Chapter 7 2 Which of the following items would tend to support wider spans

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

Chapter 7—Organizing the Business Enterprise

75. Which of the following items would tend to support wider spans of control as the best choice?

a. Subordinates perform complex tasks.

b. Subordinates work independently of each other.

c. Subordinates perform non-routine tasks.

d. Subordinates perform diverse tasks.

e. One subordinate’s tasks depend on another subordinate’s tasks.

Difficulty: 2 Page-Reference: 225-226

Question ID: 07-1-75 Skill: Comprehension

Objective: 7.3

76. Kara is an accounts receivables clerk in the accounting department. Her boss, Tina, oversees the

work of several clerks. The type of authority which Tina has is

a. command authority.

b. staff authority.

c. line authority.

d. committee and team authority.

e. direct authority.

Difficulty: 2 Page-Reference: 226

Question ID: 07-1-76 Skill: Comprehension

Objective: 7.3

77. Hillary has just graduated from law school and has taken a position with a legal firm. At first she

will assist the partners, but eventually she will handle cases on her own. Hillary is

a. a staff member of the firm.

b. a line member of the firm.

c. a member of the management team.

d. a committee member of the firm.

e. a work team member of the firm.

Difficulty: 3 Page-Reference: 226

Question ID: 07-1-77 Skill: Comprehension

Objective: 7.3

78. Line authority covers those people who ________, while staff authority covers those people who

________.

a. are indirectly involved in producing goods or services; are directly involved in producing goods or

services

b. advise line managers; advise staff managers

c. advise staff managers; do things

d. are directly involved in producing goods or services; provide professional advice to line managers

e. are in human resource departments; are involved in manufacturing or sales

Difficulty: 2 Page-Reference: 226-227

Question ID: 07-1-78 Skill: Knowledge

Objective: 7.3

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

Chapter 7—Organizing the Business Enterprise

79. A corporate attorney is reviewing the marketing department’s contract with a new advertising

agency. The term for the type of authority the attorney has is

a. staff authority.

b. committee authority.

c. command authority.

d. line authority.

e. direct authority.

Difficulty: 1 Page-Reference: 226-227

Question ID: 07-1-79 Skill: Comprehension

Objective: 7.3

80. Which of the following would have staff authority in a manufacturing firm?

a. Assembly line worker

b. Marketing manager

c. Human resources manager

d. Machine shop foreman

e. Purchasing department manager

Difficulty: 2 Page-Reference: 226-227

Question ID: 07-1-80 Skill: Comprehension

Objective: 7.3

81. In reviewing the firm’s organization chart, Martin, who is an attorney, notices that there is a dotted

line between him and the V.P. of Sales. This means that

a. the V.P. is Martin’s boss.

b. Martin has a line responsibility to the V.P.

c. Martin and the V.P. serve on the same committee or work team.

d. Martin has the final decision regarding any legal matters in Sales.

e. Martin will assist the V.P. but the V.P. will make the final decision.

Difficulty: 2 Page-Reference: 227

Question ID: 07-1-81 Skill: Comprehension

Objective: 7.3

82. Ted, the Human Resources manager, is reviewing a batch of resumes that are in response to a

job advertisement in a local paper. After selecting six candidates, the resumes are sent to the Sales

Manager for selection of the candidates to be interviewed. Ted has what kind of authority?

a. Line authority

b. Expert authority

c. Staff authority

d. Direct authority

e. Command authority

Difficulty: 2 Page-Reference: 226-227

Question ID: 07-1-82 Skill: Comprehension

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

Chapter 7—Organizing the Business Enterprise

Objective: 7.3

83. A group of top managers has been selected to guide the restructuring of the company’s business.

Because of the critical nature of its activities, the group has probably been granted

a. line authority.

b. committee and team authority.

c. staff authority.

d. executive authority.

e. temporary authority.

Difficulty: 1 Page-Reference: 227

Question ID: 07-1-83 Skill: Comprehension

Objective: 7.3

84. The development of the decision-making hierarchy is a three-step process, which involves

a. researching information, evaluating information, and distributing information.

b. centralizing resources, assigning tasks, and delegating responsibility.

c. assigning tasks, performing tasks, and distributing authority.

d. outsourcing work, monitoring progress, and insourcing finished products.

e. none of these.

