43) Aliya is a front-line supervisor in a clothing store. She desires to decrease the time she spends
working on doing her daily closing work by 45 minutes. Aliya has set herself a(n)
A) lower-level objective.
B) front-line goal.
C) tactical goal.
D) supervisory objective.
E) operational goal.
44) Luxottica, a manufacturer of fashionable prescription eyewear, notes on its website, “To see
the beauty of life inspires its sustainable and ethical business approach and its corresponding
pillars, including a commitment to excellence, visual well-being, social impact, and environmental
protection.” This excerpt from the company’s website states Luxottica’s
A) code of ethics.
B) business plan.
C) vision statement.
D) expense report.
E) marketing plan.
45) The management of Computer Rescues, Inc. finalized the company’s action plan for increasing
its market share over the next few years. The management then set up a 12-month plan that defines
how the organization will conduct its business based on the action plan, including clear sales
targets for each week. The second plan is an example of a(n) ________ plan.
A) dependent
B) strategic
C) operating
D) facilities
E) typical
46) This month, Susan, the branch manager of Intrepid Car Rentals, has heard several complaints
from customers that Intrepid employees do not return calls. Today a good customer told Susan that
“my phone calls and e-mails are returned after maybe a week or so.” Hearing enough, Susan
mandated that “all customer phone calls and e-mails must be returned within 24 hours.” This new
directive by Alice is an example of a(n)
A) office order.
B) policy.
C) norm.
D) value.
E) ethic.
47) We Deliver trains its truck loaders how to set the packages in the delivery vehicles, so that
when delivery drivers are pulling packages off their trucks, they are organized in a specific order
and with the label facing forward to reduce errors and save time. A(n) ________ is being
implemented when directing that the trucks be loaded in this specific manner.
A) industry standard
B) norm
C) policy
D) rule
E) procedure
48) Which of the following would be used to outline a response to a particular circumstance?
A) procedure
B) industry standard
C) norm
D) program
E) certified procedure
49) If you want all your stores to only accept returns with receipts, this would be an example of
a(n)
A) procedure.
B) industry standard.
C) rule.
D) policy.
E) certified procedure.
50) The head librarian issued a directive that “Absolutely no food or drink are allowed in the
library.” She issued this directive because several computers and keyboards in the computer labs,
as well as several study cubes, were recently damaged by spilled drinks and food. This is a(n)
________ issued by the librarian.
A) procedure
B) industry standard
C) rule
D) level of certification
E) certified procedure
51) ________ are plans developed for activities that are not likely to be repeated in the future, such
as plans for programs or projects.
A) Solo plans
B) Lone-use proposals
C) Individual arrangements
D) Single-use plans
E) Standing plans
52) Harriet, the store manager, asked Lou to organize the prize giveaways for the store’s grand
reopening. Lou is organizing a(n)
A) program.
B) agenda.
C) policy.
D) project.
E) development.
53) A ________ is a single-use plan encompassing a variety of projects or activities.
A) program
B) rule
C) policy
D) project
E) procedure
54) The Human Resources department of Superior Catering conducted a training workshop on
setting and achieving organization goals. DeJohn, the store manager of the Miami location, has
been working with his managers to set objectives that are clearly defined, focused on achieving
specific results, and can be accomplished with a given amount of resources. Which aspect of
SMART goals is missing?
A) Goals should be stated in specific rather than vague terms.
B) Whenever possible, goals should be measurable, or quantifiable.
C) Goals should be challenging, of course, but above all they should be realistic and attainable.
D) Goals should be results-oriented.
E) Goals should specify the target dates or deadline dates when they are to be attained.
55) Which of the following goals satisfies the SMART criteria?
A) “As a talented florist, I will sell $100,000 in flowers.”
B) “This company will greatly improve its performance next year.”
C) “Within the next six months, I will grow my sole proprietorship into a corporation that is larger
than Google and Amazon combined.”
D) “We will improve our customer-service ratings.”
E) “In the next quarter, our Tucson sales rep will increase sales by 10 percent.”
56) Jared told his boss, Maggie, that he is going to start training for the upcoming marathon to be
healthier and to have more energy for work. When Maggie asked him about his running history,
Jared said, “I really have never run before and don’t exercise much. I just know I need to do
something.” Maggie replied, “You should start slowly, maybe setting smaller, realistic exercise
goals that are achievable.” Maggie is helping Jared set a
A) single-use plan.
B) SMART goal.
C) standing plan.
D) simplistic goal.
E) focal point.
57) With setting SMART goals, you should choose only a few goals on which to focus. These
goals should be results-oriented and
A) support the company’s diversity plan.
B) align with the beliefs of the local community.
C) keep employees happy.
D) support the organization’s vision.
E) meet low-cost goals.
