Chapter 6 1 Which of the following would be included under the definition of a manager

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

Chapter 06: Managing the Business Enterprise

1. Which of the following would be included under the definition of a manager?

a. President of IBM

b. Prime Minister of Canada

c. Head of the business department at a local college

d. Shipping dock foreman

e. All of these would be included

Difficulty: 1 Page-Reference: 182

Question ID: 06-1-01 Skill: Comprehension

Objective: 6.1

2. The president of Bob’s Barbecue is reassessing his company’s goals with the expectation that the

company’s strategy will be modified. He is involved in ________.

a. staffing

b. planning

c. directing

d. organizing

e. controlling

Difficulty: 1 Page-Reference: 183

Question ID: 06-1-02 Skill: Comprehension

Objective: 6.1

3. Managers at Edson Corp. have decided to embark on a systematic planning process. What should

they do first?

a. Determine how well employees understand the current plan.

b. Establish goals for the organization.

c. Determine whether a gap exists between the company’s desired and actual positions.

d. Develop plans to achieve the desired goal.

e. Implement new plans.

Difficulty: 1 Page-Reference: 183

Question ID: 06-1-03 Skill: Application

Objective: 6.1

4. The executive team at Marlon Corp. is involved in a systematic planning process. The first thing

they did was to establish goals for the organization. What should they do next?

a. Convey the new goals to employees.

b. Assess the feasibility of achieving the new goals.

c. Determine whether a gap exists between the company’s desired and actual positions.

d. Develop plans to achieve the new goals.

e. Implement new plans.

Difficulty: 1 Page-Reference: 183

Question ID: 06-1-04 Skill: Application

Objective: 6.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

5. Executives at Blendon Corp. are trying to determine what went wrong with a major project that

recently failed. There were problems in every area of management (planning, organizing, leading, and

controlling). Which of the following would MOST strongly suggest that there were failures in planning?

a. Two employees who were put on the project couldn’t stand each other.

b. The controlling problems the project experienced were commonly experienced by other project

leaders in this industry.

c. Suppliers of components for the project had to produce at maximum capacity.

d. There was a failure to monitor production output.

e. Even if planning had been effective, the project would have failed because of controlling problems.

Difficulty: 1 Page-Reference: 183

Question ID: 06-1-05 Skill: Analysis

Objective: 6.1

6. Determining what a firm needs to do and how best to accomplish that is called

a. controlling.

b. staffing.

c. directing.

d. planning.

e. organizing.

Difficulty: 1 Page-Reference: 183

Question ID: 06-1-06 Skill: Knowledge

Objective: 6.1

7. Which of the following best captures the difference between efficiency and effectiveness?

a. Efficiency means doing what the company’s engineers want, while effectiveness means doing

what consumers want.

b. Efficiency means maximizing output, while effectiveness means maximizing profit.

c. Efficiency means doing things right, while effectiveness means doing the right things.

d. Efficiency means doing what production wants, while effectiveness means doing what the

marketing department wants.

e. Efficiency means working as fast as possible, while effectiveness means working smart.

Difficulty: 1 Page-Reference: 182

Question ID: 06-1-07 Skill: Comprehension

Objective: 6.1

8. The purpose of the four-part management process is to

a. determine what the organization needs to do.

b. create jobs for society.

c. monitor the organization’s performance in order to ensure that goals are achieved.

d. increase employee satisfaction.

e. achieve the organization’s goals of supplying various products and services to society.

Difficulty: 2 Page-Reference: 182

Question ID: 06-1-08 Skill: Comprehension

Objective: 6.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

9. ________ involves determining what the business needs to do and the best way to achieve it.

a. Organizing

b. Planning

c. Leading

d. Controlling

e. None of these

Difficulty: 1 Page-Reference: 183

Question ID: 06-1-09 Skill: Knowledge

Objective: 6.1

10. Which of the following is supported by Mintzberg’s research on chief executive officers?

a. Managerial activities are characterized by variety.

b. Managers work at an unrelenting pace.

c. Managers prefer verbal media.

d. Managers prefer live action.

e. All of these are supported.