Difficulty: 2 Page-Reference: 222

Question ID: 07-1-84 Skill: Knowledge

Objective: 7.3

85. Bob has noticed that some of the tasks that he has assigned to his subordinates are not getting

completed properly. The most likely explanation is

a. he has assigned authority without assigning responsibility or accountability.

b. he has not assigned authority, accountability or responsibility.

c. he has assigned responsibility and accountability without giving the necessary authority.

d. he has assigned authority and responsibility without assigning accountability.

e. none of these.

Difficulty: 3 Page-Reference: 222

Question ID: 07-1-85 Skill: Application

Objective: 7.3

86. Where a quick response time is critical, ________ is typically used.

a. functional authority

b. a narrow span of control

c. centralized decision making

d. team authority

e. decentralized decision making

Difficulty: 1 Page-Reference: 223–224

Question ID: 07-1-86 Skill: Comprehension

Objective: 7.3

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

Chapter 7—Organizing the Business Enterprise

87. Which of the following is likely to be evident at a small, owner-operated firm?

a. Decentralization

b. Functional authority

c. Team authority

d. A narrow span of control

e. Centralization

Difficulty: 1 Page-Reference: 223

Question ID: 07-1-87 Skill: Comprehension

Objective: 7.3

88. As organizations grow and prosper, which type of decision-making tends to be adopted by more

successful companies?

a. Functional authority

b. Decentralization

c. Accountability

d. Narrow span of control

e. Centralization

Difficulty: 1 Page-Reference: 223-224

Question ID: 07-1-88 Skill: Comprehension

Objective: 7.3

89. The greater the __________, the wider the span of control is likely to be, while the greater the

________, the narrower the span of control is likely to be.

a. complexity of the task; employees’ abilities

b. the supervisor’s managerial skills; interrelationship of the tasks

c. uniqueness of the task; routineness of the task

d. interrelationship of the tasks; the supervisor’s managerial skills

e. complexity of the task; the supervisor’s managerial skills

Difficulty: 1 Page-Reference: 225-226

Question ID: 07-1-89 Skill: Knowledge

Objective: 7.3

90. Which of the following would tend to support narrower spans of control?

a. Subordinates work independently of each other.

b. Subordinates perform complex tasks.

c. Subordinates perform diverse tasks.

d. When tasks are not routine.

e. All of these.

Difficulty: 2 Page-Reference: 225-226

Question ID: 07-1-90 Skill: Comprehension

Objective: 7.3

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

Chapter 7—Organizing the Business Enterprise

91. Departments that are directly linked to the production or sales of revenue–generating products are

a. staff departments.

b. function critical departments.

c. line departments.

d. matrix departments.

e. none of these.

Difficulty: 1 Page-Reference: 226

Question ID: 07-1-91 Skill: Knowledge

Objective: 7.3

92. Clark Equipment Company manufactures small earth movers. In this company, all of the following

would be line departments except

a. purchasing.

b. accounting.

c. sales.

d. distribution.

e. assembly.

Difficulty: 2 Page-Reference: 226

Question ID: 07-1-92 Skill: Comprehension

Objective: 7.3

93. Employees with specific areas of expertise like accounting, law, and human resources are usually

given _________ authority, while managers of areas like production, finance, and marketing are usually

given ________ authority.

a. line; staff

b. staff; line

c. functional; staff

d. team; staff

e. none of these

Difficulty: 2 Page-Reference: 226

Question ID: 07-1-93 Skill: Knowledge

Objective: 7.3

94. Groups of operating employees empowered to plan and organize their own work and to do that

with a minimum of supervision are called

a. operating teams.

b. employee committees.

c. work teams.

d. autonomous employee teams.

e. none of these.

Difficulty: 2 Page-Reference: 227

Question ID: 07-1-94 Skill: Knowledge

Objective: 7.3

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

Chapter 7—Organizing the Business Enterprise

95. What is the difference between line managers and staff managers?

a. Staff managers have no authority over their subordinates, while line managers do.

b. Line managers usually have more formal education than staff managers.

c. Line managers are more important.

d. In a manufacturing firm, line managers are involved in areas like marketing and production, while

staff managers work in areas like marketing research, personnel, and legal.

e. Staff managers have more authority than line managers.