58) ________ is the process for motivating employee performance in which the manager and
employee jointly set objectives for the employee, the manager develops action plans, the manager
and employee periodically review the employee’s performance, and the manager makes a
performance appraisal and rewards the employee according to the results achieved.
A) Observation theory
B) MBAO
C) MBO
D) Strategic planning
E) An employee-management agreement
59) Francis, the plant manager, is interested in increasing the facility’s productivity by utilizing
MBO so that his managers and their employees are more focused on objectives. This month
Francis asked his managers to concentrate on the two first steps of MBO, which are
A) for managers to develop an action plan and to give employees a performance appraisal.
B) for employees to develop an action plan and to study the competition.
C) to periodically review performance and to develop an action plan.
D) to review each employee’s performance and to set an action plan based on performance.
E) to jointly set objectives with their employees and to have managers develop action plans.
60) Nick, a hotel general manager, has had great success using MBO. Vivian, his district manager,
has found that Nick’s employees are highly motivated. Because Nick ________, Vivian is able to
discern that he is using MBO.
A) has increased training
B) rewards his employees with compliments, raises, and other benefits as they meet their goals
C) is big on discipline
D) gives few compliments, but is very honest with his employees
E) uses the Outward Theory that proposes discussing issues in open meetings
61) The purpose of MBO is to
A) control subordinates.
B) control costs.
C) control lower-level management.
D) motivate subordinates.
E) increase market share and develop synergy.
62) Research on MBO shows that people are impelled to set more difficult goals when
A) the goals have a significant impact on profitability.
B) employees can avoid personal development.
C) both management and subordinates participate.
D) the goals emphasize corporate social responsibility.
E) ethics are not a consideration.
63) For MBO to be successful, top management must be committed to the program, MBO must be
applied organizationwide, and
A) objectives must cascade.
B) employees need to provide continuous feedback to each other.
C) objectives must remain fixed and unchanging.
D) objectives must be generated from the bottom up.
E) there must be community support.
64) MBO works by objectives moving through the organization; that is, top managers set general
organizational objectives, which are translated into divisional objectives, which are translated into
departmental objectives. The hierarchy ends in individual objectives set by each employee. This is
an example of MBO working as objectives ________ through the organization.
A) move upward
B) move outward into the community
C) change significantly
D) cascade down
E) become less refined and more generalized
65) All the following are ways to increase your proactive learning skill except
A) focus on solutions rather than problems.
B) take the initiative and rely on yourself.
C) set realistic goals and don’t overpromise.
D) compare yourself to others.
E) participate in and contribute to personal and professional conversations.
66) To ensure that plans are moving in the right direction, managers can use a(n)
A) means-ends chain.
B) synergy method.
C) efficiency plan.
D) planning/control cycle.
E) satisficing strategy.
67) The planning/control cycle has two planning steps. They are
A) (1) research planning, then (2) receive feedback.
B) (1) make the plan, then (2) set it aside for a period of time.
C) (1) make the plan, then (2) carry out the plan.
D) (1) review previous plans, then (2) evaluate plans.
E) (1) research planning, then (2) look for ways to cut costs.
68) Charmaine, a district manager for a global retailer, is traveling to different stores in her district
to discuss with store managers how to increase profitability for the rest of the fiscal year. What is
Charmaine doing?
A) eliminating the planning/control cycle
B) avoiding the planning/control cycle
C) controlling the direction of the planning/control cycle
D) researching the planning/control cycle
E) forecasting the planning/control cycle
69) Greg, the owner of a lawn care service, likes to meet with his employees six months after their
yearly evaluation to discuss how they are progressing on suggestions and plans to improve their
yearly job evaluation. At this point, by comparing the six-month results with the past evaluation,
Greg is in the ________ step of the planning/control cycle.
A) control
B) planning
C) organizing
D) observation
E) termination
70) The planning/control cycle has two control steps: (1) control the direction by comparing
results with the plan and (2) control the direction by taking corrective action in two
ways—namely, by
A) receiving feedback, and, if needed, making new plans.
B) researching ways to plan better and increasing profits.
C) increasing organization synergy and diversity.
D) correcting deviations in the plan being carried out or improving future plans.
E) improving future plans, and, if needed, cutting costs.
71) At the end of the company retreat, Dashaun had a blueprint for how to move forward for the
year. His primary objective had been met. What do you think his primary objective was?
A) to have an outline of how the goals were going to be met
B) to have an explanation of the company’s new slogan
C) to understand the financials so that he could explain them to the shareholders
D) to have a guide for ethical decision making
E) to have a set of research and development priorities
72) You are reading a ________ that outlines your company’s long-term goals and direction. These
goals include “Reduce energy consumption in our offices by 20 percent,” “Grow our market share
in China from 3 percent to 10 percent,” “Enter a strategic alliance with a partner in Australia to
begin selling our products in Sydney and Brisbane,” and “Equip all sales representatives with an
app that allows them to provide an immediate quote when meeting with customers.”
