Deck 6: Managing the Business Enterprise

Question 1

Which of the following best captures the difference between efficiency and effectiveness?

A) Efficiency means doing what the company's engineers want, while effectiveness means doing what consumers want.
B) Efficiency means maximizing output, while effectiveness means maximizing profit.
C) Efficiency means doing things right, while effectiveness means doing the right things.
D) Efficiency means doing what production wants, while effectiveness means doing what marketing wants.
E) Efficiency means working as fast as possible without regard to product quality, while effectiveness means working more carefully and paying attention to quality.

Answer 1

C

Question 2

Scott, the manager of a Computers R Us store, in reviewing the sales results from last week noticed that all but one employee was on target. As he contemplated how to fix the problem, he was engaged in the management process of

A) controlling.
B) organizing.
C) planning.
D) directing.
E) staffing.

Answer 2

A

Question 3

The management process which involves interactions between managers and their subordinates is

A) leading.
B) planning.
C) controlling.
D) organizing the jobs.
E) decision making.

Answer 3

A

Question 4

The first step in the control process is to

A) establish standards.
B) determine the jobs to be performed.
C) determine what the organization needs to do.
D) measure performance.
E) define the problem.

Question 5

Managers at Edson Corp. have decided to embark on a systematic planning process. What should they do first?

A) Determine how well employees understand the current plan
B) Establish goals for the organization
C) Determine whether a gap exists between the company's desired and actual position
D) Develop plans to achieve the desired goal
E) Implement new plans

Question 6

Guiding and motivating employees to meet an organization's objectives is called

A) controlling.
B) planning.
C) organizing.
D) leading.
E) staffing.

Question 7

Determining what a firm needs to do and how best to accomplish that is called

A) controlling.
B) staffing.
C) directing.
D) planning.
E) organizing.

Question 8

When Millie was appointed president of Goodcare Hospital, she noticed that the former president had all the major functions reporting directly to him. She is analyzing the functions to see how they could be restructured to be more efficient. She is engaged in the management process of

A) planning.
B) staffing.
C) organizing.
D) directing.
E) controlling.

Question 9

The president of Bob's Barbecue is reassessing his company's goals with the expectation that the company strategy will be modified. He is involved in

A) staffing.
B) planning.
C) directing.
D) organizing.
E) controlling.

Question 10

The purpose of the four-part management process is to

A) determine what the organization needs to do.
B) create jobs for society.
C) monitor the organization's performance in order to ensure that goals are achieved.
D) increase employee satisfaction.
E) achieve the organization's goals of supplying various products and services to society.

Question 11

Top managers at Cortland are involved in the planning process, and they have just finished setting goals for the company. What should they do next?

A) Develop plans to achieve the goals
B) Determine whether a gap exists between the company's current situation and its desired situation
C) Assess the effectiveness of the plan before proceeding further
D) Implement the plans that are necessary to reach the goals that have been set
E) None of these

Question 12

When the CEO of Compaq Computers broke the company down into several smaller units, each responsible for its own functions, he was engaging in the management function of

A) organizing.
B) staffing.
C) planning.
D) controlling.
E) directing.

Question 13

Steve motivates employees by rewarding them with additional vacation time when standards are achieved. Steve is involved in the management function of

A) leading.
B) controlling.
C) planning.
D) organizing.
E) It is not possible to tell with the information provided.

Question 14

Scott is the store manager at one of the Computers R Us retail stores. Each Monday he meets with all the employees to review the assignments for the week and provide assistance for those who need it. Scott is engaged in the management process of

A) planning.
B) organizing.
C) controlling.
D) staffing.
E) leading.

Question 15

Which of the following are managers?

A) President of IBM
B) Prime minister of Canada
C) Head of the business department at a local college
D) Shipping dock foreman
E) All of these are managers.

Question 16

Cheryl is a newly appointed manager. She wants to do a good job with regard to the controlling function of management. In terms of the control process, what is the first thing she should do?

A) Adjust the standards
B) Continue with current activities
C) Compare performance with standards
D) Establish standards
E) Measure employee performance

Question 17

Doreen has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of what function of the management process?

