ane coordinate the activites of operating employees. £6) Which of the folowing is the role of top managers in an organization?” A) Overseeing dayto-day operations 8) Performing routine administrative tasks CC) Implementing plans offrst-ine managers, 1) Creating organizational goals and overall strategy ) Coordinating the work of frstine managers MGTIO3 FULL7)____make decisions about actives such as investing in research and development (R&D) and entering or abandoning various markets. ‘A) Division heads 8) Limited partners ©) Firstiine managers D) Middle managers E) Top managers 8) Acommon midale-management tle is A) chief executive officer. B) division head, } supervisor D) office manager. E) coordinator. 9)___are probably the largest group of managers in most organizations, and are primarily responsible for implementing the policies and plans of an organization, A) Middle managers 8B) Top managers ) The members of board of directors D) Firstine managers E) Floor supervisors MGTIO3 FULL410) Firstline managers: Ajare primarily responsible for implementing the policies and plans developed by top managers. 8B) make decisions about activities such as acquiring otner companies, ©) officially represent ther organization to the ‘external environment D) create organizational goals. E) handle administrative duties. 11) Which of the following statements is true about firstine managers? |A) They are primarily responsibie for Implementing policies made by top managers. B) They are typically involved in creating overall organizational strategies and goals. ) They officially represent their organization to the extemal environment. 1D) They typically spend a large proportion of their lime supervising the work of thir subordinates. ) They make decisions about activities such as acquiing other companies. MGTIO3 FULL12) ___ involves selecting a course of action e {rom a set of ateratves. A) Divesting B) Controing ©) Leading D) Decision making E) Job deskiling 13) One ofthe titles found in the group of frstine ° managers is___ A chief executive officer 8) coordinator C) division head D) general manager E) plant superintendent 14) Determining how company’s acivies and . resources are to be grouped is called Aleading B) controling ©) deskiling D) planning E) organizing MGTIO3 FULL16) yler works with Alpha Pharmaceuticals Inc. He is primarily responsible for overseeing production activites. Tyleris concerned with decisions such as the number of product units that need to be manufactured, the overall functioning ofthe production plants, and the quality of products. Tyler is most likely to be a(n)_ ‘A) operations manager 8) marketing manager Cc) human resource manager D) sales manager E) public relations manager 16) Typical responsibilities of operations managers include: A inventory contro. B) sales promotion ©) accounting ) employee development E) beneft systems development 17) nits simplest form, __ means setting an organization's goals and deciding how best to achieve ther, A) coordinating 8) destiling ©) organizing MGTIO3 FULL18) Which ofthe following would be included in the management function of planning? |A) Selecting the course of action most likely to lead to-success 8) Monitoring progress toward the achievement of goals CC) Motivating others to higher levels of achievement 1D) Communicating company policies to subordinates E) Organizing people and resources 19) __work in areas like new product development, promotion, and distribution, A) Human resource managers 8) Marketing managers ©) Plant managers ) Operations managers E) Finance managers MGTIO3 FULL20) __are typically involved in recruiting and selecting employees, training and development designing compensation and benefit systems, {formulating performance appraisal systems, and discharging low-performing and problem employees. A) Operations managers 8B) Human resource managers ©) Plant managers 1D) Marketing managers E) Finance managers 21)__work at getting consumers and clients to buy the organization's products or services, A) Operations managers 8) Marketing managers ©) Regional managers D) Financial managers E) Human resources managers 22)___ are concemed with creating anc ‘managing the systems that create an organization's products and services. A) Marketing managers 8) Human resources managers ©) Financial managers ) Operations managers MGTIO3 FULL23)__are not associated with any particular management specially A) Office managers 8) Floor supervisors ©) Puble relations managers ) Operations managers ) Administrative managers 24)___ is the set of processes used to get members of an organization to work together to further the intorsts ofthe organization A) Panning 8) Organizing ©) Controting D) Leading E) Desking 25) The final phase of the management process is at Involves monitoring the organization's progress toward its goals. A\planning 8) organizing ©} leading D) controling E) destiling MGTIO3 FULL26) The management function of leading involves: AA) setting an organization's goals. 8) motivating and influencing others. ©) grouping activites and resources. D) interacting with the external business E) creating organizational strategies. 27) The management at Beta Corp. has introduced new employment policies. The mangers are now ‘tacking and monitoring the implementation ofthe new policies. Which ofthe folowing management functions is ilustrated in the scenario? A) Desking ) Controlling ©) Organizing D) Leading ) Planning 28) The skills necessary to accomplish or Understand the specific kind of work done in an organization are called stil. A) diagnostic 8) ime management ©) conceptual D) technical E) spatial MGTIO3 FULL29) ___ skills refer tothe ables of managers to thinkin the abstract, understand the overall workings of the organization and its environment, to grasp how all the parts of the organization ft together, and to view the organization in a halistc ‘A) Time management 8B) Technical ©) Conceptual D) Interpersonal ) Communication 30) Technical sil: ‘Ajare crucial for top managers more than any ‘other managers. 8) are nonspecific and broad. CC) depend on a manager's abit t thik in the abstract. D) are especially important for frst-line managers. E) are used the most when making organizational policies, MGTIO3 FULL31) When a manager answers a subordinate's question regarding the process of creating a report {rom raw data, heis relying on his___skils. A)abstract 8) technical ©) time management D) decision-making E) spatial 32) The ably to motivate others is a(n)__ kl A) conceptual 8) technical ) communication D) interpersonal E) diagnostic 33) Winston is often intimidated and uncomfortable with his superiors. Winston needs to develop his skis to be able to communicate easly with his superiors A) time management 8) spatial ©) interpersonal D) conceptual E) diagnostic. MGTIO3 FULL34) Maria, a manager, studied the performances of the various business units of her organization. After making an assessment, Maria came to the conclusion that the overall costs ofthe organization can be reduced by integrating the functions of two ofthe business units, This scenario ilustrates Maria's skis. A) tectnioal 8) ime management ©) socal D) interpersonal E) conceptual 35)___skils refer tothe abiltes of managers to visualize the most appropriate response to a situation, A) Social B) Interpersonal ©) Technical D) Diagnoste ) Communication MGTIO3 FULL36) _skils reer to a managers abilities to bot effectively convey ideas and information to others and effectively receive ideas and information rom others, A) Technical 8B) Abstract ©) Communication D) Diagnostic E) Conceptual 37) When a manager writes a mall o a supplier apologizing fora delay in payment, he is most likely fo be using his_ ski. A) conceptual 8) technical ) communication D) abstract E) spatial 38) Saran, a manager, has postponed the task of preparing a report as she has realized that she needs to meet a supplier immediately. This scenario ilustrates Sarah's skis. A) conceptual 8) spatial ©) time management D) technical MGTIO3 FULL38) Jordon, a manager, realizes that many ‘employees are leaving the organization. He identifies inconvenient work timings and some of the new employment policies as the causes. Jordon decides to introduce better policies and flexible work timings to reduce employee turnover. This scenario ilustrales Jordon's___ skis. A) mechanical 8) technical ©) diagnostic D) spatial ) ime management 40)__refer to a manager's ability to prioritize work, to work efficiently, and to delegate work appropriately. A) Diagnostic sls 8B) Commanding skis ©) Decision-making skill ) Time-management skis E) Conceptual skis, MGTIO3 FULL41) Amanager who uses the scientific approach to management when making decisions is most ikely rely on: A) inatinets, 8) stereotypes. ) personal experience. D) intuition. E) Logic. 42)A___is a conceptual framework for organizing knowledge and providing a blueprint for action. Ajclassic 'B) mnemonic ©) prediction D) theory E) doctrine 43) When employees deliberately work ala slower pace than their capabilites, itis caled_. A) Soldiering 8) persevering ©) controling D) planning E) deceiving MGTIO3 FULL44) Scientific management focuses on: A) improving the efficiency of individual workers 8) increasing employee tumover. ©) analyzing the extemal rather than the internal environment of an organization 1) encouraging soldiering among employees. E) increasing overhead costs. 45) Lilian Glbreth was one of the earliest advocates of {A) the contingency theory. B) scientific management. C) administrative management, D) theory X and ¥. E) the Hawthome studies. 46) The fist person to identify the managerial functions of planning, organizing, leading, and controling was: A) Elton Mayo 8) Lilian Gitreth ©) Henri Fayol ) Hugo Munsterberg ) Mary Parker Follett. MGTIO3 FULL47) Which ofthe folowing focuses on the management of the enti firm as opposed to the jobs of individual workers? A) The Contingency theory 8) Scientiie management ) Administrative management ) Theory X E) The Hawthorne studies 48) Which ofthe following statements is true of ‘administrative management? |A) It deals withthe jobs of individual employees. 8) Itwas first introduced by Frank and Lillian Gitbretn, C)It focuses solely on combating soldering D) ltencompasses the concepts of planning organizing, and controling, E) Itexclusively focuses on incvidual attitudes anc behaviors and group processes. MGTIO3 FULL49) The scientite management perspective ‘Aj assumed that workers liked their work. 8) focused on the overall management of an organization rather than ineivdual employees. CC) emphasized the importance of supervising workers. D) was based on the assumption that workers are intemally motivated to achieve organizational goals. E) placed maximum emphasis on individual attitudes and behaviors 50) Which of the folowing statements is rue about the behavioral management perspective? A) It was fist introduced by Max Weber B) kt viewed jobs and organizations from @ mechanistic point of view. C) It was influenced by the industrial psychology movernent ) It essentially dealt with job specialization techniques. E) It lighted the role ofthe individual in organizations, MGTIO3 FULL51) The concept of __, suggested by Weber, is based on a rational set of guidelines for structuring organizations inthe most effclent manner. A)adhocracy 8) bureaucracy ©) technoeracy D) meritocracy E) scientocracy 52) Early advocates of the classical management perspective viewed organizations and jobs from an essentially point of view. A) Mechanistic B) behavioral ©) humanistic D) systematic E) contingent 53)___is recognized as the father of industrial psychology ‘A) Douglas McGregor 8) Elton Mayo ©) Abraham Mastow D) Hugo Munsterberg ) Henri Fayot MGTIO3 FULL54) The management pioneer who performed the Hawthome studies at Westem Electric was: ALilian Gitbreth, 8) Elton Mayo. ©) Henry Gant ) Frank Gitbrth E) Frederick Taylor. 55) in the Hawthome Studies, workers who overproduced were branded as_. A) operators 8) squeaters ©) rate busters D) chiselers E) producers 56) Which ofthe following was one of the ndings ofthe Hawthome studies? 'A) Workers tond to underperform when they are given special atention or supervision 8) Higher pay and incentives are more important to workers than social acceptance, CC) Al the workers in a group work toward achieving productivity targets set by supervisors. 1D) Both individual and social processes play a ‘major role in shaping worker behavior E) Workers in all groups tend to encourage and MGTIO3 FULL57) Which ofthe folowing is a Theory Y assumption? ‘A) Social processes do not influence the performance of workers. 8) People are not internally motivated to achieve their goals. ) People do not naturally dislike work ) People like to be directed as they want security, ) People perform better when they are threatened by the manager. 58) Which of the following assumptions is represented by Theory Y? A) People prefer to be directed, to avoid responsibilty, and to want security. 