Foundations of Business 4th Edition Pride Test Bank 1

Foundations of Business 4th Edition Pride
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1. What is management and what resources does it involve?
ANSWER: Management is the process of coordinating people and other resources to achieve the
goals of an organization. Four kinds of resources are most often part of the
management function: material, human, financial, and informational.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 160
LEARNING OBJECTIVES: FOBU.PRIDE.15.6-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: What is Management?
KEYWORDS: Bloom's: Knowledge
2. How does the organization's mission differ from its strategic planning?
ANSWER: An organization’s mission is a statement of the basic purpose that makes the
organization different from other organizations. An organization’s mission differs from
strategic planning in that the mission is the basic purpose of the organization while
strategic planning involves establishing the goals and objectives of the organization.
Strategic planning also involves allocating resources to achieve those goals.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 162
NATIONAL STANDARDS: United States - AACSB: Reflective Thinking
TOPICS: Basic Management Functions
KEYWORDS: Bloom's: Analysis
3. Choose any company that you are familiar with and describe one specific example of each of the four areas of a
SWOT analysis.
ANSWER: Answers will vary. Examples of strengths may include cost or price advantages,
protected patents, or favorable location. Weaknesses may be high turnover, lack of
managerial expertise or depth, or negative public image. Opportunities may be new
open markets or increased demand for new products or service. Threats may be
vulnerability to business or seasonal cycles, costly regulatory requirements, or low
barriers to entry for potential competitors.
POINTS: 1
REFERENCES: p. 165
KEYWORDS: Bloom's: Comprehension
4. In what ways does leading differ from motivating?
ANSWER: Leading is the process of influencing people to work toward a common goal while
motivating is the process of providing reasons for people to work in the best interests
of an organization. Although both are important to the human resources of an
organization, leading is primarily concerned with influencing employees while
motivating is the process of providing reasons for people to work toward
organizational goals.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 165-166
5. How would you expect top managers to spend most of their work time?
ANSWER: Top managers spend a large portion of their time in developing the organization’s
mission. Tasks of the top manager are concentrated in the areas of guiding and
controlling the overall fortunes of the organization.
POINTS: 1
REFERENCES: p. 167
TOPICS: Kinds of Managers
6. Which level of management has the closest contact with workers paid by the hour? How do these managers spend
most of their time?
ANSWER: First-line managers coordinate and supervise the activities of operating employees
doing the hands-on work of the organization. First-line managers spend most of their
time working and motivating their employees, answering questions, and solving day-to-
day problems.
POINTS: 1
REFERENCES: p. 168
7. Why would technical skills be important to first-line managers?
ANSWER: First-line managers and, to a lesser extent, middle managers, need technical skills
relevant to the activities that they manage. Although managers typically do not
perform the technical tasks themselves, they must be able to train subordinates,
answer questions, and otherwise provide guidance and direction for the technical
tasks of the organization.
POINTS: 1
REFERENCES: p. 171
TOPICS: Key Skills of Successful Managers
8. Describe the style of the democratic leader.
ANSWER: Democratic leaders give final authority to a group rather than making a final decision
alone. A democratic leader collects opinions and bases decisions on the will of the
group.
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
9. Which of the three leadership styles described in the textbook is the most effective? Support your position.
ANSWER: Answers will vary. Most management experts agree that there is no “best”
managerial leadership style. Each style has advantages and disadvantages. It is
generally agreed that the “best” leadership seems to occur when the leader’s style
matches the situation. Each leadership style can be effective within the right situation.
The most effective style depends on interaction among employees, characteristics of
the work situation, and the manager’s personality.
POINTS: 1
REFERENCES: p. 173
TOPICS: Leadership
KEYWORDS: Bloom's: Evaluation
10. Define the aspects of a SWOT analysis and how it can benefit a company.
ANSWER: A SWOT analysis is the identification and evaluation of a firm’s strengths,

