Pom MCQ

.
I
fthepr ocessi
sint
hestat
eofstat
ist
ical
cont
rol
,aspert
hest
ati
sti
cal
cont
rol
char
t,t
he
fl
uctuat
ionsaredueto_
_____
___
a.Assi
gnabl
evar
iabi
l
ity
b.Random v
ari
abi
l
ity
c.Occasi
onal
var
iabi
l
ity
d.Sequent
ial
var
iabi
l
ity
Answer
Answer
:a.Assi
gnabl
evar
iabi
l
ity
2.Mat
cht
heFol
l
owi
ng
1]Pr
oxi
mit
ytomar
ket
i]Educat
ional
faci
l
ity
2]I
ndust
ri
alandl
abourat
ti
tude i
i
]Saf
etyf
act
or
3]Legi
slat
ionandt
axat
ion i
i
i]Li
censes
4]Communi
tyFaci
l
iti
es i
v]Fr
agi
l
epr
oduct
v
]Pr
oduct
ivi
tyofl
abour
a.1-
ii
,2-
i,
3-i
i
i,4-
ii
i
b.1-
iv,
2-v
,3-
ii
i,
4-i
c.1-
i,
2-i
i
,3-
ii
i,
4-i
v
d.Noneoft
heabov
e
Answer
Answer
:b.1-
iv,
2-v
,3-
ii
i,
4-i
3.Techni
quewhi
chcanhel
panor
gani
zat
iont
oreducei
nvent
oryi
scal
l
ed
a.TPM
b.CRM
c.CPM
d.MRP
Answer
Answer
:d.MRP
4.Whatar
etheadv
ant
agesofhav
ingt
hepl
antl
ocat
ionneart
othemar
ket
?
i
]Li
aisoni
ngwi
thdeal
ersandwhol
esal
ersbecomeeconomi
cal
andeasy
i
i
]Recov
eryf
rom cust
omer
siseasyandt
imesav
ing
i
i
i]Labourt
urnov
err
atei
slow
i
v]Manyadmi
nist
rat
ivepr
obl
emst
hataddt
ocostgetav
oided
a.Onl
yiandi
v
b.Onl
yii
andi
i
i
c.Al
l
,i,
iiandi
i
i
d.Al
li
,i
iandi
v
Answer
Answer
:d.i
,i
iandi
v
5.Whati
stheul
ti
mat
eef
fectofi
nadequat
epr
oduct
ioncapaci
ty?
a.PoorPl
anni
ng
b.PoorMachi
neUt
il
izat
ion
c.LowPr
oduct
ivi
ty
d.PoorCust
omerSer
vice
Answer
Answer
:d.PoorCust
omerSer
vice
«Pr
evi
ousNext»
Whatdoy
oucal
lthesi
tuat
ioni
nwhi
cht
hecomponenti
snotcompl
etel
yrej
ect
edbutcor
rect
ed?
a.I
nspect
ion
b.Repr
oduct
ion
c.Repr
ocessi
ng
d.Qual
i
tyassur
ance
Answer
Answer
:a.I
nspect
ion
7._
___
___arespeci
all
ytr
ainedi
ndi
vi
dual
sresponsi
blef
orl
eadi
ngsi
xsi
gmat
eamst
hrought
he
DMAICprocess.
a.Mast
erBl
ackbel
ts
b.Bl
ackbel
ts
c.Gr
eenBel
ts
d.DMAI
CPr
ofessi
onal
s
Answer
Answer
:a.Mast
erBl
ackbel
ts
8.St
ruct
ureoft
ranspor
tat
ioncostdependsonwhi
choft
hef
oll
owi
ngf
act
ors?
i
]Power
i
i
]Av
eragedi
stanceofshi
pment
i
i
i]Char
act
eri
sti
csoft
hecommodi
ty
i
v]Medi
um ofshi
pment
a.Onl
yii
andi
v
b.Onl
yii
andi
i
i
c.Onl
yii
,i
ii
andi
v
d.Al
ltheabov
e
Answer
Answer
:c.Onl
yii
,i
ii
andi
v
9.Whosel
ect
sthej
obf
ormet
hodst
udy
?
a.St
orekeeper
b.I
nspect
or
c.Oper
ator
d.Manager
Answer
Answer
:d.Manager
10.Whenbatchesar
esmal
l
,ther
ati
oofdi
rectwor
ker
stosuper
visor
sis_
___
__andv
icev
ersa,
in
BatchPr
oducti
on.
a.Negat
ive
b.Lower
c.Equal
d.Hi
gher
Answer
Answer
:b.Lower
11.Whatdowecal
lthei
rr
educi
blemi
nimum t
imer
equi
redt
ocompl
eteanact
ivi
ty?
a.St
andar
dti
me
b.Nor
mal
time
c.Cr
asht
ime
d.Pessi
mist
ict
ime
Answer
Answer
:d.Pessi
mist
ict
ime
12._
___
_ref
erst
oassi
gnmentoft
askorwor
ktoaf
aci
l
ity
.
a.Loadi
ng
b.Di
rect
ing
c.Cont
rol
l
ing
d.Coor
dinat
ing
Answer
Answer
:b.Di
rect
ing
13.I
nthepl
annedmai
ntenancewor
kcy
clewhati
sthest
eppr
iort
oexecut
ing?
a.Recor
ding
b.Pl
anni
ng
c.Cont
rol
l
ing
d.Schedul
i
ng
Answer
Answer
:d.Schedul
i
ng
14.Whatar
etheadv
ant
agesofJI
T?
i
]Zer
oorr
educedi
ncomi
ngi
nspect
ion
i
i]Earl
ydetecti
onandcorrect
ionofnon-
conf
ormances,
giv
inganoppor
tuni
tyf
ori
mpr
ovi
ng
quali
tyofpurchasedpar
ts
i
i
i]Reducedi
nvent
ori
esofr
awmat
eri
als,
pur
chasedpar
ts,
wor
kinpr
ogr
essandf
ini
shedgoods
i
v]Sl
owr
esponset
oengi
neer
ingchanger
equi
rement
s
a.i
andi
i
b.i
andi
i
i
c.i
,i
iandi
i
i
d.Al
ltheabov
e
Answer
Answer
:b.i
andi
i
i
15.Someoft
hecommonobj
ect
ivesofagoodl
ayoutar
easf
oll
owi
ng
i
]Ef
fi
cientut
il
izat
ionofav
ail
abl
espace
i
i
]Mi
nimi
zat
ionofr
eject
ions
i
i
i]Economyi
nmat
eri
alhandl
i
ng
i
v]Mi
nimi
zat
ionofpr
oduct
iondel
ays
a.i
andi
i
b.i
andi
i
i
c.i
,i
ii
andi
v
d.Al
ltheabov
e
Answer
Answer
:c.i
,i
ii
andi
v
.Kanbani
sav
isual
indi
cat
ort
hatt
ri
gger
srepl
eni
shmentofi
temsl
i
ke_
___
_
a.Rack
b.St
ore
c.Bi
n
d.Car
d
Answer
Answer
:d.Car
d
17.Whi
choft
hef
oll
owi
ngar
ethemai
npr
inci
plesofSi
xSi
gma?
a.Genui
nef
ocusoncust
omer
b.Dat
aandf
actdr
ivenmanagement
c.Pr
ocessf
ocusmanagementandi
mpr
ovement
d.Ef
fi
cientsuppl
ychai
nmanagementandl
ogi
sti
cs
a.Onl
yiandi
i
b.Onl
yii
andi
i
i
c.Onl
yi,
iiandi
i
i
d.Al
ltheabov
e
Answer
Answer
:c.Onl
yi,
iiandi
i
i
18.Whi
choft
hef
oll
owi
ngi
ndi
cat
esassi
gnmentoft
askorwor
ktoaf
aci
l
ity
?
a.Loadi
ng
b.Di
rect
ing
c.Coor
dinat
ing
d.Cont
rol
l
ing
Answer
Answer
:b.Di
rect
ing
19."Whaty
ourpr
ocesscandel
i
ver"i
ster
medas_
___
___
__.
a.Var
iance
b.Cont
rol
c.Var
iat
ion
d.Pr
ocessCapabi
l
ity
Answer
Answer
:b.Cont
rol
20.Thi
sty
peofmai
ntenanceincl
udespr
event
ivemai
ntenanceact
ivi
ti
est
hatar
ecar
ri
edout
whenthemachi
nei
sstil
lrunni
ng.
a.Pr
event
ivemai
ntenance
b.Desi
gn-
outMai
ntenance
c.Runni
ngMai
ntenance
d.Wor
kingMai
ntenance
Answer
Answer
:c.Runni
ngMai
ntenance
«Pr
evi
ousNext
1.Whi
choft
hef
oll
owi
ngi
s(ar
e)i
mpor
tantconsi
der
ati
on(
s)concer
ningact
ivi
tyt
imes?
Act
ivi
tyt
imeshoul
dbeobt
ainedf
rom t
heper
sonr
esponsi
blef
ort
hecompl
eti
onofanact
ivi
ty
Act
ivi
tyt
imemustbei
ndependentofanyi
nfl
uencewhi
cht
hepr
ecedi
ngorsucceedi
ngact
ivi
ty
mayhaveoni
t.
Act
ivi
tyti
memayassumet
hatj
ustt
henor
mal
quant
it
yofr
esour
cesr
equi
redt
ocar
ryoutt
he
act
ivi
tyar
eav
ail
abl
e.
Al
loft
heabov
e
Cor
rectanswer
:(D)
Al
loft
heabov
e
2.Obj
ect
iveofWor
kSt
udyi
stoi
mpr
ove-
--
--
--
--
Cy
clet
ime
Pr
oduct
ivi
ty
Pr
oduct
ion
Al
loft
heabov
e
Cor
rectanswer
:(B)
Pr
oduct
ivi
ty
3.Thef
oll
owi
ngi
snotamaj
orcont
ri
but
ori
nthedev
elopmentofCont
rol
Char
tsandSampl
i
ng
pl
an
FHDodge
HGRomi
ng
Wal
terSchewhar
t
JM Jur
an
Cor
rectanswer
:(D)
JM Jur
an
4.Or
gani
zat
ional
model
sar
e
mul
ti
nat
ional
model
i
nter
nat
ional
model
gl
obal
organi
zat
ional
model
Al
loft
heabov
e
Cor
rectanswer
:(D)
Al
loft
heabov
e
5.The–––––––––i
sthedef
ectl
evel
forwhi
chl
otsar
eregar
dedasbadl
ots.
Accept
abl
equal
i
tyl
evel
Consumer
’sr
isk
Pr
oducer
’sr
isk
LotTol
erancePer
cent
ageDef
ect
ive
Cor
rectanswer
:(D)
LotTol
erancePer
cent
ageDef
ect
ive
6.Whatar
etheadv
ant
agesoft
empl
atesov
erdi
agr
ams?
Canbeconv
eni
ent
lymov
edont
hegr
aphpaper
Lessl
abor
ious
Sav
est
ime
Al
loft
heabov
e
Cor
rectanswer
:(D)
Al
loft
heabov
e
7.At
tackst
rat
egi
esar
e
Fr
ont
alat
tack
Fl
ankat
tack
Enci
rcl
ementat
tack
Al
loft
heabov
e
Cor
rectanswer
:(D)
Al
loft
heabov
e
8.Whi
choft
hef
oll
owi
ngar
eassi
gnabl
ecause?
Lar
gev
ari
ati
onsi
nhar
dnessofmat
eri
al
Tool
wear
Er
ror
sinset
ti
ng
Al
loft
heabov
e
Cor
rectanswer
:(D)
Al
loft
heabov
e
9.Whi
choft
hef
oll
owi
ngar
eact
ivi
ti
esofcor
rect
ivemai
ntenance?
Ov
erhaul
i
ng
Emer
gencyr
epai
rs
Modi
fi
cat
ionsandi
mpr
ovement
s
Al
loft
heabov
e
Cor
rectanswer
:(D)
Al
loft
heabov
e
10.Li
mit
ati
onsofTr
adi
ti
onal
costaccount
ingar
e
Assumesf
act
oryasani
sol
atedent
it
y
I
tmeasur
esonl
ythecostofpr
oduci
ng
bot
h(A)and(
B)
noneoft
heabov
e
Cor
rectanswer
:(C)
bot
h(A)and(
B)
11.Whi
chki
ndofdef
ectcanbecal
l
edasmi
nordef
ect
?
Whi
chdoesnotr
educet
heusabi
l
ityoft
hepr
oductf
ori
tsi
ntendeduse
Thecostofr
epai
ri
ngt
hedef
ecti
sless
Bot
h(A)and(
B)
Noneoft
heabov
e
Cor
rectanswer
:(A)
Whi
chdoesnotr
educet
heusabi
l
ityoft
hepr
oductf
ori
tsi
ntendeduse
12.Gener
alEl
ect
ri
cMat
ri
xisdi
vi
dedi
ntohowmanycel
l
s
16
25
Cor
rectanswer
:(B)
13.Whati
sther
easonofexcessi
vef
ri
cti
onbet
weenpar
ts?
I
mpr
operorl
ackofl
ubr
icat
ion
Mat
eri
alofpar
ts
bot
h(A)and(
B)
Noneofabov
e
Cor
rectanswer
:(A)
I
mpr
operorl
ackofl
ubr
icat
ion
14.Capaci
tydeci
sionshav
eadi
recti
nfl
uenceonper
for
manceofpr
oduct
ionsy
stem i
nrespect
of–––––––––
Del
i
ver
yper
for
mance
Qual
i
tycont
rol
Pl
antsi
ze
Manpower
Cor
rectanswer
:(A)
Del
i
ver
yper
for
mance
15.Busi
nessi
srat
edonwhi
chdi
mensi
ons
Mar
ketat
tract
iveness
Busi
nessst
rengt
h
bot
h(A)and(
B)
noneoft
heabov
e
Cor
rectanswer
:(C)
bot
h(A)and(
B)
16.Whi
choft
hef
oll
owi
ngpol
i
ciesi
sadv
isabl
eincaseofl
owpr
oductv
ari
etyandl
argev
olumes?
Ski
l
ledl
abour
,speci
alpur
posemachi
nes
Lowski
l
ledl
abour
,gener
alpur
posemachi
ne
LowSki
l
ledLabour
,Speci
alPur
poseMachi
nes
Anyoft
heabov
e
Cor
rectanswer
:(C)
LowSki
l
ledLabour
,Speci
alPur
poseMachi
nes
17.I
nanor
gani
zat
iont
her
emaynotbeaf
ormal
PPCdepar
tmenti
f
Wor
kishi
ghl
yrepet
it
ivei
nnat
ure
Pl
anni
ngact
ivi
ti
esar
eper
for
medbyt
hel
i
nest
aff
Numberofwor
kmeni
snotv
eryl
arge
Al
loft
heabov
e
Cor
rectanswer
:(D)
Al
loft
heabov
e
18.'
W'i
nSWOTst
andsf
or
Whatdoy
oudowel
l
?
Whatcoul
dyoui
mpr
ove?
Whatdoor
sar
eopent
oyou?
Whatt
hreat
scoul
dhar
myou
Cor
rectanswer
:(B)
Whatcoul
dyoui
mpr
ove?
19.Whi
chki
ndofl
abourf
orcei
srequi
redi
ncaseofJobbi
ngPr
oduct
ion?
Hi
ghl
ySki
l
led
Semi
ski
l
led
Unski
l
led
Anyoft
heabov
e
Cor
rectanswer
:(A)
Hi
ghl
ySki
l
led
20.Whi
choft
hef
oll
owi
ngi
snott
hechar
act
eri
sti
cofPr
ojectPr
oduct
ion?
Cont
inuousf
lowofmat
eri
al
Hi
ghl
ymechani
sedmat
eri
alhandl
i
ng
Vi
rt
ual
l
yzer
omanuf
act
uri
ngcy
clet
ime
Al
loft
heabov
e
Cor
rectanswer
:(D)
Al
loft
heabov
e
Page2of52
1-
Whi
choft
hef
oll
owi
ngi
s(ar
e)i
mpor
tantconsi
der
ati
on(
s)concer
ningact
ivi
tyt
imes?
(A)Act
ivi
tyt
imeshoul
dbeobt
ainedf
rom t
heper
sonr
esponsi
blef
ort
hecompl
eti
onofan
acti
vi
ty
(B)Acti
vi
tyt
imemustbei
ndependentofanyi
nfl
uencewhi
cht
hepr
ecedi
ngorsucceedi
ng
acti
vi
tymayhaveoni
t.
(C)Acti
vi
tyti
memayassumet
hatj
ustt
henor
mal
quant
it
yofr
esour
cesr
equi
redt
ocar
ryoutt
he
acti
vi
tyareavai
l
abl
e.
(
D)Al
loft
heabov
e
2-
Whi
choft
hef
oll
owi
ngar
eassi
gnabl
ecause?
(
A)Lar
gev
ari
ati
onsi
nhar
dnessofmat
eri
al
(
B)Tool
wear
(
C)Er
ror
sinset
ti
ng
(
D)Al
loft
heabov
e
3-
Whati
sther
easonofexcessi
vef
ri
cti
onbet
weenpar
ts?
(
A)I
mpr
operorl
ackofl
ubr
icat
ion
(
B)Mat
eri
alofpar
ts
(
C)bot
h(A)and(
B)
(
D)Noneofabov
e
4-
Whi
chki
ndofl
abourf
orcei
srequi
redi
ncaseofJobbi
ngPr
oduct
ion?
(
A)Hi
ghl
ySki
l
led
(
B)Semi
ski
l
led
(
C)Unski
l
led
(
D)Anyoft
heabov
e
5-
Whati
sthel
ocat
ionofl
owercont
rol
li
miti
ntheXbar
-Rcont
rol
char
t?
(
A)3st
andar
ddev
iat
ionsbel
owcent
ral
li
ne
(
B)2st
andar
ddev
iat
ionsbel
owcent
ral
li
ne
(
C)1st
andar
ddev
iat
ionsbel
owcent
ral
li
ne
(
D)Anyoft
heabov
e
6-Whichphotogr
aphict
echni
quei
susedt
orecor
dpat
hofmot
ionsoft
hemember
soft
hebody
duri
ngmet hodstudy
?
(
A)Acr
ogr
aph
(
B)Cy
clogr
aph
(
C)Cy
clogr
am
(
D)Cy
closcope
7-
Thet
erm_
___
___
_impl
i
est
hef
oregonepr
ofi
tduet
oinabi
l
ityofcompanyt
opr
oduce.
(
A)Oppor
tuni
tycost
(
B)Mar
ginal
cost
(
C)Ov
erheadcost
(
D)Al
loft
heabov
e
8-
IncaseofanOCcur
ve,
ther
iskofr
eject
ingagoodqual
i
tyl
otmayv
arybet
ween_
___
___
_.
(
A)0.
01t
o5%
(
B)0.
01t
o10%
(
C)0.
01t
o15%
(
D)0.
01t
o20%
9-
Obj
ect
iveofWor
kSt
udyi
stoi
mpr
ove_
___
___
(
A)Cy
clet
ime
(
B)Pr
oduct
ivi
ty
(
C)Pr
oduct
ion
(
D)Al
loft
heabov
e
10-
Whi
choft
hef
oll
owi
ngar
eact
ivi
ti
esofcor
rect
ivemai
ntenance?
(
A)Ov
erhaul
i
ng
(
B)Emer
gencyr
epai
rs
(
C)Modi
fi
cat
ionsandi
mpr
ovement
s
(
D)Al
loft
heabov
e
11-
Capaci
tydeci
sionshav
eadi
recti
nfl
uenceonper
for
manceofpr
oduct
ionsy
stem i
nrespect
of__
___
___
(
A)Del
i
ver
yper
for
mance
(
B)Qual
i
tycont
rol
(
C)Pl
antsi
ze
(
D)Manpower
12-
Whi
choft
hef
oll
owi
ngi
snott
hechar
act
eri
sti
cofPr
ojectPr
oduct
ion?
(
A)Cont
inuousf
lowofmat
eri
al
(
B)Hi
ghl
ymechani
sedmat
eri
alhandl
i
ng
(
C)Vi
rt
ual
l
yzer
omanuf
act
uri
ngcy
clet
ime
(
D)Al
loft
heabov
e
13-
Whi
choft
hef
oll
owi
ngPr
inci
plesofManagementi
snotadv
ocat
edbyFW Tay
lor
?
(
A)Sel
ect
ionofbestwor
kerf
oreachpar
ti
cul
art
ask
(
B)Di
vi
sionofwor
kbet
weenwor
kerandmanagement
(
C)Tr
aini
nganddev
elopmentoft
hewor
kmen
(
D)I
nvol
vementofwor
ker
sinst
rat
egypl
anni
ng
14-
Howdoes‘
str
uct
ure’
reduceext
ernal
uncer
tai
ntyar
isi
ngoutofhumanbehav
iour
(
A)Resear
chandpl
anni
ng
(
B)For
ecast
ing
(
C)bot
h(A)and(
B)
(
D)noneoft
heabov
e
15-
Thef
oll
owi
ngi
snotamaj
orcont
ri
but
ori
nthedev
elopmentofCont
rol
Char
tsandSampl
i
ng
pl
an
(
A)FHDodge
(
B)HGRomi
ng
(
C)Wal
terSchewhar
t
(
D)JM Jur
an
16-
Limi
tat
ionsofTr
adi
ti
onal
costaccount
ingar
e
(
A)Assumesf
act
oryasani
sol
atedent
it
y
(
B)I
tmeasur
esonl
ythecostofpr
oduci
ng
(
C)bot
h(A)and(
B)
(
D)noneoft
heabov
e
17-
Busi
nessi
srat
edonwhi
chdi
mensi
ons
(
A)Mar
ketat
tract
iveness
(
B)Busi
nessst
rengt
h
(
C)bot
h(A)and(
B)
(
D)noneoft
heabov
e
18-
Liker
oot
sofat
ree,
___
___
__ofor
gani
zat
ioni
shi
ddenf
rom di
rectv
iew.
(
A)goodwi
l
l
(
B)cor
ecompet
ence
(
C)Hi
ghermanagement
(
D)Capi
tal
inv
est
ment
19-OCcurveofideal
sampli
ngplansuggest
sthatal
ll
otsl
esst
han3%def
ect
iveshav
ethe
probabi
l
ityofaccept
anceof__
_____
_.
(
A)0.
25
(
B)0.
5
(
C)0.
75
(
D)1
20-
Inadequat
epr
oduct
ioncapaci
tyul
ti
mat
elyl
eadst
o
(
A)Poorqual
i
ty
(
B)PoorCust
omerSer
vice
(
C)Poori
nvent
orycont
rol
(
D)Al
loft
heabov
e
Answer
s:
1-(
D),2-(
D),3-
(A),
4-(
A),5-
(A)
,6-
(B)
,7-
(A)
,8-
(B)
,9-
(B)
,10-
(D)
,11-
(A)
,12-
(D)
,13-
(D)
,14-
(C)
,15-
(D)
,
16-(
C),17-(
C),18-
(B)
,19-(
D),
20-
(B)
21-
Organi
zat
ional
model
sar
e
(
A)mul
ti
nat
ional
model
(
B)i
nter
nat
ional
model
(
C)gl
obal
organi
zat
ional
model
(
D)Al
loft
heabov
e
22-
Whi
chki
ndofdef
ectcanbecal
l
edasmi
nordef
ect
?
(
A)Whi
chdoesnotr
educet
heusabi
l
ityoft
hepr
oductf
ori
tsi
ntendeduse
(
B)Thecostofr
epai
ri
ngt
hedef
ecti
sless
(
C)Bot
h(A)and(
B)
(
D)Noneoft
heabov
e
23-
Whi
choft
hef
oll
owi
ngpol
i
ciesi
sadv
isabl
eincaseofl
owpr
oductv
ari
etyandl
argev
olumes?
(
A)Ski
l
ledl
abour
,speci
alpur
posemachi
nes
(
B)Lowski
l
ledl
abour
,gener
alpur
posemachi
ne
(
C)LowSki
l
ledLabour
,Speci
alPur
poseMachi
nes
(
D)Anyoft
heabov
e
24-
Fixedposi
ti
onl
ayouti
sadopt
edwhen
(
A)Pr
oduct
sar
eofdi
ff
erentv
ari
ety
(
B)Pr
oducti
sver
yheav
yinv
olv
ingassembl
yofl
argenumberofpar
ts
(
C)Pr
oduct
sar
einl
argenumber
s
(
D)Al
loft
heabov
e
25-
Scal
emodel
usedf
orl
ayoutanal
ysi
shav
efol
l
owi
ngadv
ant
ages
(
A)Nont
echni
cal
per
sonf
indsi
teasyt
ocompr
ehend
(
B)Ov
erheadf
aci
l
iti
escanbeshown
(
C)Model
scanbeshi
ft
edeasi
l
y
(
D)Al
loft
heabov
e
26-
Whi
choft
hef
oll
owi
ngar
etheobj
ect
ivesofagoodmai
ntenancesy
stem?
(
A)Mi
nimi
sat
ionofwearandt
earofmachi
nes
(
B)Ensur
ingmaxi
mum pl
antav
ail
abi
l
ity
(
C)Bot
h(A)and(
B)
(
D)Noneoft
heabov
e
27-
Whatdoyouunderst
andbyt
hei
nspect
ionconduct
edonal
lnonr
ewor
kabl
ejobspr
iort
othei
r
movementt
othescrapyar
d?
(
A)Fi
nal
inspect
ion
(
B)Endur
ancei
nspect
ion
(
C)Funct
ional
inspect
ion
(
D)Sal
vagei
nspect
ion
28-
The_
___
___
_ist
hedef
ectl
evel
forwhi
chl
otsar
eregar
dedasbadl
ots.
(
A)Accept
abl
equal
i
tyl
evel
(
B)Consumer
’sr
isk
(
C)Pr
oducer
’sr
isk
(
D)LotTol
erancePer
cent
ageDef
ect
ive
29-
Gener
alEl
ect
ri
cMat
ri
xisdi
vi
dedi
ntohowmanycel
l
s
(
A)4
(
B)9
(
C)16
(
D)25
30-
Inanor
gani
zat
iont
her
emaynotbeaf
ormal
PPCdepar
tmenti
f
(
A)Wor
kishi
ghl
yrepet
it
ivei
nnat
ure
(
B)Pl
anni
ngact
ivi
ti
esar
eper
for
medbyt
hel
i
nest
aff
(
C)Numberofwor
kmeni
snotv
eryl
arge
(
D)Al
loft
heabov
e
31-
Whi
choft
hef
oll
owi
ngi
snotat
ypeofspeci
fi
cat
ion?
(
A)Mat
eri
alspeci
fi
cat
ions
(
B)Di
mensi
onal
speci
fi
cat
ions
(
C)Manpowerspeci
fi
cat
ion
(
D)Per
for
mancespeci
fi
cat
ions
32-
Whi
char
ethr
eedi
ff
erentbasest
oest
abl
i
shanact
ivi
tyt
ime?
(
A)Pastexper
ience
(
B)Judgement
(
C)Hi
stor
ical
dat
a
(
D)Al
loft
heabov
e
33-I
nher
entSafet
y’i
soneoft
hepr
inci
pleofgoodl
ayout
.Incont
extofl
ayout
,thi
scanbe
achi
evedbythefol
lowi
ng
(
A)Cl
eargangway
(
B)Locat
ionofmat
eri
alandmat
eri
alhandl
i
ngsy
stem
(
C)Bot
h(A)and(
B)
(
D)Noneoft
heabov
e
34-
Cont
rol
shoul
dinv
olv
e__
___
___amountofi
nfor
mat
ion.
(
A)Mi
nimum
(
B)Suf
fi
cient
(
C)Maxi
mum
(
D)Anyoft
heabov
e
35-
A/An___
___
__hist
orycardi
sther
ecordofal
lrepai
rs,
repl
acement
sandengi
neer
ingchanges
car
ri
edouti
ntheequipmentdur
ingi
t’
speri
odofservi
ce.
(
A)Ser
vice
(
B)Equi
pment
(
C)Repai
r
(
D)Noneoft
heabov
e
36-
Whatar
etheadv
ant
agesoft
empl
atesov
erdi
agr
ams?
(
A)Canbeconv
eni
ent
lymov
edont
hegr
aphpaper
(
B)Lessl
abor
ious
(
C)Sav
est
ime
(
D)Al
loft
heabov
e
37-
Anappr
oacht
hatst
ri
vest
ofol
l
owet
hical
pri
nci
plesandper
cept
sis
(
A)Mor
almanagement
(
B)Amor
almanagement
(
C)I
mmor
almanagement
(
D)Noneoft
heabov
e
38-
‘
W’i
nSWOTst
andsf
or
(
A)Whatdoy
oudowel
l
?
(
B)Whatcoul
dyoui
mpr
ove?
(
C)Whatdoor
sar
eopent
oyou?
(
D)Whatt
hreat
scoul
dhar
myou
39-
___
___shoul
dhav
etheabi
l
ityt
odev
elopav
isi
ont
oseepat
ter
nsi
ntot
hef
utur
e.
(
A)Leader
s
(
B)Wor
ker
s
(
C)Management
(
D)Noneoft
heabov
e
40-
Att
ackst
rat
egi
esar
e
(
A)Fr
ont
alat
tack
(
B)Fl
ankat
tack
(
C)Enci
rcl
ementat
tack
(
D)Al
loft
heabov
e
Answer
s:
21-
(D)
,22-
(A)
,23-
(C)
,24-
(B)
,25-
(D)
,26-
(C)
,27-
(D)
,28-
(D)
,29-
(B)
,30-
(D)
,31-
(C)
,32-
(D)
,33-
(C)
,
34-
(A)
,35-
(B)
,36-
(D)
,37-
(A)
,38-
(B)
,39-
(A)
,40-
(D)
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ibd
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ch
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ch
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Pr
oduct
ionManagement15Sol
vedMCQSPar
t1
1.Whi
choft
hef
oll
owi
ngf
unct
ionsi
snotacor
efunct
ionofanor
gani
zat
ion
a.Theaccount
ingandfi
nancefuncti
onb.Themarketi
ng(i
ncl
udingsal
e)f
unct
ionc.The
operat
ionf
uncti
ond.Theproductorser
vicedev
elopmentf
uncti
on
2.Mostoperat
ionproduceami xt
ureofbothproduct
sandser
viceswhi
choft
hef
oll
owi
ng
busi
nessiscl
osestt
opr oduci
ng‘pur
e’ser
vices?
a.I
Tcompany
b.Counsel
or/
ther
api
stc.St
eel
company
d.Ar
est
aur
ant
3.Operati
onscanbeclassi
fiedaccor
dingtot
hei
rvol
umeandv ar
iet
yofpr
oduct
ionaswel
las
thedegreeofvar
iati
on&v i
sibi
li
ty.Whichoft
hef
oll
owingoper
ati
onswoul
dbeclassi
fi
edashi
gh
volume, l
owvari
ety?
a.Af
rontof
fi
cebankb.Af
ami
l
ydoct
orc.Acar
pent
erd.Af
astf
oodr
est
aur
ant
4.Whi
choft
hef
oll
owi
ngact
ivi
ti
esi
snotadi
rectr
esponsi
bil
i
tyofoper
ati
onsmanagement
?
a.Developi
nganoperati
onsstr
ategyf ort
heoperat
ionb.Pl
anning&contr
oll
i
ngtheoper
ati
onsc.
Determini
ngtheexactmixofproductsandservi
cesthatcust
omerswill
wantd.Desi
gni
ngthe
operati
onsproduct
s,servi
ces&pr ocess
5.Operationscanbecl
assif
iedaccordi
ngtothedegreeofv ari
ati
onsindemandandvi
sibi
l
ityof
theoperat
ionsaswel
lasthei
rv ol
umeandv ari
etyofproducti
onwhi choft
hefol
l
owing
operati
onswouldbecl
assi
fi
edashi ghvari
ati
on&highv isi
bil
it
y?
a.Af
rontof
fi
cest
aff
b.Af
ami
l
ydoct
orc.Acar
pent
erd.Af
astf
oodr
est
aur
ant
6.Whichoft
hef
oll
owi
ngwoul
dnotbenor
mal
l
ybeconsi
der
edagener
alchar
act
eri
sti
csofa
ser
vice?
a.Producti
onandconsumptionaresi
multaneousb.Lowcontactser
vicecanoftenbemade
moreef f
ici
entt
hanhighcontract
c.Pr
oducti
onandconsumpt ioncanalwaysbespati
all
y
separat
edd.Manyservicesi
nvolv
ebothtangibl
e&intangi
bleoutput
se.Product
ion&sales
cannoteasil
ybeseparatedf
uncti
onal
ly
7.Whi
chofthefol
l
owi
ngwoul
dnotbenor
mal
l
yconsi
der
edasakeyf
eat
ureofoper
ati
ons
management?
a.Mostnewt echnologyisi
mplement
edb.Worl
dcl
assoperati
onscangiveanorgani
zati
on
competit
iveadvantagec.Oper
ati
onsr
esear
chesmathemat
icaltechni
quesf
oropti
mizing
process
d.Operat
ionsisthepartofanorgani
zat
ionwhi
chcreat
eswealt
hthr
ought
hemanagementof
thet
ransformati
onprocesse.Oper
ati
onsist
heareaofabusi
nesswher
emostpeopl
e
8.Whi
choft
hef
oll
owi
ngi
sthel
eastl
i
kel
ydeci
siont
obemadebyoper
ati
onsmanager
s?
a.Sel
ecti
ngt helocat
ionsandlayoutofafaci
l
ity
b.Designi
ngandimpr ov
ingthej
obsofthe
workspacec.Howt ousequal i
tyt
echni
questoreducewasted.Deci
dingwhichmarketar
east
o
manufactureproduct
sf ore.Howmuchcapaci t
yisrequi
redtobal
ancedemand
9.Oper
ati
onsmanagementi
sappl
i
cabl
e
a.Most
lyt
otheser
vicesect
orb.Toservi
cesexcl
usi
vel
yc.Mostl
ytothemanufact
uri
ngsect
ord.
Tothemanuf
act
uri
ng&ser v
icesect
orse.Tot
hemanufactur
ingsect
orexcl
usi
vely
10.Thef
iel
dofoper
ati
onsmanagementi
sshapedbyadv
ancesi
nwhi
choft
hef
oll
owi
ngf
iel
ds?
a.Chemi
str
yandphysi
csb.I
ndustri
alengi
neer
ing&managementsci
encec.Bi
ologyand
anat
omyd.I
nfor
mati
onsciencee.Al
loftheabove
11.Thef
iveel
ementi
nthemanagementpr
ocessar
e
a.Plan,dir
ect, update,lead&surpri
seb.Accounti
ng/
finance,marketi
ng,operati
onsand
management c.Organize, pl
an,cont
rol
,staf
fandmanaged.Plan,organi
ze,staff,l
eadand
cont
role.Plan,lead,organize,manageandcontrol
12.Ther
esponsi
bil
i
tiesoft
heoper
ati
onsmanageri
ncl
ude
a.Planning,
organizi
ng, st
affi
ng, pr
ocuringandrevi
ewingb.Forecasting,designi
ng,pl
anni
ng,
organizi
ng,andcontroll
i
ngc.Forecasting,desi
gning,
operati
ng, procuri
ng, andrevi
ewi
ngd.
Planning,or
ganizi
ng, st
affi
ng, l
eading,andcontrol
li
nge.Designing&oper ati
ng
13.Whi
choft
hef
oll
owi
ngi
snotanel
ementofmanagementpr
ocess
a.Pr
ici
ngb.St
aff
ingc.Pl
anni
ngd.Cont
rol
l
inge.Leadi
ng
14.Whi
choft
hef
oll
owi
ngi
l
lust
rat
eanact
ivi
tyt
hatdoesnotaddv
alue?
a.Tr
aini
ngempl oy
eesb.Or
deri
ngpar
tsf
rom asuppl
i
erc.Maki
ngapar
td.Accumul
ati
ngpar
tsi
n
fr
ontofthenextworkcent
re
15.Whi
choft
hef
oll
owi
ngst
atement
sregar
dingapul
lsy
stem i
str
ue?
a.Largel
otsarepull
edfr
om upstream st
ati
onsb.Wor
kispul
ledt
ot hedownst r
eam wor
k
stat
ionsbef
oreiti
sactual
lyneededc.Manufact
uri
ngcycl
eti
meisincreasedd.Probl
ems
becomemor eobvious-
--
--
--
--
--
--
--
--
---
--
--
--
--
--
-
1.
a
2.
b
3.d
4.C
5.b
6.
c
7.
d
8.d
9.
C
10.b
11.c
12.d
13.
a
14.d
15.d
MCQ: Unit-1: introduction to Operations and Supply Chain management
1."Quality is defined by the customer" is :

An unrealistic definition of quality
A user-based definition of quality
A manufacturing-based definition of quality
A product-based definition of quality
2. According to the manufacturing-based definition of quality

quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards
3. The supply chain concept originated in what discipline?
a) marketing
b) operations
c) logistics
d) production
4. Zero defects in manufacturing is
a. is a relevant goal only in electronic assembly
b. is readily achievable in all areas
c. is the goal of TQM
d. is an unobtainable and misleading idea
5. The supply chain management philosophy emerged in which decade?
1960s
1970‟s
1980s
1990s
6. A ____________ encompasses all activities associated with the flow and transformation of
goods from the raw material stage, through to the end user, as well as the associated information
flows.
production line
supply chain
marketing channel
warehouse
7. Which one of the following is not a typical question dealt with by an operations managers?
How much capacity will be needed in the months ahead?
What is a satisfactory location for a new facility?
How to motivate employees?
All are typical of operations decisions.
8. Which of the following are not key attributes of supply chain management?
inventory control
leveraging technology
customer power
all are key attributes
9. Positive, long-term relationships between supply chain participants refer to:
Co-opetitions
tailored logistics
partnerships
supply chain management
10. Which one of the following best represents a pure good?

Soap
Fast food
Attending a play
Vehicle repair
11. Which of the following statements is true of LEAN?

Lean principles focus on advanced statistical methods
Lean principles are separate body of knowledge
Lean principles have been developed over a lengthy period of time.
Lean principles include reducing waste.
12. The bullwhip effect:

is an ineffective way to motivate warehouse employees
applies to rodeos and has nothing to do with supply chain management
refers to the “swaying” motion associated with triple trailers
Refers to variability in demand orders among supply chain participants.
"quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost"
14. The variability in demand orders among supply chain participants:

cannot be controlled
refers to the bullwhip effect
can be controlled with electronic order placement
is more pronounced in relational exchanges
16. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
third-party logistics
supply chain collaboration
dovetailing
relationship marketing
17. Process improvement technique that sorts the "vital few" from the "trivial many" is
Taguchi analysis
Pareto analysis
benchmarking
Yamaguchi analysis
18. A fishbone diagram is also known as a
cause-and-effect diagram
poka-yoke diagram
Kaizen diagram
Taguchi diagram
19. Which of the following functions is not a core function of an organisation?

The Product/Service Dev.Function
The Operations Function
The Marketing ( Including Sales ) Function
The accounting and finance function
20. What is a perfect order?
simultaneous achievement of relevant customer metrics
an order that arrives on time
an order that arrives undamaged
an order that is easy for the receiver to fill
21. Total Quality Management emphasizes

the responsibility of the Quality Control staff to identify and solve all quality-related
problems
A commitment to quality that goes beyond internal company issues to suppliers and
customers
A system where strong managers are the only decision makers
A process where mostly statisticians get involved
22. "Quality is defined by the customer" is

an unrealistic definition of quality
a user-based definition of quality
a manufacturing-based definition of quality
a product-based definition of quality
the definition proposed by the American Society for Quality Control
23. Which of the following is not one of the major categories of costs associated with quality?
prevention costs
appraisal costs
internal failures
none of the above, they are all major categories of costs associated with quality
24. According to the manufacturing-based definition of quality,
quality is the degree of excellence at an acceptable price and the control of variability
at an acceptable cost
25. An important feature of supply chain management is its application of electronic commerce
technology that allows companies to share and operate systems for:
Order processing, transportation scheduling, and inventory management
cost-effective flowing of raw materials
future purchasing of computer systems
future merger opportunities
26. Lean production involves
Elimination of cost only
Improvement of quality only
Improvement of speed only
Elimination of all types of waste
27. All of the following costs are likely to decrease as a result of better quality except
customer dissatisfaction costs
maintenance costs
scrap costs
warranty and service costs
28. Inspection, scrap, and repair are examples of
internal costs
external costs
costs of dissatisfaction
societal costs
29. Which of the following activities is not a direct responsibility of operations management?
Determining the exact mix of products and services that the customers will want
Designing the operation's products,services and processes
Developing an operations strategy for the operations
Planning and controlling the operation
30. Total Quality Management emphasizes
the responsibility of the Quality Control staff to identify and solve all quality-related
problems
a commitment to quality that goes beyond internal company issues to suppliers
and customers
a system where strong managers are the only decision makers
a process where mostly statisticians get involved
31. A successful TQM program incorporates all of the following except
continuous improvement
employment involvement
benchmarking
centralized decision making authority
32. Which of the following would not be normally considered as a key feature of Operations
Management?
Operations is the part of an organisation which creates wealth through the management of
the transformation process
World class Operations can give an organisation competitive advantage
Most new technology is implemented in Operations areas
Operations is the area of a business where most people work
33. "Kaizen" is a Japanese term meaning

a foolproof mechanism
Just-in-time (JIT)
a fishbone diagram
continuous improvement
34. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
Taguchi Loss Function
Pareto Chart
ISO 9000 Quality Cost Calculator
Process Chart
35. A quality loss function utilizes all of the following costs except
the cost of scrap and repair
the cost of customer dissatisfaction
inspection, warranty, and service costs
sales costs
costs to society
36. Which of the following is the least likely decision to be made by Operations Managers?
Selecting the location and layout of a facility
Deciding which market areas to manufacture products for
How much capacity is required to balance demand
Designing and improving the jobs of the workforce
37. Pareto charts are used to

identify inspection points in a process
outline production schedules
organize errors, problems or defects
show material flow
38. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of
events through which a product travels is a
Pareto chart
Flow chart
check sheet
Taguchi map
39. Which one of the following would not generally be considered an aspect of operations
management?
Work methods
Secure financial resources
Maintain quality
Product or service design
40. Which one of the following is not a typical question dealt with by an operations managers?
How to motivate employees?
41. A worker operates a shear press. She notices that the metal sheets she is cutting have curled
edges. Who should get the first "shot" at solving the problem?
the foreman
a member of the Quality Control department
the operator herself
the employee's supervisor
42. Which of the following is not a key activity of an operations manager?

Understanding the needs of customer
Continually learning
Managing cash flows
Exploiting technology to produce goods and services
43. A recent consumer survey conducted for a car dealership indicates that, when buying a car,
customers are primarily concerned with the salesperson's ability to explain the car's features, the
salesperson's friendliness, and the dealer's honesty. The dealership should be especially
concerned with which dimensions of service quality?
communication, courtesy, and credibility
competence, courtesy, and security
competence, responsiveness, and reliability
communication, responsiveness, and reliability
44. Which one of the following best represents a pure service?
Bank loans
Computer diagnosis and repair
Attending a theatre play
Fast food restaurant
45. Which one of the following best represents a pure good?
Salt
Fast food
Attending a play
Vehicle repair
management?
Schedule work
Secure financial resources
Maintain quality
Oversee the transformation process
47. Which one of these was not mentioned in the list of recent trends in operations management?
Total quality management
Worker involvement
Global competition.
Automation.
48. Which came last in the development of manufacturing techniques?
Lean production.
Division of labor.
Mass production.
Craft production.
49. Which function typically employs more people than any other functional area?
Information System
Operations
Marketing
Finance
50. Which of the following is not a type of operations?

Goods production
storage/transportation
entertainment
price reduction
51. Which of the following is not true about a lean production system?
It puts emphasis on quality, flexibility, and time reduction.

It puts emphasis on reducing a company's labor force.
It is involved in maintaining and improving the system with lower amounts of
inventory.
It relies on buffers against unforeseen occurrences.
52. The inputs to a transformation process include all of the following except
Material
People
Information
Assembly
53. ____ is an example of a pure good.