8) People are bright, but under most organizational conditions, their potential is underutilized, ©) People do not like work and ty to avoid it. 1D) The productivity of workers isnot affected by social processes atthe workplace. ) Managers need to be coercive to get work done from thelr workers. MGTIO3 FULL58) A diference between Theory X and Theory Y is that |A) Theory X makes positive assumptions. 8) Theory ¥ is consistent withthe views of ‘sciontfle management, CC) Theory ¥ assumes that people lack ambition ) Theory reprasents the assumptions made by human relations advocates. ) Theory Y assumes that people naturally cistike work. {60) A Theory ¥ assumption is that A) incentives rather than social processes influence workers £8) managers have to control, rect, coerce, and threaten employees to get them to work toward organizational goals ©) people prefer tobe directed, to avoid responsibly, and to want security they have litle ambition, D) people are committed to goals tothe degree that they receive personal rewards when thay reach thelr objectives. E) people naturally distke work and try to avoid it MGTIO3 FULL61) The _ proposed that workers respond primarily tothe social context ofthe workplace, including social condtioning, group norms, and interpersonal dynamics, ‘A) classical management perspective 88) human relations movement C) systems theory D) management science perspective E) organizational theory £62) Which ofthe following is a Theory X ‘assumption? ‘A) People will both seek and accept responsibilty. BB) Managers are harsh on their employees, ©) People have litle ambition, 1D) People are internally motivates ) People do not naturally dstike work. {63) Which ofthe following draws from psychology, sociology, anthropology, economies, and medicine? A) Organizational behavior 8) Scientiie management ©) Administrative management D) Systems perspective E) Contingency perspective MGTIO3 FULL64) When a manufacturing plant uses mathematical models to plan production and schedule equipment maintenance, itis drawing upon: ‘A)sclentifc management. 8) administrative management (C) management science. D) behavioral perspective. ) Theory X assumptions. £65) Which ofthe following represent the two branches ofthe quantitative management theory? A) Sciontiic management and administrative management 8) Human relations movement and organizational behavior ©) Contingency theory and systems theory D) Theory X and Theory ¥ EE) Management science and operations management 86) The___ perspective focuses on decision making, costeffectveness, mathematical models, and the use of computers. A) systems management B) behavioral management ©) scientifc management MGTIO3 FULL687) Which ofthe folowing statements is rue about management science? A) tis part of the classical management perspective, 8) roles on bureaucratic techniques proposed by Max Weber C)It focuses on mathematical representations of reality. D)Itis concemed with improving the performance of individual workers E) Itintroduced the plocework pay system. £68) Which ofthe following statements i true about operations management? A) tis more statistically sophisticated than management science. B) It exclusively focuses on improving employee attitudes and behavior C) ican be applied more directly to manageral situations than managemant science. D) It relies more on mathematical models than management science. E) Itcannot be applied to invantory control and production operations of an organization MGTIO3 FULL62)__ is considered to be a form of apalied management science. A) Scientife management B) Lean manufacturing ©) Behavioral management D) Human relations movement ) Operations management 70) In the context of the systems perspective, an output would be: A) technological processes. 8) labor skills C) services. D) raw materials. ) human resources. 71) In the context of the systems perspective, an input would be: A) human resources. B) losses. ©) feedback loops. D) products E) services. MGTIO3 FULL72) Relatively new management concepts such as supply chain management and new techniques such as enterprise resource planning have evolved from the _ perspective. A) quantitative management 8) systems ) contingency D) classical management .E) behavioral management 73) In the systems perspective, outputs include ‘A)raw materials B) controls ©) funds D) human resources E) employee attitudes MGTIO3 FULL74) Which of the folowing statements is rue in the ‘context ofthe systems perspective? |A) Entropy is a process that leads to system progress. 8) Products and services can be considered as system inputs. C)Aclosed systemis closely connected with and interacts with its environment 1) The performance of one subsystem does not affect the performance of another subsystem. ) Organizations essentially should be open systems. 75) _ is a normal process that leads to system decline A) Economy of scale 8) Syneray Cc) Entropy 1) Contingency E) Symbiosis 76) _ suggests that organizational units (or subsystems) may often be more successful working together than working alone. A) Divestiture ) Operations management ©) Synergy MGTIO3 FULL77) The _ suggests that appropriate managerial behavior in a given situation depends fon unique elements in a that situation ‘A) behavioral management perspective 8) quanttative management perspective ©) systems perspective D) contingency perspective E) universal perspective 78) Emilio says, “Employees and situations are Unique. Sometimes | get good results by trying one ‘approach, sometimes | decide to do something completely diferent." Emilio’ statement s best aligned with which ofthe folowing management A) The classical theory 8) Administrative management ©) The generalist perspective 1D) Theory X ) The contingency perspective 79) Inthe systems perspective, ___ emphasizes the importance of working together ina cooperative and coordinated fashion. A) synergy 8) entropy contingency MGTIO3 FULL80) A primary objective of management, from a e systems perspective, is to continually reenergize the organization fo avoid A) reciprocity 8) collaboration ©) diversity Dj entropy E) synergy 81) The _perspective states that effective « ‘managerial behavior in one situation cannot always be generalized to other situations. A) behavioral B) scientic management ) contingency ) administrative management E) systems MGTIO3 FULL£82) Which ofthe following statements is true about the contingency perspective? AA) Itstates that the organizations which are not influenced by their external environments tend to be more successful than others B) It states that effective managerial behavior in ‘one situation cannot always be generalized to other situations, C)I states that all employees tend to perform better when they ate promised higher incentives. D)It stats that the behavior of employees at work is not infuenced by social processes. E) lis @ part ofthe classical perspective of management. 83) Which of the folowing statements is rue in the context of contemporary management trends? |A) More and more organizations are using quality ‘as a basi for competition, B) The service sactor ofthe economy has steadlly dectined ) Younger people entering the workforce over the past 20 to 30 yaars are more devoted to work and more wiling to adap’ ) The emphasis on business ethics has dectined, ) The emphasis on management of diversity has declined, MGTIO3 FULL£4) Improving the quality of products and services e tends to increase Ajinertia B) entropy ©) latency D) productivity E) divestment 85) The___ perspective places emphasis on e inalvidual attitudes. A) contingency 8) systems ) quantitative management D) administrative management E) behavioral management MGTIO3 FULL41. Which ofthe following is a part of an organization's external environment? Board of directors » Physical work environment Infation 4 Organization's cuture Employees MGTIO3 FULL2. In Asia, consumers have historically had an aversion to debt. However, in recent years cred card use has growm significantly, supported by aggressive marketing to promote grow in the region. This example comprises the dimension of an organization's general b. technological 4 polticabtegal task MGTIO3 FULL3. Abusiness manufactures top-ofthe-ine cabinets. The ___ dimension ofits general environment includes computer-assisted design software that helps to convert wood and people's Idea into lovely, functional cabinets. legal » sociocultural poltical MGTIO3 FULL4.Alex, one of the proprietors of Atlas Corp. is wortied. The stock market was nat doing wel, unemployment was 10 percent, inflation was on the rise again, and government debt was sill increasing. These concems of Alex are related to the ____ dimension ofthe general environment of Alas Corp. legal b. sociocultural technological 4 poltical MGTIO3 FULL5, The set of broad dimensions and forces in an organization's surroundings that determines its overall context is called the ___ environment. task » general regulatory ethical MGTIO3 FULL6. Which ofthe following is a concem of the technological dimension of an organization's general environment? Organization's policies and practices b. Infiaton, interest rates, and unemployment ‘Tools, methods, and technology 4 Government regulations Offices, production faites, and cafeteria MGTIO3 FULL7. Acompany would begin to do business in e another county only ifthe trade relationships with that country are relatively well defined and stable. In the context of general environment, which ofthe following does this point of view reflect? Task ». Economic Technological 4 Polical-legal Competitive MGTIO3 FULL8, The__dimension ofthe general environment consists of government regulation of business and the relationship between business and government, technological task polticabtogal 4 competitive MGTIO3 FULL9, Competitors, customers, supplies, stratogle partners, and regulators make up the environment of an organization general 4 polticabtegal MGTIO3 FULL10. Eastlawn Pharmacy is a local drugstore tha has been serving the neighborhood for over 25 years. Recently, a national pharmacy chain opened one of is stores two blacks from Eastlawn, Eastiawn is experiencing a change ints task environment ». intemal environment physical work environment. 4 government regulations. organizational culture MGTIO3 FULL‘1. Which ofthe following is an accurate diference between the task environment and the general ‘The general environment is quite complex, whereas the task environment is very simple. ». The task environment provides useful information ‘more realy than the general environment. ‘The task environment deals with more abstract dimensions than the general ervironmert. 4 ‘The general environments impacts short term, whereas that ofthe task environment is long term, ‘The general environment includes compettors and regulators, wnereas that ofthe task environment Includes customers, supplier, and strategie partners MGTIO3 FULL12, Laney’s and MarketPlace ate both grocery stores. They stock similar products, and customers switch between the stores based on convenience, sale items, and other promotions. Laney's and Market strategic allies. » competitors associates. 4 regulators suppliers. MGTIO3 FULL18. Nonstop isa fee instant messaging and voice chat service that allows users to communicate with teach other, using a microphone andlor a webcam, cover the Intemet. Its popula is increasing and, as a result, the number of people using has Chatterbox, anather instant texting sen decreased. Nonstop is a___ to Chatterbox. competitor b. supple 4 strategic partner regulator MGTIO3 FULL14, Organizations organizations are known as: al provide resources to other a suppliers, » competitors regulators 4 interest groups. importers MGTIO3 FULL16, For a private college, parents of students may be considered part of the dimension of the task environment. supplier » competitor regulator 4 strategic partner MGTIO3 FULL16. Two or more companies that work together in joint ventures or other partnerships are called what? Strategic pariners » Competitors Customers 4 Suppliers Regulators MGTIO3 FULL17, __are elements ofthe task environment that have the potential to contol, legislate, oF lerwise influence an organization's policies and practices, Board members Owners Strategic pariners 4 Employees Regulators MGTIO3 FULL418, Ralph Comp. and Swan Ine. have entered into e an arrangement in which Ralph sells Swan's merchandise in its stores, and Swan promotes Ralph stores in its advertisements. In tis context, hich ofthe folowing best describes the relationship between Ralph Corp. and Swan Inc.? They are competitors. ». Ralph is Swan's supplier. ‘Swan is Ralph's supplier. 