weaknesses, opportunities, and threats. The strengths and weaknesses are internal
factors of the company while the opportunities and threats are external. A SWOT
analysis can help managers identify and understand the positive and negative aspects
of their business as well as be cognizant of the opportunities that arise and can be
taken advantage of and the threats that a company need pay close attention to.
POINTS: 1
REFERENCES: pp. 163-164
11. Identify and describe each of the major steps in the managerial decision-making process.
ANSWER: Managerial decision making involves four steps: (1) identifying the problem--the
discrepancy between an actual condition and a desired condition; (2) generating
alternatives--after problem identification, alternatives need to be generated; (3)
selecting an alternative--managers must select the alternative that will be most
effective and practical; and (4) implementing and evaluating the solution--devoting
resources to the implementation of the selected alternative and, finally, evaluating the
decision’s effectiveness.
POINTS: 1
TOPICS: Managerial Decision Making
12. What are two components that are crucial to the effectiveness of a total quality management program?
ANSWER: Two critical factors that influence the effectiveness of a TQM program are top
management’s commitment to the program by treating quality improvement as a top
priority and the coordination of specific elements of the program so that they work in
harmony with each other.
POINTS: 1
REFERENCES: p. 176
TOPICS: Managing Total Quality
Centrum Springs, Inc.
Riley has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in
the company. His manager is retiring and hopes that Riley will take over for him. However, even though Riley is an
experienced employee, there are many things that he still needs to learn. Riley has trained many new employees,
but he has never held a management position. Riley needs to have a general understanding of what it takes to be a
manager.
There are many problems in Riley's department. There are no plans to fall back on in case the initial plan fails.
Riley also will need to learn how to direct people in such a way that makes them want to do more than they
absolutely have to. Riley feels that this is a great opportunity, and he is anxious to learn everything to be a great
manager. He knows that if he performs well in this position, he will have the opportunity to move up the corporate
ladder.
13. Refer to Centrum Springs, Inc. Riley's usual duties represent which of these areas?
a. Financial management
b. Operations management
c. Marketing management
d. Human resources management
e. Administrative management
ANSWER: d
POINTS: 1
DIFFICULTY: Mod.
REFERENCES: p. 165
TOPICS: Scenario Questions
14. Refer to Centrum Springs, Inc. The different resources available to all managers include all of the following except
a. material.
b. competitors.
c. financial.
d. human.
e. information.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 160
15. Refer to Centrum Springs, Inc. When Riley learns all that it takes to be a manager, he will be involved in
a. marketing, planning, hiring, and training.
b. controlling, organizing, planning, and leading.
c. leading, motivating, hiring, and firing.
d. planning, controlling, leading, and motivating.
e. leading, motivating, training, and organizing.
ANSWER: b
POINTS: 1
REFERENCES: p. 161
KEYWORDS: Bloom's: Application
16. Refer to Centrum Springs, Inc. In the department where Riley works, what types of plans are lacking?
a. Operational
b. Tactical
c. Strategic
d. Technical
e. Contingency
ANSWER: e
POINTS: 1
REFERENCES: p. 164
17. Refer to Centrum Springs, Inc. If Riley were to take this first step up the corporate ladder, he would be classified
as a
a. top manager.
b. strategic manager.
c. tactical manager.
d. first-line manager.
e. general manager.
ANSWER: d
POINTS: 1
REFERENCES: p. 168
Dazzle Magazine
Rosalea recently switched careers. Previously, she was a college professor, but she felt she needed more real-
world experience to help her business students more fully. She became a manager at Dazzle Magazine, where she
was in charge of the layout. Always open to new ways of doing things, Rosalea let her staff implement their ideas
at times. Rosalea learned firsthand the different roles she had to play as a manager.
It always got stressful when the publication deadline neared. At one point, there was a major mix-up in the layouts
for the front cover. Rosalea was not sure of the correct layout because she had allowed one of her employees,
Joseph, to modify and run with his idea on this matter. However, she could not ask for Joseph's help with the
covers because he happened to be out of town at the time. Rosalea quickly looked over the layouts but felt that
they still needed some work.
She decided to ask the design manager for her help. The design manager did not feel comfortable making a decision
on the issue, so she did not give Rosalea an answer. Rosalea then went to an employee within her department for
advice. That employee suggested some ideas, but Rosalea was still not satisfied. Finally, Rosalea called one of her
top graduate students with whom she had kept in contact and asked her if she could offer some ideas. The graduate
student quickly came to the magazine's office and helped Rosalea decide on the alternative that should be
implemented. Rosalea greatly appreciated the assistance and the suggestion. The final cover design went to press,
and that issue of the magazine was successful. This helped Rosalea realize that considering the big picture was
good, but equally important were the little details.
18. Refer to Dazzle Magazine. What type of manager was Rosalea at Dazzle Magazine?
a. Laissez-faire
b. Formal
c. Authoritarian
d. Official
e. Democratic
ANSWER: e
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
19. Refer to Dazzle Magazine. As a manager, Rosalea would have played all of the following roles except which
one?
a. Conceptual
b. Interpersonal
c. Informational
d. Decisional
e. Negotiator
ANSWER: a
POINTS: 1
REFERENCES: p. 170
20. Refer to Dazzle Magazine. The graduate student's assistance represents which step of the decision-making
process?
a. Evaluate solution
b. Generate many alternatives
c. Identify problem and opportunity
d. Select alternative
e. Implement solution
ANSWER: d
POINTS: 1
REFERENCES: p. 174
21. Refer to Dazzle Magazine. Now that Rosalea has real-world experience, she understands more than ever that
certain skills are needed for any manager's success. These skills include all of the following except
a. oral communication skills.
b. written communication skills.
c. analytic skills.
d. corporate behavior skills.
e. conceptual skills.
ANSWER: d
POINTS: 1
22. Management can achieve its goals by coordinating what four types of resources?
a. Financial, material, organizational, and operational
b. Informational, human, controllable, and tangible
c. Tangible, intangible, human, and financial
d. Human, material, financial, and intangible
e. Material, informational, human, and financial
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 160
23. Coordinating people and the other resources of an organization to achieve the goals of the organization is the
process of
a. management.
b. planning.
c. organizing.
d. directing.
e. leading.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 160
24. When Herbert took a new position at Galbrook Manufacturing Company, the firm was near insolvency. One of
Herbert's first acts was to establish specific goals for sales growth and a strategy for achieving them. He also
changed the organizational structure and developed an elaborate control system for keeping the company on track.
Herbert is functioning in a(n) position at Galbrook Manufacturing.
a. clerical
b. sales
c. technical
d. managerial
e. operative
ANSWER: d
POINTS: 1
REFERENCES: p. 162
25. An organization's most important resource is its resources.
a. material
b. human
c. financial
d. information
e. technical
ANSWER: b
POINTS: 1
REFERENCES: p. 161
26. Airplanes, crates, and trucks represent resources for Federal Express.
a. revenue-producing
b. material
c. human
d. financial
e. informational
ANSWER: b
POINTS: 1
27. Lawyers, accountants, and engineers are resources of Microsoft.
a. informational
b. non-revenue-producing
c. material
d. human
e. financial
ANSWER: d
POINTS: 1
REFERENCES: p. 161
28. Jessica is hired to keep the books and pay the bills for a small company. She provides a(n) resource for the
firm.
a. financial
b. informational
c. human
d. capital
e. material
ANSWER: c
POINTS: 1
REFERENCES: p. 161
29. resources are used to meet obligations to investors and creditors.
a. Tangible
b. Intangible
c. Material
d. Financial
e. Human
ANSWER: d
POINTS: 1
REFERENCES: p. 161
30. Revenues, proceeds from stock sales, and loans from banks are resources for Sears.
a. financial
b. material
c. informational
d. monetary
e. human
ANSWER: a
POINTS: 1
REFERENCES: p. 161
31. As an upper-level manager for IBM, Rodney is one of many people responsible for allocating organizational
resources in order to achieve the key goals of the company. Specifically, Rodney is in charge of collecting and
analyzing data on consumer preferences in personal computer design and technology and is thus responsible for
what general type of resources?
a. Material
b. Human
c. Informational
d. Financial
e. System
ANSWER: c
POINTS: 1
REFERENCES: p. 161
32. Planning, organizing, leading, motivating, and controlling make up the

