Question 1

List and describe three advantages of a divisional structure.

Accepted Answer

In a divisional organization, corporate divisions operate as autonomous businesses under the larger corporate umbrella. A divisional structure allows the corporation to evaluate the performance of each division independently. Because the divisions are relatively autonomous, a firm can sell or eliminate a single division with minimal disruption to the remaining business operations. Finally, a divisional structure can create healthy competition. Divisions can share certain corporate-level resources.
Explanation:Divisions operate as autonomous businesses. The advantages include independent evaluation, ability to sell or disband with minimal disruption to the corporation, and the opportunity to compete and share resources.

Question 2

After an organizational structure has been created, it is set in stone.

Accepted Answer

A) True 
 B)False  False

Question 3

What is the difference between responsibility and authority?

Accepted Answer

Responsibility is the duty to perform an assigned task, whereas authority is the power to make the decisions necessary to complete the task.
Explanation:Responsibility relates to task assignment; authority relates to task completion.

Question 4

What is dividing a store into a men's department, a women's department, and a luggage department an example of?

Accepted Answer

A)  product departmentalization 
B)  customer departmentalization 
C)  process departmentalization 
D)  geographic departmentalization 
E)  international departmentalization 
A)  product departmentalization 
B)  customer departmentalization 
C)  process departmentalization 
D)  geographic departmentalization 
E)  international departmentalization

Question 5

The organization of the health care producer Johnson & Johnson includes consumer health care products, medical devices and diagnostics, and pharmaceuticals. What kind of organizational structure does this company use?

Accepted Answer

A)  departments 
B)  regions 
C)  units 
D)  divisions 
E)  committees 
A)  departments 
B)  regions 
C)  units 
D)  divisions 
E)  committees

Question 6

Which form of organization is used by most small to medium-sized firms?

Accepted Answer

A)  divisional 
B)  functional 
C)  matrix 
D)  international 
E)  stratified 
A)  divisional 
B)  functional 
C)  matrix 
D)  international 
E)  stratified

Question 7

Which of the following clarifies structure and shows employees where they fit into a firm's operations?

Accepted Answer

A)  delegation 
B)  departmentalization 
C)  organization charts 
D)  mission statement 
E)  job descriptions 
A)  delegation 
B)  departmentalization 
C)  organization charts 
D)  mission statement 
E)  job descriptions

Question 8

Based on the organization chart described in the scenario, how is Ace Products organized?

Accepted Answer

It appears that Ace

Question 9

The functional organizational structure is the approach to organizational structure used by most small to medium-sized firms.

Accepted Answer

A) True 
 B)False

Question 10

At McDonald's, most advertising is handled at the corporate level, and any local advertising must be approved by a regional manager. What kind of organization is McDonald's demonstrating?

Accepted Answer

A)  authoritarian 
B)  committee 
C)  decentralized 
D)  centralized 
E)  team 
A)  authoritarian 
B)  committee 
C)  decentralized 
D)  centralized 
E)  team

Question 11

When several employees perform the same simple task, a narrow span of control is most appropriate.

Accepted Answer

A) True 
 B)False

Question 12

Which statement about organizational structure is True?

Accepted Answer

A)  Decentralized firms tend to have many layers of management. 
B)  As a company gets larger, it tends to adopt a decentralized structure. 
C)  The purpose of centralization is to make a company more responsive to a changing, complex environment. 
D)  In a centralized organization, most decision-making authority is held by lower-level managers. 
E)  Decentralized companies must change to centralized structures in response to unpredictable environments. 
A)  Decentralized firms tend to have many layers of management. 
B)  As a company gets larger, it tends to adopt a decentralized structure. 
C)  The purpose of centralization is to make a company more responsive to a changing, complex environment. 
D)  In a centralized organization, most decision-making authority is held by lower-level managers. 
E)  Decentralized companies must change to centralized structures in response to unpredictable environments.

Question 13

For the delegation process to work smoothly, responsibility and authority must be equivalent.

Accepted Answer

A) True 
 B)False

Question 14

Line departments are linked directly to the production and sales of a specific product.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an advantage of job specialization?