4 ‘They are strategic partners. ‘They are each customers ofthe other. MGTIO3 FULL18. Adiner received many wamings from the local e Board of Health regarding the quality ofits food The Board of Health objected tothe trans-ats used {or fying and the freshness of bread and meat used atthe diner. The Board is playing the role of a(n) ___in the restaurant's environment. competitor ». supplier 4 regulator investor MGTIO3 FULL20. Canyon LLC, a television manufacturing company, is about to launch its smart TV. The television will come with a builtin web browser by a company called Wayfarer Inc. to access Internet. Canyon is Wayfarer’s__. strategic partner » business rival franchisee 4 supplier MGTIO3 FULL21. Which of the fllowing would supply capital to a ‘ business? Employment agencies b Regulators Employees MGTIO3 FULL22. A.group organized by its members to attempt to influence organizations is known as a(n) Intorest group. » board of directors strategically. 4 competitor. ethics committee MGTIO3 FULL23. are protect the public from cerlain business practice reatod by the government to orto protec organizations from one another. et groups Boards of directors Economie councils Rogulatory ag MGTIO3 FULL24. A person who purchases stock in a company e becomes a(n) __of the company. member ofthe board of drectors » regulator MGTIO3 FULL25, Ina business, which ofthe folowing people e have legal property rights to that business? Suppliers Customers 4 Owners Regulators MGTIO3 FULL26. Acorporate performs a general oversight function without that is relatively passive getting actively involved in how the company is council of strategic partners b board of directors \whistle-blowing committee ‘economic community MGTIO3 FULL27.__are hired for short periods of time and provide greater flexibility, ean lower wages, and ten do not participate in benefts programs: Temporary workers > Regulatory agencies Interest groups 4 Strategic ales Suppliers MGTIO3 FULL28, Which of the fllowing isan element of an organization’ internal environment? Government regulations b Competitors Facilities 4 Strategic ales Technology suppliers MGTIO3 FULL29. Which ofthe folowing accurately describes the responsibilty ofa corporate board of directors? Exerting considerable infuence by using the media to cal attention to their positions b. Helping the company get the expertise they lack {rom other companies Ensuring the frm is run to best serve the stockholders interests 4 Gaining legal property rights to the business by buying stock Protecting the public from certain business practices or to protect organizations from one another MGTIO3 FULL30. The term refers to an individual's personal beliefs about whether a behavior, action, or decision is right oF wrong. > ethics 4 aesthetics, regulations MGTIO3 FULL31, Which ofthe following is tue of ethics or ical behavior? Ethies isthe same for all individual ». Organizations define ethics in the context of the incividual Organizations themselves have ethics. 4 Ethical behavior is controlled and directed according to rules made by federal agencies. Ethical behavior is behavior that conforms to generally accepted social norms MGTIO3 FULL32. The management of a company provents its ‘employees from meeting in groups of three or more. Which ofthe following would best describe these restrictions imposed by the management? Legal b Unethical Megat 4 Ethical Racist MGTIO3 FULL33.A(n)_oc¢ decision potentially benefits the individual to the rs when an employee's possible detriment ofthe organization. loss of confidence > security breach conflict of inte 4 Violation of organizational culture act of incitement MGTIO3 FULL34, Which of the fllowing terms represents a formal, written statement of the values and ethical standards that guide a firm's action? Codes of ethics » Business plan Standard operating procedures 4 Strategic plan Licensing agreement MGTIO3 FULL35. Mytle Wines, a chain of wine retailers, has prepared guidelines that clearly sp ‘employees should interact with suppliers, customers, compatitors, and other people associated with thelr business. These guidelines are documented and cistributed at all Myrtle ity how ullets. The guidelines prepared by Myre forms its business plan b. code of ethics strategic plan 4 {air trade standards, licensing agreement MGTIO3 FULL36, Ethical issues in corporate governance are e primarily the responsibly of Intorest groups. b the board of directors. federal regulatory agencies. MGTIO3 FULL37.__ isa law that requires CEOs and CFOs to vouch personally forthe truthfulness and fairness of their firms’ financial disclosures and imposes tough new measures to deter and punish corporate and accounting fraud and coruption Sarbanes-Oxley Act of 2002 ». Glass-Steagall Act of 1993 GrammLeach-Billey Act of 1998 4 Commodity Futures Modernization Act of 2000 Investment Company Act of 1940 MGTIO3 FULL38, When organizations relate to thir environments in ways that involve ethical dilemmas and decisions, these situations are said to fall within the context of the organization's responsibilty legal ethical 4 cultural financtal MGTIO3 FULL38, Some people who argue in favor of social e responsibly for businesses claim that the purpose of business in U.S. socity is to generate prof for owners. b. involvement in social programs gives businesses too much power businesses do not create problems and should not therefore help solve them 4 businesses often have the resources necessary to solve problems. there is potential for conflicts of interest among businesses, MGTIO3 FULL40. Which ofthe folowing is an accurate argument against social responsibilty for organizations? Business is nota partner in our society, unlike the goverment and the general population > Corporations are citizens in our society Profit generation forthe owners, isthe purpose of business in US. society. 4 Business does not create problems and should therefore not try to solve them. Business lacks the resources needed to solve social programs, MGTIO3 FULLa“ Is the extent to which the organization e conforms to local, state, federal, and international laws. Technological compliance > Philanthropic giving Ethical compliance 4 Legal compliance Risk management MGTIO3 FULL42, Which ofthe folowing actions represents an attempt to manage social responsibility through ethical compliance? Requiring top financial managers to ensure compliance with securities and banking regulations ». Donating money to fund the performing arts Creating a committee to review policies. selection of new hires and promotion of employees ‘cerning 4 Consulting the legal department ragarding the requirements ofa particular law Making human resource managers responsible for complying with the Equal Employment Opportunity Commission (EEOC) standards MGTIO3 FULL43. Which ofthe folowing about the ethical compliance of an organization is true? Itis a formal dimension of managing social responsibilty », Itcannot be enhanced by providing training. Itincludes awarding of funds or gifts to charities or ter warty causes. 4 Itis used to circumvent thelr legal obligations. Itcannot be imposed by developing guidelines and codes of conduct. MGTIO3 FULL44, Development of guidelines and codes of e conduct is one of the most common ways through which an organization ensures risk management > technological specification. philanthropic giving, 4 ethical compliance. expor restraint agreements MGTIO3 FULL45, Which ofthe following is an informal organizational dimension of managing social responsibilty? Licensing » Philanthropic giving Legal compliance Organizational cuture MGTIO3 FULL46. Soft Bites, a factory that makes breads, has e asked alts retailers to return the loaves that have not been sold til the last date of expiry It then donates all these loaves to shelters forthe poor and the homeless, This act of Soft Bites can be termed as corporate ging. b. legal compliance. ethical compliance. 4 philanthropic giving, apprentice sponsoring MGTIO3 FULL47, ___is an employee's disclosure of illegal or unethical conduct by others within the organization. Lovoying ». Influence peddling Whisteblowing 4 Source efitczing Reconnaissance MGTIO3 FULL48. Which ofthe folowing s an advantage of licensing as an approach to internationalzation? Lack of competition b Extended profitability Lesser uncertainty 4 Flexility Shared ownership MGTIO3 FULL49, A(a)__ strategy requires small cash outlay, is heavily regulated by government, and does not require modification to products for local conditions importing > licensing joint venture offshoring MGTIO3 FULL50. Atlanta is @ German company that manufactures dishwashers in Germany. ts products are sold in the United States. Which of the folowing statements is most accurate? Allanta is exporting ils products to the United States, ». ‘Atlanta has a license agreement withthe United States, ‘Allanta is importing its products from the United States, 4 Allantia wholly owns subsidiaries ofthe frm in the United States ‘Allanta is outsourcing tothe United States. MGTIO3 FULL51. Apotental disadvantage of licensing agreements is decreased profs. ». limited proftabilty. intlexibty 4 home production costs excessive transportation costs. MGTIO3 FULL52, Which of the following is rue of a quota in trade? Itis used most commonly to restrict trade. », Itis used to encourage strategic aliance. Itis used to increase domestic competition 4 Itis the tax breaks given by the host government, Itis a form of tax callected on imported goods. MGTIO3 FULL53. An advantage of importing and exporting is shared ownership. lack of government restrictions. low transportation costs. 4 the lack of tris and taxes. small cash out MGTIO3 FULL54. Making a product in the fms domestic marketplace and selling itn another country is known as direct investment. > exporting. joint venture 4 competing franchising. MGTIO3 FULL55. Once a licensing agra nent is agreed to, the licensee pays a(n)__in return interest b royalty remuneration tari reward MGTIO3 FULL56, Which of the following is an advantage of direct. investment? Now infrastructure b Simpl Enhanced control 4 Greater poltcal support Greater certainty MGTIO3 FULL57. Which of the following approaches to e intemationalizaton of business has the disadvantage of shared ownership? Importing » Licensing Exporting 4 Joint ventures Direct investment MGTIO3 FULL58, What are maquiladoras? Strategic alliances betwoen U.S. and Mexican companies ». Licensing agreements made between U.S. and Mexican companies Light assembly plants bult in northem Mexico close o the U.S. border 4 Convenience stores in northern Mexico fo serve the workers in the area Light assembly plants in the U.S. near the Mexican border where day workers come for dally work MGTIO3 FULL59, Basco Electic Ine, isan American company. It built two factories in Mexico, which are wholly ‘owned subsidies of Basco. Basco chose to buildin Mexico to get special concessions from the Mexican government for providing employment to the local population. The factories are an example of licensing agreements. b. franchises. 4 mergers. direct investments, MGTIO3 FULL60. Sam's Big Bites, an American chain of burger Inited States. The agreement between Sam's Big Bites and the Department of Defense is a(n) stands, operates on all military bases in t maquiladora, », licensing agreement. exporting agreement 4 importing agreement. strategic alliance, MGTIO3 FULL61. Ina(o) cooperate for mutual gain ‘wo oF mace firms jolly direct investment interest group MGTIO3 FULL62. Greater e ynic and political risks are among e the disadvantages associated with importing b exporting 4 direct investment. joint ventures. MGTIO3 FULL63. The ___ environment of an organization includes all the valu symbols, beliefs, ane language that guide behavior. general physical work 4 regulatory MGTIO3 FULL64, Which of the fllowing statements about cultural environmentis rue? ‘An employee's cultural environment is personal therefore, does not affect his profession. b. In international business, cuttural factors always cause problems for managers Cultural differences between countries can have @ direct impact on business practice. 