A) Planning
B) Organizing
C) Leading
D) Controlling
E) Budgeting

Question 18

Lenore is heading up a planning team at her company. The team has just completed the job of developing plans to reach the company's goals. What should they do next?

A) Set new corporate goals
B) Determine whether a gap exists between the company's current situation and its desired situation
C) Assess the effectiveness of the plan before proceeding further
D) Implement the plan that has been developed
E) None of these

Question 19

Determining the jobs to be performed and how best to arrange the jobs into a logical system is known as

A) controlling.
B) decision making.
C) management.
D) entrepreneurship.
E) organizing.

Question 20

Organizing involves

A) developing an efficient plan for the use of time.
B) developing an organizational chart.
C) determining who reports to whom and what each employee does.
D) structuring the necessary resources to complete a particular task.
E) determining how best to use available material resources.

Question 21

Rachelle is one of the managers responsible for hiring, training, evaluation, and compensation of employees. She is a(n) ________ manager.

A) research and development
B) operations
C) financial
D) human resource
E) information

Question 22

________ managers are responsible for a company's system for creating goods and services, while ________ managers are responsible for the development, pricing, promotion, and distribution of products and services.

A) Marketing; production
B) Production; marketing
C) Financial; production
D) Human resource; marketing
E) Information; marketing

Question 23

Ronald Koslowsky, a marketing manager at Wintron Co., receives a telephone call from LeRoy Shelton, a marketing manager at Young-Times Inc. The two chat socially, occasionally talking about different parts of their work. This is an example of a manager operating in Mintzberg's ________ role.

A) disseminator
B) spokesperson
C) liaison
D) negotiator
E) resource allocator

Question 24

With respect to the concepts of management roles and management functions, it is correct to say that

A) focusing on management functions is a more effective way to view management than focusing on management roles.
B) the idea of management roles is more relevant for private sector companies, and the idea of management functions is more relevant for government organizations.
C) managers who focus on roles have more highly satisfied subordinates than managers who focus on functions.
D) management functions give us a good general idea of what managers do, while management roles give us an understanding of the specific details of managerial work.
E) all of these are correct.

Question 25

When a manager responds to a strike at a supplier, the manager is acting in the ________ role.

A) disturbance handler
B) liaison
C) monitor
D) resource allocator
E) leader

Question 26

Middle managers can typically have any of the following job titles except

A) general manager.
B) operations manager.
C) plant manager.
D) production supervisor.
E) division manager.

Question 27

At the end of the budget period, Mary compares actual performance against standards. When she does this, she is performing the ________ function of management.

A) planning
B) organizing
C) leading
D) controlling
E) negotiation

Question 28

Amy Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of the ________ management function.

A) planning
B) organizing
C) leading
D) controlling
E) negotiation

Question 29

Controlling involves

A) monitoring expenses and revenues to ensure that the company is profitable.
B) reviewing data to ensure that employees are doing what they are supposed to do.
C) reviewing all financial and productivity data to ensure that the company is achieving its goals.
D) monitoring the firm's performance and acting to bring it in line with the firm's goals.
E) ensuring that all policies and procedures are followed within a company.

Question 30

The title "division manager" is an example of a ________ management position.

A) lower
B) middle
C) liaison
D) first-line
E) top

Question 31

Leslie is one of the managers responsible for planning and overseeing the firm's accounting function and publication of the annual report. Leslie is a(n) ________ manager.

A) marketing
B) financial
C) operations
D) human resources
E) information

Question 32

Mintzberg's research on managers showed which of the following?

A) Managers prefer written media.
B) Managers work under varying degrees of pressure, sometimes being very busy, and sometimes much less busy.
C) Managers typically begin a task and then work on it until it is finished.
D) Managers have a preference for historical data rather than "live action."
E) None of these.

Question 33

If a manager attends a subordinate's wedding, this is an example of the ________ role.

A) liaison
B) entrepreneur
C) figurehead
D) leader
E) disseminator

Question 34

A flight-services manager for a specific Air Canada flight is a ________ manager, while a chief financial officer for a consumer products company is a ________ manager.

A) middle; top
B) officer; supervisor
C) first-line; top
D) middle; first-line
E) first-line; middle

Question 35

Supervisor, office manager, and group leader are at the ________ management level.