Accepted Answer

A)  Workers can develop expertise in their jobs. 
B)  Workers will not need to be trained. 
C)  Jobs become more interesting. 
D)  Workers derive more satisfaction from their jobs. 
E)  Jobs do not need to be redefined. 
A)  Workers can develop expertise in their jobs. 
B)  Workers will not need to be trained. 
C)  Jobs become more interesting. 
D)  Workers derive more satisfaction from their jobs. 
E)  Jobs do not need to be redefined.

Question 16

The chain of command is depicted by solid lines on an organization chart.

Accepted Answer

A) True 
 B)False

Question 17

At Chaparral Steel, some employees transport scrap steel while others operate shredding equipment. What does this example demonstrate?

Accepted Answer

A)  departmentalization 
B)  specialization 
C)  functionalization 
D)  responsibility 
E)  innovation 
A)  departmentalization 
B)  specialization 
C)  functionalization 
D)  responsibility 
E)  innovation

Question 18

Employees' abilities and the supervisor's managerial skills help determine whether span of control is wide or narrow.

Accepted Answer

A) True 
 B)False

Question 19

A virtual organization has little or no formal structure.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the difference between delegation and accountability.

Accepted Answer

Delegation is the process through which

List and describe three advantages of a divisional structure.

After an organizational structure has been created, it is set in stone.

What is the difference between responsibility and authority?

What is dividing a store into a men's department, a women's department, and a luggage department an example of?

The organization of the health care producer Johnson & Johnson includes consumer health care products, medical devices and diagnostics, and pharmaceuticals. What kind of organizational structure does this company use?

Which form of organization is used by most small to medium-sized firms?

Which of the following clarifies structure and shows employees where they fit into a firm's operations?

Based on the organization chart described in the scenario, how is Ace Products organized?

The functional organizational structure is the approach to organizational structure used by most small to medium-sized firms.

At McDonald's, most advertising is handled at the corporate level, and any local advertising must be approved by a regional manager. What kind of organization is McDonald's demonstrating?

When several employees perform the same simple task, a narrow span of control is most appropriate.

Which statement about organizational structure is True?

For the delegation process to work smoothly, responsibility and authority must be equivalent.

Line departments are linked directly to the production and sales of a specific product.

Which of the following is an advantage of job specialization?

The chain of command is depicted by solid lines on an organization chart.

At Chaparral Steel, some employees transport scrap steel while others operate shredding equipment. What does this example demonstrate?

Employees' abilities and the supervisor's managerial skills help determine whether span of control is wide or narrow.

A virtual organization has little or no formal structure.

Discuss the difference between delegation and accountability.

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

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Exam 6: Organizing the Business

List and describe three advantages of a divisional structure.

After an organizational structure has been created, it is set in stone.

What is the difference between responsibility and authority?

What is dividing a store into a men's department, a women's department, and a luggage department an example of?

The organization of the health care producer Johnson & Johnson includes consumer health care products, medical devices and diagnostics, and pharmaceuticals. What kind of organizational structure does this company use?

Which form of organization is used by most small to medium-sized firms?

Which of the following clarifies structure and shows employees where they fit into a firm's operations?

Based on the organization chart described in the scenario, how is Ace Products organized?

The functional organizational structure is the approach to organizational structure used by most small to medium-sized firms.

At McDonald's, most advertising is handled at the corporate level, and any local advertising must be approved by a regional manager. What kind of organization is McDonald's demonstrating?

When several employees perform the same simple task, a narrow span of control is most appropriate.

Which statement about organizational structure is True?

For the delegation process to work smoothly, responsibility and authority must be equivalent.

Line departments are linked directly to the production and sales of a specific product.

Which of the following is an advantage of job specialization?

The chain of command is depicted by solid lines on an organization chart.

At Chaparral Steel, some employees transport scrap steel while others operate shredding equipment. What does this example demonstrate?

Employees' abilities and the supervisor's managerial skills help determine whether span of control is wide or narrow.

A virtual organization has little or no formal structure.

Discuss the difference between delegation and accountability.

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters