55) ________ is when a manager in the work area interacts directly with employees to maintain
supervision.
A) Preventive maintenance
B) Management by walking around
C) Reactive control
D) Feedforward control
56) Donald discovers major flaws in the packaging department. He consults the production
manager and formulates control measures to improve packaging. Here, Donald is using the
________ control.
A) feedback
B) reactive
C) concurrent
D) feedforward
57) The ________ ratios measure an organization’s ability to meet its current debt obligations.
A) activity
B) liquidity
C) leverage
D) profitability
58) Which of the following ratios examines the organization’s use of debt to finance its assets
and its ability to meet the interest payments on the debt?
A) liquidity ratios
B) leverage ratios
C) profitability
D) activity ratios
59) Ruth, a financial consultant, determines her client’s leverage ratio to be very high. What
suggestion could Ruth give to help the firm reduce its leverage ratio?
A) Increase the money supply by selling a part of its assets.
B) Pay back part of its debts to improve the ratio.
C) Maintain more current assets than current liabilities.
D) Reduce the sales to total assets ratio of the firm.
60) ________ ratios measure how efficiently the firm is using its assets.
A) Liquidity
B) Leverage
C) Profitability
D) Activity
61) Elaine wants to analyze her company’s ability to meet its current debt obligations. Which of
the following ratios is most helpful to Ruth in analyzing this?
A) inventory turnover ratio
B) return on investment ratio
C) current ratio
D) total asset turnover ratio
62) Which of the following ratios measures how efficiently and effectively the firm is using its
assets to generate revenue?
A) total asset turnover ratios
B) inventory turnover ratios
C) acid test ratio
D) return on investment
63) When data is analyzed and processed, it becomes ________.
A) a system
B) information
C) fact
D) a structure
64) Raw, unanalyzed facts are called ________.
A) data
B) information
C) database
D) factoids
65) Every March, Bill, who owns and operates a small retail shop, takes a large box of receipts
and invoices to his accountant so the accountant can file Bill’s taxes in April. Only then does
Bill know if his business has been profitable. Bill could benefit from a(n) ________.
A) concurrent control system
B) balanced scorecard system
C) inventory control system
D) management information system
66) The ________ approach to performance measurement was introduced as a way to evaluate
organizational performance from more than just the financial perspective.
A) market value
B) balance sheet
C) balanced scorecard
D) income statement
67) Which of the following is a performance measurement tool that looks at four areas that
contribute to a company’s performance?
A) market value method
B) economic value method
C) balanced scorecard approach
D) information control approach
68) ________ is the search for the best practices among competitors or noncompetitors that lead
to their superior performance.
A) Factor analysis
B) Total quality management
C) Market positioning
D) Benchmarking
69) Feedforward control is more popular and effective than the other forms of control.
70) Feedforward control takes place while a work activity is in progress.
71) Activity ratios measure an organization’s ability to meet its current debt obligations.
72) Managers should not consider the standards when measuring the actual performance of
employees.
73) The balanced scorecard approach evaluates organizational performance from more than just
the financial perspective.
74) Benchmarks for a company must be created based on the previous performance of the
company.
75) In a short essay explain feedforward, concurrent, and feedback controls and provide an
example for each one.
76) List and discuss four performance control tools used for monitoring and measuring
organizational performance.
77) What do you think are the benefits of benchmarking? Provide examples of benchmarking
practices.
78) Control techniques can be quite different for different countries. The differences are
primarily in the ________.
A) types of tasks that employees perform in various countries
B) way employees respond to the controlling measures
C) strategic orientation of each technique
D) measurement and corrective action steps of the control process
79) The earthquake/tsunami which hit Japan in March of 2011 highlights the contemporary need
to design organizational controls for ________.
A) cross-cultural differences
B) global turmoil and disasters
C) workplace privacy
D) workplace safety
80) Irene was quite upset to learn her employer read her e-mails. She thought all her messages
were private. Which of the following arguments would best explain her employer’s actions?
A) Managers want to ensure company e-mail servers are not being used for personal e-mails.
B) Managers want to be certain employees are not inadvertently passing on company secrets.
C) Managers are looking for information that can later be used to terminate employees.
D) Managers monitor computer usage to justify system upgrades.
81) Fraudulent filing of expense reports is an example of ________.
A) employee theft
B) workplace piracy
C) workplace violence
D) privacy intrusion
82) Cindy’s elementary school-aged children brought home lists of supplies required for their
classes so Cindy raided the office supplies cabinet. Her rationale is that her employer doesn’t
pay her enough to buy these items. Cindy is engaging in ________.