Restaurant
Dentist
Coal Mining
Education
54. Which one of the following is not a typical question dealt with by an operations manager?
Which products/services should be offered?
55. Which one does not use operations management?
A CPA firm.
A bank.
A hospital
They all use it.
56.Zero defects in manufacturing

is an unobtainable and misleading ideal
is the goal of TQM
is readily achievable in all areas
is a relevant goal only in electronic assembly
57. Which one is not generally considered an advantage of using models for decision-making?
Providing a systematic approach to problem solving.
Emphasizing quantitative information.
Providing an exact representation of reality.
Requiring users to be specific about objectives.
58. ”Quality is conformance to specifications”-This definition of quality is from point of view of
Customer
Manufacturer
Quality Circle Forum
TQM

Lean production.
Division of labor.
Mass production.
Interchangeable parts.
60. The goal of Total Quality Management is:
Customer satisfaction
Product differentiation
Brand equity
Acting globally
61. Which of the following is not a typical supply chain member?
Retailer‟s Creditor
Wholesaler
Producer
Customer
62. Quality is both quantitative and
Supportive
Qualitative
Measurable
Conclusive
63. When suppliers, distributors, and customers partner with each other to improve the
performance of the entire system, they are participating in a ________
Channel Of Distribution
Value Delivery Network
Supply Chain
Supply And Demand Chain
64. A company's channel decisions directly affect every ________.
customer's choices
employee in the channel
channel member
Marketing decision.
65. From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products wanted
by ________ Channel members.
manufacturers
marketers
distributors
consumers
66. Intermediaries play an important role in matching ________.
dealer with customer
manufacturer to product
information and promotion
supply and demand
67. Marketing logistics involves getting the right product to the right customer in the right place
at the right time. Which one of the following is not included in this process?
implementing the plan for the flow of goods and services
planning the physical flow of goods and services
controlling the physical flow of goods, services, and information
gathering customer's ideas for new products
68. Raw materials and specialised services procured are converted into useful service offerings
and finaly distributed to customers in following Industry
Hotel
Cement
Sugar
Refinery
69. Which of the following is not an area of responsibility for a logistics manager?
inventory
purchasing
warehousing
marketing
70. To reduce inventory management costs, many companies use a system called ________,
which involves carrying only small inventories of parts or merchandise, often only enough for a
few days of operation.
reduction-inventory management
economic order quantity
just-in-time logistics
limited inventory logistics
71. A Supply Chain includes the chain of entities involved in the
planning,procurement,production and ------------- of products and services
Distribution
Supply
Demand
Transport
72. In a SC,Material flows in one direction while _________from in both direction
Process
Information
Product
Semifinished Goods
73. Companies manage their supply chains through ________.
information
transportation modes
competitors
the Internet
skilled operators
74. Julie Newmar recognizes that her company needs to provide better customer service and trim
distribution costs through teamwork, both inside the company and among all the marketing
channel organizations. Julie will begin the practice of ________.
intermediation
customer relationship management
horizontal marketing system management
75. There are four generic processes involved in any SCM-Planning for operations,Sourcing
decisions,Manufacturing related activities and
Purchase
Inventory
Information
Distribution

77. Today, a growing number of firms now outsource some or all of their logistics to ________
intermediaries.
competitors
third-party logistics providers
channel members
cross-functional teams
78. Most operations produce a mixture of both products and services. Which of the following
businesses are closest to producing “pure” services?
Counsellor/Therapist
Restaurant
IT company
Steel company
79. If a sample of parts is measured and the mean of the measurements is outside the control
limits the process is
in control, but not capable of producing within the established control limits
out of control and the process should be investigated for assignable variation
within the established control limits with only natural causes of variation
monitored closely to see if the next sample mean will also fall outside the control
limits
80. A quality circle holds a brainstorming session and attempts to identify the factors responsible
for flaws in a product. Which tool do you suggest they use to organize their findings?
Ishikawa diagram
Pareto chart
process chart
control charts
81. When a sample measurement falls inside the control limits, it means that
each unit manufactured is good enough to sell

the process limits cannot be determined statistically
the process output exceeds the requirements
if there is no other pattern in the samples, the process is in control
82. Which of the following statements is true of LEAN?

Lean principles focus on advanced statistical methods
Lean principles are separate body of knowledge
Lean principles have been developed over a lengthy period of time.
Lean principles include reducing waste.

Supermarket
Bank
Hospital
They all use it.
84. The trend in organizations is to place the SCM function:
Under the manufacturing function
Under the finance function
Under the engineering function
At the same level as the other major functions
85. Which of the following is NOT a factor affecting the supply chain?
Reduced number of suppliers
Increased competition
Longer product life cycles
Increased opportunities to strategically use technology
86. If two potential suppliers can deliver a part with the same quality and prices, the selection
should be based on:
Age of the firms
A coin flip
Outside evaluation
The capabilities and flexibilities of the firms
87. Just-in-time/SCM purchasing requires the following condition:

Many suppliers
Short-term contracts
Cooperation between purchasing and suppliers
Continuous competitive bidding
88. The amount of inventory kept at each stock point in a warehouse network is usually based
on:
Minimizing transportation costs
Constant demand
Tradeoffs between warehousing, inventory, and transportation costs
Product pricing strategy
89. Which of the following is true regarding control charts?

Values above the upper and lower control limits indicate points out of adjustment.
Control charts are built so that new data can be quickly compared to past performance
data.
Control charts graphically present data.
All of the above are true.
90. The goal of inspection is to
detect a bad process immediately
add value to a product or service
correct deficiencies in products
correct system deficiencies
91. Which of the following is not a typical inspection point?
upon receipt of goods from your supplier
during the production process
before the product is shipped to the customer
at the supplier's plant while the supplier is producing
after a costly process
92. What name is often given to the Japanese „total approach‟ to removing anything that does not
add value to the final product?
Jobbing processes
Lean production processes
Continuous processes.
Batch processes.
94. The most common form of quality control includes:

Planning
Organizing
Inspection
Directing
95. Which of the following is not a typical supply chain member?
Retailer‟s creditor
wholesaler
reseller
producer
a. "quality is the degree of excellence at an acceptable price and the control of variability at
an
acceptable cost"
b. quality depends on how well the product fits patterns of consumer preferences
c. even though quality cannot be defined, you know what it is
d. quality is the degree to which a specific product conforms to standards
97. TQM refers to
a. total quantity management
b. total quality management
c. total quality marketing
d. total quotient management
98. When suppliers, distributors, and customers collaborate with each other to improve the
performance of the entire system, they are participating in a ________
a) channel of distribution
b) value delivery network
c) supply chain
d) supply and demand chain
99. A company's channel decisions directly affect every ________.

a) customer's choices
b) employee in the channel
c) channel member
d) competitor's actions
100. A supply chain is a sequence of firms that perform activities required:

a. to find products that are similar
b. to facilitate wholesalers inventory selections
c. to create synergy in their training programs
d. to create and deliver goods to consumers
101. A supply chain is essentially a sequence of linked:
a. customer and prospects
b. supplier and manufacturer
c. suppliers and customers
d. warehousing and wholesaling units
102. From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products wanted
by ________Channel members.
a) manufacturers
b) marketers
c) distributors
d) consumers
103. Intermediaries play an important role in matching ________.
a) dealer with customer
b) manufacturer to product
c) information and promotion
d) supply and demand
104. Marketing logistics involves getting the right product to the right customer in the right place
at the right time. Which one of the following is not included in this process?
a) implementing the plan for the flow of goods and services
b) planning the physical flow of goods and services
c) controlling the physical flow of goods, services, and information
d) gathering customer's ideas for new products
105. A supply chain is a sequence of firms that perform activities required:

e. to find products that are similar
f. to facilitate wholesalers inventory selections
g. to create synergy in their training programs
h. to create and deliver goods to consumers
106. A supply chain is essentially a sequence of linked:
e. customer and prospects
f. supplier and manufacturer
g. suppliers and customers
h. warehousing and wholesaling units
107. Which of the following is not an area of responsibility for a logistics manager?
a) inventory
b) purchasing
c) warehousing
d) marketing
108. To reduce inventory management costs, many companies use a system called ________,
which involves carrying only small inventories of parts or merchandise, often only enough for a
few days of operation.
a) reduction-inventory management
b) supply chain management
c) economic order quantity
d) just-in-time logistics
109. Companies manage their supply chains through ________.
a) information
b) transportation modes
c) competitors
d) the Internet
110. Julie Newmar recognizes that her company needs to provide better customer service and
trim distribution costs through teamwork, both inside the company and among all the marketing
channel organizations. Julie will begin the practice of ________.
a) intermediation
b) customer relationship management
c) integrated logistics management
d) supply chain management
111. Today, a growing number of firms now outsource some or all of their logistics to ________
intermediaries
a) competitors
b) third-party logistics providers
c) channel members
d) cross-functional teams
112. Supply chain concept originated in what discipline?
a) marketing
b) operations
c) logistics
d) production
113. A restaurant is an example of a
a. major service with accompanying goods and services
b. hybrid
c. pure service
d. pure tangible good
114. The supply chain management philosophy emerged in which decade?
a) 1960s
b) 1970s
c) 1980s
d) 1990s
115. A ____________ encompasses all activities associated with the flow and transformation of
goods from the raw material stage, through to the end user, as well as the associated information
flows.
a) production line
b) supply chain
c) marketing channel
d) warehouse
116. Which of the following are not key attributes of supply chain management?
a) inventory control
b) leveraging technology
c) c. customer power
d) all are key attributes
117. Positive, long-term relationships between supply chain participants refer to:
a) co-opetitions
b) tailored logistics
c) partnerships
d) supply chain management
118. The bullwhip effect:

a) is an ineffective way to motivate warehouse employees
b) applies to rodeos and has nothing to do with supply chain management
c) refers to the “swaying” motion associated with triple trailers
d) refers to variability in demand orders among supply chain participants.
119. The variability in demand orders among supply chain participants:

a) cannot be controlled
b) refers to the bullwhip effect
c) can be controlled with electronic order placement
d) is more pronounced in relational exchanges
120. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
a) third-party logistics
b) supply chain collaboration
c) dovetailing
d) relationship marketing
121. What is a perfect order?
a) simultaneous achievement of relevant customer metrics

b) an order that arrives on time
c) an order that arrives undamaged
d) an order that is easy for the receiver to fill
122. Which of the following is NOT a reason that companies are depending more on their
suppliers?
a) More focus on core competencies
b) Need for more flexibilities
c) Desire to share risks
d) More control over their suppliers
123. Which of the following is NOT a benefit of SCM Purchasing?
a) Consistent quality
b) Savings on resources
c) Lower costs
d) Less dependence on suppliers
124. What term describes a vertical expansion of job duties in order to give the worker more
responsibility?
a) Job enlargement
b) Job rotation
c) Job enrichment
d) Job design
125. What are the two basic types of production systems?

a) Automated and manual
b) Intermittent and non-intermittent process
c) Normal and continuous process
d) Continuous process and batch
126. What type of process would a paper mill be most likely to use?
a) Continuous flow
b) Project
c) Job shop
d) Flow shop
127. What technique deals with the problem of supplying sufficient facilities to production lines
or individuals that require uneven service?
a) Supply-demand theory
b) PERT
c) Inventory theory
d) Queuing theory
128. A manufacturer has been receiving excessive numbers of defective standard machine parts
from a vendor on a regular basis. What is the most effective way to design a formal inspection
system for incoming parts?
a) Queuing analysis
b) Time series analysis
c) Statistical quality control
d) Regression analysis
129. A set of simultaneous equations that has more variables than constraints has
a) no solution
b) an infinite number of solutions
c) a finite solution
d) an infinite solution
130. In a PERT/CPM network, computing the critical path requires
a) determining the total project duration
b) assigning the earliest finish time for an activity as the earliest start time for the
next
c) that the latest finishing time for an activity not delay the overall project beyond initial
expectation
d) a sophisticated and complex computer program
131. At the completion of the forward and backward passes, the slack for an activity is given by
the
a) difference between early start and early finish
b) difference between early start and latest finish
c) difference between latest start and early finish
d) amount of idle labor on the critical path
MCQ: Unit -2: Operation processes
1.What type of process would a Cement plant be most likely to use?

a. Continuous flow
b. Project c
c. Job shop
d. Flow shop
2. Process selection is primarily considered during:
a) Planning
b) Organizing
c) Leading
d) Controlling
3. What type of process would a fertilizer plant be most likely to use
a. Continuous
b. Project
c. Job
d. Flow shop
4. The type of operation being carried out by an organization depends upon:
a) Degree of standardization
b) Volume of output
c) Demand
d) Both (a) and (b)
5. Repetitive processing results in output that is:
a) Highly standardized
b) Highly customized
c) Partially customized
d) None of the given options
6. Construction of fertilizer plant is
a. Continuous
b. Project
c. Job
d. Flow shop
7. The inputs to a transformation process include all of the following except
a. Material
b. People
c. Information
d. Transportation
8. Job shop and batch processing are differentiated on the basis of:
a) Job requirements
b) Degree of standardization
c) Volume of output
d) Both (b) and (c)
9. Automation is preferred because it:
a) Offers lesser dependence on workers
b) Results in reduction in variable cost
c) Offers easy handling of repetitive work
d) All of the given options
10. Product layout is preferably used for:
a) Repetitive processing
b) Intermittent processing
c) Both (a) and (b)
d) Neither (a) nor (b)
11. What are the two basic types of production systems?
a. Automated and manual
b. Intermittent and non-intermittent process
c. Normal and continuous process
d. Continuous process and batch
12. Process layout is used for:
a) Repetitive processing
b) Intermittent processing
c) Both (a) and (b)
d) Neither (a) nor (b)
13. The most significant advantage of U-shaped layout is:
a) Cost minimization
b) Easy handling of process
c) Increased flexibility in work
14. The goal of motion study is to achieve:
a) Cost minimization
b) Maximum efficiency
c) Profitability
15. Location decisions are viewed primarily as part of:
a) Marketing strategy
b) Growth factors
c) Financial aspect
d) Both (a) and (b)
16. Regional factors for location planning include all of the following except:
a) Raw materials
b) Markets
c) Labor considerations
d) Attitudes
17. Transportation method is a __________ approach.
a) Quantitative
b) Qualitative
c) Scientific
18. Poor quality adversely affects:
a) Costs
b) Productivity
c) Profitability
20. A product performing consistently refers to which of the following dimensions of quality:
a) Safety
b) Conformance
c) Durability
d) Reliability
21. What type of process would a paper mill be most likely to use?
a. Continuous flow
b. Project
c. Job shop
d. Flow shop
a) goods production
b) storage/transportation
c) entertainment
d) all the above involve operations
23. Technology choices seldom affect:
a) Costs.
b) Productivity.
c) Union activity.
d) quality
24. Measurements taken at various points in the transformation process for control purposes are
called:
a) plans
b) directions
c) controls
d) feedback
25. Which of the following would not be an operations activity in a fast-food restaurant?
a. Advertising new salad dishes

b. Purchasing tomatoes
c. Planning the layout of the serving areas
d. Cooking panir palak and dal makhani
26. Budgeting, analysis of investment proposals, and provision of funds are activities associated
with the _______ function.
a) operation
b) marketing
c) purchasing
d) finance
27. Which one of the following would not generally be classified under the heading of
transformation?
a) assembling
b) teaching
c) staffing
d) farming
28. Manufacturing work sent to other countries is called:
a) downsized
b) outsourced
c) internationalization
d) vertical integration
29. What name is often given to processes which involve the manufacture of a unique item from
beginning to end?
a. Jobbing processes
b. Continuous processes.
c. Lean production processes.
d. Batch processes.
30. Product design and process selection are examples of _______ decisions.
a) financial
b) tactical
c) system design
d) system operation
31. The responsibilities of the operations manager are:
a) planning, organizing, staffing, procuring, and reviewing
b) planning, organizing, staffing, directing, and controlling
c) forecasting, designing, planning, organizing, and controlling
d) forecasting, designing, operating, procuring, and reviewing
32. Which of these layouts is most suitable for processing sugar from sugar beets or sugar cane?
a. process-oriented layout
b. fixed-position layout
c. focused factory
d. product-oriented layout
33. Which of the following is not true about systems approach?
a) A systems viewpoint is usually beneficial in decision making.
b) A systems approach emphasizes interrelationships among subsystems.
c) A systems approach concentrates on efficiency within subsystems.
d) A systems approach is essential whenever something is being redesigned or
improved.
34. What is credited with gains in industrial productivity, increased standards of living and
affordable products?
a) personal computers b. the internet
c. mass transportation
d. assembly lines
35. Which of the following is an example of a Service Business?
a. Law firm
b. Hospital
c. Bank
d. Retail store
e. All of the above
36. Production systems with customized outputs typically have relatively:
a) high volumes of output
b) low unit costs
c) high amount of specialized equipment
d) skilled workers
37. According to the Chase and Dasu (2001) study which of the following are behavioral
concepts that should be applied to enhance customer perceptions of a service encounter?
a. Flow of the service experience
b. Flow of time
c. Judging encounter performance
d. All of the above
e. None of the above
38. Which is not a significant difference between manufacturing and service operations?
a) cost per unit
b) uniformity of output
c) labor content of jobs
d) Measurement of productivity.
39. Which of the following is not a characteristic of service operations?
a) intangible output
b) high customer contact
c) high labor content
d) easy measurement of productivity
e) low uniformity of output
40. Which of the following is a recent trend in business?
a) pollution control
b) total quality management
c) supply chain management
d) competition from foreign manufacturers
e) technological change
41. Farming is an example of:
a) an obsolete activity
b) a virtual organization
c) non-manufactured goods
d) a growth industry
e) customized manufacturing
42. Service strategy development begins by selecting which of the following as an operating
focus or performance priority?
a. Price
b. Quality
c. Variety
d. Treatment
e. All of the above
43. Dealing with the fact that certain aspects of any management situation are more important
than others is called:
a) analysis of tradeoffs
b) sensitivity analysis
c) recognition of priorities
d) analysis of variance
e) decision table analysis
44. The fact that a few improvements in a few key areas of operations will have more impact
than many improvements in many other areas is consistent with the:
a) Irwin phenomenon
b) Pareto phenomenon
c) Stevenson phenomenon
d) Tellier phenomenon
e) Adam Smith phenomenon
45. Which of the following “best practices emphasized by service executives” had the highest
mean emphasize rating?
a. Leadership
b. Accessibility
c. Quality values
d. Customer orientation
e. Listening to the customer
46. The process of comparing outputs to previously established standards to determine if

corrective action is needed is called:
a) planning
b) directing
c) controlling
d) budgeting
e) disciplining
47. Which of the following does not relate to system design?
a) altering the system capacity
b) location of facilities
c) inventory management
d) selection and acquisition of equipment
e) physical arrangement of departments
48. Based on the Service-System Design Matrix, which of the following has a lower level of
“production efficiency”?
a. Face-to-face loose specs
b. Phone contact
c. Internet and on-site technology
d. Face-to-face tight specs
e. Mail contact
49. Taking a systems viewpoint with regard to operations in today's environment increasingly
leads decision-makers to consider ______________ in response to the ___________.
a) flexibility; pressure to be more efficient
b) off shoring; need to promote domestic production
c) sustainability; threat of global warming
d) technology; impact of random variation
e) forecasting; stabilization of demand
50. Which of the following is not a benefit of using models in decision-making?
a) They provide a standardized format for analyzing a problem.
b) They serve as a consistent tool for evaluation.
c) They are easy to use and less expensive than dealing with the actual situation.
d) All of the above are benefits.
e) None of the above is a benefit.
51. Modern firms increasingly rely on other firms to supply goods and services instead of doing
these tasks themselves. This increased level of _____________ is leading to increased emphasis
on ____________ management.
a) outsourcing; supply chain
b) off shoring; lean
c) downsizing; total quality
d) optimizing; inventory
e) internationalization; intercultural
52. Operations and sales are the two-________ functions in businesses.
a) strategic
b) tactical
c) support
d) line
53. Marketing depends on operations for information regarding ___________.
a) productivity
b) lead time
c) cash flow
d) budgeting
e) corporate intelligence
54. Two widely used metrics of variation are the __________ and the _________.
a) mean; standard deviation
b) productivity ratio; correlation
c) standardized mean; assignable deviation
d) randomized mean; standardized deviation
e) normal distribution; random variation
55. Which one is not generally considered an advantage of using models for decision-making?
a) Providing a systematic approach to problem solving.
b) Emphasizing quantitative information
c) Providing an exact representation of reality.
d) Enabling managers to answer "what if" questions
e) Requiring users to be specific about objectives.
a) Lean production.
b) Division of labor.
c) Mass production.
d) Interchangeable parts.
57. The operating characteristic (OC) curve shows the probability of
a) rejection for every possible true percentage of defectives
b) acceptance for every possible true percentage of defectives
c) making type I errors for various percentages of defectives
d) none of the above
58. If an artificial variable remains in the solution with a positive value after the stopping
criterion has been reached, the problem
a) is infeasible
b) is optimal
c) needs a new basis
d) has more than one solution
59. What are the two sources of costs in queuing analysis?

a) Arrivals and departures
b) Arrivals and idleness
c) Waiting customers and capacity
d) Equipment breakdowns and departures
60. Which of the following statements about variation is FALSE?
a) Variation prevents a production process from being as efficient as it can be.
b) Some variation can be prevented.
c) Variation can be either assignable or random.
d) Any variation makes a production process less productive.
e) Random variation generally cannot be influenced by managers.
61. Which of the following is essential to consider with respect to managing a process to meet
demand?
a) strategy
b) demand forecasts
c) capacity
d) all of the above
management?
a) Schedule work
b) Secure financial resources
c) Maintain quality
d) Oversee the transformation process
e) Manage inventories
63. Which one of these was not mentioned in the list of recent trends in operations management?
a) Total quality management
b) Worker involvement
c) Global competition.
d) Automation.
e) Environmental issues.
a) Lean production.
b) Division of labor.
c) Mass production.
d) Craft production.
e) Interchangeable parts.
a) goods production
c) entertainment
d) price reduction
66. Which of the following is not true about a lean production system?
a) It puts emphasis on quality, flexibility, and time reduction.
b) It puts emphasis on reducing a company's labor force.
c) It is involved in maintaining and improving the system with lower amounts of
inventory.
d) It relies on buffers against unforeseen occurrences.
67. Which one of the following is not a typical question dealt with by operations managers?
a) How much capacity will be needed in the months ahead?
b) What is a satisfactory location for a new facility?
c) Which products/services should be offered?
d) All are typical of operations decisions.
a) A CPA firm.
b) A bank.
c) A hospital
d) They all use it.
69. The transportation model method that is used to evaluate location alternatives minimizes
total.
a) sources
b) destinations
c) capacity
d) shipping costs
70.. What is simulation?

a) A quick solution method to problem-solving
b) A formalized deterministic approach to problem-solving
c) A graphical method to problem-solving
d) A trial-and-error approach to problem-solving
71. Moving from the aggregate plan to a master production schedule requires
a) rough cut capacity planning
b) sub-optimization
c) disaggregation
d) strategy formulation
72. Which of the following statements is true of Lean-Six Sigma?

a) Lean principles focus on advanced statistical methods.
b) Lean principles and Six-Sigma are separate bodies of knowledge
c) Lean principles have been developed over a lengthy period.
d) Lean principles include the 5Ss framework and practices.
74. When the flow of materials is variable,
a) layout by process is most suitable
b) b layout by product is most suitable
c) layout by fixed position is most suitable
d) line balancing is most suitable
75. A fixed interval system

a) adds the same predetermined amount to inventory each time replenishment occurs
b) is suitable for joint replenishment items
c) is triggered at the reorder level
d) requires perpetual monitoring of inventory records
76. Which of the following terms best defines the nature of Total Quality Management?
a) An art
b) A philosophy
c) A science
d) A social activity
77. Which of the following terms reflects Japanese view of continuous improvement?
a) Kaizen
b) Poka-yoke
c) Six sigma
d) Control limits
78. Which of the following is NOT an element of TQM?

a) Leadership
b) Perceived quality
c) Employee empowerment
d) Customer focus
79. Which of the following is an example of appraisal cost?

a) Rework costs
b) Returned goods
c) Testing labs
d) Quality improvement programs
80. Warranty cost is an example of which of the following?

a) Internal failure cost
b) External failure cost
c) Prevention cost
d) Appraisal cost
81. Refer to the stage of PDCA (Plan, Do, Check, Act) cycle that involves evaluating the
improvement plan.
a) Plan
b) Do
c) Check
d) Act
82. Which of the following refers to a continuous measurement of an organization’s products and
processes against a company recognized as a leader in that industry?
a) Benchmarking
b) Gap analysis
c) Statistical process control
d) Continuous improvement
83. Which of the following is the focus of statistical process control?

a) Determining the efficiency of an operations system
b) Measuring the amount of re-work required to rectify faulty goods
c) Identifying the security needs of an operations system
d) Measuring and controlling process variations
84. Which of the following is a measure of how closely a product or service meets the
specifications?
a) Quality of Conformance
b) Continuous improvement
c) Competitive benchmarking
d) Statistical process control

a) goods production
c) entertainment
d) all the above involve operations
86. Technology choices seldom affect:

a) Costs.
b) Productivity.
c) Union activity.
d) Quality.
87. Measurements taken at various points in the transformation process for control purposes are
called:
a) Plans
b) Directions
c) Controls
d) Feedback.
88. Budgeting, analysis of investment proposals, and provision of funds are activities associated
with the _______ function.
a) Operation
b) Marketing
c) Purchasing
d) finance
89. Which one of the following would not generally be classified under the heading of
transformation?
a) Assembling
b) Teaching
c) staffing
d) Farming
e) consulting
90. Manufacturing work sent to other countries is called:

a) Downsized
b) Outsourced
c) Internationalization
d) vertical integration
e) entrepreneurial ship
91. Product design and process selection are examples of _______ decisions.
a) Financial
b) Tactical
c) system design
d) system operation
e) Forecasting.
Multiple Choice Questions
Elective – II Information Systems Management – IV
Business Process Re-Engineering
1. Which of the following is the best explanation of business process reengineering?

A. Redesigning the organizational structure of a business
B. Redesigning workflow
C. Redesigning products
D. Transformation of business processes for more effective achievement of business
goals
2. Business process reengineering is also known as

A. Business process change management.
B. Business redevelopment
C. Business design
D. Business improvement
3. Four major areas can be identified as being subjected to change in BPR are as follows:
A. organization, technology, strategy, and people
B. organization,infrastructure,resources,people
C. technology,finance,machines,people
D. strategy,technology,methods,organization
4. Seven step INSPIRE framework for BPR is developed by

A. Guha
B. Bhudeb Chakravarti
C. Crystler
D. Nolan
5.Which of the following describes an ERP system?

A. ERP systems provide a foundation for collaboration between departments
B. ERP systems enable people in different business areas to communicate
C. ERP systems have been widely adopted in large organisations to store critical knowledge
used to make the decisions that drive the organisation's performance
D. All of the above
6.What is at the heart of any ERP system?

A. Information
B. Employees
C. Customers
D. Database
7. The _________ should plan well and execute perfectly the implementation of ERP.
A. Organisation
B. System developers
C. Vendors
D. Top Management
8. Which is one of the most critical steps in the ERP implementation?

A. Creation of Organisational Model
B. Creation of Integrated Data Model
C. Creation of Business Model
D. Creation of Data Model
9. ____________is the most common operating system for running CRM software
A. UNIX
B. Windows NT
C. Windows Vista
D. Windows XP
10.The ____________________ and ____________________ manage the supplier relations,

monitor the vendor activities and manage the supplier quality in an organisation.
A. Supplier management, customisation processes
B. Supplier maintenance, control processes
C. Supplier management, control processes
D. Supplier maintenance, customisation processes
MCQ on Management Information System. Answer Key
1.Management information systems (MIS)

1. create and share documents that support day-today office activities
2. process business transactions (e.g., time cards, payments, orders, etc.)
3. capture and reproduce the knowledge of an expert problem solver
4. use the transaction data to produce information needed by managers to run the
business
5. none of the above
2 The term used to describe those people whose jobs involve sponsoring and funding the project
to develop, operate, and maintain the information system is
1. information worker
2. internal system user
3. systems owner
4. external system user
5. systems builder
3 The person who ensures that systems are developed on time, within budget, and with
acceptable quality is a
1. systems designer
2. project manager
3. systems owner
4. external system user
5. systems builder
4 Which one of the following is not a business driver for an information system?
1. business process redesign
2. knowledge asset management
3. proliferation of networks and the Internet
4. security and privacy
5. collaboration and partnership
5 A task of developing a technical blueprint and specifications for a solution that fulfills the
business requirements is undertaken in the following phase of the system development
process
1. system initiation
2. system implementation
3. system analysis
4. system design
5. feasibility analysis
6 If a university sets up a web-based information system that faculty could access to record
student grades and to advise students, that would be an example of a/an
1. CRM
2. intranet
3. ERP
4. extranet
7 Which of the following is not a technology driver for an information system?
1. enterprise applications
2. object technologies
3. knowledge asset management
4. collaborative technologies
5. networks and the Internet
8 Which of the following is a deliverable of the system implementation phase in a formal
system development process?
1. technical hardware and software solution for the business problem
2. business problem statement
3. statement of the system users’ business requirements
4. technical blueprint and specifications for a solution that fulfills the business requirements
9 An information system that supports the planning and assessment needs of executive
management is
1. DSS
2. TPS
3. ERP
4. MIS
10 Decision makers who are concerned with tactical (short-term) operational problems and
decision making are
1. middle managers
2. executive managers
3. supervisors
4. mobile managers
11 The application of information to scan an organisation’s environment is:
1. external communication.
2. information overload.
3. sensing.
4. internal communication.
5. none of the above.
12When a bank uses information to launch a personalised credit card product this:
1. manages risks.
2. creates a new opportunity.
3. adds value.
4. reduces costs.
13 When a bank uses business performance management software to monitor its performance in
differences regions this:
1. reduces costs.
2. manages risks.
3. adds value.
14 When a bank offers web self-service for customers to answer their questions, the primary
outcome is:
1. adds value.
2. manages risks.
3. reduces costs.
15 The general transformation cycle for information is:
1. information to data to knowledge.
2. knowledge to data to information.
3. data to knowledge to information.
4. data to information to knowledge.
16 The most important attribute of information quality that a manager requires is:
1. relevance.
2. media.
3. presentation.
4. timeliness.
17 To improve the performance of a business process, which of the following is most relevant?
1. Input.
2. Processing.
3. All of the above.
4. Control and feedback
5. Output.
18 Monitoring the legal constraints which a company operates under requires review of:
1. a company’s customers.
2. a company’s outputs.
3. a company’s macro-environment.
4. a company’s micro-environment.
5. all of the above.
19 The majority of publically available Internet information sources are:
1. created in XML.
2. structured information.
3. normal information.
4. unstructured information.
20 Records management:
1. is a discipline limited to digitised paper documents.
2. is a discipline limited to library books.
3. is a discipline limited to paper documents.
4. is a discipline limited to information contained in databases.
21 Which of the following should be represented on an information flow diagram?

1. Entity
2. Source
3. Process
4. Attribute
5. Database
22 A web blueprint depicts:
1. the layout of an individual web page
2. the layout of the home page
3. the layout of an index page
4. the layout of a website
5. the layout of a sitemap
23 UML depicts information systems as a collection of:
1. Entities
2. Processes
3. Data
4. Information
5. Objects
24 Which of the following statements describes a taxonomy?
1. A browsable hierarchy
2. A list of equivalent terms
3. A complex controlled vocabulary showing relationships
25 Which of the following statements about XML schemas is incorrect?
1. Schemas can specify integer values
2. Schemas are defined by XSD tag
3. All XML documents must have a schema
4. Schemas provide data oriented data types
5. They offer more flexibility than DTDs
26 Which of the following relates to enterprise interoperability?
1. DFD
2. Information flow diagram
3. XML
4. Entity relationship diagram
27 Which of the following is not a type of navigation system for a web site?
1. National
2. Global
3. Contextual
4. Local
5. Regional
28 What should not be part of an acceptable use policy?
1. Allowable use of systems
2. Legal obligations
3. Encryption policies
4. User responsibilities
5. Account and password responsibilities 29 Use-case analysis focuses upon:
1. data
2. Objects
3. Entities
4. Actors
30 Which of the following is part of a static view of information?
1. Logical data model
2. Meta data
3. Data flow model
4. Information process model
31Contemporary Information Systems are interfacing with customers and suppliers using :
1. BPR
2. CRM
3. SCM
4. Both A and B
5. Both B and C
32 Information systems that support the business functions that reach out to suppliers are known
as:
1. back office information systems
2. decision support systems
3. expert information systems
4. front office information systems
33 Which of the following is not a class of information system applications?
1. database management system
2. decision support system
3. expert system
4. management information system
5. office automation system
34 Who are the people that actually use the system to perform or support the work to be
completed?
1. system analysts
2. system designers
3. system owners
4. system builders
35 Which is not a typical business function?
1. Sales
2. Service
3. Manufacturing
4. Accounting
5. Benefits and Compensation
36 The flow of transactions through business processes to ensure appropriate checks and
approvals are implemented is called:
1. procedures
2. work flow
3. process flow
4. process requirements
5. procedures
37 Language-based, machine-readable representations of what a software process is supposed to
do, or how a software process is supposed to accomplish its task is known as:
1. prototyping
2. software specifications
3. application programs
4. human engineering
38 A specification of how the user moves from window to window, interacting with the
application programs to perform useful work is called:
1. interface specifications
2. software specifications
3. user dialog
4. prototyping specifications
5. navigation specification
39 Examples of keyless interfaces include:
1. bar coding, OCR, pen, and voice recognition
2. mouse, OCR, pen, and voice recognition
3. keyboard, OCR, pen, and voice recognition
4. all of the above
40 Open database connectivity (OBDC) tools are an example of:
1. layerware
2. tool kit
3. interfaceware
4. middleware
Information Systems Development

41 The first CMM level at which measurable goals for quality and productivity are established is
1. Level 1
2. Level 2
3. Level 3
4. Level 4
5. Level 5
42 Project Management ensures that
1. project’s risk is assessed
2. project’s feasibility is assessed
3. system is developed at minimum cost
4. both A and B
43 The deliverable of the problem analysis phase is
1. system improvement objectives
2. problem statement
3. statement of constraints
4. statement of work
44 Which one is NOT a category of problems represented by the PIECES framework?
1. control
2. efficiency
3. service
4. economics
5. technology
45 Which one is NOT a phase of the systems development life cycle?
1. problem analysis
2. scope definition
3. requirements analysis
4. post-implementation review
5. decision analysis
46 A cross life-cycle activity of system development is
1. object modeling
2. prototyping
3. fact-finding
4. data modeling
5. data flow diagram modeling
47 An ongoing activity of systems support is
1. assisting users
2. adapting the system to new requirements
3. recovering the system
4. fixing software defects
5. all of the above
48 Rapid Application Development (RAD) strategy includes all of the following, except
1. actively involves system users in the analysis, design, and construction activities
2. uses waterfall development approach to evolve system concept
3. organizes systems development into a series of focused, intense workshops
4. reduces the amount of time that passes before the users begin to see a working
system
5. accelerates the requirements analysis and design phases 49 Request for quotation
(RFQ) is
1. a document that compares business and technical requirements of a commercial

application package against the capabilities and features of a specific commercial
application package
2. a document that communicates business, technical, and support requirements for an
application software package to vendors that wish to compete for the sale of that
application package and services
3. a document that communicates business, technical, and support requirements for an
application software package to a single vendor that has been determined as being
able to supply that application package and service
4. a contract with management and the user community to develop or enhance an
information system
50 Which of the following phases is unique to the commercial application package
implementation strategy as opposed to the rapid application development strategy
1. problem analysis
2. construction and testing
3. scope definition
4. requirements analysis
5. business process design
51 A model-driven analysis approach that focuses on the structure of stored data in a system
rather than on processes is
1. structured analysis
2. information engineering
3. rapid architected analysis
4. object-oriented analysis
52 All of the following are phases of systems analysis, except
1. decision analysis phase
2. requirements analysis phase
3. design analysis phase
4. problem analysis phase
5. scope definition phase
53 Which of the following analysis techniques derive system models from existing system or
discovery prototypes?
1. rapid architected analysis
3. data modeling
4. discovery prototyping
5. structure analysis
54 Prototypes are used in
1. model-driven analysis
3. traditional approaches
4. accelerated systems analysis
5. structured analysis
55 Which of the following is NOT a feasibility analysis criterion?
1. technical feasibility
2. schedule feasibility
3. operational feasibility
4. economic feasibility
5. resource feasibility
56 Which of the following phases identifies and expresses requirements, prioritizes
requirements, updates project plan, and communications the requirements statement?
1. logical design phase
2. decisions analysis phase
4. systems analysis phase
57 The tasks of defining acceptance tests, structuring functional requirements, and validating
functional requirements are performed in which one of the phases?
2. decision analysis phase
3. systems analysis phase
58 The task of establishing system improvement objectives is performed in which phase of
systems analysis?
4. physical design phase
59 The task of identifying and expressing system requirements is performed in which phase of
systems analysis?
60 Cause-and-effect analysis is performed in the following phase of systems analysis
4. physical design phase
61 A property or quality the system must have is called a:
1. scope
2. functional requirement
3. preliminary requirement
4. nonfunctional requirement
62 The process of requirements discovery consists of the following activities, except
1. requirements management
2. sampling of existing documentation, forms and files
3. requirements discovery
4. problem discovery and analysis
5. documenting and analyzing requirements
63 Which one is NOT a common fact-finding technique?
1. prototyping
2. interviews
3. research and site visits
4. sampling of existing documents, forms, databases
5. reverse engineering
64 A fact-finding technique that involves a large number of observations taken at random
intervals is called:
1. randomization
2. stratification
3. people sampling
4. work sampling
65 Which one of the following fact-finding techniques is an inexpensive means of gathering data
from a large number of individuals?
1. observations
2. work sampling
3. interviews
4. proxemics
66 Randomly sampling ten invoices based on a given sample size would be an example of
1. stratification
2. closed-ended sampling
3. observation
4. open-ended sampling
67 All of the following are examples of requirements problems, except
1. missing requirements
2. overlapping requirements
3. costly requirements
4. conflicting requirements
5. ambiguous requirements
68 Which of the following types of questions should not be asked on an interview?
1. closed-ended questions
2. biased questions
3. open-ended questions
4. loaded questions
5. both (b) and (d)
69 Which of the following is an advantage of discovery prototyping?
1. serves as a training mechanism for users
2. allows users and developers to experiment with the software and develop an
understanding of how the system might work
3. aids in building system test plans and scenarios
4. aids in determining the feasibility and usefulness of the system before high development
costs are incurred
5. all of the above
70 Which of the following is NOT a guideline for successfully conducting a Joint Requirements
Planning (JRP) session?
1. stay on schedule
2. allow for ample breaks
3. encourage user and management participation
4. brainstorm technical alternatives to problems identified in a JRP session
5. ensure that the scribe is able to take notes
71 The person generally responsible for the program design strategy, standards, and construction
is called a(n):
1. program librarian
2. backup chief programmer
3. network designer
4. chief programmer
5. systems analyst
72 Which one of the tests is performed on a subset of a program?
1. subset test
2. unit test
3. stub test
4. program test
5. system test
73 Which of the following is the last phase of the Systems Construction phase?
1. build and test databases
2. write and test new programs
3. prepare conversion plan
4. build and test networks
74 Which installation strategy is a variation on the abrupt and parallel conversion?
1. location conversion
2. staged conversion
3. partial conversion
4. hierarchical conversion
75 Which of the following is(are) the task(s) of the Systems Conversion phase?
2. train users
3. convert to new system
76 Which of the tests is a final system test performed by end users using real data over an
extended period of time?
1. final test
2. complete test
3. systems acceptance test
4. parallel test
77 Which of the following is(are) the primary inputs into the task of writing and testing new
programs?
1. programming plan
2. database structure
3. test data
4. integration requirements
5. both (a) and (c)
78 Which of the following is the first phase of the Systems Implementation phase?
1. conduct system test
4. build and test databases
5. write and test new programs
79 Which of the following is(are) the deliverables of the Systems Implementation phase?
1. training materials
2. functional system
3. physical design specification
4. operational system
80 Which of the following is(are) the inputs to the Systems Construction phase?
1. design prototypes
2. redesigned business processes
3. physical design specifications
4. documentation
5. all of the above
81 Which of the following is(are) an input process method(s)?
1. smart card
2. biometric
3. optical mark
4. point-of-sale
5. all of the above
82 A form used to record data about a transaction is a(n)
1. batch document
2. source document
3. on-line document
4. data entry document
5. none of the above 83 Combination checks:
1. determine data entry errors on primary keys

2. ensure that the correct type of data is input
3. determine whether a known relationship between two fields is valid
4. determine whether all required fields of the input have actually been entered
84 Which of the following is NOT an advanced input control?
1. radio button
2. slider edit calendar
3. spin box
4. both (a) and (c)
5. Internet hyperlink
85 If you need a student to select from a list of eighty courses of the university’s on-line
catalogue, your best choice for a GUI control would be:
1. check box
2. radio buttons
3. drop-down list
4. combination box
86 If you need to collect employee status information (e.g., full-time vs. part-time) on a
computer screen, your best choice for a GUI control would be:
1. drop-down list
2. masked edit control
3. radio buttons
4. spin box
87 Remote batch processing has the following characteristic(s):
1. Data is entered online.
2. Data is collected in batches.
3. Data is processed at a later time.
4. both (a) and (b) and (c)
88 Optical character recognition:
1. is less prevalent than optical mark recognition
2. is used on forms for subjective-based questions on exams
3. requires the user to carefully handwrite input data on a business form
4. both (a) and (c)
5. both (a) and (b) and (c)
89 Which of the following advanced input controls provides a nonnumeric means of selecting a
value?
1. ellipsis control
3. check list box
4. slider edit calendar
90 In cases where the data item has a large number of predefine values and screen space is tight,
the following GUI control should be used for an input:
1. combination box
2. drop-down list
3. list box
4. ellipsis control
91 Which of the following reports presents information with little or no filtering or restrictions?
1. non-filtered
2. summary
3. external
4. exception
92 A list of the names of all customers who purchased only one product within a six-month
period would be an example of a(n):
1. detailed report
2. summary report
3. exception report
4. external report
93 A listing of the names and addresses of all the employees for an organization would be an
example of a(n):
1. detailed report
2. summary report
3. external report
4. exception report
94 The most common medium for computer outputs is:
1. screen
2. paper
3. e-mail
4. microfilm
95 Which of the following reports categorizes information for managers who are not interested
to wade through the details?
1. external
2. detailed
3. exception
4. supplemental
96 A turnaround output is an example of
1. internal output
2. external output
3. summary output
4. exception output
97 A count of the number of students who earned A, B, C, D, and F grades in a given course
would be an example of a(n):
1. external report
2. summary report
3. detailed report
4. exception report
98 Which kind of chart is useful for comparing series or categories of data, each in its own bar?
1. line chart
2. pie chart
3. scatter char
4. bar chart
99 Which of the following is NOT a general principle for output design?
1. The distribution of (or access to) computer outputs must be sufficient to assist all relevant
users.
2. The computer outputs should be designed with automated tools.
3. The computer outputs must be acceptable to the system users.
4. Computer outputs should be simple to read and interpret.
5. The timing of computer outputs is important. Output information must reach recipients
while the information is pertinent to transactions or decisions.
100 Which of the following is(are) the step(s) in the output design process?
1. specify physical output requirements
2. identify system outputs and review logical requirements
3. design, validate, and test outputs
4. design any preprinted forms
5. all of the above
MGT503 SOLVED MCQS MORE THAN 2000
By
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MULTIPLE-CHOICE QUESTIONS
For each of the following choose the answer that most completely answers the question.
INTRODUCTION
31. Which of the following statements regarding managers in today’s world is accurate?
a. Their age range is limited to between 30 and 65.
b. The are found only in large corporations.
c. They can be found exclusively in for profit organizations.
d. The single most important variable in employee productivity and loyalty is the
quality of the relationship between employees and their direct supervisors.
(d; easy; p. 4)
32. According to data collected by Catalyst, a nonprofit research group, _________ percent
of corporate officers in Fortune 500 companies are women.
a. 55.3
b. 15.7
c. 39.7
d. 21.9
(b; moderate; p. 4)
WHO ARE MANAGERS?
33. Someone who works with and through other people by coordinating their work
activities in order to accomplish organizational goals is ___________.
a. a very intelligent individual
b. a supervisor of production work
c. a manager
d. an operations supervisor
(c; easy; p. 5)
34. Managers who are responsible for making organization-wide decisions and establishing
the plans and goals that affect the entire organization are _____________.
a. first-line managers
b. top managers
c. production managers
d. research managers
(b; easy; p. 5)
35. All levels of management between the supervisory level and the top level of the
organization are termed _____________.
a. middle managers
b. first-line managers
http://vustudents.ning.com 1
c. supervisors
d. foremen
(a; easy; p. 6)
36. Executive vice president, president, managing director, chief operating officer, chief
executive officer, or chairman of the board are positions associated with which of the
following levels of management? http://vustudents.ning.com
a. team leaders
b. middle managers
c. first-line managers
d. top managers
(d; easy; p. 6)
37. Agency head or plant manager is most likely associated with which of the following?
a. team leaders
b. middle managers
d. top managers
(b; moderate; p. 6)
38. The lowest level of management is ______________.

