Question 1

The use of timely,quantifiable standards guarantees good performance.

Accepted Answer

A) True 
 B)False  False

Question 2

Some takeover specialists look at the amount of money a new owner can take out of the firm without harming the business.This is known as

Accepted Answer

A)  leveraged buyout. 
B)  operating cash flow. 
C)  free cash flow. 
D)  dividends. 
E)  shareholder measure. 
A)  leveraged buyout. 
B)  operating cash flow. 
C)  free cash flow. 
D)  dividends. 
E)  shareholder measure. C

Question 3

The ________ encourages executives to look at developmental expenses as being different from 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 A

Question 4

RFID is an electronic tagging technology used to improve supply-chain efficiency in a number of companies.

Accepted Answer

A) True 
 B)False

Question 5

The ISO 9000 Standards Series,developed by the International Standards Association of Geneva,Switzerland,is an example of a behavior control.

Accepted Answer

A) True 
 B)False

Question 6

Management audits have been developed to evaluate activities such as corporate social responsibility,functional areas such as the marketing department,and divisions such as the international division.

Accepted Answer

A) True 
 B)False

Question 7

An advantage of ROI as a measure of performance is that

Accepted Answer

A)  it is sensitive to book value. 
B)  it provides an incentive to use existing assets efficiently. 
C)  the time span of concern is short range. 
D)  the business cycle strongly affects ROI performance often despite managerial performance. 
E)  it is very sensitive to depreciation policy. 
A)  it is sensitive to book value. 
B)  it provides an incentive to use existing assets efficiently. 
C)  the time span of concern is short range. 
D)  the business cycle strongly affects ROI performance often despite managerial performance. 
E)  it is very sensitive to depreciation policy.

Question 8

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 9

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 attention 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 attention on those aspects which are measurable than on those which are not. 
E)  managers concentrate too much on short-term performance objectives.

Question 10

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

Accepted Answer

ERP is enterprise resource planning.ERP

Question 11

What is the difference between EVA and MVA?

Accepted Answer

Economic value added (EVA)has become an

Question 12

A profit center is typically established whenever an organizational unit has control over both its resources and its products or services.

Accepted Answer

A) True 
 B)False

Question 13

Behavior,output,and input controls are all interchangeable.

Accepted Answer

A) True 
 B)False

Question 14

ROI is

Accepted Answer

A)  Repatriation of investments. 
B)  Return on interest. 
C)  Repatriation of interest. 
D)  Return on investment. 
E)  Return of internationals. 
A)  Repatriation of investments. 
B)  Return on interest. 
C)  Repatriation of interest. 
D)  Return on investment. 
E)  Return of internationals.

Question 15

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

Accepted Answer

Behavior controls specify how something

Question 16

The difference between the pre-strategy and post-strategy values for the business is

Accepted Answer

A)  ROI. 
B)  EPS. 
C)  ROE. 
D)  EVA. 
E)  MVA. 
A)  ROI. 
B)  EPS. 
C)  ROE. 
D)  EVA. 
E)  MVA.

Question 17

Which of the following is not one of the steps followed in the benchmarking process?

Accepted Answer

A)  Develop tactical programs for closing performance gaps. 
B)  Implement tactical programs, measure the results, and compare the results with those of the best-in-class company. 
C)  Implement activity-based costing. 
D)  Identify the area or process to be examined. 
E)  Calculate the differences among the company's performance measurements and those of the best-in-class company. 
A)  Develop tactical programs for closing performance gaps. 
B)  Implement tactical programs, measure the results, and compare the results with those of the best-in-class company. 
C)  Implement activity-based costing. 
D)  Identify the area or process to be examined. 
E)  Calculate the differences among the company's performance measurements and those of the best-in-class company.

Question 18

The revenue center is measured in terms of efficiency.

Accepted Answer

A) True 
 B)False

Question 19

According to the text,using a long-term performance evaluation system,a company executive might be promised incentives such as

Accepted Answer

A)  company cars. 
B)  company stock. 
C)  health insurance. 
D)  retirement plans. 
E)  vacations. 
A)  company cars. 
B)  company stock. 
C)  health insurance. 
D)  retirement plans. 
E)  vacations.

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.

The use of timely,quantifiable standards guarantees good performance.

Some takeover specialists look at the amount of money a new owner can take out of the firm without harming the business.This is known as

The ________ encourages executives to look at developmental expenses as being different from expenses required for current operations.

RFID is an electronic tagging technology used to improve supply-chain efficiency in a number of companies.

The ISO 9000 Standards Series,developed by the International Standards Association of Geneva,Switzerland,is an example of a behavior control.

Management audits have been developed to evaluate activities such as corporate social responsibility,functional areas such as the marketing department,and divisions such as the international division.

An advantage of ROI as a measure of performance is that

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?

Suboptimization occurs when

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

What is the difference between EVA and MVA?

A profit center is typically established whenever an organizational unit has control over both its resources and its products or services.

Behavior,output,and input controls are all interchangeable.

ROI is

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

The difference between the pre-strategy and post-strategy values for the business is

Which of the following is not one of the steps followed in the benchmarking process?

The revenue center is measured in terms of efficiency.

According to the text,using a long-term performance evaluation system,a company executive might be promised incentives such as

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

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

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Exam 12: Evaluation and Control

The use of timely,quantifiable standards guarantees good performance.

Some takeover specialists look at the amount of money a new owner can take out of the firm without harming the business.This is known as

The ________ encourages executives to look at developmental expenses as being different from expenses required for current operations.

RFID is an electronic tagging technology used to improve supply-chain efficiency in a number of companies.

The ISO 9000 Standards Series,developed by the International Standards Association of Geneva,Switzerland,is an example of a behavior control.

Management audits have been developed to evaluate activities such as corporate social responsibility,functional areas such as the marketing department,and divisions such as the international division.

An advantage of ROI as a measure of performance is that

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?

Suboptimization occurs when

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

What is the difference between EVA and MVA?

A profit center is typically established whenever an organizational unit has control over both its resources and its products or services.

Behavior,output,and input controls are all interchangeable.

ROI is

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

The difference between the pre-strategy and post-strategy values for the business is

Which of the following is not one of the steps followed in the benchmarking process?

The revenue center is measured in terms of efficiency.

According to the text,using a long-term performance evaluation system,a company executive might be promised incentives such as

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

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

Filters