Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
File: Chapter 4: Plans and Planning Techniques
Multiple Choice
1. Which of the following is NOT one of the four functions of management?
a) Planning
b) Controlling
c) Organizing
d) Recruiting
2. Which of the following refers to the process of setting goals and objectives and determining
how to accomplish them?
a) Organizing
b) Planning
c) Leading
d) Controlling
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
3. Planning includes:
a) allocating and arranging resources.
b) guiding the efforts of human resources.
c) setting goals and objectives.
d) monitoring task accomplishments.
4. Specific results that one wishes to achieve are referred to as:
a) measurements.
b) plans.
c) objectives.
d) end points.
5. Allocating and arranging resources in order to accomplish tasks is called __________.
a) controlling
b) planning
c) leading
d) organizing
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
6. Guiding and motivating others to achieve high levels of task accomplishment is called
__________.
a) planning
b) organizing
c) leading
d) controlling
7. Sonya’s primary responsibilities include the process of monitoring task accomplishments and
taking corrective action in her department. Sonya is mainly involved in the __________ function
of management.
a) controlling
b) planning
c) leading
d) organizing
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
8. The first step in the planning process involves:
a) getting the mundane, trivial things planned first.
b) focusing on easy goals to build momentum.
c) keeping your eye on the past in order to know what you have accomplished.
d) defining your objectives and knowing where you want to go.
9. Which of the following is the fourth step in the planning process?
a) Implementing a plan
b) Making a plan
c) Defining objectives
d) Developing premises about future conditions
10. Alia, the manager of a pet store, notices that most of the goods that come to her store are
packed in high-quality cardboard boxes which are later discarded. She comes up with a plan and
instructs her employees to use the cardboard boxes for making scratching boards for cats. She
then sells the scratching boards at a price much lower than the other branded versions available
in the market. Which of the following describes Alia’s planning?
a) Action oriented
b) Priority oriented
c) Advantage oriented
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
d) Change oriented
11. Stretch goals are __________.
a) impossible to meet
b) good exercises
c) only for the very best employees
d) difficult and challenging, but achievable
12. A(n) __________ is a statement of intended means for accomplishing objectives.
a) plan
b) schedule
c) objective
d) idea
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
13. Which of the following refers to the process by which one establishes lower-level objectives
in order to meet higher-level objectives?
a) Objective analysis
b) Strategic analysis
c) A hierarchy of objectives
d) A chain of command
14. Objectives should __________.
a) be specific
b) have a lofty goal
c) be a well-kept secret
d) be easily accomplishable
15. Which of the following is NOT an advantage that planning offers?
a) Ensuring success
b) Helping us to sharpen our focus
c) Increasing our flexibility
d) Avoiding complacency
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
16. A(n) __________ sets the stage for controlling in the management process; it is hard to
exercise control if you have not set objectives.
a) good organization
b) good plan
c) inspired workforce
d) planning fallacy
17. Plans that cover a year or less are called __________ plans.
a) medium
b) strategic
c) short-range
d) long-term
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
18. Plans that usually cover three years or more are called __________ plans.
a) medium
b) operational
c) short-range
d) long-range
19. A(n) __________ clarifies the purpose of an organization and expresses what it hopes to be
in the future.
a) budget
b) vision
c) policy
d) procedure
20. Plans that identify the long-term direction for an organization, including a vision of what and
where the organization wants to be in the longer-term, are called __________ plans.
a) extended
b) operational
c) strategic
d) lofty
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
21. Management researcher Elliot Jaques believes that most people work comfortably with
__________ time spans as planning horizons.
a) one-week
b) three-month
c) five-year
d) ten-year
22. Plans that define the various short-term activities needed to implement strategic plans are
called __________ plans.
a) strategic
b) business
c) operational
d) long-term
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
23. A plan covering the production activities of an organization for three months would be an
example of a(n) __________ plan.
a) long-term
b) operational
c) strategic
d) recovery
24. All of the following are functional plans EXCEPT:
a) production plans.
b) marketing plans.
c) human resources plans.
d) strategic plans.
25. Plans that specifically identify how different parts of an organization will contribute to
accomplishing strategic plans are called __________.
a) strategic plans
b) tactical plans
c) financial plans
d) functional plans
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
26. Clara has been working as a waitress in a local cafe for 3 years. She had always dreamt of
opening up her own cafe. On the death of her grandmother, she finds out that her grandmother
has left her a fortune of $15,000. She plans to open a new cafe with the money and hires a
professional team to design her cafe’s layout. Clara is currently engaged in the developing the
________ for the cafe.
a) financial plans
b) facilities plans
c) marketing plans
d) production plans
27. Tim places an online order for a smartphone. Instead, he is shipped a dishwashing liquid
from a brand named Bling by the seller. Tim posts this incident on a social networking site and it
is soon picked up by the media. Richard, the sales manager of Bling, hears about this incident
and plans to use it as an opportunity for creating brand awareness of Bling products.
Accordingly, he makes arrangement to send Tim the smartphone that he had originally ordered
along with two more bottles of Bling dishwashing liquid. When this news reaches the media,
people applaud Bling’s gesture and Richard achieves his goal of creating brand awareness.
Which of the following plans did Richard use in the scenario?
a) Financial plan
b) Facilities plan
c) Tactical plan
d) Production plan
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
28. A standing plan that communicates broad guidelines for employees to use when taking
decisions and actions is called a __________.
a) policy
b) project plan
c) procedure
d) budget
29. __________ plans deal with the methods and technology needed by people in their work.
a) Financial
b) Facilities
c) Production
d) Marketing
30. Which of the following terms precisely describes actions to take in specific situations?
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
a) Policy
b) Project plan
c) Long-term plan
d) Procedure
31. At your university, it is required that all students are expected to follow the guidelines
concerning sexual harassment. This is an example of a:
a) policy.
b) rule.
c) procedure.
d) law.
32. A company poster lists instructions to be followed in case of a fire alarm. This is an example
of a(n) __________.
a) policy
b) directive
c) operating plan
d) procedure
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
33. A plan that commits resources to projects or activities is called a __________.
a) strategy
b) vision
c) policy
d) budget
34. A(n) __________ budget allocates resources as if each budget was brand new.
a) strategic
b) new
c) operating
d) zero-based
35. A ________ budget allows resource allocations to vary with the level of activity.
a) project
b) flexible
c) fixed
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
d) zero-based
36. Sally, a manager at Purple Inc., has just been told that the funds which were left unused in
the previous year’s budget will not carry over into the current year. Thus, Sally will most likely
have to use a __________.
a) project budget
b) flexible budget
c) fixed budget
d) zero-based budget
37. A budget that allocates a specific amount of resources for a specific purpose is called a
__________ budget.
a) project
b) flexible
c) fixed
d) zero-based
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
38. A budget that compares sales or revenues to expenses is called a(n) __________ budget.
a) operating
b) flexible
c) fixed
d) zero-based
39. Maria works for the accounting department of Argon Corp. She has just been told that she
needs to develop a budget to spend $50,000 dollars in the next 12 months. Maria has been asked
to create a(n) __________ budget.
a) operating
b) flexible
c) fixed
d) zero-based
40. Sally, the general manager at Trinkets Inc., has asked the accounting department to prepare a
cash flow versus expenditure plan for the next year. Sally is asking for a __________ budget.
a) financial
b) flexible