a. a nonmanagerial employee
b. a department of research manager
c. a vice president
d. a first-line manager
(d; easy; p. 5)
39 Supervisor is another name for whom?

a. team leaders
b. middle managers
d. top managers
(c; moderate; p. 6)
40. Managers with titles such as department head, project leader, plant manager, or
division manager are _______________.
a. first-line managers
b. top managers
c. production managers
d. middle managers
(d; moderate; p. 6)
41. All levels of management between the supervisory level and the top level of the
organization are termed _____________.
a. middle managers
b. first-line managers
c. supervisors
d. foremen
(a; easy; p. 6)
42. Division manager is associated with which of the following levels of management?
a. team leaders
b. middle managers
d. top managers
(b; moderate; p. 6)
WHAT IS MANAGEMENT?
43. _____________ is the process of getting activities completed efficiently and effectively
with and through other people.
a. Leading
b. Management
c. Supervision
d. Controlling
(b; easy; p. 7)
44. The distinction between a managerial position and a nonmanagerial position is

_______________.
a. planning the work of others
b. coordinating the work of others
c. controlling the work of others
d. organizing the work of others
(b; moderate; p. 7)
45. _____________ distinguishes a managerial position from a nonmanagerial one.

a. Manipulating others
b. Concern for the law
c. Increasing efficiency
d. Coordinating and integrating others’ work
(d; moderate; p. 7)
46. An automobile manufacturer that increased the total number of cars produced at the
same cost, but with many defects, would be _____________.
a. efficient and effective
b. increasing efficiency
c. increasing effectiveness
d. concerned with inputs
(b; difficult; p. 8)
47. Effectiveness is synonymous with _____________.

a. cost minimization
b. resource control
c. goal attainment
d. efficiency
(c; difficult; p. 8)
48. Efficiency refers to _____________.

a. the relationship between inputs and outputs
b. the additive relationship between costs and benefits
c. the exponential nature of costs and outputs
d. increasing outputs regardless of cost
(a; moderate; p. 7)
49. The management process functions consist of ______________.
a. planning, organizing, staffing, and directing
b. planning, organizing, leading, and directing
c. planning, organizing, leading, and staffing
d. planning, organizing, leading, and controlling
(d; moderate; p. 9)
50. In successful organizations, ______________.

a. low efficiency and high effectiveness go hand in hand
b. high efficiency and low effectiveness go hand in hand
c. high efficiency and high effectiveness go hand in hand
d. high efficiency and high equity go hand in hand
(c; moderate; p. 8)
51. Whereas _____________ is concerned with the means of getting things done,
_____________ is concerned with the ends, or attainment of organizational goals.
a. effectiveness; efficiency
b. efficiency; effectiveness
c. effectiveness; goal attainment
d. goal attainment; efficiency
WHAT DO MANAGERS DO? MANAGEMENT FUNCTIONS
52. The five management functions of planning, organizing, commanding, coordinating,

and controlling was proposed by ______________.
a. Frederick W. Taylor
b. Henry Ford
c. Chester Barnard
d. Henri Fayol
(d; difficult; p. 9)
53. _____________ was a French industrialist who identified the basic management
functions.
a. Weber
b. Taylor
c. Herzberg
d. Fayol
(d; moderate; p. 9)
54. Writing an organizational strategic plan is an example of the ______________

management function.
a. leading
b. coordinating
c. planning
d. organizing
55. Organizing includes _____________.
a. defining organizational goals
b. hiring organizational members
c. motivating organizational members
d. determining who does what tasks
56. A manager resolving conflict among organizational members is performing what

function?
a. controlling
b. commanding
c. directing
d. leading
(d; moderate; p. 9)
57. The process of monitoring, comparing, and correcting is called _____________.

a. controlling
b. coordinating
c. leading
d. organizing
(a; moderate; p. 9)
MANAGEMENT ROLES
58. Mentoring is primarily associated with the management function of _____________.

a. planning
b. organizing
c. leading
d. controlling
59. __________ developed a categorization scheme for defining what managers do,
consisting of 10 different but highly interrelated roles.
a. Henri Fayol
b. Henry Ford
c. Henry Mintzberg
d. Henry Morris
(c; moderate; p. 10)
60. According to Mintzberg’s management roles, the _____________ roles are those that
involve people and other duties that are ceremonial and symbolic in nature.
a. informational
b. interpersonal
c. technical
d. decisional
(b; easy; p. 10)
61. The roles of disseminator, figurehead, negotiator, liaison, and spokesperson are more
important at the __________ levels of the organization.
a. lower
b. middle
c. higher
d. supervisory
62. Which of the following is not an example of a decisional role according to Mintzberg?
a. spokesperson
b. entrepreneur
c. disturbance handler
d. resource allocator
(a; moderate; p. 11)
63. A human resource manager attending a local Society for Human Resource Management
meeting would be functioning in which role?
a. informational
b. leader
c. liaison
d. disseminator
64. A finance manager who reads the Wall Street Journal on a regular basis would be
performing which role?
a. figurehead
b. monitor
c. disseminator
d. interpersonal
(b; moderate; p. 11)
65. The _____________ role is more important for lower-level managers than it is for
either middle- or top-level managers.
a. leader
b. entrepreneur
c. spokesperson
d. disseminator
(a; difficult; p. 11)
66. Many of Mintzberg’s roles align with the basic functions of management. For example,
the _____________ role is a part of planning.
a. figurehead
b. leader
c. liaison
d. resource allocation
(d; moderate; p. 11)
67. The emphasis that managers give to various roles seems to be based on their
_____________.
a. organizational level
b. tenure with the organization
c. experience in their field
d. personality
(a; easy; p. 11)
68. Which of the following is not an example of an interpersonal role according to

Mintzberg?
a. figurehead
b. leader
c. liaison
d. spokesperson
(d; difficult; p.11)
69. According to Mintzberg’s management roles, the ______________ roles involve

receiving, collecting, and disseminating information.
a. interpersonal
b. informational
c. technical
d. decisional
70. All of the following are examples of informational roles according to Mintzberg except
____________.
a. liaison
b. monitor
c. disseminator
d. spokesperson
71. Which of the following is not an example of a decisional role according to Mintzberg?
a. spokesperson
b. entrepreneur
d. resource allocator
72. Many of Mintzberg’s roles align with the basic functions of management. For example,
all three interpersonal roles are part of the _____________ function.
a. organizing
b. planning
c. leading
d. controlling
73. According to the textbook, all of the following are managerial roles that are more
important at the higher levels of the organization except ________________.
a. leader
b. disseminator
c. figurehead
d. negotiator
MANAGEMENT SKILLS
74. The three essential managerial skills put forth by Katz include _____________.
a. technical, human, and empirical
b. human, empirical, and conceptual
c. technical, interpersonal, and controlling
d. technical, human, and conceptual
75. Understanding building codes would be considered a _____________ skill for a
building contractor.
a. human
b. technical
c. conceptual
d. empirical
(b; easy; p. 12)
76. Which of the following is true concerning technical and managerial skills?
a. Human skills and technical skills remain equally important as managers move to
higher levels.
b. Technical-skill needs remain necessary and human skills decrease as managers
move to higher levels.
c. Human skills remain necessary and technical-skill needs decrease as managers
move to higher levels.
d. Both human-skill and technical-skill needs decrease as managers move to higher
levels.
77. Managers with good __________ are able to get the best out of their people.
a. human skills
b. conceptual skills
c. technical skills
d. visual skills
(a; easy; p. 12)
78. Technical skills include _______________.

a. knowledge of and efficiency in a certain specialized field
b. knowledge of and proficiency in a certain specialized field
c. knowledge of and interest in a general field of endeavor
d. skill in and proficiency in a certain specialized field
79. The ability to work well with other people, both individually and in a group, use
________________.
a. technical skills
b. behavioral skills
c. planning skills
d. human skills
80. Which of the following types of skills are described with terms such as abstract
situations and visualization?
a. interpersonal
b. human
c. technical
d. conceptual
81. Which one of the following phrases is best associated with managerial conceptual
skills?
a. decision making
b. communicating with customers
c. using information to solve business problems
d. product knowledge
(c; moderate; 13)
82. Which of the following skills are more important at lower levels of management, as
these managers are dealing directly with employees doing the organization’s work?
a. human
b. technical
c. conceptual
d. empirical
(b; easy; p. 12)
WHAT IS AN ORGANIZATION?
83. An organization is ______________.

a. the physical location where people work
b. a collection of individuals working for the same company
c. a deliberate arrangement of people to accomplish some specific purpose
d. a group of individuals focused on profit-making for their shareholders
84. One of the common characteristics of all organizations is ____________ , which is

typically expressed in terms of its goals.
a. its people
b. its goals
c. its systematic structure
d. its purpose
85. One of the common characteristics of all organization is _____________, which

clarifies members’ work relationships.
a. its people
b. its goals
c. its deliberate structure
d. its purpose
86. A deliberate arrangement of people to accomplish some specific purpose is

a. a structure.
b. a process.
c. an organization.
d. an assembly operation.
87. A difference between traditional organizations and new organizations is that the new
organizations will be more
a. stable.
b. command oriented.
c. rule oriented.
d. dynamic.
THE UNIVERSALITY OF MANAGEMENT
88. Universality of management means that _____________

a. all managers in all organizations perform the four management functions
b. all managers in all organizations can perform their job the same way
c. all organizations can hire any manager to perform the management jobs
d. any manager can work in any organization and perform any management job
89. We have a vested interest in improving the way organizations are managed because
_________________.
a. we want the organization to be functioning when our education is completed
b. we interact with organizations every single day of our lives
c. if organizations don’t improve we won’t have a place to work in the future
d. organizations supply inputs to other organizations
90. Organizations that are well managed ____________.

a. choose the best suppliers for their products
b. compete on an international basis because they have the best products
c. always have the lowest-cost products
d. develop a loyal customer base, grow, and prosper
REWARDS AND CHALLENGES OF BEING A MANAGER
91. Being a manager in today’s dynamic workplace ______________.

a. provides numerous rewards and rapid advancement
b. can be a tough and thankless job
c. offers few challenges, short workweeks, and high pay
d. provides clear work rules, permanent jobs, and flexible work hours
92. A manager’s success is typically _______________.

a. dependent on how hard the manager works
b. how closely the manager supervises the employees
c. based on how skilled the manager is at the technical elements of the job
d. dependent on others’ work performance
(d; easy; p. 19)
93. The most important work of an organization is creating a work environment

_______________.
a. that is safe and well-lit for the employees to be able to see
b. that is a clean and a friendly place to work
c. in which organizational members can do their work to the best of their ability and
the organization can achieve its goals
d. that their suppliers like to provide inputs for and their customers like to purchase
the outputs
94. Managers often ______________.

a. go by the rules established by the organization and are not allowed to make their
own decision
b. change their career path during their work life
c. have an opportunity to think creatively and use their imagination
d. have to depend on their employees for guidance in dealing with a superior
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WHY STUDY MANAGEMENT?
95. Which of the following best describes the concept that management is needed in all
types and sizes of organizations, at all organizational levels, in all organizational work
areas, and in all organizations, no matter the country in which they’re located?
a. the partiality of management
b. the segmentation of management
c. the universality of management
d. the cultures of management
MANAGING YOUR CAREER
96. According to the boxed profile, “Managing Your Career,” the U.S. Bureau of Labor
Statistics estimates ______________ growth in all executive, administrative, and
managerial jobs through the year 2008.
a. 1 to 9 percent
b. 10 to 20 percent
c. 25 to 35 percent
d. 45 to 65 percent
97. According to the boxed profile, “Managing Your Career,” in which of the following
fields is it expected that growth in executive, administrative, and managerial jobs will
occur?
a. manufacturing
b. large organizations
c. health care services
d. law enforcement
98. All of the following are mentioned in the boxed profile, “Managing Your Career,” as
areas in which the demand for managers will be high except _______________.
a. small-sized organizations
b. traditional manufacturing
c. medium-sized organizations
d. health care services
SCENARIOS AND QUESTIONS

WHO ARE MANAGERS?
Managerial Basic Training (Scenario)
Imagine thatyour marketing company has just merged with a manufacturing organization.
You have been asked to help provide some “basic” managerial training to the engineers in the
research and development unit of the new sister company. Your boss has asked to see an
overview of materials that you will be providing the engineers to make sure you are covering
the necessary issues.
99. Now that both companies are merged and are a systematic arrangement of people set to
accomplish a specific purpose, they could be described as a(n) _____________.
a. business unit
b. multinational company
c. organization
d. holding company
(c; easy; p. 16)
100. One of the first things the engineers need to learn is that _____________ are the people
who direct the activities of others in an organization.
a. directors
b. managers
c. subordinates
d. line workers
(b; moderate; p. 5)
101. Another fact about managing that engineers need to learn is that supervisors may
frequently be referred to as a _____________.
a. middle manager
b. top manager
c. project leader
d. first-line manager
(d; moderate; p. 6)
102. Finally, the engineers need to learn that department head, project leader, and plant
manager are all potential titles for _____________.
a. division managers
b. deans
c. agency heads
d. middle managers
(d; moderate; p. 6)
WHAT IS MANAGEMENT?
The Perfect Manager (Scenario)
Brenda Kelly has proven herself to be an able manager. Her section has a high project
completion rate with the highest-quality product and the lowest defects in her division. In
addition, she accomplishes this with fewer full-time people than other managers. Some say
that the secret of her success is in her ability to delegate responsibility and her understanding
of the basic “management functions.”
103. Brenda’s ability to get activities completed efficiently and effectively with and through
other people is known as _____________.
a. management
b. supervision
c. coercion
d. delegation
(a; moderate; p. 8)
104. Brenda’s ability to get the same amount of product completed with fewer people is a
reflection of her ___________.
a. effectiveness
b. process skills
c. leadership
d. efficiency
(d; moderate; p. 7)
105. Getting her projects completed is an indication of Brenda’s _____________ as a

manager.
a. leadership
b. effectiveness
c. efficiency
d. attention to detail
(b; moderate; p. 8)
106. If Brenda accomplished her project on time with high-quality results, but she took more
time than other managers to complete this, you could say that as a manager she was
____________.
a. efficient, but not effective.
b. a leader, but not a top manager.
c. project oriented, but not effective.
d. effective, but not efficient.
(d; moderate; p. 8)
107. The “management functions” exemplified by Brenda include all but which of the
following?
a. planning
b. controlling
c. organizing
d. delegating
(d; moderate; p. 9)
WHAT DO MANAGERS DO?
The Busy Day (Scenario)
Don Eskew, plant manager at Control Systems, Inc., sighed as he sipped his first cup of
coffee at 5 A.M. and read his agenda for the day. He is giving two company tours in the
morning; the first to a newspaper reporter who is writing a story on the new plant expansion
and has several questions, and the second to a group of Control Systems, Inc., managers from
the east coast. He then has a meeting with the unit manager, Phil Johnson, to discuss Phil’s
recent drop in performance (a task he always hates). Next, he is spending a couple of hours
reviewing the trade journals he receives from his high-tech association and writing up a brief
synopsis for his presentation next week to the division president. Finally, in the late afternoon,
he will be reviewing the new equipment malfunction and deciding whether to bring in extra
people to get the equipment running as soon as possible. Whew! Just another day in the
glamorous life of a manager.
108. Together, all of the functions that Don performs during his busy day correspond to the
management roles discovered in the late 1960s by which one of the following
management scientists?
a. Herzberg
b. Skinner
c. Mintzberg
d. Fayol
(c; easy; p. 10)
109. When Don was conducting the tour for the east coast managers, he was operating in
which of the management roles?
a. leader
b. liaison
c. monitor
d. figurehead
110. When Don was meeting with Phil to discuss his performance concerns, he was
operating in which management role?
a. leader
b. figurehead
c. monitor
d. disturbance handler
111. What role was Don performing when he gave the plant tour to the newspaper reporter?
a. monitor
b. figurehead
c. disseminator
d. spokesperson
112. When Don was reviewing the new equipment malfunction, what management role
was he playing when deciding whether to bring in extra people?
a. monitor
b. disseminator
c. resource allocator
WHO ARE MANAGERS?
The Customer Meeting (Scenario)
Kelly, a production supervisor, is responsible for 10 employees who assemble components

into a finished product that is sold to distributors. Kelly reports to Ben, a production manager,
who in turn reports to Dan, a general manager, who reports to McKenna, a vice president of
operations. Recently, McKenna asked Dan to have a meeting with Kelly and Ben regarding
some recent customer concerns in the production area. The focus of the meeting was to judge
the validity of the customer concerns, and to develop a specific plan to address these
concerns.
113. What is the commonality between Kelly, Ben, Dan, and McKenna?
a. they all produce the same product.
b. they all have the same job content.
c. they all are managers.
d. they all have the same vision.
(c; moderate; p. 5)
114. Kelly is considered to be what level of management?

a. top manager
b. superintendent of assembly
c. middle manager
(d; easy; p. 5)
115. Ben and Dan are considered to be what level of management?

a. top manager
b. middle manager
c. superintendent of assembly
(b; moderate; p. 6)
116. McKenna is considered to be what level of management?

a. top manager
b. superintendent of assembly
c. middle manager
(a; moderate; p. 6)
117. The meeting the McKenna asked Dan to have with Ben and Kelly reflects the growing
recognition that ____________.
a. customer concerns are important only to first-line managers
b. customer responsiveness is important throughout the organization, not only in the
marketing department
c. focusing on the customer is the sole responsibility of the marketing department
d. employee attitudes and behaviors do not significantly impact customer
responsiveness
(b; easy; p. 15)
MANAGEMENT FUNCTIONS HTTP://VUSTUDENTS.NING.COM
Joe the Manager (Scenario)
As a production supervisor, Joe decides on Friday afternoon how many units of output his
employees will be able to produce and on which days certain products will be run in his
department. He also decides which of his employees are going to be responsible for operating
which machines within the department next week, as his employees are multi-skilled
assemblers. On Monday, he informs his employees whom he has assigned to which machines
by handing out assignment sheets and informs the employees that the schedule is going to be
difficult due to the increased number of units. He goes on to tell them that he is sure they can
fulfill the schedule because they are such good and skilled employees. Each day during the
week he checks the amount of output that the employees have completed and the number of
units that have been scraped.
118. When Joe decides which of his employees are going to be responsible for operating
which machines, he is performing which of the management functions?
a. controlling
b. leading
c. planning
d. organizing
(d; moderate; p. 9)
119. When Joe decides how many units of output his employees will be able to produce and
on which days certain products will be run, he is performing which of the management
functions?
a. controlling
b. leading
c. planning
d. organizing
(c; moderate; p. 9)
120. When Joe checks the amount of output that the employees have completed and the
number of units that have been scraped, he is performing which of the management
functions?
a. controlling
b. leading
c. planning
d. organizing
(a; moderate; p. 9)
121. When Joe tells the employees that he is sure they can fulfill the schedule because they
are such good and skilled employees, he is performing which of the management
functions?
a. controlling
b. leading
c. planning
d. organizing
(b; moderate; p. 9)
122. When Joe performs all of his management functions in a continuous manner, he is
performing which of the following?
a. scheduling process
b. quality control process
c. management process
d. manufacturing process
(c; moderate; p. 9)
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The General Manager (Scenario)
Michael, Joe’s general manager, in a routine day might meet with city officials or civic
leaders about environmental issues due to the plant’s presence in the community. After these
meetings, he will then meet with the functional managers to discuss and share with them the
concerns and results of the meeting with city officials or civic leaders. Other times, he will
meet with Betty, the production manager, and the human resource manager, Joyce, to discuss
a complaint filed by one of the employees in a production department. He may also spend
time on the Internet looking for new technologies that can be used in the production processes
of his plant.
123. When Michael meets with city officials or civic leaders about environmental issues, he
is performing which management role?
a. leader
b. resource allocator
c. entrepreneur
d. monitor
124. When Michael meets with just Betty and Joyce to discuss a complaint filed by one of
the employees in a production department, he is performing which management role?
a. resource allocator
b. disturbance handler
c. liaison
d. figurehead
125. When Michael meets with the functional managers to discuss and share with them the
concerns and results of the meeting with city officials or civic leaders, he is performing
which management role?
a. disseminator
b. liaison
d. negotiator
126. When Michael spends time on the Internet looking for new technologies that can be
used in the production processes of his plant, he is performing which management role?
a. leader
b. entrepreneur
c. spokesperson
127. Michael’s search for new technologies that can be used in the production processes of
his plant is an indication of which managerial trend?
a. Innovation is only important for higher-level managers.
b. Only managers in production related positions need to be on the look-out for
innovation.
c. Organizational managers at all levels and in all areas need to be on the look-out
for innovations.
d. Innovation is only important for middle-level managers.
HISTORICAL BACKGROUND OF MANAGEMENT
30. Which of the following is not a reason Smith claimed enhanced productivity from
division of labor?
a. increasing worker skill and dexterity
b. saving time lost in changing tasks
c. creating labor-saving inventions
d. strict management control over worker time and motion
31. An example of early uses of the functions of management is the _______________.

a. development of gunpowder
b. arsenal of Venice where ships were built
c. Artist’s Revolution in 1803
d. War of 1812
32. In Wealth of Nations, Adam Smith described the breakdown of jobs into narrow and
repetitive tasks and called this ______________.
a. assembly lines
b. lowest common factor of work
c. division of labor
d. greatest common factor of work
(c; challenging; p. 26)
33. The major contribution of the Industrial Revolution was the substitution of ________
for human power.
a. electricity
b. water power
c. machine power
d. critical thinking
34. General administrative theorists devoted their efforts to _________________.

a. making the overall organization more effective
b. developing mathematical models to improve management
c. improving the productivity and efficiency of workers
d. emphasizing the study of human behavior in organizations
35. Which of the following is not one of the four management approaches that grew out of
the first half of this century?
a. scientific management
b. general administrative
c. organizational behavior
d. systems approach
(d; easy; p. 27)
SCIENTIFIC MANAGEMENT
36. Frederick Taylor performed most of his work in _______________.

a. grape vineyards in California
b. steel companies in Pennsylvania
c. auto assembly plants near Detroit
d. cotton gins in Alabama
(b; easy; p. 28)
37. Frank and Lillian Gilbreth’s work began in the area of _________________.
a. laying bricks
b. cutting lumber
c. installing rudimentary electrical wiring
d. assembly lines
(a; easy; p. 29)
38. Frank and Lillian Gilbreth were the first researchers to utilize motion pictures to the
study of _____________.
a. reactions of workers in group settings
b. hand-and-body motions
c. workers reactions to pay increases
d. groups of workers in tense situations where they are assigning each other
tasks
39. Which of the following phrases is most associated with scientific
management?
a. management relations
b. one best way
c. supply and demand
d. quality control
40. The primary issue that aroused Taylor to create a more scientific approach to
management was ______________.
a. worker efficiency
b. worker effectiveness
c. worker absenteeism and turnover
d. workplace safety
41. According to the textbook, probably the best-known example of Taylor’s scientific
management was the ______________ experiment.
a. horseshoe
b. pig iron
c. blue collar
d. fish tank
42. Based on his scientific management principles, Taylor suggested which of the
following pay principles?
a. monthly salary
b. monthly salary with bonus
c. seniority pay
d. incentive pay
43. A “therblig” concerns what scientific management workplace issue?
a. optimum temperature for workplace efficiency
b. basic hand motions
c. optimum speed for basic motions
d. weight/movement ratios
GENERAL ADMINISTRATIVE THEORISTS
44. General administrative theory focuses on ________________.

a. the entire organization
b. managers and administrators
c. the measurement of organizational design relationships
d. primarily the accounting function
(a; easy; p. 29)
45. One could say that Fayol was interested in studying ___________ management issues,
whereas Taylor was interested in studying ________ management issues.
a. micro; macro
b. macro; micro
c. micro; micro.
d. macro; macro
46. Which of the following is not one of Fayol’s principles of management?

a. division of work
b. unity of command
c. discipline
d. equality
47. The 14 principles of management are associated with whom?

a. Weber
b. Drucker
c. Taylor
d. Fayol
48. According to Weber’s ideal bureaucracy, ______________ is when people are selected
for jobs based on technical qualifications.
a. career orientation
b. authority hierarchy
c. impersonality
d. formal selection
49. Bureaucracy defined as a form of organization characterized by

__________________.
a. division of labor
b. clearly defined hierarchy
c. detailed rules and regulations
d. all of the above
QUANTITATIVE APPROACH TO MANAGEMENT
50. Which of the following approaches to management has also been labeled operations
research or management science?
a. the qualitative approach
b. the quantitative approach
c. the experimental approach
d. the theoretical approach
(b; easy; p. 31)
51. The quantitative approach evolved from the development of mathematical and
statistical solutions to ______________.
a. waiting line problems at fast-food restaurants in the 1960s
b. military problems in World War II
c. clogged telephone circuits during the 1930s
d. production management problems in the 1950s
(b; challenging; p. 31)
52. The quantitative approach involves applications of _______________.

a. statistics
b. optimization models
c. information models
d. computer simulations
e. all of the above
(e; moderate; p. 32)
53. Quantitative techniques have become less intimidating with the advent of
_______________.
a. training of these techniques in college
b. computers
c. sophisticated computer software
d. managers with better mathematical skills
e. quality control
54. ______________ is a technique that managers use to improve resource allocation

decisions.
a. Linear programming
b. Work scheduling
c. Economic order quantity modeling
d. Regression analysis
55. Decisions on determining a company’s optimum inventory levels have been

significantly influenced by _________________.
a. linear programming
b. work scheduling
c. economic order quantity modeling
d. regression analysis
56. Which of the following would not be associated with the quantitative approach to
management?
a. information models
b. critical-path scheduling
c. systematic motivation of individuals
d. linear programming
TOWARD UNDERSTANDING ORGANIZATIONAL BEHAVIOR
57. Concern for employee motivation is most closely associated with which management
approach?
a. bureaucracy
b. organizational behavior
c. scientific management
d. systems
(b; moderate; p. 32) http://vustudents.ning.com
58. According to the textbook, which of the following early advocates of organizational
behavior was concerned about deplorable working conditions?
a. Robert Owens
b. Hugo Munsterberg
c. Mary Parker Follett
d. Chester Barnard
59. Which of the following early advocates of organizational behavior created the field of
industrial psychology, the scientific study of people at work?
a. Robert Owens
b. Hugo Munsterberg
d. Chester Barnard
60. According to the textbook, ______________ was one of the first to recognize that
organizations could be viewed from the perspective of individual and group behavior.
a. Robert Owens
b. Hugo Munsterberg
d. Chester Barnard
61. Which of the following early advocates of organizational behavior was the
first to argue that organizations were open systems?
a. Robert Owens
b. Hugo Munsterberg
d. Chester Barnard
62. Which four theorists are associated with the early organizational behavior approach?
a. Barnard, Follett, Munsterberg, and Owen
b. Munsterberg, Taylor, Fayol, and Follett
c. Taylor, Fayol, Weber, and Barnard
d. Follett, Barnard, Munsterberg, and Weber
63. Which of the following was a major contribution of Hugo Munsterberg?

a. He was a social reformer.
b. He created the field of industrial psychology.
c. He was interested in individual and group behavior.
d. He viewed organizations as social systems requiring human cooperation.
64. Munsterberg’s work in industrial psychology is easily connected with what other
management approach?
a. general administrative
b. classical management
c. systems
d. scientific management
65. Contemporary management practices that emphasize work groups as a means to

increasing productivity can be traced to which of the following authors?
a. Robert Owen
b. Mary Parker Follett
c. Chester Barnard
d. Hugo Munsterberg
66. Which of the following is true concerning the management beliefs of Barnard?
a. Employee ability and motivation remain fixed within a single employee, but vary
across different employees.
b. To improve productivity, management should concentrate on selecting the best
employee rather than motivating current employees.
c. Productivity is best achieved by insulating the organization from external
constituencies.
d. Organizations are social systems that require human cooperation.
67. Without question, the most important contribution to the developing field of
organizational behavior came out of the ________________.
a. Taylor studies
b. Porter studies
c. Parker studies
d. Hawthorne studies
68. The Hawthorne studies were initially devised to study ______________.
a. productivity levels of groups versus individuals
b. the effect of noise on employee productivity
c. the effect of illumination levels on employee productivity
d. the effect of cooperative versus competitive organizational environments on
productivity
69. What scientist is most closely associated with the Hawthorne studies?
a. Adams
b. Mayo
c. Lawler
d. Barnard
(b; easy; p. 34)
70. One outcome of the Hawthorne studies could be described by which of the following
statements?
a. Social norms or group standards are the key determinants of individual work
behavior.
b. Money is more important than the group on individual productivity.
c. Behavior and employee sentiments are inversely related.
d. Security is relatively unimportant.
CURRENT TRENDS AND ISSUES
71. According to the textbook, the fastest growth in the U.S. workforce will be among
________________.
a. African-American workers
b. Asian workers
c. Turkish workers
d. German workers
e. Australian workers
72. Workforce diversity refers to differences in employees such as ________________.

a. gender
b. race
c. age
d. all of the above
73. Workforce diversity will be realized in the next decade most importantly by
_______ of the population in the United States.
a. increase in teenagers
b. aging
c. divorce rate
d. birthrate
74. TQM differs from earlier management theories because TQM costs can be lowered
while _______________.
a. decreasing costs
b. increasing productivity
c. allowing reworked production to be handled by special teams assigned to this
task
d. employees are laid off
75. A learning organization develops the capability to ______________.

a. add new training programs even when competitors are going bankrupt
b. accept conventional wisdom of the industry
c. continuously learn, adapt, and change
d. work in teams
76. __________ is the process of developing businesses to pursue trends and
changes that no one else has seen before.
a. Entrepreneurship
b. Division of labor
c. Evolution
d. E-commerce
(a; easy; p. 40)
77. Knowledge management involves encouraging the members of the organization to

________________.
a. improve the educational level of the average employee
b. develop new training programs to help new employees learn their jobs
c. develop a corporate university like Hamburger University at McDonald’s
d. systematically gather information and share it with others
78. The sales and marketing component of e-business is _____________.

a. intranet
b. evolution
c. e-commerce
d. extranet
(c; easy; p. 41)
79. ________ and ________ were two of the pioneers in the area of total quality
management.
a. Fayol; Weber
b. Taylor; Gilbreth
c. Owen; Munsterberg
d. Deming; Juran
80. Which of the following is not one of the three important themes that stand out in the
definition of entrepreneurship?
a. the pursuit of opportunities
b. the theme of innovation
c. the potential of failure
d. the theme of growth
81. ______________ is a comprehensive term describing the way an organization does its
work by using electronic (Internet-based) linkages with its key constituencies in order
to efficiently and effectively achieve its goals.
a. Electronic commerce
b. Electronic business
c. Virtual business
d. Technologically impaired
(b; easy; p. 40)
82. In which of the following categories of e-business involvement does an organization

use the Internet to perform its traditional business functions better, but not to sell
anything?
a. e-business enhanced organization
b. e-business enabled organization
c. total e-business organization
d. theoretical e-business organization
83. According to the textbook, Levi Strauss & Co. is categorized as which of the following
e-business involvements?
a. e-business enhanced
b. e-business enabled
c. total e-business
d. theoretical e-business
84. An internal organizational communication system that uses Internet technology and is
accessible only by organizational employees to communicate with its global workforce
is called a(n) _______________.
a. extranet
b. local area network
c. intranet
d. hypernet
85. An organization whose entire existence is made possible by and revolves around the
Internet is categorized as which of the following e-business involvements?
c. total e-business
d. theoretical e-business
86. This second theme of entrepreneurship involves changing, revolutionizing,
transforming, or introducing new products or services or new ways of doing business.
a. organizational structure
b. innovation
c. organizational systems
d. technology
87. According to the text, all of the following are mentioned as organizations that have
recognized the importance of knowledge management to being a learning organization
except _______________.
a. Hewlett-Packard
b. Toyota
c. General Electric
d. Boeing
88. ______________ is the generic term used to describe the quality revolution
that swept through both the business and public sectors during the 1980s and 1990s.
a. Ethno quality management
b. Total quality management
c. Hyper quality management
d. Partial quality management
89. All of the following are characteristics of total quality management except
_______________.
a. intense focus on the competition
b. concern for continual improvement
c. improvement in the quality of everything the organization does
d. accurate measurement
d. empowerment of employees
90. A ______________ organization is one that has developed the capacity to

continuously learn, adapt, and change.
a. virtual
b. learning
c. traditional
d. bureaucratic
91. ______________ involves cultivating a learning culture where organizational members

systematically gather knowledge and share it with others in the organization so as to
achieve better performance.
a. Systems management
b. Software management
c. Technical management
d. Knowledge management
92. All of the following are characteristics of a learning organization except
________________.
a. “if it was invented or reinvented here, reject it.”
b. “if you aren’t changing, it won’t be working for long.”
c. “ability to learn; knowledge and expertise.”
d. “control others.”
93. ____________ and ____________ were the most famous drivers of TQM.
a. Deming; Juran
b. Juran; Bailey
c. Bailey; Geerdhart
e. Taylor; Deming
94. _____________ is a philosophy of management driven by continual improvement and

responding to
customer needs and expectations.
a. Workplace religion
b. Workplace spirituality
c. Quality management
d. Knowledge management
Scenarios and Questions

HISTORICAL BACKGROUND OF MANAGEMENT
A Look Back (Scenario)
Cindy Schultz, tired from working with customers all day, decided to take a 15-minute nap to
help clear her head before the 4:15 P.M. managers’ meeting. Her company had recently begun
a reengineering process as well as other changes requiring copious management input. As she
leaned back in her chair, she wondered if management science had always been this way and
how it all began. As she napped, she dreamed that she was traveling in the “Management
Way Back Machine” with “Mr. Peabody” as her guide that took her back through
management history.
95. One of the earliest sites Cindy visited was the home of Adam Smith, author of The
Wealth of Nations, which suggested that organizations and society would gain from
_______________.
a. time management
b. division of labor
c. group work
d. quality management
96. Cindy visited a bookstore that was holding a book signing. She saw that the title of the
book was Principles of Scientific Management and concluded that the author must be
________________.
a. Adam Smith
b. Frank Gilbreth
c. Henry Gantt
d. Frederick Taylor
(d; easy; p. 28)
97. Cindy admired the works of Taylor and Gilbreth, two advocates of _______________.
a. scientific management
c. human resource management
d. motivation
98. Cindy spent some time visiting with __________, a researcher she previously knew
little about but who also contributed to management science by being among the first to
use motion picture films to study hand-and-body motions and by devising a
classification scheme known as a “therblig.”
a. Henry Gantt
b. Max Weber
c. Chester Barnard
d. Frank Gilbreth
e. Mary Parker Follett
Scientific Management (Scenario)
As an intern, Jeanna is perplexed as she hears different managers discuss their views on
particular problems. She has been assigned to several departments during her internship.
99. While trying to describe a problem, one manager utilizes analysis of basic work tasks
that are performed in the organization. It is most likely that this manager has studied
the work of _______________.
a. Frederick Taylor
b. Edward Deming
c. Max Weber
d. Henri Fayol
(a; challenging; p. 28)
100. As she talked to another manager, Jeanna learned a view of the organization that
stressed strict division of labor, formal rules and regulations, and impersonal
application of those rules and regulations. This manager was a student of -
_________________.
a. the Industrial Revolution
b. quantitative methods
c. spiritual knowledge
d. bureaucracy
101. One particular department in the organization made decisions about planning and
control of the organization. They used sophisticated computer software to develop
models, equations, and formulas that aid other managers to do their jobs. This
department utilizes _______________.
a. anthropology
b. bureaucracy
c. quantitative methods
d. spiritual management
(c: moderate; p. 32)
102. Jeanna worked in a department where employees were seen as the driving force
behind the organization, and contributions of individuals were seen as varied and
distinct. This department probably saw employees though the ____________ field of
study.
a. workplace diversity
c. quantitative studies
d. total quality management
103. One manager encouraged Jeanna to explore applications of statistics, optimization

models, information models, and computer simulations to management activities.
This manager was discussing _____________.
a. quantitative approach
b. workplace diversity
d. knowledge management
(a; easy; p. 32)
TOWARD UNDERSTANDING ORGANIZATIONAL BEHAVIOR
A major research effort started in the 1920s at a telephone equipment assembly plant in
Cicero, Illinois. The Industrial Revolution had sustained Western Electric for the last 50
years, but the latest attempts to use the principles of Taylor, the Gilbreths, and other theorists
had not produced improvements in productivity.
104. In cooperation with researchers from Harvard, managers designed a project that was
the last attempt to apply the principles of the Industrial Revolution and the first
research into a new area of management thought. This project began as a test to
determine the most productive _________________.
a. reward structure
b. illumination level
c. number of breaks during a shift
d. number of days away from work per month
105. This research effort lasted for 7 years and became known as ________________.
a. the Harvard Research Group
b. the Boston Consulting Group
c. quantitative management
d. the Hawthorne studies
106. The research project studied _________________.

a. behavior and sentiments
b. group influences on individual behavior
c. group standards affect individual behavior
d. all of the above
107. Critics of these research efforts criticized _______________.

a. the research procedures
b. analyses of findings
c. the conclusions based on the analyses of the findings
d. all of the above
108. The most important thing about these studies is that they ________________.
a. helped employees understand their own behavior, beginning the employee
empowerment movement
b. stimulated interest in human behavior in organizations
c. concluded that employees were no different from machines
d. showed that managers had to be right in all their decisions
The Human Side (Scenario)
As an engineer, Kevin was trained to understand the roles of machinery and hardware in
enhancing organizational productivity. However, Kevin was promoted to a managerial
position where his duties included supervising a department of 34 people and leading them
toward completion of a new project. Ever the perfectionist, Kevin decided to enhance his
understanding of the human side of business management by reading a history text on the
human resources approach.
109. Kevin read that ___________ was an early social reformer who is remembered most for
his/her courage and commitment to reducing the suffering of the working class.
a. Hugo Munsterberg
b. Robert Owen
d. Chester Barnard
110. Kevin also expanded his reading list to include works authored by ______________,
the creator of the field of industrial psychology.
a. Hugo Munsterberg
b. Robert Owen
d. Chester Barnard
111. Kevin was surprised to learn that using group-based projects was not a contemporary
concept. In fact, ___________ was an early 1900s social philosopher who thought that
organizations should be based on a group ethic.
a. Hugo Munsterberg
b. Robert Owen
d. Chester Barnard
112. Kevin also learned that the human resources approach was not limited to academic
theorists. A strong contribution to this field was made by _______________, an actual
manager who thought organizations were social systems that required cooperation.
a. Hugo Munsterberg
b. Robert Owen
d. Chester Barnard
CURRENT TRENDS AND ISSUES
The New Challenge (Scenario)
Tom has just been promoted to chief technology officer at his company, Global Tech
Solutions, Inc. His first assignment is to identify four project managers in the company that
are likely to successfully manage new projects. Tom selects Robert, Frank, Sue, and Jan, who
all are recent graduates from a local university. He informs them about a current situation.
113. During a discussion about e-business, Robert tells Tom that he understands that
______________ is a comprehensive term describing the way an organization does its
work by using electronic linkages with its key constituencies in order to efficiently and
effectively achieve its goals.
a. b-business
b. t-business
c. e-business
d. i-business
114. Discussing the three categories of e-business was not difficult. Tom simply stated that
the three categories included all of the following except _____________.
c. total e-business
d. cross-sectional e-business
115. Tom further clarified that many Fortune 500 type organizations are evolving into e-
businesses using the _______________ approach.
a. e-business-enhanced
b. e-business-enabled
c. total e-business
d. cross-sectional e-business
116. Sue asked for some examples of traditional organizations that have become e-business
enhanced. Tom replied that all of the following are examples except _______________.
a. Merrill Lynch
b. Yahoo!
c. Office Depot
d. Starbucks
Regional University (Scenario)
A regional university is trying to deal with many pressures to maintain its vitality in today’s
educational environment. It faces many challenges that test the managers at the university.
117. In an attempt to attract students from foreign counties, the university
designs a new department. This new department is tasked to attract international
students and move them into the mainstream of the university through an intensive
program that teaches English. This action could best be defined as
_______________.
a. bureaucracy
c. a quantitative approach
d. globalization
(d; easy; p. 37)
118. Realizing that the university needs to attract a heterogeneous mixture
of faculty, the university develops a plan to hire faculty from different genders,
races, and ages. This is seen as a move to develop _________ in the university.
a. workforce diversity
b. entrepreneurship
c. e-business
(a; easy; p. 39)
119. Although most university programs that offer degrees through classes on the Internet
are at either the associate degree or graduate level, this university decides to offer a
degree at bachelor’s level. This is an example of _________________.
a. workforce diversity
b. entrepreneurship
120. In an effort to improve operations in the university, Internet web pages
are developed to market the university, accept applications to the university, and
accept applications for campus housing. These operations are seen as parts of an
e-business _________ organization.
a. enhanced
b. enabled
c. capable
d. effective
121. Plans were made and classes were developed that would be delivered
through the Internet. These operations are seen as parts of an e-business
_________ organization.
a. enhanced
b. enabled
c. capable
d. effective
The New Business (Scenario)
Lois has started on her own children’s clothing store business. She is a bit nervous
but is confident she will do a good job. She remembers studying the different
approaches to management and knows when to use each approach.
122. Before opening day, Lois has to decide how much money she should put in her
budget toward advertising. This is using the _________________.
a. organizational behavior approach
b. quantative approach
c. qualitative approach
d. systems approach
123. Lois has three people she needs to interview for her manager position. Employee
selection procedures is an example of _______________.
a. organizational behavior approach
b. quantative approach
c. qualitative approach
d. systems approach
THE MANAGER: OMNIPOTENT OR SYMBOLIC?
29. What are the two views of managerial impact on the success or failure of the
organization?
a. omnipotent and symbolic
b. omnipotent and reflective
c. symbolic and interactive
d. reflective and interactive
30. The omnipotent view of management means ________________.
a. the top manager is the only person in charge
b. managers are directly responsible for an organization’s success or failure
c. that there is only one boss in the organization, and she or he is responsible for
delegating orders
d. managers have little or no responsibility for an organization’s success or failure
(b; easy; p. 50)
31. The __________ view of management is consistent with the stereotypical

picture of the take-charge business executive who can overcome any obstacle
in carrying out the organization’s objectives.
a. omnipotent
b. symbolic
c. functional
d. systems
(a; hard; p. 50)
32. The symbolic view of management means _____________.

a. managers are directly responsible for an organization’s success or failure
b. managers have little or no responsibility for an organization’s success or failure
c. that external forces are directly responsible for an organization’s success or
failure
d. the employees are directly responsible for an organization’s success or failure
(c; easy; p. 50)
33. Internal constraints that restrict a manager’s decision options _______________.

a. exist within every organization
b. do not exist, as all managers can decide as they please
c. exists only to the extent that upper management imposes them
d. exist only to the extent that followers won’t do as they are told
(a; easy; p. 51)
34. The current dominant assumption in management theory _______________.

a. suggests a balanced view of managers as symbolic and omnipotent
b. suggests managers are symbolic
c. suggests managers are omnipotent
d. is that both the symbolic and omnipotent views are fading
35. Which of the following views of managerial impact is useful in explaining the high
turnover among college and professional sports coaches who can be considered the
“managers” of their teams?
a. symbolic
b. omnipotent
c. generalist
d. autocratic
36. According to the symbolic view, managers have a(n) _____________ effect on
substantive organizational outcomes.
a. substantial
b. moderate
c. limited
d. unlimited
37. Managers operate within the constraints imposed by __________________.

a. government at the federal and state level
b. the employees of the organization
c. the organization’s culture and environment
d. the organization’s board of directors
38. A manager may be able to expand their area of discretion by

_______________.
a. telling the employees what to do
b. changing and influencing their organization’s culture and environment
c. electing new government officials at the federal and state level
d. changing employers and thus their boss
39. __________ that restrict a manager’s decision options exist within every
organization.
a. Internal constraints
b. External constraints
c. Organizational external environments
d. Organizational environment changes
(a; hard; p. 51)
THE ORGANIZATION’S CULTURE
40. Organizational culture is similar to an individual’s _____________.

a. skills
b. personality
c. motivation
d. ability
(b; easy; p. 52)
41. An organization’s culture is ______________.

a. represented in organizational meetings by the top manager of the organization
b. represented by a common perception held by interest groups that watch the
organization
c. represented by a common perception held by the organization’s members
d. changed when the organization is purchased by new owners
(c; hard; p. 52)
42. Organizational culture is concerned with how members perceive the

organization not whether they __________.
a. like it
b. like their peers
c. like their boss
d. like their customers
(a; easy; p. 52)
43. Strong cultures _____________.
a. are found in organizations with strong leaders
b. have a minimal influence on the employee when she or he is making decisions
c. can be found in all organizations that exist
d. have a greater influence on employees than do weak cultures
44. Employees in organizations with strong cultures _______________.

