BME 11

Chap 1
1) A common middle-management title is:
a) chief executive officer.
b) division head.
c) supervisor.
d) coordinator.
2) involves selecting a course of action from a set of alternatives.
a) Job deskilling
b) Leading
c) Decision making
d) Controlling
3) The _____ proposed that workers respond primarily to the social context of the
workplace, including social conditioning, group norms, and interpersonal dynamics.
a) management science perspective
b) organizational theory
c) classical management perspective
d) systems theory
e) human relations movement
4) The skills necessary to accomplish or understand the specific kind of work done in an
organization are called _____ skills.
a) spatial
b) conceptual
c) time management
d) technical
e) diagnostic
5) Which of the following focuses on the management of the entire firm as opposed to the
jobs of
individual workers?
a) Theory X
b) Administrative management
c) The Hawthorne studies
d) The Contingency theory
e) Scientific management
6) Which of the following is a Theory Y assumption?
a) People do not naturally dislike work.
b) People are not internally motivated to achieve their goals.
c) People like to be directed as they want security.
d) People perform better when they are threatened by the manager.
e) Social processes do not influence the performance of workers.
7) Which of the following statements is true about operations management?
a) It relies more on mathematical models than management science.
b) It can be applied more directly to managerial situations than management science.
c) It exclusively focuses on improving employee attitudes and behavior
d) It is more statistically sophisticated than management science.
e) It cannot be applied to inventory control and production operations of an organization
8) Which of the following statements is true about the contingency perspective?
a) It is a part of the classical perspective of management.
b) It states that the behavior of employees at work is not influenced by social processes.
c) It states that effective managerial behavior in one situation cannot always be generalized to
other situations
d) It states that the organizations which are not influenced by their external environments tend
to be more successful than others.
e) It states that all employees tend to perform better when they are promised higher
incentives.
9) Which of the following statements is true in the context of contemporary management
trends?
a) The emphasis on business ethics has declined.
b) The emphasis on management of diversity has declined.
c) The service sector of the economy has steadily declined.
d) More and more organizations are using quality as a basis for competition.
e) Younger people entering the workforce over the past 20 to 30 years are more devoted to
work and more willing to adapt.
10) Which of the following statements is true of administrative management?
a) It encompasses the concepts of planning, organizing, and controlling.
b) It deals with the jobs of individual employees.
c) It exclusively focuses on individual attitudes and behaviors and group processes.
d) It focuses solely on combating soldiering.
e) It was first introduced by Frank and Lillian Gilbreth.
11) Which of the following would be included in the management function of planning?
a) Monitoring progress toward the achievement of goals
b) Organizing people and resources
c) Selecting the course of action most likely to lead to success
d) Motivating others to higher levels of achievement
e) Communicating company policies to subordinates
12) Winston is often intimidated and uncomfortable with his superiors. Winston needs to
develop his _____ skills to be able to communicate easily with his superiors.
a) time management
b) conceptual
c) interpersonal
d) spatial
e) diagnostic
13) _____ work in areas like new product development, promotion, and distribution.
a) Plant managers
b) Marketing managers
c) Operations managers
d) Finance managers
e) Human resource managers
14) _____ refer to a manager’s ability to prioritize work, to work efficiently, and to
delegate work appropriately.
a) Diagnostic skills
b) Time-management skills
c) Commanding skills
d) Decision-making skills
e) Conceptual skills
15) _____ managers implement company policies while also supervising lower-level
managers.
16) A Theory Y assumption is that:
a) people are committed to goals to the degree that they receive personal rewards when they
reach their objectives.
b) people naturally dislike work and try to avoid it.
c) incentives rather than social processes influence workers.
d) people prefer to be directed, to avoid responsibility, and to want security; they have little
ambition.
e) managers have to control, direct, coerce, and threaten employees to get them to work toward
organizational goals.
Middle
17) A common middle-management title is:
a) coordinator.
b) division head.
c) chief executive officer.
d) supervisor.
e) office manager.
18) A management process is considered to be effective when:
a) decisions are made independently of the organization's external environment.
b) the right decisions are made and implemented.
c) overhead production costs are increased.
d) the organization is highly centralized.
e) the same amount of resources are allocated to all the functions of the organization.
19) The management at Beta Corp. has introduced new employment policies. The mangers
are now tracking and monitoring the implementation of the new policies. Which of the
following management functions is illustrated in the scenario?
Organizing
Deskilling
Leading
Controlling
Planning
20) The management function of leading involves:
grouping activities and resources.
creating organizational strategies.
motivating and influencing others.
setting an organization's goals.
interacting with the external business environment.
21) Emilio says, "Employees and situations are unique. Sometimes I get good results by
trying one approach, sometimes I decide to do something completely different." Emilio's
statement is best aligned with which of the following management views?