4 Difficulties can arise when there is complete overlap between a manager's home culture and the culture of the country in which business isto be conducted Subtle cultural diferances between countries do rot have a major impact on business activities. MGTIO3 FULL85. The French government charges a 25 percent e tax on all American fruits and vegetables that are sold in France. This tax collected by French authorities is a(n) expor tart. 4 impor tart. strategic alliance, MGTIO3 FULL68. A countries voluntarily limit the volume or value of cords reached by governments in which goods they export to or impor from one another are known as_agreements, licensing expor restraint 4 strategic alliance operationalev MGTIO3 FULL67. Almonds United ne., a company that produces almonds, is based in Califomia, United States. ‘Almonds United ensures that most ofits produce is sold in the local market and net more than 20 percent is sold in the Indian markets each year This isin accordance withthe U.S. government's Voluntary limit on rade with India. Almonds United is folowing the __ exercised by the U.S. goverment franchising agreement b. direct investment strategic alliance 4 licensing agreement expor restraint agreement MGTIO3 FULL68, The government of Westeria has made it mandatory that alllocal publishers must use paper made in Westeria itself. Ths restition imposed by Westeria on is publishers isa form of “van macuiladoras" policy ». impor tart. export restraint agreement 4 “go global” strategy. “ouy national” legislation, MGTIO3 FULL69, Which of the fllowing statements about organizational culture is tue? Organizational cuture shapes the behavior of employees, and thus impacts organizational effectiveness ». Organizational cuture of an overseas franchisee Is always the same as the culture ofthe nation in which the organization's headquarters are located. Organizational cuture will necessariy be the same throughout an organizations subunits 4 Organizational culture refers tothe cultural and attistc charities that an organization supports. Organizational culture is frequently and easily changed by most organizations. MGTIO3 FULL70. An American company is in aint venture with an overseas Middle East company. The U.S. ‘managers are particular about ime management and appointments for conference calls and ‘meetings. However, their overseas Middle Eastern counterparts are not conditioned the same way and dor't necessary adhere fo schedules. This varation in time management is an aspect of their environment. legal b. cuttural technological 4 poltical MGTIO3 FULL71.A(n)__is a limit on the number or value of ‘ goods that can be traded royalty tant quota 4 thveshold (© chong ti cd mt gt cape chy gla bénsogn cho ctu handy MGTIO3 FULL72.A(n)__'s a tax collected on goods shipped across national boundaries. quota tant 4 remuneration MGTIO3 FULL73. In international trade, the___ amount i e typically designed to ensure that domestic competitors wil be able to maintain certain market shave benefaction b royalty tani quota minimum hourly wage MGTIO3 FULL74, __are, in effect, export quotas. a Export restraint agreements Export licensing agreements ice-level agreements Export tanits Strategie allance agreements MGTIO3 FULL75. _ gives preference to domestic producers through content ar price restrictions. Buy national legislation b “Go local” strategy Federal acquisition regulation 4 ‘Trade agreements legislation “Ban maquiladoras policy MGTIO3 FULL76, Which of the following statements about the European Union is rue? Itdictates the internal organizational culture, », Itis a union of observer countries that monitor the open markets to ensure that WTO rules are followed Itis the strategic alliance between a European company and an American company. 4 Ita form of labor union across Europe Itis an economic community MGTIO3 FULL77. Which of the fllowing is an agreement among the United States, Canada, and Mexico to promote trade with one another? North American Free Trade Agreement b. North Atlantic Treaty Organization General Agreement on Tariffs and Trade 4 ‘Transatlantic Free Trade Agreement World Trade Organization MGTIO3 FULL78. An international ___Is a sot of counties that agree to markedly reduce or eliminate trade barriers among member nations. commonweath » trade bloc 4 free trade area MGTIO3 FULL79, Which of the following is a determinate of an organization's culture? The extended benefits provided by an organization ». Corporate success and shared experiences ‘The regulations for work performance set by an organization 4 ‘The strategic parners of an organization ‘The products and services available forthe functioning of an organization MGTIO3 FULL80. Unicorn designs Inc. a software company, e requires its employees to wear a specific color every day ofthe week. The colors forthe woekdays are presently orange, red, green, yellow, and blue, respectively. The colors are changed {rom time to time and the employees are informed about it, The colors should be visible and could con anything, ike scarves, bags. tis, or sock. ‘According to the management, the color coding system makes the company a vibrant and fun place to work. This decision of the management affects the company’s economic dimension. » task environment, technological dimension. 4 organizational culture. polticalegal atmosphere. MGTIO3 FULL81. The __ isa trade agreement intended to e promote intemational trade by reducing trade barriers and making it easir forall nations to compete in international markets. ‘Agreement on the Applicaton of Saritary and Phytosanitary Measures (SPS) ». ‘Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) North American Free Trade Agreement (NAFTA) 4 General Agreement on Tariffs and Trade (GATT) ‘Agreement on Technical Barriers to Trade (TBT) MGTIO3 FULL82. The _ replaced the General Agreement on Tears and Trade (GATT) and absorbed its mission in 1996 European Union (EU) b. International Trade Centre (ITC) World Trade Organization (WTO) 4 United Nations Conference on Trade and Development (UNCTAD) Global System of Trade Preferences among Developing Countries (GSTP) MGTIO3 FULL83, Where does an organization's culture originate? Societal norms and expectations ». Pressure applied through mergers With the organization's founder 4 Resolution of disputes between rival factions Governmant regulation of the specific industry MGTIO3 FULL£84, Which of the fllowing is tue of the World Trade Organization (WTO)? ‘The WTO establishes impartial procedures for resolving trade disputes among its members b. The WTO requires members to limit their markets in international trade. The WTO replaced the GATT and dismissed its 4 The WTO focuses too narrowly on human rights and the environment. ‘The WTO promotes trade flows by encouraging nations to adopt preferential and flexible trade policies. MGTIO3 FULL85, Which of the fllowing is true of organizational culture? Managers are advised to maintain an organization's culture even iit has become 4ystunctional ». Corporate success and shared experiences have limited efect on organizational culture. Organizational culture is always consistent throughout each of the divisions of an organization, 4 ‘An organization's culture is not necessarily affected by the growth of rival factions within te organization. Organizational culture can be maintained by rewarding people whose behaviors are consisten withthe existing culture, MGTIO3 FULL41)An organization's _is a statement of its fundamental, unique purpose that sels a business apart from other firms of ts type and identifies the ‘scope of the business's operations in product ana market terms, A) mission 8) statement of qualification ©) article of incorporation ) operational goa! E) tactical plan 2) Nutrimax ne. identifies its purpose as “to produce the finest cookies in the world while Upholding our principles of promating good health ‘and maintaining environmental sustainability" This purpose is most likly tobe the ___ of Nutimax. A strategie goal B) distinctive competence ) mission statement D) operational goal E) tactical goal MGTIO3 FULL1) Which ofthe following statements 's true about strategic goals? A) They are set by an organization's mide managers, 8) They are set by fistine managers. CC) They provide plans for the dayeto-day ‘operations of an organization, ) They focus on broad and general issues, ) Their focus ison short-term issues 41) Strategic goals are sot by A fistline managers. B) middle managers. ©) top managers. D) stockholders. E) consumers. 1) Goals set for and by line-managers are called seals. A) strategic 8) tactical ©) developmental D) organizational E) operational MGTIO3 FULL1) Samantha is responsible for building the day-to- ‘day work schedules for her subordinates. She assigns specific tasks to her subordinates and designs activiies according tothe objectives that ‘she receives from her seniors. Samantha works on Plans. ‘A) Operational B) organizational ©) strategic D) divestiture ) tacteal 1) Which ofthe following statements true about tactical goals? |A) Their focus is on how to operationalize actions necessary to achieve strategic goals. 8) Their focus ison broad and long-term issues such as increasing the profitability ofthe ‘organization over a period of te. ) They are set for and by top managers. ) They are set for and by the board of directors ) They are broad ané nonspecific. MGTIO3 FULL1) The top managers at Redd Inc. are developing a plan to reduce the production costs of the company By reducing costs, Redd wants to gain @ compeitive advantage of cost leadership. The plan being developed inthis scenario is a(n) _ plan A)strategic B) tactical ©) operational ) contingency E) recovery 1)A(n) _goal for a waste management plant could be "to develop a recycling campaign for rural ‘communities of ess than 1000 customers" It would develop naturally out ofa strategic goal "to increase recycling by 10% everywhere." A) strategic 8) departmental ©) functional D) divestiture E) tactoal MGTIO3 FULL41) The top managers of Dietizza, a large low-fat pizza chain, plan to increase the profitability ofall its outlets by 15 percent ina period of two years. Thisis a(n)___ goal A\ tactical 8) operational C) nonspecific D) divestiture E) strategic 41)A(a) _plan is @ general plan outlining decisions about resource allocation, priorities, and action steps necessary to reach the goals set by the top managers. A)recovery B) contingency ©) operational D) tactical E) strategie 1)____plans generally have an extended time horizon, and address questions of scope, resource deployment, competitive advantage, and synergy. A) Operational 8) Contingency ©) Recovery D) Tactical MGTIO3 FULL1) Venus Corp. isa large corporation with many strategic business units. The top managers and board of directors are reviewing the performance of the business units to estimate the amount of resources that each unit will require in the next few years. The plan created for allocation of resources ‘among the business units of Venus would be a(n) plan A) strategic 8) tactical ©) operational ) contingency E) recovery 41) Aditference between tactical and strategic plans is that ‘Aj tactical plans have a mare conerete focus, 8) tactical plans are set for and by the board of directors ©) tactical plans have broader time horizons. D) strategic plans are developed by frstline managers. E) strategic plans deal with the day-to-day operations of an organization. MGTIO3 FULL1)____ plans have a short-term focus and are relatively narrow in scope. A) Corporate 8) Tactical ©) Operational ) Contingency E) Strategic 1) Tactical goals are set by: A firstline managers. 8B) middle managers. C)assembly-line managers. D) stockholders. E) investors 1) Operational goals are set by: A firstline managers. £8) top-level managers. () the board of directors. D) shareholders. E) investors. MGTIO3 FULL41) The_'s the component of a strategy that specifies the range of markets in which an organization will compete. A)divestture B) competency ©) scope D) resource deployment E) destiting 1) Gadgetbug Ine. ie known forts extremely ofcient ater-purchase service. None of Gadgetbug's competitors provide the same kind of ‘customer service. Gadgetbug's___is described in the scenario. A) scope 8B) divestiture strategy ©) strategic limitation D) process loss E) distinetive competence 1)___ fs a may of approaching business ‘opportunities and challenges. A) Supply-chain management 8) Value migration ©) Set-deating D) Strategic management E) Greenwashing MGTIO3 FULL1) Zing Ine. is a large fashion brand that manufactures clothing and shoes. The top managers of Zing have decided to use the profits {rom is clothing outlets to invest inthe shoes business. This scenario illustrates the component ofa strategy. A) resource deployment B) scope ) distinctive competence D) process toss E) divestiture 1)A(n)_is.@ comprehensive plan for accomplishing an organization's goals. A)scope 8) competence ©) strategy D) artile of incorporation E) statement of qualification 1)___Is the set of strategic alternatives that helps an organization focus its competitive eforts for each industry or market in a targeted and focused manner, ‘A)Anti-competitve strategy 8) Divestiture strategy ©) Corporate-evel strategy MGTIO3 FULL1) Alba Motorbikes is known for its heavyweight motorcycles. The company places emphasis on the quality of the bikes and after-sale service. The brand also enjoys customer loyalty. This scenario described Alba Motorbikes’ A) distinctive competence. 8) scope. ©) process gain, D) competitive disadvantage. E) related diversification. 1) The choices a firm makes as to where and how much to invest reflect issues of __ A) value migration B) dstinetive competencies C) resource deployment D) deskiling E) industrial symbiosis, MGTIO3 FULL41) Which ofthe following questions that companies consider is most closely elated to the resource ‘deployment component ofa strategy? ‘A) How much money should we invest in our business units overseas? 8) What are the markets in which we can compete? ©) What are the preferences of our customers? 