a. are more committed to their organization
b. are more likely to leave the organization than stay
c. are more willing to perform illegal activities
d. are more likely to follow directives from peers
45. Which of the following phrases is associated with the definition of organizational
culture?
a. individual response
b. shared meaning
c. diversity of thought
d. explicit directions
(b; easy; p. 52)
46. Which of the following is not mentioned in the textbook as a dimension of
organizational culture?
a. attention to detail
b. people orientation
c. compensation
d. aggressiveness
47. Sony Corporation’s focus on product innovation is an example of which of the

following dimensions of organizational culture?
a. attention to detail
b. people orientation
c. outcome orientation
d. aggressiveness
48. Corporate ___________ are repetitive sequences of activities that express and
reinforce the values of the organization, what goals are most important, which
people are important, and which are expendable.
a. languages
b. rituals
c. symbols
d. ceremonies
(b; easy; p. 57)
49. The most significant ways that culture is transmitted to employees consist of
__________.
a. rituals, tales of woe, symbols, and language
b. symbols, rituals, language, and systems
c. stories, rituals, symbols, and language
d. language, stories, rituals, and rewards
50. When employees at Microsoft use words such as: work judo, eating your own
dog food, and flat food, they are using organizational __________.
a. languages
b. rituals
c. symbols
d. ceremonies
(a; easy; p. 57)
51. Most organizations have ____________ cultures.

a. very weak
b. weak to moderate
c. moderate
d. moderate to strong
52. The original source of an organization’s culture usually ________________.

a. is shared among the first workers hired into the organization
b. is formulated by the board of directors when the organization is formed
c. identifies what the organization is successful doing
d. reflects the vision or mission of the organization’s founder
53. Organizational _____________ typically contain(s) a narrative of significant events or

people.
a. stories
b. rituals
c. charts
d. material symbols
54. All of the following are mentioned in the textbook as examples of material symbols
except ____________.
a. dress attire
b. size of offices
c. employee stock options
d. reserved parking spaces for certain employees
55. The link between organizational values and managerial behavior is _____________.
a. uncertain
b. fairly straightforward
c. loose and difficult to see
d. unimportant
56. By learning organizational language, member’s _________________.

a. can communicate with the stockholders of the organization
b. know that the boss will be promoting them to greater responsibility
c. attest to their acceptance of the culture and their willingness to help preserve the
culture
d. can share material symbols with other members
(c; hard; p. 57)
57. An organization’s culture ______________.

a. constrains what managers can do and are rarely explicit
b. seldom constrains what managers can, cannot do, and are rarely explicit
c. seldom constrains what managers can, cannot do, and are rarely implicit
d. constrains what managers can, cannot do, and are rarely explicit
(d; hard; p. 52)
THE ENVIRONMENT
58. External environment refers to _________________.

a. institutions outside the organization that affect the organization’s performance
b. forces and institutions outside the organization that potentially can affect the
organization’s performance
c. forces and institutions inside the organization that affect the organization’s
performance
d. forces inside the organization that affect the organization’s performance
(b; hard; p. 64)
59. According to the textbook, the _______________ environment includes those

constituencies that have a direct and immediate impact on managers’ decisions and
actions and are directly relevant to the achievement of the organization’s goals.
a. general
b. specific
c. secondary
d. forward
60. An organization’s specific environment ________________.

a. is unique and changes with conditions
b. is the same regardless of the organization’s age
c. is determined by the top level of management
d. is quantified to determine its existence
61. The specific environment of organizations consists of constituencies that have a

direct impact on managers’ decisions and actions. The main constituencies are
made up of customers, suppliers, competitors, and __________.
a. legislators
b. pressure groups
c. employees
d. lawyers
62. Which of the following is not an example of a constituency that makes up the specific
environment?
a. customers
b. sociocultural factors
c. suppliers
d. competitors
63. When you think of an organization’s suppliers, you ________________.

a. know that they are the main customers of the organization
b. typically think of governments that pass the laws the organization must follow
c. know that they are located close to the buying organization
d. typically think in terms of organizations that provide materials and equipment
64. Managers seek to ensure a steady __________________.

a. cash flow from stockholders into the organization
b. flow of needed inputs at the lowest price available
c. flow of customers at the company’s outlet store
d. flow of suppliers to keep the competition among suppliers at a peak
65. The Internet is having an impact on who an organization’s competitors are
because it has _____________.
a. defined the common markets for the organizations
b. made the products they sell invaluable to the customer
c. virtually eliminated the need for shopping malls
d. virtually eliminated the geographic boundaries
(d; hard; p. 66)
66. For a company such as Walt Disney World in Florida, a bank would be an example of
what kind of factor in their specific environment?
a. competitor
b. supplier
c. special-interest group
d. government agency
67. Which of the following is not an example of a specific environmental factor?

a. suppliers
b. political conditions
c. governmental agencies
d. B and C are correct.
68. For an organization such as a hospital that needs nurses, the labor union and the local
labor market are examples of what kinds of factors in their specific environment?
a. special-interest group and supplier
b. customer and special-interest group
c. both are examples of suppliers
d. government agency and competitor
69. Typically, the specific organizational environment includes which of the following?
a. economic factors
c. technological factors
d. competitors
70. United Parcel Service represents what factor to the U.S. Postal Service in its specific
environment?
a. competitor
b. supplier
c. customer
71. The general economic condition consist of all of the following except
_______________.
a. legislation recently passed by Congress
b. interest rates
c. change in disposable income
d. stock market fluctuations
72. Sociocultural conditions consist of _______________.

a. demographic profiles of the organization’s suppliers
b. legal issues as determined by court decisions
c. the level of unemployment and real economic incomes of workers
d. changing expectations of the society in which they operate
(d; hard; p. 67)
73. To a national network such as NBC, your home VCR is considered a _____________.
a. customer
b. supplier
c. special-interest group
d. competitor
74. According to the textbook, _____________ is having an impact on determining an

organization’s competitors because it has virtually eliminated the geographic
boundaries.
a. local area network
b. the intranet
c. the Internet
d. video conferencing
(c; easy; p. 66)
75. Ralph Nader’s Center for Responsive Law is an example of what factor in the specific
external environment?
a. competitor
b. pressure group
c. customer
76. Typically, the general organizational environment includes which of the following?
a. political conditions
b. issues directly relevant to achieving organizational goals
c. stakeholders
d. suppliers
77. Compared to the specific environment, which of the following is an accurate statement
about the general environment of an organization?
a. It has less impact on the organization’s operations.
b. It has more impact on the organization’s operations.
c. It has about the same impact on an organization’s operations.
d. It is the concern of upper management.
78. Which of the following is not an example of an organization’s general environment?

a. economic conditions
c. social conditions
d. industry conditions
79. Interest rates, inflation rates, and stock market indexes are all examples of what factor
in an organization’s general environment?
a. economic
b. political
c. social
d. technological
80. The Americans with Disabilities Act of 1990 is an example of a __________.

a. sociolegal condition
b. political/legal condition
c. political/sociological condition
d. sociocultural condition
81. A downturn in the contributions from the public to the United Way charity is an
example of the impact from what factor in its general environment?
a. political
b. social
c. technological
d. economic
82. According to the textbook, which of the following groups includes individuals who
were born between the years 1946–1964?
a. the Depression group
b. the World War II group
c. the baby boomers
d. Generation X
83. According to the textbook, the members of which one of the following groups are
thinking, learning, creating, shopping, and playing in fundamentally different ways that
are likely to greatly impact organizations and managers?
a. the Depression group
b. the World War II group
c. the baby boomers
d. Generation Y
84. Generation Y is predicted to be __________ their baby boomer parents’

generation.
a. as large as, if not larger than
b. large, but not as large as
c. not anywhere nearly as large as
d. much, much smaller than
85. Which factor has been the most rapidly changing component in an organization’s
general environment in the past quarter-century?
a. global
b. economic
c. social
d. technological
86. The enhanced speed and quality of managerial decision making due to an integrated
office system is an example of the impact of which general environmental factor?
a. global
b. social
c. political
d. technological
87. Which of the following are the two dimensions of environmental uncertainty?
a. degree of change and degree of complexity
b. degree of change and degree of volume
c. degree of complexity and degree of impact
d. degree of impact and degree of timing
88. We call it a __________ environment if the components in an organization’s

environment change frequently.
a. moving
b. diverse
c. dynamic
d. difficult
(c; hard; p. 69)
89. Managers try to minimize __________ because it is a threat to an

organization’s effectiveness.
a. product development
b. uncertainty
c. price charges
d. the number of suppliers
90. __________ are any constituencies in the organization’s external environment

that are affected by the organization’s decisions and actions.
a. Stockholders
b. Pressure groups
c. Suppliers
d. Stakeholders
91. According to the textbook, _______________ refers to the number of components in an

organization’s environment and the extent of the knowledge that the organization has
about those components.
a. degree of stability
b. openness
c. degree of complexity
d. change
92. The first step of managing external stakeholder relationships is to identify who the
stakeholders are. The second step is to _________________.
a. determine what specific approach they should use to manage the stakeholder
relationship
b. determine what the courts might do when stakeholder files a claim against the
organization
c. determine what particular interests or concerns these stakeholders might have
d. determine how many stakeholders there are in each stakeholder group
(c; hard; p. 71)
Scenarios and Questions

For each of the following, choose the answer that most completely answers the question.
Corporate Takeover (Scenario)
Todd works for SeaLan Tech, an environmental consulting firm that has just been purchased
by Zerex, Inc., a biomedical research organization. Based on his early encounters with the
new upper management from Zerex, he feels that SeaLan is a “lower-key, friendlier”
organization. He is concerned that the new company will eliminate SeaLan ’s old culture, and
he does not like the prospects.
93. If you were talking with Todd and asked him what the term culture meant, he would
reply that, basically, it is _________________.
a. the formal rules of an organization
b. the nationality of the workers in the company
c. a system of shared meaning
d. a system that reflects diversity and respect for differences
(c; easy; p. 52)
94. Todd is concerned with the degree to which managers focus on results or outcomes
rather than techniques and the processes used to achieve those outcomes. He is
concerned with _____________.
a. stability
b. aggressiveness
c. team orientation
d. outcome orientation
95. Todd notices that management is very concerned with the effects of outcomes on
people within the organization. This is referred to as _____________.
a. stability
b. aggressiveness
c. team orientation
d. people orientation
96. Todd is assessing the organization’s _____________, the degree to which
organizational activities emphasize maintaining the status quo in contrast to growth.
a. stability
b. aggressiveness
c. team orientation
97. Todd has been learning the seven dimensions of organizational culture. Which of the
following is not one of those seven dimensions?
a. stability
b. aggressiveness
c. member orientation
Changing Organizational Culture (Scenario)
Mary has been asked by the company president to change the organizational culture to reflect
the company’s new organizational goals. As executive vice president, she certainly
understands the goals, but is really not sure that she understands what to do about the culture.
98. Mary asked employees if they knew what constituted “good employee behavior.” She
found that very few understood, and most had a variety of ideas. This is one indication
that her company _______________.
a. has a strong culture
b. has a weak culture
c. has no culture
d. must have high turnover
99. Mary also found out that in order to build a strong new culture, she should do all but
which of the following?
a. utilize their recruitment efforts
b. develop socialization practices to build culture
c. encourage a high turnover rate
d. have management make explicit what is valued in the organization
100. Mary was surprised to find that most organizational culture strengths are
____________.
a. weak
b. weak to moderate
c. moderate to strong
d. strong
THE MANAGER: OMNIPOTENT OR SYMBOLIC?
101. Mary has also been asked, as part of the cultural change, to build on the belief that
managers are directly responsible for the organization’s success or failure and not
forces outside their control. This would be consistent with an organizational culture that
has a(n) ______________ view of management.
a. traditional
b. omnipotent
c. standard
d. symbolic
102. The new view of management change for the new culture will be difficult because, in
the past, success has been viewed as being outside management’s control, a view
known as _____________.
a. traditional
b. omnipotent
c. standard
d. symbolic
THE ENVIRONMENT
Environmental Constraints (Scenario)
It is safe to say that managers do not have complete control over organizational outcomes; the
environment has a significant impact. However, there are different environmental factors that
shape a manager’s work life.
103. As a manager, if you were working in an industry that was dependent on Internet
connections and the many new customers vying for the same space, this would be an
example of what kind of environment?
a. general
b. static
c. stable
d. dynamic
104. Political conditions, which include attitudes that officials hold toward
specific industries, fall within an organization’s _____________ environment.
a. global
b. internal
c. competitive
d. general
DEFINING THE EXTERNAL ENVIRONMENT
The Election (Scenario)
At the present time, your organization is confronting the election of a new president and
congress, changes in how the customer wants your product to look in design, changes in the
age and education level of your customer, and the desire of the customer to have the product
made in the newly discovered plastics used in the construction of your product.
105. The changes in the presidency and congress compose what for your organization?
a. general environment
b. specific environment
c. pressure group
d. interest group
106. The change in how the customer wants your product to look in design is an
example of what?
c. pressure group
d. interest group
(b; hard; p. 64)
107. The changes in the age and education level of your customer are an example of
a. economic condition
c. sociocultural condition
d. technological condition
108. To have the product made in the newly discovered plastics used in the
construction of your product is an example of which of the following?
a. economic condition
c. sociocultural condition
d. technological condition
The New Medical Product (Scenario)
You are a manager of marketing and are planning on introducing a new medical product that
has stirred up controversy among certain public groups. Members of the research and
development staff have pointed out that the company has a history of introducing
controversial products and being successful doing so. Members among your staff have stated
that this product is more controversial than any product introduced previously.
109. The public group that is opposed to the introduction of the new medical product
is known as which of the following?
a. service group
b. defense group
c. pressure group
d. informal group
110. When looking at the introduction of the new product into particular market
niche, this niche is which of the following to the organization as a whole?
c. political/legal condition
d. sociocultural condition
(b; hard; p. 64)
111. The research and development department is acting on the common perception
held by that department known as what?
a. omnipotent view of management
b. organizational culture
c. internal constraint
d. external constraint
(b; hard; p. 52)
112. The marketing staff’s resistance to introducing the new medical product is
which of the following for the marketing manager?
a. omnipotent view of management
b. organizational culture
c. external constraint
d. internal constraint
STRONG VERSUS WEAK CULTURE
113. If the marketing department staff had agreed with the research and development
staff, then it could be said that the organization probably possesses what?
a. strong culture
b. weak culture
c. specific internal environment
d. specific internal constraint
(a; easy; p. 53)
Operating Within the Environment (Scenario)
The environment places constraints on the behavior of managers. Suppose you are a manager
trying to understand the forces within your organization’s environment.
114. Imagine you are the manager of a real estate office trying to maximize profits. If the
mortgage interest rates increase, this would be an example of changing ____________
in your general environment.
a. economic conditions
c. competition
d. social conditions
Chris Co. (Scenario)
Mr. Taylor haw been hired by Chris Co., a manufacturer of precious metal jewelry. Chris Co.
has been having significant issues with some of their major stakeholders such as poor quality
from their suppliers and complaints from their customers. Mr. Taylor has been hired to help
resolve these issues and to help build a plan for resolving the company’s problem with their
major stakeholders.
115. Mr. Taylor finds out how critical each stakeholder is to the organization’s decisions and
actions. This is the ____________.
a. first step
b. second step
c. third step
d. final step
(c; easy; p. 71)
116. Mr. Taylor identifies who the organizations’ stakeholders are. This is the
______________.
a. first step
b. second step
c. third step
d. final step
(a; easy; p. 71)
117. Mr. Taylor decides how to manage the external stakeholder relationships. This is the
____________.
a. first step
b. second step
c. third step
d. final step
(d; easy; p. 71)
WHAT’S YOUR GLOBAL PERSPECTIVE?
28. In a global marketplace ____________.

a. the entire world is a marketplace
b. national borders are irrelevant
c. the potential for organizations to grow expands dramatically
d. all of the above
29. In a global marketplace managers must _____________.

a. deal with economic, political, and cultural differences
b. expect competitors to suddenly appear at any time from any place
c. not take specific differences of a local environment into consideration
d. a and b
30. One reason for parochialism in the United States is that Americans tend to study
_____________ in school.
a. only English
b. only two languages
c. English and French
d. English and German
(a; easy; p. 79)
31. Which of the following describes the current state of the world use of languages?
a. Germans and Italians, unlike other Europeans, only speak their native language.
b. Americans tend to study many other languages in school.
c. Most Japanese begin learning English by their third year of high school.
d. Americans tend to think of English as the only international business language.
32. Ethnocentric views concentrate on their _____________.

a. home country
b. host country
c. world orientation
d. racial orientation
(a; easy; p. 80)
33. _____________ is a sign that Americans suffer from parochialism.

a. Multinationalism
b. Monolingualism
c. Geocentrism
d. Polycentrism
34. Parochialism is ____________.

a. acceptance of diverse points of view
b. a desire to leave one’s own culture for a foreign culture
c. a tendency to view the world through a single perspective
d. recognition of diverse religious beliefs
35. For U.S. businesses to have successful global management, which of the following
statements provides the best advice?
a. Americans should continue to push for the use of English only.
b. Stick to your own customs to avoid embarrassing incidents.
c. Make sure foreign businesspeople know you are American so they will speak to
you in English.
d. Develop an understanding of multicultural differences.
36. Which of the following is the least favorable attitude for an American manager who
wishes to be successful in international business?
a. multicultural
b. multicountry
c. ethnocentric
d. polycentric
(c; easy; p. 80)
37. Managers with a(n) ___________ attitude view every foreign operation as different and
hard to understand.
a. geocentric
b. ethnocentric
c. selfless
d. sensitive and caring
38. Successful global management requires an attitude that is best described as

_____________ .
a. ethnocentric
b. parochial
c. polycentric
d. geocentric
(d; easy; p. 80)
39. A(n) __________ attitude is characterized by parochialism.

a. geocentric
b. nonlinguistic
c. selfless
d. ethnocentric
40. A(n) _____________ attitude is the view that host-country managers know the best
practices for running their operations.
a. ethnocentric
b. polycentric
c. geocentric
d. international
(b; easy; p. 80)
41. The geocentric attitude is a _____________ view.

a. national
b. world
c. culture-bound
d. narrow
42. _____________ management requires enhanced sensitivity to differences in national

customs and practices.
a. Ethnocentric
b. Polycentric
c. Global
d. Parochial
43. Successful global management requires ______________.

a. rigid application of home-country practices
b. enhanced sensitivity to differences in national customs and practices
c. Americanization of foreign managers
d. teaching English to foreign nationals
UNDERSTANDING THE GLOBAL ENVIRONMENT
44. The _____________ was created by the unification of 12 countries in Europe.

a. European Common Market
b. European Union
c. Western European Alliance
d. Trans-European Market (TEM)
45. The _____________ is a collection of countries that use a common currency.

a. European Common Market
b. European Union
c. Western European Alliance
d. Economic and Monetary Union (EMU)
46. The principle reason for formation of the regional trading alliance in Europe was to
reduce the power of the United States and _________.
a. Canada
b. Mexico
c. Japan
d. Russia
47. The European Union covers ______________.
a. border controls, taxes, and subsidies
b. nationalistic policies and travel
c. employment, investment, and trade
d. all of the above
48. The single EU currency will be called the ____________.

a. franc
b. franc-mark
c. pound
d. euro
49. The European Union consists of ___________.

a. 12 countries
b. 15 countries
c. 12 countries with plans to add more
d. 25 countries with plans to add 2 more in 2007
50. Within the members of the North American Free Trade Agreement, trade has
___________ since the treaty was signed.
a. decreased initially, but increased steadily
b. increased
c. decreased
d. increased in commodities, but decreased in manufactured goods
51. The primary motivation for joining the European Union was ______________.
a. to reduce the economic competitiveness with other parts of the world
b. to increase the political power of European countries in worldwide peace
negotiations
c. to control tax exemptions within Europe and encourage intermember cooperation
in apprehending tax cheaters
d. to reassert their economic power against America and Japan
52. The North American Free Trade Agreement _________________.

a. includes Mexico, Canada, and the United States
b. includes Mexico, Brazil, and Columbia
c. reduced trade between the United States and Canada
d. reduced the economic power of Canada and the United States and increased the
power of Mexico
(a; easy; p. 82)
53. Thirty-six countries in the Caribbean region, South America, and Central
America are developing a regional trade alliance called __________.
a. NAFTA
b. FTAA
c. Mercosur
d. ASEAN
54. The overall effect of the North American Free Trade Agreement was to
________________.
a. eliminate the need for import licensing
b. increase the customs user fees while reducing tariffs
c. reduce trade between Mexico and the United States
d. increase trade between the United States and Venezuela
55. International businesses have been around since about what date?
a. the fifteenth century
b. the seventeenth century
c. the nineteenth century
d. the twentieth century
56. Multinational corporations (MNCs) have only become commonplace since

approximately what date?
a. mid-1960s
b. mid-1970s
c. 1945
d. mid-1980s
57. The Association of Southeast Asian Nations includes ________________.

a. the members of the European Union and India
b. the members of the North American Free Trade Agreement and the European
Union
c. the countries of the former Soviet Union
d. none of the above
58. Multinational corporations are known for _______________.

a. ethnocentric attitudes
b. polycentric attitudes
c. multicentric attitudes
d. having their holdings in one country
59. Transnational corporations _________________.

a. maintain operations in multiple counties, but do not allow managers in each
country to make their own decisions
b. utilize ethnocentric attitudes in financial decisions, but favor polycentric views in
human resources issues
c. utilize decentralization to make decisions in management in local countries
d. follow the tastes, preferences, and values of the home country
60. When an organization drops its structure based on countries and reorganizes according
to industries, it is pursuing a global organizational operation known as ___________.
a. ethnocentrism
b. polycentrism
c. borderless organization
d. multinational organization
61. Borderless organizations are developed to _________________.

a. increase efficiency
b. increase effectiveness
c. become more aggressive in international sales
d. all of the above
62. A borderless organization __________________.

a. utilizes ethnocentrism
b. focuses its efforts on a polycentric attitude
c. globalizes by eliminating structural divisions that impose artificial geographical
barriers
d. is another version of a multinational organization
63. Which of the following is a basic definition of a multinational corporation?

a. a company that maintains significant operations in at least two different countries
b. a company that maintains significant operations in at least two different countries but is
based in one home country
c. a company that maintains significant operations in at least two different countries
and has multiple home bases
d. a company that does business and pays taxes in at least two countries
64. Which of the following is the basic difference between multinational corporations and
transnational corporations?
a. Multinational corporations typically do business with more countries than
transnational corporations do.
b. Transnational corporations are run by the parent company but must be owned by
a local, national company.
c. Decision making in transnational corporations takes place locally rather than from the
home country.
d. Multinational corporations pay more in taxes than transnational corporations do.
65. Which of the following is not a feature of a transnational corporation?

a. decision making takes place at the local level.
b. nationals are typically hired to run operations in each country.
c. marketing strategies are tailored to each country’s culture.
d. products are manufactured only in the local country.
(d; easy; p. 84)
66. Which of the following types of global organizations reflects the polycentric attitude?
a. multinational
b. transnational
c. polycentric
d. regional
HOW ORGANIZATIONS GO GLOBAL
67. How many stages are there in an organization’s evolution into a global organization?
a. one
b. two
c. three
d. five
(c; easy; p. 85)
68. In an attempt to be more aggressive, a company might export and import more. This is
referred to as the ____________.
a. Stage I of doing business globally
b. Stage II of doing business in a polycentric manner
c. Stage III of business incorporation
d. abnormal operations for an geocentric organization
69. In Stage II of doing business globally, an organization would ________________.

a. begin importing and exporting
b. begin importing, but not exporting goods
c. send employees to foreign countries as salespeople or hire brokers in other
countries
d. keep employees in the home country
70. In Stage III of doing business globally, an organization would utilize ______________.
a. licensing and franchising
b. strategic alliances
c. joint ventures
d. all of the above
71. Which of the following characterizes the first stage of an organization’s global
evolution?
a. exporting its products to other countries
b. cross-culturally training its managers
c. hiring foreign brokers to represent the organization’s product line
d. sending domestic employees on regular foreign business trips
72. Which of the following characterizes Stage II of an organization’s global evolution?

a. exporting its products to other countries
b. cross-culturally training its managers
c. hiring foreign representation
d. licensing another firm to use its brand name
73. Joint ventures are also termed ____________.

a. licenses
b. franchises
c. foreign subsidiaries
d. strategic alliances
74. Creating a strategic alliance occurs during which stage of an organization’s global
evolution?
a. I
b. II
c. III
d. IV
(c; easy; p. 85)
75. A domestic firm and a foreign firm sharing the cost of developing new products or
building production facilities in a foreign country is called a ____________.
a. franchising agreement
b. joint venture
c. foreign subsidiary
d. brokering agreement
76. Which of the following characterizes Stage III of an organization’s global evolution?
a. Cross-culturally training its managers
b. Sending domestic employees on regular foreign business trips
c. Hiring foreign brokers to represent the organization’s product line
d. Management may create a joint venture
77. _____________ present(s) the greatest risk to an organization going international.

a. Joint ventures
b. Strategic alliances
c. Licensing
d. Foreign subsidiaries
MANAGING IN A GLOBAL ENVIRONMENT
78. Which of the following is not listed by your textbook as an area of significant challenge
for an American manager working in a foreign country?
a. legal environment
b. economic environment
c. cultural environment
d. religious environment
79. From an economic standpoint, a threat to the global manager is _________________.

a. widely fluctuating inflation rates in foreign countries
b. marginal revenues exceeding marginal costs
c. a stable exchange rate between currencies in various countries
d. all of the above
(a; easy; p. 87)
80. Compared to many other countries, the U.S. legal–political environment is considered
____________.
a. radical
b. stable
c. unstable
d. fixed
81. Compared to many other countries, changes to the U.S. legal–political environment are
considered ___________.
a. very fast and effective
b. fast, but not efficient
c. radical
d. slow
82. The reason that a nation’s cultural differences are the most difficult to gain information
about is because __________________.
a. people tend to be sensitive about their own culture
b. providing this information to foreign organizations reduces a competitive
business advantage
c. there is little written on the issue
d. “natives” are least capable of explaining the unique characteristics of their own
culture
83. According to the textbook, the most valuable framework to help managers better
understand differences between national cultures was developed by ______________.
a. Milton Friedman
b. Michael Porter
c. Geert Hofstede
d. Abraham Maslow
84. _____________ is a cultural dimension in which people expect others in their group to
look after them and protect them when they are in trouble.
a. Power distance
b. Collectivism
c. Quantity of life
d. Uncertainty avoidance
(b; easy; p. 90)
85. Which of the following would you find in a country with a high power distance?
a. Society accepts narrow differences in organizations.
b. Title carries little power, but status power is high.
c. There is little respect for those in authority.
d. In a meeting, organizational representatives have widely different status and titles.
86. _____________ is a cultural measure of the degree to which people will tolerate risk
and unconventional behavior.
a. Power distance
b. Uncertainty avoidance
c. Quantity of life
d. Quality of life
(b; easy; p. 90)
87. According to the textbook, organizations in which of the following cultures are likely to
have formal rules and little tolerance for unusual ideas and behaviors?
a. high power distance
b. low power distance
c. high uncertainty avoidance
d. low uncertainty avoidance
(c; easy; p. 90)
88. In a society with a large ______________, titles, rank, and status carry a lot of weight.
a. collectivism
b. power distance
c. compassionate conservatism
d. uncertainty avoidance
89. _____________ is a national culture attribute describing the extent to which societal
values are characterized by assertiveness and materialism.
a. Power distance
c. Quantity of life
d. Quality of life
90. _____________ is a national culture attribute that reflects the emphasis placed on
relationships and concern for others.
a. Power distance
c. Quantity of life
d. Quality of life
91. Which of the following is most like the United States in terms of power distance,
uncertainty avoidance, and quantity-of-life dimensions?
a. Singapore
b. Great Britain
c. Portugal
d. Pakistan
(b; easy; p. 90)

WHAT’S YOUR GLOBAL PERSPECTIVE?
First Visit Abroad (Scenario)
Bill Sanderson is halfway over the Atlantic and is excited about his first European business
trip. His goal is to scout out potential locations and basically provide input on how the
company should proceed with expansion abroad. There are many options, including
maintaining the business’ head office in the United States and sending over company
representatives when necessary or developing a separate company in Europe and hiring locals
as managers. In any case, he is confident about this trip but is somewhat concerned about the
strange habits and foreign languages (if only they would just speak English like everyone
else!).
92. Bill’s tendency to view the world only through his U.S.-based eyes and perspectives is
an international business problem known as which of the following?
a. nondiversity
b. discrimination
c. parochialism
d. monolingualism
93. If Bill’s company decided to open another company in France but maintain the base in
the United States, it would be considered _________________.
a. a transnational corporation
b. an international company
c. a regional trade alliance
d. a multinational corporation
94. If Bill’s company decides to open a completely new operation in Germany, tailoring the
company to local customs and marketing strategies and hiring local managers, they
would be considered _______________.
a. a transnational corporation
b. an international company
c. a regional trade alliance
d. a multinational corporation
95. If Bill’s company eliminated country-designated locations and reorganized based on

industry groups, it would best be considered a __________________.
a. borderless organization
b. transnational organization
c. global business alliance
d. multinational corporation
96. If Bill is to become successful as a global manager, he must _______________.

a. attempt to change other cultures to American ways
b. learn and accept other cultures
c. compete internationally but remain in the United States
d. learn to manipulate other business cultures
Jane wants to expand her career opportunities in international operations of a company. She is
19 years old and currently attends a university. She has only lived in her current country and
has never traveled to foreign countries.
97. Jane decides to enroll in a foreign language class to help her overcome her
______________.
a. parochialism
b. ethnocentric attitude
c. monolingualism
d. polycentric attitudes
98. In talking with her advisor at the university, Jane decides she probably has
a(n) __________ attitude, as she has never traveled abroad and only relates well to
people from her home country.
a. parochialistic
b. polycentric
c. ethnocentric
d. geocentric
99. Jane becomes involved with an international student association to give her experiences
that will allow her to understand the views of students from other countries. She is
trying to become more _________ in her attitude.
a. parochialistic
b. polycentric
c. ethnocentric
d. geocentric
100. Jane selects a class that helps to learn about licensing, franchises, strategic alliances,
and joint ventures. She hopes to find an employer who is or plans to move toward being
in _________ of their global business operations.
a. Stage I
b. Stage II
c. Stage III
d. Stage IV
101. In the university catalog she finds a class description that includes the acronyms, EU,
NAFTA, FTAA, and ASEAN. These refer to ________________.
a. regional trade alliances
b. foreign airlines
c. soccer teams in Europe
d. new multinational corporations
Theodore and James have formed an entrepreneurial venture to develop software for banks
and other financial institutions. Their company is growing, but in looking for opportunities in
the future, they decide to explore international operations.
What is Your Global Perspective?
102. Theodore and James feel that people in foreign countries will not have the skills,
expertise, knowledge, or experience to write, sell, or install the software. They have
a(n) _________ attitude.
a. self-righteous
b. ethnocentric
c. polycentric
d. geocentric
103. After Theodore and James began their company’s operations in the United States, they
realized that a regional trade agreement existed that would allow them to avoid tariffs in
___________.
a. Japan and Germany
b. Europe
c. Western, but not Eastern Europe
d. Mexico and Canada
104. The international operations in this firm grew. Theodore and James have come to see
that decentralized management using foreign nationals to run operations in their home
countries works well. Their firm has developed into a(n) ____________ organization.
a. transnational
b. multinational
c. borderless
d. international
105. A new and exciting opportunity has appeared that enables Theodore and James to form
a joint venture with an insurance company in Japan. This will move their firm into a
global role of a ___________ organization.
a. Stage I
b. Stage II
c. Stage III
d. multinational
106. Theodore and James decide to allow a firm in Europe to use the rights to their software, its
brand name, and software specifications in return for a lump-sum payment. This agreement
is known as a ________________.
a. strategic alliance
b. licensing agreement
c. franchise
d. foreign subsidiary
UNDERSTANDING THE GLOBAL ENVIRONMENT
A Foreign Alliance Talk (Scenario)
As manager of the international department for your company, you have been asked by the
local Chamber of Commerce to deliver a speech on foreign trade. The Chamber president
even goes so far as to say “and be sure to include the EU, NAFTA, and all that stuff because
we’re afraid that Ross Perot is right—all the good jobs will leave the United States.” As you
pour over your notes, you are trying to decide what is the best information you can present in
the allotted half hour.
107. One of the hottest topics of your talk will be NAFTA, an issue that has the attention of
the local business community. You realize that the results are not in, but one outcome
that seems certain is that ______________.
a. the United States will definitely come out the worst of the three nations
b. Canada will profit the most in this arrangement
c. the expansion of NAFTA would be essential to North America’s future competitiveness
and economic power
d. U.S. high-tech companies, such as computer manufacturers, will be hit hard
108. You will close by giving them a likely view of the future of NAFTA, which suggests
that _______________.
a. it will likely disband by the year 2010
b. it is expected to merge with the EU by 2020
c. other Latin American counties will soon become partners
d. Cuba is the next partner in NAFTA
A Different View (Scenario)
John has done well in his company. In only 5 years, he has risen to the position of divisional
manager. However, he knows that in order to rise to the level of senior management, he needs
to spend some time managing abroad in his company’s foreign subsidiaries. Although he has
traveled to foreign countries on business and vacations, he has never lived abroad and
wonders what differences he would find. He is considering applying for a new foreign-based
position, but first wants to learn about some basic differences between managing in the
United States and managing in a foreign country. He researched the topic of international
management and found many helpful facts about countries and their people.
109. John found out that, compared to managers in many other countries, U.S. managers are
accustomed to legal and political systems that are ____________.
a. stable
b. fixed
c. boring
d. extreme
(a; easy; p. 87)
110. John found out that wealthier nations, such as the United States, tend to
______________.
a. have high uncertainty avoidance
b. be individualistic
c. be collectivist
d. have large power distance
111. John also found out that in some countries, such as Venezuela, titles, rank, and status
carry a lot of weight. These countries have a large _________________.
a. uncertainty avoidance
b. quality of life
c. quantity of life
d. power distance
112. John knew that he did not want to manage in a country where the people have high
anxiety, nervousness, and stress. He will, therefore, try to avoid countries characterized
as having high _______________.
a. uncertainty avoidance
b. quality of life
c. quantity of life
d. power distance
The European Expansion (Scenario)
You have been hired by a company to look at the ways to best move the company into the
European market but you have to first determine what kind of company you are dealing with.
113. If the company that has hired you is primarily used by manufacturing organizations, it
is a ___________.
a. licensing company
b. franchising company
c. strategic alliance
d. joint venture
114. If the company that has hired you is primarily used by service organizations, it is a
______________.
d. joint venture
115. If the company that has hired you is really a partnership between an organization and
a foreign company in which both share resources and knowledge in developing new
products, than it is a _______________.
d. joint venture
The Overseas Assignment (Scenario)
Christopher has a degree in business administration and has worked for a major corporation
for 5 years. He is offered a chance to work in another country.
116. Through research on the Internet, Christopher finds that in this country’s social
framework, people are expected to look after others in their family (or organization)
and protect them when they are in trouble. This society tends to support
______________.
a. collectivism
b. parochialism
c. individualism
d. monotheism
117. This new country’s people are favorably influenced by Christopher’s job title, and the
status given by his experience of having worked in the home office for 5 years. This
country has a large _______________.
a. interest in attracting foreign executives
b. sense of uncertainty avoidance
c. uncertainty avoidance
d. power distance
118. Through talking to executives in the international division, Christopher realizes that
his home country has the highest individualism, low power distance and uncertainty
avoidance, and a high quantity of life. He probably lives in _____________.
a. Great Britain
b. Japan
c. United States
d. Canada
Multiple-Choice Questions
WHAT IS SOCIAL RESPONSIBILITY?
26. Employee relations, philanthropy, pricing, resource conservation, product

quality and safety, and doing business in countries that violate human rights are
some obvious examples of __________________.
a. social responsibility ethics that managers must decide on a daily basis
b. social responsibility issues that employees must confront while at work
c. areas of social responsibility that influence managers, not employees
d. decisions that managers face that have a social responsibility dimension
(d: hard; p. 103)
27. The classical view of social responsibility holds that management’s only social
responsibility is to ___________________.
a. maximize organizational profits for stockholders
b. maximize adherence to the laws for stockholders
c. maximize organizational profits for stakeholders
d. minimize adherence to the laws for stockholders
(a; easy; p. 100)
28. Which of the following is associated with the classical view of social responsibility?
a. economist Robert Reich
b. concern for social welfare
c. stockholder financial return
d. voluntary activities
29. Proponents of the socioeconomic view of social responsibility believe that

business organizations are _______________.
a. not just merely economic institutions
b. just merely economic institutions
c. to be leaders in social responsibility
d. not to be involved in social responsibility, but to maximize profits for
stakeholders
30. Applying social criteria to investment decision refers to ________________.

a. socioeconomic view
b. social responsiveness
c. social responsibility
d. social screening
31. ______________ is defined as a business firm’s obligation, beyond that required by law
and economics, to pursue long-term goals that are good for society.
a. Social obligation
b. Social responsibility
c. Social screening
d. Values-based management
32. The most outspoken advocate of the classical view of social responsibility is
economist and Nobel laureate, __________________.
a. Carnegie Milton
b. Charles Darwin
c. Milton Freeman
d. Milton Friedman
(d; hard; p. 100)
33. The belief that businesses should be responsible because such actions are right for their
own sake is known as which argument for social responsibility?
a. public expectation
b. ethical obligation
c. public image
d. discouragement of further government regulation
34. The belief that businesses that help solve difficult social problems create a
desirable community and attract and keep skilled employees is known as which
argument for social responsibility?
a. ethical obligation
b. public image
c. better environment
d. possession of resources
35. A leading proponent of the classical view argues that anytime managers decide
on their own to spend their organization’s resources for the “social good,” are
_________________.
a. contributing social benefits in the name of goodwill
b. just doing what the government says they have to do
c. helping make society a better place for everyone to live
d. adding to the costs of doing business
(d; hard; p. 102)
36. The socioeconomic view is that management’s social responsibility goes
beyond making profits to include __________________.
a. placing members of society on welfare
b. protecting and improving society’s welfare
c. minimizing the welfare of society in exchange for profits
d. protecting and improving the organization’s profits
(b; moderate; p. 101
37. Which argument for social responsibility puts forth the belief that by becoming socially
responsible, businesses can expect to have less government regulation?
a. discouragement of further government regulation
b. stockholder interests
c. public expectations
d. public image
38. Which argument for social responsibility puts forth the belief that an imbalance
between the large amount of power held by firms and their responsibility is harmful to
the public good?
a. public expectation
b. ethical obligation
c. public image
d. balance of responsibility and power
(d; easy; p. 102)
39. The belief that businesses have the financial, technical, and managerial resources to
support needed public and charitable projects is known as which argument?
a. public expectations
b. ethical obligations
c. public image
d. possession of resources
40. Social obligation is the obligation of a business to meet its _______________.

a. social and technological responsibilities
b. economic and social responsibilities
c. technological and economic responsibilities
d. economic and legal responsibilities
(d; hard; p. 102)
41. Social responsiveness refers to the capacity of a firm to adapt to changing

_________________.
a. societal conditions
b. organizational conditions
c. societal leaders
d. organizational managers
(a; easy; p. 102)
42. The belief that businesses are being socially responsible when they attend only to
economic interests is known as which argument against a firm being socially
responsible?
a. dilution of purpose
b. violation of profit maximization
c. costs
d. too much power
(b; easy; p. 102)
43. In the United States, a company that meets federal pollution control standards
and does not discriminate in hiring, promotion, and pay _______________.
a. is meeting its social obligation and more because they are trying to be a good
citizen
b. is not even meeting its social obligation, though there are laws in some of these
areas of social responsibility
c. is meeting its social obligation and nothing more because laws mandate these
actions
d. is meeting its social responsiveness and nothing more because society demands
these actions
(c; hard; p. 102)
44. The belief that the costs of social activity are passed on as higher prices to consumers is
known as which argument against a firm being socially responsible?
a. violation of profit maximization
b. dilution of purpose
c. costs
d. lack of skills
45. The belief that firms’ pursuit of social goals would give them too much power is known
as what argument in opposition to a firm being socially responsible?
a. costs
b. lack of skills
c. lack of broad public support
d. too much power
46. The belief that business leaders should not direct social policy because there is no direct
line of social accountability to the public is known as what argument against a firm
being socially responsible?
a. dilution of purpose
b. costs
c. too much power
d. lack of accountability
47. The aspect that differentiates social responsibility from other similar concepts is that it
________________.
a. adds an ethical imperative.
b. adds a legal imperative
c. adds a moral imperative
d. considers social norms
(a; easy; p. 103)
48. When a firm advertises that it only uses recycled paper products, it is
________________.
a. meeting its social obligation
b. meeting social responsibilities
c. being socially responsive
d. paying attention to the bottom line
SOCIAL RESPONSIBILITY AND ECONOMIC PERFORMANCE
49. One should be cautious in the interpretation, but a summary of more than a dozen
studies analyzing the relationship between organizational social responsibility and
economic performance provides what conclusion?
a. Being socially responsible causes good economic performance.
b. Good economic performance allows firms to be socially responsible.
c. There is a positive relationship between corporate social involvement and economic
performance.
d. Corporate social involvement tends to devalue stock prices in the long run.
50. Overall, does the evidence suggest that socially responsible behaviors by organizations
lower a firm’s economic performance?
a. yes
b. no
c. There is not enough evidence at this time to know for sure.
d. It depends on the activity with which the organization is involved.
(b; easy; p. 104)
51. Applying social criteria to investment decisions is a term used to describe
______________.
a. social obligation
b. social responsibility
c. social screening
d. social autonomy
52. Under the concept of social obligation, the organization ________________.

a. does what it can to meet the law, and a little bit more for stakeholders
b. fulfills its obligation to the law and its stakeholders
c. fulfills its obligation to the stakeholders, which makes it fulfill the law, too
d. does the minimum required by law
53. There is __________ to say that a company’s socially responsible actions

significantly hurt its long-term economic performance.
a. not any evidence
b. little evidence
c. a lot of evidence
d. mounting evidence
(b; hard; p. 104)
VALUES-BASED MANAGEMENT
54. ______________ is an approach to managing in which managers establish, promote,

and practice what an organization stands for and believes in.
a. Cause-related marketing
b. Values-based management
c. Ethical marketing
d. Belief management
55. Values shared among the organizational members can serve as

_________________.
a. a reason to follow federal and state environmental laws
b. guidepost for managerial decisions to invest in new technology
c. shaping managerial decisions to invest in economic conditions
d. a guidepost for managerial decisions and actions
(d; hard; p. 107)
56. A corporation’s ____________ act(s) as guidepost(s) for managerial decisions and

actions.
a. shared values
b. team spirit
c. marketing efforts
d. industry standards
57. Which of the following is true regarding shared corporate values?

a. Individuals adapt easily to shared corporate values.
b. Top management dictates shared corporate values.
c. It is not easy to establish shared corporate values.
d. Most corporations will be unable to successfully establish shared corporate
values.
THE “GREENING” OF MANAGEMENT
58. The recognition of the close link between an organization’s decisions and activities and
its impact on the natural environment is referred to as _________________.
a. corporate social responsibility
b. social responsiveness
c. shared corporate values
d. greening of management
59. Natural resource depletion, global warming, pollution, and toxic wastes are examples of
_______________,
a. social problems
b. global environmental problems
c. social responsiveness
d. competitive strategies
(b; easy; p. 105)
60. Which of the following is not an approach organizations can take with respect to
environmental issues?
a. legal
b. market
c. stakeholder
d. responsibility
61. With the stakeholder approach of dealing with environmental issues, the
organization chooses to respond to ______________.
a. the demands made by the strongest stakeholders
b. multiple demands made by social stakeholders
c. the demands made by governmental stakeholders
d. multiple demands made by stakeholders
(d; hard; p. 106)
62. The ______________ approach to environmental issues is when organizations respond

to environmental preferences of their customers.
a. legal
b. market
c. stakeholder
d. responsibility
63. Which of the following approaches toward environmental issues exhibits the highest
degree of environmental sensitivity and is a good illustration of social responsibility?
a. legal approach
b. market approach
c. stakeholder approach
d. activist approach
64. According to the model of the expansion of an organization’s social responsibility,

Stage 2 adds an interest in ________________.
a. stockholders
b. human resource concerns
c. safe products
d. fair prices
65. According to the model of the expansion of an organization’s social responsibility,