a. four organizational goals every firm wants to achieve.
b. step-by-step management procedure.
c. four basic functions in the management process.
d. process of coordinating people and other resources to achieve the goals of the organization.
e. steps taken to achieve an organization's operational plans.
ANSWER: c
POINTS: 1
REFERENCES: p. 162
33. is called the "first" management function because all other management functions depend on it.
a. Leading
b. Organizing
c. Controlling
d. Planning
e. Motivating
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
34. Specific statements detailing what the organization intends to accomplish over a short period of time are called
a. planning statements.
b. strategies.
c. control statements.
d. objectives.
e. goals.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
35. IBM's principal reason for existing is to earn a profit for its shareholders. The means by which IBM does this is
through the manufacture of computers. These two statements describe, respectively, IBM's
a. strategy.
b. mission.
c. policy.
d. tactical plan.
e. control process.
ANSWER: b
POINTS: 1
REFERENCES: p. 162
36. Which of the following items is not a part of planning?

a. Strategic plan
b. Tactical plan
c. Objective plan
d. Contingency plan
e. Operational plan
ANSWER: c
POINTS: 1
37. If Martin Jones, VP Finance, meets with Susan Sheridan, CEO, to discuss how much of the budget can be allotted
to certain departments for next year's project plans, the two are engaging in
a. stating objectives.
b. contingency planning.
c. strategic planning.
d. tactical planning.
e. financial planning.
ANSWER: c
POINTS: 1
REFERENCES: p. 164
38. A timeline for a strategic plan can be as long as 10 years. However, the timeline for a strategic plan for a company
is generally
a. a maximum of one year.
b. a minimum of one year.
c. one to two years.
d. five years.
e. seven years.
ANSWER: c
POINTS: 1
REFERENCES: p. 162
39. If on January 1, 2011, Microsoft stated that by 2020 it wants to have a 85 percent share of the U.S. software
market, it is stating a(n)
a. goal.
b. objective.
c. plan.
d. strategy.
e. task.
ANSWER: a
POINTS: 1
REFERENCES: p. 162
40. A certain chicken company decides that it will become the market leader in the poultry business in five years with a
40 percent share of the market. This statement would be classified as a(n)
a. objective.
b. mission.
c. strategy.
d. operational plan.
e. goal.
ANSWER: e
POINTS: 1
REFERENCES: p. 162
41. Karen Smith is a division manager at General Motors and, as such, must ensure that some sort of balance is
achieved between the sometimes conflicting goals of the various departments within her division. For example, the
marketing department's goal might be to increase sales by 15 percent, whereas the accounting department might
strive for certain cost efficiencies. In compensating for these disparate goals, Karen is engaging in
a. planning.
b. organizing.
c. controlling.
d. conflict minimization.
e. optimization.
ANSWER: e
POINTS: 1
REFERENCES: p. 168
42. Ted Thompson is responsible for two departments that continually set conflicting goals. Ted must get involved in
to achieve some sort of balance between those goals.
a. optimization
b. maximization
c. planning
d. controlling
e. organizing
ANSWER: a
POINTS: 1
REFERENCES: p. 163
43. A SWOT analysis is an identification and evaluation of a firm’s strengths, weaknesses, , and threats.
a. options
b. occasions
c. opinions
d. occurrences
e. opportunities
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 163
44. McDonalds prides itself on its efficiency and value in delivering a product in a very short time. These
characteristics can best be defined as McDonalds’
a. objectives.
b. mission.
c. resources.
d. opportunities.
e. core competencies.
ANSWER: e
POINTS: 1
REFERENCES: p. 163
45. Which of the following is external to a firm and exists independently of a company?
a. Strengths
b. Weaknesses
c. Goals
d. Core competencies
e. Opportunities
ANSWER: e
POINTS: 1
REFERENCES: p. 163
46. Which of the following would least likely to be considered a threat to an organization?
a. A newly implemented law
b. Competitor’s actions
c. Newly developed technology
d. Economic changes
e. Human resources of an organization
ANSWER: e
POINTS: 1
REFERENCES: p. 163
47. At Silver Paper's company meeting in August, the owner states that the company will increase its sales of
Christmas cards by 50 percent over last year's sales. This statement is called a(n)
a. goal.
b. mission.
c. strategy.
d. objective.
e. tactical plan.
ANSWER: d
POINTS: 1
REFERENCES: p. 162
48. If Kmart states that it is going to spend $100 million in advertising in the upcoming year to help increase its market
share, it is explaining part of its plan.
a. tactical
b. operational
c. strategic
d. contingency
e. directional
ANSWER: b
POINTS: 1
REFERENCES: p. 164
49. An outline of the actions an organization intends to take to accomplish its goals and objectives is called its
a. policy.
b. plan.
c. organization function.
d. mission.
e. control function.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 164
50. The broadest set of plans developed as a guide for major policy setting and decision making is called a(n)
a. management process.
b. strategic plan.
c. contingency plan.
d. mission.
e. objective.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 164
51. A(n) is a smaller-scale plan developed to implement a strategy.
a. strategy
b. goal
c. mission
d. tactical plan
e. objective
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 164
52. Harrington Golf Co. states that it will double its employee staff and decrease its advertising budget by 25 percent in
order to keep up with its high customer demand. This is part of its plan.
a. strategic
b. tactical
c. contingency
d. operational
e. long-term
ANSWER: d
POINTS: 1
REFERENCES: p. 164
53. When the management of a large grocery store heard that Walmart might be coming to town, they developed
alternative courses of action they could take if their competitive landscape changed. What type of plan did they
develop?
a. Strategic
b. Objective
c. Contingency
d. Tactical
e. Operational
ANSWER: c
POINTS: 1
54. A(n) is a type of plan designed to implement tactical plans.

