Question 1

How does clan control differ from bureaucratic control and market control?

Accepted Answer

A) Clan control uses formal controls more often than market control and bureaucratic control do. 
B) Clan control does not assume that the interests of the organization and individuals naturally diverge. 
C) Clan control is based on past performance,whereas the other two try to influence future performance. 
D) Clan control is based on a more negative view of human character than the other two are. 
E) Clan control is more heavily based on economic factors than market control and bureaucratic control are. 
A) Clan control uses formal controls more often than market control and bureaucratic control do. 
B) Clan control does not assume that the interests of the organization and individuals naturally diverge. 
C) Clan control is based on past performance,whereas the other two try to influence future performance. 
D) Clan control is based on a more negative view of human character than the other two are. 
E) Clan control is more heavily based on economic factors than market control and bureaucratic control are. B

Question 2

An important purpose of external audits is to

Accepted Answer

A) assess what a company has done for itself. 
B) evaluate production efficiency. 
C) evaluate sales effectiveness. 
D) investigate possible targets for mergers or acquisitions. 
E) assess what a company has done for its customers. 
A) assess what a company has done for itself. 
B) evaluate production efficiency. 
C) evaluate sales effectiveness. 
D) investigate possible targets for mergers or acquisitions. 
E) assess what a company has done for its customers. D

Question 3

Which of the following can be drawn tentatively and used as a goal against which actual performance can be measured?

Accepted Answer

A) statements of cash flow 
B) profit and loss statements 
C) balance sheets 
D) external audits 
E) capital budgets 
A) statements of cash flow 
B) profit and loss statements 
C) balance sheets 
D) external audits 
E) capital budgets B

Question 4

The increasing need for clan control is caused by the

Accepted Answer

A) changes in the employment relationship. 
B) unchanging nature of management. 
C) changes in the economic environment. 
D) changes in government regulations. 
E) unchanging nature of employees' jobs. 
A) changes in the employment relationship. 
B) unchanging nature of management. 
C) changes in the economic environment. 
D) changes in government regulations. 
E) unchanging nature of employees' jobs.

Question 5

Which of the following is not periodically assessed as an essential part of a company's internal audits?

Accepted Answer

A) planning 
B) organizing 
C) leading 
D) controlling efforts 
E) competing against rivals 
A) planning 
B) organizing 
C) leading 
D) controlling efforts 
E) competing against rivals

Question 6

In contrast to bureaucratic controls,market controls involve the use of

Accepted Answer

A) rules and regulations. 
B) economic forces. 
C) authority. 
D) autocratic power. 
E) norms. 
A) rules and regulations. 
B) economic forces. 
C) authority. 
D) autocratic power. 
E) norms.

Question 7

Three key categories of financial ratios are liquidity,leverage,and profitability.

Accepted Answer

A) True 
 B)False

Question 8

The control process used while plans are being carried out,including directing,monitoring,and fine-tuning activities as they are performed,is referred to as ________ control.

Accepted Answer

A) feedforward 
B) concurrent 
C) feedback 
D) preliminary 
E) market 
A) feedforward 
B) concurrent 
C) feedback 
D) preliminary 
E) market

Question 9

What is the last step in the control process?

Accepted Answer

A) measuring performance based on standards 
B) defining what constitutes performance 
C) setting performance standards 
D) taking action to correct problems and reinforce successes 
E) comparing performance to the standards and determining deviations 
A) measuring performance based on standards 
B) defining what constitutes performance 
C) setting performance standards 
D) taking action to correct problems and reinforce successes 
E) comparing performance to the standards and determining deviations

Question 10

Kartik's company is about to start manufacturing a new product.Before beginning operations,Kartik and several other managers develop procedures to ensure that the planned activities are carried out properly.This is an example of ________ control.

Accepted Answer

A) feedforward 
B) concurrent 
C) clan 
D) market 
E) reactive 
A) feedforward 
B) concurrent 
C) clan 
D) market 
E) reactive

Question 11

Describe at least four different types of budgets that are frequently used.

Accepted Answer

Student answers will vary,but should dem

Question 12

Discuss the downside of bureaucratic control and describe an example of rigid bureaucratic behavior.

Accepted Answer

Student answers and examples will vary b

Question 13

Empowerment is important in organizations today because

Accepted Answer

A) the nature of management has changed. 
B) employees' jobs have become less challenging. 
C) employees are more concerned about pay. 
D) labor unions are growing. 
E) technology plays an increasingly large role. 
A) the nature of management has changed. 
B) employees' jobs have become less challenging. 
C) employees are more concerned about pay. 
D) labor unions are growing. 
E) technology plays an increasingly large role.

Question 14

________ control involves creating relationships based on mutual respect and encouraging each individual to take responsibility for his or her actions.

Accepted Answer

A) Autocratic 
B) Centralized 
C) Bureaucratic 
D) Cultural 
E) Clan 
A) Autocratic 
B) Centralized 
C) Bureaucratic 
D) Cultural 
E) Clan

Question 15

Alvita works for a company that extracts minerals from the ground.Her new CEO wants to be sure the company can keep extracting minerals and continue to work with landowners to get mineral rights for many years.The CEO asks Alvita to audit how the likely the company will be able to sustain its operations long-term.What should Alvita keep in mind while conducting this audit?