Stage 3 is noted by an added interest in ________________.
a. stockholders
b. human resource concerns
c. owners
d. customers/suppliers
MANAGERIAL ETHICS
66. Which of the following is a basic definition of ethics?

a. moral guidelines for behavior
b. rules for acknowledging the spirit of the law
c. rules or principles that define right and wrong conduct
d. principles for legal and moral development
67. The __________ is concerned with respecting and protecting individual

liberties and privileges such as the rights to privacy, freedom of conscience,
free speech, life and safety, and due process.
a. utilitarian view
b. rights view
c theory of justice view
d. integrative social contracts theory view
(b; easy; p. 110)
68. Which of the following is not mentioned in the textbook as one of the four perspectives
on business ethics?
a. utilitarian view
b. principled view
c. rights view
d. theory of justice view
69. How many stage are in the model of an organization’s social responsibility
progression?
a. one
b. two
c. three
d. four
(d; easy; p. 101)
70. The theory of justice view of ethics says that managers are to
___________________.
a. be fair to the stockholders by ensuring that they receive an equitable return on
their investment
b. impose and enforce rules fairly and impartially even though it may require that a
legal rule or regulation may be violated
c. impose and enforce rules fairly and impartially and do so by following all legal
rules and regulations
d. impose and enforce rules fairly and impartially as determined by a governmental
official
71. Which of the following encourages efficiency and productivity and is consistent with
the goal of profit maximization?
a. utilitarian view
b. principled view
c. rights view
d. theory of justice view
72. The rights view of ethics is based on which of the following?

a. decisions based on their outcomes or consequences
b. the imposition and enforcement of fair and impartial rules
c. respect and protection of individual liberties and freedoms
d. the process used to determine the distribution of resources
73. The integrative social contracts theory of ethics is based on which of the following?
a. the process used to determine the distribution of resources
b. decisions based on their outcomes or consequences
c. the imposition and enforcement of fair and impartial rules
d. the existing ethical norms in industries and corporations
74. Studies have shown that most businesspeople tend to hold which attitude toward ethical
behavior?
a. the utilitarian view
b. the rights view
c. the theory of justice view
d. the integrative social contract theory view
75. Reasoning at the ______________ level of moral development indicates that moral
values reside in maintaining the conventional order and the expectations of others.
a. preconventional
b. conventional
c. principled
d. arrival
(b; easy; p. 111)
76. A personality measure of a person’s convictions is _______________.

a. moral development
b. ego strength
c. locus of control
d. social desirability
77. ______________ is a personality attribute that measures the degree to which people
believe they control their own fate.
a. Ego strength
b. Locus of control
c. Social responsibility
d. Social obligation
(b; easy; p. 112)
78. A manager who believes that “she worked hard and met the productivity goals despite
bad weather” is displaying what individual characteristic?
a. strong self-image
b. high moral development
c. low impression management
d. internal locus of control
79. Which of the following organizational structural characteristics would most
likely result in managerial ethical behavior?
a. few job descriptions

b. formal rules
c. mixed messages from authority figures
d. performance appraisal systems focused on outcomes
80. Which of the following is true concerning the impact of organizational culture on
ethical behavior?
a. Low conflict tolerance leads to ethical behavior.
b. A strong culture will support high ethical standards.
c. Conflict tolerance is related to unethical behavior.
d. A culture that is high in control tends to encourage unethical behavior.
81. Issue intensity, as an issue that affects ethical behavior, is described as which of the
following?
a. the characteristics of the ethical issue itself
b. the level of control and influence one has over the event
c. the cultural strength of the organization
d. the organizational structure
82. Which of the following is not one of the six determinants that are relevant in deciding
issue intensity?
a. How great a harm (or benefit) is done to victims (or beneficiaries) of the ethical
act in question?
b. What is the probability that your act will be discovered?
c. How much consensus is there that the act is evil (or good)?
d. What is the length of time between the act in question and its expected
consequences?
83. The Foreign Corrupt Practices Act __________ small payoffs to foreign
government employees whose duties are primarily administrative or clerical
when such payoffs are an accepted part of doing business in that country.
a. encourages
b. expressly prohibits
c. does not expressly prohibit
d. recommends
(c; hard; p. 115)
84. Global organizations must __________ their ethical guidelines so that employees know what is
expected of them while working in a foreign location.
a. clarify
b. provide
c. establish
d. reward
(a; hard; p. 115)
85. The 1977 Foreign Corrupt Practices Act makes it illegal for U.S. firms to
_________________.
a. make any cash payment for deferential treatment in a foreign transaction
b. make any payment over 5 percent of total cost toward administrative overhead in
foreign transactions
c. knowingly corrupt a foreign official
d. make any payment to foreign clerical or ministerial employees in exchange for
service
86. Which of the following is not a way for management to reduce unethical behavior?
a. select individuals with high ethical standards
b. establish codes of conduct
c. provide ethics training
d. monitor employee telephone calls
87. A _____________ is a formal statement of an organization’s primary values and the

ethical rules it expects its employees to follow.
a. mission statement
b. statement of purpose
c. code of ethics
d. vision statement
88. Nearly ______________ percent of Fortune 500 companies have a code of ethics.
a. 65
b. 75
c. 85
d. 95
(d; easy; p. 116)

WHAT IS SOCIAL RESPONSIBILITY?
Two Opposing Views of Social Responsibility (Scenario)
The Board of Directors of Acme Generating Corporation is meeting to consider the

construction of a new electrical generation facility somewhere along the Muspetan River
basin. Director Appleton would like to have it be a coal-burning plant located in a remote area
because of the moderate costs of generating and any ash from the smokestacks would not
affect the city. Director Witworth wants a nuclear plant located near the city of Muspetan
because the city needs the electricity the most and not only does nuclear production the least-
expensive generating method but utilizes renewable fuels. Director Jossleman wants a
generating plant that uses combustible fuels collected from the city’s garbage with the metals
and glass sent to recycling and the food materials buried in the city landfill. By locating near
the downtown government area, steam could be used for heating the government buildings
after it has passed through the generating turbines, and the exhaust would be “scrubbed” to
make it clean. He believes that this approach would provide the electricity needed for the
growing city, the heat for government buildings, recycling of resources, and minimize the
impact on the city’s landfill. The other directors have not offered any input to the discussion.
89. Director Witworth is following which of the social responsibility views?
a. social responsiveness
b. social obligation
c. classical view of social responsibility
d. socioeconomic view of social responsibility
90. Director Appleton is following which of the social responsibility views?

a. social responsiveness
b. social obligation
c. classical view of social responsibility
d. socioeconomic view of social responsibility
91. Director Jossleman being mostly which of the following?
a. classically social responsible
b. classically social responsive
c. socially obligated
d. socially responsive
(d; hard; p. 102)
92. To be at Stage 4 in the progression of an organization’s social responsibility,

Acme Generating Corporation would choose ________________.
a. Director Witworth’s proposal
b. Director Josselman’s proposal
c. Director Appleton’s proposal
d. a proposal that has not yet been submitted to the Board
(b; hard; p. 101)
An Academic Question (Scenario)
As a university student, you wonder about some of the practices in the university and just how
some of these practices should be evaluated in reference to social issues.
93. If your university were paying minimum wage, when necessary, and applying the
minimum standard to laws, such as affirmative action, it would be said to have fulfilled
its _______________.
a. social obligation
b. social responsibility
c. social responsiveness
d. social expectation
94. If your university provides job-share programs, builds a day-care facility, and only uses
recycled paper, it could be said to be _____________.
a. fulfilling its social obligation
b. socially aware
c. socially responsive
d. socially image conscious
95. Which of the following is not a reason why it makes sense for your university to
continue to be socially responsive?
a. positive consumer image
b. lower cost
c. more dedicated workforce
d. more motivated workforce
(b; easy; p. 102)
96. If your state legislature criticized your university for incurring the cost of
being socially responsive, the university might point to a series of studies that
indicates that the relationship between corporate social involvement and economic
performance is _______________.
a. very negative
b. negative
c. neutral
d. positive
97. Your university has tried to promote the establishment of shared values so that all
members will understand its beliefs. The university has established ______________
management.
a. values-based
b. image
c. socially respectable
d. MBO
(a; easy; p. 112)
Summing Up Social Responsibility (Scenario)
Max Proffit, Director of Research and Development for National Products Company, has
learned that a new material has been developed in his department that appears as though it
will work in several products already being manufactured by National Products Company. He
has discussed the potential savings with his two assistants, Susie Merriweather, and Moe
Gaines, and Rush Onward, vice president of Product Development. Susie has stated her
opposition to the use of the new product because its durability and flame retardance have not
completed testing and have not been certified by the company’s third-party testing laboratory.
Moe argues that the initial tests that their R&D department have run indicated minimal
problems with both durability and flame retardance. Rush stated that he has been in several
meetings lately where the need to increase earnings-per-share have been repeatedly
emphasized by the company president. Rush has told Max that a decision has to be made
within the week about the new product’s use by National Products Company.
FACTORS THAT AFFECT MANAGERIAL ETHICS
98. If Max resists his impulse to okay use of the product because of the need for
increased earnings-per-share, though it has not been certified, he probably
_________________.
a. will be demoted to a lower-paying job
b. has a strong ego strength
c. will lose Susie as an employee because she will quit
d. has an external locus of control
(b; hard; p. 112)
99. If Max approves use of the product because of perceived pressure for the need
of increased earnings-per-share, though it has not been certified, he probably
________________.
a. has a strong ego strength
b. is using the socioeconomic view of social responsibility
c. has an internal locus of control
d. has an external locus of control
(d; hard; p. 112)
100. Susie’s opposition to the use of the new product is an indication that she
probably ______________.
a. has an internal locus of control
b. has an external locus of control
c. has a weak ego strength
d. is using the classical view of social responsibility
101. Moe Gaines’ support in favor of using the new product is an indication that he
probably _______________.
a. supports “greening” of the organization’s profits
b. has a strong ego strength
c. has a weak ego strength
d. is using the socioeconomic view of social responsibility
(c; hard; p. 112)
ETHICS IN AN INTERNATIONAL CONTEXT
The Fee (Scenario)
Isaac Razzlefrat has been the Import and Export Manager for Overseas Exports Company of
New Orleans, Louisiana, in a foreign country during the last 5 years. During this time, he has
become quite familiar with the national laws and with the local culture when sending goods
through the Customs Inspectors step of the import/export process. Isaac has learned that the
Customs Inspectors are paid low wages. He has also become well acquainted with the
Administrator of Customs for Imports and Exports in this country. Because of these
familiarities, he has learned that it is a normal practice to pay the Customs Inspectors a
payment prior to their accepting the goods for inspection. Isaac has decided to pay an
additional small “fee” to the Customs Inspectors when he has a rush order that needs to pass
through customs quickly. Isaac recently learned that his competitor from Utibana is also
making monthly payments to the Administrator of Customs, though other companies are not.
102. Under the Foreign Corrupt Practices Act, the normal practice of payments to
the Customs Inspectors is _________________.
a. against the law regardless of it being a normal practice
b. okay because they receive low wages and it is an accepted part of doing business
in that country
c. okay because their duties are primarily clerical in nature
d. against the law because it could lead to smuggling of contraband out of the
country
103. If Isaac were to make a monthly payment to the Administrator of Customs as
his competitor from Utibana is doing, under the Foreign Corrupt Practices Act
he would be __________________.
a. okay within the law, because his competitor has made it a common practice
b. in violation of the law because it could lead to smuggling of contraband out of the
country
c. in violation of the law because the Administrator in not in an administrative or
clerical duty position that normally receives payments
d. okay within the law if the payment unless the payment is in excess of $1,000
(c; hard; p. 115)
104. When Isaac makes the small “fee” payments to get a rush order through the
customs, under the Foreign Corrupt Practices Act he could be
______________.
a. in violation of the law because of it not being a normal practice
b. okay because they receive low wages
c. okay because their duties are primarily clerical in nature
d. in violation of the law because it could lead to smuggling of contraband out of the
country
(a; hard; p. 115)
105. When Isaac follows the normal practice of payments to the Customs Inspectors,
he probably feels as though _________________.
a. his ego strength is weak
b. his ego strength is strong
c. his locus of control is internal
d. his locus of control is external
(d; hard; p. 112)
An Academic Question (Scenario)
You have just witnessed accounting errors at your company that are significant in nature. In
making your decision on whether or not to come forward, there are four major theories that
you can use in going about making your decision. The following four questions present
different ways in which you will make your ethical decision.
106. This theory uses a quantitative method for making ethical decisions by looking
at how to provide the greatest good for the greatest number of people.
a. Theory of justice of ethics

b. Integrative social contracts
c. Right view of ethics
d. Utilitarian view of ethics
(d; easy; p. 110)
107. Under this approach, managers impose and enforce rules fairly and impartially and do so
by following all legal rules and regulations. A manager using this theory would decide
to provide the same rate of pay to individuals who are similar in their level of skills,
performance, gender, and so on.
108. This theory of ethics is concerned with respecting and protecting individual liberties
and privileges such as the right to privacy.
109. This theory proposes that ethical decisions be based on existing ethical norms in
industries and communities in order to determine what constitutes right and wrong.
Ethics Training (Scenario)
You are an employee of a very large company and when walking through the halls you
constantly hear one of your male coworkers call any female employee, “babe.” There have
been many complaints and the company has decided to use this as an ethical training
example.
110. The company brings in help from outside to evaluate the situation. There are
routine evaluations that are performed regularly, called _____________.
a. ethical training sessions
b. formal protective mechanisms
c. independent social audits
d. informal behavior modification
(c; easy; p. 119)
111. An alternative for the organization to provide formal means that protect employees
who face ethical dilemmas so that they can do what’s right without fear of reprimand
would be __________________.
a. ethical training sessions
b. formal protective mechanisms
c. independent social audits
d. informal behavior modification
The Environmental Study (Scenario)
You have just been challenged by your supervisor to study and report your finding on
approaches that organizations use when dealing with the environment. Your boss tells you to
study the four major approaches, differentiate between them, and report to him in a week.
112. This approach deals with organization responding to the environment because of the
preferences of their customers.
a. stakeholder approach
b. market approach
c. legal approach
(b; easy; p. 106)
113. Under this approach, the organization works to meet the environmental demands of
multiple groups of people including employees, suppliers, or the community.
b. market approach
c. legal approach
(a; easy; p. 106)
114. Under this approach, organizations exhibit little environmental sensitivity.

They obey rules and regulations willingly without legal challenge and may even try to
use these rules to their own advantage.
b. market approach
c. legal approach
(c; easy; p. 106)
115. Under this approach, the organization looks for ways to respect and preserve the earth
and its natural resources.
b. market approach
c. legal approach
(d; easy; p. 106)
Moral Development (Scenario)
You have had serious ideas of late about stealing money from petty cash in order to get back
on top of your back rent. Upon reading Chapter 5 of the textbook, you learn there are levels of
moral development each composed of two stages. You are ashamed of your thoughts and read
more to see where you are in terms of your own moral development.
116. At this level, a person’s choice between right or wrong is based on personal
characteristics involved, such as physical punishment, reward, or exchange of favors.
What level are you in with these characteristics?
a. principled level
b. preconventional level
c. conventional level
d. value level
117. Ethical reasoning at this level indicates that moral values reside in maintaining
expected standards and living up to the expectations of others. This level is referred to
as ______________.
a. principled level
d. value level
118. At this level, individuals make a clear effort to define moral principles apart from
authority of the groups to which they belong or society in general. This level is
referred to as _________________.
a. principled level
d. value level
THE DECISION-MAKING PROCESS
30. Decision making is (simplistically) typically described as which of the following?

a. deciding what is correct
b. putting preferences on paper
c. choosing among alternatives
d. processing information to completion
31. A series of eight steps that begins with identifying a problem and decision criteria and
allocating weights to those criteria; moves to developing, analyzing, and selecting an
alternative that can resolve the problem; implements the alternative; and concludes with
evaluating the decision’s effectiveness is the ___________.
a. decision-making process
b. managerial process
c. maximin style
d. bounded rationality approach
(a; easy; p. 134)
32. A(n) ____________ is the existence of a discrepancy between existing and a desired
state of affairs.
a. opportunity
b. solution
c. weakness
d. problem
(d; easy; p. 134)
33. The first step in the decision-making process is which of the following?
a. developing decision criteria
b. allocating weights to the criteria
c. analyzing alternatives
d. identifying a problem
34. In identifying the problem, a manager _________________.
a. compares the current state of affairs with where they want to be
b. expects problems to be defined by neon lights
c. looks for discrepancies that can be postponed
d. will not act when there is pressure to make a decision
(a; easy; p. 135)
35. The process of selecting decision criteria is accomplished by ________________.

a. massaging the data that will support a given decision
b. flipping a coin to produce a 50-50 chance of being right
c. determining what is relevant in making the decision
d. examining the difference in the opportunities available
36. Which of the following statements is true concerning problem identification?

a. Problems are generally obvious.
b. A symptom and a problem are basically the same.
c. Well-trained managers generally agree on what is considered a problem.
d. The problem must be such that it exerts some type of pressure on the manager to
act.
e. To be considered a problem, managers must be aware of the discrepancy but not
have the resources necessary to take action.
37. If all criteria in the decision making are equal, weighting the criteria ______________.
a. improves decision making when large numbers of criteria are involved
b. is not needed
c. produces excellent decisions
d. improves the criteria
(b; easy; p. 136)
38. The final step in the decision-making process is to _______________.

a. pick the criteria for the next decision
b. reevaluate the weightings of the criteria until they indicate the correct outcome
c. evaluate the outcome of the decision
d. reassign the ratings on the criteria to find different outcomes
39. Which of the following must be present in order to initiate the decision-making
process?
a. plenty of time
b. pressure to act
c. a lack of authority
d. a lack of resources
40. To determine the _____________, a manager must determine what is relevant or
important to resolving the problem.
a. geocentric behavior needed
b. number of allowable alternatives
c. weighting of decision criteria
d. decision criteria
41. Which of the following is the step in the decision-making process that follows
identifying a problem and decision criteria?
a. allocating weights to the criteria
b. analyzing the alternatives
c. selecting the best alternative
d. implementing the alternative
42. In allocating weights to the decision criteria, which of the following is helpful to
remember?
a. All weights must be the same.
b. The total of the weights should sum to 1.0.
c. Every factor criterion considered, regardless of its importance, must receive some
weighting.
d. Assign the most important criterion a score, and then assign weights against that
standard.
43. In Step 6 of the decision-making process, each alternative is evaluated by appraising it

against the _____________.
a. subjective goals of the decision maker
b. criteria
c. assessed values
d. implementation strategy
44. Selecting an alternative in the decision-making process is accomplished by

__________________.
a. choosing the alternative with the highest score
b choosing the one you like best
c. selecting the alternative that has the lowest price
d. selecting the alternative that is the most reliable
(a; easy; p. 138)
45. ______________ includes conveying a decision to those affected and getting their
commitment to it.
a. selecting an alternative
b. evaluation of decision effectiveness
c. implementation of the alternatives
d. analyzing alternatives
46. Which of the following is important in effectively implementing the chosen alternative
in the decision-making process?
a. getting upper-management support
b. double-checking your analysis for potential errors
b. allowing those impacted by the outcome to participate in the process
d. ignoring criticism concerning your chosen alternative
47. Which of the following is the final step in the decision-making process?
a. identifying the problem
b. evaluating the decision’s effectiveness
c. identifying decision criteria
d. selecting an alternative that can resolve the problem
(b; easy; p. 138)
48. Which of the following is important to remember in evaluating the effectiveness of the
decision-making process?
a. ignore criticism concerning the decision-making process
b. you may have to start the whole decision process over
c. Restart the decision-making process if the decision is less than 50 percent
effective.
d. Ninety percent of problems with decision making occur in the implementation
step.
THE MANAGER AS DECISION MAKER
49. Managers are assumed to be ______________; they make consistent, value-maximizing

choices within specified constraints.
a. rational
b. leaders
c. organized
d. satisficers
(a; easy; p. 139)
50. It is assumed that a perfectly rational decision maker ______________.

a. does not follow rational assumptions
b. does not consider value maximizing as an objective
c. offers inconsistent decisions
d. would be objective and logical
51. Rational managerial decision making assumes that decisions are made in the best
______________ interests of the organization.
a. economic
b. pay-off
c. statistical
d. budgetary
52. Managers can make rational decisions if _________________.

a. the problem is simple
b. the goals are clear
c. the alternatives are limited
d. all of the above
(d; challenging; p. 140)
53. Managers can make rational decisions if ______________.

a. the costs of finding and evaluating alternatives is low
b. the organizational culture does not encourage risk taking
c. outcomes are concrete and measurable
d. a and c
54. Which of the following is not a valid assumption about rationality?

a. the problem is clear and unambiguous.
b. a single well-defined goal is to be achieved.
c. preferences are clear.
d. preferences are constantly changing.
55. In “bounded rationality,” managers construct ______________ models that extract the
essential features from problems.
a. multiple
b. binding
c. interactive
d. simplified
56. According to the textbook, because managers can’t possibly analyze all information on
all alternatives, managers ______________, rather than ______________.
a. maximize; satisfice
b. maximize; minimize
c. satisfice; minimize
d. satisfice; maximize
57. When managers circumvent the rational decision-making model and find ways to
satisfice, they are following the concept of _________________.
a. jurisprudence
b. bounded rationality
c. least-squared exemptions
d. self-motivated decisions
58. The type of decision making in which the solution is considered “good enough” is
known as which of the following?
a. intuition
b. rationalization
c. maximizing
d. satisficing
59. When a decision maker chooses an alternative under perfect rationality, she chooses a
______________ decision, whereas under bounded rationality she chooses a
______________ decision.
a. minimizing; satisficing
b. satisficing; maximizing
c. maximizing; satisficing
d. maximizing; minimizing
60. An increased commitment to a previous decision despite evidence that it may have been
wrong, is referred to as _______________.
a. economies of commitment
b. escalation of commitment
c. dimensional commitment
d. expansion of commitment
61. Managerial decisions are strongly influenced by ________________.

a. the organization’s culture
b. internal politics
c. power considerations
d. all of the above
(d; easy; p. 141)
62. Intuitive decision making is _______________.

a. not utilized in organizations
b. a conscious process based on accumulated judgment
c. making decisions based on experience, feelings, and accumulated judgment
d. important in supporting escalation of commitment
63. In studying intuitive decision making, researcher have found that

__________________.
a. managers do not make decisions based on feelings or emotions
b. managers use data from their subconscious mind to help make their decisions
c. rational thinking always works better than intuitive
d. accumulated experience does not support intuitive decisions
64. According to the textbook, all of the following are aspects of intuition except
__________________.
a. experienced-based decisions
b. affect-initiated decisions
c. cognitive-based decisions
d. programmed decisions
(d; easy; p. 141)
65. According to the textbook, _____________ are straightforward, familiar, and easily
defined problems.
a. poorly structured problems
structured problems
c. unique problems
d. nonprogrammed problems
66. Structured problems align well with which type of decision making?
a. programmed
b. satisficing
c. intuition
d. gut feeling
67. The most efficient way to handle structured problems is through ______________
decision making.
a. linear
b. unique
c. focused
d. programmed
68. ______________ decision making is relatively simple and tends to rely heavily on
previous solutions.
a. Nonprogrammed
b. Linear
c. Satisficing
d. Programmed
69. Programmed decision making tends to rely on which of the following?

a. the problem solver’s ability to think on his or her feet
b. the development of a clear set of alternative solutions
c. previous solutions
d. identification of the actual problem
(c; easy; p. 142)
70. A procedure _______________.

a. is an explicit statement detailing exactly how to deal with a decision
b. is a series of interrelated sequential steps to respond to a structured problem
c. is a set of guidelines that channel a manager’s thinking in dealing with a problem
d. allows a manager to use broad decision-making authority
71. A ______________ is an explicit statement that tells a manager what he or she can or
cannot do.
a. procedure
b. policy
c. rule
d. solution
72. A policy ____________.

a. typically contains an ambiguous term
b. is used frequently when a manager faces a well-structured problem
c. allows little discretion on the part of the manager
d. offers strict rules as to how a problem should be solved
73. Which of the following factors contrasts the difference between a policy and a rule?
a. a policy establishes parameters
b. a rule establishes parameters
c. a policy is more explicit
d. a rule is more ambiguous
74. According to the textbook, a ______________ typically contains an ambiguous term

that leaves interpretation up to the decision maker.
a. system
b. rule
c. solution
d. policy
75. A business school’s statement that it “strives for productive relationships with local
organizations” is an example of a ________________.
a. rule
b. policy
c procedure
d. commitment
76. Poorly structured problems _____________.

a. are easily solved
b. present new or unusual circumstances
c. force managers to deal with incomplete or ambiguous information
d. b and c
77. Nonprogrammed decisions are best described as ________________.

a. recurring, but difficult to make
b. very similar to problems in other areas of the organization
c. requiring more aggressive action on the decision maker’s thought processes
d. unique and nonrecurring
78. When problems are ______________, managers must rely on ______________ in order
to develop unique solutions.
a. well structured; nonprogrammed decision making
b. well structured; pure intuition
c. poorly structured; nonprogrammed decision making
d. poorly structured; programmed decision making
79. Which of the following terms is associated with nonprogrammed decisions?

a. unique
b recurring
c. routine
d. repetitive
80. Lower-level managers typically confront what type of decision making?
a. unique
b. nonroutine
c. programmed
d. nonprogrammed
81. When lower-level managers deal with well-structured problems and they rely on
procedures and rules to solve the problems, this refers to a relationship between types of
problems and types of decisions known as ________________.
a. preprogramming
b. focused decision making
c. integration
d. separation
82. Which of the following is likely to make the most programmed decisions?
a. the CEO of PepsiCo.
b. the vice president of General Motors Cadillac Division.
c. the head of the Minute Maid Division at Coca-Cola.
d. the manager of the local McDonald’s.
(d; easy; p. 142)
83. Which of the following is an accurate statement concerning the impact of programmed
decisions on organizations?
a. They maximize the need for managers to exercise discretion.
b. They decrease the need for high-cost managerial talent.
c. They increase the amount of judgment needed by managers.
d. They decrease organizational efficiency.
84. ______________ is a situation in which a manager can make accurate decisions

because the outcome of every alternative is known.
a. Certainty
b. Risk
c. Uncertainty
d. Maximax
e. Maximin
(a; easy; p. 144)
85. If an individual knows the price of three similar cars at different dealerships, he or she
is operating under what type of decision-making condition?
a. risk
b. uncertainty
c. certainty
d. factual
(c; easy; p. 144)
86. Nonprogrammed decisions are typically made under a condition of

________________.
a. certainty
b. low levels of risk
c. uncertainty
d. reliability
87. Organizational efficiency is improved by the use of _________________.

a. programmed decisions
b. nonprogrammed decisions
c. less planning
d. lower expectations and lower demands by top manager
88. A retail clothing store manager who estimates how much to order for the current spring
season based on last spring’s outcomes is operating under what kind of decision-
making condition?
a. seasonal
b. risk
c. uncertainty
d. certainty
89. ______________ is a situation in which a decision maker has neither certainty nor
reasonable probability estimates available.
a. Certainty
b. Risk
c. Uncertainty
d. Maximax
(c; easy; p. 145)
90. A person at a horse racetrack who bets all of his/her money on the odds-based long shot
to “win” (rather than “place” or “show”) is making what kind of choice?
a. maximax
b. maximin
c. minimax
d. minimin
91. Which of the following best describes “maximizing the minimum possible payoff”?
a. maximax
b. maximin
c. minimax
d. minimin
92. An individual making a “maximin” type of choice has what type of psychological
orientation concerning uncertain decision making?
a. optimist
b. realist
c. pessimist
d. satisficer
93. Which of the following would best describe the psychological orientation of an
individual making a “maximax” type of choice?
a. optimist
b. realist
c. pessimist
d. satisficer
94. Optimistic managers could be expected to utilize their maximax orientation when they
_______________.
a. maximize the maximum payoff
b. maximize the minimum payoff
c. minimize the maximum regret
d. minimize the minimum regret
(a; easy; p. 146)
95. According to the textbook, a manager who desires to minimize his or her maximim
“regret” will opt for a ______________ choice.
a. maximax
b. maximin
c. minimax
d. minimin
96. All of the following are mentioned in the textbook as decision-making styles except
_________________>
a. directive
b. egotistical
c. analytic
d. conceptual

THE DECISION-MAKING PROCESS
Decisions, Decisions (Scenario)
Sondra needed help. Her insurance company’s rapid growth was necessitating making some
changes, but what changes? Should they add to the existing information system? Buy a new
system? She was given the responsibility of analyzing the company’s present information
system and decide what the company should do that would give them plenty of room. She
was confused and needed help in making the correct decision.
97. According to the decision-making process, the first step Sondra should take would be to
_____________.
a. analyze alternative solutions
b. identify decision criteria
c. evaluate her decision’s effectiveness
d. identify the problem
98. According to the decision-making process, the second step Sondra should take would
be to ____________.
b. identify decision criteria
c. evaluate her decision’s effectiveness
d. allocate weights to the criteria
99. The very last step Sondra should take, according to the decision-making process, would
be to __________.
b. select alternatives
c. implement the alternative
d. evaluate the decision’s effectiveness
(d; easy; p. 138)
100. When Sondra is conveying her decision to those affected and getting their commitment
to it, she is performing which step in the decision-making process?
a. analyzing alternative solutions
b. selecting alternatives
c. implementing the alternative
d. identifying the problem
101. Allocating weights to the criteria is the step in the decision-making process that occurs
between identifying the decision criteria and ______________.
a. developing the alternatives
b. selecting alternatives
c. implementing the alternative
d. identifying the problem
Colleen is a student, and her older brother has loaned her an old car. The car is in need of
several repairs before she will feel comfortable driving it.
102. Colleen needs a vehicle, but she has to decide if the vehicle is worth repairing. She is
facing a(n) _____________, a discrepancy between an existing and a desired state of
affairs.
a. alternative
b. weighted problem set
c. problem
d. certainty avoidance situation
103. In talking with an automotive repair person, Colleen needs to prioritize the repairs. Her
first concern is safety of the vehicle. This step in the decision-making process is called
__________________.
a. weighting the decision criteria
b. analysis of alternatives
c. identification of decision criteria
d. selection of an alternative
104. Colleen decides to have all of the problems fixed on the car. She assumes that the
repair person has found all the problems and that there will be no problem correcting
the imperfections within a specified budget. This is an example of a __________
decision.
a. parochial
b. irrational
c. ethical
d. rational
105. Colleen’s brother has a different view of the repairs. He assumes that the repair person
is using the best information available, but there may be other unexpected repairs that
might surface and that a higher budget might be more reasonable. He is using
______________.
a. rational decision making
b. risk avoidance
c. bounded rationality
d. Stage 4 decision making
106. Colleen’s brother feels the car is worth repairing because he has owned several cars
made by the same manufacturer as this car, and he has driven this car for several years.
He is using _________ to decide the car has value despite of its need of repair.
a. intuitive decision making
b. selective coordination of thought processes
c. sunk costs
d. return on investment
THE MANAGER AS A DECISION MAKER
The First Job (Scenario)
Upon graduation, you search for a job with the university’s job placement center. Although
you have studied and prepared to work in an advertising agency, the first job that you are
offered is a supervisor in a manufacturing company working the afternoon shift from 3:00
P.M. until 11:00 P.M.
107. Although the job in the manufacturing firm was good enough, you acted in a
__________ manner by accepting a job.
a. self-righteous
b. boundedly rational
c. satisfactory
d. liberal
108. If you had made a larger search using the Internet and other employment search
processes, you might have been able to find more employment opportunities. This
would have been a more _________ decision-making process.
a. nonprogrammable
b. uncertain
c. risky
d. perfectly rational
109. Under bounded rationality, you would be expected to search for a job by
________________.
a. looking at all the opportunities that can be analyzed in the time available
b. looking at all the opportunities available
c. looking “outside the box” in your search
d. analyzing all the opportunities until you find the perfect job
110. If you use a shortened process of searching for a job, it is likely you ___________
rather than maximized in your decision process.
a. minimized
b. rationalized
c. satisficed
d. agreed
111. During your job search, you depend on __________ decision making by making your
decision on accumulated judgment and experience.
a. experiential
b. legal
c. intuitive
d. formidable
THE MANAGER AS DECISION MAKER
Is the Picture Clear? (Scenario)
Sharon was the regional manager of a large cable television company. She faced many
problems and decisions daily, such as how to price each market, who to hire, what kind of
technology she should purchase, and how she should handle increasing customer complaints.
She needed some help sorting these issues out.
112. Unfortunately, Sharon also faces issues containing information that is ambiguous or
incomplete, such as what kind of technology to purchase. These are known as
______________ problems.
a. poorly structured
b. variable
c. random
d. hit-and-miss
113. When a customer calls and requests a refund for a partial month’s usage of cable, the
fact that such situations are routine and most likely have a standard response would
make the response a ______________ decision.
a. standard
b. routine
c. policy
d. programmed
114. Sometimes Sharon follows a ______________, a series of interrelated sequential steps
for responding to a structured problem.
a. rule
b. policy
c. procedure
d. suggestion
115. Sometimes Sharon instructs her local managers to follow ______________ when
confronted with problem situations These establish parameters for the manager
making the decision rather than specifically stating what should or should not be done.
a. rules
b. procedures
c. policies
d. orders
Decision-Making Conditions (Scenario)
Sandy Jo is the manager for TrucksRUs, a medium-sized hauling service located in the
Southeast. She is responsible for scheduling trucks, initiating new routes, and staffing both
existing and new routes. She is currently struggling with existing information about the
profitability of existing and future truck routes.
116. Joe, Sandy Jo’s best driver, tells her that he believes he can estimate that there is a 75
percent probability that they can get the business of Pork Brothers, Inc. if they initiate a
truck route through rural North Carolina. Joe is operating under a condition of
______________.
a. certainty
b. risk
c. uncertainty
d. maximax
117. Sandy Jo can make accurate decisions if she is willing to pay $5,000 for research about
the profitability of various truck routes. If she pays for the research, she believes that
she is operating under a condition of ____________.
a. certainty
b. risk
c. uncertainty
d. maximax
118. Sandy Jo knows that she is operating in an uncertain environment. She is basically an
optimist, and we would, therefore, expect her to follow a ______________ strategy.
a. certainty
b. risk
c. uncertainty
d. maximax
119. Sandy Jo knows that she is operating in an uncertain environment. She is basically a
pessimist, and we would, therefore, expect her to follow a ______________ strategy.
a. certainty
b. risk
c. minimax
d. maximin
120. Sandy Jo wishes to minimize her regret and will probably opt for a ______________
strategy.
a. certainty
b. risk
c. minimax
d. maximax
Managing Your Career (Scenario)
Michelle has a new job and is learning to perform the tasks assigned to her. Different
situations demand different decision-making processes.
121. Michelle finds a situation that instructs her in specific, interrelated, sequential steps to
respond to a problem. This is referred to as a _____________.
a. rule
b. policy
c. broad guideline
d. procedure
(d; challenging.; p. 142)
122. Michelle finds a company directive that specifically restricts her from taking certain
actions. This is a _____________.
a. rule
b. policy
c. broad guideline
d. procedure
123. As she learns the general guidelines of the job, Michelle is given more decision-making
authority. The guidelines establish parameters for decision making and are referred as a
_____________.
a. rule
b. policy
c. broad guideline
d. procedure
124. Michelle eventually finds a problem that has no cut-and-dry solution. The problem is
unique and will never occur again. This problem is referred to as _____________.
a. flexible
b. programmed
c. adaptable
d. nonprogrammed
What Is Planning?
28. Planning involves defining the organization’s goals, establishing an overall strategy
for achieving those goals, and developing a comprehensive set of plans
_____________.
a. as to which shift will perform what work functions
b. to determine which manager will be over which department
c. to integrate and coordinate organizational work
d. to establish the quality and quantity of work to be accomplished
(c; difficult; P. 158)
29. Informal planning is _________.

a. performed at the lowest organizational level
b. general and lacks continuity
c. developed in informal meetings at a resort
d. specific and is developed by the middle managers for their department
(b; easy; p. 158)
30. In formal planning, _________.
a. specific goals covering a period of years are defined
b. specific goals are developed and not written
c. general goals are developed and not written
d. general goals covering an unspecified period of years are defined
(a; easy; p. 158)
31. Formal planning involves which of the following aspects?

a. developing general objectives
b. planning for up to one year
c. writing objectives
d. distributing the plan to all managerial employees
32. In informal planning, __________ sharing of goals with others in the organization.
a. everything may be written down, but there is little or no
b. everything is written down, and there is
c. nothing is written down, and there is little or no
d. nothing is written down, therefore management does a lot of
Why Do Managers Plan?
33. Planning gives direction, reduces the impact of change, minimizes waste and
redundancy, and __________.
a. establishes the workloads for each of the departments
b. sets the basis used for promotion of individuals within the organization
c. eliminates departments that are found to not be needed within the plan
d. sets the standards used in controlling
34. Planning can’t eliminate change. Managers plan in order to ___________.
a. be prepared for when changes in management at the top occurs
b. anticipate changes and develop the most-effective response to changes
c. decide what needs to be done when a change in environments happen
d. have the appropriate materials available when the demand for them comes
about
35. The effect of planning on managers is that it forces them to do which of the following?
a. react to change
b. consider the impact of change
c. respond indiscriminately
d. develop bureaucratic response models
36. Generally speaking, which of the following factors least constrains high performance in
planning organizations?
a. quality of planning
b. extent of planning
c. implementation of plans
d. environmental factors
37. Studies of performance in organizations that plan have reached ___________.

a. somewhat negative conclusions regarding the benefits of planning
b. generally mixed conclusions regarding the benefits of planning
c. generally negative conclusions regarding the benefits of planning
d. generally positive conclusions regarding the benefits of planning
38. The quality of the planning process and the appropriate implementation of the plans
probably ___________.
a. don’t contribute to high performance nearly as much as the extent of planning
b. contribute more to high performance than does the extent of planning
c. contribute less to high performance than does the extent of planning
d. should be studied more to factually determine which contributes the most
39. Governmental regulations, powerful labor unions, and other critical environmental
forces constrain managers’ options and __________.
a. reduce the impact of planning on an organization’s performance
b. increase the impact of planning on an organization’s performance
c. neutralize the impact of planning on an organization’s performance
d. don’t affect the impact of planning on an organization’s performance
40. In studies in which formal planning did not lead to higher performance, ____________.
a. the external environment often was the culprit
b. management execution of the plans was most often the reason for failure
c. employee implementation of the plans was the primary reason for failure
d. lack of communication was most often the reason for failure
How Do Managers Plan?
41. Planning is often called the primary management function because it ____________.
a offers some basis for future decision making
b. creates the vision for the organizational members to work toward
c. establishes the basis for all the other functions
d. sets the tone for the organizational culture
42. Planning involves two important elements: ___________.

a. goals and decisions
b. goals and plans
c. plans and decisions
d. goals and actions
43. Official statements of what an organization says and what it wants its various
stakeholders to believe are referred to as ___________.
a. real goals
b. stated goals
c. committed goals
d. comprehensive goals
44. Which of the following is true concerning an organization’s stated objectives?

a. They issue identical objectives to all constituents.
b. Organizations typically have internal and external sets of objectives.
c. They may issue different objectives to stockholders, customers, employees, and
the public.
d. Stated objectives are usually in line with short-term actions.
45. What should a person do to understand what the real objectives of the organization are?
a. observe organizational member actions
b. attend a stockholders’ annual meeting
c. read their annual report
d. watch television news reports
46. When we categorize plans as being directional versus specific, we are categorizing
them by ____________.
a. breadth
b. specificity
a. frequency of use
d. depth
(b; easy; p. 163)
47. When we categorize plans as being single use versus standing, we categorize them by
____________.
a. breadth
b. specificity
c. frequency of use
d. time frame
(c; easy; p. 163)
48. A state legislative plan that calls for a 2.45 percent increase in tobacco sales tax for the
next 2 years would be considered what type of plan?
a. strategic
b. operational
c. specific
d. directional
49. Directional plans do which of the following?

a. have clearly defined objectives
b. identify general guidelines
c. meet the needs of a unique situation
d. last for 3–5 years
50. Which of the following is true concerning standing plans?

a. They provide guidance for activities repeatedly performed in the organization.
b. They provide guidance for 1–3 years.
c. They specify general guidelines.
d. They are specifically designed to meet the needs of a unique situation.
51. A city’s policy concerning skateboarding on downtown sidewalks that provides

guidance for police action would be considered what type of plan?
a. standing
b. contingency
c. directional
d. single use
52. The most common ways to describe organizational plans are by their breadth, time
frame, specificity and ___________.
a. quantifiability
b. flexibility
c. frequency of use
d. attainability
(c; easy; p. 162)
53. What happens to traditional goals as they make their way down from top management
to lower levels?
a. they lose clarity and unity
b. they unite the workforce
c. lower-level managers must continually revise and correct them.
d. they purposely remain vague and nonspecific.
(a; moderate; P. 164)
54. Goals are objectives, __________.
a. and we use the two terms interchangeably
b. but goals are long-term and objectives are short-term
c. and goals are used by top management and objectives are used by first-level
management
d. but goals are used in reference to profits, and objectives are used in reference to
production output
(a; easy; p. 160)
55. Plans are documents that outline how goals are going to be met and ___________.
a. define which department has what responsibilities needed to accomplish the goals
b. tell what materials and processes are necessary to fulfill the goals
c. identify how much capital is required to complete the goals
d. describe resource allocations, schedules, and other necessary actions to
accomplish the goals
56. Emphasis on one goal ___________.

a. assures that the one goal will be accomplished even above the established level
b. ignores other goals that must also be reached if long-term success is to achieved
c. make the goal easier to be accomplished by all the organizational members
d. denies the organizational members the opportunity to grow and develop
57. Using a single objective can result in unethical practices because managers
____________.
a. want to satisfy the stockholders of the organization
b. will manipulate the outcomes reported to assure that the one objective is achieved
c. will ignore other important parts of their jobs in order to look good on that one
measure
d. will use overtime to accomplish that single objective without reporting it
58. Stated goals are official statements of what an organization says its goals are and
___________.
a. what it wants its various stakeholders to believe its goals are
b. are the goals that the organization actively works to achieve
c. what it wants its stockholders to believe its goals are
d. what it believes its goals are
59. The most popular ways to describe organizational plans are by their breadth, time
frame, ____________.
a. depth, and urgency
b. frequency, and urgency
c. specificity, and frequency
d. depth, and specificity
60. Strategic plans are plans that apply to the entire organization, establish the
organization’s overall goals, and ____________.
a. guide the organization toward maximizing organizational profits for the
stockholders
b. attempt to satisfy all government regulations while maximizing profits
c. satisfy the organization’s stakeholders
d. seek to position the organization in terms of its environment
61. Operational plans specify the details of ___________.

a. what department performs which functional process to accomplish the goals
b. what materials are required for which product being produced
c. when each product model is to be produced
d. how the overall goals are to be achieved
62. Strategic plans tend to cover a longer period of time than operational goals and also
_____________.
a. cover a more narrow view of the organization
b. cover the financial projections of the planning period
c. cover a broader view of the organization
d. include an estimate of the profits that the stockholder can anticipate as dividends
63. Specific plans are clearly defined and ____________.

a. allow managers to their interpretation for flexibility
b. leave no room for interpretation
c. give the managers authority to interpret the plans for their area of responsibility
d. keep the stakeholders inform of the organization’s objectives
64. Directional plans are ___________.

a. flexible plans that set out general guidelines
b. stringent plans that establish specific directions for manager to follow
c. formal plans that provide the directions of how to assemble the product
d. general plans that allow the workers to change the schedule of production
(a; easy; p. 163)
65. Standing plans are ongoing plans that provide ____________.

a. general directions of how to accomplish an identifiable task
b. stakeholders identifiable goals that the organization will always strive to achieve
c. the stockholders identifiable goals that the organization will always strive to
achieve
d. guidance for activities performed repeatedly
66. Goals are often called ___________.

a. the basis for all the other functions
b. managements’ do or die objectives
c. a lot of other names by various organizations
d. the foundation of planning
67. __________ can evaluate whether an organization is successful.

