89. Where would you expect to find the following information: “XYZ Corporation has $746 million in assets
and $593 million in liabilities on October 1, 2012?”
90. ____ ratios assess the ease with which the assets of the organization can be converted into cash.
91. ____ ratios indicate the effectiveness of specific functional areas rather than that of the total organization.
92. Which of the following is an example of a financial control that allows managers to compare different
elements of a balance sheet and income statement to one another?
93. John Hamann began his company making herb vinegars from a recipe his grandmother had given him. As
demand grew, he had to buy a large commercial kitchen. Which of the following ratios would a banker have
been most interested in before allowing Hamann to borrow $500,000?
94. GE is highly leveraged. Financial analysts look at its ____ ratio to determine if it can make interest
payments.
95. Which of the following statements about financial audits is TRUE?
96. Internal audits tend to be
97. The purpose of bureaucratic control is to
98. ____ control is a form of organizational control characterized by formal and mechanistic structural
arrangements.
99. Which of the following is NOT characteristic of the bureaucratic approach to organizational control?
100. If a manager has a directive leadership style and works in an organization in which performance
expectations are minimal, which control structure is most appropriate?
101. World Vision has a flat structure that allows workers in countries scattered around the globe to respond to
unique local cultures, situations, and needs. What control structure does World Vision use?
102. Which of the following is NOT characteristic of decentralized control?
103. ____ control is an approach to organizational control characterized by informal and organic structural
arrangements.
104. The level of control designed to ensure that the organization meets its goals is ____ control.
105. Which of the following is NOT one of the areas on which strategic control should focus?
106. FedEx focuses on top line¾quality and customer satisfaction. UPS focuses on bottom line¾efficiency and
cost. They have differences in ____ control.
107. American Greetings Corporation reported that “its sales have been hurt by people increasingly using the
Internet to communicate” and by “lower-priced competition including Hallmark’s Warm Wishes line of 99-cent
cards.” As a result, it decided to lay off 13 percent of its full-time workforce. This need for cost-cutting
measures would have been detected by its ____ control system.
108. MTV has a(n) ____ perspective toward international strategic control. It does not require its various
divisions (MTV Europe, MTV Australia, MTV India, MTV Latin America, and so on) to report in frequently. It
believes in letting each manager have the authority to respond quickly to environmental changes. These changes
do not have to be approved by MTV before they are implemented.
109. At the beginning of the planning-controlling process, planning
110. The best way to integrate planning and control is to
111. Managers can improve the effectiveness of the control system by
112. What is the MOST important factor in effectively integrating the planning and control functions?
113. Oshkosh Corp. hired hundreds of workers to meet an order deadline. The employee training process had to
adapt. Which of the characteristics of an effective control system did the training system need?
114. When Boeing bought the aviation parts and services company Aviall, it stated that it expected to have no
initial change in earnings and the following year a modest gain. It was
115. Which of the following is NOT a characteristic of effective controls?
116. One barrier to effective communication is the filtering of upward communication. Which characteristic of
effective control systems would this affect?
117. Which of the following is NOT one of the characteristics of an effective control system?
118. Which of the following statements is TRUE concerning what happens to control as the level of uncertainty
increases?
119. The term objective as it relates to controls means that the controls
120. What characteristic of effective control systems is lacking when a control system reports production output
as being better than average, satisfactory, marginal, or unsatisfactory?
121. On the end-of-year report for Yoplait yogurt, the division manager noted that “the gross margin for the
product was lower than expected.” This statement indicates that the control system used by Yoplait might lack
122. Initially California Closets tried to limit employee access to Facebook. However, when Facebook became
part of the company communication strategy, CC relented to employee Facebook access. Employees were
happy because they thought the restriction was unreasonable. The employees perceived ____.
123. Some managers at J.P. Morgan Chase viewed the CEO monitoring all of their expenses as too much
involvement. They saw it as
124. Overcontrol is most problematic in areas dealing with ____ resources.
125. What is the problem with a university reward system that encourages faculty members to publish
numerous research articles but fails to consider the quality of the articles?
126. General Plastics Corporation instituted a new absenteeism control policy that took effect the first day of
June. It expects the new policy to result in a 25 percent reduction in absenteeism the first year. Like the previous
policy, the new program counts vacation days as absenteeism. On the first of September, the personnel director
evaluated the results of the program for the first three months and was disappointed to find that absenteeism had
dropped only half of 1 percent. What is the likely problem?