Difficulty: 3 Page-Reference: 226-227

Question ID: 07-1-95 Skill: Application

Objective: 7.3

96. In a firm that does marketing research for other firms, which of the following would be a line

position?

a. Market researchers

b. Accountants

c. Legal experts

d. Human resource people

e. It is not possible to tell

Difficulty: 3 Page-Reference: 226

Question ID: 07-1-96 Skill: Application

Objective: 7.3

97. All of the following are either advantages or disadvantages of the functional structure except

a. no single function is responsible for overall organizational performance.

b. employees have clearly defined career paths.

c. increases accountability.

d. focuses attention on the key activities that must be performed.

e. conflicts may arise among the functional areas.

Difficulty: 3 Page-Reference: 228

Question ID: 07-1-97 Skill: Comprehension

Objective: 7.4

98. Which of the following is not an advantage of the functional structure?

a. It focuses attention on the key activities that must be performed.

b. There is little duplication of activities.

c. Employees have clearly defined career paths.

d. The structure is simple and easy to understand.

e. No single function is responsible for overall organizational performance.

Difficulty: 2 Page-Reference: 228

Question ID: 07-1-98 Skill: Comprehension

Objective: 7.4

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

Chapter 7—Organizing the Business Enterprise

99. Scott has reviewed the organizational structure of his company and found that there is a lot of

specialization within each area, employees seem to have clearly defined career paths, and there is little

duplication of activities. He is most likely working in a company with a(n) ________ structure.

a. international

b. divisional

c. functional

d. conglomerate

e. matrix

Difficulty: 2 Page-Reference: 228

Question ID: 07-1-99 Skill: Comprehension

Objective: 7.4

100. What is an advantage of the functional organization?

a. The members of the organization speak a foreign language.

b. The organization is staffed with people who have expert knowledge about the product.

c. Coordinating highly specialized functions is easy.

d. Members of the organization report to two or more managers.

e. The functions are performed by experts in their field.

Difficulty: 2 Page-Reference: 228

Question ID: 07-1-100 Skill: Knowledge

Objective: 7.4

101. United Technologies departments include Pratt & Whitney, Carrier Air Conditioning, Otis

Elevator, and Flight Systems. UTC has a(n) ________ organizational structure.

a. functional

b. international

c. divisional

d. matrix

e. multinational

Difficulty: 2 Page-Reference: 228

Question ID: 07-1-101 Skill: Comprehension

Objective: 7.4

102. Which organizational structure relies on product departmentalization?

a. Functional

b. Matrix

c. Divisional

d. Project

e. International

Difficulty: 2 Page-Reference: 228

Question ID: 07-1-102 Skill: Knowledge

Objective: 7.4

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

Chapter 7—Organizing the Business Enterprise

103. All of the following are either advantages or disadvantages of the divisional structure except

a. a lack of communication among divisions may occur.

b. accommodates change and expansion.

c. activities may be duplicated across divisions.

d. company politics may affect the allocation of resources.

e. focuses attention on the key activities that must be performed.

Difficulty: 3 Page-Reference: 229

Question ID: 07-1-103 Skill: Comprehension

Objective: 7.4

104. Which of the following is not an advantage of the divisional structure?

a. Activities may be duplicated across divisions.

b. Training for top management is encouraged.

c. Accountability is increased.

d. Develops expertise in the various divisions.

e. Change and expansion are facilitated.

Difficulty: 2 Page-Reference: 229

Question ID: 07-1-104 Skill: Comprehension

Objective: 7.4

105. Michael is analyzing the structure of his new employer. It is highly flexible and can readily adapt

to changing circumstances. It also is heavily dependent upon committee and team authority. The firm is

probably using the ________ structure.

a. matrix

b. functional

c. conglomerate

d. divisional

e. international

Difficulty: 3 Page-Reference: 229

Question ID: 07-1-105 Skill: Comprehension

Objective: 7.4

106. In which structure will an individual report to two or more managers?

a. Divisional

b. Conglomerate

c. Duopoly

d. Matrix

e. Functional

Difficulty: 2 Page-Reference: 229-230

Question ID: 07-1-106 Skill: Comprehension

Objective: 7.4

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

Chapter 7—Organizing the Business Enterprise

107. Which of the following is the best explanation of a matrix structure?

a. Teams are formed in which employees report to two or more managers.

b. A matrix structure is based upon the geographical areas of the world.

c. A matrix occurs when one firm purchases another and combines the staff activities.

d. A matrix occurs when the organization is restructuring from a tall to a flat organization.

e. A matrix divides the organization into divisions, each of which operates as a semi-autonomous unit.