a. strategy
b. mission
c. operational plan
d. contingency plan
e. management objective
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 164
55. A plan that outlines alternative courses of action is called a(n) plan.
a. objective
b. tactical
c. strategic
d. contingency
e. operational
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 164
56. The process of influencing people to work toward a common goal is

a. motivating.
b. leading.
c. a sign of an autocratic leader.
d. a hands-off approach.
e. implementing.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 165
57. Grouping resources and activities to efficiently and effectively accomplish a result is called
a. planning.
b. organizing.
c. directing.
d. controlling.
e. goal setting.
ANSWER: b
POINTS: 1
REFERENCES: p. 165
58. The process of evaluating and regulating ongoing activities to ensure that goals are achieved is known as
a. organizing.
b. leading.
c. controlling.
d. motivating.
e. planning.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 166
59. The investment decisions of many traders on Wall Street in the early 2000s led to the downfall of several
investment companies, demonstrating that employee goals were not aligned with company goals. This indicates a
failure of which basic managerial function?
a. Planning
b. Organizing
c. Leading
d. Motivating
e. Controlling
ANSWER: e
POINTS: 1
60. A company like Motorola might establish a goal of reducing its inventory by 50 percent over the next year. To
ensure that it reaches this goal, the company could monitor its progress on a quarterly or monthly basis. If the
managers at Motorola discover that there is a danger of not achieving this goal, they can take corrective action to
adjust for the deficiency. This is a description of the managers' function.
a. controlling
b. directing
c. leading
d. organizing
e. planning
ANSWER: a
POINTS: 1
61. The two managerial functions that compose the process of directing an organization are
a. planning and organizing.
b. goal setting and planning.
c. leading and organizing.
d. motivating and leading.
e. planning and leading.
ANSWER: d
POINTS: 1
REFERENCES: p. 166
62. When JCPenney first decided to sell its merchandise online, the manager in charge of the process had to hire a
technical staff to create the website, gather other resources necessary for the project, and ensure the site would be
introduced in an effective and efficient manner. This is a description of the manager's function.
a. planning
b. organizing
c. goal-setting
d. motivating
e. controlling
ANSWER: b
POINTS: 1
REFERENCES: p. 165
63. A large computer company provides well-being seminars free to its employees and provides them with a fitness
facility to encourage physical and mental health. The company hopes this will create a satisfying work environment.
Which managerial function does this involve?
a. Motivating
b. Organizing
c. Controlling
d. Planning
e. Compensating
ANSWER: a
POINTS: 1
64. It is important for a manager to understand the of subordinates in order to encourage effective performance.
a. control needs
b. leadership skills
c. standards
d. financial needs
e. motivations
ANSWER: e
POINTS: 1
65. As a manager at Johnson Electric, an armature motor manufacturer, Charles is responsible for quality. As he
carries out his controlling function, Charles sets the standard for the number of defective parts per million, and then
he gathers the data measuring the actual performance. What third step of the control function should Charles take
next?
a. Change the standards to match the actual performance.
b. Determine the cause of the discrepancy.
c. Begin planning again.
d. Take corrective action.
e. Motivate his employees.
ANSWER: d
POINTS: 1
66. American Airlines has established a goal of increasing its profits by 12 percent next year. To ensure that the goal is
reached, management monitors profits on a monthly basis. After three months, if profits have not increased by 3
percent, management will take corrective action to get the company on track. By doing so, management is carrying
out its function(s).
a. planning
b. leading and motivating
c. goal-setting and planning
d. organizing
e. controlling
ANSWER: e
POINTS: 1
67. Common job titles associated with management include president, vice president, and chief executive officer.
a. first-line
b. middle
c. top
d. executive
e. functional
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 167
68. The CEO's role at General Electric requires him to spend a great deal of time on planning. This indicates that he is
a(n) manager.
a. administrative
b. operations
c. top
d. middle
e. first-line
ANSWER: c
POINTS: 1
REFERENCES: p. 167
69. Chris Gomez is a plant manager for National Manufacturing Company. With regard to levels of management, Chris
is a(n) manager.
a. first-line
b. middle
c. top
d. executive
e. functional
ANSWER: b
POINTS: 1
REFERENCES: p. 168
70. A manager who coordinates the activities of operating employees is a(n) manager.
a. first-line
b. middle
c. top
d. executive
e. functional
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 168
71. Grant is a division manager for a large chemical company. He frequently works to implement the strategies set by
the CEO and supervises the activities of the supervisors under him. Grant is a manager.
a. top
b. middle
c. front-line
d. first-line
e. financial
ANSWER: b
POINTS: 1
REFERENCES: p. 168
72. The manager of a McDonald's restaurant is an example of a(n) manager.