a. A goal is the only measure that
b. No single measure
c. Plans are also a measure that
d. Stakeholders are the only groups that
68. The conflict in stated goals exists because organizations respond to a variety of
_______________.
a. stakeholders
b. external environments
c. governmental regulations
d. stockholders
69. Strategic plans cover a broader view of the organization and include the
formulation of goals, whereas operational plans define ways to
_____________.
a. maximize the organization’s profits
b. achieve the goals
c. minimize the number of employees that have to be laid off in hard times
d. provide the most efficient methods of production
70. The flexibility inherent in directional plans must be weighed against the
_____________.
a. gain of a shorter planning period by specific plans
b. gain of a longer planning provided by specific plans
c. loss of clarity provided by specific plans
d. loss of a shorter planning period by specific plans
(c; easy; p. 163)
71. __________ is a one-time plan specifically designed to meet the needs of a

unique situation.
a. Multipurpose plan
b. Strategic plan
c. Operational plan
d. Single-use plan
(d; easy; p. 163)
72. ____________ planning dominates managers’ planning efforts at lower levels of the
organization.
a. Strategic
b. Tactical
c. Operational
d. Functional
(c; easy; p. 162)
Establishing Goals and Developing Plans
73. With traditional goal setting, the goals are set at the top level of management and
_____________.
a. then they become the responsibility of first-line management to achieve the goals
b. then they are broken down into subgoals for each level of the organizatio
c. all the efforts to achieve the goals are directed by top management to ensure that
they are achieved
d. then they are delegated to the next lower level to be achieved
74. With traditional goal setting, employees’ work efforts at their respective levels and
work areas are geared to meet the goals ___________.
a. so that the top management will be retained in their position
b. so that their immediate supervisor will be retained in their position
c. that have been assigned in their specific areas of responsibility
d. within the shortest amount of time possible
75. Management by objectives is a management system in which the first steps are setting
specific performance goals that are _____________.
a. established that can be easily accomplished
b. jointly determined by employees and their managers
c. determined by top management with clarity so that the objective are clear to even
the most incompetent employee
d. developed in such a manner that the employees are self-directed and do not need
supervision
76. Studies of actual MBO programs confirm that MBO __________ employee
performance and organizational performance.
a. depends on
b. is related to
c. decreases
d. increases
77. According to the textbook, one of the potential problems of MBO programs is that
____________.
a. there may be an overemphasis on the employee accomplishing their goals without
regards to others in the work unit
b. they may not be as effective in times of dynamic environmental change
c. employees do not take goal setting seriously enough
d. all of the above
78. In the MBO system, ___________.

a. objectives are determined by management
b. goals are only reviewed at the time of completion
c. goals are used as controls
d. progress is periodically reviewed
(d; moderate; P. 165)
79. A well-designed goal should be ____________.

a. short and very specific about expected outcomes
b. written in terms of outcomes rather than actions
c. identifiable to even the first-line supervisors
d. specific and within a manageable time frame
80. A well-designed goal should be measurable, have a specified time frame, and be
____________.
a. written down
b. nearly unattainable, so that even if the unit or employee misses their goal,
performance is still very high
c. communicated to anyone who needs to know
d. both a and c
81. When organizational members are more actively involved in planning, they see that the
plans ____________.
a. stated to stakeholders are the real plans that the organization desires to achieve
b. are not as important as management makes them out to be
c. are how the company is going to be judged by the stockholders
d. are more than just something written down on paper
82. When the hierarchy of organizational goals is clearly defined, it forms an

integrated network of goals, or ____________.
a. hierarchical-link chain
b. means-ends chain
c. weakest-link chain
d. level-level chain
(b; easy; p. 164)
83. Three contingency factors that affect planning are level in the organization, degree of
environmental uncertainty, and ____________.
a. length of future commitments
b. quantity of future commitments
c. frequency of future commitments
d. enforceability of future commitments
84. The commitment concept means that plans should extend far enough to meet those
commitments __________.
a. as quickly as possible
b. while the resources are available
c. with the stakeholders and make it appear that the organization is really committed
d. made when the plans were developed
85. Three contingency factors cited by your textbook that affect planning are level in the
organization, length of future commitments, and ____________.
a. risk aversion of management
b. employee satisfaction
c. level of productivity
d. degree of environmental uncertainty
86. How an organization plans can be best understood by looking at ____________.

a. the goals set out by the organization’s planners
b. who does the planning
c. the flexibility of the organization’s plans
(a; easy; p. 169)
87. In the traditional approach to planning, planning was done entirely by top-level
managers who were often assisted by ____________.
a. business level managers
b. functional level managers
c. a mixture of managers from the line, functional, and business level
d. a group of planning specialists
(d; easy; p. 169)
88. Goals provide the direction for all management decisions and actions and form the
_____________.
a. profit basis that the organizations will accomplish for stockholders
b. desired outcomes that the organizational members will achieve
c. basis for the sharing of profits with the employees at the end
d. criterion against which actual accomplishments are measured
CONTEMPORARY ISSUES IN PLANNING
89. According to your textbook, frequently cited criticisms of formal planning

include, ____________.
a. “plan’s can’t be developed for a dynamic environment”
b. “formal planning is too time consuming, given the dyamism in modern
business environments”
c. “formal planning creates extra, often redundant levels of hierarchy within
the organization”
d. “formal planning works well only for large, diversified companies”
90. It is __________ formal planning efforts when the environment is highly

uncertain.
a. not as important to continu rarely verbalized e
b. important to switch to directional planning and cease
c. necessary to cease
d. important to continue
91. A wireless networking technology called WiFi that links together information
devices is __________.
a. threatening to revolutionize all kinds of industries
b. making organizational planning much easier
c. complicating the planning process, but will be improving communications
d. an integral component of planning for the Fortune 500 companies
92. According to your textbook, in an uncertain environment, managers want to develop

_________ plans.
a. general and flexible
b. specific but flexible
c. formal
d. contingency
93. As organizational environments have become more uncertain, ____________.

a. organizations are having to make longer term plans
b. organizations have to resist the uncertainties to keep the plans moving toward the
objectives
c. organizations have to request the government to pass more legislation restricting
the amount of uncertainty
d. the definition of long term has changed
94. In an uncertain environment, managers want to develop plans that are

____________.
a. flexible but manageable
b. specific and long ranging
c. directional but flexible
d. specific but flexible
95. The organizational hierarchy becomes flattened as the responsibility for

establishing goals and developing plans is ____________.
a. moved to the middle organizational levels
b. shoved the lowest organizational levels
c. shifted to a formal planning department
d. more the work of the financial department
96. According to your textbook, in order to manage effectively in dynamic environment,

managers must recognize that planning is _____________.
a. an ongoing process
b. not renewable from one planning period to the next
c. best left to the formal planning department
d. best done at the beginning of a new year
(a; easy; p. 172)
SCENARIO QUESTIONS
WHAT IS PLANNING?
It’s Academic (Scenario)

You are the Academic Dean for a small liberal arts college. The university president has
asked you to develop a plan for the college. He wants a plan covering the next 5 years, and he
wants it to be as specific as possible, yet not overly constrain flexibility.
97. Your plan will have specific objectives covering a period of 5 years along with specific
action plans for achieving of these objectives. Your plan could best be described as
___________.
a. contractual
b. formal
c. defined
d. standard
98. The President has expressed concern regarding the impact of planning on the ability of
the organizational to respond to emerging changes in the higher education environment,
such as distance learning and corporate universities. You should tell the President that
planning has what kind of effect?
a. forces managers to look at the present
b. forces managers to anticipate change
c. managers can’t really consider the impact of change
d. planning increases uncertainty
(b; easy; p. 158)
99. Due to the many colleges and universities in your area, the President has
expressed concern about sharing too many details regarding specific goals and
action programs beyond top administration and the board of regents. According
to your textbook, you should suggest that ______________.
a. goals must be shared with organization members to be effective
b. because of the intense competition in your area, you agree with his position
c. strategic goals and plans should never leave the boardroom under any
circumstances—loose lips sink ships
d. information could be leaked through the press and the Internet over time, so
that employees will become aware of plans
(a; easy; p. 158)
HOW DO MANAGERS PLAN?
E-Biz Dreams (Scenario)
Robert Downs has just completed a Master of Science degree in Computer Science at Major State University. He now wants to
begin a new Internet business selling his services as a Web site maker for companies in his home city, St. Louis. He estimates
that within 1 year, if his business idea is a success, that, at a minimum, he will be employing 10 programmers and 2 analysts.
100. To make his business successful, he will first have to develop which type of
plans?
a. operational plans
b. specific plans
c. directional plans
d. strategic plans
101. To clarify how the overall goals are to be achieved, he will have to develop
which type of plans?
b. specific plans
d. strategic plans
102. To ensure that the organization’s objectives are clearly defined and do not leave
room for interpretation, he will have to develop which type of plans?
b. specific plans
d. strategic plans
103. To provide the programmers and analyst general guidelines about the
efficiencies that are desired, he will have to develop which type of plans?
b. specific plans
d. strategic plans
A Business Plan (Scenario)
Imagine that you are the owner of a small company that sells typewriters, business equipment,
and computer hardware. You employ about 40 people. You know that the organization
needs to move in a different direction, and you want to set some long-term goals for the
company. You want to write something that will cover the next 3 years only, knowing
that business needs change somewhat frequently. Your goal is to write something that
provides direction, but does not contain extremely well-defined, potentially restrictive
objectives.
104. The fact that your plan covers three years suggests your plan is most consistent with
what type of plan?
a. specific
b. long term
c. operational
d. strategic
105. Your plan will cover the entire organization. This characteristic is most consistent with
what type of plan?
a. specific
b. long term
c. standard
d. strategic
Planning Factors (Scenario)
As vice president of a local manufacturer, you are interested in developing a new

organizational plan. However, you are unsure about several factors. You are not sure
who you should assign to the varying planning tasks. At the same time, several other
issues that could deeply affect your business are pending, including rising interest
rates and the potential formation of a new employee union. You must also consider
your firm’s contracts with large vendors that extend 5 years into the future.
106. For the most part, you should assign the operational planning activities to
___________.
a. line staff
b. top managers
c. lower-level managers
d. middle managers
(c; moderate; pp. 162-163)
107. Which plans should you and other top management members be working on?
a. operational
b. specific
c. overall
d. strategic
(d; moderate; pp. 162-163)
108. Uncertainty regarding the effects of unionization and rising interest rates on your
business suggests that the plans need to be ___________.
a. specific
b. directional
c. focused
d. objective
109. The issues that may deeply impact your business such as rising interest rates,
the potential formation of a new employee union and the firm’s contracts with
large vendors, are examples of ___________ factors that affect planning.
a. environmental
b. noncontrollable
c. outside
d. contingency
Retail Planning (Scenario)
Mr. Tyler Nall is President and CEO of what should be considered a major retailing chain that is about to begin operations.
During the last couple of months he has been working to lay out directions for the managers of the stores, which will exist in
major cities across the United States. Their stores will sell home furnishings that are considered moderately priced for the
average-income buyer. Mr. Nall and his vice presidents have decided that each store should have sales equal to or greater than
$100 per square foot, per day. To attract an adequate number of customers, the store should be:
• located in an out-parcel of a major shopping mall;

• the mall must attract an average of at least 10,000 customers daily;
• all stores are to be well-maintained both inside and out;
• displays arranged in room settings;
• well-lit, throughout the store;
• open from 9 A.M. to 9 P.M. Monday–Saturday, and 1 P.M. to 5 P.M. Sunday;
• sales personnel should be clean-cut, friendly, and wear appropriate business
attire.
110. The primary task that Mr. Nall and the vice presidents have been performing
during the last couple of months is known as ____________.
a. laying out ideas
b. making plans
c. establishing networks
d. designing the stores
(b; easy; p. 160)
111. 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 specific plan
b. a directional plan
c. a goal
d. management by objectives
112. 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. stated goal
d. real goal
(a; hard; p. 163)
113. Because the environmental conditions in which home furnishing stores operate
are generally stable, the statements intended to attract customers would most
likely be considered to be ___________.
b specific plans
d. strategic plans
114. Nall’s goal for each store of $100 per square foot, per day has several of the
characteristics of a well-designed goal. First, it is written in terms of outcomes and not
actions. Second, this goal is measurable and quantifiable. According to your textbook,
what else can Nall do to improve the design of this goal?
a. specify a time frame for achieving this goal
b. ensure the goal is attainable
c. communicate this goal to every single employee of the organization
d. A and B only
ESTABLISHING GOALS AND DEVELOPING PLANS
A-Z Planning (Scenario)
Organizations ABC and XYZ are both in the same industry and vie for the same set of customers in the marketplace. Within
ABC, the plans are made at the top level of management each year and then are formulated for and announced to each of the
mid-level and first-level managers. At XYZ, the plans are made at the top and then those managers meet with their subordinates
at the next level and mutually agreed-to goals are established with them. The mid-level managers then meet with their first-level
managers and mutually agreed-to goals are established with them. The first-level managers then meet with each of their
employees and mutually agreed-to goals are established with them.
115. Because these plans only cover a 1-year period, they are considered to be which
type of plans?
b. specific plans
d. strategic plans
116. The planning approach used at the ABC organization is which of the
following?
a. Management by Objectives
b. directional planning
c. specific planning
d. traditional planning
117. The planning approach used at the XYZ organization is which of the
following?
a. directional planning
b. Management by Objectives
c. traditional planning
d. specific planning
118. Which organization is most likely to have the highest employee performance
and organizational productivity?
a. Neither, as they are both in the same industry and facing the same environments.
b. Organization ABC, because the plans are formulated by management for each
level of the organization.
c. Organization XYZ, because the employees participated in the planning process
and know specifically what their objectives are.
d. Neither, because the hierarchy of organizational goals is clearly defined at each
level.
Page 165
119. Assuming company XYZ’s hierarchy of goals are clearly defined, the resulting
integrated network of goals is also called ____________.
a. unity of command
b. a means-end chain
c. management by objectives
THE IMPORTANCE OF STRATEGIC MANAGEMENT
29. Strategic management is __________.

a. a set of managerial decisions and actions
b. oriented to short-run performance of an organization
c. a process that is done best if it is done quickly
d. all of the above
30. Strategic management uses the management function(s) ____________.

a. planning and leading
b. organizing
c. controlling
d. all of the above
(d; easy; p. 180)
31. According to your textbook, studies of the factors that contribute to organizational
performance have shown _____________ relationship between strategic planning and
performance.
a. no
b. a mixed
c. a negative
d. a positive
(d; easy; p. 181)
32. Currently strategic practices are not viable for ____________.

a. hospitals
b. government agencies
c. nonprofit organizations
33. __________________ is the collection of managerial decisions and actions that

determine the long-run performance of an organization.
a. Planning
b. Goal-oriented management
c. Strategic management
d. Leadership
THE STRATEGIC MANAGEMENT PROCESS
34. In the first step of strategic management, the mission of the firm answers the question,
____________
a. What business should we be in?
b. What is our reason for being in business?
c. Who are our customers?
d. Who are our creditors?
35. In the first step of strategic management, identifying the current strategies and goals
provide ___________.
a. a foundation for planning
b. measurable performance targets for employees
c. a basis to determine if the goals need to be changed
d. all of the above
36. In analyzing the environment, managers should know ____________.

a. what the competition is doing
b. the competition’s stock price
c. pending legislation that might affect the organization
d. A and C are correct.
37. Managers have completed the second step in strategic management, analysis of the
environment, when they ___________.
a. have an accurate picture of what is happening in the external environment
b. have beat the competition’s latest product or service to market
c. are aware of the trends that might affect the organization
d. only a and c are true
38. Step 4 of strategic analysis involves ___________.

a. selecting strategies that minimize or correct organizational weaknesses
b. developing and evaluating strategic alternatives
c. selecting strategies that exploit organizational strengths
d. all the above
39. An example of a core competence of a firm is ___________.

a. an ability to serve the needs of a particular target market on a large scale
b. communicating with customers in their own languages worldwide
c. developing least-squared exemptions within its accounting system
d. only a and b are true
40. ________________ are the organization’s major value-creating skills, capabilities, and
resources that determine the organization’s competitive weapons.
a. Strengths
b. Opportunities
c. Core competencies
d. Weaknesses
41. The third step in strategic management is identification of strengths and weaknesses
and is related to analysis of ____________.
a. the external environment
b. the internal environment
c. the alternatives the firm faces
d. time pressures involved in serving the customer
42. Relative to the organization’s culture, a manager must be aware that ___________.
a. strong and weak cultures have different effects on the strategy
b. the content of a culture has a major effect on the strategies that can be pursued
c. unimportant factors can support escalation of commitment to strategies
d. a and b
43. The merging of the analyses of internal and external factors influencing the
organization’s strategy is known as ____________.
a. complete studies
b. organizational behavior and theory
c. definitional analysis
d. SWOT analysis
(d; easy; p. 185)
44. Formulating strategies, the fourth step in strategic planning, is complete when managers
have developed a set of strategies that __________.
a. support and complement each other
b. give the organization relative advantage over its rivals
c. give the organization the most favorable competitive edge
d. all of the above
45. The final step in strategic planning answers the question, ____________
a. How effective have our strategies been?
b. What business have we been in?
c. What business should we have we been in?
d. How much money have we lost?
46. When an organization is analyzing its labor supply, it is studying its

________________.
a. organizational culture
b. internal environment
c. external environment
d. organizational structure
47. ___________ and ___________ are outcomes from a study of the external
environment.
a. Threats; weaknesses
b. Strengths; weaknesses
c. Weights; measures
d. Opportunities; threats
48. If a bank estimates the capabilities of its training and development department
employees prior to implementing a new training program designed to change their
method of providing customer service, it is completing what step in the strategic
management process?
a. identifying opportunities and threats
b. identifying the organization’s current mission
c. identifying strengths and weaknesses
d. formulating strategy
49. In the strategic management process, any organizational skills or resources that are
exceptional or unique are the organization’s ____________.
a. strength basis
b. opportunities
c. core competencies
d. skill niches
50. Which of the following is one of the drawbacks to a strong organizational culture that a
manager should consider when completing the strategic management process?
a. it can be more difficult to change
b. employees have less understanding of the planning process
c. employee attitudes tend to be strong, but their organizational values are weak
d. it cancels out any organizational distinctive competence
(a; easy; p. 185)
TYPES OF ORGANIZATIONAL STRATEGIES
51. Corporate-level strategy determines __________.

a. what businesses a company should be in or wants to be in
b. what environment a company should be in or wants to be in
c. the roles each business unit in an organization will play in the overall strategy
d. only a and c are true
52. ___________ strategy determines what businesses an organization should be in.

a. Business-level
b. Organizational
c. Operational-level
d. Corporate-level
53. A(n) ___________ strategy addresses organizational weaknesses, helps stabilize

operations, and revitalizes organizational resources and capabilities.
a. unrelated diversification
b. horizontal integration
c. vertical integration
d. retrenchment
54. There are three main types of growth strategies, _____________.

a. concentration, integration, and diversification
b. concentration, integration, and exfoliation
c. integration, diversification, and infiltration
d. concentration, integration, and focus
(a; easy; p. 187)
55. When an organization attempts to combine with other organizations in the same
industry, the strategy is known as a _____________ strategy.
a. growth
d. stability
56. When an organization attempts to combine with other organizations in different, but
associated industries, the strategy is known as a _____________ strategy.
a. growth
d. related diversification
57. When an organization attempts to combine with other organizations in different and
disassociated industries, the strategy is known as a _____________ strategy.
d. stability
58. When PepsiCo seeks to integrate the strategies of Pepsi, 7-Up International, and Frito-
Lay, it is developing what level of business strategy?
a. functional
b. system
c. management
d. corporate
59. An organization that is diversifying its product line is exhibiting what type of grand
strategy?
a. stability
b. retrenchment
c. growth
d. maintenance
60. If United Airlines merged with Northwest Airlines, this would be an example of what
kind of grand growth strategy?
a. horizontal integration
b. acquisition
c. expansion
d. vertical integration
61. Which of the following describes a company growing by combining with other
organizations in the same industry?
a. forward vertical integration
b. backward vertical integration
c. horizontal integration
d. unrelated diversification
62. According to the textbook, a stability strategy is particularly appropriate when
____________.
a. the firm is facing slow or no-growth opportunities
b. the industry is in a state of rapid upheaval
c. both a and b
d. neither a or b
63. Which of the following is part of the principles upon which SBUs are based?
a. Each business unit serves no more than three product market segments.
b. The strategy is defined at the corporate level.
c. The strategy may be inconsistent with overall organizational needs.
d. Each serves a clearly defined product-market segment.
64. In the Boston Consulting Group matrix, a ________ does not consume or produce
much cash and holds little or no improved performance.
a. cash cow
b. star
c. dog
d. question mark
65. In the Boston Consulting Group matrix, a business unit that exists in a low anticipated
growth rate and a high market share is known as a _________.
a. cash cow
b. star
c. dog
d. question mark
66. In the Boston Consulting Group matrix, a business unit that exists in a high anticipated
growth rate and a low market share is known as a __________.
a. cash cow
b. star
c. dog
d. question mark
67. Which of the four business groups in the corporate portfolio matrix has low growth and
high market share?
a. question marks
b. dogs
c. cash cows
d. stars
68. Business-level strategy determines _____________.
a. what businesses a company should be in or wants to be in
b. what environment a company should be in or wants to be in
c. how an organization should compete in each of its strategic business units
d. all of the above
70. __________________ strategy determines how an organization should compete in each

of its businesses.
a. Business-level
b. Organizational
c. Operational-level
d. Corporate-level
71. Michael Porter proposes that some ____________ are inherently more profitable than
others.
a. companies
b. industries
c. SBUs
d. individuals
(b; easy; p. 192)
72. Which of the following is not a force in the Porter’s five forces model of industry
attractiveness?
a. opportunity for new entrants
b. opportunity for substitutes
c. bargaining power of suppliers
d. sustainable competitive advantage for customers
73. Differentiation as a strategy requires a firm to ___________.

a. aggressively search out efficiencies to maintain the lowest cost structure
b. be unique in its product offering
c. aim at a cost advantage in a niche market
d. aim to be similar to its competition in all operations
74. Cost leadership as a strategy requires a firm to ____________.

a. aggressively search out efficiencies to maintain the lowest cost structure
b. be unique in its product offering
c. aim at a cost advantage in a niche market
d. aim to be similar to its competition in most operations
75. A focus strategy requires that a firm have ___________.

a. sustained capital investment and access to capital
b. strong marketing abilities
c. strong basic research skills
d. a reputation for quality or technological leadership
76. According to Porter’s competitive strategies framework, which of the following

strategies seeks to be unique in its product offering and in its industry in ways that are
widely valued by customers?
a. cost leadership
b. differentiation
c. focus
d. “stuck in the middle”
77. Michael Porter’s competitive strategies framework identifies three generic competitive
strategies: cost leadership, differentiation, and ___________.
a. depth
b. breadth
c. revenue growth
d. focus
78. A firm that is “stuck in the middle” cannot develop a strategy of _____________.
a. differentiation
b. focus
c. cost leadership
d. B and D are correct.
79. In Michael Porter’s five forces model of competition, _______________ is determined

by the height of barriers to entry, such as economies of scale and brand loyalty.
a. threat of substitutes
b. threats of new entrants
c. bargaining power of buyers
d. bargaining power of suppliers

by the degree of supplier concentration and substitute inputs.
b. threat of new entrants

by the industry growth rate, increasing or falling demand, and product differences.
d. existing rivalry
82. All of the following are mentioned in the textbook as companies that have used the low-
cost leader strategy except ____________.
a. Wal-Mart
b. Hyundai
c. Southwest Airlines
d. Dell Computer Corporation
83. Industry growth rate, increasing or falling demand, and product differences are
factors that represent which of the following competitive forces, according to
Porter?
a. threat of new entrants

b. threat of substitutes
d. existing rivalry
84. Functional-level strategy directly supports ____________.

a. corporate-level strategy
b. business-level strategy
c. differentiation strategy
d. focus strategy
85. An organization is said to have ______________ when it has several different

businesses that are independent and that formulate their own strategies.
a. operational units
b. strategic business units
c. competitive advantages
d. legal subunits
86. An example of ________________ is when an organization possesses a characteristic

that sets itself apart from competitors, and this gives the firm a distinct edge.
a. core competence
b. competitive power
c. legal propriety
d. competitive advantage
87. To a degree, an organization’s commitment to quality and continuous improvement can

differentiate it from competitors, but constant improvement and reliability of an
organization’s products and/or services may result in a competitive advantage that is
_________.
a. weighted
b. sustainable
c. conservative
d. uncertain
88. Switching costs and buyer loyalty are examples of strategic forces that determine the
____________.
STRATEGIC MANAGEMENT IN TODAY’S ENVIRONMENT
89. The premise of the rule of three, is that _____________.

a. no industry can support more than three “super niche players”
b. there are usually only three “full line generalists”
c. three companies usually dominate the majority of market share
d. b and c
90. The rule of three says that most markets evolve _____________.
a. in spurts
b. rapidly
c. in a curvilinear fashion
d. in a cyclical fashion
91. According to the textbook, senior managers must decide whether or not the emphasis of
their innovation efforts is going to be upon ____________.
a. basic research
b. product innovation
c. process development
d. all of the above
92. Process development strategies seek to achieve a competitive advantage by

_____________.
a. looking for ways to enhance existing work processes
b. making the firm more efficient
c. making the firm more effective
d. a and b
(d; easy; p. 199)
93. An Internet based knowledge management system that resulted in shorter customer
response times would be one e-business technique that contributes to the competitive
advantage of a _____________.
a. cost leader
b. differentiator
c. focuser
d. star
94. According to the textbook, the first organization to bring a product or service to market
is often referred to as the ___________.
a. prime player
b. market leader
c. first mover
d. trailblazer
(c; easy; p. 199)
95. According to the textbook, customer service strategies involve giving the customer
what they want, effective communication, and ____________.
a. providing employees with incentives and bonuses for good service
b. providing employees with customer service training
c. commitment from upper management
SCENARIO QUESTIONS
THE STRATEGIC MANAGEMENT PROCESS
SWOT Analysis (Scenario)
As a process of self-examination during her senior year of college, Casey decides to develop a
SWOT analysis of her prospects relative to getting a job.
96. Casey realizes that she has a personal characteristic that suggests she is not comfortable
interacting with strangers. She interprets this as a(n) ___________ if she is get a job as
a salesperson.
a. alternative
b. strength
c. weakness
d. opportunity
97. Casey majored in marketing and really enjoyed studies in market research. Through
research on the Internet and in the university library, she discovers that this industry
appears to have significant positive external trends. She interprets this as a(n)
___________.
a. alternative
b. strength
c. weakness
d. opportunity
98. Casey begins outlining her 5-year career goals. These should include ____________.
a. the type of job she would like to have
b. how many people she would like to be managing
c. the salary she would like to be making
d. all of the above
99. Casey finally outlines a 5-year career action plan. This consists of ___________.
a. actions required to accomplish her career goals
b. statements of what she will need to do to accomplish her career goals
c. definitions of assistance she will need and how she will acquire the assistance
d. all of the above
100. Casey has been involved in ______________ at a personal level.

a. opportunity analysis
b. risk avoidance
c. strategic planning
d. Stage decision making
(c; easy; p. 186)
TYPES OF ORGANIZATIONAL STRATEGIES
Powerballs (Scenario)
Colleen invested a dollar in the Powerball Lottery and won $60 million. Subsequently, she
decides to start her own business.
101. Initially she begins a business that has a single-line business. She realizes that this
organization will need a ____________ strategy.
a. business-level
b. organizational
c. operational-level
d. corporate-level
102. Colleen decides that she wants to assemble lawn mowers. She decides that she wants a
business to develop a distinctive edge in producing high-quality lawn mowers. This
emphasis on quality is to be so strong that her company will have a ___________ that
will set her company apart from her competition.
a. core competence
b. competitive power
c. legal propriety
d. competitive advantage
103. Colleen is successful after the first 3 years, and she is approached by a competitor who
is nearing retirement age. The competitor is interested in selling his business to Colleen.
For Colleen, this would be a(n) __________ strategy.
d. retrenchment
104. Before Colleen can purchase her competitor’s business, she finds another business
opportunity in a supplier who sells her wheels for lawnmowers. This would serve her as
a(n) ____________.
105. A business broker hears that Colleen is interested in purchasing a business and
approaches her with an offer to sell her a company that owns a patent on a new roofing
product and who installs this new roofing in the southwestern United States. If she buys
this firm, she will be using a(n) _____________ strategy.
106. No matter which business Colleen decides to buy, she intends to operate each business
independently and allow each to determine its own strategy. This will mean that each
company will be a(n) _____________.
a. operational unit
b. strategic business unit
c. competitive advantage
d. legal subunit
Un Taco Pequeno (Scenario)
Imagine that you are the president of Taco Rocket, a new and successful chain of 100
Mexican fast-food restaurants. The success you have experienced in the last 5 years has you
thinking of what to do with the business next. Should you expand the business at the current
rate? Open new and different restaurants? What?
107. Because of the good profits and a fear of growing too fast, you decide to keep
Taco Rocket in the same business and do not change the menu, hoping to retain
the same market share and return-on-investment record. This would be
considered a ______________ strategy.
a. stability
b. growth
c. combination
d. diversification
(a; easy; p. 188)
108. If you decided to purchase a local five-store hardware chain because it was a good
investment, this would be an example of _____________.
a. a lateral growth strategy
b. a combination purchase
c. related diversification
d. unrelated diversification
109. If you decided to concentrate on Taco Rocket’s primary business, only

increasing the menu to include new items such as enchiladas and rice bowls,
this would be an example of what type of growth strategy?
a. lateral growth
c. concentration
110. You’ve decided to purchase a controlling interest in a chain of Oriental fast-food

restaurants, called Honk Kong Fooey. However, you have decided to change the name
of the chain to the Shanghai Grill. This move is most representative of what type of
growth strategy?
a. lateral growth
c. unrelated diversification
111. Your oldest supplier, Zorro Distributors, is a family-owned firm. Recently, the firm’s
president, Diego De La Vega, made the decision to retire. To his disappointment, none
of his five children stepped forward to take his place at the helm of the firm. Sr. De La
Vega is concerned that if he sells his company to a larger distributor, many of his
employees will lose their jobs. You approach your old friend with a generous offer to
buy Zorro and continue its current operations. Should your offer be accepted, Taco
Rocket would be undertaking ___________.
a. lateral growth
b. unrelated diversification
c. forward vertical integration
d. backward vertical integration
El Taco Grande (Scenario)
It is now 10 years later (see previous scenario) and, as the original owner of Taco Rocket, you
have seen your business holdings grow substantially. The number of stores you own and
franchise has grown by 200 percent and you own a number of companies in related and
unrelated areas.
112. You now need to decide how to best manage and utilize the large
number of assets represented by the numerous companies you own. For each
SBU, managers must create a __________ strategy to determine how your
corporation should compete in each of its businesses.
a. corporate-level
b. business-level
c. functional-level
d. tactical
113. What level of strategy integrates the strategies of your various business units (Taco
Rocket, Shanghai Grill, Zorro Distributors)?
a. corporate level
b. business level
c. functional level
d. strategic level
(a; easy; p. 187)
114. You called the Boston Consulting Group (BCG), and they have provided you with
some advice based on their famous corporate portfolio matrix. Your oldest holding,
Taco Rocket, has not grown much in recent years, but due to low debt, generates a huge
amount of cash. According to BCG, Taco Rocket would be considered a
____________.
a. cash cow
b. star
c. question mark
d. dog
115. Recently, you also purchased a company that manufactures a new satellite dish,
allowing you to enter into the cable television market. The business is profitable and
growing, but the technological unknowns make it risky. BGC considers it a
___________.
a. cash cow
b. star
c. question mark
d. dog
116. Another purchase you made was to acquire a local coffee-cart chain with 30 locations
around the city. You don’t see it growing very much, but then, it doesn’t cost much to
operate. BCG would label this venture a _____________.
a. cash cow
b. star
c. question mark
d. dog
Patrick the E-business Entrepreneur (Scenario)
Patrick majored in entrepreneurship and computer science in college. After graduation, he

decided to start his own business as an e-business entrepreneur, founding an online B2B
reverse auction company called CompuSave.
117. While his more established competitors have concentrated on the supply market Fortune
1000-type firms, Dave has decided to concentrate on the Small–Medium-size Enterprise
(SME) market, concentrating on reselling computer-related hardware to firms in the
local tri-state area so that he can keep his marketing costs low. This strategy would be
characterized by Porter as a ___________ strategy.
a. differentiation
b. low cost
c. focus
118. Patrick determined that he needed a new marketing strategy that would help increase
the awareness of his company and the benefits it could provide to local businesses. In
the textbook, devising this new marketing strategy would be termed as a
_____________.
a. corporate-level strategy
b. business-level strategy
c. functional-level strategy
d. tactical strategy
119. After hiring several employees, Patrick requires that each person in this company be
involved in studying trends involving new technology, competitors, and customers.
These employees are involved in ______________.
a. external analysis
b. internal environment
c. strategic management
d. bounded rationality
Environmental Scanning
29. Environmental scanning is the screening of large amounts of information to anticipate

and ____________.
a. follow new legislation that is being passed by Congress
b. interpret changes in the environment
c. correct failure in pollution equipment
d. forecast climatic changes that will affect materials used
30. Competitor intelligence experts suggest that 80 percent of what a manager need to
know about competitors can be found out from ______________.
a. companies such as Dun & Bradstreet
b. their competitors’ employees, suppliers, and customers
c. their competitors’ products, suppliers, and customers
d. their own employees, suppliers, and customers
31. When seeking competitor intelligence, there is often a fine line between what’s
considered legal and ethical and what’s considered ____________.
a. illegal and ethical
b. illegal and unethical
c. legal and unethical
d. practical and legal
32. Many firms regularly buy competitors’ products and have their own engineers study
them to learn about new technical innovations. This process is called ______________.
a. competitor engineering
b. competition engineering
c. strategic engineering
d. reverse engineering
33. The value of global scanning is largely dependent on the ____________.
a. extent of foreign competition activities in the market
b. price that foreign competition charges in the market
c. extent of government regulation activities in the foreign market
d. extent of the organization’s global activities
34. What are three tools that managers can use to analyze their organization’s environment?
a. strategic planning, environmental scanning, and TQM
b. forecasting, budgeting, and time management
c. environmental scanning, forecasting, and benchmarking
d. benchmarking, planning, and evaluating
35. According to your textbook, one of the fastest-growing areas of environmental scanning
is _______________.
a. regression analysis
b. competitor intelligence
c. reengineering
d. forecasting
36. Competitor intelligence allows managers to do which of the following?

a. react to competitor actions
b. cut cost below the competition
c. increase market diversification
d. anticipate competitor actions
37. Which of the following is an accurate statement concerning the process of competitor
intelligence gathering?
a. it is legal but unethical
b. it is time consuming and costly to gather
c. Eighty percent of what managers need to know about competitors can be found
from their own employees, suppliers, and customers.
d. it typically involves organizational spying
38. When a firm’s engineers break down a competitor’s product to learn about new
technical innovations, they are engaging in _____________.
a. reverse engineering
b. espionage
c. reengineering
d. illegal activities
(a; easy; p. 208)
39. Environmental scanning creates the foundation for ____________.

a. project management
b. forecasts
c. benchmarking
d. budgeting
40. Research has shown that companies with advanced environmental scanning systems
_____________.
a. increased their profits and revenue growth
b. collect more data, but not much difference in their profits and revenue growth
c. improved their ability to compete in the market place
d. decreased their profits and revenue growth
41. Managers need forecasts that will allow them to predict future events effectively and
___________.
a. accurately
b. efficiently
c. specifically
d. in a timely manner
42. Quantitative forecasting applies a set of mathematical rules to ____________.

a. develop predictions of outcomes from customers’ opinions
b. a series of past data to predict outcomes
c. analyze what has happened in the past and determine when it will occur again
d. estimate the number of products that should be produced at a given time
43. The goal of forecasting is to provide managers ____________.

a. accurate predictions of trends and events
b. decisions as to what customers will be demanding and when
c. information about the dynamics of environmental change
d. with information that will facilitate decision making
44. The accuracy of a forecast decreases as the ______________.

a. quantity of data increases
b. simplicity of the forecast method increases
c. period you’re trying to predict increases
d. number of customers increases
45. Forecasting techniques fall into what two categories?
a. fixed asset and human capital
b. predictive and confirmatory
c. quantitative and qualitative
d. empirical and conceptual
(c ; moderate; p. 209)
46. If General Motors plans on changing their truck paint color scheme because they
believe that in the future more women will be interested in purchasing these vehicles,
this is an example of what kind of environmental scanning?
a. scenario
b. forecasting
c. benchmarking
d. anticipating
(b; moderate; pp. 209-210)
47. What type of forecasting technique relies on the judgment and opinion of
knowledgeable individuals?
a. qualitative
b. short-term
c. confirmatory
d. predictive
48. One suggestion for improving forecasting effectiveness is to _____________.

a. use complex forecasting sequences
b. gather as much data as possible
c. always employ global forecasting
d. use simple forecasting techniques
49. Which of the following is one suggestion for improving forecasting effectiveness?
a. do not utilize a “no change” scenario
b. base forecasts beyond the next 2 years
c. utilize the “half-life” estimation model
d. employ multiple forecasting methods
50. Which of the following is a suggestion for improving forecasting effectiveness?

a. develop a single and effective method
b. pay attention to trend turning points
c. develop complex and detailed mathematical models
d. shorten the length of forecasts
51. Virtually any component in the organization’s __________ environments can be

forecasted.
a. general and specific
b. internal and external
c. external
d. general
52. Qualitative forecasting uses the judgment and opinions of __________ to predict
outcomes.
a. customers and suppliers
b. distributors and suppliers
c. executives
d. knowledgeable individuals
53. Forecasting techniques are most accurate when the environment is __________.
a. changing inversely
b. dynamic on the long term, so turning points can be identified
c. not rapidly changing
d. seasonal, but not cyclical
54. When comparing every forecast with a no-change (in an environment) forecast, the no-
change forecast is accurate approximately __________.
a. half of the time
b. three-fourths of the time
c. four-thirds of the time
d. 80 percent of the time
55. Benchmarking is the search for the best practices among competitors or noncompetitors
that lead to their ____________.
a. achieving such a large market share
b. ability to so accurately predict the environment
c. superior performance
d. ability to identify new market niches
56. Which of the following is true concerning benchmarking?

a. Benchmarking always involves analyzing a competitor.
b. Benchmarking is most effective when analyzing within your own industry.
c. Benchmarking may involve analyzing a company with a completely different
product.
d. Benchmarking foreign companies is not suggested due to cultural differences.
57. Some companies have chosen some pretty unusual benchmarking partners. Southwest
Airlines studied ____________.
a. package handling at FedEx hubs
b. UPS package-handling hubs
c. Indy pit crews
d. tire changers at Goodyear stores
Techniques for Allocating Resources
58. Which of the following is an accurate statement about budgets?

a. they are typically not used for time estimating
b. by nature, they are only financially based
c. they may be used for organizational space planning
d. they are typically used for large and small capital expenditures
59. A budget is a numerical plan for allocating resources _____________.
a. to specific activities
b. dedicated to special projects
c. areas of production
d. developing new products
60. Budgets are popular most likely because they’re applicable to a wide variety of
organizations and ___________.
a. define how much money will be spent
b. specify how much money with organization will receive
c. work activities within organizations
d. estimate the number of units that will produce
61. Many managers don’t like preparing budgets because they feel the process is time
consuming, inflexible, inefficient, and ____________.
a. infallible
b. inflationary
c. insignificant
d. ineffective
62. Budgeting is an important managerial activity because it forces financial discipline and
structure __________.
a. with the cash part of the organization
b. throughout the organization
c. in the areas of the organization that need it the most
d. especially with start-up companies
63. The Gantt chart was developed during the early 1900s by Henry Gantt, an associate of
the scientific management leader ________________.
a. Henri Fayol
b. Fredrich Traylor
c. Henry Ford
d. Frederick Taylor
64. The Gantt chart visually shows when tasks are supposed to be done and compares that
with the ____________.
a. supervisors’ estimate of completion
b. actual progress on each
c. scheduled delivery of materials
d. customer’s requested date of delivery
65. Gantt charts were developed to help managers perform _____________.

a. budgeting
b. benchmarking
c. regression analysis
d. scheduling
66. A Gantt chart is essentially a bar graph with __________ axis and __________ axis.
a. time on the vertical; the activities to be scheduled on the horizontal
b. time on either; the activities to be scheduled on the other
c. time on the vertical; project completion on the horizontal
d. time on the horizontal; the activities to be scheduled on the vertical
67. Load charts list on the vertical axis either departments or _____________.
a. functional areas
b. specific resources
c. budgets
d. product weights
68. The Program Evaluation and Review Technique (PERT) is especially useful in
scheduling _____________.
a. projects
b. programs
c. processes
d. planning
69. The four terms that are required to construct a PERT network are: events, activities,
____________, and ____________.
a. crucial path; slack time
b. critical path; estimated time
c. crucial path; earliest date
d. slack time; critical path
70. A PERT network depicts the sequence of activities needed to complete a project and the
__________ each activity.
a. estimated day of
b. time or costs associated with
c. amount of money needed for
d. step of
71. In a PERT network, events are __________.

a. end points that represent the completion of major activities
b. the longest or the most time-consuming sequence of events in a PERT network
c. the amount of time an individual activity can be delayed without delaying the
whole project
d. all key activities needed to complete a project
72. Which of the following steps in the PERT process are end points that represent the
completion of major activities?
a. critical paths
b. events
c. checkpoints
d. sections
73. Which of the PERT steps represent the time or resources required to progress from one
event to another?
a. events
b. critical paths
c. checkpoints
d. activities
74. In the PERT process, what is the critical path?

a. the central guideline that other activities feed into
b. the checkpoint for comparing standards of completion
c. the most time-consuming sequence of events and activities
d. the most costly path in a scheduling outline
75. What type of technique is widely used to help managers make profit projections?
a. factor analysis
b. cost accounting
c. breakeven analysis
d. PERT
(c; easy; p. 216)
76. If a retail sales manager wants to know how many denim jackets must be sold in order
to reach a specified profit objective, he or she is employing what type of planning tool?
a. breakeven analysis
b. PERT
c. Gantt chart
d. cost accounting
77. Breakeven analysis is a widely used resource allocation technique to help managers
make _____________.
a. project total cost estimates
b. projections like PERT except it uses costs instead of time units
c. profit projections
d. fixed and variable cost estimates
78. In order to compute the breakeven point, a manager needs to know the unit price of the
product being sold, the variable cost per unit, and _______________.
a. total number of units sold
b. fixed costs per unit sold
c. total fixed costs
(c; easy; p. 216)
79. Examples of fixed costs include ______________.
a. property taxes
b. energy costs
c. labor costs
d. raw materials
(a; easy; p. 217)
80. According to the textbook, some applications for linear programming include
______________.
a. selecting transportation routes that minimize shipping costs
b. allocating an advertising budget among different plans
c. optimally assigning personal to projects
d. all of the above
81. Because linear programming requires that there be limited resources and outcome
optimization, it ____________.
a. cannot be applied to all resource allocation problems
b. can be used for all profit allocation problems
c. can be applied to all resource allocation problems
d. calculates lost time
82. If there is a linear relationship between variables included in a linear programming

model, then when there is a change in one variable, there must be an ______________.
a. even straight line established between the two points
b. exactly proportional change in the other variable
c. estimated profit change in the other
d. equal absolute change in the other
83. An organization breaks even when its total revenue is just enough to equal its
__________.
a. fixed cost
b. breakeven costs
c. variable costs
d. total cost
Contemporary Planning Techniques
84. To plan a project, all activities in the project and the resources needed to do them must
be ____________.
a. satisfied
b. on hand
c. identified
d. trained
85. The role of project manager remains difficult because she or he is managing people
who ______________.
a. will make mistakes during the project
b. might not show for work on the day of an important presentation
c. are not skilled enough to participate in the project
d. are still linked to their permanent work areas
86. A project is considered to be a one-time set of activities that has _______________.

a. definitive assessment stages across time
b. significant points to be analyzed
c. a definite beginning and ending point in time
d. an estimated start and finished date
87. Project management is the task of getting a project’s activities done on time, within
budget, and __________.
a. following directions
b. making adjustments in plans
c. according to specifications
d. within the limits of city engineering
88. The only real influence project managers have is __________.

a. their ability to keep the project moving forward
b. their communication skills and their power of persuasion
c. the ability of the supplier to deliver
d. insistence that the project be finished according to plans
89. Developing scenarios can be described as ______________.

a. planning
b. thinking about what will have
c. guessing as to what will change
d. contingency planning
90. Different assumptions in a scenario can lead to ________________.

