Question 1

Delegation is the act of distributing work and power to subordinates.

Accepted Answer

A) True 
 B)False

Question 2

A task force is a committee responsible for investigating a major problem or pending decision.

Accepted Answer

A) True 
 B)False

Question 3

Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organization chart, which will

Accepted Answer

A)  demonstrate the firm's informal network of communication. 
B)  clarify positions and reporting relationships within the firm. 
C)  not be very useful because small firms don't usually adhere to a formal structure. 
D)  probably be outdated because small firms are always changing. 
E)  indicate the short-, medium-, and long-term goals of the company. 
A)  demonstrate the firm's informal network of communication. 
B)  clarify positions and reporting relationships within the firm. 
C)  not be very useful because small firms don't usually adhere to a formal structure. 
D)  probably be outdated because small firms are always changing. 
E)  indicate the short-, medium-, and long-term goals of the company.

Question 4

In a flat organization, administrative costs are higher because more managers are needed.

Accepted Answer

A) True 
 B)False

Question 5

Airo Corporation has a traditional structure. It wants to change to a project structure that will allow more interaction among functional groups. Which structure would you suggest?

Accepted Answer

A)  Network 
B)  Formal 
C)  Matrix 
D)  Informal 
E)  Line 
A)  Network 
B)  Formal 
C)  Matrix 
D)  Informal 
E)  Line

Question 6

If First National Bank were to assign one of its bank tellers to business merchants and two others to individual accounts, it would be departmentalizing on the basis of

Accepted Answer

A)  location. 
B)  population. 
C)  customer. 
D)  function. 
E)  service. 
A)  location. 
B)  population. 
C)  customer. 
D)  function. 
E)  service.

Question 7

When a functional structure is combined with a project structure, the resulting structure is called a(n) ____ structure.

Accepted Answer

A)  line-and-staff 
B)  network 
C)  integrated 
D)  matrix 
E)  hybrid 
A)  line-and-staff 
B)  network 
C)  integrated 
D)  matrix 
E)  hybrid

Question 8

What are some of the primary differences between a line structure and a line-and-staff structure?

Accepted Answer

The primary differences between a line s

Question 9

Dramatic Expressions
Dramatic Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers. Wanda is the CEO of the company. She feels that there is not enough specialization within the company and wants to organize the business in a different way. Wanda thinks that the company would be more effective if it were to switch to a new way of organization. For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.
Another issue that Wanda wants to resolve is that of delegation. She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do. There are certain reasons that Wanda has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.
-Refer to Dramatic Expressions. Wanda should address all of the following when it comes to organizing the business except

Accepted Answer

A)  job design. 
B)  regulating behavior. 
C)  establishing a chain of command. 
D)  departmentalization. 
E)  delegation. 
A)  job design. 
B)  regulating behavior. 
C)  establishing a chain of command. 
D)  departmentalization. 
E)  delegation.

Question 10

The span of management plays a direct role in determining the organization's height.

Accepted Answer

A) True 
 B)False

Question 11

The most common bases for departmentalization are function, product, location, and customer.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is considered a downside of a line structure for an organization?

Accepted Answer

A)  The vast array of expertise brings a wide array of knowledge to a line structure. 
B)  Slow decision-making by managers is typical of a line structure. 
C)  Confusion about who is in charge causes grave drawbacks for this structure. 
D)  Boredom and dissatisfaction is commonplace for managers in a line structure organization. 
E)  Managers are responsible for a wide range of activities and, therefore, must have vast knowledge all of these activities. 
A)  The vast array of expertise brings a wide array of knowledge to a line structure. 
B)  Slow decision-making by managers is typical of a line structure. 
C)  Confusion about who is in charge causes grave drawbacks for this structure. 
D)  Boredom and dissatisfaction is commonplace for managers in a line structure organization. 
E)  Managers are responsible for a wide range of activities and, therefore, must have vast knowledge all of these activities.

Question 13

What does it mean for a manager to have a wide span of control? Would you expect the span of control to be wide or narrow when subordinates are highly trained professionals? Support your answer.

Accepted Answer

A wide span of control for a manager mea

Question 14

Although departmentalization may be determined within an organization on the basis of one criterion, such as location, most organizations find ____ to be a more efficient means of conducting business.

Accepted Answer

A)  decentralization 
B)  more than one basis for departmentalization 
C)  delegation of authority 
D)  centralization 
E)  managerial decision making 
A)  decentralization 
B)  more than one basis for departmentalization 
C)  delegation of authority 
D)  centralization 
E)  managerial decision making

Question 15

A highly centralized organization usually means that lower-level employees have the opportunity to make decisions regarding the best way to accomplish their assigned tasks.

Accepted Answer

A) True 
 B)False

Question 16

General Motors has separate divisions for Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. This is an example of departmentalization by

Accepted Answer

A)  function. 
B)  location. 
C)  customer. 
D)  product. 
E)  model. 
A)  function. 
B)  location. 
C)  customer. 
D)  product. 
E)  model.

Question 17

Sherry, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial manager to develop new uses for one of the company's existing products in order to increase sales. This group is a

Accepted Answer

A)  standing committee. 
B)  task force. 
C)  special project team. 
D)  cross-functional team. 
E)  multifaceted work group. 
A)  standing committee. 
B)  task force. 
C)  special project team. 
D)  cross-functional team. 
E)  multifaceted work group.

Question 18

Job rotation is the systematic shifting of employees from one job to another.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not one of the four basic forms of organizational structure?

Accepted Answer

A)  Informal 
B)  Network 
C)  Line 
D)  Line-and-staff 
E)  Matrix 
A)  Informal 
B)  Network 
C)  Line 
D)  Line-and-staff 
E)  Matrix

Question 20

The ____ structure is considered the simplest and the oldest form of organizational structure.

Accepted Answer

A)  cross-functional team 
B)  matrix 
C)  formal 
D)  line-and-staff 
E)  line 
A)  cross-functional team 
B)  matrix 
C)  formal 
D)  line-and-staff 
E)  line

Exam 7: Creating a Flexible Organization

Delegation is the act of distributing work and power to subordinates.

A task force is a committee responsible for investigating a major problem or pending decision.

Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organization chart, which will

In a flat organization, administrative costs are higher because more managers are needed.

Airo Corporation has a traditional structure. It wants to change to a project structure that will allow more interaction among functional groups. Which structure would you suggest?

If First National Bank were to assign one of its bank tellers to business merchants and two others to individual accounts, it would be departmentalizing on the basis of

When a functional structure is combined with a project structure, the resulting structure is called a(n) ____ structure.

What are some of the primary differences between a line structure and a line-and-staff structure?

The span of management plays a direct role in determining the organization's height.

The most common bases for departmentalization are function, product, location, and customer.

Which of the following is considered a downside of a line structure for an organization?

What does it mean for a manager to have a wide span of control? Would you expect the span of control to be wide or narrow when subordinates are highly trained professionals? Support your answer.

Although departmentalization may be determined within an organization on the basis of one criterion, such as location, most organizations find ____ to be a more efficient means of conducting business.

A highly centralized organization usually means that lower-level employees have the opportunity to make decisions regarding the best way to accomplish their assigned tasks.

General Motors has separate divisions for Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. This is an example of departmentalization by

Sherry, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial manager to develop new uses for one of the company's existing products in order to increase sales. This group is a

Job rotation is the systematic shifting of employees from one job to another.

Which of the following is not one of the four basic forms of organizational structure?

The ____ structure is considered the simplest and the oldest form of organizational structure.

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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