Accepted Answer

A) She needs to realize she is subject to more regulation than if she were conducting a financial audit. 
B) She will need to report her results in the same format as any other audit. 
C) She should consider company profits,the local people,and the local environment. 
D) She can ignore financial and profitability data for the purposes of this audit. 
E) She should do what pleases the local landowners,even if it is not profitable. 
A) She needs to realize she is subject to more regulation than if she were conducting a financial audit. 
B) She will need to report her results in the same format as any other audit. 
C) She should consider company profits,the local people,and the local environment. 
D) She can ignore financial and profitability data for the purposes of this audit. 
E) She should do what pleases the local landowners,even if it is not profitable.

Question 16

Which of the following is the second major step in a typical control system?

Accepted Answer

A) measuring performance 
B) setting performance standards 
C) developing values 
D) comparing performance with standards 
E) determining deviations 
A) measuring performance 
B) setting performance standards 
C) developing values 
D) comparing performance with standards 
E) determining deviations

Question 17

Scenario C: Adirondack Accounting Associates is an organization that has undergone a dramatic transformation over the last few years.Earlier,employees were managed using a wide array of rules,regulations,and procedures.Offending employees were punished for their violations.Today,under the leadership of the new CEO,Agatha,employees are encouraged to make decisions and come up with innovative solutions to problems they encounter.Most employees are much more satisfied under the new arrangement.The group is much more cohesive and is committed not only to the overall success of the organization but also to its standards and reputation.Despite the improved employee morale under Agatha,the other top managers have expressed a strong desire to reign in what they see as excessive employee freedoms and institute more formalized rules.Meanwhile,the middle managers have expressed their desire to base operations on costs and prices,and outsource certain tasks if it is more profitable.Agatha discusses the issue with an outside consultant,who recommends that the company focus on creating a strong culture with values that all employees accept and understand.
-On which of the following control systems do the middle-level managers want to focus?

Accepted Answer

A) clan 
B) market 
C) bureaucratic 
D) concurrent 
E) feedforward 
A) clan 
B) market 
C) bureaucratic 
D) concurrent 
E) feedforward

Question 18

The debt-equity ratio is an example of a ________ ratio.

Accepted Answer

A) net working capital 
B) profitability 
C) leverage 
D) current 
E) liquidity 
A) net working capital 
B) profitability 
C) leverage 
D) current 
E) liquidity

Question 19

A ________ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated as investments instead of as regular expenses.

Accepted Answer

A) master 
B) cash 
C) capital 
D) production 
E) sales 
A) master 
B) cash 
C) capital 
D) production 
E) sales

Question 20

Explain the processes of internal and external audits.

Accepted Answer

Management audits evaluate the effective

How does clan control differ from bureaucratic control and market control?

An important purpose of external audits is to

Which of the following can be drawn tentatively and used as a goal against which actual performance can be measured?

The increasing need for clan control is caused by the

Which of the following is not periodically assessed as an essential part of a company's internal audits?

In contrast to bureaucratic controls,market controls involve the use of

Three key categories of financial ratios are liquidity,leverage,and profitability.

The control process used while plans are being carried out,including directing,monitoring,and fine-tuning activities as they are performed,is referred to as ________ control.

What is the last step in the control process?

Kartik's company is about to start manufacturing a new product.Before beginning operations,Kartik and several other managers develop procedures to ensure that the planned activities are carried out properly.This is an example of ________ control.

Describe at least four different types of budgets that are frequently used.

Discuss the downside of bureaucratic control and describe an example of rigid bureaucratic behavior.

Empowerment is important in organizations today because

________ control involves creating relationships based on mutual respect and encouraging each individual to take responsibility for his or her actions.

Which of the following is the second major step in a typical control system?

The debt-equity ratio is an example of a ________ ratio.

A ________ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated as investments instead of as regular expenses.

Explain the processes of internal and external audits.

Managing and Performing

The External and Internal Environments

Managerial Decision Making

Planning and Strategic Management

Ethics, corporate Responsibility, and Sustainability

International Management

Entrepreneurship

Organization Structure

Organizational Agility

Human Resources Management

Managing the Diverse Workforce

Leadership

Motivating for Performance

Teamwork

Communicating

Managing Technology and Innovation

Creating and Leading Change

Filters

Exam 16: Managerial Control

How does clan control differ from bureaucratic control and market control?

An important purpose of external audits is to

Which of the following can be drawn tentatively and used as a goal against which actual performance can be measured?

The increasing need for clan control is caused by the

Which of the following is not periodically assessed as an essential part of a company's internal audits?

In contrast to bureaucratic controls,market controls involve the use of

Three key categories of financial ratios are liquidity,leverage,and profitability.

The control process used while plans are being carried out,including directing,monitoring,and fine-tuning activities as they are performed,is referred to as ________ control.

What is the last step in the control process?

Kartik's company is about to start manufacturing a new product.Before beginning operations,Kartik and several other managers develop procedures to ensure that the planned activities are carried out properly.This is an example of ________ control.

Describe at least four different types of budgets that are frequently used.

Discuss the downside of bureaucratic control and describe an example of rigid bureaucratic behavior.

Empowerment is important in organizations today because

________ control involves creating relationships based on mutual respect and encouraging each individual to take responsibility for his or her actions.

Which of the following is the second major step in a typical control system?

The debt-equity ratio is an example of a ________ ratio.

A ________ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated as investments instead of as regular expenses.

Explain the processes of internal and external audits.

Managing and Performing

The External and Internal Environments

Managerial Decision Making

Planning and Strategic Management

Ethics, corporate Responsibility, and Sustainability

International Management

Entrepreneurship

Organization Structure

Organizational Agility

Human Resources Management

Managing the Diverse Workforce

Leadership

Motivating for Performance

Teamwork

Communicating

Managing Technology and Innovation

Creating and Leading Change

Filters