A) middle
B) officer
C) top
D) intermediate
E) first-line

Question 36

A transit supervisor who monitors bus schedules, passenger safety, and the behaviour of bus drivers is a ________ manager, while a plant manager in a manufacturing plant is a ________ manager.

A) middle; top
B) officer; supervisor
C) top; middle
D) middle; first-line
E) first-line; middle

Question 37

Mark is one of the managers who is responsible for getting his company's products from producers to consumers. Mark is a(n) ________ manager.

A) production
B) operations
C) information
D) marketing
E) human resource

Question 38

Vice-president, treasurer, chief executive officer, and president are found at the ________ level of management.

A) first-line
B) intermediate
C) top
D) middle
E) officer

Question 39

The ________ managers are responsible for production, inventory, and quality control.

A) operations
B) finance
C) human resources
D) marketing
E) information

Question 40

Which of the following is correct with regard to the question of whether management is an art or a science?

A) Management is clearly an art because it does not place much emphasis on quantitative methods.
B) Because many management problems can be approached in ways that are rational, logical, objective, and systematic, management is a science.
C) Because managers must rely heavily on interpersonal skills and on abstract conceptual thinking, management is an art.
D) Management is partly an art and partly a science.
E) Management is neither an art nor a science; rather, it is a profession.

Question 41

Burton Kinzel, vice-president of personnel at QVJ Corporation, sat down at the bargaining table across from the leader of the union, Vladmir Ramonovitch. Burton's expertise in the managerial role Mintzberg called ________ was about to be tested.

A) entrepreneur
B) liaison
C) disseminator
D) figurehead
E) negotiator

Question 42

The technical skills, human relations skills, and conceptual skills of managers

A) shift in their degree of importance as the manager rises to the top of the organization.
B) shift so that the technical skills become more important to the higher level manager.
C) retain the same degree of importance as a manager progresses "up the organization ladder" to the top.
D) shift so that the conceptual skills become less important to the higher level manager.
E) shift so that human relations skills become more important than conceptual skills to the higher level manager.

Question 43

In his job, Marcus has found that the ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present is crucial. Marcus must therefore possess ________ skill.

A) technical
B) intuition
C) conceptual
D) human relations
E) decision-making

Question 44

"Ms. Jensen, there's someone here from the radio station to interview you about the explosion." Ms. Jensen is about to function in the role Mintzberg described as

A) monitor.
B) disseminator.
C) spokesperson.
D) resource allocator.
E) leader.

Question 45

Midge thought anxiously about how to position her company for the future. By so doing, Midge functioned in the role Mintzberg called

A) negotiator.
B) spokesperson.
C) entrepreneur.
D) resource allocator.
E) figurehead.

Question 46

Tom Smith Jr., a manager responsible for hockey stick tape production at StickStuck Corp., spontaneously tours the plant to check on what's going on. By so doing, Tom is functioning in Mintzberg's ________ role.

A) resource allocator
B) monitor
C) figurehead
D) leader
E) liaison

Question 47

At what level of management are technical skills relatively unimportant?

A) Bottom
B) Top
C) Front-line supervisor
D) First-line
E) Middle

Question 48

Technical skills are especially important for Tim. He is likely a

A) first-line supervisor.
B) top-level manager.
C) member of the board of directors.
D) middle-level manager.
E) vice-president.

Question 49

A study by Google of the "Habits of Highly Effective Google Managers" found that the top-ranked managers were

A) strongest on technical skills, but also paid attention to human relations problems.
B) even-tempered bosses who made time for one-on-one meetings, and who helped subordinates work through problems.
C) strong on conceptual skills and were able to envision the activities that needed to be carried out in order for Google to be successful.
D) strong on human relations skills, but did not spend an excessive amount of time dealing with subordinates.
E) strong on decision-making and time management skills

Question 50

All of the following statements about basic management skills are correct except

A) they include the ability to think in the abstract.
B) they include human relations skills.
C) they include time-management skills.
D) the emphasis on each skill remains the same regardless of the level of management.
E) they are skills that are needed by all managers.