Difficulty: 2 Page-Reference: 185

Question ID: 06-1-10 Skill: Comprehension

Objective: 6.1

11. With respect to the concepts of management roles and management functions, it is correct to say

that

a. focusing on management functions is a more effective way to view management than focusing on

management roles.

b. the idea of management roles is more relevant for private sector companies, and the idea of

management functions is more relevant for government organizations.

c. managers who focus on roles have more highly satisfied subordinates than managers who focus on

functions.

d. management functions give us a good general idea of what managers do, while management roles

give us an understanding of the specific details of managerial work.

e. all of these are correct.

Difficulty: 2 Page-Reference: 185-186

Question ID: 06-1-11 Skill: Comprehension

Objective: 6.1

12. If a manager attends a subordinate’s wedding, this is an example of the ________ role.

a. liaison

b. entrepreneur

c. figurehead

d. leader

e. disseminator

Difficulty: 1 Page-Reference: 185

Question ID: 06-1-12 Skill: Comprehension

Objective: 6.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

13. When a manager responds to a strike at a supplier, the manager is acting in the ________ role.

a. disturbance handler

b. liaison

c. monitor

d. resource allocator

e. leader

Difficulty: 1 Page-Reference: 185

Question ID: 06-1-13 Skill: Comprehension

Objective: 6.1

14. In terms of Mintzberg’s managerial roles, the person responsible for the work of the unit is a

a. disturbance handler.

b. negotiator.

c. leader.

d. spokesperson.

e. liaison.

Difficulty: 1 Page-Reference: 185

Question ID: 06-1-14 Skill: Knowledge

Objective: 6.1

15. Ronald Koslowsky, a marketing manager at Wintron Co., receives a telephone call from LeRoy

Shelton, a marketing manager at Young-Times Inc. The two chat socially, occasionally talking about

different parts of their work. This is an example of a manager operating in Mintzberg’s ________ role.

a. disseminator

b. spokesperson

c. liaison

d. negotiator

e. resource allocator

Difficulty: 2 Page-Reference: 185

Question ID: 06-1-15 Skill: Comprehension

Objective: 6.1

16. Tom Smith Jr., a manager responsible for hockey stick tape production at StickStuck Corp.,

spontaneously tours the plant to check on what’s going on. By so doing, Tom is functioning in Mintzberg’s

________ role.

a. resource allocator

b. monitor

c. figurehead

d. leader

e. liaison

Difficulty: 2 Page-Reference: 185

Question ID: 06-1-16 Skill: Comprehension

Objective: 6.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

17. Jack Leutens, senior manager of marketing research at Tromex Enterprises, calls in seven of his

subordinates to brief them on his recent research findings regarding new machinery that might be

relevant for Tromex. This is an example of a manager functioning in the role Mintzberg called the

a. leader.

b. disseminator.

c. monitor.

d. spokesman.

e. resource allocator.

Difficulty: 2 Page-Reference: 185

Question ID: 06-1-17 Skill: Comprehension

Objective: 6.1

18. “Ms. Jensen, there’s someone here from the radio station to interview you about the explosion.”

Ms. Jensen is about to function in the role Mintzberg described as

a. monitor.

b. disseminator.

c. spokesperson.

d. resource allocator.

e. leader.

Difficulty: 1 Page-Reference: 185

Question ID: 06-1-18 Skill: Comprehension

Objective: 6.1

19. Midge thought anxiously about how to position her company for the future. By so doing, Midge

functioned in the role Mintzberg called

a. negotiator.

b. spokesperson.

c. entrepreneur.

d. resource allocator.

e. figurehead.

