Question 1

External control is based on the use of three control systems.List and explain two of these three control systems.

Accepted Answer

They are bureaucratic,clan,and market controls systems.
Bureaucratic control influences behaviour through authority,policies,procedures,job descriptions,budgets,and day-to-day supervision.Another level of bureaucratic control comes from the organization's external environment.Here,laws and regulations may govern behaviour of an organization's top executives.The best example is the U.S.Sarbanes-Oxley SOX)Act,which establishes procedures to regulate financial reporting and governance in corporations that publicly trade in the United States,including those in Canada listed on U.S.exchanges.
Clan control influences behaviour through norms and expectations set by the organizational culture.The shared informality and ebullient attitudes of WestJet flight crews,for example,show the power of clan control as a critical benchmark of the airline.
Market control is essentially the influence of market competition on the behaviour of organizations and their members.A good example is the growing emphasis on "green" products and practices.When a firm like Walmart starts to get positive publicity from its expressed commitment to eventually power all of its stores with renewable energy,for example,the effect is felt by its competitors.They have to adjust their practices in order to avoid giving up the public relations advantage to Walmart.

Question 2

The goal of an opportunity situation is to increase or to continue the high level of accomplishment in the future.

Accepted Answer

A) True 
 B)False  True

Question 3

Internal control occurs when __________.

Accepted Answer

A) Motivated individuals and groups are directly supervised. 
B) Computers are used to monitor performance inside the organization. 
C) Motivated individuals and groups exercise self-discipline in fulfilling job requirements. 
D) Managers take responsibility for the activities in their own departments. 
E) Motivated managers defend the organization against outside competitive attacks. 
A) Motivated individuals and groups are directly supervised. 
B) Computers are used to monitor performance inside the organization. 
C) Motivated individuals and groups exercise self-discipline in fulfilling job requirements. 
D) Managers take responsibility for the activities in their own departments. 
E) Motivated managers defend the organization against outside competitive attacks. C

Question 4

Stacey was asked to provide her manager with an estimate of how efficient the firm is using its assets.Therefore,Stacey calculated an)__________ ratio called total asset turnover.

Accepted Answer

A) leverage 
B) activity 
C) profitability 
D) liquidity 
E) asset management 
A) leverage 
B) activity 
C) profitability 
D) liquidity 
E) asset management

Question 5

Under management by exception,corrective action is reserved for situations showing the greatest need for action.

Accepted Answer

A) True 
 B)False

Question 6

Clan control represents the power of collective identity.

Accepted Answer

A) True 
 B)False

Question 7

In utilizing an engineering approach to compare desired and actual performance,a manager will __________.

Accepted Answer

A) Use past performance as a benchmark. 
B) Use present performance to set the standard. 
C) Use standards set scientifically through such methods as time and motion studies. 
D) Use performance achievements of other people,work units,or organizations to set the standard. 
E) Use the organization's objectives to set the standard. 
A) Use past performance as a benchmark. 
B) Use present performance to set the standard. 
C) Use standards set scientifically through such methods as time and motion studies. 
D) Use performance achievements of other people,work units,or organizations to set the standard. 
E) Use the organization's objectives to set the standard.

Question 8

Management by exception is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest.

Accepted Answer

A) True 
 B)False

Question 9

Suppose that,in reviewing a quarterly report of a department's achievements,the manager compares desired performance with actual performance.If the manager finds no deviation that is,actual performance is EQUAL to the standard),the manager should __________.

Accepted Answer

A) Take no corrective action. 
B) Take corrective action because the standard was too easy. 
C) Take action to understand why the standard was not exceeded. 
D) Seek more resources for the department. 
E) Keep the information to himself/herself. 
A) Take no corrective action. 
B) Take corrective action because the standard was too easy. 
C) Take action to understand why the standard was not exceeded. 
D) Seek more resources for the department. 
E) Keep the information to himself/herself.

Question 10

Controls that focus on end results and provide information that can be used for future planning are called __________controls.

Accepted Answer

A) Concurrent. 
B) Steering. 
C) Posterior. 
D) Feedback. 
E) End-result. 
A) Concurrent. 
B) Steering. 
C) Posterior. 
D) Feedback. 
E) End-result.

Question 11

__________ standards measure effort in terms of the amount work expended in task performance.

Accepted Answer

A) Output. 
B) Input. 
C) Cybernetic. 
D) Critical performance. 
E) Personal performance. 
A) Output. 
B) Input. 
C) Cybernetic. 
D) Critical performance. 
E) Personal performance.

Question 12

Which of the following statements is accurate?

Accepted Answer

A) Feedforward controls are also called preliminary controls. 
B) Concurrent controls are also called post-action controls. 
C) Feedback controls are also called preliminary controls. 
D) Preliminary controls are also called concurrent controls. 
E) Post-action controls are also called feedback controls. 
A) Feedforward controls are also called preliminary controls. 
B) Concurrent controls are also called post-action controls. 
C) Feedback controls are also called preliminary controls. 
D) Preliminary controls are also called concurrent controls. 
E) Post-action controls are also called feedback controls.