Question 51

Technical skills are especially important for

A) middle-level managers.
B) members of the board of directors.
C) top-level managers.
D) company presidents.
E) first-line managers.

Question 52

A study by Google found that technical expertise ranked last among a list of eight "Habits of Highly Effective Google Managers." What was at the top of the list?

A) Bosses who had a strong concern for social responsibility and ethics.
B) Bosses who completed their work in a timely fashion.
C) Bosses who did what they promised.
D) Bosses who were even-tempered, who made time for one-on-one meetings, and who helped subordinates work through problems.
E) Bosses who protected their employees from harassment by managers in other divisions.

Question 53

Cecil and Cyrus, two of Simpson's top employees, stormed into their manager's office. Both were intent on securing approval from her for projects they were proposing for the company. Shelly Simpson, manager at Soho, Howso, Tatso, & Associates, was about to function in the role Mintzberg identified as the

A) resource allocator.
B) entrepreneur.
C) figurehead.
D) liaison.
E) monitor.

Question 54

"Excuse me," the secretary began. "Don't you have a 3:30 appointment to present a gold watch to Mr. Chung?" The manager froze in her tracks, realized the secretary was correct, and immediately began preparing herself to fulfill the managerial role identified by Mintzberg as

A) figurehead.
B) leader.
C) disseminator.
D) liaison.
E) entrepreneur.

Question 55

Mintzberg's research on managers showed which of the following?

A) Managers work at an unrelenting pace.
B) Managers work under varying degrees of pressure, sometimes being very busy, and sometimes much less busy.
C) Managers prefer written media.
D) Managers have a preference for historical data rather than "live action."
E) Managers typically begin a task and then work on it until it is finished.

Question 56

Jack Leutens, senior manager of marketing research at Tromex Enterprises, calls in seven of his subordinates to brief them on his recent research findings regarding new machinery that might be relevant for Tromex. This is an example of a manager functioning in the role Mintzberg called the

A) leader.
B) disseminator.
C) monitor.
D) spokesman.
E) resource allocator.

Question 57

Selection of the best course of action in a particular situation is known as

A) organizing.
B) planning.
C) management.
D) decision making.
E) controlling.

Question 58

"Hey Reg! I just caught two kids shoplifting! What do I do now?" the assistant manager said to his boss, Reg Caluza. Reg was about to function in the role Mintzberg identified as the

A) spokesperson.
B) figurehead.
C) disturbance handler.
D) resource allocator.
E) monitor.

Question 59

The basic management skill that is demonstrated in one's ability to think in the abstract and to see beyond the present situation is ________ skill.

A) human relations
B) time-management
C) technical
D) decision-making
E) conceptual

Question 60

The ability to type, to create a spreadsheet, or to write a computer program are examples of which basic management skill?

A) Decision making
B) Conceptual
C) Human relations
D) Time-management
E) Technical

Question 61

Jim wants to apply the rational decision-making process to a management problem he is facing. He has already recognized and defined the decision-making situation. What should he do next?

A) Select the best alternative
B) Identify alternatives
C) Evaluate alternatives
D) Implement the chosen alternative
E) Follow up and evaluate the results

Question 62

When Boeing and Airbus were trying to decide how they should respond to the question of how they could increase their international capacity, they were in what stage of the rational decision-making process?

A) Select the best alternative
B) Identify alternatives
C) Evaluate alternatives
D) Implement the chosen alternative
E) Follow up and evaluate the results

Question 63

Rolex sells high-quality, high-priced watches through selected jewellery stores. This is their

A) corporate performance target.
B) long-term goal.
C) strategic goal.
D) purpose.
E) mission.

Question 64

A study of 293 Canadian office workers found that ________ percent believed that office politics was at least somewhat necessary in order to get ahead in their organization.

A) 11
B) 25
C) 41
D) 59
E) 71

Question 65

Which of the following best describes a mission?

A) An objective that a business hopes and plans to achieve
B) A broad set of organizational plans for implementing decisions made for achieving organizational goals
C) The shared experiences, stories, beliefs, and norms that characterize an organization
D) An organization's statement of how it will achieve its purpose in the environment in which it conducts business
E) An organization's competitive standing in the marketplace

Question 66

Which of the following is correct with respect to the concepts of certainty, risk, and uncertainty?