Difficulty: 2 Page-Reference: 186

Question ID: 06-1-19 Skill: Comprehension

Objective: 6.1

20. “Hey Reg! I just caught two kids shoplifting! What do I do now?” the assistant manager said to his

boss, Reg Caluza. Reg was about to function in the role Mintzberg identified as the

a. spokesperson.

b. figurehead.

c. disturbance handler.

d. resource allocator.

e. monitor.

Difficulty: 2 Page-Reference: 186

Question ID: 06-1-20 Skill: Comprehension

Objective: 6.1

21. Cecil and Cyrus, two of Simpson’s top employees, stormed into their manager’s office. Both were

intent on securing approval from her for projects they were proposing for the company. Shelly Simpson,

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

manager at Soho, Howso, Tatso & Associates, was about to function in the role Mintzberg identified as

the

a. resource allocator.

b. entrepreneur.

c. figurehead.

d. liaison.

e. monitor.

Difficulty: 2 Page-Reference: 186

Question ID: 06-1-21 Skill: Comprehension

Objective: 6.1

22. Burton Kawalski, Vice President of Personnel at QVJ Corporation, sat down at the bargaining

table across from the leader of the union, Vladmir Ramonovitch. Burton’s expertise in the managerial role

Mintzberg called ________ was about to be tested.

a. entrepreneur

b. liaison

c. disseminator

d. figurehead

e. negotiator

Difficulty: 2 Page-Reference: 186

Question ID: 06-1-22 Skill: Comprehension

Objective: 6.1

23. “Excuse me,” the secretary said. “Don’t you have a 3:30 appointment to present a gold watch to

Mr. Chung?” The manager froze in her tracks, realized the secretary was correct, and immediately began

preparing herself to fulfill the managerial role identified by Mintzberg as

a. figurehead.

b. leader.

c. disseminator.

d. liaison.

e. entrepreneur.

Difficulty: 2 Page-Reference: 185

Question ID: 06-1-23 Skill: Comprehension

Objective: 6.1

24. The first step in the control process is to

a. establish standards.

b. determine the jobs to be performed.

c. determine what the organization needs to do.

d. measure performance.

e. define the problem.

Difficulty: 1 Page-Reference: 184

Question ID: 06-1-24 Skill: Knowledge

Objective: 6.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

25. Determining the best way to arrange a business‘s resources and activities into a proper structure

is

a. staffing.

b. controlling.

c. directing.

d. planning.

e. organizing.

Difficulty: 1 Page-Reference: 184

Question ID: 06-1-25 Skill: Comprehension

Objective: 6.1

26. When the CEO of Compaq Computers broke the company down into several smaller units, each

being responsible for its own functions, he was engaging in the management function of

a. organizing.

b. staffing.

c. planning.

d. controlling.

e. directing.

Difficulty: 2 Page-Reference: 184

Question ID: 06-1-26 Skill: Comprehension

Objective: 6.1

27. Guiding and motivating employees to meet an organization’s objectives is called

a. controlling.

b. planning.

c. organizing.

d. leading.

e. staffing.

Difficulty: 1 Page-Reference: 184

Question ID: 06-1-27 Skill: Knowledge

Objective: 6.1

28. Scott is the store manager at one of the Computers R Us retail stores. Each Monday he meets

with all the employees to review the assignments for the week and provide assistance for those who need

it. Scott is engaged in the management process of

a. planning.

b. organizing.

c. controlling.

d. staffing.

e. leading.

Difficulty: 2 Page-Reference: 184

Question ID: 06-1-28 Skill: Comprehension

Objective: 6.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

29. A(n) ________ is a plan that is decided by a firm’s top management, and that reflects the

company’s priorities, as well as the steps needed to meet strategic goals.

a. tactical plan

b. operational plan

c. standing plan

d. strategic plan

e. single-use plan

Difficulty: 2 Page-Reference: 183

Question ID: 06-1-29 Skill: Knowledge

Objective: 6.1

30. The management process of monitoring a firm’s performance to make sure that it is meeting its

goals is known as

a. directing.

b. planning.

c. staffing.

d. controlling.

e. organizing.