A) workplace piracy
B) employee theft
C) equity adjustment
D) compensation management
83) Clinical psychologists suggest that employee theft ________.
A) occurs primarily when there are poor management-labor relations
B) is a symptom of poor planning and management control
C) happens because people find ways to rationalize this behavior as correct
D) reflects deep cultural problems in the society
84) Helen noticed employee theft has increased. She has considered several options to deal with
this loss. Which of the following is likely to be the most effective concurrent control?
A) Carefully screen job applicants using honesty testing.
B) Publicly announce thefts when they are discovered.
C) Dismiss any employee involved in theft.
D) Publicize progress in reducing theft.
85) Because so many items had disappeared from the office supplies storeroom, management
installed a surveillance camera to provide ________.
A) feedforward control
B) concurrent control
C) feedback control
D) evidence for prosecution
86) Diane wants to take corrective measures to prevent future theft. Which of the following is a
feedback tactic that Diane could use to control theft?
A) use the services of professional investigators
B) openly communicate the costs of stealing
C) use corporate hotlines for reporting incidences
D) educate and train employees about the policies
87) Factors that have been found to be linked to workplace violence include ________.
A) too much caffeine
B) employee stress
C) poor employee diet
D) poor personal hygiene
88) Helen investigates an incident involving a shooting in her workplace. She wants to take
measures to control its effects. By doing this she is exerting ________ control over the incident.
A) feedback
B) concurrent
C) reactive
D) feedforward
89) MegaMogul Mfg. was a very successful company about 50 years ago. Its managers still
behave today as they did back then. They are rigid, aggressive and condescending in their
communication. Their favorites are given the easiest assignments. No one is allowed to question
them. This situation is ripe for ________.
A) employee theft
B) employee fraud
C) a control system makeover
D) workplace violence
90) Which of the following is an example of a feedforward control measure used to control
possible workplace violence?
A) Clearly communicate the security policies to employees.
B) Use corporate hotlines for reporting and investigating incidences.
C) Review company policies and change, if necessary.
D) Investigate incidences and take appropriate action.
91) An organization communicates openly to its employees about violent incidences in the
workplace and what’s being done to handle them. This is an example of a ________ control
strategy.
A) feedback
B) reactive
C) concurrent
D) feedforward
92) Which of the following is a feedforward control measure to prevent employee theft?
A) employee assistance programs to help employees with behavioral problems
B) thorough investigation of the incident by an external agency
C) use of quick and decisive managerial intervention during the incident
D) open communication about incidences and what’s being done
93) The service profit chain is the service sequence from employees to customers to profit.
According to this concept, the company’s strategy and service delivery system determines
________.
A) the skill development of employees
B) how the firm performs in the short run
C) the employee satisfaction in the company
D) how employees serve customers
94) Corporate governance ________.
A) refers to executive governance practices in companies
B) is a system used to govern a corporation so that the interests of corporate owners are protected
C) is a term that refers to legal agreements made between two or more partner firms
D) refers to the compliance of the company to applicable laws and regulations
95) Two areas in which corporate governance is being reformed are the role of boards of
directors and ________.
A) executive bonus systems
B) financial reporting
C) reports to stockholders
D) reporting to government agencies
96) The Sarbanes-Oxley Act called for ________.
A) increased pollution control measures from the government
B) more disclosure and transparency of corporate financial information
C) limited accountability of directors and executives of corporates
D) more social contribution from companies in the United States
97) Managers tend to use more direct supervision and highly centralized decision making for
control in less technologically advanced countries.
98) Embezzlement and fraudulent filing of expenses are examples of employee theft.
99) Employers establish specific policies defining theft and fraud and discipline procedures. This
is an example of a concurrent control measure to control employee theft.
100) Using corporate hotlines or other mechanisms for reporting and investigating workplace
violence is an example of feedback control.
101) Job uncertainties and employee stress are factors that contribute to workplace violence.
102) A service profit chain is the service sequence from employees to customers to profit.
103) The Sarbanes-Oxley Act called for more disclosure and transparency of corporate financial
information.
104) Provide a few examples for feedforward strategies to reduce employee theft.
105) Employers are increasingly monitoring employees’ activities involving the use of company
technology, particularly computers and cell phones. Explain why employers believe such
monitoring is necessary.
106) Identify three feedback control measures which would reduce workplace violence.
107) Workplace violence is a difficult problem for managers to handle. Managers can take
anticipatory steps to control workplace violence. Provide a few suggestions.
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108) In a short essay, define corporate governance and describe some of the current trends in this