62) A document that outlines the major tasks and responsibilities of a cashier is a ________.
A) job description
B) role analysis
C) job brief
D) task description
63) You are director of transportation for a large Midwestern city, overseeing a staff of 1,200
unionized public-sector employees. What type of organization do you work for?
A) private foundation
B) not-for-profit organization
C) governmental organization
D) corporation
64) You are president of a company with 38 brick-and-mortar flower shops. The board has
decided the company should expand into e-commerce. You tell your vice-presidents about the
shift in strategy. They will in turn pass the word down through the ________ to lower level
managers, supervisors, and employees.
A) chain of command
B) value chain
C) division of labor
D) matrix
65) Nikki has just been hired as director of financial operations for a footwear company. Her
employee orientation packet includes a copy of the company’s ethical guidelines, which she must
read and sign before starting work. This document address Nikki’s ________ on the job.
A) authority
B) accountability
C) responsibility
D) leadership
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66) Patricia, a recent college graduate, is a junior architect at a downtown firm. After several
months, she has become frustrated because even the simplest design change on a project must
pass through four levels of management for approval. This is an example of ________.
A) centralized decision making in a matrix
B) inefficiency in a hierarchical organization
C) inefficiency in an organic organization
D) decentralized decision making in an adaptive organization
67) Kimanee has been working as a designer for a line of hip-hop clothes. He expected the
company would have a loose, youthful vibe, but was surprised to find a very hierarchical
structure that seems to stifle creativity. Kimanee suggests that the company form small design
teams to spur innovation. His idea would make the company more ________.
A) organic
B) mechanistic
C) vertical
D) ethical
68) Marta was recently named president of a natural cosmetics company. Despite having a
cheerful demeanor, most of her friends would say she is a control freak — and Marta would
agree. Which of the following would Marta prefer?
A) flat organizations
B) centralized decision making
C) decentralized decision making
D) organic organizations
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69) Hideo, an organization design consultant, was hired by a large software company to help
improve operational efficiency. Hideo tells the president that he may be able to eliminate one
complete level in the company hierarchy. This is likely to ________.
A) decrease the span of leadership
B) increase the span of leadership
C) eliminate the span of leadership
D) eliminate the chain of command
70) Ignacio is an expert in motivation. Speaking at a luncheon for business executives, he says
that a key strategy to motivate employees is empowering them. This will result in more
________ decision making.
A) equitable
B) progressive
C) centralized
D) decentralized
71) Gina has successfully led three companies during her career, and is a big fan of flat
organizational structures that empower employee teams. Gina believes this approach is effective
because people ________ typically make the best decisions.
A) with the most authority
B) with the most experience
C) who are farthest from the work
D) who are closest to the work
72) Paul runs a cutting machine with routine processes at a tool-and-die factory. Which of the
following guides his job?
A) cooperative decision making
B) standard operating procedures
C) managing up
D) span of control
73) Wanda is part of the customer service team for a company. Every week the team meets with
senior management to report on feedback received from customers and recommend changes that
address customer concerns. Based on this situation, which adjective best describes Wanda’s
company?
A) tall
B) adaptive
C) centralized
D) hybrid
74) Ben and Kelly are working on an organization design for their new company. While Ben
prefers a traditional hierarchy, Kelly envisions “flat” teams within a “tall” organization. What
does Kelly prefer?
A) matrix structure
B) departmentalized structure
C) traditional structure
D) hybrid structure
75) Tito loves his job because he is part of a fairly autonomous and independent work team. In
fact, there are many such teams in the organization. Which of the following best describes the
structure of Tito’s company?
A) starfish
B) spider
C) S-corporation
D) tall
76) Betty is attending a one-day retreat with her company’s management team. The group is
exploring questions such as “How do our values affect our actions?” and “Do we have a clear,
shared sense of purpose?” What would be a good name for this retreat?
A) Is Our Company a Well-Oiled Machine?
B) Organizational Culture Examined
C) We Work in a Living Organism
D) Where Is Your (Company) Brain?
77) A chain of large warehouse stores has separate teams devoted to clothing, groceries,
appliances, and electronics. This is an example of ________.
A) process departmentalization
B) matrix structure
C) product departmentalization
D) network structure
78) Who has the greatest span of leadership?
