Question 1

With market control, the activities of an organization are regulated through the use of

Accepted Answer

A) rules, regulations, and formal authority. 
B) budgets, statistical reports, and performance appraisals. 
C) shared values, expectations, and goals. 
D) pricing mechanisms and economic information. 
E) real-time monitoring and fine-tuning. 
A) rules, regulations, and formal authority. 
B) budgets, statistical reports, and performance appraisals. 
C) shared values, expectations, and goals. 
D) pricing mechanisms and economic information. 
E) real-time monitoring and fine-tuning.

Question 2

In today's complex organizations, the budget process is most likely to be

Accepted Answer

A) top-down. 
B) bottom-up. 
C) horizontal. 
D) circular. 
E) compartmentalized. 
A) top-down. 
B) bottom-up. 
C) horizontal. 
D) circular. 
E) compartmentalized.

Question 3

List and give an example of each of the four types of performance standards.

Accepted Answer

Performance standards can be set with re

Question 4

Alvita works for a company that extracts minerals from the ground. Her new CEO wants to be sure the company can keep extracting minerals and continue to work with landowners to get mineral rights for many years. The CEO asks Alvita to audit how the likely the company will be able to sustain its operations long-term. What should Alvita keep in mind while conducting this audit?

Accepted Answer

A) She needs to realize she is subject to more regulation than if she were conducting a financial audit. 
B) She will need to report her results in the same format as any other audit. 
C) She should consider company profits, the local people, and the local environment. 
D) She can ignore financial and profitability data for the purposes of this audit. 
E) She should do what pleases the local landowners, even if it is not profitable. 
A) She needs to realize she is subject to more regulation than if she were conducting a financial audit. 
B) She will need to report her results in the same format as any other audit. 
C) She should consider company profits, the local people, and the local environment. 
D) She can ignore financial and profitability data for the purposes of this audit. 
E) She should do what pleases the local landowners, even if it is not profitable.

Question 5

Adirondack Accounting Associates is an organization that has undergone a dramatic transformation over the last few years. Earlier, employees were managed using a wide array of rules, regulations, and procedures. Offending employees were punished for their violations. Today, under the leadership of the new CEO, Agatha, employees are encouraged to make decisions and come up with innovative solutions to problems they encounter. Most employees are much more satisfied under the new arrangement. The group is much more cohesive and is committed not only to the overall success of the organization but also to its standards and reputation. Despite the improved employee morale under Agatha, the other top managers have expressed a strong desire to reign in what they see as excessive employee freedoms and institute more formalized rules. Meanwhile, the middle managers have expressed their desire to base operations on costs and prices, and outsource certain tasks if it is more profitable. Agatha discusses the issue with an outside consultant, who recommends that the company focus on creating a strong culture with values that all employees accept and understand. Which type of control system did the organization most likely use in the past?

Accepted Answer

A) clan 
B) market 
C) bureaucratic 
D) subjective 
E) informal 
A) clan 
B) market 
C) bureaucratic 
D) subjective 
E) informal

Question 6

Dana's company relies on rules, as set forth in the employee handbook, the authority of managers, and regular employee reviews to guide performance. Dana's company uses ________ control.

Accepted Answer

A) bureaucratic 
B) market 
C) feedback 
D) concurrent 
E) clan 
A) bureaucratic 
B) market 
C) feedback 
D) concurrent 
E) clan

Question 7

________ ratio is a liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities.

Accepted Answer

A) Debt-equity 
B) Current 
C) Profitability 
D) Return on investment 
E) Stockholders' equity 
A) Debt-equity 
B) Current 
C) Profitability 
D) Return on investment 
E) Stockholders' equity

Question 8

LaWanda, the manager of a large beauty salon, is having problems with employees not complying with the rules about clocking in and clocking out each day. If the employees fail to follow these rules, their pay is affected. She is considering three different options for addressing this problem:1. Adding supervision at the entrance so that employees comply with the rules during shift changes2. Generating reports on employees not complying with the rules and asking these employees to take corrective measures3. Implementing a new procedure that is easier for the employees to follow and conducting training so that each employee knows the policy and the procedure before it is enacted Which approach to bureaucratic control is described in option 2?

Accepted Answer

A) feedback 
B) feedforward 
C) concurrent 
D) market 
E) clan 
A) feedback 
B) feedforward 
C) concurrent 
D) market 
E) clan

Question 9

What is the last step in the control process?

Accepted Answer

A) measuring performance based on standards 
B) defining what constitutes performance 
C) setting performance standards 
D) taking action to correct problems and reinforce successes 
E) comparing performance to the standards and determining deviations 
A) measuring performance based on standards 
B) defining what constitutes performance 
C) setting performance standards 
D) taking action to correct problems and reinforce successes 
E) comparing performance to the standards and determining deviations

Question 10

The increasing need for clan control is caused by the

Accepted Answer

A) changes in the employment relationship. 
B) unchanging nature of management. 
C) changes in the economic environment. 
D) changes in government regulations. 
E) unchanging nature of employees' jobs. 
A) changes in the employment relationship. 
B) unchanging nature of management. 
C) changes in the economic environment. 
D) changes in government regulations. 
E) unchanging nature of employees' jobs.

Question 11

Describe the various criteria that control systems should meet when designed by management.

Accepted Answer

Effective control systems maximize poten

Question 12

The effective use of clan control is associated with employee

Accepted Answer

A) bureaucracy. 
B) manipulation. 
C) empowerment. 
D) dissatisfaction. 
E) unionization. 
A) bureaucracy. 
B) manipulation. 
C) empowerment. 
D) dissatisfaction. 
E) unionization.

