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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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61. Samantha would like to know how much cash was received from operating activities
last year. She could easily find this information in the ______.
a. income statement
b. revenue budget
c. balance sheet
d. cash flow statement
62. Whenever ______ are sold by a company, they pay out interest payments to the
purchaser, and the amount of the sale is shown as a liability on the balance sheet.
a. stocks
b. short-term loans
c. bonds
d. capital assets
63. Whenever ______ are sold by a company, they pay out dividend payments to the
purchaser, and the amount of the sale is shown as owners’ equity on the balance sheet.
a. capital assets
b. stocks
c. short-term loans
d. bonds
64. Entrepreneurs list ______ management as the number one area they would like to
improve.
a. people
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
b. sales
c. financial
d. operations
65. ______ is the process of giving motivational feedback to maintain and improve
performance.
a. Discipline
b. Coaching
c. Counseling
d. Training
66. What is the correct formula for the performance formula?
a. performance + motivation + resources = ability
b. ability x motivation x resources = performance
c. ability + motivation ÷ resources = performance
d. ability + motivation + performance = resources
67. Feedback is the central part of coaching, and it should be ______.
a. neutral, frequent, and supportive
b. immediate, continuous, and motivational
c. general, directional, and developmental
d. personal, sincere, and succinct
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
68. All of the following are major activities of management by walking around, EXCEPT
______.
a. teaching
b. doing
c. listening
d. facilitating
69. According to the “3 I’s” coaching philosophy, what do you need to be prepared to do
the job right?
a. intensity
b. integrity
c. intimacy
d. introspection
70. Ines is currently training Shelby on the proper way to deliver drinks to a table. Ines is
telling Shelby that when there appears to be a child under the age of 5, she should, by
default, bring the drink in a cup with a lid and straw to minimize the risk of spills she
would have to then clean up. Which stage of coaching is Sloan using?
a. Describe current performance.
b. Describe desired performance.
c. Get a commitment to the change.
d. Follow up.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
71. As an HR manager of large business, what kind of program should one create to
help solve employees’ personal and professional problems?
a. Empathic Awareness Protocol
b. Employee Assistance Program
c. External Aid Plan
d. Exception Addressing Policy
72. Which of the following is NOT a type of problem employee?
a. employees who violate standing plans
b. employees who do not have the ability to meet job performance standards
c. employees who do not have the motivation to meet job performance standards
d. employees who have an illness that prevents them from meeting job performance
standards
73. ______ is/are a negative voluntary behavior of problem employees that violates
significant organizational norms and threatens the well-being of the organization.
a. Perversions
b. Peccadilloes
c. Exceptions
d. Deviance
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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74. Which of the following is NOT part of the progressive disciplinary process?
a. probation
b. suspension
c. dismissal
d. warning
75. Johann, an accounting department manager, notices that one of his employees
tends to show anger management issues when faced with a deadline. Which
management method should Johann use in this situation?
a. coaching
b. counseling
c. disciplining
d. confronting
76. ______ is corrective action to get employees to meet standards and standing plans.
a. Coaching
b. Counseling
c. Discipline
d. Punishment
77. The major objective of discipline is to change ______.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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a. attitudes
b. behaviors
c. perceptions
d. beliefs
78. Which of the following is NOT part of the discipline model?
a. Give the discipline.
b. Refer to past feedback.
c. Reinforce the positive behavior.
d. Summarize and state the follow-up.
79. One of Ximena’s factory employees has been coming to work late on a frequent
basis. Ximena is currently meeting with the employee and has just issued him an oral
warning regarding his tardiness. At this point, what is the next step of the discipline
model?
a. Get a commitment to change and develop a plan.
b. Refer to past feedback.
c. Summarize and state the follow-up.
d. Give the discipline.
80. What is the first step of progressive disciplinary action?
a. termination
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
b. oral warning
c. written warning
d. written warning
81. The Sarbanes-Oxley Act addresses corporate ______.
a. taxation
b. budgeting
c. governance
d. liability
82. An increasing number of companies find ways to perform well with relatively little
financial or physical capital. This is referred to as being ______.
a. low-cap
b. asset-light
c. revenue-neutral
d. capital-adverse
83. ______ like regular feedback, so give them lots of coaching.
a. Traditionalists
b. Generation X
c. Baby Boomers
d. Millennials
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
84. Which of the following is TRUE of women regarding their personal finances?
a. Women are more likely to participate in employer-sponsored retirement plans.
b. Women take more risk in their investments.
c. Women save a smaller percentage of their income.
d. Women are less goal-directed.
True/False
1. The only way to continually increase customer satisfaction is to use feedback from
the customer to continually improve the products and services.
2. Rework controls are actions taken to minimize negative impacts on
customers/stakeholders due to faulty outputs.
3. Standing plans of policies, procedures, and rules help control or limit behavior.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4. Employees are less likely to resist the change of new controls in the workplace if they
perceive the controls as fair.
5. Setting standards too high with strong incentives to get the reward and avoid the
punishment can lead to resistance to control.
6. For standards to be complete, they must cover performance levels in quantity,
quality, time, cost, and behavior.
7. Plans are the ends and objectives and standards are the means to those ends.
8. When controlling employee performance, the greater the employee’s capability, the
less frequently you need to exert controls over that employee’s performance.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
9. With the trend of participative management, managers are using less self-leadership.
10. Peer pressure is associated with clan control.
11. The difference between pro forma statements and financial statements is that pro
forma statements report past results while the financial statements project future results.
12. If a company desires to raise capital without selling any ownership in the company,
then they should sell stocks rather than bonds.
13. The ability to work with budgets and financial statements is a must, if you want to
advance and succeed in business.
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Lussier, Management Fundamentals 8e
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14. A capital expenditures budget is a forecast of total operating spending for the year.
15. It is possible to have lots of revenues and yet make a profit.
16. The only way to really increase long term profits is to increase revenues.
17. When ability is holding back performance, motivational techniques, such as giving
praise, will help.
18. We remember what we hear better than what we see.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
19. Employee assistance programs save about as much money as they cost to provide,
so they are revenue and cost neutral.
20. A manager’s first obligation is to the organization’s performance rather than to
individual employees.
21. You don’t have to be liked to be an effective manager.
22. For important violations, such as stealing, all steps of progressive discipline are
commonly followed. For minor violations, such as being late for work or excessive
absenteeism, steps may be skipped.
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
23. Not handling employee complaints effectively can create resentment, low morale,
low productivity, and increased turnover.
24. Dissatisfied customers often complain to friends.
25. Admitting a mistake and apologizing to a customer may cause them to become
more upset and increasingly defensive as you confirm that they have been wronged.
Essay
1. Why should companies focus more on preliminary and concurrent controls?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
2. Please explain the difference between rework and damage control.
3. Please list each of the four steps in the control systems process and explain why
each step is important in reaching goals.
4. You are the manager of a fast food restaurant. Please give examples of the
standards you would set for your employees in the areas of quantity, quality, time, cost,
and behavior.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
5. List and explain the four steps of the performance success cycle.
6. What are the three categories of control frequencies and how often are they used?
7. Explain the phrase “it takes money to make money” as it relates to the importance of
the capital expenditures budget.
8. What would you recommend to someone who is starting to save for retirement with
their company’s 401(k) program?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
9. What is the most important part of coaching and why?
10. Comment on the appropriate coaching action for each of the following three
situations: lack of ability, lack of motivation, and lack of resources.
11. Identify the attributes of problem employees and discuss why managers should try
coaching and/or counseling before discipline.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
12. Explain why it is so important to confront problem employees?
13. List the five steps in the discipline model and briefly explain each of the steps.