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c) fixed
d) zero-based
41. The process of predicting what will happen in the future is called:
a) contingency planning.
b) scenario planning.
c) forecasting.
d) zero-based budgeting.
42. Qualitative approaches to forecasting generally use:
a) statistical analysis of historical data.
b) mathematical models.
c) expert opinions.
d) surveys.
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43. Jake has been appointed as the new CEO of Zorv Inc., a multinational computer technology
company. While formulating a new plan for the company under his management, Jake uses
mathematical models and statistical analysis of past data and surveys to predict potential
problems and opportunities in the near future. Jake’s method of predicting the future best reflects
__________.
a) scenario planning
b) contingency planning
c) quantitative forecasting
d) qualitative forecasting
44. Which of the following refers to the process of developing alternative plans in anticipation of
having problems with implementing the existing plan?
a) Contingency planning
b) Forecasting
c) Scenario planning
d) Budgeting
45. Trynx Inc., a bicycle manufacturing company, is set to launch a new bicycle with gears.
Ryan, the CEO of Trynx, asks the sales manager to come up with an alternative plan in case the
new product fails in the market. He also asks the production manager to come with an alternative
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
plan in case the new product’s demand increases beyond the production capacity. Ryan has
asked the managers to engage in __________.
a) scenario planning
b) financial planning
c) resource planning
d) contingency planning
46. The president of Virtual Products LLC is concerned about the next year’s economic outlook.
Even though next year’s plan has been laid out, he has requested his staff to generate another
plan that assumes a 10% reduction in sales. This is an example of __________.
a) contingency planning
b) forecasting
c) operation planning
d) budgeting
47. Which of the following terms can be best described as identifying possible future situations
and plans for dealing with them?
a) Contingency planning
b) Forecasting
c) Scenario planning
d) Budgeting
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48. __________ is a technique that makes use of external comparisons to evaluate current
performance.
a) Forecasting
b) Benchmarking
c) Allocating
d) Justifying
49. __________ are methods that lead to superior performance.
a) Best practices
b) Complacency traps
c) Operating procedures
d) Forecasting
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50. Involving others, particularly those who implement the plan, in the planning process is called
__________.
a) groupthink
b) marketing research
c) participatory planning
d) selecting alternatives
True/False
51. Leading consists of guiding the efforts of human resources to ensure high levels of task
accomplishment.
52. One of the critical pieces of the planning effort is defining objectives.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
53. Each level of the organization should create their plans independently in order to be
responsive to the varying needs at each level.
54. Short-range plans focus only on two to three months into the future.
55. The purpose of strategic plans is to support tactical plans.
56. Strategic plans define what specific work units need to do in order for the organization to
move ahead.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
57. A policy describes exactly what actions should be taken in specific situations.
58. If a forecast is carefully created, it can be relied upon to accurately predict the future.
59. Contingency planning identifies alternate courses of action to be implemented in order to
meet changing circumstances.
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60. One effective way to build commitment to the implementation of a plan is to involve the
people who will have to do the implementing in the creation of the plan.
Fill-in-the-Blank
61. __________ is the process of setting goals and objectives and determining how to
accomplish them.
62. __________ are specific results that one wishes to achieve.
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63. The term __________ can be described as being lulled into inaction by current successes or
failures.
64. In order to get the best performance out of your organization, you should use __________
goals to encourage extra effort.
65. Effective planning ensures that each level’s goals support the goals of the next higher level,
thus fitting into a(n) _____ of objectives.
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66. Underestimating the time required to complete a task is known as __________.
67. A(n) __________ clarifies the purpose of an organization and expresses what it hopes to be
in the future.
68. __________ are developed to implement strategic plans.
69. A(n) __________ communicates broad guidelines for making decisions and taking action.
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70. __________ plans deal with the requirements of selling and distributing goods or services.
71. A plan that commits resources to projects or activities is called a(n) __________.
72. A(n) __________ budget involves approaching each budget cycle as if it were new, starting
from scratch each time.
73. __________ is the process that attempts to predict the future.
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74. __________ are the activation signals for implementing contingency plans.
75. A planning technique that utilizes external comparisons to better evaluate current internal
processes is called __________.
Essay
76. Explain the hierarchy of objectives.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
77. Explain the concept of a zero-based budget.
78. What is scenario planning?
79. How does planning fit into the four basic functions of management?
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80. What are the four functions of management? Describe each of them.
81. State and discuss at least three reasons for planning and the benefits of each.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
82. Distinguish between strategic plans and operational plans.
83. Define the terms policy and procedure.