Question 1

Effective managers make sure that activities are going as planned with the help of control.

Accepted Answer

A) True 
 B)False  True

Question 2

The downside of establishing performance targets and standards is that they may not be supported by other elements of the control system.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following statements is true regarding Six Sigma?

Accepted Answer

A)  The system was developed by General Electric. 
B)  It is designed to choose the correct organizational process for a job. 
C)  The lower the sigma number, the lower the level of defects. 
D)  It indicates how often defects in a process are likely to occur. 
E)  It always improves the bottom line. 
A)  The system was developed by General Electric. 
B)  It is designed to choose the correct organizational process for a job. 
C)  The lower the sigma number, the lower the level of defects. 
D)  It indicates how often defects in a process are likely to occur. 
E)  It always improves the bottom line. D

Question 4

Carlos noticed a pattern at the annual budgeting session of his company. Mid-level managers were asking for unrealistically high budgets while top management was attempting to limit budgets under last year's actual expenditures. The management's strategies are referred to as:

Accepted Answer

A)  budget breakdowns. 
B)  bureaucratic budgeting. 
C)  budget resistance. 
D)  tactical behaviors. 
E)  rigid behaviors. 
A)  budget breakdowns. 
B)  bureaucratic budgeting. 
C)  budget resistance. 
D)  tactical behaviors. 
E)  rigid behaviors.

Question 5

_____ refers to the situation when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations.

Accepted Answer

A)  Return on investment 
B)  Management audit 
C)  Balanced scorecard 
D)  Management myopia 
E)  Provincialism 
A)  Return on investment 
B)  Management audit 
C)  Balanced scorecard 
D)  Management myopia 
E)  Provincialism

Question 6

_____ involves creating relationships built on mutual respect and encouraging each individual to take responsibility for his or her actions.

Accepted Answer

A)  Empowerment 
B)  Authority control 
C)  Bureaucratic control 
D)  Cultural control 
E)  Clan control 
A)  Empowerment 
B)  Authority control 
C)  Bureaucratic control 
D)  Cultural control 
E)  Clan control

Question 7

Some means of control are necessary because once managers form plans and strategies, they must ensure that the plans are carried out.

Accepted Answer

A) True 
 B)False

Question 8

External audits provide essential feedback control when they identify legal and ethical lapses that could harm the organization and its reputation.

Accepted Answer

A) True 
 B)False

Question 9

_____ is the process of comparing a firm's practices and technologies with those of other organizations.

Accepted Answer

A)  Benchmarking 
B)  Budgeting 
C)  Six Sigma 
D)  Management audit 
E)  Feedforward control 
A)  Benchmarking 
B)  Budgeting 
C)  Six Sigma 
D)  Management audit 
E)  Feedforward control

Question 10

Relying exclusively on financial ratios is effective because they provide performance standards and indicators of what has occurred.

Accepted Answer

A) True 
 B)False

Question 11

_____ control includes items such as budgets, statistical reports, and performance appraisals to regulate behavior and results.

Accepted Answer

A)  Clan 
B)  Market 
C)  Bureaucratic 
D)  Concurrent 
E)  Feedforward 
A)  Clan 
B)  Market 
C)  Bureaucratic 
D)  Concurrent 
E)  Feedforward

Question 12

In feedforward control, a manager waits for results and compares them with goals.

Accepted Answer

A) True 
 B)False

Question 13

The activity-based costing method allocates costs across business processes and provides a more accurate picture of how costs should be charged to products and services.

Accepted Answer

A) True 
 B)False

Question 14

Control based on the norms, values, shared goals, and trust among group members is referred to as:

Accepted Answer

A)  clan control. 
B)  feedback control. 
C)  concurrent control. 
D)  feedforward control. 
E)  market control. 
A)  clan control. 
B)  feedback control. 
C)  concurrent control. 
D)  feedforward control. 
E)  market control.

Question 15

An effective approach for checking an enterprise's overall performance is to use key financial ratios.

Accepted Answer

A) True 
 B)False

Question 16

A company is said to lack _____ when there is an absence of policies and a lack of periodic reviews.

Accepted Answer

A)  corporate social responsibility 
B)  economies of scale 
C)  environmental uncertainty 
D)  control 
E)  switching costs 
A)  corporate social responsibility 
B)  economies of scale 
C)  environmental uncertainty 
D)  control 
E)  switching costs

Question 17

Jane, an employee, received an e-mail from an angry client about a certain product. Although it was not Jane's fault, she hesitated to report it to her manager because she knew that she would be blamed for it and could even be fired. Based on this scenario, which of the following is true of Jane's company?

Accepted Answer

A)  The firm's expectations are not established in writing. 
B)  Employees are unclear about what needs to be achieved. 
C)  "Shoot the messenger" management exists, implying a lack of control. 
D)  Reviews are not held periodically. 
E)  Key data are not measured and reported in a timely manner. 
A)  The firm's expectations are not established in writing. 
B)  Employees are unclear about what needs to be achieved. 
C)  "Shoot the messenger" management exists, implying a lack of control. 
D)  Reviews are not held periodically. 
E)  Key data are not measured and reported in a timely manner.