1D) Who are our competitors? ) How can we make our products more unique in a way that they stand out? 1)___ strategy isthe set of strategic aternatives {rom which an organization chooses as it manages its operations simultaneously across several industries and several markets, A) Corporate-level 8B) Business-level ©) Operationalievel D) Divestiture E) Anti-competive MGTIO3 FULL1) {rom which an organization chooses as it operates strategy isthe set of strategie alternatives in a particular industry or market. A)Business-level B) Comporate-tovel ©) Operationalevel D) Divestiture ) Anti-competive 1) The set of processes for determining the ‘stratogis that will be used by an organization is known as: A) strategy implementation. B) environmental scanning, ©) strategy formulation D) divesting E) destiting 1)___ refers tothe methods by whien strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieves AA) Strategy implementation 8) Strategy mapping ©) Strategy formulation D) Strategy visualization E) Strategy conceptualization MGTIO3 FULL41) The starting point in formulating strategies is usually A) SWOT analysis. 8) resource deployment. ©) divesting, ) destiling. E) contingency analysis. 1) Inthe context of SWOT analysis, which of the following would be considered as an organization's strength? A) Exiting competitors 8) High overhead costs ) Favorable government policies, ) Motivated employees ) High employee tumover rate fe tumover rate 1) Which ofthe following wil be considered as an organizational strength in the context of SWOT analysis? A) Organizational opportunities 8B) New competitors ) Surplus capital D) High evertead costs ) New government policies MGTIO3 FULL1)____ include things tke a deep poo! of managerial alert, surplus capital, @ unique reputation andlor brand name. A) Market opportunites 8) Organizational opportunities C) Market strengths D) Environmental strengths E) Organizational strengths 41) Which ofthe following is an organizational strength? |A) High employee turnover 8) High production costs C) Welkestablished distribution channels D) High purchasing power of customers E) New competitors 41)A(n) __is an intemal skill or capability that {does not enable a company to choose and implement strategies that suppor its mission. Aj organizational weakness 8) organizational threat ©) market threat D) process gain ) economic downswing MGTIO3 FULL41) (a) __is an area in an organization's ‘environment that, if exploited, may generate higher performance. A) organizational opportunity 8) economic downswing ) organizational strength D) process gain E) process loss 1) Hyétaliscious isa juice brand that sols a wide range of fut juices that only uses organic, ingredients, which i its uniqueness when ‘compared with other brands. Even though Hydraliscious juices are highly priced, a lot of ‘customers buy them because ofthe quality ofthe Juices. Hydralscious is most likely tobe using _a(n)___ strategy A) Differentiation 8) costleadership ©) divesting D) bundle pricing E) anti-compettive MGTIO3 FULL1) An organization that pursues a(n) strategy seeks to stand out among competitors through the quality (broadly defined) ofits products A) differentiation B) divesting C) anticompetitive D) focus E) costleadership 1) Which ofthe following staloments s true about the aifferentiation strategy? A) Itenables a fim to sell products at lower prices ‘and sill make profits. 8) It enables a fim to charge mare forts products. ©} tis aimed at reducing production costs by using inexpensive raw materials. D) I involves making simple, low-priced products for the mass market. E) Itcannot be used by companies that only offer MGTIO3 FULL1) Which ofthe folowing is most closely associated with an overall cost leadership strategy? 'A) Manufacturing highly-customized products 8) Manufacturing products in bulk ) Providing highly efficient customer service that is better than any other competitor D) Selling products at high prices E) Using expensive raw materials 1) Alpha Inc. isa large shoe manufacturer that caters to a large customer base, In addition o the high volume of shoes it manufactures, the company sells simple-designed sneakers for low prices. Many customers buy Alpha shoes because thay are durable and inexpensive. Which of the following strategies is illustrated in the scenario? ‘A) Overall cost leadership strategy 8) Market diversification strategy ©) Diflecentiation strategy D) Divestng strategy ) Market development strategy MGTIO3 FULL41) Which ofthe following wil help a company achieve an overall cost leadership? A) Manufacturing customized products in small quantities B) Increasing after- purchase services ) Using simple inexpensive product packaging D) Selling products at very high prices E) Increasing overhead costs 41) Afiem pursuing a(n) _stratogy concentrates on a specific regional market, product line, oF group of buyers. ‘A) overall cost leadership B) divesting ©) restrain of trade ) anticompetitive E) focus 41) Supertech Inc. is a large frm that manufactures gadgets and mobile phones. The company sells a line of inexpensive mobile phones exclusively targeted al youth and teenagers in Selenasia Which ofthe following strategies is ilustrated in the A) Differentiation strategy 8) Focus strategy ©) Restraint of trade strategy MGTIO3 FULL41) During the introduction phase ofthe product fe cycle ‘A) companies must sacrifice product quality 8) most companies tend fo downsize ©) demand may be very high ) competition is st ts peak E) sales volume isthe highest 1) During the growth stage of the product ite cycle, ‘A) most companies downsize. 8) the demand is the lowest C) competitors start exting the industry. 1D) more firms begin producing the product. E) sales rapidly dectne. 1) During the maturity stage ofthe product fe cycle, A) most companies start hiring more employe Jetting product the out the door without sacrificing qualty BB) managers need to focus thelr efforts on " C) the sales volume isthe highest 1D) more competitors enter the industry E) the overall demand growth for a product begins to slow down, MGTIO3 FULL41)In the maturty stage ofthe product fe cycle, |) the demand is extremely high 8) product sales rapidly increase. ©) competion is a its peak 1D) managers need to focus thelr efforts on “getting the product out the door” without sacrificing quality. E) the number of new firms producing the product begins to dectine 1) During the dectine stage of the product ite yet: |A) demand peaks. 8) new competitors enter the industry C) sales drop, 1D) managers need to focus ther efforts on “getting the product out the door” without sacrificing qualty E) managers must increase production costs. 1) Which ofthe following strategies can help companies survive during the dectine stage of the product ite cycle? |A) Increasing production costs 8) Manufacturing the products frequently and in smaller quantities ) Avoiding diferentiation strategios D) Developing new products or services ) Focusing on strategies to slow the entry of MGTIO3 FULL1) Which ofthe following strategies can help ‘companies during the maturity stage of @ product We cycle? 'A) Manufacturing products in small quantities intermittently than in bulk 8) Drastically increasing product prices CC} Focusing on keeping costs low D) Sacrificing the quality of products E) Focusing more on strategies to slow the entry of competitors 1) Strategies to slow the entry of eompatitors are Important an organization is entering an industry during the_ stage ofthe product fe cycle. A) growth 8) introduction ©) éeciine D) maturity ) recovery 1) Which ofthe folowing strategies wil help companies succeed during he growth stage of a product cycle? ‘Aj Increasing overhead costs 8) Focusing on developing naw products or ©) Sacrificing product quality MGTIO3 FULL1) During the growth stage of a product Ife cycle, ‘companies should focus on: A) creating produc tferentiation. 8) increasing overhead costs ©) sacrificing product quality. ) using anti-competitive strategies. E) divesting 1) During the maturity stage of a product fe cycle: A) demand is maximum. 8) companies must sacifce product qualiy, C) sales are the highest ) demand comes toa halt E) product diferentiation concems are sill important 1)___ describes the numberof diferent businesses that an organization is engaged in and the tent to which these businesses are related to one ancther. A)Entropy 8) Diversification ©) Divestiture D) Competency E) Economy of scale MGTIO3 FULL1)An organization that pursues a single-product strategy: ‘A) clusters relayed products in a single strategic business unit 8B) manufactures a range of products that are related to each other in some way. C)uses a single marketing strategy for alts products, ) operates in a single geographic market. E) creates a separate business unit for each product it sels, 1) Vitually all larger businesses in the United States use a(n) __strategy. A) related-dversiication 8) single-product ©) divestiture D) unrelated diversification E) single-service 1) Avies Inc. manufactures dairy products and dotergents. This isan example of diversification. Aj horizontal ) unrelated ©) single-product D) concentric MGTIO3 FULL1)__techniques are methods that diversified organizations use to determine in which businesses to engage and how to manage these businesses to maximize corporate performance. A) Divestiture 8) Portfolio management ©) Process gain D) Deskiling E) Entropy 41)Ina Boston Consulting Group (BCG) matrix, ___are businesses that have only a small share of a quickly growing market. Aystars B) question marks C)entopies D) dogs E) cash cows, 1)In a BCG matix, _ are businesses that have a very small share of a market that fs no expected to grow. ‘A) question marks 8B) cows ) stars D) dogs E) rate busters MGTIO3 FULL1) the context of the BCG matrix, _ are businesses that have the largest share of a rapidly ‘growing market ‘A) question marks 8) stars ©) cows D) dogs E) entropies 1)In a BCG matrix, _are businesses that have a large sharo of a market that is not expected to grow substantial A)stars B) cash cows C)entropies ) question marks E) dogs 1) The__ sa potfaio management technique that considers industry attractiveness and competitive postion rather than focusing solely on market growth and market share ‘A)Black-Litterman model 'B) moder portfolio theory C) grouth-share matrix D) BCG matix E) GE Business Screen MGTIO3 FULL41) Inthe GE Business Sereen portfolio. management technique, businesses that have ‘good competitive position in an attractive industry are known as: Allosers. 8) winners. C) profit producers. D) question marks. ) cash cows. 41) Inthe GE Business Screen matrix, which of the following is a determinant of industry attractiveness? A) Market share 8B) Market size ©) Product quality ) Operating costs ) Service network 1)In the GE Business Screen matrix, which of the following determines the competitive position of the company? A) Market size 8B) Market growth ©) Price competitiveness D) Capital requirements E) Competitive intensity MGTIO3 FULL41)In the context of the GE Business Screen, a {determinant ofan organization's competitive position is A) capital requirements, 8) market growth, ) government policies. D) market size E) product quality 1) Pursuing a strategy of ___reduces an organization's dependence on any one ofits business activities and thus reduces economic risk A) single-product B) singlesservice ©) divestiture D) related diversification E) trade restraint 1) Firms that implementa strategy of operate multiple businesses that are not logically associated with one another, ‘A)single-business unit 8) unrelated diversification entropy D) nendiversiiation E) syneray MGTIO3 FULL1)Inthe context of the GE Business Screen, a determinant of industry attractiveness would be: A) capital requirements. 8) product quality ©) service network. D) price competitiveness. ) market share. 1) Which ofthe folowing is determinant of an organization's compettive postion in the context of the GE Business Screen? A) Government policies 8) Market size )Technolagical know-now D) Capital requirements ) Market growth 1) nthe context ofthe GE Business Screen matiix, __is a determinant of the competitve positon of a company. A)intensity of competition ) government policies ©) market size D) market grown E) market share MGTIO3 FULL1)n contrast to strategic plans, tactical plans must A) specily resources and time frames. 8) be developed independently ofthe internal business environment C) be developed independently ofthe external business environment D) be more general and broadly based E) focus on resources, environment, and mission. 