Question 13

Traditional methods of cost accounting tend to be inappropriate in today's business environment because they are based on outdated methods of rigid hierarchical organization.

Accepted Answer

A) True 
 B)False

Question 14

The executives at Old-Fashioned Evening Inc., a chain of restaurants that feature wholesome activities for young couples, believe that the company's employees share the corporate goals of service, quality, value, and "good clean fun." Because of this, corporate leadership believes that employees are motivated to work for the common good without a lot of formal controls. This is an example of ________ control.

Accepted Answer

A) feedforward 
B) market 
C) feedback 
D) concurrent 
E) clan 
A) feedforward 
B) market 
C) feedback 
D) concurrent 
E) clan

Question 15

The use of budgeting, statistical reports, and performance appraisals to regulate behavior and results is considered a component of

Accepted Answer

A) clan control. 
B) market control. 
C) bureaucratic control. 
D) financial audits. 
E) management audits. 
A) clan control. 
B) market control. 
C) bureaucratic control. 
D) financial audits. 
E) management audits.

Question 16

In contrast to bureaucratic controls, market controls involve the use of

Accepted Answer

A) rules and regulations. 
B) economic forces. 
C) authority. 
D) autocratic power. 
E) norms. 
A) rules and regulations. 
B) economic forces. 
C) authority. 
D) autocratic power. 
E) norms.

Question 17

Which of the following statements about the six-sigma approach to quality is true?

Accepted Answer

A) It is an excellent method for delivering business results. 
B) It usually improves the bottom line. 
C) It focuses on eliminating defects in a process. 
D) It looks at whether a process is the best one available. 
E) It has little practical use in the business world. 
A) It is an excellent method for delivering business results. 
B) It usually improves the bottom line. 
C) It focuses on eliminating defects in a process. 
D) It looks at whether a process is the best one available. 
E) It has little practical use in the business world.

Question 18

"Many of your management trainees do not have formal educations or degrees in accounting or finance. And that is OK," said the corporate trainer. "That's why this training module will cover control by ________, which is most commonly used for the entire enterprise and, in the case of a diversified corporation such as ours, its divisions."

Accepted Answer

A) profit and loss 
B) assets 
C) liabilities 
D) financial ratios 
E) expenses 
A) profit and loss 
B) assets 
C) liabilities 
D) financial ratios 
E) expenses

Question 19

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equity is referred to as a(n)

Accepted Answer

A) profit and loss statement. 
B) balance sheet. 
C) expense report. 
D) income statement. 
E) budget report. 
A) profit and loss statement. 
B) balance sheet. 
C) expense report. 
D) income statement. 
E) budget report.

Question 20

Describe the role of empowerment in clan control.

Accepted Answer

Managers are discovering that control sy

With market control, the activities of an organization are regulated through the use of

In today's complex organizations, the budget process is most likely to be

List and give an example of each of the four types of performance standards.

Dana's company relies on rules, as set forth in the employee handbook, the authority of managers, and regular employee reviews to guide performance. Dana's company uses ________ control.

________ ratio is a liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities.

What is the last step in the control process?

The increasing need for clan control is caused by the

Describe the various criteria that control systems should meet when designed by management.

The effective use of clan control is associated with employee

Traditional methods of cost accounting tend to be inappropriate in today's business environment because they are based on outdated methods of rigid hierarchical organization.

The use of budgeting, statistical reports, and performance appraisals to regulate behavior and results is considered a component of

In contrast to bureaucratic controls, market controls involve the use of

Which of the following statements about the six-sigma approach to quality is true?

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equity is referred to as a(n)

Describe the role of empowerment in clan control.

Managing and Performing

The External and Internal Environments

Managerial Decision Making

Planning and Strategic Management

Ethics, Corporate Responsibility, and Sustainability

International Management

Entrepreneurship

Organization Structure

Organizational Agility

Human Resources Management

Managing the Diverse Workforce

Leadership

Motivating for Performance

Teamwork

Communicating

Managing Technology and Innovation

Creating and Leading Change

Filters

Exam 16: Managerial Control

With market control, the activities of an organization are regulated through the use of

In today's complex organizations, the budget process is most likely to be

List and give an example of each of the four types of performance standards.

Dana's company relies on rules, as set forth in the employee handbook, the authority of managers, and regular employee reviews to guide performance. Dana's company uses ________ control.

________ ratio is a liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities.

What is the last step in the control process?

The increasing need for clan control is caused by the

Describe the various criteria that control systems should meet when designed by management.

The effective use of clan control is associated with employee

Traditional methods of cost accounting tend to be inappropriate in today's business environment because they are based on outdated methods of rigid hierarchical organization.

The use of budgeting, statistical reports, and performance appraisals to regulate behavior and results is considered a component of

In contrast to bureaucratic controls, market controls involve the use of

Which of the following statements about the six-sigma approach to quality is true?

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equity is referred to as a(n)

Describe the role of empowerment in clan control.

Managing and Performing

The External and Internal Environments

Managerial Decision Making

Planning and Strategic Management

Ethics, Corporate Responsibility, and Sustainability

International Management

Entrepreneurship

Organization Structure

Organizational Agility

Human Resources Management

Managing the Diverse Workforce

Leadership

Motivating for Performance

Teamwork

Communicating

Managing Technology and Innovation

Creating and Leading Change

Filters