Difficulty: 1 Page-Reference: 184

Question ID: 06-1-30 Skill: Knowledge

Objective: 6.1

31. Scott, the manager of a Computers R Us store, in reviewing the sales results from last week

noticed that all but one employee was on target. As he contemplated how to fix the problem he was

engaged in the management process of

a. controlling.

b. organizing.

c. planning.

d. directing.

e. staffing.

Difficulty: 2 Page-Reference: 184

Question ID: 06-1-31 Skill: Comprehension

Objective: 6.1

32. The four-part management process includes

a. planning, organizing, leading, and decision making.

b. planning, decision making, target establishment, and comparison of performance to the standard.

c. organizing, planning, leading, and controlling.

d. leading, organizing, controlling, and goal establishment.

e. planning, controlling, leading, and decision making.

Difficulty: 2 Page-Reference: 182

Question ID: 06-1-32 Skill: Knowledge

Objective: 6.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

33. Which of the following is not supported by Mintzberg’s research on chief executive officers?

a. Managers work at an unrelenting pace.

b. Managers prefer “live” action.

c. Managerial activities are characterized by brevity.

d. Managers are attracted to the verbal media.

e. Managerial activities are characterized by a lack of variety.

Difficulty: 2 Page-Reference: 185

Question ID: 06-1-33 Skill: Comprehension

Objective: 6.1

34. Mintzberg believes that there are three categories of roles that managers perform. They are

a. inspirational, managerial, interpersonal.

b. interpersonal, informational, decision-making.

c. managerial, interpersonal, decision-making.

d. managerial, interpersonal, informational.

e. decision-making, inspirational, informational.

Difficulty: 2 Page-Reference: 185-186

Question ID: 06-1-34 Skill: Comprehension

Objective: 6.1

35. When Millie was appointed president of Goodcare Hospital, she noticed that the former president

had all the major functions reporting directly to him. She is analyzing the functions to see how they could

be restructured to be more efficient. She is engaged in the management process of

a. planning.

b. staffing.

c. organizing.

d. directing.

e. controlling.

Difficulty: 2 Page-Reference: 185

Question ID: 06-1-35 Skill: Comprehension

Objective: 6.1

36. When the CEO of a company monitors the engineers’ performance to make sure that they are on

track to reach their goals, he is

a. leading.

b. planning.

c. staffing.

d. controlling.

e. organizing.

Difficulty: 2 Page-Reference: 185

Question ID: 06-1-36 Skill: Comprehension

Objective: 6.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

37. Vice president, treasurer, chief executive officer, and president are positions found at the

________ level of management.

a. first-line

b. intermediate

c. top

d. middle

e. officer

Difficulty: 1 Page-Reference: 187

Question ID: 06-1-37 Skill: Knowledge

Objective: 6.2

38. The title “Division Manager” is an example of a ________ management position.

a. lower

b. middle

c. liaison

d. first-line

e. top

Difficulty: 1 Page-Reference: 187

Question ID: 06-1-38 Skill: Comprehension

Objective: 6.2

39. Top-level managers are responsible for all of the following except

a. the overall performance of the organization.

b. formulating strategies.

c. representing the organization in its dealings with other organizations.

d. implementing policies.

e. dealing with the external environment.

Difficulty: 1 Page-Reference: 187

Question ID: 06-1-39 Skill: Comprehension

Objective: 6.2

40. Middle managers typically have the following job titles except

a. general manager.

b. operations manager.

c. plant manager.

d. production supervisor.

e. division manager.

