Question 1

The ________ control process is used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.

Accepted Answer

A)  feedback 
B)  concurrent 
C)  accounting 
D)  budget 
E)  feedforward 
A)  feedback 
B)  concurrent 
C)  accounting 
D)  budget 
E)  feedforward

Question 2

"Frank, if our top-level management wants us to produce a new line of lawn tractors over the next ten years, we will need to invest in another factory assembly line. And that's going to cost big bucks," said Butch Linfield, factory manager for GreenLawn Inc. "Please start greasing the skids internally. I don't want the home-office executives to be surprised when they see high-dollar fixed assets in my ________ budget."

Accepted Answer

A)  sales 
B)  production 
C)  capital 
D)  master 
E)  operational 
A)  sales 
B)  production 
C)  capital 
D)  master 
E)  operational

Question 3

External audits are useful for preliminary control because they

Accepted Answer

A)  can assess what a company has done for itself. 
B)  review a company's past, present, and future. 
C)  can evaluate how a company has served its customers of its goods or services. 
D)  can prevent problems from occurring. 
E)  are more satisfying as operators benefit by having a more enriched job. 
A)  can assess what a company has done for itself. 
B)  review a company's past, present, and future. 
C)  can evaluate how a company has served its customers of its goods or services. 
D)  can prevent problems from occurring. 
E)  are more satisfying as operators benefit by having a more enriched job.

Question 4

A(n) ________ is an evaluation conducted by one organization of another organization.

Accepted Answer

A)  external audit 
B)  market control 
C)  clan control 
D)  budget 
E)  activity-based costing 
A)  external audit 
B)  market control 
C)  clan control 
D)  budget 
E)  activity-based costing

Question 5

A(n) ________ is an evaluation of the effectiveness and efficiency of various systems within an organization.

Accepted Answer

A)  standard 
B)  management audit 
C)  innovation catalyst 
D)  budget 
E)  profit and loss statement 
A)  standard 
B)  management audit 
C)  innovation catalyst 
D)  budget 
E)  profit and loss statement

Question 6

A company is said to lack control when there is a(n) ________, that is the firm's expectations are not established in writing.

Accepted Answer

A)  inadequacy of ethics in the culture 
B)  "shoot the messenger" management 
C)  lax top management 
D)  absence of policies 
E)  lack of periodic reviews 
A)  inadequacy of ethics in the culture 
B)  "shoot the messenger" management 
C)  lax top management 
D)  absence of policies 
E)  lack of periodic reviews

Question 7

"This is the third time that our business unit has been sold in the past five years," said Bobbi. "Each time, our managers lose their jobs, and workers like us have to learn to work under new managers and new systems. Our business unit has been just a minor piece of several large diversified companies, and our performance has been compared to other business units' performance in these companies. As a result, we have been repeatedly bought and sold based on market controls, and employees often ________ as a result."

Accepted Answer

A)  suffer 
B)  benefit 
C)  surrender 
D)  grieve 
E)  thrive 
A)  suffer 
B)  benefit 
C)  surrender 
D)  grieve 
E)  thrive

Question 8

Clan control is necessary when members of an organization lack common values, goals, and trust.

Accepted Answer

A) True 
 B)False

Question 9

Select the definition of control.

Accepted Answer

A)  Control refers to the expected performance for a given goal. 
B)  Control is any process that directs the activities of individuals toward the achievement of organizational goals. 
C)  Control is people's perceived likelihood that their efforts will enable them to attain their performance goals. 
D)  Control is the process of giving people additional tasks to do at the same time to alleviate boredom. 
E)  Control is the process of applying a consequence that increases the likelihood of a person repeating the behavior that led to it. 
A)  Control refers to the expected performance for a given goal. 
B)  Control is any process that directs the activities of individuals toward the achievement of organizational goals. 
C)  Control is people's perceived likelihood that their efforts will enable them to attain their performance goals. 
D)  Control is the process of giving people additional tasks to do at the same time to alleviate boredom. 
E)  Control is the process of applying a consequence that increases the likelihood of a person repeating the behavior that led to it.