Administrative management
The generalist perspective
Theory X
The contingency perspective
The classical theory
22) In the Hawthorne Studies, workers who overproduced were branded as _____.
chiselers
producers
operators
rate busters
squealers
23) In the systems perspective, _____ emphasizes the importance of working together in a
cooperative and coordinated fashion.
uniformity
synergy
diversity
contingency
entropy
24) Jordon, a manager, realizes that many employees are leaving the organization. He
identifies inconvenient work timings and some of the new employment policies as the
causes. Jordon decides to introduce better policies and flexible work timings to reduce
employee turnover. This scenario illustrates Jordon's _____ skills.
technical
spatial
time management
diagnostic
mechanical
25) Lillian Gilbreth was one of the earliest advocates of:
administrative management.
theory X and Y.
the contingency theory.
the Hawthorne studies.
scientific management.
Chap 2
1) Alex, one of the proprietors of Atlas Corp. is worried.The stock market was not doing
well, unemployment was 10 percent, inflation was on the rise again, and government
debt was still increasing. These concerns of Alex are related to the _____ dimension of
the general environment of Atlas Corp.
a) political
b) sociocultural
c) economic
d) legal
e) technological
2) An interest group is a form of a _____.
a) competitor
b) supplier
c) board of directors
d) strategic partner
e) regulatory agency
3) A(n) _____ occurs when an employee’s decision potentially benefits the individual to the
possible detriment of the organization.
a) act of incitement
b) security breach
c) violation of organizational culture
d) conflict of interest
e) loss of confidence
4) _____ are hired for short periods of time and provide greater flexibility, earn lower
wages, and often do not participate in benefits programs.
a) Interest groups
b) Suppliers
c) Regulatory agencies
d) Strategic allies
e) Temporary workers
5) _____ are, in effect, export quotas.
a) Export restraint agreements
b) Export licensing agreements
c) Service-level agreements
d) Export tariffs
e) Strategic alliance agreements
6) Ethical issues in corporate governance are primarily the responsibility of:
a) strategic partners.
b) interest groups.
c) employees.
d) federal regulatory agencies.
e) the board of directors.
7) In a(n) _____, two or more firms share equal ownership of a new enterprise.
a) technology transfer
b) joint venture
c) economic community
d) interest group
e) direct investment
8) _____ is a law that requires CEOs and CFOs to vouch personally for the truthfulness
and fairness of
their firms’ financial disclosures and imposes tough new measures to deter and punish
corporate and accounting fraud and corruption.
a) Commodity Futures Modernization Act of 2000
b) Sarbanes–Oxley Act of 2002
c) Glass–Steagall Act of 1933
d) Gramm–Leach–Bliley Act of 1999
e) Investment Company Act of 1940
9) _____ is the extent to which the organization conforms to local, state, federal, and
international laws.
a) Technological compliance
b) Ethical compliance
c) Philanthropic giving
d) Risk management
e) Legal compliance
10) Making a product in the firm’s domestic marketplace and selling it in another country
is known as _____.
a) joint venture
b) direct investment
c) competing
d) franchising
e) exporting
11) Organizations that provide resources to other organizations are known as:
a) suppliers.
b) importers.
c) competitors.
d) interest groups.
e) regulators.
12) Ralph Corp. and Swan Inc. are strategic partners. In this context, which of the
following statements is most accurate?
a) Ralph purchases raw materials from Swan in large volumes and uses it to manufacture its
products for retail sale.
b) Ralph and Swan produce the same goods and share the same market.
c) Ralph has been using the media to call attention to the negative impact of using Swan's
products.
d) Ralph procures and provides all the raw materials and labour used by Swan for production.
e) Ralph sells Swan's merchandise at its stores and Swan promotes Ralph stores in its
advertisements.
13) Soft Bites, a factory that makes breads, has asked all its retailers to return the loaves
that have not been sold till the last date of expiry. It then donates all these loaves to shelters
for the poor and the homeless. This act of Soft Bites can be termed as _____.
a) ethical compliance
b) legal compliance
c) philanthropic giving
d) apprentice sponsoring
e) corporate gifting
14) The French government charges a 25 percent tax on all American fruits and vegetables
that are sold in France. This tax collected by French authorities is a(n) _____.
a) import tariff
b) direct investment
c) strategic alliance
d) license
e) export tariff
15) The _____ is a trade agreement intended to promote international trade by reducing
trade barriers and making it easier for all nations to compete in international markets.
a) North American Free Trade Agreement (NAFTA)
b) Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)
c) Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)
d) General Agreement on Tariffs and Trade (GATT)
e) Agreement on Technical Barriers to Trade (TBT)
16) The set of obligations that an organization has to protect and enhance the societal
context in which it functions is called its:
a) legal responsibility.
b) financial responsibility.
c) cultural responsibility.
d) ethical responsibility.
e) social responsibility
17) The term _____ refers to behavior that conforms to generally accepted social norms.
Which of the following is true of quotas in trade?
a) It is the tax breaks given by the host government.
b) It is used to encourage strategic alliance.
c) It is used to increase domestic competition.
d) It is used most commonly to restrict trade.
e) It is a form of tax collected on imported goods.
18) Which of the following would supply capital to a business?
a) Employees
b) Banks
c) Regulators
d) Board of directors
e) Employment agencies
19) The _____ of the general environment is made up of the methods available for
converting resources into products or services.
Technological Dimension
20) The term _____ refers to behavior that conforms to generally accepted social norms.
Ethical Behavior

