Question 1

Assigning various functions that a firm might do for itself to outside organizations is known as competitive allocation.

Accepted Answer

A) True 
 B)False

Question 2

When management structures the organization,it makes decisions about which products and services it will offer and how it is going to finance the company.

Accepted Answer

A) True 
 B)False

Question 3

The team experts in a matrix organization remain part of the traditional line-and-staff structure.

Accepted Answer

A) True 
 B)False

Question 4

Mike prepared a paper for his class about organizational styles used in business.He found that one reason the traditional bureaucratic style is less popular than in the past is that:

Accepted Answer

A) business organizations are much larger than they once were. 
B) restructuring has not produced the increased efficiency that was expected. 
C) the chain of command clearly identifies areas of responsibility. 
D) today's workforce is better educated and prefers a greater amount of decision-making involvement in their jobs. 
A) business organizations are much larger than they once were. 
B) restructuring has not produced the increased efficiency that was expected. 
C) the chain of command clearly identifies areas of responsibility. 
D) today's workforce is better educated and prefers a greater amount of decision-making involvement in their jobs.

Question 5

Henri Fayol and Max Weber are best known for their contributions to:

Accepted Answer

A) production theory. 
B) marketing theory. 
C) organization theory. 
D) finance theory. 
A) production theory. 
B) marketing theory. 
C) organization theory. 
D) finance theory.

Question 6

Division of labor is difficult to achieve in small businesses.

Accepted Answer

A) True 
 B)False

Question 7

The ___________ is the nerve center of the informal organization.

Accepted Answer

A) organizational database 
B) intranet 
C) grapevine 
D) company newsletter 
A) organizational database 
B) intranet 
C) grapevine 
D) company newsletter

Question 8

A line organization in a large business often suffers from excessively slow lines of communication.

Accepted Answer

A) True 
 B)False

Question 9

Cross-functional teams that go beyond company boundaries share production information but seldom market information.

Accepted Answer

A) True 
 B)False

Question 10

The organizational structure of the U.S.Army's 1st Infantry Division provides for direct two-way lines of responsibility,authority,and communication running from the top to the bottom.Additionally,each person in the division reports to only one superior.The 1st Infantry Division is clearly an example of an):

Accepted Answer

A) matrix organization. 
B) functional organization. 
C) line organization. 
D) service organization. 
A) matrix organization. 
B) functional organization. 
C) line organization. 
D) service organization.

Question 11

Max Weber believed that promotion should be based solely on seniority.

Accepted Answer

A) True 
 B)False

Question 12

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

Accepted Answer

A) True 
 B)False

Question 13

In an inverted organization,the purpose of management is to assist and support the decisions of employees who work directly with customers.

Accepted Answer

A) True 
 B)False

Question 14

The grapevine refers to the formal channel used for confidential communications between members of top management.

Accepted Answer

A) True 
 B)False

Question 15

Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

Accepted Answer

A) True 
 B)False

Question 16

Describe two major issues that are important in organizational design.

Accepted Answer

There are four issues from which the stu

Question 17

An advantage of a tall organization is that it ensures fast and efficient communications throughout the organization.

Accepted Answer

A) True 
 B)False

Question 18

An organization's core competencies are those functions that the firm performs as well as or better than anyone else in the world.

Accepted Answer

A) True 
 B)False

Question 19

The __________ is the system of relationships that develop spontaneously as employees meet and form power centers.

Accepted Answer

A) informal organization 
B) bureaucratic structure 
C) secondary organization 
D) formal organization 
A) informal organization 
B) bureaucratic structure 
C) secondary organization 
D) formal organization

Question 20

In the Making Ethical Decisions box,titled,"Safety versus Profit",which of the following statements best forms the theme of this passage?

Accepted Answer

A) In the beginning,company procedures that require value judgments are often too costly.As the business grows,the owner can add ethical procedures to each job. 
B) The principles of organization state that the only company objective is to gain profits for the owners)or stockholders.If your competitors are cutting corners with safety regulations,you should consider the same. 
C) The only way to be profitable is to avoid risk.If new safety equipment becomes available that is applicable to your business,even if it slows productivity,you should adopt it. 
D) The corporate culture you create as you begin your service will last a long time.Your workers will adopt your values. 
A) In the beginning,company procedures that require value judgments are often too costly.As the business grows,the owner can add ethical procedures to each job. 
B) The principles of organization state that the only company objective is to gain profits for the owners)or stockholders.If your competitors are cutting corners with safety regulations,you should consider the same. 
C) The only way to be profitable is to avoid risk.If new safety equipment becomes available that is applicable to your business,even if it slows productivity,you should adopt it. 
D) The corporate culture you create as you begin your service will last a long time.Your workers will adopt your values.

Exam 8: Structuring Organizations for Todays Challenges

Assigning various functions that a firm might do for itself to outside organizations is known as competitive allocation.

When management structures the organization,it makes decisions about which products and services it will offer and how it is going to finance the company.

The team experts in a matrix organization remain part of the traditional line-and-staff structure.

Mike prepared a paper for his class about organizational styles used in business.He found that one reason the traditional bureaucratic style is less popular than in the past is that:

Henri Fayol and Max Weber are best known for their contributions to:

Division of labor is difficult to achieve in small businesses.

The ___________ is the nerve center of the informal organization.

A line organization in a large business often suffers from excessively slow lines of communication.

Cross-functional teams that go beyond company boundaries share production information but seldom market information.

Max Weber believed that promotion should be based solely on seniority.

A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

In an inverted organization,the purpose of management is to assist and support the decisions of employees who work directly with customers.

The grapevine refers to the formal channel used for confidential communications between members of top management.

Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

Describe two major issues that are important in organizational design.

An advantage of a tall organization is that it ensures fast and efficient communications throughout the organization.

An organization's core competencies are those functions that the firm performs as well as or better than anyone else in the world.

The __________ is the system of relationships that develop spontaneously as employees meet and form power centers.

In the Making Ethical Decisions box,titled,"Safety versus Profit",which of the following statements best forms the theme of this passage?

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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