Difficulty: 1 Page-Reference: 187

Question ID: 06-1-40 Skill: Comprehension

Objective: 6.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

41. Plant manager, operations manager, and division manager are at the ________ management

level.

a. top

b. officer

c. first-line

d. intermediate

e. middle

Difficulty: 1 Page-Reference: 187

Question ID: 06-1-41 Skill: Knowledge

Objective: 6.2

42. Supervisor, office manager, and group leader are at the ________ management level.

a. middle

b. officer

c. top

d. intermediate

e. first-line

Difficulty: 1 Page-Reference: 187

Question ID: 06-1-42 Skill: Knowledge

Objective: 6.2

43. The development, pricing, promotion, and distribution of a product is the responsibility of

a. first-level managers.

b. financial managers.

c. human resource managers.

d. marketing managers.

e. operations managers.

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-43 Skill: Knowledge

Objective: 6.2

44. Companies like Procter & Gamble, Coca-Cola, and Levi Strauss have a particularly strong need

for ________ managers.

a. human resources

b. information

c. finance

d. operations

e. marketing

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-44 Skill: Comprehension

Objective: 6.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

45. The hiring, training, evaluation, and compensation of employees is the responsibility of

a. research and development managers.

b. operations managers.

c. vice-presidents.

d. human resource managers.

e. supervisors.

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-45 Skill: Knowledge

Objective: 6.2

46. The ________ of a firm spend most of their time working with and managing the employees who

report to them.

a. middle managers

b. officers

c. top managers

d. intermediate managers

e. first-line managers

Difficulty: 1 Page-Reference: 189

Question ID: 06-1-46 Skill: Knowledge

Objective: 6.2

47. The ________ manager is responsible for getting the product from the producer to the consumer.

a. information

b. human resources

c. finance

d. operations

e. marketing

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-47 Skill: Knowledge

Objective: 6.2

48. The ________ managers are responsible for planning and overseeing the firm’s accounting

function and publication of the annual report.

a. marketing

b. financial

c. operations

d. human resources

e. information

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-48 Skill: Knowledge

Objective: 6.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

49. The ________ manager helps hire and train employees as well as determine compensation.

a. marketing

b. finance

c. information

d. operations

e. human resources

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-49 Skill: Knowledge

Objective: 6.2

50. ________ managers design and implement systems to gather, organize, and distribute data.

a. Information

b. Finance

c. Operations

d. Human resources

e. Marketing

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-50 Skill: Knowledge

Objective: 6.2

51. John is the manager who is responsible for production, inventory, and quality control. He is a(n)

__________ manager.

a. operations

b. finance

c. human resources

d. marketing

e. information

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-51 Skill: Comprehension

Objective: 6.2

52. Jackie is responsible for hiring, training, development, and evaluation of employees. She is

a. a research and development manager.

b. a human resource manager.

c. a supervisor.

d. an operations manager.

e. a marketing manager.

Difficulty: 1 Page-Reference: 188

Question ID: 06-1-52 Skill: Comprehension

Objective: 6.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

53. Technical skills are especially important for

a. middle level managers.

b. members of the board of directors.

c. top level managers.

d. company presidents.

e. first-line managers.

Difficulty: 1 Page-Reference: 189

Question ID: 06-1-53 Skill: Comprehension

Objective: 6.3

54. The ability to type, to create a spreadsheet, or to write a computer program are examples of

which basic skill?

a. Decision-making

b. Conceptual

c. Human relations

d. Time-management

e. Technical

Difficulty: 1 Page-Reference: 189

Question ID: 06-1-54 Skill: Comprehension

Objective: 6.3

55. A study by Google found that technical expertise ranked last among a list of eight “Habits of

Highly Effective Google Managers.” What was at the top of the list?

a. Bosses who had a strong concern for social responsibility and ethics.

b. Bosses who completed their work in a timely fashion.

c. Bosses who did what they promised.

d. Bosses who were even-tempered who made time for one-on-one meetings, and who helped

subordinates work through problems.

e. Bosses who protected their employees from harassment by managers in other divisions.