Chap 3
1) A difference between tactical and strategic plans is that:
a) tactical plans have a more concrete focus.
b) tactical plans are set for and by the board of directors.
c) tactical plans have broader time horizons.
d) strategic plans are developed by first-line managers.
e) strategic plans deal with the day-to-day operations of an organization.
2) A _____ is the most general form of standing plan that specifies the organization’s
general response to a designated problem or situation.
a) project
b) standard operating procedure
c) policy
d) program
e) single-use plan
3) A(n) _____ is an area in an organization's environment that, if exploited, may generate
higher performance
a) organizational opportunity
b) economic downswing
c) organizational strength
d) process gain
e) process loss
4) An organization’s fundamental purpose is stated in the organization’s _____. An
organization that pursues a single-product strategy:
a) clusters relayed products in a single strategic business unit.
b) manufactures a range of products that are related to each other in some way.
c) uses a single marketing strategy for all its products.
d) operates in a single geographic market.
e) creates a separate business unit for each product it sells.
5) A standing plan that outlines the steps to be followed in a particular circumstance is
called a(n):
a) standard operating procedure.
b) single-use plan.
c) program.
d) contingency plan.
e) project
6) During the growth stage of the product life cycle,:
a) most companies downsize.
b) the demand is the lowest.
c) competitors start exiting the industry.
d) more firms begin producing the product.
e) sales rapidly decline.
7) Firms that implement a strategy of _____ operate multiple businesses that are not
logically associated with one another.
a) single-business unit
b) unrelated diversification
c) entropy
d) nondiversification
e) synergy
8) In a BCG matrix, _____ are businesses that have a large share of a market that is not
expected to grow substantially.
a) stars
b) cash cows
c) entropies
d) question marks
e) dogs
9) _____ include things like a deep pool of managerial talent, surplus capital, a unique
reputation and/orbrand name.
a) Market opportunities
b) Organizational opportunities
c) Market strengths
d) Environmental strengths
e) Organizational strengths
10) In the context of the GE Business Screen, a determinant of an organization's
competitive position is:
a) capital requirements.
b) market growth.
c) government policies.
d) market size.
e) product quality.
11) In the GE Business Screen portfolio management technique, businesses that have good
competitive position in an attractive industry are known as:
a) losers.
b) winners.
c) profit producers.
d) question marks.
e) cash cows.
12) Operational goals are set by:
a) first-line managers.
b) top-level managers.
c) the board of directors.
d) shareholders.
e) investors.
13) _____ planning refers to the determination of alternative courses of action to be taken if
an intended plan is unexpectedly disrupted or rendered inappropriate.
a) Divestiture
b) Deskilling
c) Synergy
d) Contingency
e) Entropy
14) Pursuing a strategy of _____ reduces an organization’s dependence on any one of its
business activities and thus reduces economic risk.
a) single-product
b) single-service
c) divestiture
d) related diversification
e) trade restraint
15) Samantha is responsible for building the day-to-day work schedules for her
subordinates. She assigns specific tasks to her subordinates and designs activities according
to the objectives that she receives from her seniors. Samantha works on _____ plans.
a) operational
b) organizational
c) strategic
d) divestiture
e) tactical
16) Supertech Inc. is a large firm that manufactures gadgets and mobile phones. The
company sells a line of inexpensive mobile phones exclusively targeted at youth and
teenagers in Selenasia. Which of the following strategies is illustrated in the scenario?
a) Differentiation strategy
b) Focus strategy
c) Restraint of trade strategy
d) Anti-competitive strategy
e) Divesting strategy
17) The _____ is a portfolio management technique that considers industry attractiveness
and competitive position rather than focusing solely on market growth and market share.
a) Black-Litterman model
b) modern portfolio theory
c) growth-share matrix
d) BCG matrix
e) GE Business Screen
18) The narrowest of the standing plans, _____ describe exactly how specific activities are
to be carried out.
a) standard operating procedures
b) projects and programs
c) rules and regulations
d) contingency theories
e) crisis management procedures
19) An organization’s fundamental purpose is stated in the organization’s _____.
Mission
20) How an organization distributes its resources across the areas in which it competes is
called _____
Resource Deployment
Chap 4
A disadvantage of group decision making is that:
groupthink may occur.
generation of different opinions does not occur.
communication may be curbed.
knowledge available is always limited.
only a few alternatives are likely to be generated.
2) A marketing manager decides to launch a new product because it is the first product
that came to his mind, even if there are several better products to be explored. Which of
the following is illustrated in the scenario?
a) Rational decision making
b) Escalation of commitment
c) Optimization
d) Bounded rationality
e) Satisficing
3) A nonprogrammed decision:
a) is typically regarding daily organizational transactions.
b) requires more time and resources than programmed decisions.
c) typically applies to basic operating systems and procedures.
d) is relatively more frequent that programmed decisions.
e) is highly structured.
4) A plant manager had taken a few measures to try to reduce worker turnover. For four
months he monitored the implementation of the measures. He now finds that the turnover
rate is reduced by 10 percent. Which step of the rational decision-making model is
illustrated in the scenario?
Evaluating the results
Identifying alternatives
Recognizing the decision situation
Selecting the best alternative
Developing a set of alternatives
5) A(n) _____ decision is a decision that is relatively structured or recurs with some
frequency (or both).
custom-made
novel
unstructured
intuitive
programmed
6) After being laid off by their companies, many individuals recognized three options they
could choose from before they could secure new jobs: to spend less, to use savings, or to use
credit. In the context of the steps involved in the rational decision-making model, they were
_____.
monitoring implementation
selecting the best alternative
identifying alternatives
implementing alternatives
evaluating decision effectiveness