Question 10

"My business relationship with the Midwest sales rep has really deteriorated. We used to cooperate; now we ________," said the manager of the Southwest region. "And I blame our new control system. Every month, managers across the entire enterprise get profit and loss statements for all divisions and business units. We look at one another's performance and are less likely to help one another when we know that our business unit or division may suffer a loss in profitability as a result. After all, promotions, salary increases, and bonus pools are tied to our profitability."

Accepted Answer

A)  compete 
B)  promote change 
C)  resist change 
D)  feel threatened 
E)  ignore one another 
A)  compete 
B)  promote change 
C)  resist change 
D)  feel threatened 
E)  ignore one another

Question 11

"Well, no wonder our customers are leaving us!" said George Levy, CEO of Baldwin Sports. "For the past year, our control system has measured and reported the days between order receipt and order shipped, rather than the days between order receipt and date requested by our customers. What we are measuring may make us look and feel good, but we are measuring the wrong thing!" Baldwin Sports is committing the "deadly sin" of performance measurement known as

Accepted Answer

A)  vanity. 
B)  pettiness. 
C)  provincialism. 
D)  inanity. 
E)  narcissism. 
A)  vanity. 
B)  pettiness. 
C)  provincialism. 
D)  inanity. 
E)  narcissism.

Question 12

Market control

Accepted Answer

A)  does not assume that the interests of the organization and individuals naturally diverge. 
B)  is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them. 
C)  includes such items as budgets, statistical reports, and performance appraisals. 
D)  uses prices, competition, and exchange relationships to regulate activities. 
E)  is the use of rules, standards, regulations, hierarchy and legitimate authority to guide performance. 
A)  does not assume that the interests of the organization and individuals naturally diverge. 
B)  is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them. 
C)  includes such items as budgets, statistical reports, and performance appraisals. 
D)  uses prices, competition, and exchange relationships to regulate activities. 
E)  is the use of rules, standards, regulations, hierarchy and legitimate authority to guide performance.

Question 13

The last step in a typical control system is

Accepted Answer

A)  taking action to correct problems. 
B)  setting performance standards. 
C)  measuring performance. 
D)  comparing performance against the standards. 
E)  revising standards. 
A)  taking action to correct problems. 
B)  setting performance standards. 
C)  measuring performance. 
D)  comparing performance against the standards. 
E)  revising standards.

Question 14

"After a long and costly two weeks, I have lots of data, that I don't know how to analyze. I don't know what constitutes good performance as opposed to bad performance," said Mickey to his boss. His boss replied, "Mickey, it sounds as if you failed to first establish a(n) ________ by which to assess your data."

Accepted Answer

A)  parameter 
B)  locus 
C)  measurement 
D)  standard 
E)  index 
A)  parameter 
B)  locus 
C)  measurement 
D)  standard 
E)  index

Question 15

________ is the second stage of budgetary control.

Accepted Answer

A)  Responding appropriately 
B)  Performing budgetary operations 
C)  Comparing six sigma data 
D)  Establishing expectations 
E)  Taking action 
A)  Responding appropriately 
B)  Performing budgetary operations 
C)  Comparing six sigma data 
D)  Establishing expectations 
E)  Taking action

Question 16

Sullivan said to his manager, "Theo, I need to tell you that I have received an unsolicited offer from a competitor. I've enjoyed my eight years at Smith Enterprises, and I'd like to stay. But the offered salary is 20 percent higher than my current salary. The other firm cited what I have learned this past year on the public works job as a particularly valuable skill." Sullivan is a highly valued employee, and Theo has been grooming him as his successor. If Theo were to consider market rates as an important indicator of worth in responding to Sullivan, Theo would most likely

Accepted Answer

A)  transfer Sullivan to a division in another city where the competitor does not have an office. 
B)  explain to Sullivan that internal resource considerations establish Sullivan's salary. 
C)  seek to retain Sullivan by increasing his salary by 25 percent. 
D)  contact the competitor and inform them that Sullivan is "off limits." 
E)  terminate Sullivan's employment for insubordination and lack of loyalty. 
A)  transfer Sullivan to a division in another city where the competitor does not have an office. 
B)  explain to Sullivan that internal resource considerations establish Sullivan's salary. 
C)  seek to retain Sullivan by increasing his salary by 25 percent. 
D)  contact the competitor and inform them that Sullivan is "off limits." 
E)  terminate Sullivan's employment for insubordination and lack of loyalty.

