Question 1

Controls that 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 2

People tend to substitute behaviors that are recognized and rewarded for those behaviors that are ignored, without regard to their contribution to goal accomplishment.

Accepted Answer

A) True 
 B)False

Question 3

Corporations will emphasize all types of controls (output, input, behavior)when they are following a strategy of

Accepted Answer

A) conglomerate diversification. 
B) concentric diversification. 
C) retrenchment. 
D) divestment. 
E) vertical integration. 
A) conglomerate diversification. 
B) concentric diversification. 
C) retrenchment. 
D) divestment. 
E) vertical integration.

Question 4

In one study, 95% of the corporate officers interviewed stated that they use different evaluation techniques for foreign and domestic operations.

Accepted Answer

A) True 
 B)False

Question 5

Among the most important barriers to international trade are the different standards for products and services.

Accepted Answer

A) True 
 B)False

Question 6

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

Accepted Answer

A) strategic-funds method 
B) segmentation method 
C) long-term evaluation method 
D) individual evaluation method 
E) weighted-factor method 
A) strategic-funds method 
B) segmentation method 
C) long-term evaluation method 
D) individual evaluation method 
E) weighted-factor method

Question 7

Which of the following is NOT a guideline for proper control?

Accepted Answer

A) Control should involve only a minimum amount of information. 
B) Long-term as well as short-term controls should be used. 
C) Controls should be timely so that corrective actions can be taken before it is too late. 
D) Controls should measure all activities in order to be comprehensive. 
E) Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards. 
A) Control should involve only a minimum amount of information. 
B) Long-term as well as short-term controls should be used. 
C) Controls should be timely so that corrective actions can be taken before it is too late. 
D) Controls should measure all activities in order to be comprehensive. 
E) Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards.

Question 8

What is ERP? What are the three reasons why ERP could fail?

Accepted Answer

ERP is enterprise resource planning.ERP

Question 9

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 10

Evaluation and control information consists only of performance data.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Question 13

The multi-domestic MNC and the global MNC should use loose controls on its foreign units.

Accepted Answer

A) True 
 B)False

Question 14

Suboptimization occurs when

Accepted Answer

A) a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units to the detriment of the organization as a whole. 
B) there is a failure to produce at or near full capacity. 
C) individuals are placed into positions not suited to their abilities. 
D) managers tend to focus more of their attentions on those aspects which are measurable than on those which are not. 
E) managers concentrate too much on short-term performance objectives. 
A) a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units to the detriment of the organization as a whole. 
B) there is a failure to produce at or near full capacity. 
C) individuals are placed into positions not suited to their abilities. 
D) managers tend to focus more of their attentions on those aspects which are measurable than on those which are not. 
E) managers concentrate too much on short-term performance objectives.

Question 15

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

Accepted Answer

A) investment center. 
B) revenue center. 
C) expense center. 
D) profit center. 
E) standard cost center. 
A) investment center. 
B) revenue center. 
C) expense center. 
D) profit center. 
E) standard cost center.

Question 16

Distinguish between behavior and output controls.Provide examples of each.

Accepted Answer

Behavior controls specify how something

Question 17

The union of all of a company's major business activities from order processing to production within a single family of software modules is known as

Accepted Answer

A) enterprise resource planning. 
B) enterprise strategic planning. 
C) information system planning. 
D) united resource planning. 
E) united strategic planning. 
A) enterprise resource planning. 
B) enterprise strategic planning. 
C) information system planning. 
D) united resource planning. 
E) united strategic planning.

Question 18

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

Accepted Answer

A) True 
 B)False

Question 19

What term describes when activities originally intended to help managers attain corporate objectives become ends in themselves or are adapted to meet ends other than those for which they were intended?

Accepted Answer

A) economic rationality 
B) minimal acceptable behavior 
C) goal displacement 
D) closed system thinking 
E) trained incapacity 
A) economic rationality 
B) minimal acceptable behavior 
C) goal displacement 
D) closed system thinking 
E) trained incapacity

Question 20

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

Accepted Answer

A) the 60/40 rule. 
B) the 30/70 rule. 
C) the 80/20 rule. 
D) success factors. 
E) key performance measures. 
A) the 60/40 rule. 
B) the 30/70 rule. 
C) the 80/20 rule. 
D) success factors. 
E) key performance measures.

Controls that measure variables that influence future profitability are called

People tend to substitute behaviors that are recognized and rewarded for those behaviors that are ignored, without regard to their contribution to goal accomplishment.

Corporations will emphasize all types of controls (output, input, behavior)when they are following a strategy of

In one study, 95% of the corporate officers interviewed stated that they use different evaluation techniques for foreign and domestic operations.

Among the most important barriers to international trade are the different standards for products and services.

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

Which of the following is NOT a guideline for proper control?

What is ERP? What are the three reasons why ERP could fail?

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

Evaluation and control information consists only of performance data.

A global MNC should use what type of controls over 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.

The multi-domestic MNC and the global MNC should use loose controls on its foreign units.

Suboptimization occurs when

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

Distinguish between behavior and output controls.Provide examples of each.

The union of all of a company's major business activities from order processing to production within a single family of software modules is known as

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

What term describes when activities originally intended to help managers attain corporate objectives become ends in themselves or are adapted to meet ends other than those for which they were intended?

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

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

Controls that measure variables that influence future profitability are called

People tend to substitute behaviors that are recognized and rewarded for those behaviors that are ignored, without regard to their contribution to goal accomplishment.

Corporations will emphasize all types of controls (output, input, behavior)when they are following a strategy of

In one study, 95% of the corporate officers interviewed stated that they use different evaluation techniques for foreign and domestic operations.

Among the most important barriers to international trade are the different standards for products and services.

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

Which of the following is NOT a guideline for proper control?

What is ERP? What are the three reasons why ERP could fail?

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

Evaluation and control information consists only of performance data.

A global MNC should use what type of controls over 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.

The multi-domestic MNC and the global MNC should use loose controls on its foreign units.

Suboptimization occurs when

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

Distinguish between behavior and output controls.Provide examples of each.

The union of all of a company's major business activities from order processing to production within a single family of software modules is known as

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

What term describes when activities originally intended to help managers attain corporate objectives become ends in themselves or are adapted to meet ends other than those for which they were intended?

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

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