A diversification strategy focuses on a company becoming its own supplier of inputs.
Customers played a role in IKEA’s success by being willing to pay higher prices for
high-quality furniture.
Transnational corporations run their businesses from their home country.
Defining goals is a key part of the organizing function of management.
Legal issues for an entrepreneurial organization typically are addressed after the
organization is up and running.
Nonvisionary entrepreneurial leaders usually outperform visionary entrepreneurial
leaders.
Hofstede based his ratings on the traits of people of different nationalities with whom
he was personally acquainted.
Liquidity compares the total amount of debt a company has to its total assets.
Organizational behavior is primarily concerned with group interactions.
Experts believe that in the future, income disparity between countries and individual
wage earners will be eliminated.
Since charisma is an inborn trait, no efforts have ever been made to train people to be
charismatic.
Using special language and unique terms to describe things is part of how culture is
communicated.
In the economic order quantity (EOQ) model, increasing the order size will decrease
ordering costs.
An advantage of management by walking around is ________.
A) perceptual biases
B) obtrusiveness
C) personal contact
D) objectivity
Software Entrepreneurial Venture (Scenario)
Theodore and James have formed TJ Soft, an entrepreneurial venture to develop games
and other kinds of software for consumers. Their company, which includes TJ Soft
stores, is looking for opportunities in the future that include international operations.
A foreign company wants to be able to copy and manufacture TJ Soft programs and sell
them in its stores. What would be an appropriate approach for them to use?
A) licensing
B) franchising
C) renting
D) appropriating
Expectancy theory and goal-setting theory align well with American workers because
American culture places a strong emphasis on ________.
A) collectivism and achievement
B) achievement and individualism
C) individualism and high power distance
D) low power distance and high uncertainty avoidance
Which of the following traits do all creative people seem to share?
A) They like to save time.
B) They get along well with others.
C) They love their work.
D) They don’t like to work hard.
The form of legal ownership that an entrepreneur chooses for a venture primarily
affects these concerns.
A) profit and productivity
B) taxes and liability
C) liability and planning
D) taxes and revenue
The decision tree shows the profit outcomes for a toy store in a strong and a weak
economy for next year. What is the expected value of the store’s profit in a strong
economy?
A) $10,500
B) $15,000
C) $16,000
D) $30,000
A top-level manager is most likely to solve problems under which condition?
A) certainty
B) risk
C) uncertainty
D) high certainty
Which of the following is NOT a characteristic of a small business?
A) has cutting edge, innovative business practices
B) has about 200 employees
C) is not a “player” with impact within its industry
D) has a relatively small market share of its product
Filtering tends to be more prevalent in this kind of organization.
A) organic
B) highly vertical
C) highly horizontal
D) nonmechanistic
When should a manager’s course of action be to do nothing?
A) when the cause of the variation has been identified
B) when the standard is acceptable
C) when the standard is not acceptable
D) when the variance is acceptable
One advantage of group decision making is that it usually provides ________ than
individual decision making.
A) faster decisions
B) more ethical decisions
C) less confusion
D) more information
One advantage of feedback control over other forms of control is that it lets managers
focus on ________.
A) what is about to take place
B) how on target their planning efforts were
C) how effective their organizing efforts were
D) the task as it is being carried out
Tactical plans are operational plans that identify ________.
A) overall organizational goals
B) how overall goals are to be achieved
C) the mission of an organization
D) specific goals for accomplishing a specific objective
In which country would highly centralized decision making be more likely to be
prevalent?
A) Mexico
B) Scotland
C) Japan
D) Australia
Jeff, a manager at the Flux Soap Store, notices that the store regularly runs out of
Jasmine-Berry soap. Currently, the reorder point is fixed when inventory reaches 40
percent of maximum. Which adjustment should Jeff make in a fixed-point reordering
system?
A) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap
is at 30 percent of maximum.
B) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap
is at 10 percent of maximum.
C) Jeff should raise the reorder level to a point where inventory of Jasmine-Berry soap
is at 50 percent of maximum.
D) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap
is at half of the previous level.
In most cases, strategic goals include ________.
A) all financial objectives
B) all objectives that are not financial
C) all objectives, both financial and nonfinancial
D) some financial objectives
Job specialization entails breaking down a complex job into ________.
A) five key components
B) broad general categories
C) simple, narrow repetitive tasks
D) nonrepeating tasks
This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2,
S3, and S4 for Sam’s Pizza and competitive strategies CA1, CA2, and CA3 for Pam’s
Pizza. What is the maximum regret value for S2?
A) 24
B) 15
C) 5
D) 0
In a short essay, identify the principles of management identified by Henri Fayol that
are most important for establishing a manager’s control over employees.
In a short essay, explain which theories work best for certain cultures. The discussion
should include Maslow’s need hierarchy, the three-needs theory, and the equity theory.
In a short essay, discuss Porter’s focus strategy.
In a short essay, explain how regulations might be used to reform the economy in the
wake of the recent downturn.
In a short essay, describe how electronic meetings can help avoid groupthink and
enhance creativity in group decision making.
Explain why it is better to be a specialist than a generalist in the work world.
In a short essay, list and discuss how Maslow’s hierarchy of needs theory works.
In a short essay, define and discuss quality control in an organization.
In a short essay, list and discuss the final four steps in the decision-making process.
Give an example of each step.
In a short essay, list and explain four common organization development (OD)
techniques.