Difficulty: 2 Page-Reference: 229-230

Question ID: 07-1-107 Skill: Comprehension

Objective: 7.4

108. An organization that customarily uses teams of individuals from several departments to work on

special projects is using a(n) ________ organizational structure.

a. decentralized

b. matrix

c. international

d. line and staff

e. conglomerate

Difficulty: 1 Page-Reference: 229-230

Question ID: 07-1-108 Skill: Comprehension

Objective: 7.4

109. Which organizational structure is used in the following situation: The firm is making a sales

proposal that must include suggested computer hardware, software, an overall systems design, and

estimated costs, and a manager is assigned who assembles a group of company specialists from various

departments to prepare the proposal to the customer.

a. Strategic business unit structure

b. Product departmentalization

c. Geographic departmentalization

d. Matrix structure

e. Centralized structure

Difficulty: 2 Page-Reference: 229-230

Question ID: 07-1-109 Skill: Comprehension

Objective: 7.4

110. As the world grows increasingly complex and fast paced, organizations continue to seek new

forms of organization that permit them to compete effectively. The following are all examples of the new

forms except

a. boundaryless organization.

b. virtual organization.

c. global organization.

d. team organization.

e. learning organization.

Difficulty: 2 Page-Reference: 232

Question ID: 07-1-110 Skill: Comprehension

Objective: 7.4

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

Chapter 7—Organizing the Business Enterprise

111. A ________ organization has little or no formal structure, with only a handful of permanent

employees.

a. learning

b. flexible

c. boundaryless

d. team

e. virtual

Difficulty: 2 Page-Reference: 233

Question ID: 07-1-111 Skill: Knowledge

Objective: 7.4

112. A ________ organization seeks to integrate continuous improvement with continuous employee

development.

a. virtual

b. flexible

c. learning

d. boundaryless

e. team

Difficulty: 2 Page-Reference: 234

Question ID: 07-1-112 Skill: Knowledge

Objective: 7.4

113. Gerry owns a medium-sized firm that employs 78 people. It would most likely have a ________

structure.

a. functional

b. international

c. matrix

d. conglomerate

e. divisional

Difficulty: 2 Page-Reference: 228

Question ID: 07-1-113 Skill: Comprehension

Objective: 7.4

114. As companies get larger and more complex, they are likely to move away from the __________

structure.

a. matrix

b. international

c. functional

d. divisional

e. conglomerate

Difficulty: 2 Page-Reference: 228

Question ID: 07-1-114 Skill: Comprehension

Objective: 7.4

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

Chapter 7—Organizing the Business Enterprise

115. Which organizational structure is used most frequently by small– and medium-sized firms?

a. Functional

b. Quasi-divisional

c. Divisional

d. International

e. Matrix

Difficulty: 1 Page-Reference: 228

Question ID: 07-1-115 Skill: Comprehension

Objective: 7.4

116. Which of the following is an advantage of a functional structure?

a. Functional areas get approval from top management for a variety of decisions.

b. Expertise develops within each function.

c. No single function is responsible for overall company performance.

d. Conflicts between functional areas may arise.

e. None of these

Difficulty: 1 Page-Reference: 228

Question ID: 07-1-116 Skill: Comprehension

Objective: 7.4

117. Which of the following is correct with regard to divisional structures?

a. Unhealthy competition may arise between the divisions.

b. The different divisions all pursue the same corporate identity.

c. Different divisions do not share certain corporate–level resources like market research data.

d. If a lot of control is delegated to divisional managers, corporate managers have a better

understanding of daily operations in the divisions.

e. There is little duplication of effort because the various divisions must work together to achieve

overall corporate objectives.

Difficulty: 2 Page-Reference: 228-229

Question ID: 07-1-117 Skill: Comprehension

Objective: 7.4

118. Elizabeth reports to three managers. Elizabeth’s company uses the ________ corporate

structure.

a. matrix

b. triple

c. functional

d. divisional

e. conglomerate

Difficulty: 1 Page-Reference: 229-230

Question ID: 07-1-118 Skill: Comprehension

Objective: 7.4

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

Chapter 7—Organizing the Business Enterprise

119. Walmart has adopted a(n) ___________ structure.

a. conglomerate

b. international

c. functional

d. divisional

e. matrix

Difficulty: 1 Page-Reference: 230

Question ID: 07-1-119 Skill: Knowledge

Objective: 7.4

120. Organizations in which traditional boundaries and structures are minimized or eliminated are

called __________ organizations.