a. top
b. operations
c. middle
d. first-line
e. administrative
ANSWER: d
POINTS: 1
REFERENCES: p. 168
73. Kelly is in charge of both accounting and investments and all of the employees involved with these functions at her
firm. Kelly is a(n) manager.
a. executive
b. financial
c. first-line
d. middle
e. operations
ANSWER: b
POINTS: 1
REFERENCES: p. 168
74. Accounting and investments are areas within which management field of specialization?
a. Administration
b. Operations
c. Marketing
d. Finance
e. Human resources
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 168
75. A manager responsible for facilitating the exchange of products between an organization and its customers through
distribution and advertising is known as a(n) manager.
a. administrative
b. human resources
c. financial
d. operations
e. marketing
ANSWER: e
POINTS: 1
REFERENCES: p. 169
76. Managers who create and manage systems that convert resources into goods and services are known as
managers.
a. administrative
b. financial
c. marketing
d. operations
e. human resources
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 169
77. Those who are responsible for facilitating the exchange of products between the organization and its customers or
clients are managers.
a. financial
b. operations
c. administrative
d. marketing
e. accounting
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 169
78. Heather is in charge of ensuring that the processes at her bank run smoothly so that the business will be able to
provide its services efficiently and effectively. Heather is a(n) manager.
a. marketing
b. administrative
c. human resources
d. operations
e. financial
ANSWER: d
POINTS: 1
REFERENCES: p. 169
79. Scott is in charge of managing, selling, and distributing the company's products. Scott is a(n) manager.
a. marketing
b. operations
c. human resources
d. administrative
e. financial
ANSWER: a
POINTS: 1
REFERENCES: p. 169
80. Managers charged with managing the organization's formal human resources program are managers.
a. human resources
b. general
c. administrative
d. operations
e. financial
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 169
81. Managers who must be familiar with the Equal Employment Opportunity Commission regulations are
managers.
a. financial
b. operations
c. marketing
d. administrative
e. human resources
ANSWER: e
POINTS: 1
REFERENCES: p. 169
82. Shane does not specialize in a particular function; instead, he provides overall guidance and leadership for the
company. Shane is an administrative or manager.
a. marketing
b. first-line
c. general
d. operations
e. human resources
ANSWER: c
POINTS: 1
REFERENCES: p. 169
83. The manager who provides overall guidance and leadership for the entire corporation is known as the
manager.
a. human resources
b. financial
c. operations
d. marketing
e. administrative
ANSWER: e
POINTS: 1
REFERENCES: p. 169
84. The chief executive officer of Chrysler provides his organization with leadership and overall guidance, and he is
generally responsible for interpreting the organization's mission. He would be most properly classified as a(n)
manager.
a. administrative
b. human resources
c. operations
d. marketing
e. financial
ANSWER: a
POINTS: 1
REFERENCES: p. 169
85. A manager who has the ability to see the big picture of an organization and to understand how the various parts of
the organization can fit together has skills.
a. leadership
b. technical
c. interpersonal
d. conceptual
e. decisional
ANSWER: d
POINTS: 1
REFERENCES: p. 170
86. Specific skills needed to accomplish specialized activities such as drafting and welding are known as skills.
a. standard operating
b. tactical
c. interpersonal
d. conceptual
e. technical
ANSWER: e
POINTS: 1
REFERENCES: p. 171
87. Vince Martin has been described as a visionary. He has the ability to think in abstract terms and see how all the
pieces of his company fit together. Vince has skills.
a. technical
b. interpersonal
c. charisma
d. conceptual
e. people
ANSWER: d
POINTS: 1
REFERENCES: p. 170
88. Michael Dell is the CEO of Dell, a large computer manufacturer. He started the company himself, building and
selling computers during college. Although he does not frequently use these skills now, it is likely that he has good
skills.
a. conceptual
b. interpersonal
c. employee
d. administrative
e. technical
ANSWER: e
POINTS: 1
REFERENCES: p. 171
89. A manager with skills has the ability to deal effectively with people inside and outside the organization.
a. functional
b. diagnostic
c. conceptual
d. interpersonal
e. technical
ANSWER: d
POINTS: 1
REFERENCES: p. 171
90. A manager who has the abilities to relate to people, understand their needs, and show compassion has skills.
a. personal
b. people
c. compassionate
d. communication
e. interpersonal
ANSWER: e
POINTS: 1
REFERENCES: p. 171
91. A former CEO at International Telephone and Telegraph had a reputation for publicly humiliating subordinates who
annoyed or disappointed him. This manager obviously needed to improve his skills.
a. conceptual
b. diagnostic
c. functional
d. interpersonal
e. negotiating
ANSWER: d
POINTS: 1
REFERENCES: p. 171
92. Mondell’s lack of effective writing skills and his challenges in speaking to groups of people is causing stress in his
job. He’s becoming very aware that he needs to improve his skills.
a. managerial
b. critical thinking
c. conceptual
d. interpersonal
e. communication
ANSWER: e
POINTS: 1
REFERENCES: p. 171
93. Herb Kelleher, long-time chief executive officer of Southwest Airlines, was known for inspiring and motivating his
employees. He related well to people within and outside the Southwest Airlines organization. Herb Kelleher had
good skills.
a. technical
b. conceptual
c. interpersonal
d. interactive
e. personnel
ANSWER: c
POINTS: 1
REFERENCES: p. 171
94. Which of the following is not considered a communication skill that may be essential in management success?.
a. Writing e-mails
b. Creating sales reports
c. Displaying genuine compassion
d. Making sales presentations
e. Conducting interviews
ANSWER: c
POINTS: 1
REFERENCES: p. 171
95. Leadership can best be defined as the ability to
a. identify problems.
b. relate to others.
c. influence others.
d. generate reasonable solutions to problems.
e. deal effectively with others.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 172
TOPICS: Leadership
96. What is the most significant difference between leaders and assembly line workers in regard to affecting the
behavior of others?
a. Communication skills
b. Interpersonal skills
c. Power
d. Decision-making
e. Technical skills
ANSWER: c
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
97. Although Frank is not in top management, he is charismatic and well liked by others in his organization. Other
employees often look to Frank to see how he reacts to new policies implemented by top management, and they
follow his lead. Frank has leadership in his organization.
a. personal
b. formal
c. informational
d. unofficial
e. informal
ANSWER: e
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
98. Jeanine has formal power in the Coffee Lovers, Ltd. organization while Sam has informal power. One of the
primary differences between Jeanine and Sam is that Jeanine has within the organizations while Sam does
not.
a. security
b. interpersonal power
c. influence
d. leadership
e. authority
ANSWER: e
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
99. What is a disadvantage associated with the participative style of leadership?
a. It does not give employees the opportunity to express their views.
b. The decision-making process is time-consuming.
c. Employees are usually unmotivated to carry out decisions.
d. The communication is always from top to bottom.
e. There is very limited structure involved.
ANSWER: b
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
100. The leadership style advocating that a leader involve subordinates in most decisions as well as the assignment of
tasks is called
a. laissez-faire.
b. hands-off.
c. existential.
d. authoritarian.
e. participative.
ANSWER: e
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
101. O. Sawyer discovered problems in coordinating the work flow going from her department to marketing. To solve
the problem, she identified some situations that needed correction and asked employees to submit their suggestions
for improvement. After their suggestions were summarized, the employees selected one for implementation. Next,
a supervisor was given responsibility and authority to oversee implementation and to keep Sawyer informed.
Sawyer's actions exhibit the leadership style.
a. laissez-faire
b. hands-off
c. existential
d. authoritarian
e. democratic
ANSWER: e
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
102. Robin Baker, a top manager at Westinghouse, has recently been put in charge of a new multi-million dollar project.
She selects several individuals to participate in this effort and assigns each certain tasks to perform. Furthermore,
she has set up a group hierarchy and indicated that all decisions must be routed through this chain of command.
Robin is exhibiting which leadership style?
a. Democratic
b. Autocratic
c. Laissez-faire
d. Participative
e. Despotic
ANSWER: b
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
103. When all employees are exceedingly clear about what is expected from them, guidelines for task completion are
clear and understood, and rules and regulations in fulfilling their duties are clearly defined, it is likely the
leadership style is in place.
a. entrepreneurial
b. democratic
c. participative
d. autocratic
e. consultative
ANSWER: d
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
104. Gary Downs recently has noticed that the plant he is managing is delivering only 30 percent of its products on time.
To determine what is causing the problem, he assembles the various department heads and the plant supervisor to
get their input on the matter. Although the ultimate responsibility is his, he has no difficulty in delegating decision-
making authority to any member of this group. This style of leadership suggests that Gary is a(n) leader.
a. participative
b. authoritative
c. autocratic
d. passive
e. dependent
ANSWER: a
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
105. The leadership style advocating that a leader makes all decisions and tells subordinates what to do and how to do it
is called
a. consensus.
b. participative.
c. democratic.
d. existential.
e. autocratic.
ANSWER: e
POINTS: 1
REFERENCES: p. 172
TOPICS: Leadership
106. The leadership style tends to take initiative and be visionary.