a. different outcomes
b. the same estimates
c. disputes over which is correct
d. divergent ideas into results
91. Although scenario planning is useful in anticipating events that can be anticipated, it is
difficult to ____________.
a. establish datelines
b. prepare for increased sales of output
c. present the fact when they occur
d. forecast random events
92. The task of getting the activities done on time, within budget, and according to
specifications is _____________.
a. breakeven analysis
b. linear programming
c. probability analysis
d. project management
(d; moderate: p. 220)
93. As managers assess the environment, issues and concerns that could affect their
organization’s current or planned operations are likely to be revealed, and they
__________.
a. won’t be equally important
b. won’t be equally associated
c. will be equally important
d. will be as important as other, but not equal in value
94. The intent of scenario planning is not to try to predict the future, but to reduce
uncertainty by __________.
a. calculating the potential profits from different specified conditions
b. pretending that the customer needs are different from forecasted
c. supposing that a different market mix existed
d. playing out potential situations under different specified conditions
95. Planning tools and techniques can help managers prepare __________.
a. confidently for the future
b. future events
c. better budgets
d. larger projects
96. Planning tools and techniques will never replace the manager’s __________ in using
the information gained to develop effective and efficient plans.
a. knowledge and expertise
b. skills and capabilities
c. motivation and leadership
d. time and efforts
SCENARIO QUESTIONS
Techniques for Assessing the Environment
Dollars to Donuts (Scenario)
Ralph Friedgrin is the owner of a chain of five donut shops in Smalltown, MD. Smalltown is
located along the Interstate 95, about half-way between Lost and Nowhere.
97. Mr. Friedgrin demands that the five store managers during their weekly meeting discuss
what the customers in their stores are requesting. Mr. Friedgrin will always read the
monthly donut-industry magazine, Holey Mazole. He always attends the Annual
National Conference of Donut Makers and updates his managers when he returns.
These activities are examples of:
a. competitor intelligence
b. boundary spanning
c. environmental scanning
d. intellectual exercise
98. Ralph Friedgrin recently had three selected stores experiment with three new frying
oils. Customers were then asked to take a taste-preference test of three sample donuts,
one for each of the oils: N, O, and W. Based upon the results of this test, it was
concluded that oil N in the test was favored. Which planning tool was Ralph Friedgrin
using in this instancel?
a. quantitative forecasting technique
b. Delphi technique
c. focus group technique
d. qualitative forecasting technique
99. On occasion, Ralph Friedgrin goes to nearby, larger towns such as Lost and Nowhere to
visit big chain donut shops. Ralph purchases donuts and chats with these customers
about their donut likes and dislikes. Fred also will “peek” into the kitchen to view the
equipment, or when he can, he will watch through the customer observation window so
he will see the whole process. When Ralph Friedgrin travels to Lost and Nowhere to
talk with his competitor’s customers, peek at the equipment, and watch through his
customer observation window, he is performing which planning technique?
a. competitor intelligence
b. environmental scanning
c. intellectual exercise
d. boundary spanning
100. If Ralph Friedgrin knew the average number of donuts that Smalltown adults bought
per week and the number of Smalltown adults, he could then use which planning tool?
a. environmental scanning
b. qualitative forecasting technique
c. quantitative forecasting technique
d. scenario projection technique
101. Ralph Friedgrin went to donut shops in Lost and Nowhere so he could talk with his
competitor’s customers, peak at their equipment, and evaluate their donut-making
process. These acts were __________.
a. legal
b. legal and ethical
c. ethical
d. neither legal nor ethical
(b; easy; p. 208)
102. Ralph Friedgrin contacted the owner of a NASCAR racing team to see if he could
spend time with its pit crew to study their teamwork. This is an example of:
a. qualitative forecasting
b. benchmarking
c. quantitative forecasting
d. scanning.
(b; easy; p. 210)
103. Fred recently went on a well-deserved vacation with his wife, Wilma. While at the
beachfront resort, Fred took many notes regarding the excellent service he received. On
the flight home, Fred reviewed his notes to see what lessons he could apply to his donut
shops. When Fred is out looking at the “best practices” of the other donut stores in
these towns, he is performing which of the following?
a. qualitative forecasting
b. benchmarking
c. environmental scanning
d. scenario planning
(b; easy; p. 210)
104. Ralph’s largest supplier recently approached him about implementing a Web-based
software that will utilize data about past sales trends promotions and other factors to
jointly calculate a demand forecast for particular products. Ralph’s supplier referred
to this system as a __________.
a. JIT system
b. CPFR system
c. RFID system
d. SCM system
Techniques for Allocating Resources
Donut Expansion (Scenario)
Ralph Friedgrin, owner of five donut shops in Smalltown, MD, located half the way between
Lost and Nowhere, recently began development of expansion plans based on analyses
conducted with his planning tools and techniques. His management team concluded that it
was time to expand his donut business to a whole new market niche. Fred has asked that an
estimated time of construction and estimated costs be provided. Fred approved construction of
two stores in Littleville and recently contracted with the engineering-manufacturing firm from
Nowhere, Planning Plus, Inc. (PPI), to build the stores. Fred has been informing PPI of what
he calls “best practices” that other donut stores in nearby towns are using and wants them
incorporated into these stores.
105. PPI developed a diagram similar to a flowchart to estimate the probable time required
to complete construction of the two stores. This flowchart-like diagram is known as
a. program evaluation and review technique
b. Gantt chart
c. linear programming
d. scheduling
106. Fred knew how much capacity it took to produce each type of donut with each type of
glaze and the profit margins for each type of donut with each type of glaze. If he wants
analyze the product mix that will maximize profits, then he should use which of the
following?
a. budgeting
b. break-even analysis
d. scheduling
107. Fred has planned the opening day activities and is going to be open for 24 hours. He
has planned who is to work which hours and who is to perform which duties during the
time open. Fred has also planned which type of donut is to be made at what time. What
Fred did in making these plans is know as which of the following?
a. Gantt chart
b. PERT
d. scheduling
(d; easy; p. 213)
Allocating Resources at Planning Plus, Inc. (Scenario)
Management from all levels of Planning Plus, Inc. (PPI) have been making decisions as to
how to best accomplish next year’s organizational plans, objectives, and goals. The
production department has been making numerical plans to allocate the number of employees,
man-hours per machine, and so on within the department. Accounting has been determining
the production quantity when there will be enough total revenue to just equal its total costs.
Purchasing has been establishing delivery dates that align with the need dates of the material
in the production department. Marketing has been planning the introduction of a new product.
What Marketing is using is essentially a bar graph with time on the horizontal axis and
activities to be scheduled on the other.
108. When the Production Department made numerical plans to allocate the number of
employees, man-hours per machine, and so on within the department, it was using
which of the following resource allocation techniques?
a. scheduling
c. break-even analysis
d. budgeting
109. When Purchasing establishes delivery dates that align with the need dates of the
material in the production department, Purchasing is using which of the following
resource allocation techniques?
a. scheduling
c. break-even analysis
d. budgeting
110. When Marketing is using what is essentially a bar graph with time on the horizontal
axis and activities to be scheduled on the other, it is using which of the following
resource allocation techniques?
a. PERT
b. load chart
c. Gantt chart
d. scheduling
111. When Accounting has determined the production quantity where there will be enough
total revenue to just equal its total costs, then Accounting is using which of the
following resource allocation techniques?
a. budgeting
c. load chart
d. scheduling
112. Top management has put together a chart that lists entire departments on the vertical
axis and time on the horizontal axis. This allows managers to plan and control capacity
utilization. Such a chart is known as a ___________.
a. Gantt chart
b. PERT
c. load chart
113. The sales and marketing department is planning to undertake a large departmental
reorganization. This project will require hundreds of individual activities, some of
which must be done simultaneously and some of which can’t begin until preceding
activities have been completed. How might managers schedule such a complex project?
a. Gantt chart
b. PERT network analysis
c. load chart
d. collaborative planning and forecasting
(b; moderate; pp. 214-215)
114. The marketing department is considering new techniques for allocating their limited advertising budget among various
product brands. What technique would be most appropriate?
a. scheduling
d. PERT network analysis
115. The logistics department is considering new techniques for selecting transportation
routes that minimize shipping costs. What technique would be most appropriate?
a. scheduling
d. PERT network analysis
(c; moderate; p. 217-218)
DEFINING ORGANIZATIONAL STRUCTURE
31. Organizational design is based on decisions about ____________.

a. work specialization and departmentalization
b. chain of command and span of control
c. centralization and decentralization
d. all of the above
32. Which statement accurately defines work specialization?

a. the degree to which tasks are divided into separate jobs
b. individual employees specialize in doing part of an activity rather than the entire
activity
c. jobs are ranked relative only to their worth or value to the businesses
d. a and b
33. On what basis are jobs grouped in order to accomplish organizational goals?
a. departmentalization
b. centralization
c. formalization
d. coordination
34. Sales responsibilities divided into the Southwest, Midwest, southern, northern, and
western regions would be an example of what type of departmentalization?
a. product
b. geographic
c. process
d. outcome
(b; easy; p. 236)
35. Grouping activities on the basis of customer flow is _____________.

a. functional departmentalization
b. product departmentalization
c. geographical departmentalization
d. process departmentalization
36. What kind of departmentalization would be in place in a government organization where

different public service responsibilities are divided into activities for employers,
children, and the disabled?
a. product
b. geographic
c. outcome
d. customer
37. Today’s competitive business environment has greatly increased the importance of what
type of departmentalization?
a. geographic
b. customer
c. product
d. process
38. Functional departmentalization groups jobs by ______________.

a. tasks they perform
b. territories they serve
c. products or services they manufacture or produce
d. type of customer they serve
39. Assigning designers, production workers, and salespeople to a common work group to
develop a new product is known as a ________________ team.
a. differentiated
b. product
c. cross-functional
d. weak
40. In describing the degree to which tasks in an organization are divided into separate jobs,
managers use the term ___________.
a. work specialization
b. departmentalization
c. chain of command
d. span of control
41. Departmentalization based on _______________ groups’ jobs based on the territory or

physical location.
a. functional
b. product
c. geographic
d. matrix
(c; easy; p. 236)
42. ______________ departmentalization is based on the product or customer flow through

the organization.
a. Product
b. Functional
c. Process
d. Organizational structure
43. ______________ departmentalization is used more in recent years to better monitor the
needs of customers and to respond to changes in those needs.
a. Needs-based
b. Functional
c. Process
d. Customer
44. The continuous line of authority that extends from the upper levels of management to the
lowest levels of the organization is ____________.
a. authorized line of responsibility
b. unity of command
c. responsibility factor
d. chain of command
45. ______________ refers to the rights inherent to a position that allows a manager to tell
subordinates what to do and expect them to do it.
a. Responsibility
b. Unity of command
c. Chain of command
d. Authority
46. ________________ is the obligation or expectation to perform a duty.

a. Responsibility
b. Unity of command
c. Chain of command
d. Span of control
47. The theory that a person should report to only one manager is called ____________.
b. unity of command
d. chain of command
48. Which one of Fayol’s 14 principles of management helps preserve the concept of a
continuous line of authority?
a. unity of demand
b. unity of command
c. demand structure
d. continuous demand
49. The concept that defines the number of subordinates that report to a manager and that
indirectly specifies the number of levels of management in an organization is called
_____________.
b. unity of command
d. span of control
50. In organizations, the trend in recent years has been toward _____________.
a. narrower span of control
b. increased chain of command
c. the organization’s structure being based on its financial position
d. wider span of control
51. All other things being equal, as the span of control grows wider or larger, organizational
design becomes more _____________.
a. bureaucratic
b. democratic
c. effective
d. efficient
52. ______________ is the number of subordinates that a manager manages and ultimately
determines the number of levels of managers in an organization.
a. Responsibility
b. Unity of command
c. Chain of command
d. Span of control
53. Trends in the past few years have centered on a ____________ span of control to reduce
costs and speed decision making.
a. narrower
b. wider
c. deeper
d. stable
54. The degree to which decision making is confined at a single point in an organization is
described as ____________.
a. unity of command
b. chain of command
c. span of management
d. centralization
55. In recent years, there has been a movement to make organizations more flexible and
responsive through _____________.
a. centralization
b. decentralization
c. alternative organizational structure
d. customer-based structure
56. The degree to which jobs are standardized and guided by rules and procedures is called
______________.
b. centralization
c. decentralization
d. formalization
57. In an effort to make organizations more flexible and responsive to competitive pressures,
firms have adopted more ____________ decision making.
a. centralized
b. decentralized
c. vertically integrated
d. stable
ORGANIZATIONAL DESIGN DECISIONS
58. A(n) ____________ organization is rigidly controlled and efficient.

a. organic
b. horizontal
c. learning
d. mechanistic
59. A(n) ____________ organization is able to change rapidly as needs require.

a. organic
b. horizontal
c. vertical
d. mechanistic
60. When managers standardize employee behavior through rules and procedures, the jobs
are becoming more _____________.
a. diversified
b. formalized
c. vertical
d. horizontal
61. In describing the relationship between structure and strategy, it can be said that
_____________ .
a. structure follows strategy
b. strategy follows structure
c. strategy and structure are always handled equally
d. strategy follows structure in smaller organizations
62. In linking strategy and structure, most strategic frameworks tend to focus on
______________.
a. the pursuit of meaningful and unique innovation
b. the pursuit of tightly controlled costs
c. minimizing risk and maximizing profit opportunities by copying market leaders
d. all of the above
63. As a type of technology, _____________, centers on large-batch production and requires

moderate levels of complexity and sophistication.
a. unit production
b. mass production
c. process production
d. service production
64. Organizations that work like efficient, well-oiled machines are described as
______________.
a. organic
b. mechanistic
c. rational
d. intuitive
65. Organizations that are highly flexible and adaptive are described as ______________.
a. organic
b. mechanistic
c. rational
d. intuitive
66. Structure is related to the size of the organization, such that larger organizations tend to
have more ____________.
a. specialization
c. centralization
d. all of the above
67. Structure is related to the size of the organization, such that larger organizations are
more _____________.
a. mechanistic
b. organic
c. structurally weak
d. decentralized
68. In Joan Woodward’s study of the relationship between technology and structure, the
structure that was the most technically complex was ______________.
a. unit production
b. mass production
c. process production
d. technological production
69. According to Woodward’s studies, what type of production works best with a
mechanistic structure?
a. unit
b. process
c. product
d. mass
70. In studies of the structure of an organization to uncertainty in the environment,
organizations that face higher uncertainty are more ____________.
a. organic
b. mechanistic
c. technologically pure
d. supportive of technological change
71. Global competition, accelerated product development by competitors, and increased

demands by customers for better service have encouraged organizations to become more
_____________.
a. organic
b. mechanistic
c. technologically pure
d. task oriented
72. Which of the following would likely be found in mechanistic organizations?

a. wide span of control
b. empowered employees
c. decentralized responsibility
d. standardized job specialties
73. In the early years of Apple Computers, its desire for highly proficient and creative
employees who operated with few work rules best exemplified what type of
organization?
a. bureaucratic
b. mechanistic
c. volatile
d. organic
74. Which type of environment is best suited for mechanistic organizations?

a. dynamic
b. manufacturing
c. service
d. stable
75. The appropriate structure for an organization is based on four contingency variables:
strategy, size, degree of environmental uncertainty, and _________________.
a. technology
b. history
c. leadership
d. intensity of competition
(a; easy; p. 241)
76. Joan Woodward study of the relationship between technology and structure is based
upon her study of small manufacturing firms in _________________.
a. the northeastern United States
b. the south of Wales
c. France
d. southern England
COMMON ORGANIZATIONAL DESIGNS
77. Traditional organizational designs tend to be more mechanistic, and include

_______________.
a. simple, functional, and corporate structures
b. simple, functional, and business unit structures
c. functional, strategic, and business unit structures
d. simple, functional, and divisional structures.
78. A small business with low departmentalization, wide spans of control, centralized
authority, and limited formalization can be said to possess a ________________
structure.
a. simple
b. functional
c. divisional
d. matrix
(a; easy; p. 244)
79. As the number of employees in an organization grows, structure tends to become more
______________.
a. specialized
b. informal
c. centralized
d. a and b
(a; easy; p. 244)
80. When an organization assigns specialists to groups according to the projects they are
working on, this is called ________________.
a. divisional structure
b. functional structure
c. product structure
d. matrix structure
81. A simple organizational structure is characterized by ______________.

a. high departmentalization
b. wide spans of control
c. decentralized authority
d. high levels of formalization
82. Divisional structure allows grouping of different groups of jobs that are related by
_______________.
a. the product produced
b. the service offered
c. the cost advantage within a niche market
d. a and b
83. Matrix structure mixes characteristics of functional departmentalization and

_______________.
a. product departmentalization
b. process departmentalization
c. a dual chain of command
d. a narrow span of control
(a; difficult; pp. 245-246)
84. Matrix structure violates a key element of organizational design called

___________________.
a. unity of command
b. chain of command
c. span of management
d. decentralization
(a; moderate; pp. 245-246)
85. A __________________ organization is a small core organization that outsources major

business functions such as manufacturing, allowing the firm to concentrate on its core
competencies.
a. network
b. virtual
c. modular
d. learning
86. A ______________ organization consists of a small core of full-time employees and

temporarily hires outside specialists to work on emergent opportunities.
a. network
b. virtual
c. modular
d. learning
87. A learning organization has developed its _______________.

a. educational department to keep employees trained
b. capacity to adapt and change
c. barriers to entry of its markets
d. a sustainable competitive advantage that is easy to maintain
88. A ________________ organization uses outside suppliers to provide product

components which are then assembled into final products.
a. network
b. virtual
c. modular
d. learning
89. A _____________ design is not limited to horizontal, vertical, or external boundary

imposed by a conventional structure.
a. learning organization’s
b. threatened organization’s
c. functional
d. boundary less organization’s
90. What type of organization assigns specialists from different functional departments to
work on one or more projects led by a project manager?
a. classical
b. contemporary
c. matrix
d. evolutionary
(c; easy; p. 246)
91. An online wine retailer that sells and ships hundreds of wines to customers all over the
world with a payroll of six employees, most likely has what kind of organizational
structure?
a. bureaucratic
b. simple
c. functional
d. divisional
92. What type of organizational structure is made up of autonomous, self-contained units?

a. bureaucratic
b. simple
c. functional
d. divisional
93. In what type of organizational structure is empowerment most crucial?

a. bureaucratic
b. simple
c. functional
d. team-based
(d; easy; p. 245)
94. The matrix approach violates what classical principle?

a. unity of command
b. decentralization
c. customer focus
d. linear lines of responsibility
95. The strength of a _____________ structure is based on results of managers, but it has a
weakness because duplication can occur easily within the organization
a. simple
b. functional
c. divisional
d. matrix
96. ____________ structure is an advanced version of the matrix organization, where

employees continuously work on assignments that are oriented to completion of a task.
a. Weighted
b. Functional
c. Conservative
d. Project
97. Some organizational theorists go so far as to say that an organization’s ability to

__________ may be the only sustainable source of competitive advantage.
a. learn
b. apply what they learn
c. change
d. a and b
98. According to the textbook, organizational learning can’t take place without
____________.
a. motivation
b. goals
c. information
d. structure
SCENARIO QUESTIONS
DEFINING ORGANIZATIONAL STRUCTURE
Eric the Redd (Scenario)
Eric Redd graduated from college and was hired by a corporation that manufactured parts for
the automotive industry. The employees on the assembly line seemed bored, and their
motivation was low. Eric’s employer decided to try to reorganize to increase productivity.
During his career, Eric will see his job change from an engineer to a more complex job
assignment.
99. The jobs of assembly-line employees are to be changed to allow more tasks to be done
by individual workers. This is a reduction in ______________.
c. chain of command
d. centralization
100. Eric majored in engineering and really enjoyed the work assignment. The reorganization
changed some of his work assignments to include working on a team with production
workers and marketing specialists designing the newest products the company will offer.
This could be described as a(n) ________________.
a. alternative work assignment
b. career degrading assignment
c. centralized work assignment
d. cross-functional team assignment
101. Eric is offered a chance to help direct the efforts of some employees assigned to his
work group. This is a chance of Eric to experience _______________.
a. functional structure
b. divisional structure
c. responsibility
d. authority
102. Eric sees this new assignment as an obligation or expectation for him to perform at a
new level of _______________.
a. functional structure
b. divisional structure
c. responsibility
d. authority
103. Eric’s job continues to change over the years, and eventually, his department evolves to
the point that he is in advanced structure where he continually works on projects. This
structure is known as ___________ structure.
a. simple
b. functional
c. divisional
d. project
(d; easy; p. 247)
General Hospital (Scenario)
Michelle is a registered nurse in charge of a new unit at her hospital. She would like to have a
more laid-back approach in dealing with her new staff, but the hospital demands that there be
strict hierarchical levels and that all decisions must be signed off by Michelle. Sometimes this
drives Michelle nuts—the constant filling out of forms, and so forth. She also feels that the
numerous levels of hierarchy are unnecessary and place barriers between herself and her staff.
She isn’t sure why things have to be so “organized” and is thinking about speaking with her boss to
attempt changing her unit to have more flexibility and fewer rules.
104. Michelle is very concerned about the formal framework by which job tasks within her
nursing unit are divided, grouped, and coordinated within her unit. This framework is
known as the unit’s ______________.
a. formal organizational chart
b. organizational structure
c. staff
d. span of control
105. Michelle’s unit specializes in cardiology cases. Dividing work units up in such a manner
is most representative of _____________ departmentalization.
a. functional
b. product
c. process
d. customer
106. Michelle is required to sign off on all decisions, suggesting the hospital has what kind of
decision-making authority?
a. centralized
b. formal
c. autocratic
d. strict
107. Michelle has noticed that everyone is very concerned about the line of authority within
the organization. The line of authority within the organization is also called a(n)
______________.
a. responsibility
b. chain of command
c. span of control
d. organizational strategy
(b; easy; p. 237)
108. Michelle was asked to represent her cardiac unit as part of a Total Quality
Management (TQM) initiative that is aimed at improving the overall quality of care at
the hospital. Other departments, such as Cardiology and ER, also have representatives
on this team. The TQM team exemplifies ________________.
a. project management
b. a cross functional team
c. process integration
d. customer departmentalization
(b; easy; p. 237)
121. The original entrepreneurial venture consisted only of Mr. Abdul and a few employees.
It was an informal organization, and everyone reported to Mr. Abdul. This is best
described as a ________ structure.
a. simple
b. functional
c. divisional
d. matrix
(a; easy; p. 244)
122. A sharp rise in oil prices helped PAOC’s business expand. Abdul concluded that it was
impractical and inefficient for all decisions to continue flowing through his office. He
granted his key subordinates the authority and responsibility to manage others within
their areas of specialty. This organizational structure is best described as a
____________ organizational structure.
a. simple
b. functional
c. divisional
d. matrix
123. Paul Abdul decided to purchase an oil drilling supply company, located in a new
country. The purchase of this company was classified as a related diversification, but
distance and the new product line suggested that this newly purchased organization
continue to be operated as a separate company. In beginning a new phase in the history
of Paul Abdul Oil Corporation, a _________ structure should be implemented to allow
the company to continue to grow.
a. simple
b. functional
c. divisional
d. matrix
124. As PAOC continues to grow, a highly trained group of managers and analysts has
developed at corporate headquarters. This group is highly adaptive in its structure.
Members of this group do not have standardized jobs, but are empowered to handle
diverse job activities and problems. This group of employees is said to have a(n)
___________ structure.
a. simple
b. divisional
c. functional
d. organic
125. To deal with the workload in an effective manner, PAOC’s executive management
group assigns specialists from the different functional departments to work on one or
more work groups that are led by project managers. This popular contemporary design
is called a ___________ structure.
a. matrix
b. divisional
c. functional
d. organic
(a; moderate; P. 246)
126. Mr. Abdul realizes that his company is taking on a life of its own and he wants to allow
people from all levels to work together in teams. This view grows to include employees
working actively with external agencies. This organizational design does not have a
predefined structure and is referred to as a (n) _________.
a. learning organization
b. threatened organization
c. functional structure
d. boundaryless organization
(d; difficult; P. 247)
127. Twenty years after founding PAOC, Abdul decides he is approaching retirement. He
wants PAOC to develop the capacity to adapt itself and change because each member
will take an active role in identifying and resolving work-related issues. Abdul wants
the firm to become a ______________.
a. learning organization
b. threatened organization
c. functional structure
d. boundaryless organization
(a; moderate; pp. 248-249)
128. Several years after the retirement of Mr. Abdul, management at PAOC decided to sell
off its oil exploration and drilling supply holdings, and instead focus on the more
profitable distribution end of the business. In conjunction with this decision,
management decided to outsource most of its noncore functions, such as accounting,
payroll, and human resources. These moves are consistent with what type of
contemporary organizational design?
a. a virtual organization
b. a network organization
c. a modular organization
d. a matrix organization
School of Distance Education
UNIVERSITY OF CALICUT
SCHOOL OF DISTANCE EDUCATION
BBA
(2011 Admission Onwards)
V Semester
Core Course
OPERATIONS MANAGEMENT
QUESTION BANK
1. ………..refers to the transformation of the state of input in to output.

a)Transportation. c)Inspection
b)Alteration. d)all of these
2. …………refers to preserving goods in a protected environment.

a)Alteration c) Storage
b)Inspection d)Bargaining
3. ……………refers to the verification of and confirmation towards the

requirements of an entity.
a)Inspection. c)Alteration.
b)Pricing. d)None of these.
4. …………….is the management of all activities directly related to the

production of goods and services
a) Productionmanagement c)Employee development
b)Finance control d)all of these
5. Which of the following statement is not true in the case of goods?

a)Tangibility. c)Physical shape
b)Can be stored d)Intangibility.
Operations Management 1
6. Which of the following is not an objective of operations management?

a)Customer satisfaction c)Timeliness
b)Profitability d)Employee punishment
7. Which of the following is not a part of scientific management principles?

a)Replacement of rule of thumb
b)Scientific selection of employees
c)Supervise each worker in detail
d)Coercion
8. All of the following are differences between manufacturing and service

operations EXCEPT
a)Quality is more easily measured in service operations.
b)Productivity is easier to measure in manufacturing operations
c)Contact with customers is more prevalent with persons working in
service operations.
d)Accumulation or decrease in inventory of finished products is more
applicable to manufacturing operations.
9. ……………is measure of the quantity of output per unit of input.

a)Productivity c)Sociability
b)Marketability d)None of these
10. ……………………is the sum all the observations and divided by the total
number of observations?
a)median c)Mean
b) Mode d)None of these
11. Lillian and Frank Gilbreth are responsible for principles of

a)Sociotechnical systems c)Motion study
b)Zeroinventory d)Interchangeable parts
12. ………………… is the process of randomly inspecting a sample of goods and

deciding whether to accept the entire lot based on the results
a)Statistical process control. c)(a) and (b)
b)Acceptance sampling d)None of these
13. ……………is a system that is used to maintain a desired level of quality in a

product or service.
a)Economic ordering quantity c)Knowledge management
b)Quality control d)Manpower planning
14. Operations management is applicable

a)Mostly to the service sector
b)Mostly to the manufacturing sector
c) to manufacturing and service sectors
d)To services exclusively
15. The person most responsible for popularizing interchangeable parts in

manufacturing was
a) Eli Whitney c) Sergio Farmerson
b)Whitney Houston d)Lillian Gilbreth
16. The Father of Scientific Management is

a)Frank Gilbreth c) W. Edwards Deming
b) Frederick W. Taylor d) Walther Shewhart
17. Walter Shewhart is listed among the most important people of POM
because of his contributions to
a)assembly line production
b)Measuring productivity in the service sector
c)Statistical quality control
d) Just-in-Time inventory methods
18. Henry Ford is noted for his contributions to

a)Quality control c)Scientific management
b)Assembly line operations d)Standardization of parts
19. Which of the following is not an objective of operation management?

a)To improve product quality c)Material cost control
b)To reduce cost of production d)Trading on equity
20. Hawthorne studies were related with……..

a)Scientific management c)Marketing management
b)Human relations movement d)None of these
21. Moving of materials from the store room to the machine and from one
machine to the next machine during the process of manufacture is
called…………………
a)VED analysis c)Material handling
b)ABC Analysis d)None of these
22. ………………………..is the term used to describe the set of statistical tools
used by quality professionals for the purpose of quality control
a).accounting standards c). population study
b). statistical quality control d). none of these
23.……………. is the art of applying tests, preferably by the aid of measuring

appliances to observe whether a given item or product is within the
specified limits of variability or not.
a)Inspection c)Leading
b)Planning d)None of these
24. Which of the following is TRUE about business strategies?

a)All firms within an industry will adopt the same strategy.
b)Well defined missions make strategic development much easier.
c)Strategies are formulated independently of SWOT analysis.
d) An organization should stick with its strategy for the life of the business.
25………… is the process of selection of path, which each part of the product
will follow
a)Routing. c)Follow-up.
b)Scheduling d)Dispatching
26………….isthe fixation of time and date for each operation as well as it

determines the sequence of operations to be followed.
a)Dispatching c)Routing.
b)Scheduling. d)all of these.
27. ……………. is the process of verification or correction in the quality of the

product when the deviations in the quality are found to be more than
expected.
a) Policies c)Quantity measurement
b)Quality control d)None of these
28. Which of the following is true? The impact of strategies on the general
direction and basic character of a company is
a)Long range c)Minimal
b)Short ranged d)Medium range
29. Which of the following is true?

a)Corporate strategy is shaped by functional strategies
b)Corporate mission is shaped by corporate strategy
c)Functional strategies are shaped by corporate strategy
d)External conditions are shaped by corporate mission
30. The fundamental purpose of an organization’s mission statement is to

a)Define the organization’s purpose in the society
b)Define the operational structure of the organization
c)Generate good public relations for the organization
d)Define the functional areas required by the organization
31. Which of the following is not a key way in which business organizations
compete with one another?
a)Production cost c) Flexibility
b) Product duplication d)Quality
32. …………………….. involves determination of the progress of work, removing
bottlenecks in the flow of work and ensuring that the productive operations
are taking place in accordance with the plans
a)Follow up c)Time study
b)Time management d)Time booking
33…………… is the process of setting of productive activities in motion through

release of orders and instructions, in accordance with previously planned
timings.
a)Time study c)Dispatching
b)Follow up d)None of these
34. ………………. is a time-table of operations specifying the time and date

when each operation is to be started and completed.
a)Time study c)Loading
b)Schedule d)None of these
35. ………………. Involves the fixation of path through which work will flow for
manufacturing of goods.
a)Scheduling c)Time study
b)Routing d)None of these
36. ………. is the process of reporting daily progress of work in each shop in a
prescribed proforma and to investigate the causes of deviations from the
planned performance and to take necessary actions
a)Follow up c)Time study
b)Motion study d)all of these
37. Which of the following is an objective of quality control?

a)To produce qualitative items
b) To reduce companies cost through reduction of losses due to defects.
c) To produce optimal quality at reduced price.
d)all of these
38……………….. is that aspect of operation management function, which is

concerned with the acquisition, control, and use of materials needed and flow
of goods and services connected with the production process.
a)Materials management c) Mass production
b) Division of labour d) Craft production
39. If inputs decrease while output remains constant, what will happen to
productivity?
a.) It will increase c) It will remain the same
b) It will decrease d) It is impossible to tell
40…………….is the art and science of ensuring that all which occurs is in
accordance with the rules established and the instructions issued in the case
of operations.
a)Operational attack c)Operational summary
b)operational control d)None of these
41……………………… is concerned with deciding in advance what is to be

produced, when to be produced, where to be produced and how to be produced
a)Operational planning c)(a) and (b).
b)Operational control. d)None of these
42. The differences between the actual demand for a period and the demand
forecast for that period is called:
a)Forecast error c) Decision process.
b)Weighted arithmetic mean d) Mean square error
Operations Management
5
43. All of the following decisions fall within the scope of operations
management EXCEPT for
a) Financial analysis c) Location of facilities
b) Design of products and processes d)Quality management
44. ………………can be defined as the measurements that detect the onset of a

degradation mechanism, thereby allowing causal stressors to be eliminated or
controlled prior to any significant deterioration in the component physical
state
a)Break down maintenance c)Past maintenance
b)Predictive maintenance d)None of these
45. In the case of ………………..type of maintenance,no actions or efforts are

taken to maintain the equipment as the designer originally intended to ensure
design life is reached.
a)Break down maintenance c)(a) and (b)
b)Preventive maintenance d)None of these.
46. ………………is defined as the combination of tasks that are required to

keep a machine or part of a machine in the desirable condition.
a)Substitution c )reduction
b)Maintenance d)Induction
47. …………. involves systematically recording, analysing and synthesizing the

times required to perform a motion.
a)Method study c)Time study
b)Motion study d) all of these
48. …………….refers to the manufacturing of large volume of a single or a very

few varieties of products with a standard set of processes
a)Continuous production c)Project production
b)Intermittent production d)None of these
49. ………………. is the process of predicting and defining the long-term and
the short-term capacity needs of an organisation and determining how those
needs will be satisfied.
a)Capacity planning c)Staff fixation
b)Capacity control d)instrumentalisation
50………………is a measure the actual level of output for a process or activity

over a period of time.
a)Actual capacity c)Maximum capacity
b)Design capacity d)None of these
51. Production facilities are arranged as per the sequence of production

operations from the first operations to the finished product. This method is
called…………..
a)Process production c)Both of these
b)Job production d)None of these
52. Frederick Winslow Taylor is called;

a)Father of operations research
b)Father of marketing management
c)Father of financial management
d)Father of scientific management
53. In the case of…………………. the products are produced as per the
specifications of the customers within prefixed time and cost.
a)Mass production c)Both of these
b)Job production d)None of these
54………………..is the system in whichitems are processed in lots and a new lot
is undertaken for production only when the production on all items of a lot is
complete.
a)Job production c)Mass production
b)Batch production d)None of these
55. …………is the capacity that specifies a theoretical upper limit above the
usual rate of routine operations.
a)Maximum capacity c)Actual capacity
b)Effective capacity d)None of these.
56. ……………………………is the highest reasonable output rate which can be

achieved with the current product specifications, product mix, work force,
plant and equipment.
a)Publicity c)(a) and (b)
b)Capacity d)None of these
57. In ………………, machines and other supporting services are located

according to the processing sequence of the product
a)Project lay out c)Combination lay out
b)Product lay out d)None of these
58. The lay out in which production operation is performed in a fixed position
is called………….
a)Project lay out c)(a) and(b)
b)Product lay out d)None of these
59………………. decision is the systematic process of determining a geographic

site for a firm’s operations.
a)Plant location c)Product lay out
b)Plant layout d ) none of these
60. The layout in which all the equipment’sperforming similar tasks are
grouped together is called…………………..
a.)product lay out c)Combination lay out
b)Process lay out d)None of these
7
61. …………….. is the configuration of departments, work centres and

equipment in the conversion process.
a)Plant lay out c)(a) and (b)
b)Plant locations d)None of these.
62. Which of the following affect the choice of plant location decision?
a) Proximity to markets c) (a) and (b)
b) Supply of materials d)none of these
63. The founder of the scientific management movement was:

a) Frank Gilbreth c) Frederick W.Taylor
b) Walter Shewhart d) Ford Harris
64. The Hawthorne Studies stimulated the development of:

a)The scientific management movement
b)The human relations movement
c)The socio-technical movement
d)The lean production movement.
65. Walter Shewhart developed:

a). the economic order quantity model
b)The human factors engineering field
c)Linear programming models
d)Statistical quality control techniques
66. The moving assembly line was developed by:

a). Elton Mayo c) Clark Gable
b) Frederick W. Taylor d ) Henry Ford
67……………is used to monitor characteristics that can be measured and have

a continuum of values such as height, weight, volume etc.
a) Control chart of attributes c) (a) and (b)
b) Control chart for variables d) None of these
68……………..is used to monitor characteristics that have discrete values and

can be counted
a) Control chart for variables. c)(a) and (b)
b)Control chart for attributes d) None of these
69. Which of the following is not a control chart for variables?

a)X Chart c) P Chart
b)R Chart d) None of these
70. Which of the following is not a control chart for attributes?

a)P chart c)X chart
b)C chart d) None of these
71.ISO 9000 is a………………….

a) International standard
b)National standard
c) Local standard
d)None of these
72. In management literature TQM stands for

a) Total quality management c)Total quantity maintenance
b) Total quantity management d) None of these
73………………..is a group of workers from the same area who usually meet to
discuss their problems, investigate, recommend solutions and to corrective
actions
a) Quality problems c)Quantify value
b) Quality circle d) None of these
74.Which of the following is not an objective of quality circle?

a)To improve quality c)Trading on equity
b)To improve productivity d)None of these
75. Which of the following is not a principles’ of TQM?

a)Customer focus c)Team approach
b)Continuous improvement d)Black marketing
76………………is the systematic recording and critical examination of existing

and the proposed way of doing work as a means of developing effective
methods.
a)Method study c)Time booking
b)Time study d)None of these
77. The costs of all activities incurred to prevent poor quality in products and
services.
a)Prevention cost c)Failure cost
b)Appraisal cost d)None of the above
78. This cost is the cost associated with measuring evaluating, or auditing
products or services to assure conformance to quality standards and
performance requirements
b)Appraisal cost d)None of the above
79. This cost is the costs resulting from products or services not conforming to
requirements or user needs.
b ) appraisal cost d)None of the above
80.…………… is a graphical tool to analyse and time the small, physical

actions of workers and machine in performing a routine, repetitive, worker-
machine task so that idle time can be identified
a) Activity chart c) (a) and (b)

b) Metrics d) None of these
81)…………is the level of output volume for which total cost equals total
revenues
a) Profit c) sales
b)Breakeven point d) all of these
82)……………. is a process of representing each item by a number, the digit of

which indicates the group, the sub-group, the type and the dimension of the
item.
a) Codification c) Duplication
b) Classification d) None of these
83)…………………….is a Manufacturing systems utilizing computer software

programs that control the actual machine on the shop floor.
a) complex manufacturing
b) Computer aided manufacturing
c) ( a )and (b)
d) None of these
84)……………is the Japanese concept of continuous improvement in all things.

a)Kaizen c) (a) and (b)
b)Marketing myopia d)None of these
85)………………..is the process of creating and using mathematical

representations of management problems and organizations to predict
outcomes of proposed courses of action
a) Mathematical modelling c) Service queries
b) Physical modelling d).none of these
86)…………………………is the degree to which the design specifications for a

product or service are appropriate to its function and use, and the degree to
which a product or service conforms to its design specifications
a) Quantity c) Price
b) Quality d) Cost
87)…………………is a process used to determine the maintenance requirements

of any physical asset in its operating context?
a)Reliability Centered Maintenance
b) Preventive cost
c) Unavoidable cost
d) None of these
88)…………………………..is the application or techniques designed to establish

the time for a qualified worker to carry out a specified job at a defined level or
performance
a) Work measurement c) Work atmosphere
b) Work delay d) None of these
89)………………………… deals with decision-making related to production

processes so that the resulting goods or services are produced according to
specifications, in the amount and by the schedule demanded and out of
minimum cost.
a) Production management c) Financemanagement
b) Marketing management d) Capital structure
90)………….is the part of an organization that produces the organization’s

physical goods and services.
a) Operating system c) Financial system
b)Marketing system d) all of these
91. Which of the following records quantity of material only

a) Bin card c) Bill of materials
b) Stores ledger d) None of these
92. Which of the following is used for issuing materials to different production
departments
a)Material requisition c) Purchase order
b) Purchase requisition d) None of these
93. Continuous stock taking is a part of

a)Annual stock taking c)ABC analysis
b) Perpetual inventory d) None of these
94. Stores department issues materials to the production department on the

basis of
a) Goodsreceived note c) Stores requisition
b) Purchase requisition d) Material transfer note
95. Recording of time spent by a worker on different job is called

a)Time keeping c)Job card keeping
b)Time booking d) Job order costing
96. The difference between the actual cost and standard cost is called
a)Profit b)Loss c)Sales d)Variance
97. Qualitycircle is a group of

a)Operatives c) Management trainees
b) Supervisors d) Top management
98. Safety stock is related to

a) Inventory control c) Employeecontrol
b) Quality control d)Strategic control
99. ..............is undertaken to find out the one best way of doing the thing
a) Job Analysis c) Job enrichment
b) Merit rating d)None
100. The book “Creative Experience was written by ....................

a) Henry Fayol c) Mary parker Follet
b) F.W. Taylor d) None of these
101. The concept of Job enrichment is a contribution by........

a) Frederick Herzberg c) C.K. Prahlad
b) F.W.Taylor d) Peter F. Drucker
102…………… is the process of comparing actual performance with the

standard and taking corrective Action.
a) Controlling c) Planning
(b) Management d)Co-ordination
103…………………aims at visualizing and identifying deviation before they

actually occur.
a) Predictive control c) Operational Control
b) Concurrent control d)All of these
104.In ---------type of organization, workers receive instructions from various

specialists.
a) Line c) Informal
b) Functional d) None
105.……………………..is an organized creative approach which has its

objective, the efficient identification of unnecessary cost—cost which provides
neither quality nor use nor life nor appearance nor customer features.
a) Money chain c) Supply chain
b) Value analysis d) None of these
106.………………..are those materials and equipment’s which have no

immediate use but have accumulated due to faulty planning, forecasting and
purchasing.
a) Surplus items c) (a) and (b)
b) Deficit items d)None of these
107…………………………………. is a recording technique for micro motionstudy.

a)Simultaneous Motion Cycle chart
b) Simultaneous Master Cycle Chart
c) (a) and (b)
d) None of these
108……………….is a priority rule that gives top priority to the waiting job
whose operation time at a work center is shortest.
a) Material shortage c) (a) and (b)
b)Shortest-processing-time rule d) None of these
109…………………….is the process of testing the feasibility of master

production schedules in terms of capacity.
a)Rough-cut capacity planning

b) Manpower planning
c)Financial planning
d) all of these
110.………………….involves theactivities relating to procuring materials and

supplies consumed during production
a) Selling c) Purchasing
b) Pricing d) Distributing
111.The risk or probability of incorrectly concluding that the conversion

process is out of control.
a) Type 1 error c) (a) and (b)
b) Type 2 errors d) None of these
112.Operation process chart is also called as…………………………..

a) Online chart c) (a) and (b)
b) Outline process chart d) None of these
113. It is a chart where activities of more than subject (worker or equipment)

are each recorded on a common time scale to show their inter-relationship.
a) Single activity chart c) Charting
b)Multiple activity charts d) None of these
114)……….…is an assigning job to work centres without considering the work

centre’s capacity
a)Infinite loading c) (a) and (b)
b) Finite loading d) None of these
115………………………is the analysis and comparisons of items to group them

into families with similar characteristics
a) Mass technology c) Independent technology
b) Group Technology d) None of these
116……………………is one that is capable of producing a variety of products (or

parts) with virtually no time lost for changeovers form one product to the next.
a)A flexible automated system c) (a) and(b)
b) A fixed automated system d) None of these
117)Fixed position layout is also called as…………………. of layout

a)Project type c) (a) and(b)
b) Product type d) None of these
118)is an information management system that connects all departments and

disciplines within a company making them an integrated unit.
a)Enterprise asset management
b)Entrepreneurship development
c) Manpower planning
d) None of these
13
119)………………………is a Computer software programs that allow a designer

to carry out geometric transformations rapidly.
a)Tally c) (a) and(b)
b)Computer-aided design d) None of these
120……………..is the arrangement of a facility so that equipment used to make

similar parts or families of parts is grouped together.
a)) Cellular layout c) (a) and (b)
b) Product lay out d) None of these
121……………is a graphical and algebraic representation of the relationships

among volume of output, cost, and revenues.
a) Break mechanism c) Fixed analysis
b)Break-Even Analysis d) None of these
122……………...is a technology concerned with the application of mechanical,

electronic, and computer based systems to operate and control production
a) Automation c) Motivation
b) Manpower d) Supervision
123.Specialization of labour in manufacturing is associated with

a)Henry fayol c)Charles Babbage
b)Eli Whitney & others d)Frederick W.Taylor
124.Interchangeable parts, cost accounting is associated with

a) Adam Smith c) Charles Babbage
b) Eli Whitney & others d) Frederick W.Taylor
125.Division of labour by skill; assignment of jobs by Skill; basics of time

study are contributed by
126.Scientific management, time study and work study are associated with
127.Motion of study of jobs in production management is contributed by

a)Frank B. Gilbreth c)F.W. Harris
b)Henry L. Gantt d)Elton Mayo
128.Scheduling techniques for employees, machines Jobs in manufacturing

are associated with
a) Frank B. Gilbreth c) F.W. Harris
b) Henry L. Gantt d) Elton Mayo
129.Economic lot sizes for inventory control is developed by

130.Human relations; the Hawthorne studies is developed by

131.Statistical inference applied to product quality: quality control charts are

contributed by
a)W.A. Shewart c)P.M.Blacker& others
b)H.F.Dodge&H.G.Roming d)John Mauchlly and J.P.Eckert
132.Inspection sampling plans is developed by

a) W.A. Shewart c) P.M.Blacker& others
b) H.F.Dodge&H.G.Roming d) John Mauchlly and J.P.Eckert
133.Operations research applications in world war II is contributed by

134.Digital Computer is associated with

135. Which of the following is not an input in production system

a)Men b)Material c)Money d)Competition
136. Which of the following is a part of production system?

