Question 1

Rebecca Jones is making a change to some of the behaviors, activities, and aspects of her organization in order to bring performance into line with standards. This step of the control process is called

Accepted Answer

A)  setting performance standards. 
B)  measuring actual performance. 
C)  developing organizational structure. 
D)  comparing performance to standards. 
E)  responding to deviations.

Question 2

Match each term with the correct statement below.
-the difference between the assets and liabilities

Accepted Answer

A)  balance sheet 
B)  assets 
C)  current assets 
D)  fixed assets 
E)  liabilities
F) current liabilities
G) long-term liabilities
H) owners equity
I) income statement
J) liquidity ratios
K) profitability ratios
L) debt ratios

Question 3

Which of the following is a form of control in an organization?

Accepted Answer

A)  formal performance appraisal 
B)  goals 
C)  rules 
D)  All of the above could be a form of control. 
E)  Only choice B and C are correct.

Question 4

__________ refers to the probability that the object or process being controlled will consistently behave in an acceptable manner.

Accepted Answer

A)  Objectivity 
B)  Subjectivity 
C)  Reliability 
D)  Predictability 
E)  Suitability

Question 5

Match each term with the correct statement below.
-Troublesome areas are targeted.

Accepted Answer

A)  Law of requisite variety 
B)  Ability to anticipate problems 
C)  Sensitivity of the measuring device 
D)  Variance reporting 
E)  Management by exception

Question 6

The two financial statements that provide much of the information to calculate the ratios that are used to assess an organization's financial health are the balance sheet and the income statement.

Accepted Answer

A) True 
 B)False

Question 7

What is meant by "timeliness in feedback reporting? Give some examples (other than those in the book) of different degrees of "timeliness that would be needed in different situations.

Accepted Answer

The answer of What is meant by "timeliness in feedback...

Question 8

Match each term with the correct statement below.
-indicators of the firm's ability to handle long-term debt

Accepted Answer

A)  balance sheet 
B)  assets 
C)  current assets 
D)  fixed assets 
E)  liabilities
F) current liabilities
G) long-term liabilities
H) owners equity
I) income statement
J) liquidity ratios
K) profitability ratios
L) debt ratios

Question 9

An income statement is a summary of an organization's financial position at a given point it time, showing assets, liabilities, and owner's equity.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following was NOT identified by the text as being a factor in selecting either the bureaucratic or organic control style?

Accepted Answer

A)  Individual management style 
B)  Environmental influence 
C)  Organizational culture 
D)  Employee professionalism 
E)  Performance measures

Question 11

Match each term with the correct statement below.
-focuses on discovering undesirable output and implementing corrective action

Accepted Answer

A)  feedforward control 
B)  concurrent control 
C)  feedback control 
D)  bureaucratic control 
E)  organic control

Question 12

Are bureaucratic controls or organic controls best for most organizations? Explain your answer.

Accepted Answer

The answer of Are bureaucratic controls or organic controls best...

Question 13

Which of the following is likely to be the most effective control standard?

Accepted Answer

A)  Defect rates should be low. 
B)  Defect rates in 1998 should be lower than 1997. 
C)  Defect rates should be .02 percent or less. 
D)  Defect rates should be impressive. 
E)  Defect rates should not be a problem.

Question 14

Organic control is often called clan control.

Accepted Answer

A) True 
 B)False

Question 15

To be effective in detecting and correcting unacceptable performance, a control system must satisfy all of the following criteria except which one?

Accepted Answer

A)  It must be related to organizational strategy. 
B)  It must utilize all steps in the control process. 
C)  It must be composed of only objective measures. 
D)  It must be timely in feedback reporting. 
E)  It must be acceptable to diverse work force.

Question 16

Computer monitoring is a form of undercover surveillance.

Accepted Answer

A) True 
 B)False

Question 17

Owner's equity ratios are indicators of a firm's ability to handle long-term debt.

Accepted Answer

A) True 
 B)False

Question 18

Jack Baker is concentrating his control efforts on monitoring ongoing activities to ensure that the transformation process is functioning properly. Jack is concentrating on which type of control?

Accepted Answer

A)  feedback 
B)  feedforward 
C)  concurrent 
D)  static 
E)  independent

Question 19

__________ ratios indicate a firm's ability to handle long-term debt.

Accepted Answer

A)  Debt 
B)  Feedforward 
C)  Liability 
D)  Profitability 
E)  Dividend

Question 20

The type of control that focuses on detecting undesirable material, financial, or human resources that serve as inputs to the transformation process is referred to as

Accepted Answer

A)  concurrent control. 
B)  safeguarding control. 
C)  cross-functional control. 
D)  feedback control. 
E)  feedforward control.

Exam 15: Organizational Control in a Complex Business Environment

Rebecca Jones is making a change to some of the behaviors, activities, and aspects of her organization in order to bring performance into line with standards. This step of the control process is called

Match each term with the correct statement below. -the difference between the assets and liabilities

Which of the following is a form of control in an organization?

__________ refers to the probability that the object or process being controlled will consistently behave in an acceptable manner.

Match each term with the correct statement below. -Troublesome areas are targeted.

The two financial statements that provide much of the information to calculate the ratios that are used to assess an organization's financial health are the balance sheet and the income statement.

What is meant by "timeliness in feedback reporting? Give some examples (other than those in the book) of different degrees of "timeliness that would be needed in different situations.

Match each term with the correct statement below. -indicators of the firm's ability to handle long-term debt

An income statement is a summary of an organization's financial position at a given point it time, showing assets, liabilities, and owner's equity.

Which of the following was NOT identified by the text as being a factor in selecting either the bureaucratic or organic control style?

Match each term with the correct statement below. -focuses on discovering undesirable output and implementing corrective action

Are bureaucratic controls or organic controls best for most organizations? Explain your answer.

Which of the following is likely to be the most effective control standard?

Organic control is often called clan control.

To be effective in detecting and correcting unacceptable performance, a control system must satisfy all of the following criteria except which one?

Computer monitoring is a form of undercover surveillance.

Owner's equity ratios are indicators of a firm's ability to handle long-term debt.

Jack Baker is concentrating his control efforts on monitoring ongoing activities to ensure that the transformation process is functioning properly. Jack is concentrating on which type of control?

__________ ratios indicate a firm's ability to handle long-term debt.

The type of control that focuses on detecting undesirable material, financial, or human resources that serve as inputs to the transformation process is referred to as