Difficulty: 1 Page-Reference: 189

Question ID: 06-1-55 Skill: Knowledge

Objective: 6.3

56. The technical skills, human relations skills, and conceptual skills of managers

a. shift in their degree of importance as the manager rises to the top of the organization.

b. shift so that the technical skills become more important to the higher level manager.

c. retain the same degree of importance as a manager progresses “up the organization ladder” to the

top.

d. shift so that the conceptual skills become less important to the higher level manager.

e. shift so that human relations skills become more important than conceptual skills to the higher level

manager.

Difficulty: 2 Page-Reference: 189

Question ID: 06-1-56 Skill: Comprehension

Objective: 6.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

57. Which is the skill that top-level managers use more than first-level managers?

a. Strategy

b. Technical

c. Human relations

d. Conceptual

e. Marketing

Difficulty: 2 Page-Reference: 189

Question ID: 06-1-57 Skill: Comprehension

Objective: 6.3

58. Martin is the CEO of Carter Inc. He has found that he must have the ability to think in the abstract,

to diagnose and analyze different situations, and to see beyond what is known in the present. Martin’s job

requires ________ skill.

a. technical

b. intuition

c. conceptual

d. human relations

e. decision making

Difficulty: 1 Page-Reference: 190

Question ID: 06-1-58 Skill: Comprehension

Objective: 6.3

59. Selection of the best course of action in a particular situation is known as

a. organizing.

b. planning.

c. management.

d. decision making.

e. controlling.

Difficulty: 2 Page-Reference: 190

Question ID: 06-1-59 Skill: Knowledge

Objective: 6.3

60. The ________ skills are those needed to perform specialized tasks.

a. time-management

b. technical

c. human relations

d. conceptual

e. decision-making

Difficulty: 1 Page-Reference: 189

Question ID: 06-1-60 Skill: Knowledge

Objective: 6.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

61. The basic management skill that deals with understanding and getting along with people is

a. conceptual.

b. technical.

c. human relations.

d. decision-making.

e. time-management.

Difficulty: 1 Page-Reference: 189

Question ID: 06-1-61 Skill: Knowledge

Objective: 6.3

62. Two executives at Lexar Corp. are having a disagreement about the managerial skills needed by

the person who will be hired to head up an important software development project. Executive A argues

that the person must be very knowledgeable about the latest technology that is relevant for the project,

but Executive B says that the person who heads up the project must have strong conceptual skills. These

two executives are MOST likely disagreeing about which of the following questions?

a. Does the manager need to have any technical skills?

b. Are conceptual skills more important than human relations skills?

c. Would it be a bad decision to choose a person with good technical skills but poor conceptual skills?

d. Is it a good idea to require strong conceptual skills when choosing a manager for a project?

e. Is it likely that the project requirements will change after the project is under way?

Difficulty: 1 Page-Reference: 188-189

Question ID: 06-1-62 Skill: Analysis

Objective: 6.3

63. Two executives at Lexar Corp. are having a disagreement about the managerial skills needed by

the person who will be hired to head up an important software development project. Executive A argues

that the person must have strong technical skills and be very knowledgeable about the latest technology

that is relevant for the project, but Executive B says that the person who heads up the project must first

and foremost have strong conceptual skills. Which of the following statements is MOST similar to the

reasoning employed by Executive A?

a. The technical requirements may change as the project develops. Because of that, a project

leader should be chosen who is very versatile in terms of skills.

b. Since it is obvious that we have a lot of office furniture to move, we should get the largest truck

possible.

c. Because the project that is planned requires both human relations and conceptual skills, we should

hire two managers, one with strong human relations skills and one with strong conceptual skills.

d. If we choose a site for our sales conference that is close to our workplace we would save on travel

costs, but some employees would probably prefer to travel to some exotic location that is far away. We

can’t meet both those goals, so let’s focus on the goal that is easiest to accomplish.

e. We want the design of our new office building to impress visitors, but we can’t possibly let that be

the dominant factor in our decision since we only get a few visitors. So, we should save money by

choosing an energy-efficient design for the building.

