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Business management
QUESTION 1
Which of the following outlines the organization's purpose, assumptions, values, and direction?
Mission
Purpose
Strategic plan
Strategic goal
Tactical goal
2 points
QUESTION 2
Scientific management focuses on
improving the efficiency of the individual worker.
managing the overall organization.
using capital more efficiently.
enhancing the social aspects of the workplace.
creating mathematical models of organization processes.
QUESTION 3
The idea that manufacturing costs per unit decrease as the number of units produced increases is known as
economies of scale.
venture capitalism.
a franchising agreement.
first-mover advantage.
None of these.
QUESTION 4
The component of strategy that indicates how the organization intends to allocate resources is
resource deployment.
scope.
competitive advantage.
synergy.
QUESTION 5
The process of choosing one alternative from among many alternatives is called
satisficing.
problem solving.
bounded rationality.
decision making.
QUESTION 6
Mercedes-Benz sells high quality automobiles at high prices. It uses a(n)
differentiation strategy.
low-cost strategy.
diversification strategy.
related diversification strategy.
BCG strategy.
QUESTION 7
Which of the following is NOT generally considered to be a role performed by small businesses?
Creation of new jobs
Development of new products
Manufacture of materials for large businesses
Distribution of products made by large businesses
Provision of capital for expansion of large businesses
QUESTION 8
Which of the following is a disadvantage of group decision making?
More alternatives are likely to be generated.
More information will be brought to bear on the problem.
More time will be needed to make the decision.
More communication about the decision will result.
All of these.
QUESTION 9
Which of the following is an example of an owner of a business?
Individual investors who buy stock in that business
Partners
People who have legal property rights to that business
Individuals who finance and start up a new business
QUESTION 10
The best alternative is the most ____ alternative.
efficient
controllable
profitable
effective
valid
QUESTION 11
Which of the following decision-making models is based on the belief that human behavior is often imperfect?
Rational
Emotional
Classical
Behavioral
Sequential
QUESTION 12
A disadvantage of using interacting groups to make decisions is
group politics.
a void of expert opinion.
an increase in programmed costs.
faster decision making.
too much brainstorming.
QUESTION 13
Nokia and Samsung make cell phones that operate on the Microsoft system. They operate in the ____ industry.
transportation
manufacturing
retailing
services
wholesaling
QUESTION 14
All of the following are advantages of group decision making EXCEPT
groupthink may occur.
better decisions generally emerge.
enhanced communication may result.
more information and knowledge are available.
QUESTION 15
Facebook operates in which industry?
Construction
Wholesaling
Manufacturing
Services
QUESTION 16
Four friends home from college want to start a moving business to earn money during the summer. To determine whether this is a good idea, they need to find the answer to which of the following questions?
Who are my customers, and where are they?
Who are my competitors, and where are they?
How can I differentiate my product from that of my competitors?
In what quantities and at what price will my customers buy my service?
QUESTION 17
The classical management perspective consists of
scientific management and administrative management.
management science and scientific management.
behavioral management and the operations management.
contemporary management and behavioral management.
contingency management and universal management.
QUESTION 18
Which of the following persons is a manager?
Cardinal Timothy Dolan, Archbishop of New York
Nick Saban, football coach at the University of Alabama
Linda Kaplan Thaler, chief creative officer of Kaplan Thaler Group
Marissa Mayer, CEO of Yahoo
QUESTION 19
Organizations that provide resources to other organizations are known as
suppliers.
competitors.
regulators.
interest groups.
importers.
QUESTION 20
A(n) ____ strategy requires little initial investment, is heavily regulated, and provides little opportunity to modify products for local conditions.
importing/exporting
licensing
joint venture
direct investment
global sourcing
QUESTION 21
All of the following are included in the task environment of organizations EXCEPT
customers.
the economy.
QUESTION 22
"Decision making under risk" means the decision maker
has no data on which to base his or her decision.
is risk-averse, avoiding risky investments.
knows all the risks involved in the decision.
can estimate decision data with some probability.
is making an important decision with long- term consequences.
QUESTION 23
A standing plan that outlines the steps to be followed in a particular circumstance is called a(n)
SOP.
single-use plan.
policy.
contingency plan.
program.
QUESTION 24
Which of the following is NOT one of the reasons for new business failure described in your text?
Sufficient capital
Incompetence
Neglect
Weak control systems
Inexperience
QUESTION 25
Interpersonal skills enable managers
to take an overall view of how the parts of the organization interrelate and to think strategically.
to solve detailed problems for their subordinates.
to understand and interact effectively with others in the organization.
to diagnose organizational problems correctly.
QUESTION 26
Herbert Simon noted that managers generally fail to make rational decisions because they are limited by their own values, skills, habits, and unconscious reflexes as well as by incomplete information. What name did Simon give this phenomenon?
Satisficing
Bounded rationality
Brainstorming
Rational decision making
Decision framing
QUESTION 27
Nike and Reebok are best described as
strategic allies.
QUESTION 28
The first person to identify the managerial functions of planning, organizing, leading, and controlling was
Elton Mayo.
Lillian Gilbreth.
Henri Fayol.
Hugo Munsterberg.
Mary Parker Follett.
QUESTION 29
Strategic goals are set by
first-line managers.
middle managers.
top managers.
stockholders.
QUESTION 30
Using the BCG matrix, SBUs are classified on the basis of
market growth rate and cash generation potential.
market share and market growth rate.
competitive advantage and financial strength.
a strategic business unit and product life cycle.
QUESTION 31
____ skills are needed for specialized tasks within the organization.
Human
Organizational
Conceptual
Technical
QUESTION 32
McGraw Hill operates in publishing and construction. This is an example of ____ diversification.
differentiation
unrelated
single-product
BCG
related
QUESTION 33
The management pioneer who performed the Hawthorne studies at Western Electric was
Henry Gantt.
Frank Gilbreth.
Frederick Taylor.
QUESTION 34
An organization's obligation to protect and enhance the society in which it operates is called
legal responsibility.
ethical responsibility.
social responsibility.
cultural responsibility.
societal responsibility.
QUESTION 35
An entrepreneur does all of the following EXCEPT
operate.
organize.
plan.
assume risk.
hire a professional manager.
QUESTION 36
The primary purpose of the management process is to
develop organizational goals and make logical decisions.
organize the various functions in a logical manner.
ensure that all employees are working together effectively.
achieve organizational goals efficiently and effectively.
make sure things go as planned.
QUESTION 37
How do top managers spend most of their time?
Overseeing day-to-day operations
Routine administrative tasks
Implementing plans of first-line managers
Making decisions and creating goals
Coordinating the work of first-line managers
QUESTION 38
In the classical decision making model, "optimization" means
implementing two or more alternatives simultaneously.
choosing the alternative with the best overall expected outcomes.
gathering the most complete information before making the decision.
reaching a satisfactory level of performance.
QUESTION 39
A written summary of the business strategy and its implementation plan is known as
a niche summary.
a first-mover advantage.
a business plan.
a franchise agreement.
QUESTION 40
The aspects of a business that the firm performs at a higher level than its competitors are known as the firm's
niches.
capital-intensiveness.
distinctive competencies.
strategic weakness.
QUESTION 41
For a Perkins restaurant, which of the following would be considered to be a supplier?
A family of 5
Wendy