1) Which ofthe following statements is true about a tactical plan? A) tis an organized sequence of stops designed to execute strategic plans, B) tis exclusively developed by the board of sirectors ©) lis more broad and nonspecific when compared toa strategic plan. D)Itis developed indopandently ofthe external business environment E) It does not specity time frames and resources. MGTIO3 FULLAla) activites, It might consist of identiving procedures Is a single-use plan fora large set of for introducing a new product line, opening a new facility, or changing the organization's mission A) policy 8) entropy ©) regulation D) project ) program 1) ___ planning refers to the determination of attematve courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate, A) Divestiture B) Desking ©) Synergy ) Contingency E) Entropy 1) A___is the most general form of standing plan that specifies the organization's general response to a designated problem or situation, A\project 8) standard operating procedure ©) policy D) program MGTIO3 FULL41) The narrowest of the standing plans, describe exacily how speciic activities are to be carried out A) standard operating procedures 8) projects and programs CC) rules and regulations D) contingency theories E) crisis management procedures 1) Venus Corp. prohibits its employees from ‘smoking in its premises. This isan example of a(n) A) standard operating procedure B) rule ©) program D) entropy E) project 1) Relish has a chain of outlets that sells baked products. Relish requires alls employees to complete a month's training before they could work in the kitchen, This is an example of a A) standard operating procedure, 8) contingency plan. ©) regulation D) policy E) standing plans, MGTIO3 FULL1) Libra Travels LLC. has a few back-up buses at key locations where the business operates. This is to.be prepared in case any of is day-tour buses break down, This is an example of A)project. 8) program. ©) regulation. D) single-use plan. E) contingency plan. 1) The process of choosing one alternative from ‘among a set of aternatives is called ‘Aj rational ignorance B) altruism CC) bounded rationality 1) decision making E) groupthink 1) Which ofthe following statements i true about the decision-making process? A) Itexclusively applies to problem situations, B) It requires thatthe nature ofa particular situation be defined. ©) I seldom applies to situations that are postive ) typically involves only ane individual and seldom applies to groups. E) It results inthe generation of only one. MGTIO3 FULL41) Ryan, the production manager atthe Tan Shoes Company, chose the cheapest eather-cuting ‘machine from a set offve machines from diferent manufacturers. Ryan was engaged in. ‘A) decision making 8) optimizing ©) rationalizing D) brainstorming E) social loafing 1) Which ofthe following statements s true about the process of decision making? A) Itends when the decision situation has been defined 8) It includes puiting the chosen alternative to practice. CC) The frst step inthe process is to identity atematves to a problem, 1D) The process is said to be complete when a set of alternatives to a problom has been created. E) Ina business scenario, the decision-making process is always aimed at finding a way to increase profits. MGTIO3 FULL1)A(a) _decision is a decision that is relatively structured or recurs with some frequency (or both), A) custom-made B) novel unstructured D) intuitive E) programmed 1) Decisions regarding standard organizational transactions are most likely tobe ___ decisions. A) unstructured 8) infrequent ) programmed D) intuitive E) rational MGTIO3 FULL41) Nutrimax in. sponsors a foatall championship in Oriel in August every year. The championship is organized by the Oriel Football Association (OFA) to encourage new talent, and Nutimax bears all tho expenses incurred during the championship. ‘The Oriel regional manager of Nutrimax sends ‘across a check fo the OFAin July of each year in order for them to prepare for the championship. The regional manager's decision about when to send the check to OFA\s a(n) ___decision A) programmed decision 8) unstructured decision ©) intuitve decision D) contingency decision E) satisicing decision 1) When the inventory manager of Cuisine Royale, ‘a restaurant, decides to order a batch of brown bread because the stock is almost emply, she's making a(n) decision, A) programmed 8) unstructured ©) intuitive D) irrational E) strategic MGTIO3 FULL1) Anonprogrammed decision: AAs relatively more frequent that programmed decisions. B)is highly structure. CC) requires more time and resources than programmed decisions. D)is typically regarding daily organizational transactions, E) typically applies to basic operating systems and procedures. 41) Decisions made by top managers involving strategy, such as sighing mergers or making acquisitions, are examples of ___decisions. A) frequent 8) nonprogrammed ©) structured D) operational E) programmed 1) Programmed decisions: ‘A) can only be made by the top management B) generally deal with long-term matters such as expanding business in another country, ©) lack structure, ) recur more frequently than nonprogrammed decisions, MGTIO3 FULL1) Venus Electronics Ine, decided to explore markets indifferent countries. It has now set up a branch in Selenasia. Ths is an example of a(n} decision A) structured 8) nonprogrammed ©) standard D) programmed E) operational 41) Which ofthe following ilustrates a programmed decision? ‘A)Acafe owner buys a hundred cartons of cates every month, 8B) A fastfood chain decides to enter into a new franchise agreement. ©) A content development company decides to sue ‘a compettr for copyright infringement 1D) Ahealth drink manufacturing company decides to launch a new product in the market ) An IT company decides to lay off a hundred employees. MGTIO3 FULL1) Which ofthe following statements is tue in the ‘context of decision making under @ state of risk? |A) The decision maker clearly knows the alteratves, 8) The decision maker uses probability estimates to-assess alternatives. CC) The decision maker is least likey to choose bad altematve 1) The decision maker has an accurate Understanding of payott of al the alternatives. ) The decision maker seldom considers his or her past experience while making the decision 41)In decision making, a condition of __ exists when a decision maker knows what the ‘alematives are and what conditions are ‘associated with each alteratve Arisk 8) uncertainty ©) certainty D) imperfect information ) ambivalence MGTIO3 FULL41) When Irene wants to buy new laptops for her ‘marketing executives and she has to pick them up {rom a single brand that is preinstalled with the ‘marketing soflware that her company needs, she's making a decision under a condition of A) impertect information B) ambiguity risk D) certainty E) unclear alternatives +1) When decision making is under a condition of uncertainty A the alternatives are not known. B) ne ambiguity is involved. C) errors are least likely to occur D) the consequences of solutions are known, E) the decision situation is simple. MGTIO3 FULL1) Which ofthe following statements is true in the ‘context of decision making under a condition of uncertainty? AJA decision maker greatly relies om intuition, Judgment, and experience. B) A decision maker clearly knows all the risks associated with alematives to a problem. ©) Adecision maker puts in east effor and uses a pre-determined structure for decision making 1D) A decision maker is able to estimate the payotts and risks associated with alternatives, E) A decision maker identifies only two alteratives to the decision situation 1) Professor Campbell needs to recommend a biology textbook for his senior class. Only two well. known publishers, Educate and WordTree, publish biology textbooks inthe state, and both publishers ‘are known forthe clarity and extensiveness oftheir content. Whan Campbll chooses a textbook from one of the two publishers, he is making a decision ina state of A) cortainty 8) iratonality C) risk D) imperfect information E) ambiguity MGTIO3 FULL1) Managers are most prone to ert in a condition of. A) certainty 8) uncertainty c)risk ) rationality E) perfect information 1) The _ decision model isa prescriptive approach that tells managers how they should make decisions; it assumes that managers are logical and rational and that thei decisions willbe in the organization's best interests. A) behavioral 8) classical ©) administrative D) bureaucratic E) probabilistic 1) According tothe classical decision model managers: ‘A) evaluate all aspects of a decision situation logically and rationally 8B) are inefficient at eliminating uncertainty. CC) never have adequate information about decision situation. D) never make errors even under uncertain MGTIO3 FULL41) The fist step in ational decision making is A) identifying alternatives 8) implementing an alternative €) selecting the best alternative ) recognizing and defining the decision situation E) evaluating alternatives 1) Tina works ata coffes shop. One of the four coffee machines at the coffee shop has not been {unctioning well the same machine has broken ‘down thrice in two weeks. Now, Tina is looking at the machine and trying to decide ifthe problem isa bad machine or if people are just using the machine wrong. Tina is curently {A} implementing an alternative 8) evaluating the results of a chosen altematve ) consulting with other decision makers ) recognizing and defining the decision situation E)oliminating feasible alternatives MGTIO3 FULL1) Libra Inc. chose to settle a lawsuit for $75 rilion, In the context ofthe rational decision- making model, when executives ofthe company begin to compare the cost of the settlement to ‘those of other financial institutions, they will be {A} developing a set of rational all B) evaluating the possible alternatives CC) consulting with other decision makers matves D) recognizing and defining the decision situation following up and evaluating the rosuts of a chosen alterative 1) After being lid off by their companies, many individuals recognized three options they could choose from before they could secure new jobs: to spend less, o use savings, or to use credit. In the context ofthe steps involved inthe rational decision-making model, they were 'A) monitoring implementation 8) selecting the best akernative C) identiying alternatives D) implementing aternatives E) evaluating decision effectiveness MGTIO3 FULL41)n general, while identiying altematives, the more important the decision, ‘A) the more alternatives should be generated 8) the lesser the time needed to make the decision ©) the lesser the chances of managers making the right decision D) the more the tendency of managers to ignore intuitions E) the lesser the chances of managers using ‘expert opinion to make the decision 1) Christine, a teacher, notices that the performances of her students at class tests have been dedining. While attempting to find a solution to the problem, she thinks of three choices: rewarding students who get good grades, holaing class tests more often, or punishing students when ‘they perform poorly in the tests, Which step of the rational decision-making process is Christine in? A) Identiying atematives 8) Implementing an aternative ©) Defining the decision situation D) Selecting the best altemative ) Evaluating the decision effectiveness MGTIO3 FULL41) The rational decision-making process: ‘Aj begins when a decision maker chooses the best solution. 8) involves the evaluation of diferent alternatives. CC) ends when alternatives have been identified. 1D) does not include the implementation of an alemativ. E) ends when a decision situation has been defined 1) Delta Corp. introduced a new set of policies, giving its employees more flexiity in work timings. This decision was made in response to complains from employees about fatigue. Which step of the rational decision-making process is iustrated in the scenario? A) Defining the situation 8) Evaluating the possible aternatives, ©) Selactng the alternative D) Implementing an alternative E) Evaluating decision effectiveness MGTIO3 FULL1) When the prices of oll came down, the demand {or sport utity vehicles (SUVs) increased ‘Automakers chose fo increase production of full size SUVs as the prof from large vehicles is greater than that fom small vehicles. Which step in the rational decision-making model silustrated in the scenario? ‘A) Developing a set of rational alternatives 8) Evaluating the possible atteratves ) Selecting the best altemative and implementing it 1D) Recognizing and defining the decision situation E) Evaluating decision effectiveness. 1) In wiich step ofthe rational decision-making ‘model does the decision maker test the feasibly ‘and satisfactoriness of alteratives before choosing one? |A) Identifying atematives 8) Implementing the chosen alternative ) Defining the situation 1) Following up the implementation ) Evaluating aternatives MGTIO3 FULL1) Peter was looking for alernatives to double his plan's production capacity, and he considered acquiring the production plant ofa rval company. The engineers in Peters company advised him against it because acquiring the new plant would only increase their company’s production by 16 percent. Therefore, Pete's idea failed the test for Inthe context ofthe rational decision making process A) feasibility 8) satsfactorinoss ©) bounded rationality ) satsticing E) escalation of commitment 41) Inthe rational decision-making model, once the ‘akematives have been evaluated, the next step is to. ‘A) select the best aternative 8) implement the chosen alternative ) evaluate the resuls ofthe chosen alternative D) identity the available alternatives E) define the decision situation MGTIO3 FULL1)An altemative should be eliminated suing ‘evaluation it Atis supported by the most number of individuals 8) Itinvolves minimal costs. ©)itis found to have passed the satistactoriness test D) thas several unaffordable consequences, E) itrequires minimal resources. 