A) one of two U.S. Senators from California, a state with a population of over 35 million
B) the governor of New York, a state with over 20 million people
C) one of 435 U.S. Representatives in a nation with just over 300 million people
D) one of 80 members in the California State Assembly
79) From an open systems theory perspective, ________.
A) an organization is constantly changing its environment, but the environment does not change
the organization
B) the environment is constantly changing the organization, but the organization does not change
the environment
C) both the organization and the environment are constantly changing one another
D) the organization and the environment are unrelated
80) The Walt Disney Corporation owns about a 40% stake in the History Channel, an 80% stake
in ESPN, and a 100% interest in the Disney Channel. Which statement is TRUE?
A) The Walt Disney Corporation has a cross-equity alliance with ESPN and the Disney Channel.
B) The Walt Disney Corporation has two wholly owned affiliates: ESPN and the Disney
Channel.
C) The Walt Disney Corporation has an equity alliance with the History Channel, and the Disney
Channel is a wholly owned affiliate of the Walt Disney Corporation.
D) The Walt Disney Corporation has a cross-equity alliance with the ESPN, and the Disney
Channel is a franchise of the Walt Disney Corporation.
81) Which statement is TRUE?
A) A corporation never needs to worry about double taxation.
B) A sole proprietorship never needs to worry about liability.
C) An LLC never needs to worry about double taxation.
D) A partnership never needs to worry about double taxation.
82) Which statement is TRUE?
A) An S corporation and an LLC are identical.
B) An S corporation and an LLC both limit liability.
C) An S corporation and an LLC both avoid double taxation in all cases.
D) An S corporation and an LLC both pay corporate taxes.
83) Which statement is TRUE?
A) Shareholders are likely to suffer consequences when a corporation loses a lawsuit.
B) Shareholders are not likely to suffer consequences when a corporation loses a lawsuit.
C) Partners are not likely to suffer consequences when a partnership loses a lawsuit.
D) A sole proprietor is not likely to suffer consequences when his or her company loses a
lawsuit.
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84) Luke owns a business, but his employees must wear the uniform of a nationally recognized
company that dictates the marketing plan and operations procedures. What kind of a business
does Luke own?
A) product distribution franchise
B) business format franchise
C) licensed IP
D) cross-equity alliance
85) A friend has recommended you apply for a job in his company. You know nothing about the
organization except that it is flat, organic, and adaptive. Which of the following organizations
fits this description?
A) a very large technology company like Microsoft or Intel
B) a small company that manufactures mountain climbing equipment
C) a large company that makes car transmission gears
D) a very small consulting firm that specializes in intellectual property
86) Liane works for a corporation with a very strong hierarchical structure. Her own work unit,
however, is a completely adaptive, totally democratic group in which each member is fully
empowered to make critical decisions at all levels. How would you characterize the structure of
Liane’s organization?
A) hybrid
B) matrix
C) network
D) cross-functional
87) A hardware chain decides to abandon the homeowner market and focus exclusively on
professional contractors. This requires the company to modify how its employees work and are
organized. This is an example of ________.
A) structure determining strategy
B) structure determining productivity
C) strategy determining structure
D) strategy affecting philosophy
88) Explain the paradox in human workplace dynamics that often results in the formation of
hybrid structures.
89) Why would a company like Google choose to take on a wholly owned affiliate like YouTube
rather than just integrate YouTube into the company?
90) Ming’s catering company is structured as a sole proprietorship. The business has grown and
he is hiring more employees and getting high-profile jobs. Ming is worried about the personal
impact of potential lawsuits such as an employee getting burned or a refrigerator failing before a
huge party. What would you advise Ming to do?
91) Matt is creating a start-up company. He is not concerned about liability issues, but he is
worried about high taxes. Which legal structure should Matt’s accountant recommend?
92) Define environmental uncertainty and provide a current, real-life example.
93) How does a matrix structure work? Give an example.
94) What is flexible specialization? What is the benefit of this approach? Give an example of
how functional specialization can work in manufacturing.
95) Olivia is a salesperson in a huge downtown department store. This role doesn’t have much
status in the organization. How can Olivia take on more power in her current circumstances?
96) In some cases, job specialization reduces employee motivation and productivity. Give an
example of how specialization can increase motivation and productivity. Explain your rationale.
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97) Explain open systems theory and give an example of it at work in the restaurant business.