a. learning

b. virtual

c. Smith’s

d. boundaryless

e. international

Difficulty: 2 Page-Reference: 233

Question ID: 07-1-120 Skill: Knowledge

Objective: 7.4

121. In ________organizations, people “float” from project to project as dictated by their skills and

the demands of the project.

a. learning

b. virtual

c. team

d. boundaryless

e. international

Difficulty: 2 Page-Reference: 233

Question ID: 07-1-121 Skill: Knowledge

Objective: 7.4

122. When clients of Global Research Consortium request various services, the staff of three

permanent employees contracts out the work to people with appropriate skills. GRC is therefore a(n)

__________ organization.

a. virtual

b. team

c. international

d. boundaryless

e. learning

Difficulty: 2 Page-Reference: 233

Question ID: 07-1-122 Skill: Comprehension

Objective: 7.4

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

Chapter 7—Organizing the Business Enterprise

123. A ________ organization focuses on employee development and continually transforming itself

to respond to changing demands and needs.

a. team

b. learning

c. boundaryless

d. project

e. virtual

Difficulty: 2 Page-Reference: 234

Question ID: 07-1-123 Skill: Knowledge

Objective: 7.4

124. Which of the following organizational systems is the part that can be seen and represented in

chart form?

a. Formal organization

b. Grapevine

c. Informal organization

d. Normal organization

e. Product organization

Difficulty: 2 Page-Reference: 234

Question ID: 07-1-124 Skill: Knowledge

Objective: 7.5

125. Everyday social interactions among employees that transcend formal jobs and job

interrelationships are called the

a. informal organization.

b. formal organization.

c. process organization.

d. gossip structure.

e. production organization.

Difficulty: 1 Page-Reference: 234

Question ID: 07-1-125 Skill: Knowledge

Objective: 7.5

126. The ________ is an informal communication network that runs through an organization.

a. grapevine

b. intrapreneur

c. intranet

d. span of control

e. message center

Difficulty: 1 Page-Reference: 235

Question ID: 07-1-126 Skill: Knowledge

Objective: 7.5

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

Chapter 7—Organizing the Business Enterprise

127. Which of the following is correct with regard to the grapevine?

a. Managers can eliminate the grapevine, but it takes a lot of time and effort to do so.

b. All things considered, it is best for the manager to ignore the grapevine because the accuracy of

the information it carries is inconsistent and unpredictable.

c. The grapevine is an early warning system, so managers should pay attention to it.

d. Managers cannot have an influence on the information carried by the grapevine because it is

controlled by the informal organization.

e. All of these are correct.

Difficulty: 1 Page-Reference: 235

Question ID: 07-1-127 Skill: Comprehension

Objective: 7.5

128. Which of the following is a disadvantage of informal communications?

a. Managers can easily interrupt the flow of information which the employees may believe to be

important.

b. Good news may spread very rapidly through the informal channel.

c. It flows through the chain of command.

d. Rumours and distorted or inaccurate information may be flowing through the grapevine at a fast

rate.

e. Studies have shown that the rumours and gossip on the grapevine are almost always accurate.

Difficulty: 1 Page-Reference: 234-235

Question ID: 07-1-128 Skill: Knowledge

Objective: 7.5

129. Gerry, president of Erin Enterprises, knew he had to lay off 5% of his employees in order to stay

profitable. Gerry wanted to ease the aggravation of telling his employees, so he used the ________ prior

to his formal announcement.

a. matrix strategy

b. virtual method

c. grapevine

d. virtual organization

e. “keep-ʹem–in-the-dark” strategy

Difficulty: 2 Page-Reference: 235

Question ID: 07-1-129 Skill: Comprehension

Objective: 7.5

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

Chapter 7—Organizing the Business Enterprise

130. When musicians and singers at the New York Metropolitan Opera play poker during

intermissions, this is an example of

a. poor control by management.

b. informal groups.

c. the grapevine.

d. rumours.

e. unethical employee behaviour.

Difficulty: 2 Page-Reference: 234

Question ID: 07-1-130 Skill: Comprehension

Objective: 7.5

131. Which of the following is correct with regard to the informal organization?

a. It matches up pretty closely with the formal organization.

b. The term refers to the breaking down of barriers between formal departments.

c. Managers should try to suppress the informal organization because it often provides employees

with inaccurate information.

d. Managers should tune in to the grapevine because it is an early warning system.

e. All of these are correct.