Difficulty: 1 Page-Reference: 189-190

Question ID: 06-1-63 Skill: Analysis

Objective: 6.3

64. Two executives at Lexar Corp. are having a disagreement about the managerial skills needed by

the person who will be chosen to head up an important software development project. Executive A argues

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

that the person must have strong technical skills and be very knowledgeable about the latest technology

that is relevant for the project, but Executive B says that the person who heads up the project must first

and foremost have strong conceptual skills in order to effectively manage the project. Which of the

following would weaken Executive A’s argument?

a. The project manager with the weakest technical skills also has the weakest human relations

skills.

b. The project is very large and time-consuming, so the project manager won’t be able to take on any

other projects until this project is completed.

c. The project is complex and has unusual requirements.

d. The project manager with the strongest technical skills in the company has no experience with an

important technology that is part of the project.

e. The project manager with the strongest conceptual skills in the company has the weakest technical

skills.

Difficulty: 1 Page-Reference: 189-190

Question ID: 06-1-64 Skill: Analysis

Objective: 6.3

65. Because many managers are paid large sums of money, the ________ skill is particularly

important.

a. conceptual

b. technical

c. human relations

d. decision-making

e. time-management

Difficulty: 1 Page-Reference: 190

Question ID: 06-1-65 Skill: Knowledge

Objective: 6.3

66. Jim wants to apply the rational decision-making process to a management problem he is facing.

He has already recognized and defined the decision-making situation. What should he do next?

a. Select the best alternative

b. Identify alternatives

c. Evaluate alternatives

d. Implement the chosen alternative

e. Follow up and evaluate the results

Difficulty: 2 Page-Reference: 191

Question ID: 06-1-66 Skill: Application

Objective: 6.3

67. Marilyn is involved in making an important decision regarding the purchase of new equipment for

her company’s only manufacturing plant. She has just identified several alternatives that will solve the

problem that is facing her. What should she do next?

a. Select the best alternative

b. Identify alternatives

c. Evaluate alternatives

d. Implement the chosen alternative

e. Follow up and evaluate the results

Difficulty: 2 Page-Reference: 191

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

Question ID: 06-1-67 Skill: Application

Objective: 6.3

68. When Boeing and Airbus were trying to decide how they should respond to the question of how

they could increase their international capacity, they were in what stage of the rational decision-making

process?

a. Select the best alternative

b. Identify alternatives

c. Evaluate alternatives

d. Implement the chosen alternative

e. Follow up and evaluate the results

Difficulty: 2 Page-Reference: 191

Question ID: 06-1-68 Skill: Comprehension

Objective: 6.3

69. When Airbus decided to develop and manufacture a new jumbo jet to meet the demand for

increased international travel, it was involved in what stage of the rational decision–making process?

a. Select the best alternative

b. Identify alternatives

c. Evaluate alternatives

d. Implement the chosen alternative

e. Follow up and evaluate the results

Difficulty: 1 Page-Reference: 191

Question ID: 06-1-69 Skill: Comprehension

Objective: 6.3

70. When people take certain actions as they try to get the outcomes they want, this is known as

a. intuition.

b. quantitative analysis.

c. organizational politics.

d. escalation of commitment.

e. risk propensity.

Difficulty: 1 Page-Reference: 193

Question ID: 06-1-70 Skill: Knowledge

Objective: 6.3

71. Expo ’86, the world’s fair that was held in British Columbia, is cited as an example of

a. good use of intuition.

b. quantitative analysis.

c. organizational politics.

d. escalation of commitment.

e. risk propensity.

