Exam 8: Control, Change, and Entrepreneurship

The financial ratio that indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory is the _____________ ratio.

The process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals is known as ___________.

Control by means of a comprehensive system of rules and standard operating procedures that shape and regulate the behavior of divisions,functions,and individuals is known as bureaucratic control.

Financial information by itself provides managers with all of the information that they need to measure the four building blocks of competitive advantage.

When an organization has a culture that leads to values and norms that fail to motivate or inspire employees,which eventually leads to stagnation and often failure over time,that company has a(n)_____________ culture.

The "objectivity" of financial measures of performance is a main reason why managers use these ratios to measure the efficiency and effectiveness of their organizations.

Define entrepreneurs and intrapreneurs.

Profit ratios measure the efficiency of the use of the organization's resources in generating profits.

The control system that is typically used in a garment plant to solve problems like substandard inputs,broken machine parts,or a worker's skill deficiency to produce a particular type of garment is _____________ control.

The times-covered ratio of an organization is determined by current assets divided by current liabilities.

Direct supervision is one of the best ways for managers to monitor the behavior of subordinates,but this method of behavior control can create problems with subordinates.Discuss the problems that can occur for mangers when working with subordinates.

The three main mechanisms that managers use to assess output or performance are financial measures,organizational goals,and operating budgets.

Calculate the return on investment from the information given below. Net Income = $18,000;Advertising Expenses = $220,000;Total Liabilities = $120,000;Total Assets = $160,000;Gross Margin = $80,000;Taxes Paid = $2,000

During the input stage,the most common type of control procedure is concurrent control,which gives managers immediate feedback.

Managers at Zeppel Construction Company set up a stringent job interview process by which management applicants are carefully screened at different levels of the organization before they are hired,attempting to increase the chance that newly hired managers will have the knowledge and skills they need to be successful within the organization.By using this process,Zeppel is using _____________ control.

A mechanism of control utilized in organizational culture is ___________.

Beswick Widget Ltd. ,sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales.With this system,Beswick is using _____________ control.

Hanover Insurance set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time.By using this system,Hanover is utilizing _____________ control.

The manager of Inkman,a convenience store,keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store.This is an example of _____________ control.

Information on how efficiently managers are collecting revenue from customers to pay expenses is given by the quick ratio.