Question 18

The _____ states that control is enhanced by concentrating on the exceptions to, or significant deviations from, the expected result or standard.

Accepted Answer

A)  return on investment 
B)  audit 
C)  myopia 
D)  principle of exception 
E)  debt-equity ratio 
A)  return on investment 
B)  audit 
C)  myopia 
D)  principle of exception 
E)  debt-equity ratio

Question 19

Budgetary control is the process of finding out what's being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences.

Accepted Answer

A) True 
 B)False

Question 20

Which type of bureaucratic control takes place while plans are being carried out?

Accepted Answer

A)  Feedback control 
B)  Specialist control 
C)  Preliminary control 
D)  Feedforward control 
E)  Concurrent control 
A)  Feedback control 
B)  Specialist control 
C)  Preliminary control 
D)  Feedforward control 
E)  Concurrent control

Effective managers make sure that activities are going as planned with the help of control.

The downside of establishing performance targets and standards is that they may not be supported by other elements of the control system.

Which of the following statements is true regarding Six Sigma?

Carlos noticed a pattern at the annual budgeting session of his company. Mid-level managers were asking for unrealistically high budgets while top management was attempting to limit budgets under last year's actual expenditures. The management's strategies are referred to as:

_____ refers to the situation when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations.

_____ involves creating relationships built on mutual respect and encouraging each individual to take responsibility for his or her actions.

Some means of control are necessary because once managers form plans and strategies, they must ensure that the plans are carried out.

External audits provide essential feedback control when they identify legal and ethical lapses that could harm the organization and its reputation.

_____ is the process of comparing a firm's practices and technologies with those of other organizations.

Relying exclusively on financial ratios is effective because they provide performance standards and indicators of what has occurred.

_____ control includes items such as budgets, statistical reports, and performance appraisals to regulate behavior and results.

In feedforward control, a manager waits for results and compares them with goals.

The activity-based costing method allocates costs across business processes and provides a more accurate picture of how costs should be charged to products and services.

Control based on the norms, values, shared goals, and trust among group members is referred to as:

An effective approach for checking an enterprise's overall performance is to use key financial ratios.

A company is said to lack _____ when there is an absence of policies and a lack of periodic reviews.

The _____ states that control is enhanced by concentrating on the exceptions to, or significant deviations from, the expected result or standard.

Budgetary control is the process of finding out what's being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences.

Which type of bureaucratic control takes place while plans are being carried out?

Managing in a Global World

The Evolution of Management

The Organizational Environment and Culture

Ethics and Corporate Responsibility

Planning and Decision Making

Entrepreneurship

Organizing for Success

Managing Human Resources

Managing Diversity and Inclusion

Leadership

Motivating People

Teamwork

Communicating

Innovating and Changing

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Exam 14: Managing Control

Effective managers make sure that activities are going as planned with the help of control.

The downside of establishing performance targets and standards is that they may not be supported by other elements of the control system.

Which of the following statements is true regarding Six Sigma?

Carlos noticed a pattern at the annual budgeting session of his company. Mid-level managers were asking for unrealistically high budgets while top management was attempting to limit budgets under last year's actual expenditures. The management's strategies are referred to as:

_____ refers to the situation when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations.

_____ involves creating relationships built on mutual respect and encouraging each individual to take responsibility for his or her actions.

Some means of control are necessary because once managers form plans and strategies, they must ensure that the plans are carried out.

External audits provide essential feedback control when they identify legal and ethical lapses that could harm the organization and its reputation.

_____ is the process of comparing a firm's practices and technologies with those of other organizations.

Relying exclusively on financial ratios is effective because they provide performance standards and indicators of what has occurred.

_____ control includes items such as budgets, statistical reports, and performance appraisals to regulate behavior and results.

In feedforward control, a manager waits for results and compares them with goals.

The activity-based costing method allocates costs across business processes and provides a more accurate picture of how costs should be charged to products and services.

Control based on the norms, values, shared goals, and trust among group members is referred to as:

An effective approach for checking an enterprise's overall performance is to use key financial ratios.

A company is said to lack _____ when there is an absence of policies and a lack of periodic reviews.

The _____ states that control is enhanced by concentrating on the exceptions to, or significant deviations from, the expected result or standard.

Budgetary control is the process of finding out what's being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences.

Which type of bureaucratic control takes place while plans are being carried out?

Managing in a Global World

The Evolution of Management

The Organizational Environment and Culture

Ethics and Corporate Responsibility

Planning and Decision Making

Entrepreneurship

Organizing for Success

Managing Human Resources

Managing Diversity and Inclusion

Leadership

Motivating People

Teamwork

Communicating

Innovating and Changing

Filters