1) Which ofthe following statements is true in the context of selecting the best alternative? |A) The decision maker can only select one best akemative B) The decision maker can develop subjective estimates and weights for choosing an alternative. ) The decision maker must choose the alternative thatinvolves the most costs, 1D) The decision maker must only stick to completely rational, mathematical analysis while selecting an altemative. ) The decision maker can choose an alternative that does not pass the consequence, satistactorinoss, and feasibility test. MGTIO3 FULL41) Inthe rational decision-making process, ‘optimization means: A) identifying obvious, standard alternatives. 8) choosing the alternative withthe best overall expected outcomes. C) gathering the most complete information before making the decision D) developing the maximum number of creative, innovative alternatives. E) choosing an altemative that is feasible even fit is not satsfactory or has undesirable consequences, 41) The final step in the decision-making process requires that managers __ ‘A) evaluate the results ofthe chosen alternative B) select the best atemative CC) implement the chosen alternative D) idontiy the available alternatives. E) define the decision situation MGTIO3 FULL41) Aplant manager had taken a fow measures to tty o reduce worker tumover. For four months he ‘monitored the implementation of the measures. He row finds that the turnover rate is reduced by 10 percent. Which step ofthe rational decision-making ‘models ilustrated in the scenario? ‘A) Evaluating the results B) Identiying ateratives CC) Recognizing the decision stuation 1) Selecting the best altemative E) Developing a set of alternatives 1)___ ts one of the factors that makes an ‘akemative infeasible, A) Decrease in expensitire 8) Increase in production capacity ©) Low costs D) Increased satisfactoriness E) Legal bariors MGTIO3 FULL1) According tothe evidence-based management approach, managers must__. A) discourage employees from teling the unpleasant truth 8B) be committe to fact-based decision making C) avoid experimentation ) completely rely on the recommendations made by others ) base decisions on untested but strongly held beliets 1) Which ofthe following statements i true about the administrative mode! of decision making? {Aj It suggests that most managers make decisions rationally and logically 8) It suggests that decisions that are based on instincts are better than the ones based on logic. ©) It suggests that managers tend to satisfce when making decisions. D) It suggests that managers have the most accurate information about decision situations, E) It suggests that managers should not make decisions based on mathematical analysis MGTIO3 FULL1) Political forces, intuition and escalation of ‘commitment, isk propensity and ethics constitute the ___aspects of decision making. A) rational B) administrative ©) classical D) behavioral E) sequential 1)___was one of the fist experts to develop tho administrative model of decision making A) Elton Mayo 8) George Bennett C) Martin Johnson D) Jack Weleh E) Herbert Simon 1) The administrative model of decision making ‘argues that decision makers while making decisions, ‘Ajuse complete and perfect information 8) do not use intution while making decisions ©) are constrained by bounded rationality ) completely avoid escalation of commitment E) use only instincts MGTIO3 FULL1) According to the administrative model, decision ‘Ajuse incomplete and imperfect information 8) are never constrained by bounded rationalty ©) tend to avoid satisticing when making decisions. ) are not limited by ther values and unconscious reflexes while making decisions. E) always actin the best interests oftheir organizations. 1)__ Isa concopt suggesting that decision makers are limited by their values and unconscious reflexes, sil, and habits A) Satisficing B) Escalation of commitment ©) Risk propensity ) Groupthink ) Bounded rationality 1) Bounded rationality is assumed in the __ ‘model of decision making A) administrative 8) rational ©) classical D) groupthink E) rational MGTIO3 FULL1) Which ofthe following statements true about the administrative model of decision making? A) It suggests that politcal forces do not exist in business scenarios. 8) It suggests that managers may not alvays make ‘decisions that best serve the interests oftheir organizations. ©) It suggests that managers use a blend of subjective knowledge and analysis to choose the best alternative D) It suggests that decisions should only be made individually and notin groups. E) l suggests that decisions made by groups are better than decisions made by individuals, 1) For his work in developing the administrative ‘model to describe how managers make decisions in the real world, Herbert Simon won the Nobel Prize in___ A) Medicine 8) Economics ©) Peace D) Psychology E) Management MGTIO3 FULL1)___'s the tendency to search for alternatives ‘only untl one is found that meets some minimum standard of sufficiency. A) Saisficing 8) Groupthink ©) Optimization D) Bounded rationality E) Escalation of commitment 1) Lucy needs to buy a new laptop for her business, and she buys a particular brand even though it does not support the software that is required for her business. She does this because all her family members have used computers of the same brand al theirlives. Ths is an example of how decision makers are constrained by A) poltical forces 8) bounded rationality ) Lucy's high risk propensity D) logic E) organizational strategies MGTIO3 FULL41) Tim isthe production manager at a stee! factory. One of the stee! processing machines in the factory has broken down and has to be replaced. Tim decides to buy anew machine from a company that he has read reviews of in industry magazines, even though there are other ‘companies offering a discount on machines with better functionality. This isan example of how managers are constrained by ‘A) bounded rationality B) escalation of commitment 6) risk propensity ) groupthink E) political forces 1) Mike is in a hurry to appoint a personal assistant tohhelp him with scheduling his meetings with clients. He posts an advertisement on a job website, and picks the first person wha sends in her resume for the job. He only checks for the candidate's qualification and does not consider her work experience. This is an example of ‘A ational decision making B) classical decision making ©) satisticing D) evidence-based management E) optimizing MGTIO3 FULL1) Keisha isthe vice president of accounting, and she has to decide which computer software to purchase for her department. She has looked at all ofthe possible alternatives and is leaning toward the system with which she is most familiar. This is an example of __ A) optimizing 8) bounded rationality C) satsticing D) synergy E) escalation of commitment 1)___ ts one major element of organizational poltcs thats especially relevant to decision making A) Coalitions 8) Intuition ©) Escalation of commitment D) Salisficing E) Risk propensity MGTIO3 FULLE) Risk propensity 1) Chelsea has been contemplating buying a red cat. When she visits the used cars dealership, she looks ata red Ford Hatchback and buys it even before checking for its technical specications Chelsea's decision isan example of __ Aj optimization B) escalation of commitment ©) an evidence-based decision D) satisticing E) a decision under uncertainty 1)___ fs an innate belief about something without conscious consideration ‘A) Optimization 8) Intuition ©) Logie D) Ethics E) Risk propensity MGTIO3 FULL1) Amarketing manager decides to launch a new product because itis the first product that came to his mind, even if there are several better products to.be explored. Which of the fllowing 's iustrated in the scenario? A) Escalation of commitment 8) Rational decision making ©) Bounded rationality D) Satisicing E) Optimization 1) Eric is a manager who recently introduced a new process for screening potential employees. Eric has noticed that the new screening process is. not very efficient and isnot helping recruiters find the best candidates. However, Eric continues to use the same process because itwas so expensive to set up the intial system, Which of the following concepts is ilusrated in the scenario? A) Evidence-based decision making 8) Escalation of commitment ) Rational decision making ) Optimization E) Satisicng MGTIO3 FULL1) Ryan Tools Company just acquired Coney Tools. The purchase came about because the employees in both the research and development and the production departments at Ryan Tools joined forces to lobby forthe purchase of Coney Tools as ‘oppased to other companies. Both departments wanted Coney Tools because of its state-of-the-art research and production facilis. This is an example of _. A)satsticing 8) intuitive decision making C)a dissection D) escalation of commitment E) a coalition 1) Willam had invested in an ial pubic offering He kept incuring losses due to untavorable market conditions, However, he decides to keep the investment because he had spent so much money ont. This scenario best exemplifies ‘Aj evidence-based management 8) rational decision making ©) escalation of commitment D) rationality E) saisicing MGTIO3 FULL1)____'s a behavioral process in which a ‘decision maker stays with a decision even when it appears to be wrong ‘A) Bounded optimization 8) Escalation of commitment ©) Risk propensity ) Strategic maximization E) Intutve raonality 1) Managers sometimes decide to do something because it feels ight or they have a hunch, This is ‘an example of using___ in decision making. A)satstcing B) rationality ©) intuition D) optimization E)logic 1)___Is the extent to which a decision maker is. willing to gamble when making a decision. ‘A) Risk propensity 8) Intuition ©) Optimization D) Satisficing ) Bounded rationality MGTIO3 FULL1) Managers with higher levels of risk propensity are more likely than their conservative counterparts to: ‘Aj adhere tothe rational model and be extremely cautious about their decisions, 8) avoid mistakes and infrequently make decisions that lead to big losses. ©) rely heavily on intution and gamble big investments on their decisions. ) reach decisions slowly ater a great amount of analysis E) display no aggression in decision making 1) Amanager who has a high level of risk propensity is likely to: ‘A) make decisions quickly B) avoid risks C) spend a lat of time evaluating alternatives, ) be wary of making a wrong choice. E) rely heavily on mathematical analysis. MGTIO3 FULL41) The nominal group decision-making technique: Ajinvolves maximum interaction among group members. 8) Is used to generate creative and innovative idoas. ©)is a technique in which members are not brought together in a face-to-face setting ) always results in groupthink. E) is @ technique in which the manager lacks the authority to reject an alternate, 1) The Delphi group technique isa group decision- making technique in which |A) the members are involved in extensive discussions with each other. B) the opinions of group member are combined and averaged ©) the daly operational problems of an organization are addressed. ) the members are most likely to indulge in ‘groupthink E) the members are most Ikely tobe fistiine ‘employees belonging to the same department MGTIO3 FULL41) One advantage of group decision making is: A) groupthink. 8) saved time. (©) more acceptance ofthe final decision. D) lowered cost of decision making. E) elimination of poltical forces. 1) Adisadvantage of using interacting groups to make decisions is that A)it fosters potical forces. B) It ciscourages creativity. C) it generates very few alternatives. D) it involves more costs than all other group decision techniques. E) itdoes not foster understanding between members, 1) Which ofthe following is true of interacting groups? A) They are the least common decision-making groups. 