Question 17

Describe the criteria that effective control systems should meet.

Accepted Answer

Effective control systems maximize poten

Question 18

Suzanne has recently reviewed a number of indicators of financial control. The one that troubled her, the ________, indicated that the company could have trouble meeting its short-term financial obligations.

Accepted Answer

A)  profit and loss statement 
B)  profitability ratio 
C)  leverage ratio 
D)  current ratio 
E)  return on investment 
A)  profit and loss statement 
B)  profitability ratio 
C)  leverage ratio 
D)  current ratio 
E)  return on investment

Question 19

________ has become a necessary part of a manager's control repertoire.

Accepted Answer

A)  Denial 
B)  Consent 
C)  Empowerment 
D)  Veto 
E)  Cooperation 
A)  Denial 
B)  Consent 
C)  Empowerment 
D)  Veto 
E)  Cooperation

Question 20

"With the rollout of this new ________, we will be able to get a much more accurate picture of how each division-and, in fact, each operations manager, each sales manager, and each sales professional-is performing. And we will be able to hold each manager and employee more accountable. As a result, do not be surprised when we receive a lot of resistance from across the organization," said Angie Summers, CFO of Blunt International.

Accepted Answer

A)  profitability ratio 
B)  external audit 
C)  tactical behavior 
D)  comprehensive control system 
E)  expense report 
A)  profitability ratio 
B)  external audit 
C)  tactical behavior 
D)  comprehensive control system 
E)  expense report

The ________ control process is used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.

External audits are useful for preliminary control because they

A(n) ________ is an evaluation conducted by one organization of another organization.

A(n) ________ is an evaluation of the effectiveness and efficiency of various systems within an organization.

A company is said to lack control when there is a(n) ________, that is the firm's expectations are not established in writing.

Clan control is necessary when members of an organization lack common values, goals, and trust.

Select the definition of control.

Market control

The last step in a typical control system is

________ is the second stage of budgetary control.

Describe the criteria that effective control systems should meet.

Suzanne has recently reviewed a number of indicators of financial control. The one that troubled her, the ________, indicated that the company could have trouble meeting its short-term financial obligations.

________ has become a necessary part of a manager's control repertoire.

Managing in a Global World

The Evolution of Management

The Organizational Environment and Culture

Ethics and Corporate Responsibility

Planning and Decision Making

Entrepreneurship

Organizing for Success

Managing Human Resources

Managing Diversity and Inclusion

Leadership

Motivating People

Teamwork

Communicating

Innovating and Changing

Filters

Exam 14: Managerial Control

The ________ control process is used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.

External audits are useful for preliminary control because they

A(n) ________ is an evaluation conducted by one organization of another organization.

A(n) ________ is an evaluation of the effectiveness and efficiency of various systems within an organization.

A company is said to lack control when there is a(n) ________, that is the firm's expectations are not established in writing.

Clan control is necessary when members of an organization lack common values, goals, and trust.

Select the definition of control.

Market control

The last step in a typical control system is

________ is the second stage of budgetary control.

Describe the criteria that effective control systems should meet.

Suzanne has recently reviewed a number of indicators of financial control. The one that troubled her, the ________, indicated that the company could have trouble meeting its short-term financial obligations.

________ has become a necessary part of a manager's control repertoire.

Managing in a Global World

The Evolution of Management

The Organizational Environment and Culture

Ethics and Corporate Responsibility

Planning and Decision Making

Entrepreneurship

Organizing for Success

Managing Human Resources

Managing Diversity and Inclusion

Leadership

Motivating People

Teamwork

Communicating

Innovating and Changing

Filters