A) values statement
B) business plan
C) SMART goal
D) vision statement
E) strategic plan
73) Lauren wants to develop her proactive learning skills in order to increase her career readiness.
What would you advise her to do?
A) Write a letter to the editor about potholes in her town’s streets.
B) Contribute to a LinkedIn conversation about trends in her industry.
C) Listen to a podcast about the job market for college graduates.
D) Plan a trip abroad.
E) Read an article about different résumé formats.
74) You have an idea for a company that sources fruits from local farms and makes fresh juices on
a daily basis. You want to start a subscription-based service in which households within a 100-mile
radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example,
cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you
ask yourself: Am I being responsive to the customer? Is it innovative? Can I offer a quality
product? After asking these questions, review and identify which question you forgot to ask that
would give you a sustainable advantage.
A) Is the resource or capability valuable?
B) Is the resource or capability currently controlled by only a few firms or no other firms?
C) Is the firm organized to exploit the resource of capability?
D) What values should be emphasized?
E) What is its level of effectiveness?
75) Based on planning and strategic management principles, which of the following start-up
companies has the LEAST potential to have a competitive advantage, to be profitable, and to
grow?
A) a cat-sitting service, where you take care of people’s cats when they are on vacation; you decide
to advertise your services on Craigslist and the local newspaper
B) a “companionship” service for elderly people who live alone because their children are busy
working full-time jobs; working adults say such a service would be extremely valuable
C) the only farm within a 100-mile radius that offers its customers organic beef and organic dairy
products such as eggs and milk; no other local company offers these products
D) a portrait-painting service by a talented artist who is known for his ability to make all men look
handsome and all women look beautiful; very few other artists in the local area have this talent
E) an enrichment program for children that hires talented people and sends each of them to a
different school each day of the week; a web-based app helps the manager keep track of all the
employees’ schedules and locations
76) The Publix chain of supermarkets has stated, “We will not knowingly disappoint you. If for
any reason your purchase does not give you satisfaction, the full purchase price will be cheerfully
refunded immediately upon request.” This proclamation is Publix’s
A) vision statement.
B) values statement.
C) mission statement.
D) corporate slogan.
E) company tagline.
77) Which of the following is an example of a mission statement?
A) “to create a world where the family farm is valued over the large-scale production of
agribusiness”
B) “to become a beacon of hope for those suffering from mental hardship”
C) “to make education accessible to everyone in the world”
D) “to engage in business practices that are not only legal but also ethical”
E) “to offer the lowest prices on new hardcover books, anywhere in the world”
78) A short-term goal usually spans ________ while a long-term goal typically spans ________.
A) 1 month; 3 months.
B) 3 months; 1 year.
C) 12 months; 1 to 5 years.
D) 2 weeks; 6 months.
E) 3 years; 10 years.
79) You receive a memo that reads as follows: “In recent months, our customer evaluations have
dropped, and our sales have decreased by 10 percent. To restore our business, we will do the
following: (1) We will contact all of our customers and offer a 10 percent discount on their next
purchase. (2) For the customers who spend more than $1,000 per year, we will invite them to join
our Insiders’ Club, which gives them discounted tickets to concerts and sporting events.
(3) Effective immediately, we will begin staffing our call center 24 hours a day, 7 days a week.
(4) Customer-service personnel will be given more discretion in helping customers resolve
problems, with minimal interference from supervisors.” This memo is a(n)
A) mission statement.
B) VRIO analysis.
C) business model.
D) action plan.
E) a SMART goal.
80) Which of the following is intended for one-time use and is not likely to be repeated in the
future?
A) Bed, Bath and Beyond accepts coupons after they expire.
B) DSW will only issue store credit for returns without a receipt.
C) SpaceX put a car in space.
D) Once you have opened a DVD, Target will not accept it as a return.
E) Nordstrom’s will accept returns for up to one year.
81) Which of the following is an example of a rule?
A) “We believe that the customer comes first.”
B) “We are committed to hiring a workforce whose diversity mirrors our customers.”
C) “An employee who comes to work intoxicated will be terminated immediately.”
D) “Sexual harassment will not be condoned in this organization.”
E) “At their discretion, department managers can offer summer working hours to their employees.”
82) While preparing a self-assessment of your job performance the previous year, you are required
to list three goals for the coming year. You list the following as one of your goals: “I will triple
sales in my territory by the end of the next fiscal year.” Based on the SMART criteria, what is the
problem with this goal?
A) It does not have a target date.
B) It is not specific.
C) It is not measurable.
D) It is not results-oriented.
E) It is not attainable.