Professional Documents
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Management Organisation
Management Organisation
D) stock valuation
Answer: A
Which of the following factors has contributed to the decline in the number of
years used to define short-term and long-term plans?
A) environmental uncertainty
B) profit-orientation of businesses
C) flattened organizational structures
D) stagnant business conditions
Answer: A
A) Employees will be more motivated to try to attain goals that they helped set.
B) Organizational goals must not be communicated to lower level employees.
C) Top managers know what is best because they see the "big picture."
D) Organizational goals must not be broken down into individual goals.
Answer: C
The statement that each store should have sales equal to or greater than $100 per
square foot per day is an example of ________.
A) a strategic plan
B) a directional plan
C) a financial goal
D) a strategic goal
Answer: C
The statement that all stores should be well maintained both inside and out is an
example of a ________.
A) directional plan
B) specific plan
C) financial goal
D) social goal
Answer: A
Florence is a chain of flower shops in the Chicago area. The company recently
acquired Knick-knacks, which owns three gift shops. Which of the following is
most similar to this acquisition?
A) Construction firm Donaldson acquired Fabrica Textiles as it seemed like
a good investment.
B) Faced with mounting raw material costs, I&A Products took over its
supplier, BR Corporation.
C) Dallas Shoes buys out RunTime Shoes and expands its distribution
channels through RunTime outlets.
D) Toy World acquired Unicorn Children's Books and now retails both toys
and books from co-branded outlets.
Answer: D
A) corporate strategy
B) competitive strategy
C) growth strategy
D) concentration strategy
Answer: B
Which of the following observations best explains why the control function is
important?
A) An effective control system facilitates employee empowerment.
B) Forming an organizational structure is a crucial control activity.
C) Human resource management is a subset of the controlling process.
D) Organizational strategies are formed during the controlling stage.
Answer: A
Answer: B
The ________ ratios measure an organization's ability to meet its current debt
obligations.
A) activity
B) liquidity
C) leverage
D) profitability
Answer: B
Which of the following ratios examines the organization's use of debt to finance
its assets and its ability to meet the interest payments on the debt?
A) liquidity ratios
B) leverage ratios
C) profitability
D) activity ratios
Answer: B
Two areas in which corporate governance is being reformed are the role of
boards of directors and ________.
A) employee stock options
B) financial reporting
C) executive compensation
D) top level management
Answer: B