Licensing and franchising typically follow the export-import phase of globalization.
Robert House’s path-goal theory maintains that an effective leader clears the path for a
follower to the follower’s goal.
Since it is impossible to predict the future, projected income estimates are not part of a
good business plan.
Traditional organizations are structured in a pyramid, with the power and authority
located in the pyramid’s broad base.
Consultants are less likely to be change agents than internal managers.
The break-even point is computed by the formula BE = TFC/(P – VC)].
The behavioral approach to management began in the 1960s with organizational
behavior (OB).
A rigid, militaristic, high-pressure workplace that includes intimidation is likely to be a
dysfunctional work environment.
According to a recent poll, 50 percent of adults feel that economic inequality is not a
problem.
In the economic order quantity (EOQ) model, one of the costs that gets considered for
analysis is the carrying costs of tying up money with inventory.
Uncertainty involves a situation in which the probability of a certain outcome is known
to be small.
In a team structure, team members are not held responsible for their decisions.
The two primary factors that affect the legal structure of an entrepreneurial organization
are taxes and legal liability.
Liquidity is a measure of an organization’s ability to access cash to meet its debt
obligations.
Which of the following identifies the goal of managers who use the economic order
quantity (EOQ) model?
A) minimizing carrying costs and ordering costs
B) maximizing carrying costs and ordering costs
C) maximizing carrying costs and minimizing ordering costs
D) maximizing carrying costs and total costs
Which of the following are NOT basic elements of organizational structure?
A) work specialization, span of control
B) chain of command, line authority
C) centralization, decentralization
D) departmentalization, formalization
Goal-setting tends to do well in ________, where its basic ideas align well with general
cultural values.
A) North America
B) South America
C) India and China
D) the Middle East
Which of the following defines a problem in the decision-making process?
A) a discrepancy between what exists and what the decision maker desires to exist
B) a discrepancy between the ideal and the practical
C) something that causes irritation
D) something that calls for attention
Which of the following would be likely to be true in a country with a high power
distance?
A) Hundreds of statues, billboards, and posters of the leader would appear all over the
capital.
B) The leader’s likeness would appear only in the newspaper from time to time.
C) Top managers and employees would dress in similar ways.
D) Rather than employ a driver, top managers would drive their own cars to work.
The main difference between work groups and work teams is that ________.
A) work teams have a common goal
B) work groups have a common goal
C) work teams share information
D) work groups share information
The CEO of a major corporation experiences emotional problems and is treated for his
condition by a psychiatrist. After being arrested and repeatedly behaving in bizarre and
erratic ways, the company’s board tries to oust the CEO but fails, so he remains in
office. Following the failure to oust him from office, the CEO makes a series of brilliant
decisions that vault the company into unprecedented success. Which of the following
do the CEO’s stakeholders have the most legitimate right to ask for?
A) that the CEO resign from his position
B) that the CEO be given a “figurehead” position in which he is no longer responsible
to make decisions
C) that the CEO appoint a colleague to share his leadership position and keep an eye on
him
D) that the CEO decrease his medication dose
Which category of follower is considered to be able but unwilling to complete a task?
A) R1
B) R2
C) R3
D) R4
Proof that the pyramids were well-managed projects can be seen in the fact that they
________.
A) are famous the world over
B) are unique
C) have lasted thousands of years
D) were built in a desert land
Which kind of company would be less likely to fire its CEO after a poor performance?
A) a company with a symbolic view of management
B) a company with a realistic view of management
C) a company with an external view of management
D) a company with an omnipotent view of management
One secret to a successful career is to identify your ________ and develop it to the
fullest.
A) special ability
B) strength
C) main interest in life
D) competitive advantage
The personal secretary of a top manager may have ________.
A) power but not authority
B) authority but not power
C) power and authority
D) line authority but not staff authority
A technique that helps employees deal with change that appeals to their sense of logic is
________.
A) manipulation
B) education and communication
C) coercion or threats to employees
D) co-optation
Equity theory recognizes that individuals are concerned with ________.
A) making enough money to live on
B) employers sharing profits
C) comparing their rewards to those of others
D) justice for all people who work
Which of the following best summarizes Blake Mycoskie’s (the founder of TOMS
shoes) business philosophy?
A) A business should be ethical but not socially responsible.
B) A business should be socially responsible but not ethical.
C) A business should be both ethical and socially responsible.
D) A business should not worry about being either ethical or socially responsible.
Which organizational myth is not supported by the experiences of companies such as
Arthur Andersen, Borders Group, Enron and Circuit City?
A) Strong organizational culture will always prevail.
B) A brilliant business plan will lead to success.
C) Customers are always right.
D) Too big to fail
Which of the following is synonymous with work specialization?
A) division of labor
B) job discrimination
C) chain of command
D) job preference
Group norms typically are established ________.
A) by organizational leadership
B) formally by group leaders
C) informally by the entire group
D) in the official organizational bylaws
In a short essay, explain through examples how a process can be (a) efficient but not
effective and (b) effective but not efficient.
Annual losses from organizational theft and fraud amount to about ________ per
worker.
A) $500
B) $2500
C) $4500
D) $6000