A) The majority of managerial decisions are made under conditions of certainty.
B) In a situation of risk, the alternatives are known, but costs are simply probabilities.
C) In a situation of uncertainty, the manager knows the alternatives that are available, but not the outcomes that will result from a specific alternative.
D) There is very little difference between the conditions of risk and uncertainty because in both the outcome is unclear.
E) Under a condition of certainty, profits are guaranteed.

Question 67

What does the term "escalation of commitment" mean?

A) As a project proceeds toward successful completion, managers make an increased commitment to doing a good job
B) The actions that managers take as they try to get the outcomes they desire
C) As a project proceeds, managers become increasingly committed to it even if there is evidence that it is not working out as planned
D) It refers to how much a manager is willing to gamble when making decisions
E) None of these

Question 68

Reebok wants to make a profit by manufacturing and selling athletic shoes and related merchandise. This is their

A) strategic goal.
B) long-term goal.
C) purpose.
D) short-term goal.
E) mission.

Question 69

When used as the means for measuring success or failure, goals are operating as

A) management tools.
B) budget standards.
C) bonus criteria.
D) performance targets.
E) motivators.

Question 70

When Atco says it wants to provide products and services to the energy and resource industries, that is their

A) corporate strategy.
B) mission.
C) purpose.
D) intuition.
E) goal.

Question 71

Port Metro Vancouver's successful reduction of container "dwell time" illustrates which basic purpose of goal setting?

A) Goal setting provides direction, guidance, and motivation for managers.
B) Goal setting helps firms allocate resources.
C) Goal setting helps to define corporate culture.
D) Goal setting helps managers assess performance.
E) It does none of the above.

Question 72

Beta Company has set a goal of increasing sales by 10% this year. This goal will most likely have the effect of

A) motivating managers.
B) assisting in the allocation of advertising dollars.
C) assisting in the allocation of resources.
D) providing direction for managers.
E) all of these.

Question 73

Both Rolex and Timex want to sell watches at a profit. They share a common

A) purpose.
B) corporate performance target.
C) mission.
D) long-term goal.
E) strategic goal.

Question 74

Toyota's goal to sell 200 000 vehicles in Canada in 2012 illustrated which basic purpose of goal setting?

A) Goal setting provides direction, guidance, and motivation for managers.
B) Goal setting helps firms allocate resources.
C) Goal setting helps to define corporate culture.
D) Goal setting helps managers assess performance.
E) None of the above

Question 75

Mega Computer has decided that within the next five years it wants to become an industry leader in disk drive technology, a technology that has little existing support inside the company at this time. This goal will

A) help assess performance.
B) help make decisions.
C) help allocate resources.
D) provide direction.
E) help define corporate culture.

Question 76

3M Corp.'s stated goal of earning 30 percent of its profits from sales of products less than four years old is an example of goals that

A) define corporate culture.
B) help assess performance.
C) help allocate resources.
D) provide direction.
E) help make decisions.

Question 77

A mission statement is

A) a statement of how an organization will achieve its purpose in the environment in which it conducts its business.
B) solely for people visiting the company so they understand what the company does.
C) not necessary for smaller businesses.
D) the same as a purpose.
E) a statement developed by the board of directors to guide the business.

Question 78

What is the primary purpose of setting a goal for an organization?

A) Determining if the firm is highly leveraged
B) Making workers think in quantitative terms
C) Identifying threats and opportunities
D) Assuring successes for the firm
E) Providing guidance and direction for all managers

Question 79

When Airbus decided to develop and manufacture a new jumbo jet to meet the demand for increased international travel, it was involved in what stage of the rational decision-making process?

A) Select the best alternative
B) Identify alternatives
C) Evaluate alternatives
D) Implement the chosen alternative
E) Follow up and evaluate the results

Question 80

Marilyn is involved in making an important decision regarding the purchase of new equipment for her company's only manufacturing plant. She has just identified several alternative possibilities that will solve the problem that is facing her. What should she do next?

A) Select the best alternative
B) Identify alternatives
C) Evaluate the alternatives
D) Implement the chosen alternative
E) Follow up and evaluate the results