Difficulty: 1 Page-Reference: 193-194

Question ID: 06-1-71 Skill: Comprehension

Objective: 6.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

72. What does the term “escalation of commitment” mean?

a. As a project proceeds toward successful completion, managers make an increased commitment

to doing a good job.

b. It means the actions that managers take as they try to get the outcomes they desire.

c. As a project proceeds, managers become increasingly committed to it even if there is evidence that

it is not working out as planned.

d. It refers to how much a manager is willing to gamble when making decisions.

e. None of these.

Difficulty: 1 Page-Reference: 193-194

Question ID: 06-1-72 Skill: Comprehension

Objective: 6.3

73. What is the primary purpose of setting a goal for an organization?

a. It determines if the firm is highly leveraged.

b. It makes workers think in quantitative terms.

c. It identifies threats and opportunities.

d. It assures successes for the firm.

e. It provides guidance and direction for all managers.

Difficulty: 1 Page-Reference: 194-195

Question ID: 06-1-73 Skill: Comprehension

Objective: 6.4

74. Port Metro Vancouver’s successful reduction of container “dwell time” illustrates which basic

purpose of goal setting?

a. Goal setting provides direction, guidance, and motivation for managers.

b. Goal setting helps firms allocate resources.

c. Goal setting helps to define corporate culture.

d. Goal setting helps managers assess performance.

e. None of the above.

Difficulty: 1 Page-Reference: 195

Question ID: 06-1-74 Skill: Comprehension

Objective: 6.4

75. General Electric’s goal to have each of its divisions be #1 or #2 in its industry illustrates which

basic purpose of goal setting?

a. Goal setting provides direction, guidance, and motivation for managers.

b. Goal setting helps firms allocate resources.

c. Goal setting helps to define corporate culture.

d. Goal setting helps managers assess performance.

e. None of the above.

Difficulty: 1 Page-Reference: 194-195

Question ID: 06-1-75 Skill: Comprehension

Objective: 6.4

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 6—Managing the Business Enterprise

76. A top manager at Belcourt Ltd. thinks the company should sell off a division that has so far failed

to achieve a return on investment that is required at Belcourt. Which of the following would MOST

weaken the manager’s argument to sell off the division?

a. Some other divisions at Belcourt have had even lower returns on investment than the division the

manager wants to sell off.

b. The division’s product is gaining in popularity with consumers.

c. Other companies don’t have return on investment expectations as high as those at Belcourt.

d. The division in question uses a technology that was developed outside of Belcourt.

e. If Belcourt sold off the division, outsiders might think a new trend was developing with the product

the division makes.

Difficulty: 1 Page-Reference: 194-195

Question ID: 06-1-76 Skill: Analysis

Objective: 6.4

77. General Industries Ltd. is a large conglomerate with many diverse divisions. One of the divisions

has been experiencing poor performance, and it also has a small market share. Management is therefore

thinking about selling the division. Which of the following would MOST strongly suggest that General

Industries should keep the division instead?

a. The division has been able to reduce its losses in each of the last three years.

b. The chain has a better market share in eastern Canada than in western Canada.

c. Other divisions at the company use the services of the division in question, and this results in

significant overall savings for General Industries.

d. The division has very up-to-date technology.

e. Staffing levels in the division in question are not much different than those at competitors in the

industry.

Difficulty: 1 Page-Reference: 194-195

Question ID: 06-1-77 Skill: Analysis

Objective: 6.4

78. Garrett Corp. wants to be known as a company that produces products that enhance consumers‘

“satisfaction with easy living.” If Garrett actually achieves this goal in the eyes of consumers, what is the

MOST likely result?

a. The company would feel pressure to expand its business to include a wider range of products

and services.

b. Customers who have a positive experience with one of Garrett’s products try other products made

by the company.

c. Company divisions would be more likely to create their own individual mission statements.

d. Sales of Garrett’s higher-priced offerings would increase less than sales of lower–priced offerings.

e. Customers would put more emphasis on price and less on customer service.

Difficulty: 1 Page-Reference: 194-195

Question ID: 06-1-78 Skill: Analysis

Objective: 6.4