Question 1

Objective setting is closely linking with the ____ process.

Accepted Answer

A)  planning 
B)  hiring 
C)  firing 
D)  horizontal 
E)  downsizing

Question 2

Memory on the Move
Memory on the Move is a manufacturer of USB flashdrives, and is in the midst of a labor-management contract negotiation for the coming three years. In a meeting on management's side, Michael, the human resources manager, is wondering if they are facing a labor strike. Rachel, the operations manager, argues that even if management offers a compromise, she is not sure how the labor representatives will react. Being new in the position, Michael suggests that Memory on the Move should follow their two main competitors in the industry and copy their labor agreement. Rachel disagrees and suggests waiting. Rachel argues that if the union actually goes on strike and the company suffers from declining production, then maybe the company should offer a compromise. Vanessa, CEO and president, after hearing all sides gave her perspective and recommendation. Vanessa proposed that the company should quickly settle with the union and focus on being a technology leader in the industry.
-Refer to Memory on the Move. Michael is experiencing which of these uncertainties?

Accepted Answer

A)  Temporary 
B)  Effect 
C)  Job-related 
D)  Response 
E)  State

Question 3

The typical management by objectives (MBO) cycle takes two months to complete, since frequent budget adjustments are necessary.

Accepted Answer

A) True 
 B)False

Question 4

Bob Bach has just started his own solar architecture company. Bob wants to create a business document that expresses his new company's vision, priorities and goals. What kind of document should Bob write?

Accepted Answer

A)  Vision statement 
B)  Mission statement 
C)  Corporate credo 
D)  Ethics statement 
E)  Operational plan

Question 5

For large, non-routine projects, Program evaluation and review technique (PERT) is an excellent scheduling tool.

Accepted Answer

A) True 
 B)False

Question 6

What sets operational planning apart from strategic and intermediate planning?

Accepted Answer

The answer of What sets operational planning apart from strategic...

Question 7

According to 70 research studies, "Top-management commitment" is the key success factor for management by objectives (MBO) programs.

Accepted Answer

A) True 
 B)False

Question 8

A good plan describes what and why something is to be accomplished.

Accepted Answer

A) True 
 B)False

Question 9

Simon Cline is a project manager for an advertising company. Recently, Simon faced the challenge of blending team members from multiple organizations, and motivating them without formal authority. Which role should Simon take on?

Accepted Answer

A)  Entrepreneur 
B)  Implementer 
C)  Marketer 
D)  Politician 
E)  Coach

Question 10

Strategic planning, intermediate planning, and operational planning should never overlap, because their boundaries are rigid rather than elastic.

Accepted Answer

A) True 
 B)False

Question 11

Conceptualization is the first stage of the project life cycle.

Accepted Answer

A) True 
 B)False

Question 12

Janice Stafford is a CEO for a large scooter manufacturer. Due to changes in her company's competitive environment, Janice wants to reexamine how the company will achieve a competitive advantage so that it will continue to grow and increase profits. What kind of planning should Janice focus on?

Accepted Answer

A)  Intermediate planning 
B)  Mission planning 
C)  Strategic planning 
D)  Operational planning 
E)  Business planning

Question 13

Which of these does a PERT activity represent?

Accepted Answer

A)  The critical path 
B)  Completed steps 
C)  Wasted time 
D)  A performance milestone 
E)  Work in process

Question 14

A performance milestone representing the start or finish of some activity is a PERT

Accepted Answer

A)  critical path. 
B)  activity. 
C)  event. 
D)  juncture. 
E)  time.

Question 15

In a break-even analysis, fixed costs are a function of

Accepted Answer

A)  technology. 
B)  production output. 
C)  materials expenses. 
D)  sales volume. 
E)  time.

Question 16

Karl Wilhelm, an operations manager, cannot predict the effects of a new technology on his organization. What type of uncertainty is Karl experiencing?

Accepted Answer

A)  Response 
B)  State 
C)  Technological 
D)  Operational 
E)  Effect

Question 17

Memory on the Move
Memory on the Move is a manufacturer of USB flashdrives, and is in the midst of a labor-management contract negotiation for the coming three years. In a meeting on management's side, Michael, the human resources manager, is wondering if they are facing a labor strike. Rachel, the operations manager, argues that even if management offers a compromise, she is not sure how the labor representatives will react. Being new in the position, Michael suggests that Memory on the Move should follow their two main competitors in the industry and copy their labor agreement. Rachel disagrees and suggests waiting. Rachel argues that if the union actually goes on strike and the company suffers from declining production, then maybe the company should offer a compromise. Vanessa, CEO and president, after hearing all sides gave her perspective and recommendation. Vanessa proposed that the company should quickly settle with the union and focus on being a technology leader in the industry.
-Refer to Memory on the Move. Michael's suggestion exhibits the ____ organizational response to the labor uncertainty.

Accepted Answer

A)  reactor 
B)  analyzer 
C)  defender 
D)  creator 
E)  prospector

Question 18

People perceive three types of environmental uncertainty: response, ____, and ____.

Accepted Answer

A)  subjective; objective 
B)  state; effect 
C)  optimistic; pessimistic 
D)  macro; micro 
E)  primary; secondary

Question 19

A project to build three customized golf carts is a good example of when the program evaluation and review technique (PERT) would be useful.

Accepted Answer

A) True 
 B)False

Question 20

In break-even analysis, the contribution margin is the break-even point expressed in units.

Accepted Answer

A) True 
 B)False

Exam 6: The Basics of Planning and Project Management

Objective setting is closely linking with the ____ process.

The typical management by objectives (MBO) cycle takes two months to complete, since frequent budget adjustments are necessary.

Bob Bach has just started his own solar architecture company. Bob wants to create a business document that expresses his new company's vision, priorities and goals. What kind of document should Bob write?

For large, non-routine projects, Program evaluation and review technique (PERT) is an excellent scheduling tool.

What sets operational planning apart from strategic and intermediate planning?

According to 70 research studies, "Top-management commitment" is the key success factor for management by objectives (MBO) programs.

A good plan describes what and why something is to be accomplished.

Simon Cline is a project manager for an advertising company. Recently, Simon faced the challenge of blending team members from multiple organizations, and motivating them without formal authority. Which role should Simon take on?

Strategic planning, intermediate planning, and operational planning should never overlap, because their boundaries are rigid rather than elastic.

Conceptualization is the first stage of the project life cycle.

Janice Stafford is a CEO for a large scooter manufacturer. Due to changes in her company's competitive environment, Janice wants to reexamine how the company will achieve a competitive advantage so that it will continue to grow and increase profits. What kind of planning should Janice focus on?

Which of these does a PERT activity represent?

A performance milestone representing the start or finish of some activity is a PERT

In a break-even analysis, fixed costs are a function of

Karl Wilhelm, an operations manager, cannot predict the effects of a new technology on his organization. What type of uncertainty is Karl experiencing?

People perceive three types of environmental uncertainty: response, , and .

A project to build three customized golf carts is a good example of when the program evaluation and review technique (PERT) would be useful.

In break-even analysis, the contribution margin is the break-even point expressed in units.