Difficulty: 2 Page-Reference: 235

Question ID: 07-1-131 Skill: Comprehension

Objective: 7.5

132. The grapevine is an informal _________ network.

a. task

b. communication

c. budget

d. gossip

e. structural

Difficulty: 2 Page-Reference: 235

Question ID: 07-1-132 Skill: Knowledge

Objective: 7.5

1. Each firm has the same basic organizational elements and thus the same basic structure.

a. True

b. False

Difficulty: 1 Page-Reference: 216

Question ID: 07-2-133 Skill: Comprehension

Objective: 7.1

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

Chapter 7—Organizing the Business Enterprise

2. Organizational structure involves the relationships of jobs within an organization.

a. True

b. False

Difficulty: 1 Page-Reference: 216

Question ID: 07-2-134 Skill: Knowledge

Objective: 7.1

3. Organizational structure is influenced by the firm’s mission and size, but not by the technology used

in the firm.

a. True

b. False

Difficulty: 1 Page-Reference: 216

Question ID: 07-2-135 Skill: Knowledge

Objective: 7.1

4. Most business organizations change their structures on a continuing basis.

a. True

b. False

Difficulty: 2 Page-Reference: 216

Question ID: 07-2-136 Skill: Knowledge

Objective: 7.1

5. The chain of command shown on an organization chart reflects manager and subordinate

relationships.

a. True

b. False

Difficulty: 1 Page-Reference: 216-217

Question ID: 07-2-137 Skill: Knowledge

Objective: 7.1

6. Job specialization involves breaking jobs down into specific tasks which are then assigned to

different individuals.

a. True

b. False

Difficulty: 1 Page-Reference: 218

Question ID: 07-2-138 Skill: Knowledge

Objective: 7.2

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

Chapter 7—Organizing the Business Enterprise

7. The two basic building blocks of all business organizations are specialization and

departmentalization.

a. True

b. False

Difficulty: 1 Page-Reference: 218

Question ID: 07-2-139 Skill: Knowledge

Objective: 7.2

8. In small organizations, jobs tend to be unspecialized.

a. True

b. False

Difficulty: 1 Page-Reference: 218

Question ID: 07-2-140 Skill: Knowledge

Objective: 7.2

9. Departmentalization allows a firm to treat a department as a profit centre, i.e., a separate unit

responsible for its own costs and profits.

a. True

b. False

Difficulty: 1 Page-Reference: 219

Question ID: 07-2-141 Skill: Knowledge

Objective: 7.2

10. Because customer departmentalization involves setting up departments that focus on meeting the

needs of specific customers, it is generally more effective than functional departmentalization.

a. True

b. False

Difficulty: 3 Page-Reference: 219

Question ID: 07-2-142 Skill: Comprehension

Objective: 7.2

11. When home improvement giant Lowe’s reorganized its merchandising operations into two

divisions (building and outdoor products, and kitchen, bath, and home décor products), this was an

example of customer departmentalization.

a. True

b. False

Difficulty: 3 Page-Reference: 219-220

Question ID: 07-2-143 Skill: Comprehension

Objective: 7.2

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

Chapter 7—Organizing the Business Enterprise

12. The development of more sophisticated communication technologies has motivated some

companies to move away from geographic departmentalization and toward product departmentalization.

a. True

b. False

Difficulty: 3 Page-Reference: 220

Question ID: 07-2-144 Skill: Comprehension

Objective: 7.2

13. The process of grouping together jobs into logical units is known as departmentalization.

a. True

b. False

Difficulty: 1 Page-Reference: 219

Question ID: 07-2-145 Skill: Knowledge

Objective: 7.2

14. Functional departmentalization means organizing departments according to the function they

perform (e.g., marketing, finance, production, human resources, etc.).

a. True

b. False

Difficulty: 2 Page-Reference: 219

Question ID: 07-2-146 Skill: Knowledge

Objective: 7.2

15. Attempts to organize workers into departments that are based on anything other than customers

have been largely unsuccessful.

a. True

b. False

Difficulty: 2 Page-Reference: 219

Question ID: 07-2-147 Skill: Comprehension

Objective: 7.2

16. Customer departmentalization tends to make a retail store more efficient and allows sales people

tend to gain expertise in their specific department.

a. True

b. False

Difficulty: 2 Page-Reference: 219

Question ID: 07-2-148 Skill: Comprehension

Objective: 7.2