127. Brokerage firms on Wall Street are now closely monitoring research analyst’s e-mails. If the analysts view
this as inappropriate, the control system will be characterized by
128. Booz Allen Hamilton requires employees to use a key that keeps track of how many copies they make on
copy machines. Some employees resent the lack of trust. This is an example of
129. Participation in a control system
130. Some investment firms require traders to take two consecutive weeks of vacation, so the traders’ books can
be reviewed. This is an example of
131. A production manager argues that the increase in absenteeism is caused by decreased recruiting and
placement standards. The argument is supported by personnel documents. This is an example of
132. Merrill Lynch monitored a research analyst’s e-mails, discovered illegal information sent to a client, and
fired the analyst. Merrill Lynch’s ____ helped reduce resistance to control.
133. ____________________ is the regulation of organizational activities in such a way as to facilitate goal
attainment.
134. Preventing small mistakes and errors from adding up to large problems is called limiting the
____________________.
135. Most organizations define areas of control in terms of the four basic types of resources they use: physical,
human, ____________________ and financial.
136. ____________________ control is concerned with how elements of the organization’s structure are serving
their intended purpose.
137. ____________________ focuses on the processes the organization uses to transform resources into
products or services.
138. A target against which subsequent performance will be compared is a(n) ____________________.
139. The final step in the control process is to determine the need for ____________________ action.
140. Controls applied to screen employees before they are hired are called ____________________ controls.
141. A quality control inspection that takes place while a product is being manufactured is called a(n)
____________________ control.
142. A year-end sales report is an example of a(n) ____________________ control.
143. At Dell, running the computer before shipment is a(n) ____________________ control.
144. A(n) ____________________ is a plan expressed in numerical terms.
145. The expense budget is a type of ____________________ budget that anticipates expenses for the
organization during the coming time period.
146. The nonmonetary budget that focuses on the hours of direct labor available for use is the
____________________ budget.
147. ____________________ budgets focus on such factors as units of output and allocation of space.
148. ____________________ are intended to serve as frameworks, but managers sometimes fail to recognize
that changing circumstances may warrant adjustments.
149. The financial statement that reflects revenues and expenses over a period of time is the
____________________.
150. The calculation of one or more financial ratios to assess some aspect of the organization’s financial health
is the ____________________ analysis.
151. Audits are independent appraisals of an organization’s ____________________ and operating systems.
152. Two major forms of ____________________ control, bureaucratic control and decentralized control,
represent opposite ends of a continuum.
153. Nordstrom, the department store chain, is also moving toward ____________________ control as it works
to centralize all of its purchasing in an effort to lower costs.
154. When the managerial style is participative, the appropriate control style is ____________________.
155. The form of organizational control based on informal, organic structural arrangements is
____________________ control.
156. ____________________ control generally focuses on structure, leadership, technology, human resources,
and information and operating systems.
157. Because of both their ____________________ and ____________________ associated with international
business, global organizations must take an especially pronounced strategic view of their control systems.
158. International organizations that use a(n) ____________________ control system require foreign branches
to report less frequently and in less detail.
159. Control should be linked with ____________________.
160. Tasking a subordinate who does not complain about work instead of a subordinate who complains all the
time, can hurt control by ____________________.
161. Multiple standards and information systems provide checks and balances in control and allow the
organization to verify the ____________________ of performance indicators.
162. Explain the purpose of control.
163. Identify the different types of controls.
164. Briefly describe how controls are classified according to level. Give examples of each type.
165. At the end of the control process there are three possible courses of action. Describe them.
166. Identify a goal you have (such as starting a career). Describe five specific actions you can take that will
control your behavior and help you work toward achieving that goal. How will you measure your progress?
167. Describe the steps in the control process.
168. Imagine you are the author of a nonfiction book. Describe how the three types of operational control will
help ensure that your book is successful.
169. Describe the three forms of operations control.
170. Describe the role of feedback in the control process.
171. Briefly describe the three types of financial budgets mentioned in the text and include what purpose each
type serves.
172. Imagine you are the lead representative for Ford in contract negotiations with the UAW. How can you use
financial controls and budgets to support your position?
173. Briefly describe the strengths and weaknesses of budgeting.
174. Bernard Madoff and his CFO were convicted of fraud. Could internal audits have prevented the downfall
of Bernard L. Madoff Investment Securities LLC? Why or why not?
175. Would you rather work in a company with bureaucratic or decentralized control? Why?
176. Discuss the relationship between strategy and control for a global organization.
177. What are the characteristics of effective controls?
178. Assume you work in a place that monitors all emails and Internet websites viewed. How could your
employer help you appreciate the need for this control?