94. A quality circle is a group of volunteer employees.
a. 2 to 4
b. 6 to 12
c. 10 to 20
d. 15 to 25
e. 30 to 50
95. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common
work activities is a .
a. feedforward control group
b. work team
c. quality circle
d. committee
e. problem team
96. Heather belongs to an informal group at work that meets twice a month to discuss common issues and problems in
the workplace. Recently, this group has been focusing on ways to improve safety in the workplace. This group is an
example of:
a. a safety group.
b. a quality circle.
c. an ad–hoc committee.
d. a problem team.
e. none of these.
97. Quality circles are based on the assumption(s) that:
a. the people who do the job know it better than anyone else.
b. quality can be increased by increasing the size of the organization.
c. quality can be increased by talking more about it.
d. the more employees talk, the more satisfied they will be.
e. all of these.
98. Which of the following is the process of measuring your organizational process against the best in the industry?
a. Outsourcing
b. Continuous improvement
c. Environmental analysis
d. Benchmarking
e. Competitive measurement
99. Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower
costs?
a. Continuous improvement
b. Cycle time
c. Quality circles
d. Six Sigma
e. Benchmarking
100. Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control
processes, otherwise referred to as DMAIC?
a. Quality circles
b. Six Sigma
c. Benchmarking
d. Balanced scorecard
e. Continuous improvement
101. It seems that once a year the managers of Stone Construction, Inc. attempt a major organization intervention, such
as management-by-objectives. They never seem to be satisfied with the performance of Stone Construction and,
sure enough, 12 months later, along comes another major intervention. By implementing organizational change in
this way, Stone Construction’s management may well be violating the principle of:
a. benchmarking.
b. continuous improvement.
c. unity of direction.
d. top-down control.
e. none of these.
102. is(are) most beneficial when employees have challenging jobs.
a. Six Sigma
b. Total Quality Management
c. Kaizen
d. Quality circles
e. Continuous improvement
103. Contingency factors that can influence the success of a TQM program in a positive way include all of the following
EXCEPT:
a. tasks make high skill demands on employees.
b. TQM serves to enrich jobs and motivate employees.
c. problem-solving skills are improved for all employees.
d. participation and teamwork are used to tackle significant problems.
e. managers wait for big, dramatic innovations.
104. standards represent an international standard for quality management.
a. ISO 9000
b. Six Sigma
c. TQM
d. Kiazan
e. Foreign Economy Index
105. A contingency factor that can influence the success of a TQM program in a negative way is that:
a. continuous improvement is a way of life.
b. TQM serves to enrich jobs and motivate employees.
c. problem-solving skills are improved for all employees.
d. participation and teamwork are used to tackle significant problems.
e. union leaders are left out of QC discussions.
106. Contingency factors that can influence the success of a TQM program in a negative way include all of the
following EXCEPT:
a. tasks make high skill demands on employees.
b. management expectations are unrealistically high.
c. middle managers are dissatisfied about loss of authority.
d. workers are dissatisfied with other aspects of organizational life.
e. managers wait for big, dramatic innovations.
107. Which of these is based on a set of international standards for quality?
a. Quality circle
b. Corporate governance
c. ISO certification
d. Open-book management
e. Balance scorecard
108. Which of the following refers to the system of governing an organization so that the interests of corporate owners
are protected?
a. Quality circle
b. Corporate governance
c. ISO certification
d. Open-book management
e. Balance scorecard
109. Which of these budgets will provide Katrina information about planned investments in major assets like buildings
and heavy machinery?
a. Cash budget
b. Revenue budget
c. Capital budget
d. Expense Budget
e. Balance-Sheet budget
110. In planning and budgeting for the next 12 months, Katrina is participating in a budgeting process in which lower-
level manager’s budget their department’s resource needs and pass them up to top management for approval. This
budget process is an example of:
a. zero–based budgeting.
b. bottom-up budgeting.
c. top-down budgeting.
d. balance sheet budgeting.
e. none of these.
111. Katrina has also requested that the financial ratios be calculated and analyzed for her. Which of the following ratios
will give her the best information for evaluating liquidity?
a. Profit margin on sales
b. Current ratio
c. Conversion ratio
d. Return on assets
e. None of these.
112. The systematic process through which managers regulate organizational activities is known as .
113. focuses on whether performance meets established standards.
114. When deviates from a(n) , managers must interpret the deviation.
115. A(n) includes anticipated and actual expenses for each responsibility center and for the total organization.
116. A(n) lists forecasted and actual revenues of the organization.
117. The estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization
has sufficient cash to meet its obligations.
118. The lists planned investments in major assets such as buildings, trucks, and heavy machinery, often involving
expenditures over more than a year.
119. In a traditional approach, budgeted amounts for the coming year are imposed on middle– and lower-level
managers.
120. A budgeting process in which middle and lower-level managers set departmental budget targets in accordance with
overall company revenues and expenditures specified by top management is called budgeting.
121. A budgeting process in which lower-level managers budget their departments’ resource needs and pass them up to
top management for approval is called budgeting.
122. The provides three types of information: assets, liabilities, and owners’ equity.
123. The firm’s financial performance for a given time period is shown on the .
124. A(n) ratio indicates an organization’s ability to meet its current debt obligations.
125. A(n) ratio measures internal performance with respect to key activities defined by management.
126. The percentage representing what a company earned from its assets is called .
127. involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of
authority, written documentation, reward systems, and other formal mechanisms.
128. control uses cultural values, traditions, shared beliefs, and trust to generate compliance with organizational
goals.
129. Sharing financial information and results with all employees in the organization is called management.
130. An organization wide commitment to infusing quality into every activity through continuous improvement is called
_____.
131. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common
work activities is known as a(n) .
132. The continuous process of measuring products, services, and practices against major competitors or industry
leaders is called .
133. The implementation of a large number of small, incremental improvements in all areas of the organization on an
ongoing basis is referred to as .
134. refers to the system of governing an organization so that the interests of corporate owners are protected.
135. List the four major perspectives of a balanced scorecard.
136. List the four steps in the feedback control model.
137. Identify and briefly describe the four steps of the feedback control model.
138. Discuss the evolution of the balanced scorecard from a system that places equal emphasis on performance
management categories to one that emphasizes cause and effect.
139. Describe the difference between a balance sheet and an income statement.
140. Identify and briefly describe each of the common financial ratios addressed in your text.
141. Compare hierarchical control with decentralized control.
142. Discuss open–book management and the balanced scorecard.
143. In a TQM program, what is benchmarking?
144. Discuss the positive and negative factors that can influence the success of a TQM program.