7) Bounded rationality is assumed in the _____ model of decision making.

Administrative
Rational
classical
groupthink
irrational
8) A(n) _____ is a form of group decision making in which a group arrives at a consensus of
expert opinion.
interacting group
Delphi group
inactive group
unconventional group
unstructured group
9) A(n) _____ is an informal alliance formed to achieve a common goal.
coalition
groupthink
nominal group
delphi group

10) One advantage of group decision making is:

groupthink.
saved time
more acceptance of the final decision.
lowered cost of decision making.
elimination of political forces.
11) The first step in rational decision making is _____.
identifying alternatives
implementing an alternative
selecting the best alternative
recognizing and defining the decision situation
evaluating alternatives
12) The nominal group decision-making technique:
involves maximum interaction among group members.
is used to generate creative and innovative ideas.
is a technique in which members are not brought together in a face-to-face setting.
always results in groupthink.
is a technique in which the manager lacks the authority to reject an alternative.
13) The process of choosing one alternative from among a set of alternatives is called _____.
rational ignorance
altruism
bounded rationality
decision making
groupthink
14) When decision making is under a condition of uncertainty:
the alternatives are not known.
no ambiguity is involved.
errors are least likely to occur.
the consequences of solutions are known.
the decision situation is simple.
15) When managers are aware of all the alternatives in a decision-making situation and the
conditions associated with each alternative, they are said to be making the decision under a
state of _____.
certainty
uncertainty
risk
certainly uncertain
16) A plant manager had taken a few measures to try to reduce worker turnover. For four
months he monitored the implementation of the measures. He now finds that the turnover
rate is reduced by 10 percent. Which step of the rational decision-making model is
illustrated in the scenario?
Evaluating the results
Identifying alternatives
Recognizing the decision situation
Selecting the best alternative
Developing a set of alternatives