Question 1

Cross-functional teams consist of employees from different departments who work together on a long-term basis.

Accepted Answer

A) True 
 B)False

Question 2

Sage is an experienced manager with excellent communications skills. The workers in her team are highly skilled and capable of doing their work with very little direct supervision. Sage's span of control is likely to be quite broad.

Accepted Answer

A) True 
 B)False

Question 3

Currently, Mucho Dinero is organized into specialized departments such as marketing, finance, production, and personnel. These departments are designed to allow people with similar skills and expertise to work together. This approach is known as ________ departmentalization.

Accepted Answer

A)  functional 
B)  process 
C)  interest group 
D)  task-oriented 
A)  functional 
B)  process 
C)  interest group 
D)  task-oriented

Question 4

When we experience economies of scale, this means that as production levels rise (we make more of something), the cost of supplies and the cost of labor that go into the production go down.

Accepted Answer

A) True 
 B)False

Question 5

The informal organization is created by the decisions of top management.

Accepted Answer

A) True 
 B)False

Question 6

Farm to Table Foods is a wholesaler serving grocery stores nationwide. Communications technology allows Farm to Table to work closely with its suppliers and customers in real time. Networking allows these organizations to operate more efficiently.

Accepted Answer

A) True 
 B)False

Question 7

Top management at Upper Limits, Inc. looks to encourage communication between different departments to stop employees from becoming narrow specialists. The best way to reach these goals is to departmentalize Upper Limit's organization by function.

Accepted Answer

A) True 
 B)False

Question 8

Most companies are no longer self-sufficient or self-contained.

Accepted Answer

A) True 
 B)False

Question 9

Outsourcing involves assigning various functions to outside organizations.

Accepted Answer

A) True 
 B)False

Question 10

Cross-functional teams serve as advisory committees offering their expertise to line decision makers.

Accepted Answer

A) True 
 B)False

Question 11

Small business organizations lack the size required to reap the benefits of labor specialization.

Accepted Answer

A) True 
 B)False

Question 12

A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of production, and two design engineers.

Accepted Answer

A) True 
 B)False

Question 13

Bass Clef Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that Bass Clef departmentalizes by

Accepted Answer

A)  process. 
B)  function. 
C)  user group. 
D)  tradition. 
A)  process. 
B)  function. 
C)  user group. 
D)  tradition.

Question 14

Competitive benchmarking compares a company's practices, processes, and products against others in its industry, with the goal of doing it better than the competition.

Accepted Answer

A) True 
 B)False

Question 15

The driving force behind the change in business organizations is the change in consumer expectations.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following describes a group of employees from different departments working together on a long-term basis?

Accepted Answer

A)  focus group 
B)  mixed function groups 
C)  cross-functional self-managed teams 
D)  intrapraneurial teams 
A)  focus group 
B)  mixed function groups 
C)  cross-functional self-managed teams 
D)  intrapraneurial teams

Question 17

Economies of scale

Accepted Answer

A)  are available to small firms but not to large firms due to management inefficiencies. 
B)  are achieved when a firm reduces its average cost of production as it produces more. 
C)  can be avoided by purchasing supplies and raw materials in large quantities. 
D)  help explain the success of small businesses. 
A)  are available to small firms but not to large firms due to management inefficiencies. 
B)  are achieved when a firm reduces its average cost of production as it produces more. 
C)  can be avoided by purchasing supplies and raw materials in large quantities. 
D)  help explain the success of small businesses.

Question 18

On Air Studios organizes its jobs by activity, such as production, marketing, accounting, and finance. On Air Studios applies ________ departmentalization in order to maximize their efficiency.

Accepted Answer

A)  product 
B)  customer 
C)  functional 
D)  standardized 
A)  product 
B)  customer 
C)  functional 
D)  standardized

Question 19

Weber was a strong proponent of bureaucracy.

Accepted Answer

A) True 
 B)False

Question 20

Digital natives, those who grew up with the Internet and other devices, are an important customer group that most businesses want to reach.

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

Cross-functional teams consist of employees from different departments who work together on a long-term basis.

Sage is an experienced manager with excellent communications skills. The workers in her team are highly skilled and capable of doing their work with very little direct supervision. Sage's span of control is likely to be quite broad.

Currently, Mucho Dinero is organized into specialized departments such as marketing, finance, production, and personnel. These departments are designed to allow people with similar skills and expertise to work together. This approach is known as ________ departmentalization.

When we experience economies of scale, this means that as production levels rise (we make more of something), the cost of supplies and the cost of labor that go into the production go down.

The informal organization is created by the decisions of top management.

Farm to Table Foods is a wholesaler serving grocery stores nationwide. Communications technology allows Farm to Table to work closely with its suppliers and customers in real time. Networking allows these organizations to operate more efficiently.

Top management at Upper Limits, Inc. looks to encourage communication between different departments to stop employees from becoming narrow specialists. The best way to reach these goals is to departmentalize Upper Limit's organization by function.

Most companies are no longer self-sufficient or self-contained.

Outsourcing involves assigning various functions to outside organizations.

Cross-functional teams serve as advisory committees offering their expertise to line decision makers.

Small business organizations lack the size required to reap the benefits of labor specialization.

A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of production, and two design engineers.

Bass Clef Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that Bass Clef departmentalizes by

Competitive benchmarking compares a company's practices, processes, and products against others in its industry, with the goal of doing it better than the competition.

The driving force behind the change in business organizations is the change in consumer expectations.

Which of the following describes a group of employees from different departments working together on a long-term basis?

Economies of scale

On Air Studios organizes its jobs by activity, such as production, marketing, accounting, and finance. On Air Studios applies ________ departmentalization in order to maximize their efficiency.

Weber was a strong proponent of bureaucracy.

Digital natives, those who grew up with the Internet and other devices, are an important customer group that most businesses want to reach.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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