8B) They effectvely eliminate the possibly of groupthink, (C) They can be regular work teams ) They provide title scope for new ideas E) They do not involve political forces. MGTIO3 FULL1) (a) __is aform of group decision making in hich @ group arives at a consensus of expert opinion. A) interacting group B) Delphi group C) inactive group D) unconventional group E) unstructured group 1) Macy Computers inc. faced a major sofware error that brought all work in the company to a standstil. Roger, the CEO, arranged for a panel of \wall-known engineers inthe state to estimate the time that it would take forthe error to be set right. Each engineer made an estimate and sent itto the ‘group's leader, Dr. Rajesh. Dr. Rajesh averaged the estimates and sent the average back out to the group. People who had submitted unusual ‘stimates wore asked to say why those estimates ware chosen, Roger used a(n) ___tohelp his company get rid of the software crisis, A) interacting group 8) Delphi group ©) standing committee D) work group E) unetuctured group MGTIO3 FULL1) When managers want tobe sure to got innovative and creative ideas, they will often create a(n) __ group. ‘A) judge-advisor system 8) coalition C) advocacy group D) nominal group E) political group 1) Adisadvantage of group decision making is that A) groupthink may occur. 8) generation of diferent opinions does not occur. CC) communication may be curbed. D) knowledge availabe is always limited E) only a few alternatives are likely fo be generated 1) ___ isa situation that occurs when a group o teams desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision A) Groupthink 8) Groupshitt ©) Brainstorming ) Condorcet's paradox ) Group polarization MGTIO3 FULL41) Which ofthe folowing is true of nominal groups? A) Innovative ideas are nat generated in nominal ‘groups. 8B) Members of nominal groups are brought together in a face-to-face setting (C) Members of nominal groups tak freely among themselves, argue, agree, form inlernal coalitions, ‘and so forth ) Only one individual dominates a nominal group. ) Nominal groups are most often used for forecasting technological breakthroughs. 1) Which ofthe following disadvantages of group decisions typically resuts from the group being very cohesive? ‘A) Disagreement 8) Groupthink C) Lower acceptance ofthe fal decision D) Minimal participation of members E) Conflicts MGTIO3 FULL1) Omega Inc. a large appliances company, went bankrupt because of a series of poor managerial {decisions and a downtum in the economy. In retrospect, would seem that there was too much ‘emphasis on the group reaching a consensus ‘decision whenever the managers were involved in decision making. As a resul, many decisions by the managers at Omega were made to avoid ‘confct. What disadvantage of group decision making does this scenario represent? A) Domination 8) Groupthink ©) rationality D) Satisficing ) Coaltions 1) Which ofthe following is an advantage of group decision making when compared to individual decision making? A) The group process is loss expensive. 8) Groupthink is avoided. C) Less eis consumed. ) Moce alternatives are likely to be generated E) Political forces are completely eliminated, MGTIO3 FULL*) Groupthin: A) results in more confit. 8) is most likely to occur in nom-eohesive groups. C) often leads to choosing a wrong alternative D) resuts in extensive brainstorming E) results in polarization. 41) One cisadvantage of group decision making is that A) very litle information and knowledge aro avaiable. 8) one person may dominate the group. C) fewer alternatives ate generated D) it reduces the chances of acceptance of the final decision E) It prevents groupthink from developing 1) Which ofthe following helps a manager avoid sgroupthink during group decision making? ‘A) Assigning one person to act as devits advocate 8) Making his or her preferences known tothe group a8 early as possible C) Instructing members to avoid expressing divergent viewpoints 1) Giving the group as much time as they need to make a decision, without enforcing a deadline ) Encouraging group cohesiveness MGTIO3 FULL1)___ Bs the degree to which the overall task of the organization is broken down and divided into smaller component pars A) Job specialization 8) Job enrichment ©) dob rotation ) Job enlargement E) Task identity 1) One ofthe benefts of ob specialization is that A)it makes employees proficient at a task. 8) it significantly increases employee satisfaction. ©)it offers new challenges and stimulation to the workers. ) it decreases boredom and absenteeism among workers. E) t eliminates job monotony and fatigue. 1) One ofthe disadvantages of job specialization is that {At increases the transfer time between tasks, B) it makes it dificult to develop specialized equipment o assist with a job. ©) does not help @ worker become proficient at a task D) it doos not offer challenges or stimulation to workers, MGTIO3 FULL1) Which ofthe following is an advantage of job specialization? A) It decreases transfer time between tasks. B) It increases the level of employee satisfaction. ©) eliminates monotony and boredom. ) It provides stimulation and challenges to ‘employees. E) I significantly reduces employee tumover rates. 41) Jimmy owns an ice eream parlor. He designs ‘schedule forthe differont tasks the employees have to perform in order to prevent monotony at work. According to the schedule, fan employes makes waffle cones on a day he serves ice ‘creams the next day and clears the tables on the day after thal. Jimmy is using the ___ approach athis ice cream parlor. {Aj ob enrichment B) job envargement ©) ob rotation D) jo deskiting E) job specialization MGTIO3 FULL1)____ involves systematically moving ‘employees from one job to another. A) Job enlargement 8) Job rotation ©) Job deskating ) dob specialization E) Job enrichment 1) In__ the jobs do not change, but instead workers move from jo to job {A} ob rotation 8) job specialization ob enrichment D) ob deskiing E) job entargement 1)___was developed to increase the total number of tasks workers perform. As a resul, all workers perform a wide variety of tasks, which presumably reduces the level of job cissatistaction ‘A) Job enlargement 8) Job rotation ©) Job enrichment D) Job specialization E) Job dosklting MGTIO3 FULL1) Which ofthe following would require continually adding new tasks and challenges as part of the job design? A) Job enlargement 8) Job specialization ©) dob rotation D) dob envichment E) Job deskiling 1)___ attempts to increase both the number of tasks a worker doos and the control the worker has over the job A) dob destiling B) Job enrichment ©) dob specialization ) dob rotation E) dob entropy 1) Job enrichment: ‘A) does not increase the number of tasks that workers perform 8) requires the organization to be highly centralized, () requires delegation of authority ) requires workers to perform a single task. E) involves workers moving from job to job in a predetermined manner MGTIO3 FULL1) According to the job characteristes approach, taskidentityis__—_ |A) the number of things @ person does ina job B) the extent to which a worker does a complete Portion ofthe total job C) the extent fo which @ worker knows how well the Job is bsing performed D) the perceived importance of the task E) the degree of control a worker has over how the Work is petformed 41) the context ofthe job characteristics ‘approach, skill variety refers to: ‘A the extent to which a worker knows how well the job is being performed. B) the degree of control a worker has over how the work is performed. ©) the perceived importance of a task D) the extent to which a worker does @ complete of idontifable portion ofthe total job. E) the number of things a person does in a job. MGTIO3 FULL41) the context ofthe job characteristics approach, refers to the extent to which @ worker knows how wel the job is being performed. A) feedback B) task identity C) task significance D) autonomy E) skill variety 1)____Is the process of grouping jobs according to some logical arrangement, A) dob rotation 8) Job enrichment ) Departmentalization D) Centralzation E) Industialization 1) ____departmentalzation groups together thase jobs involving the same or similar actives. A) Product, 8) Functional ©) Location 1) Customer ) Sequential MGTIO3 FULL1) Creating different teams for fnance, production, and marketing is consistent with departmentalization. A) location B) product ©) functional D) sequential E) customer 1) At Gamma Ine, there are separate departments of employees wiho specialize in sales, service maintenance, customer fice, and accounting ‘What form of deparimentalization does Gamma ‘A) Functional deparimentalization 8) Product departmentalization C) Location departmentalization 1) Customer departmentaization ) Sequential departmentalization MGTIO3 FULL1) Which ofthe folowing is a disadvantage of functional departmentalzation? |A) Supervision becomes dificult as managers will reed to have skits in several areas 8) Coordinating activites inside each department becomes dificult, ©) Decision making may tend to become slower as the organization grows. 1D) Employees tend to focus on the overall ‘organization rather than thelr specific jobs. ) Functional departmentalization cannot be implemented for smaller organizations 41) Relish Inc. s a large corporation in the food industry that manufactures canned foods, confectionery, and baked foods. The organization has a separate department for each of these types of food manufactured. Each department integrates all the activites required to manage their respective line of food. Which a the following types of departmentalizaton is ilustrated in the ‘A) Sequential departmantalization 8) Customer departmentalization ) Product deparimentalzation D) Location departmentalization E) Functional departmentalization MGTIO3 FULL41) Janice owns a bakery that has only ton ‘employees, out of which three are bakers, four are waiters, and the rest belong to the housekeeping ‘af, Which ofthe following approaches to departmentazation would work best for the bakery? A) Functional departmentalization B) Product deparmentalization ©) Customer departmentalization D) Location departmentalization ) Sequential departmentalization 1) The advantage of using the funcional departmentalization approach is that ‘A) supervision is facitated because an individual manager needs fo be familiar with only @ small set of sills B) the speed and effectiveness of decision making increase as the organization grows. ) accountability and performance become easier to monitor. D) employees gota better view ofthe total organization. E) decision making becomes less bureaucratic as the organization grows, MGTIO3 FULL1) One disadvantage of using product departmentalization is that: ‘A) decision making tends to become slower and mare bureaucratic, 8) the performance of individual products or product groups becomes dificult to assess. C) administrative costs rise because each department must have its own functional specialists, D) all activites associated with one product or product group cannot be easly integrated and coordinated, E) accountabilty of departments becomes very dificil to monitor 1) ___ Is defined as a clear and distinct line of ‘authority among the positions in an organization A) Chain of command 8) Span of management ©) dob deskiting D) Flat structure E) Synergy MGTIO3 FULL41) The term span of management refers tothe: Ajextent to which authority is delegated at the individual level B) extent to which authorty is systematically delegated to middle and lower levels of management. ) number of people reporting toa particular manager. ) process of grouping jobs according to some logical pattern. EE) number of managers assigned to a department. 1)___ suggests that each person within an organization must have a clear reporting relationship to one and only one boss. A) Span of management 8B) Eniropy ©) Flat hierarchy 1) Unity of command E) Scalar principle MGTIO3 FULL1) Which ofthe folowing concepts suggests that there must be clear and unbroken line of authority that extends from the lowest fo the highest positon in the organization? ‘A) The scalar principle 8) Unity of commana ©)Entropy D) Synergy ) Decentralization 41) Which ofthe following is an accurate comparison between tll organizations and fat organizations? A) Tall organizations foster employee morale better than flat organizations, 2) Tal organizations have fewer managers than fat organizations. ©) Tall organizations foster more communication problems than lat organizations. ) Tall organizations place excessive administrative responsibilities on managers than flat organizations. E) Tall organizations fester more praductiviy than flat organizations MGTIO3 FULL1) When compares to tall organizations flat organizations: A) are more expensive. 8) place mare supervisary responsibilties on managers. C) have more layers of managers. D) place minimal administrative responsibilities on managers, ) have lower levels of employee marale and productivity, 1) When compared to flat organizations, tall organizations: A) faster fewer communication problems, 8) foster more employee productivity D) place excessive responsibilities on managers. E) are less bureaucratic, 1) Awide span of management in fat organization may result in @ manager having Aless authority over subordinates 8) more administrative responsibilty C) less accountability toa higher-up D) less supervisory responsibilty E) more officers at diferent levels to report to MGTIO3 FULL