Question 1

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

Accepted Answer

A)  total quality management. 
B)  benchmarking. 
C)  action planning. 
D)  reengineering. 
E)  management by objectives. 
A)  total quality management. 
B)  benchmarking. 
C)  action planning. 
D)  reengineering. 
E)  management by objectives.

Question 2

What is the difference between EVA and MVA?

Accepted Answer

Economic value added (EVA) has become an

Question 3

Which one of the following is NOT a part of the evaluation and control of performance?

Accepted Answer

A)  Establish corporate strategies. 
B)  Determine what to measure. 
C)  Establish standards for performance. 
D)  Measure actual performance. 
E)  Take corrective actions. 
A)  Establish corporate strategies. 
B)  Determine what to measure. 
C)  Establish standards for performance. 
D)  Measure actual performance. 
E)  Take corrective actions.

Question 4

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now preferred?

Accepted Answer

A)  shareholder value 
B)  basic earning power 
C)  price/earnings ratio 
D)  profit margin on sales 
E)  return on assets 
A)  shareholder value 
B)  basic earning power 
C)  price/earnings ratio 
D)  profit margin on sales 
E)  return on assets

Question 5

Which of the following is NOT a reason why ERP could fail?

Accepted Answer

A)  insufficient tailoring of the software to fit the company 
B)  inadequate training 
C)  simplicity of system 
D)  insufficient implementation support 
E)  all of the above 
A)  insufficient tailoring of the software to fit the company 
B)  inadequate training 
C)  simplicity of system 
D)  insufficient implementation support 
E)  all of the above

Question 6

Controls which measure variables that influence future profitability are called

Accepted Answer

A)  steering controls. 
B)  activity controls. 
C)  behavior controls. 
D)  output controls. 
E)  influencing controls. 
A)  steering controls. 
B)  activity controls. 
C)  behavior controls. 
D)  output controls. 
E)  influencing controls.

Question 7

What percent of U.S. companies actively monitored their workers' website visits according to an American Management Association study?

Accepted Answer

A)  0% 
B)  25% 
C)  33% 
D)  50% 
E)  66% 
A)  0% 
B)  25% 
C)  33% 
D)  50% 
E)  66%

Question 8

Which of the following is NOT considered an adequate measure by itself of corporate performance?

Accepted Answer

A)  ROI 
B)  EPS 
C)  ROE 
D)  operating cash flow 
E)  all of the above 
A)  ROI 
B)  EPS 
C)  ROE 
D)  operating cash flow 
E)  all of the above

Question 9

Evaluation and control information consists only of performance data.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

Accepted Answer

A)  customer 
B)  innovation and learning 
C)  financial 
D)  stakeholder 
E)  internal business perspective 
A)  customer 
B)  innovation and learning 
C)  financial 
D)  stakeholder 
E)  internal business perspective

Question 11

Performance is the end result of activity.

Accepted Answer

A) True 
 B)False

Question 12

A global MNC should use what type of controls over its foreign units?

Accepted Answer

A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group on all its foreign units collectively. 
A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group on all its foreign units collectively.

Question 13

Behavior controls specify how something is to be done through policies, rules, standard operating procedures, and orders from a superior.

Accepted Answer

A) True 
 B)False

Question 14

EVA may eventually replace ROI as the standard performance measure.

Accepted Answer

A) True 
 B)False

Question 15

Transferring profits from a foreign subsidiary to the parent corporation through dividends, royalties, or management fees is called

Accepted Answer

A)  technology transfer. 
B)  activity-based costing. 
C)  transfer pricing. 
D)  repatriation of profits. 
E)  transnational funding. 
A)  technology transfer. 
B)  activity-based costing. 
C)  transfer pricing. 
D)  repatriation of profits. 
E)  transnational funding.

Question 16

RFID

Accepted Answer

A)  is radio frequency identification. 
B)  is an electronic tagging technology. 
C)  improves supply-chain efficiency. 
D)  is used as wireless computer passes for toll roads. 
E)  all of the above 
A)  is radio frequency identification. 
B)  is an electronic tagging technology. 
C)  improves supply-chain efficiency. 
D)  is used as wireless computer passes for toll roads. 
E)  all of the above

Question 17

Which one of the following is NOT one of the reasons why many executives do not conduct long-run performance evaluations while preferring to focus primarily on short-run performance?

Accepted Answer

A)  They do not realize their importance. 
B)  They are not personally evaluated on a long-term basis. 
C)  They believe short-run considerations are more important than long-run considerations. 
D)  They do not have the time to make a long-run analysis. 
E)  They do not believe in strategic planning. 
A)  They do not realize their importance. 
B)  They are not personally evaluated on a long-term basis. 
C)  They believe short-run considerations are more important than long-run considerations. 
D)  They do not have the time to make a long-run analysis. 
E)  They do not believe in strategic planning.

Question 18

One of the key reasons for the success of Walmart has been management's use of the company's sophisticated information system to control purchasing decisions.

Accepted Answer

A) True 
 B)False

Question 19

A multi-domestic MNC should use what type of controls on its foreign units?

Accepted Answer

A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group throughout the MNC. 
A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group throughout the MNC.

Question 20

One example of a steering control used by retail stores is the inventory turnover ratio, which shows how hard an investment in inventory is working.

Accepted Answer

A) True 
 B)False

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

What is the difference between EVA and MVA?

Which one of the following is NOT a part of the evaluation and control of performance?

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now preferred?

Which of the following is NOT a reason why ERP could fail?

Controls which measure variables that influence future profitability are called

What percent of U.S. companies actively monitored their workers' website visits according to an American Management Association study?

Which of the following is NOT considered an adequate measure by itself of corporate performance?

Evaluation and control information consists only of performance data.

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

Performance is the end result of activity.

A global MNC should use what type of controls over its foreign units?

Behavior controls specify how something is to be done through policies, rules, standard operating procedures, and orders from a superior.

EVA may eventually replace ROI as the standard performance measure.

Transferring profits from a foreign subsidiary to the parent corporation through dividends, royalties, or management fees is called

RFID

Which one of the following is NOT one of the reasons why many executives do not conduct long-run performance evaluations while preferring to focus primarily on short-run performance?

One of the key reasons for the success of Walmart has been management's use of the company's sophisticated information system to control purchasing decisions.

A multi-domestic MNC should use what type of controls on its foreign units?

One example of a steering control used by retail stores is the inventory turnover ratio, which shows how hard an investment in inventory is working.

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

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Exam 11: Evaluation and Control

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

What is the difference between EVA and MVA?

Which one of the following is NOT a part of the evaluation and control of performance?

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now preferred?

Which of the following is NOT a reason why ERP could fail?

Controls which measure variables that influence future profitability are called

What percent of U.S. companies actively monitored their workers' website visits according to an American Management Association study?

Which of the following is NOT considered an adequate measure by itself of corporate performance?

Evaluation and control information consists only of performance data.

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

Performance is the end result of activity.

A global MNC should use what type of controls over its foreign units?

Behavior controls specify how something is to be done through policies, rules, standard operating procedures, and orders from a superior.

EVA may eventually replace ROI as the standard performance measure.

Transferring profits from a foreign subsidiary to the parent corporation through dividends, royalties, or management fees is called

RFID

Which one of the following is NOT one of the reasons why many executives do not conduct long-run performance evaluations while preferring to focus primarily on short-run performance?

One of the key reasons for the success of Walmart has been management's use of the company's sophisticated information system to control purchasing decisions.

A multi-domestic MNC should use what type of controls on its foreign units?

One example of a steering control used by retail stores is the inventory turnover ratio, which shows how hard an investment in inventory is working.

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

Filters