a. autocratic
b. participatory
c. consensus
d. consultative
e. entrepreneurial
ANSWER: e
POINTS: 1
TOPICS: Leadership
107. is the process of developing a set of possible alternative solutions and choosing one alternative from among
that set.
a. Decision making
b. Leadership
c. Implementing
d. Leading and motivating
e. Evaluating and regulating
ANSWER: a
POINTS: 1
REFERENCES: p. 173
108. The first step in the managerial decision-making process is to

a. evaluate the problem.
b. create a problem opportunity.
c. identify an opportunity.
d. identify a solution to the problem.
e. generate alternative solutions to the problem.
ANSWER: c
POINTS: 1
REFERENCES: p. 173
109. When a manager identifies an opportunity, he or she generates alternatives to pursue the opportunity, selects one of
them, implements it, and then evaluates the results. This manager is acting out the process.
a. alternative-generating
b. control
c. managing
d. decision-making
e. formal leadership
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 173
110. Which of the following is not a step in the decision-making process?

a. Solving the identified problem
b. Implementing and evaluating the solution
c. Identifying the problem or opportunity
d. Selecting an alternative
e. Generating alternatives
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 173
111. As Kyle conducts his annual evaluations of his employees, he notices that Connie and Debbie have both been less
productive since they were relocated in the same department. Kyle is in what stage of the managerial decision-
making process?
a. Generating alternatives
b. Conducting evaluations
c. Selecting an alternative
d. Identifying the problem or opportunity
e. Implementing and evaluating the solution
ANSWER: d
POINTS: 1
REFERENCES: p. 173
112. When looking at the company's sales figures, Martha sees that her salespeople have not achieved high sales in
Japan. She is at what stage in the managerial decision-making process?
a. Evaluating the problem
b. Generating a problem
c. Selecting a solution
d. Identifying the problem
e. Implementing the problem
ANSWER: d
POINTS: 1
REFERENCES: p. 173
113. A positive problem may be viewed as a(n)
a. discrepancy.
b. alternative.
c. opportunity.
d. symptom.
e. unimportant matter.
ANSWER: c
POINTS: 1
REFERENCES: p. 174
114. Once a manager has identified a problem, he or she can generate alternatives to that problem. After this is done,
the manager
a. implements the solution.
b. evaluates the decision he or she made.
c. weighs the pros and cons of each alternative.
d. determines the best alternative.
e. implements each solution and determines which had the best results.
ANSWER: d
POINTS: 1
REFERENCES: p. 174
115. Frank Roberts recently has been named to head a major manufacturing plant at Dow Chemical. The plant has had
significant increases in inventory and declines in net income over the past two years. Frank's task is to eliminate the
excess inventory and return the plant to its previous level of profitability. To begin solving this problem, Frank invites
suggestions from line workers, gathers managers from various levels of the plant to brainstorm, and talks with
experts in the field of operations management. This step in the managerial decision-making process is known as
a. identifying the problem.
b. generating alternatives.
c. selecting an alternative.
d. implementing a solution.
e. performance measurement.
ANSWER: b
POINTS: 1
REFERENCES: p. 174
116. When Robert Keening became the president of Snow Bird Airlines, he began meeting with groups of employees to
get their opinions on how to turn around the airline's declining sales. This part of the decision-making process is an
example of
a. Keening's leadership style.
b. trying to reach consensus.
c. identifying the problem.
d. generating alternatives.
e. selecting an alternative.
ANSWER: d
POINTS: 1
REFERENCES: p. 174
117. Alex notices that sales of the company's best products are declining. He gathers together his sales staff to generate
solutions to the decline in sales. He encourages all the participants to generate as many new ideas as possible and
forbids anyone from criticizing or ridiculing the ideas of others. Alex is using
a. Blast! Then Refine.
b. trial and error.
c. generation.
d. group think.
e. brainstorming.
ANSWER: e
POINTS: 1
REFERENCES: p. 174
118. Managers should avoid satisficing in the stage of the managerial decision-making process.
a. selecting an alternative
b. identifying the problem or opportunity
c. implementing and evaluating the solution
d. satisfying the customer
e. generating alternatives
ANSWER: a
POINTS: 1
REFERENCES: p. 174
119. The techniques of brainstorming and "Blast! Then Refine" would be helpful to use during which step in the
managerial decision-making process?
a. Generating alternatives
b. Implementing the solution
c. Evaluating the outcome
d. Selecting an alternative
e. Identifying the problem or opportunity
ANSWER: a
POINTS: 1
REFERENCES: p. 174
120. Implementing a decision requires time, planning, and

a. optimization.
b. a combination of alternatives.
c. maximization.
d. brainstorming.
e. preparation of personnel.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 175
121. Jack is reviewing the recently implemented sales strategy the company developed and considering whether or not
the company made the right decision. Jack is in the stage of the managerial decision-making process.
a. adopting a different alternative
b. identifying the problem or opportunity
c. selecting an alternative
d. implementing and evaluating the solution
e. generating alternatives
ANSWER: d
POINTS: 1
REFERENCES: p. 175
122. In the last stage of the decision-making process, managers may decide to
a. strengthen supplier relationships.
b. start the problem identification process all over again.
c. ensure customer satisfaction.
d. continue quality improvement.
e. hand the monitoring task to another manager.
ANSWER: b
POINTS: 1
REFERENCES: p. 175
123. As Shelly Jones, manager of Sears, hands out customer questionnaires to get a better idea of customers' needs as
well as their concerns, she is exercising which facet of total quality management (TQM)?
a. Employee participation in improving the quality of work
b. Customer satisfaction
c. Strengthening relationships with suppliers who are also customers
d. Continuous quality improvement
e. Strong leadership skills
ANSWER: b
POINTS: 1
REFERENCES: p. 175
124. By holding focus groups with employees, Robert Keening of Snow Bird Airlines is employing which aspect of total
quality management?
a. Democratic leadership
b. Reaching consensus
c. Customer satisfaction
d. Obtaining feedback
e. Employee participation
ANSWER: e
POINTS: 1
REFERENCES: p. 175
125. When a business firm implements several programs to encourage prompt and courteous customer service,
employee participation, and better coordination with suppliers, it is making an effort to use
a. quality concern focus.
b. total quality management.
c. quality improved planning.
d. quality development.
e. quality commitment.
ANSWER: b
POINTS: 1
REFERENCES: p. 175
126. Zack asks his customers to complete a survey about the service they receive at his company so that he and his
staff can make adjustments and improvements. Zack is focusing on the aspect of total quality management.
a. continuous quality improvement
b. strengthening supplier partnerships
c. customer satisfaction
d. employee participation
e. sales improvement
ANSWER: c
POINTS: 1
REFERENCES: p. 175
127. All of the following are reasons for a greater focus on quality by U.S. firms except
a. competition from foreign firms.
b. customers that are more demanding.
c. unpredictability on Wall Street.
d. poorer financial performance.
e. reduced market share.
ANSWER: c
POINTS: 1
REFERENCES: p. 175
128. The coordination of efforts directed at improving customer satisfaction, increasing employee participation, improving
supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement is known as
a. a quality concern focus.
c. total quality development.
d. total quality commitment.
e. quality improvement planning.
ANSWER: b
POINTS: 1
REFERENCES: p. 175
129. Clarke Tools, concerned about its loss of market share in previous years, has recently implemented several
programs to encourage prompt and courteous customer service, employee self-management, and better
coordination with suppliers. Clarke Tools is making an effort to achieve
a. a quality concern focus.
c. total quality commitment.
d. total quality development.
e. quality improvement planning.
ANSWER: b
POINTS: 1
REFERENCES: p. 175
130. For a total quality management program to be effective, it must be treated as a top priority by
a. the human resources director.
b. line management.
c. first-line management.
d. middle management.
e. top management.
ANSWER: e
POINTS: 1
REFERENCES: p. 176
131. Which of the following is a TQM tool?
a. Organizing
b. Leading
c. Benchmarking
d. Planning
e. SWOT analysis
ANSWER: c
POINTS: 1
REFERENCES: p. 175
132. If Southwest Airlines closely evaluates the products and processes of United Airlines with the intent of improving
quality among their own products and practices, Southwest is using
a. SWOT analysis.
b. long-term strategy.
c. partnering strategy.
d. benchmarking.
e. goal establishment.
ANSWER: d
POINTS: 1
REFERENCES: p. 175
133. Which of the following is not considered a basic step of benchmarking?
a. Forming a benchmarking team
b. Collecting and analyzing data
c. Acting on results of data collection
d. Goal setting
e. Identifying objectives
ANSWER: d
POINTS: 1
134. Management is the process of coordinating people and other resources.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 160
135. Most organizations use four types of resources: material, human, financial, and informational.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 160
136. The four basic management functions are planning, organizing, leading and motivating, and controlling.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
137. The primary functions a manager performs include planning, solving problems, leading and motivating, and
controlling.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
138. As a manager carries out his or her functions, the first step is to control, the second is to organize, and the third is to
plan.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 162
139. Dell Computer attempts to earn a profit by manufacturing premium-quality computers. This action represents its
mission.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 162
140. Goals are set only for top-level management.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
141. Goals are established for only one year at a time.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
142. Achieving a balance between competing and conflicting goals is called optimization.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 163
143. Strengths and weaknesses are the external factors of a company SWOT analysis.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 163
144. In a SWOT analysis, opportunities are considered external to the organization.

a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 163
145. An aspect of the strategic planning process is to allocate resources to achieve an organization’s goals and
objectives.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 162
146. The process of establishing an organization's major goals and objectives and allocating the resources to achieve
them is called tactical planning.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 165
147. Core competencies of an organization are the aspects that a company performs well.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 163
148. A plan is an outline of the actions by which the organization intends to accomplish its goals and objectives.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 164
149. A broad set of plans that outlines alternative courses of action when problems develop is called a strategy.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 164
150. An organization's tactical plan is its broadest set of plans developed as a guide for major policy setting and decision
making.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 164
151. Organizing is the process of grouping resources and activities efficiently and effectively to accomplish an end
result.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 165
152. Controlling is the process of evaluating and regulating ongoing activities to ensure achievement of goals.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 167
153. The control function includes three steps: setting standards, measuring performance, and recycling the system.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 167
154. Common names for top-level managers are vice president, chief executive officer, and chief operating officer.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 167
155. Middle managers occupy the management level that falls between the operating employees and first-line managers.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 168
156. Common titles for middle managers are office managers and supervisors.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 168
157. Common titles for first-line managers include department managers and operations managers.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 168
158. Middle managers are generally responsible for developing an organization's mission.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 168
159. Middle managers implement the strategy developed by top management.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 168
160. Top managers probably make up the largest group of managers in most organizations.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 167
161. First-line managers spend most of their time working with and motivating their employees, answering questions, and
solving daily problems.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 168
162. Accounting and investments are specialized areas within financial management.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 168
163. Financial managers create and manage the systems that convert resources into goods and services.
a. True
b. False
ANSWER: False
POINTS: 1
164. Operations managers are concerned strictly with the production of goods, not services.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 169
165. Top managers rely a great deal on technical skills.

a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 171
166. Technical skills are more important to the first-line manager than to other managers.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 171
167. The ability to see the big picture is at the heart of a manager's interpersonal skills.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 170
168. Conceptual skills refer to the ability to deal effectively with other people, both inside and outside the organization.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 170
169. A manager with strong conceptual skills is able to think well in concrete terms.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 170
170. An interpersonal role is one in which the manager must either gather or provide information.
a. True
b. False
ANSWER: False
POINTS: 1
171. Making a successful sales presentation or holding an effective press conference takes quality communication skills.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 171
172. The ability to write and speak effectively within an organization is an example of interpersonal skills.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 171
173. Formal leaders have legitimate power that is based on their position within the organization.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 172
TOPICS: Leadership
174. Of the three styles of leadership, the most effective is the participative style.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 173
TOPICS: Leadership
175. In the entrepreneurial style of leadership in an organization, leaders take responsibility for the success or failure of
their firm.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: Leadership
176. Nearly all experts and academics in the field of leadership agree that a participative leadership style is the best
within an American organization.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 173
TOPICS: Leadership
177. Decision making involves identifying the problem or opportunity, generating alternatives, selecting an alternative,
and implementing and evaluating the solution.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 173
178. Managerial decision making involves a four-step process that begins with generating alternatives and ends with
selecting an alternative.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 173
179. The term “satisfice” describes solutions that managers choose that may only adequately solve a problem.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 174
180. Certain techniques can help generate creative alternatives, but those techniques do not include brainstorming.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 174
181. The cost of implementing a total quality management program normally results in lower returns on sales and
investments.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 176
182. Foreign competition, poor financial performance, and more demanding customers have encouraged businesses to
place more emphasis on quality.
a. True
b. False
ANSWER: True
POINTS: 1
REFERENCES: p. 175
183. The effectiveness of a total quality management program is directly related to top management's commitment to its
success.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 176
184. Over the last few years, most U.S. firms have regained the dominant competitive positions they had previously
held.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 175
185. Improved customer satisfaction can include developing good working relationships with suppliers, developing self-
managed work teams, and improving quality of employee work.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 175
186. The first step in benchmarking is to identify the objectives.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy

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1. What is management and what resources does it involve?

8. Describe the style of the democratic leader.

ANSWER: A SWOT analysis is the identification and evaluation of a firm’s strengths,

32. Planning, organizing, leading, motivating, and controlling make up the

36. Which of the following items is not a part of planning?

54. A(n) is a type of plan designed to implement tactical plans.

56. The process of influencing people to work toward a common goal is

72. The manager of a McDonald's restaurant is an example of a(n) manager.

106. The leadership style tends to take initiative and be visionary.

108. The first step in the managerial decision-making process is to

110. Which of the following is not a step in the decision-making process?

120. Implementing a decision requires time, planning, and

134. Management is the process of coordinating people and other resources.

140. Goals are set only for top-level management.

141. Goals are established for only one year at a time.

144. In a SWOT analysis, opportunities are considered external to the organization.

159. Middle managers implement the strategy developed by top management.

165. Top managers rely a great deal on technical skills.

186. The first step in benchmarking is to identify the objectives.

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