Question 13

The Debt ratio is expressed as:

Accepted Answer

A) Current assets divided by current liabilities 
B) Sales/Total Assets 
C) Total debts divided by total assets 
D) Sales minus liabilities 
E) Effort/Time expended 
A) Current assets divided by current liabilities 
B) Sales/Total Assets 
C) Total debts divided by total assets 
D) Sales minus liabilities 
E) Effort/Time expended

Question 14

Budgets do not provide points of control.They are merely estimates of expenses.

Accepted Answer

A) True 
 B)False

Question 15

Effective planning by managers helps accomplish which step in the control process?

Accepted Answer

A) Measuring actual performance. 
B) Comparing actual performance with objectives and standards. 
C) Establishing performance objectives and standards. 
D) Taking necessary corrective action. 
E) Evaluating the results of corrective action. 
A) Measuring actual performance. 
B) Comparing actual performance with objectives and standards. 
C) Establishing performance objectives and standards. 
D) Taking necessary corrective action. 
E) Evaluating the results of corrective action.

Question 16

Leverage ratios measure a firm's use of equity for capitalization.

Accepted Answer

A) True 
 B)False

Question 17

The practice of giving priority attention to situations showing the greatest need for action is called management by opportunity.

Accepted Answer

A) True 
 B)False

Question 18

Inventory turnover is one method for determining the company's financial liquidity.

Accepted Answer

A) True 
 B)False

Question 19

Dealing with an identified need can point toward performance threat or deficiency - when actual performance is more than desired.

Accepted Answer

A) True 
 B)False

Question 20

A firm's analysis of financial performance is an important aspect of managerial control.

Accepted Answer

A) True 
 B)False

External control is based on the use of three control systems.List and explain two of these three control systems.

The goal of an opportunity situation is to increase or to continue the high level of accomplishment in the future.

Internal control occurs when __________.

Stacey was asked to provide her manager with an estimate of how efficient the firm is using its assets.Therefore,Stacey calculated an)__________ ratio called total asset turnover.

Under management by exception,corrective action is reserved for situations showing the greatest need for action.

Clan control represents the power of collective identity.

In utilizing an engineering approach to compare desired and actual performance,a manager will __________.

Management by exception is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest.

Suppose that,in reviewing a quarterly report of a department's achievements,the manager compares desired performance with actual performance.If the manager finds no deviation that is,actual performance is EQUAL to the standard),the manager should __________.

Controls that focus on end results and provide information that can be used for future planning are called __________controls.

__________ standards measure effort in terms of the amount work expended in task performance.

Which of the following statements is accurate?

The Debt ratio is expressed as:

Budgets do not provide points of control.They are merely estimates of expenses.

Effective planning by managers helps accomplish which step in the control process?

Leverage ratios measure a firm's use of equity for capitalization.

The practice of giving priority attention to situations showing the greatest need for action is called management by opportunity.

Inventory turnover is one method for determining the company's financial liquidity.

Dealing with an identified need can point toward performance threat or deficiency - when actual performance is more than desired.

A firm's analysis of financial performance is an important aspect of managerial control.

Intro to Management

Management Learning Past to Present

Global Dimensions of Management

Ethics, Social Responsibility and Sustainability

Managing Entrepreneurship and Small Business

Planning and Techniques

Strategy and Strategic Management

Organizational Structure and Design

Innovation and Organizational Change

HRM: Building a Winning Culture

Leadership and Communication

Individual Behaviour

Information and Decision-Making

Motivation

Teams

Operations and Services Management

Filters

Exam 16: Control

External control is based on the use of three control systems.List and explain two of these three control systems.

The goal of an opportunity situation is to increase or to continue the high level of accomplishment in the future.

Internal control occurs when __________.

Stacey was asked to provide her manager with an estimate of how efficient the firm is using its assets.Therefore,Stacey calculated an)__________ ratio called total asset turnover.

Under management by exception,corrective action is reserved for situations showing the greatest need for action.

Clan control represents the power of collective identity.

In utilizing an engineering approach to compare desired and actual performance,a manager will __________.

Management by exception is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest.

Suppose that,in reviewing a quarterly report of a department's achievements,the manager compares desired performance with actual performance.If the manager finds no deviation that is,actual performance is EQUAL to the standard),the manager should __________.

Controls that focus on end results and provide information that can be used for future planning are called __________controls.

__________ standards measure effort in terms of the amount work expended in task performance.

Which of the following statements is accurate?

The Debt ratio is expressed as:

Budgets do not provide points of control.They are merely estimates of expenses.

Effective planning by managers helps accomplish which step in the control process?

Leverage ratios measure a firm's use of equity for capitalization.

The practice of giving priority attention to situations showing the greatest need for action is called management by opportunity.

Inventory turnover is one method for determining the company's financial liquidity.

Dealing with an identified need can point toward performance threat or deficiency - when actual performance is more than desired.

A firm's analysis of financial performance is an important aspect of managerial control.

Intro to Management

Management Learning Past to Present

Global Dimensions of Management

Ethics, Social Responsibility and Sustainability

Managing Entrepreneurship and Small Business

Planning and Techniques

Strategy and Strategic Management

Organizational Structure and Design

Innovation and Organizational Change

HRM: Building a Winning Culture

Leadership and Communication

Individual Behaviour

Information and Decision-Making

Motivation

Teams

Operations and Services Management

Filters