a) Input c) Transformation process
b) Output d)all of these
137. Operations management is part of

a) Management science c) (a) and (b)
b) Natural science d) None of these
138. Resources are in the form of…………

a) Human b) Material c) Capital d) all of these
139. Which one of the following is not a part of production planning and
control?
a)Follow-up c)Routing
b) Financial leverage d)Scheduling
140. Which one of the following is not an objective of materials management?

a) To minimise material cost.
b)To purchase, receive, transport and store materials efficiently.
c) To reduce material costs through simplification, standardisation
d) To fix cash dividend
141. Which one of the following is an objective of maintenance management?

a) To reduce breakdown of machineries
b) To keep the machines and other facilities in a good condition.
c) To keep the plant in good working condition

d)all of these
142. Operation management department has interaction with

a) Finance department c) (a) and (b)
b) Marketing department d) None of these
143. Which of the following factors affect the choice of manufacturing process?
a) Product characteristics c) Availability of capital
b)Requirements of customers d) all of these
144. Which of the following is a production system?

a) Continuous System c) Project systems
b) Intermittent System d) all of these
145. Which of the following is a characteristic of intermittent production

system?
a) The flow of production is intermittent.
b) The volume of production is generally small.
c)A wide variety of products are produced.
d) all of these
146. Which of the following is incorrect in the case of job production?

a) More variety of products is manufactured as per customer’s
requirements.
b) Volume of production is large.
c) Highly skilled employees are required who can take up each job as a
challenge.
d) Detailed planning is essential for sequencing the requirements of each
product.
147. Which of the following is an advantage of job production?

a) It tries to satisfy the unique requirements of customers.
b)Employees will become more skilled,
c) Full potential of employees can be utilised.
d)all of these
148. Which of the following is a limitation of job production system?

a) Higher cost due to frequent set up changes.
b) Higher level of inventory at all levels and it results in higher inventory
cost.
c) Production planning is complicated.
d)all of these
149. Which of the following is a part of product life cycle

a) Introduction phase c) Saturation phase
b) Growth phase d) all of these
150)…………….is the process of careful step by step of dismantling of existing

product in order to understand its unique underlying concepts
a) Reverse engineering c) (a) and (b)
b) Civil engineering d) None of these
151……………refers to the development of the concept or idea of a product in

terms of specifications which are required for transforming the idea in to
product
a) Product design c) (a) and (b)
b) Product development d) None of these
152………………….refers to the process of creating new products or modifying

the existing ones within a predetermined time frame and cost price
a) Product design c) Market development
b) Product development d) None of these
153. Which of the following technique is employed for measuring work

a) Time study
b) Work sampling
c) Predetermined motion time studies
d)all of these
154…………………is the process of determining which job to start first and in

what order other jobs should be processed on the machine or in work centre
a) Job sequencing c) Batch production
b) Priority rules d)None of these
155. Which of the following factors affect capacity planning?

a) Type of product c) Skill level of workers
b) Type of process d) all of these
156. Which of the following is an objective of scheduling?

a)meet due dates
b) Minimise lead time
c) Minimise setup time and set up cost
d)all of these
157……………….is a time table for performing activities utilizing resources or

allocating activities
a) Scheduling c) Reporting
b) Engineering d) Communication
158……………………..starts from some data in the future and schedules the

required operations in reverse sequence
a)Scheduling c)Forward scheduling
b)Backward scheduling d)all of these
17
159.In this sampling plan, the inspection results of two sample sizes are used
to decide whether to accept or reject the complete lot.
a)Single sampling plan c) Questionnaire
b)Double sampling plan d)Census investigation
160. Which of the following is a part of cost of quality?

b)Appraisal cost d)all of these
161. Which of the following is an objective of quality assurance?

a) To improve quality
b) To reduce cost
c) to increase productivity
d)all of these
162. Which of the following is material handling equipment?

a)Hand truck c)Conveyors
b)Pulley blocks d)all of these
163. Which of the following is a way of codification?

a)Numerical code c)alpha-numeric code
b)Mnemonic code d)all of these
164.The process of buying large quantities of items when its price is low so
that tentative profits can be obtained by selling them at higher prices is
called……………..
a)Speculative purchasing c)Tender purchasing
b)Group purchasing d)None of these
165. Which of the following is a function of purchasing department?

a) Receive purchase requisition
b) Supplier selection
c) Order placement
d) all of these
166……………………….is the quantity that should be carried by the company

so that production is not affected before the next deliver arrives.
a)Minimum stock level c) Re order level
b) Maximum stock level d) all of these
167.VED Analysis is related with

a) Materials c) Labour
b) Spare parts d) Overheads
168. Which of the following cost is associated with inventories?

a) Carrying cost c) Over stocking cost
b) Ordering cost d) all of these
169. Which of the following factor affects the choice of the plant location
selection decision?
a)Capital requirement. c)Climate conditions
b) Government policy d)all of these
170.Locating the plant nearer to the market is preferred if:
a) The products are subject to spoilage.
b)After sales services are promptly required very often.
c) (a) and (b)
d) None of these
171.Which of the following is theobjective of plant layout
a) Streamline the flow of materials through the plant.
b) Facilitate the manufacturing process.
c) Minimise materials handling cost.
d) all of these
172.Industrial buildings may be grouped under
a)Single-storey buildings, c) (a) and (b)
b) Multi-storey buildings d) None of these
173. Which of the following is not an advantage of single story building?
a) There is a greater flexibility in layout.
b)Expansion is easily ensured by the removal of walls.
c) low cost of transportation and material handling charges
d)More land is required for building construction
174. Which of the following is not a limitation of multi-story building?

a) Materials handling becomes very complicated.
b) A lot of floor space is wasted on elevators, stairways and fire escapes.
c) Natural lighting is poor
d) Less land is required
175. Which of the following is not a quality of good plant layout?

a) To reduce material handling cost
b) To provide enough production facility
c) To reduce labour efficiency
d) To provide ease of supervision
176.Which of the following is not anobjective of good plant layout?

a) To improve productivity
b) To provide safety to employees
c)Toincrease the number of accidents
d)to provide easy supervision
177. Which of the following is not an objective of MRP?

a) Reduction in inventory cost
b) Meeting delivery schedule
c) Improve the performance of production
d)To decrease production efficiency
178.Which of the following is not an Objective of material handling?

a) To reduce material handling cost
b) To increase production life cycle
c) Better control of the flow of material
d) To ensure safety in the movement of goods
179. Which of the following is not aRule for material handling?

a) Make handling distances as short as possible
b) Use right method and proper material handling
c)Promote wasteful material handling methods
d) Use mechanical equipment’s wherever it is useful
180.Which of the following is a Rule for material handling?

a) Make handling distances as short as possible
b) Use right method and proper material handling
c) Eliminate wasteful material handling methods
d) all of these
181.Which of the following is the objective of motion study?

a) To eliminate all non-productive and ineffective motions.
b) To develop more effective and productive patterns of movements
c) (a) and (b)
d) None
182. Which of the following is not atechnique of work measurement

a)Time study
b)Amalgamation
c) Work sampling
d). Predetermined motion and time study
183. Which of the following is a ProductionPlanning?

a) Factory Planning, c) Operation Planning
b) Process Planning d) all of these
184.In ……………………. the operations are located and the sequence of these
operations in the production is determined
b) Process Planning d) None of these
185.………………..is concerned with planning the details of the methods

required to perform each operation
b) Process Planning d) None of these
186.………… is the art and science of ensuring that all which occurs is in
accordance with the rules established and the instructions issued
a) Operational plan c) Operational mission
b) Operational policy d) Operational control
187. Dispatch provides official authorization for

a)Movement of materials to different work stations,
b) Movement of tools and fixtures necessary for each operation,
c)beginning of work on each operation,
d) all of these
188. Which of the following is not an objective of quality circle?

a) To improve quality c)Employee retrenchment
b) To improve productivity d). none of these
189. Which of the following is not a principles’ of TQM?

a)Customer focus c)Team approach
b) Continuous improvement d) Producer focus
190. Which one of the following is not an objective of materials management?

a) To maximise material cost.
b) To purchase, receive, transport and store materials efficiently.
c) To reduce material costs through simplification, standardisation
d) To minimise material cost
191. Which one of the following is not an objective of maintenance

management?
a) To reduce breakdown of machineries
b) To keep the machines and other facilities in a bad condition.
c) To keep the plant in good working condition
d) all of these
192. Which of the following is not a characteristic of intermittent production

system?
a) The flow of production is intermittent.
b) The volume of production is generally small.
c) A single product is manufactured in bulk.
d) None of these
193. Which of the following is an input in manufacturing system?

a)capital c) Human resource
b)Material d)all of these
194. Which of the following is not a part of production system?

a) Input c) Transformation process
b) Output d) Politics
195.Which of the following is not a part of product life cyclestage?

a)Introduction phase
b)Competition phase
c) Maturity and saturation phase
d) None of these
196. Which of the following is not an objective of quality assurance?

a) To reduce the quality c) To increase productivity
b) To reduce cost d) all of these
197. Which of the following is not a function of purchasing department?

a) Receive purchase requisition c) Order placement
b) Supplier selection d) Employee selection
198. Which of the following is not the objective of plant layout?

a) Streamline the flow of materials through the plant.
b) Facilitate the manufacturing process.
c) Enhance materials handling cost.
d) None of these
199. Which of the following is not an objective of operation management?

a) To reduce product quality
b)To reduce cost of production
c)Material cost control
d) None of these
200.Which of the following is not an objective of quality control?

a) To produce qualitative items
b) To reduce companies cost through reduction of losses due to defects.
c) Toenhance quality variation among same product category.
d)None of these
ANSWER KEY
1) b 2)c 3)a 4)a 5)d 6)d 7)d
8)a 9)a 10)c 11)c 12)b 13)b 14)c
15)a 16)b 17)c 18)b 19)d 20)b 21)c
22)b 23)a 24)b 25)a 26)b 27)b 28)a
29)c 30)a 31)b 32)a 33)c 34)b 35)b
36)a 37)d 38)a 39)a 40)b 41)a 42)a
43)a 44)b 45)a 46)b 47)c 48)a 49)a
50)a 51)a 52)d 53)b 54)b 55)a 56)b
57)b 58)a 59)a 60)b 61)a 62)c 63)c
64)b 65)d 66)d 67)b 68)b 69)c 70)c
71)a 72)a 73)b 74)c 75)d 76)a 77)a
78)b 79)c 80)a 81)b 82)a 83)b 84)a
85)a 86)b 87)a 88)a 89)a 90)a 91)a
92)a 93)b 94)c 95)b 96)d 97)a 98)a
99)a 100)c 101) a 102)a 103)a 104)b 105)b
106)a 107)a 108)b 109)a 110)c 111)a 112)b
113)b 114)a 115)b 116)a 117)a 118)a 119)b
120)a 121)b 122)a 123)a 124)b 125)c 126)a
127)a 128)b 129)c 130)d 131)a 132)b 133)c
134)d 135)d 136)d 137)a 138)d 139)b 140)d
141)d 142)c 143)d 144)d 145)d 146)b 147)d
148)d 149)d 150)a 151)a 152)b 153)d 154)a
155)d 156)d 157)a 158)b 159)b 160)d 161)d
162)d 163)d 164)a 165)d 166)a 167)b 168)d
169)d 170)c 171)d 172)c 173)d 174)d 175)c
176)c 177)d 178)b 179)c 180)d 181)c 182)b
183)d 184)b 185)c 186)d 187)d 188)c 189)d
190)a 191)b 192)c 193)d 194)d 195)b 196)a
197)d 198)c 199)a 200)c
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Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-
accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
II BBA [2018 - 2021]

Semester IV
Core: PRODUCTION AND MATERIALS MANAGEMENT - 416B
Multiple Choice Questions.
1. A _____________ is something which is offered to customers to satisfy their needs or wants.

A. Process.
B. Price.
C. Promotion.
D. Product.
ANSWER: D
2. Production is the process by which raw materials and other inputs are converted in to ______________.
A. finished product.
B. services.
C. satisfaction.
D. loyalty.
ANSWER: A
3. Inputs in a production system includes____________.

A. organization, output.
B. process, procedure.
C. system, supply .
D. men, materials.
ANSWER: D
4. For a production manager, the product is________________

A. Optimal blend of uses.
B. Optimal blend of services.
C. Combination of surfaces.
D. Combination of properties.
ANSWER: C
5. Planning and controlling the quality of products and services is a ________ type of decision.
A. Control.
B. Operating.
C. Strategic.
D. Organisation.
ANSWER: A
6. The competitive advantage in the production function can be achieved through _________.
A. high wastages.
B. more cost.
C. higher quality.
D. lowest quantity.
ANSWER: C
7. Specialization of labor in manufacturing is contributed by________.

A. Adam smith.
B. F.W.Harris.
C. William Ouchi.
D. Henry L.Gantt.
ANSWER: A
8. The function of _______________ involves the decision when, what,how, and why to produce goods.
A. production planning.
B. production control.
C. method analysis.
D. quality control.
ANSWER: A
9. The contribution of Taylor includes_________.

A. economies in production.
B. quality control charts.
C. scientific management.
D. control charts.
ANSWER: C
10. More textile mills in Coimbatore is mainly due to _________.

A. no other industry can be setup in this area.
B. regulation by govt.
C. climate.
D. power supply.
ANSWER: C
11. The advantage of locating a plant in urban (city) side is __________.

A. cheap availability of land.
B. disposal of waste is easy.
C. cost of operation is low.
D. large markets for finished products.
ANSWER: D
12. Unavailability of skilled labour is a big problem if we locate our factory in _____________.
A. road.
B. rural.
C. city.
D. foreign.
ANSWER: B
13. _____________ refers to the arrangement of machinery, equipment and other industrial facilities.
A. Plant lining.
B. Plant location.
C. Facility location.
D. Plant layout.
ANSWER: D
14. The objective of good layout is to _____.

A. reduce production.
B. reduce wastages.
C. reduce productivity.
D. reduce labour.
ANSWER: B
15. Every foot of available space should be used effectively is a principle of _________.
A. sequence.
B. safety.
C. flexibility.
D. usage.
ANSWER: D
16. __________ type of layout is also called as functional layout.

A. Process.
B. Product.
C. Line.
D. Matrix.
ANSWER: A
17. Grouping together of like machines in one department is in _______ layout.

A. product.
B. process.
C. group.
D. parallel.
ANSWER: B
18. Product layout is also called as ________ layout.

A. line
B. cellular.
C. process.
D. functional.
ANSWER: A
19. In _________ type of layout machineries are arranged according to the sequence of operations.
A. process.
B. group.
C. matrix.
D. line.
ANSWER: D
20. ______________ type of layout are suitable for non repetitive or standard types of production .
A. Process.
B. Product.
C. Group.
D. Matrix.
ANSWER: A
21. ________ type of layout is a combination of functional layout and line layout.
A. Cellular.
B. Group.
C. Product.
D. Process.
ANSWER: B
22. Ship Building and Aircraft manufacturing is an example of ________ type of layout .
A. combined.
B. matrix.
C. fixed.
D. group.
ANSWER: C
23. In ________ layout machines are grouped in to cells and the cells function somewhat like a product layout
in larger shop or process layout.
A. functional.
B. fixed.
C. matrix.
D. cellular.
ANSWER: D
24. Which of the following is not a computerized technique for layout planning?
A. CAD.
B. ALDEP.
C. CRAFT .
D. CORELAP.
ANSWER: A
25. Product layout is suitable for _________ type of production.

A. small.
B. mass.
C. less.
D. medium.
ANSWER: B
26. The main components of production system include which of the following?
A. Men, material.
B. Services, satisfaction.
C. Input, process, output.
D. Process, service.
ANSWER: C
27. The products are produced for stock purpose in _____________.

A. continuous production system.
B. assembly production system.
C. intermittent production system.
D. analytic production system.
ANSWER: A
28. Operations management is applicable ________________.

A. mostly to the service sector .
B. to services exclusively .
C. mostly to the manufacturing sector .
D. to manufacturing and service sectors .
ANSWER: D
29. The vendor rating is the process of rating the ______.

A. suppliers .
B. buyers.
C. manufacturers.
D. sellers.
ANSWER: A
30. Walter Shewhart is listed among the important people of operations management because of his
contributions to ____________.
A. assembly line production.
B. measuring the productivity in the service sector.
C. just-in-time inventory methods.
D. statistical quality control.
ANSWER: D
31. Henry Ford is noted for his contributions to ____________________.

A. standardization of parts
B. statistical quality control
C. assembly line operations
D. scientific management
ANSWER: C
32. Which of the following method is used for recording path of movement during method study?
A. Chronocyclographs.
B. Simo chart.
C. Two handed process chart.
D. therblig.
ANSWER: A
33. All of the following decisions fall within the scope of operations management except for
______________________.
A. financial analysis
B. design of products and processes
C. location of facilities
D. quality management
ANSWER: A
34. Budgeting, paying the bills, and collection of funds are activities associated with the ______________.
A. management function
B. control function
C. finance/accounting function
D. production/operations function
ANSWER: C
35. Which of the following would not be an operations function in a fast-food restaurant?
A. Making hamburgers and fries.
B. Advertising and promotion.
C. Maintaining equipment.
D. Designing the layout of the facility.
ANSWER: B
36. Current trends in operations management include all of the following except ______________.
A. Just-in-time performance.
B. rapid product development.
C. mass customization.
D. mass production.
ANSWER: D
37. Typical differences between goods and services do not include _____________.
A. cost per unit.
B. ability to inventory items.
C. timing of production and consumption.
D. customer interaction.
ANSWER: A
38. Which is not true regarding differences between goods and services?
A. Services are generally produced and consumed simultaneously, tangible goods are not.
B. Services tend to be more knowledge-based than products.
C. Services tend to have a more inconsistent product definition than goods.
D. Goods tend to have higher customer interaction than services.
ANSWER: D
39. Which of the following is not a typical attribute of goods?

A. Output can be inventoried.
B. Often easy to automate.
C. Aspects of quality difficult to measure.
D. Output can be resold.
ANSWER: C
40. In a __________ Layout all machines or process of the same type are grouped together.
A. Fixed position.
B. Factory.
C. Process.
D. Product.
ANSWER: C
41. Which of the following services is not unique, i.e., customized to a particular individual's needs?
A. Hairdressing.
B. Elementary education.
C. Legal services.
D. Dental care.
ANSWER: B
42. Which of the following is not a typical service attribute?

A. Intangible product.
B. Easy to store.
C. Customer interaction is high.
D. Simultaneous production and consumption.
ANSWER: B
43. Productivity can be improved by __________.

A. increasing inputs while holding outputs steady.
B. decreasing outputs while holding inputs steady.
C. increasing inputs and outputs in the same proportion.
D. decreasing inputs while holding outputs steady.
ANSWER: D
44. In which type of production system the unit cost of production is low?
A. Combined production
B. Continuous production.
C. Intermittent production.
D. Custom production.
ANSWER: B
45. In intermittent manufacturing system the goods are produced for __________.
A. storing.
B. processing.
C. order.
D. own consumption.
ANSWER: C
46. ___________ may be defined as the ratio between output and input.
A. Production.
B. Productivity.
C. Batch production.
D. Job production.
ANSWER: B
47. ____________ is defined as a technique of foreseeing or picturing ahead every step in long series of
separate operations, each step is to be taken in the right place, of the right degree, and at the right time and
each operation is to be done at a maximum efficiency.
A. Production planning.
B. Production control.
C. Inventory control.
D. Process control.
ANSWER: A
48. Which of the following is a production planning technique?

A. Dispatching.
B. Loading.
C. Inspection.
D. Expediting.
ANSWER: B
49. The process of deciding the path on which material move from start to finish is known as_______.
A. scheduling.
B. routing.
C. dispatching.
D. sequencing.
ANSWER: A
50. Production planning and control starts with ________.

A. routing.
B. estimating.
C. scheduling.
D. expediting.
ANSWER: B
51. ________ function of production planning and control determines the starting time and finishing time for
each operation.
A. Routing.
B. Loading.
C. Scheduling.
D. Controlling.
ANSWER: B
52. ________________ ensures that, the work is carried out as per the plan and delivery schedules are met.
A. Expediting.
B. Dispatching.
C. Evaluating.
D. Loading.
ANSWER: A
53. Which of the following is defined as a set of activities which help to keep plant, machinery and other
facilities in good working condition?
A. Management.
B. Maintenance.
C. Materials.
D. Mechanic.
ANSWER: B
54. The primary function of plant maintenance does not which of the following_______.
A. maintenance of existing plant and equipments.
B. alterations to existing equipments and buildings.
C. selling of old machineries.
D. equipment inspection and lubrication.
ANSWER: C
55. Building construction and maintenance, maintaining service facilities such as water, gas, steam,
compressed air, heating and ventilating, air conditioning, painting, plumbing and carpentry work includes
_______________ type of maintenance.
A. electric maintenance.
B. civil maintenance.
C. corrective maintenance.
D. preventive maintenance.
ANSWER: B
56. _____________ function of production planning and control decides the quantity of output to be produced
and the cost involved in it on the basis of sales forecast.
A. Expediting.
B. Loading.
C. Estimating.
D. Scheduling.
ANSWER: C
57. VED analysis of inventory management stands for_________

A. Vital-Essential-Desirable
B. Valuable-Easy-Difficult
C. Very-Essentially-Desired
D. Valuable-Effective-Difficult to obtain
ANSWER: A
58. _____________ is one of the functions of materials management.

A. Selling finished goods.
B. Collection of bad debts.
C. Receiving and warehousing.
D. Managing cash flows.
ANSWER: C
59. ______________ material handling device is used to move the material of different sizes and weights.
A. Industrial trucks.
B. Trolley.
C. Crawlers.
D. Cranes.
ANSWER: D
60. The material handling device which moves materials between two fixed points is _____________.
A. conveyors.
B. cranes.
C. hoists.
D. trucks.
ANSWER: A
61. The manager of inventory would most likely be found in the __________.
A. finance function.
B. marketing function.
C. manufacturing function.
D. information system function.
ANSWER: C
62. The 4Ms does not include___________.

A. men.
B. material.
C. message.
D. machinery.
ANSWER: C
63. ___________ study is concerned with the determination of the amount of time required to perform a unit
of work.
A. method.
B. motion.
C. work.
D. time.
ANSWER: D
64. THERBLIGS was coined by _____________.

A. Taylor.
B. Gilberth.
C. Henry Ford.
D. Adam smith.
ANSWER: B
65. _________ records graphically or diagrammatically, in sequence the movements connected with a process.
A. Process chart.
B. Route chart.
C. Flow chart.
D. Handling chart.
ANSWER: A
66. __________ is the first step in method study.

A. Examine the facts.
B. Record the present method.
C. Develop best method.
D. Select the work to study.
ANSWER: D
67. ___________ dimensions of business definition specify what activities are to be undertaken to produce
and deliver products/services.
A. Product dimension.
B. Technology dimension.
C. Functional dimension.
D. Process dimension.
ANSWER: B
68. The __________ approach considers only the immediate future.

A. situationalistic approach.
B. holistic approach.
C. systems approach.
D. tactical approach.
ANSWER: D
69. The functions of ___________ are not quite related to strategic management.
A. board of directors
B. chief executives
C. personnel manager
D. managing director
ANSWER: A
70. Corporate planning staff functions in __________ capacity.

A. managerial.
B. staff.
C. personal.
D. official.
ANSWER: B
71. ___________ formulates long term plans for the organization.

A. Staff members.
B. Business executives.
C. Chief executives.
D. Board members.
ANSWER: C
72. The legal functions that board of directors of any company are described in _______.
A. partnership act.
B. companies act.
C. MRTP act.
D. Indian companies act.
ANSWER: D
73. Mass production is characterized by _________________.

A. Low volume high variety.
B. High volume low variety.
C. High volume high variety.
D. Low volume low variety.
ANSWER: B
74. _____________ attempts to provide an understanding about the objectives that a firm is set out to achieve.
A. Strategic planning.
B. Strategic intent.
C. Strategic management.
D. Strategic decisions.
ANSWER: B
75. A mission should be ________ both in terms of intension and words.

A. simple
B. brief
C. clear
D. vague
ANSWER: C
76. ___________ states the image which the organization wishes to project.
A. Objectives.
B. Plan.
C. Vision.
D. Mission.
ANSWER: D
77. Good _________ fosters long term thinking.

A. vision
B. mission
C. plan
D. target
ANSWER: A
78. ___________ function develops a physical relationship between inputs and outputs.
A. Production.
B. System.
C. E-manufacturing.
D. Assembly line.
ANSWER: A
79. ___________ may be defined as the ratio between output and input.
A. Production.
B. Productivity.
C. Batch production.
D. Job production.
ANSWER: B
80. ___________ is the ratio of available goods and services to the potential resources of the community or
the country.
A. Purchasing power.
B. Simulation.
C. Productivity.
D. Demography.
ANSWER: A
81. ___________ is the third step in the production planning and control.
A. Routing.
B. Scheduling.
C. Expediting.
D. Dispatching.
ANSWER: D
82. __________ in the production planning and control is checking of work and taking corrective steps to
ensure that each piece of work is completed at the right time.
A. Expediting.
B. Dispatching.
C. Routing.
D. Scheduling.
ANSWER: A
83. Production planning starts with ____________.

A. Scheduling.
B. Routing.
C. Dispatching.
D. Expediting.
ANSWER: B
84. ____________ involves implementation of production plans or schedules by coordinating different

activities.
A. Production planning.
B. Production schedule.
C. Production control.
D. Productivity.
ANSWER: C
85. A production system uses __________ to perform inputs into some desired output.
A. operations system.
B. operations materials.
C. operations services.
D. operations resources.
ANSWER: D
86. The therblig symbol used for micro motion of "release' is _______________.
A. R.
B. RE.
C. RL.
D. RS.
ANSWER: C
87. The products that are made correctly and customized to consumer needs are called __________.
A. core products.
B. essential products.
C. durable products.
D. core services.
ANSWER: B
88. The ability to rapidly increase or decrease production levels or shift production capacity quickly from one
product or service to another is called____________.
A. capacity uncertainty.
B. capacity alteration.
C. capacity flexibility.
D. capacity certainty.
ANSWER: C
89. Automation version of the generic manufacturing process, where in the three manufacturing functions are
replaced by the automated technologies is called _______.
A. automated materials handling system.
B. flexible manufacturing system.
C. computer integrated manufacturing system.
D. production planning system.
ANSWER: A
90. In double sampling plan, there is a ________ percent saving is sampling inspection as compared to single
sampling plan.
A. 1-9.
B. 10-17.
C. 18-24.
D. 25-33.
ANSWER: D
91. To ensure that the proportion of defective items in the manufactured product is not beyond certain limits is
called ______.
A. process control.
B. system control.
C. product control.
D. systematic control.
ANSWER: A
92. The control limits delimited by the consumer are called _________.
A. modified control limits.
B. natural control limits.
C. specified control limits.
D. artificial control limits.
ANSWER: B
93. Sampling inspection procedure by variables as compared to by attributes is _______.

A. more prevalent.
B. non- practiced.
C. less prevalent.
D. practiced.
ANSWER: C
94. The sampling inspection procedure adopted in statistical quality control is of ______ types.
A. two.
B. three.
C. four.
D. five.
ANSWER: A
95. The decision about the lot under sampling inspection procedures can be of ______ types.
A. one.
B. two.
C. three.
D. four.
ANSWER: B
96. The expected sample size required to arrive at a decision about the lot is called_______.
A. random variable.
B. average sample number.
C. random design.
D. average sample size.
ANSWER: B
97. A control chart based on known parameter values is_________.

A. more advantageous than the one based on estimated values.
B. complicated than that of control chart based on estimated values .
C. less reliable than the control chart based on estimated values.
D. less reliable than the control chart based on calculated values.
ANSWER: A
98. A sequential sampling plan is ________.

A. an infinite process.
B. the process requiring much more sampling units than a fixed sized sample.
C. a process in which sampling terminates with probability one .
D. a finite process.
ANSWER: C
99. The decision in a sequential sampling scheme is taken ______.

A. after inspecting the sample as a whole.
B. after selection and inspection of items one by one.
C. before inspecting the sample as a whole.
D. before selection and inspection of items one by one
ANSWER: B
100. Which of the following is not a type of flow process chart?

A. Material.
B. Method.
C. Machine.
D. Man.
ANSWER: B
101. The symbol of rectangle shape represents the process of ________ in the process analysis.
A. Transportation
B. Transportation
C. Inspection
D. Delay
ANSWER: C
102. _________ is considered as the "essence of management".

A. Co-ordination.
B. Planning.
C. Staffing.
D. Directing.
ANSWER: A
103. _______ is a vital aspect of the managerial process.

A. Controlling.
B. Communication.
C. Performance-appraisal.
D. Merit rating.
ANSWER: B
104. Due to availability of ___________, quality of the products produced by the manufacturers remains
same.
A. technology.
B. raw materials.
C. machineries.
D. human resource.
ANSWER: A
105. Congestion is more in ________ layout.

A. process.
B. product.
C. fixed.
D. cellular.
ANSWER: A
106. Idle time is more in _________layout.

A. process.
B. fixed.
C. cellular.
D. product.
ANSWER: B
107. Semi skilled people may be appointed in this ________ manufacturing system.
A. job shop.
B. continuous.
C. intermittent.
D. hybrid.
ANSWER: B
108. Supervision required is more in ______ manufacturing system.

A. continuous.
B. intermittent.
C. hybrid.
D. job shop.
ANSWER: D
109. Preparing the maintenance schedule of machineries becomes difficult in ___________ manufacturing
system.
A. continuous.
B. intermittent.
C. hybrid.
D. job shop.
ANSWER: A
110. Maintenance cost is more in _____________manufacturing system.

A. continuous.
B. intermittent.
C. hybrid.
D. job shop.
ANSWER: A
111. Routing and scheduling is difficult in this_________ manufacturing system.

A. continuous.
B. intermittent.
C. hybrid.
D. job shop.
ANSWER: D
112. Chances of accidents are more in ________ manufacturing system.

A. continuous.
B. intermittent.
C. hybrid.
D. job shop.
ANSWER: B
113. Production cost is less in __________manufacturing system.

A. continuous.
B. intermittent.
C. hybrid.
D. job shop.
ANSWER: A
114. Which of the following functions is not a core function of an organization?

A. The marketing (including sales) function.
B. The operations function.
C. The accounting and finance function.
D. The product/service development function.
ANSWER: C
115. which is not a part of 5R's of buying?

A. Right quality.
B. Right quantity.
C. Right source.
D. None of the above.
ANSWER: D
116. __________ is a process of planning and regulating the operation of that part of an enterprise which is
responsible for actual transformation of materials into finished products.
A. Manufacturing management.
B. Operation management.
C. Systems management.
D. Production management.
ANSWER: D
117. Operations management is applicable ________________.

A. mostly to the service sector .
B. to services exclusively.
C. mostly to the manufacturing sector.
D. to manufacturing and service sectors.
ANSWER: D
118. Walter Shewhart is listed among the important people of operations management because of his
contributions to ____________.
A. assembly line production.
B. measuring the productivity in the service sector.
C. just-in-time inventory methods.
D. statistical quality control.
ANSWER: D
119. Henry Ford is noted for his contributions to ____________________.

A. standardization of parts.
B. statistical quality control.
C. assembly line operations.
D. scientific management.
ANSWER: C
120. Taylor and Deming would have both agreed that _____________.
A. Whirlpool's global strategy is a good one.
B. Eli Whitney was an important contributor to statistical theory.
C. management must do more to improve the work environment and its processes so that quality can be
improved.
D. productivity is more important than quality.
ANSWER: C
121. Who among the following is associated with contributions to quality control in operations management?
A. Charles Babbage.
B. Henry Ford.
C. Frank Gilbreth .
D. W. Edwards Deming.
ANSWER: D
122. The five elements in the management process are ___________.

A. plan, direct, update, lead, and supervise .
B. accounting/finance, marketing, operations, and management .
C. organize, plan, control, staff, and manage .
D. plan, lead, organize, manage, and control .
ANSWER: D
123. In _______layout , the facilities are clubbed together so as to form a cell.

A. Product.
B. Process.
C. Cellular.
D. Fixed.
ANSWER: C
124. Which of the following is not an element of the management process?

A. Pricing.
B. Staffing.
C. Planning.
D. Controlling.
ANSWER: A
125. The first activity of purchasing cycle is _________.

A. Communicating requirement to the purchase.
B. Source selection and development.
C. Recognizing the need for procurement.
D. Inspection of goods.
ANSWER: C
126. All of the following decisions fall within the scope of operations management except for
______________________.
A. financial analysis.
B. design of products and processes.
C. location of facilities.
D. quality management.
ANSWER: A
127. Which of the following are the primary functions of all organizations?
A. Operations, marketing, and human resources.
B. Marketing, human resources, and finance/accounting.
C. Sales, quality control, and operations.
D. Marketing, operations, and finance/accounting.
ANSWER: D
128. Budgeting, paying the bills, and collection of funds are activities associated with the
_________________.
A. Management function.
B. Control function.
C. Finance/accounting function.
D. Production/operations function.
ANSWER: C
129. Which of the following would not be an operations function in a fast-food restaurant?
A. Making hamburgers and fries.
B. Advertising and promotion.
C. Maintaining equipment.
D. Designing the layout of the facility.
ANSWER: B
130. The three major functions of business organizations _____________.

A. are mutually exclusive.
B. exist independently of each other.
C. overlap.
D. function independently of each other.
ANSWER: C
131. Current trends in operations management include all of the following except ______.
A. Just-in-time performance.
B. rapid product development.
C. mass customization.
D. mass production.
ANSWER: D
132. Typical differences between goods and services do not include _____________.
A. cost per unit.
B. ability to inventory items.
C. timing of production and consumption.
D. customer interaction.
ANSWER: A
133. Which is not true regarding differences between goods and services?
A. Services are generally produced and consumed simultaneously, tangible goods are not.
B. Services tend to be more knowledge-based than products.
C. Services tend to have a more inconsistent product definition than goods.
D. Goods tend to have higher customer interaction than services.
ANSWER: D
134. Capacity decisions have a direct influence on performance of production system in respect of ________
A. Delivery performance
B. Quality control
C. Plant size
D. Manpower
ANSWER: A
135. Productivity measurement is complicated by _____________.

A. the competition's output .
B. the fact that precise units of measure are often unavailable .
C. stable quality .
D. the workforce size .
ANSWER: B
136. The total of all outputs produced by the transformation process divided by the total of the inputs is
__________.
A. utilization .
B. greater in manufacturing than in services .
C. defined only for manufacturing firms .
D. multi-factor productivity .
ANSWER: D
137. Which of the following inputs has the greatest potential to increase productivity?
A. Labor .
B. Globalization .
C. Management .
D. Capital .
ANSWER: C
138. Productivity can be improved by __________.

A. increasing inputs while holding outputs steady .
B. decreasing outputs while holding inputs steady .
C. increasing inputs and outputs in the same proportion .
D. decreasing inputs while holding outputs steady .
ANSWER: D
139. Three commonly used productivity variables are _________________.

A. quality, external elements, and precise units of measure .
B. labor, capital, and management .
C. technology, raw materials, and labor
D. education, diet, and social overhead .
ANSWER: B
140. The service sector has lower productivity improvements than the manufacturing sector because
___________.
A. the service sector uses less skilled labor than manufacturing .
B. the quality of output is lower in services than manufacturing .
C. services usually are labor intensive .
D. service sector productivity is hard to measure .
ANSWER: C
141. Productivity tends to be more difficult to improve in the service sector because the work is
_________________.
A. often difficult to automate .
B. typically labor intensive .
C. frequently individually processed and customised.
D. often an intellectual task performed by professionals.
ANSWER: C
142. ________family is primarily concerned with quality management.

A. ISO 9004.
B. ISO 14000.
C. ISO 9000.
D. ISO 14001.
ANSWER: C
143. Select the odd one which is not the required document for the ISO certificate?
A. Quality policy manual.
B. Quality system procedures.
C. Records.
D. Contract review.
ANSWER: D
144. _________is carried out to verify whether a quality system is effective and suitable.
A. Quality audit.
B. Quality assurance audit.
C. Quality verification.
D. Quality analysis.
ANSWER: A
145. Performance appraisal is also known as ______.

A. merit rating.
B. quality rating .
C. credit rating.
D. critical rating.
ANSWER: A
146. Select the odd one which is not the dimension of quality?
A. Response.
B. Reliability.
C. Reputation.
D. Reassurance.
ANSWER: D
147. Supplier rating system is also referred to as a _________used to obtain an over all rating of suppliers
performance.
A. score card system.
B. open ended system .
C. credit card system .
D. sub system.
ANSWER: A
148. The term muda in TQM refers to ______ classes of waste.

A. Six.
B. Seven.
C. Eight .
D. Nine.
ANSWER: B
149. Malcom Balridge national quality award is used to measure TQM efforts on an __________basis.
A. Quarterly.
B. Monthly .
C. Annual.
D. Half-yearly.
ANSWER: C
150. RPN in total quality management denotes _______.

A. Risk priority number.
B. Return priority number.
C. Risk preference number.
D. Return preference number.
ANSWER: A
Staff Name
RAJESH MAHARAJAN J .
PRODUCTION AND OPERATIONS MANAGEMENT
MCQ –UNIT 5
1) After 2nd World War which country invited and started practicing the input of the quality?
1) India
2) China
3) Russia
4) Japan
2) _____________ is the man behind the four absolute of quality Management?
1) Joseph Juran
2) Philip Cosby
3) Edwards Deming
4) Lewis
3) Who is the father of 6Sigma?
1) Philip Cosby
2) Lewis
3) Bill Smith
4) Jack Welch
4) Which of the following is one not of steps in DMAIC?
1) Define
2) Measure
3) Control
4) Design
5) Kaizen is a ___________term
1) Japanese
2) Indian
3) Chinese
4) Russian
6) What is the long form of JIT?
1) Just in Town
2) Just in Total quality
3) Just in Table
4) Just in Time
7) Which of the following is not a characteristic of quality circle?
1) Voluntary
2) Individual Activity
3) Participative
4) Group Activity
8) What is the long form of TQM?
1) Total Quality Measure
2) Total Quantity Management
3) Total Quality Management
4) Total Quantity Measure
9) ISO at present comprises the national standardized bodies of ____________ columns
1) 92
2) 94
3) 91
4) 90
10) Which of the following is not clause in ISO?
1) Normative Reference
2) Customer Focus
3) Human Relations
4) Infrastructure
11) Which book is published by Joseph M. Jurau in 1960?
1) Managerial Management
2) Managerial Quality
3) Managerial breakthrough
4) Managerial skills
12) Six Sigma was first used at which Company?
1) Motor Tata
2) Motorola
3) HTC
4) Huawei
13) Who was the CEO of Motorola in Late 1980s’?
1) Bob Marley
2) Bill Smith
3) Bob Galvin
4) Bill Gates
14) Which book was written by Masaaki Imai?
1) Kaizen
2) Delta Kaizen
3) Giga Kaizen
4) Sigma Kaizen
15) What is the % of Six Sigma?
1) 99.338%
2) 99.977%
3) 99.996%
4) 99.332%
16) Who developed the Just in Time technique in early 1970s’?
1) Taiichi Ohno
2) Lawrence Bossidy
3) Jack Welch
4) Bill Smith
17) Who introduced quality Circles?
1) Deming
2) Taiichi Ohho
3) Jack Welch
4) Kaoru Ishikawa
18) Which Company Introduced KaiZen?

1) Toyota
2) Hyundai
3) Swift
4) Mercedes
19) What is the full form of DMAIC?

1) Define, Measure, Analyze, Improve, Control
2) Define, Measure, Analyze, Integrate, Control
3) Define, Measure, Analyze, Identify, Control
4) Design, Measure, Analyze, Improve, Control
20) What is the long form of ISO?

1) International Standard Office
2) International Standard Organization
3) International Standardization Office
4) International Standardization Organization
21) Which of the following is not one of the major ingredients of TQM?
1) Participative Management
2) Continuous Process Improvement
3) Teamwork
4) None of above
22) JIT is a ____________ technique

1) Chinese
2) Japanese
3) Russian
4) Korean
23) How many steps to implement Kaizen?

1) 10
2) 11
3) 12
4) 13
24) Who designed the statically process control technique?

1) Walter Shewhart
2) Edwards Deming
3) Joseph Juran
4) C.W. Kennedy
25) Which of the following technique was implemented even in education sector in India?
1) JIT
2) TQM
3) Quality Circle
4) Kaizen
26) Six Sigma strategies seek to improve the quality of the output of a process by
1) identifying the causes of defects
2) removing the causes of defects
3) minimizing variability in manufacturing
4) all of the above
27) Processes that operate with “six sigma quality” over the short term are assumed to produce
long-term defect levels below ___ defects per million opportunities (DPMO)
(1) 2.4
(2) 3.4
(3) 4.4
(4) 5.4
28) The aim of Six Sigma initiative is to

(A) reduce cost
(B) improve quality
(C) both (A) and (B)
(D) none of the above
29) Six Sigma project follows the following project methodology(ies)

(A) DMAIC
(B) DMADV
(C) Both (A) and (B)
(D) None of the above
30) “DMAIC” is used for projects aimed at

(A) improving an existing business process
(B) creating new product or process designs
31) In “DMAIC”, M stands for

(A) Method
(B) Measure
(C) Machine
(D) Manpower
32) Six Sigma is applicable to
(A) Finance
(B) Supply chain
(C) Healthcare
(D) All of the above
33) TQM & ISO both focuses on

(A) Organization
(B) Customer
(C) Environment
34) Continual improvement is in

(A) Environmental objective
(B) Audit Result
(C) Corrective action
35) -Kaizen is
(A) Small change
(B) Big improvement
(C) Sudden impact
36) Malcolm baldring award seeks improvement in

(A) Quality
(B) Productivity
(D) Wages
37) While setting Quality objective, ________ to be considered.

(A) Organization need
(B) Customer need
(C) Employees need
38)- According to Deming, Quality problems are
(A) Due to management
(B) Due to method
(C) Due to employee
39) Does TQM approach have relevance to Indian industry in context to

(A) Customer satisfaction,
(B) People involvement
(D) Policy management
40) Employees should be involved in

(A) Decision making
(B) Participation
41) How TQM helps in reducing cost?

(A) By reducing internal failure
(B) By reducing external failure cost
(D) By avoiding inspection
42) In Just-In-Time system

(A) There is no delay
(B) Conveyance times are balanced
(D) There is unequal production at different places
43) -In Just-In-Time the vendor is to be viewed by the company as a

(A) Manager
(B) Worker
(C) Partner
44) The following is (are) the prerequisite(s) for JIT.

(A) Multi skilled workers
(B) Vendor should produce defect free
(C) Worker should be empowered his own decision
45-Just-In-Time aimed at
(A) Zero inventories
(B) Reduced manpower
(C) Over production
46-Just-In-Time (JIT) combines the benefits of

(A) Job order production and Line production
(B) Batch production and Line production
(C) Job order production and Batch production
47-JIT does not believe in

(A) Quality
(B) Over production
(C) Human relations

48) Organisation for quality circle includes –
1) steering committee
2) co-ordinator
3)facilitator
4)circle leader
5) circle members
(A) true
(B) false
49) QC is a voluntary, participative, group activity which focuses on quality improvement.
(A) true
(B) false
50) ISO 9000 certification helps users, suppliers, manufacturers, as well as markets who market the
product.
(A) true
(B) false
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PAPER - 9
& STRATEGIC MANAGEMENT
DIRECTORATE OF STUDIES
THE INSTITUTE OF
COST ACCOUNTANTS OF INDIA
Statutory Body under an Act of Parliament
Behind every successful business decision, there is always a CMA

MISSION STATEMENT
“The CMA Professionals would ethically
drive enterprises globally by creating
value to stakeholders in the
socio-economic context through
competencies drawn from the integration
of strategy, management
and accounting.”
VISION STATEMENT
“The Institute of Cost Accountants of India
would be the preferred source of
resources and professionals for the
ﬁnancial leadership of enterprises
globally.”
Courtesy
Vijayawada Chapter of
The Institute of Cost Accountants of India

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PAPER - 9
& STRATEGIC MANAGEMENT
DIRECTORATE OF STUDIES
THE INSTITUTE OF
COST ACCOUNTANTS OF INDIA

P-9: Operations Management & Strategic Management - Bit Questions
PAPER – 9
& Strategic Management
Bit Questions
The Institute of Cost Accountants of India 1

(I) Choose the most appropriate one from given four alternatives.
1. Out of the following trends in production/operations management, which one is

sometimes called as agile manufacturing?
(A) Re-engineering
(B) Supply-Chain Management
(C) Lean Production
(D) Flexibility
2. Out of the following factors that are affecting Capacity Planning, which one is Less
Controllable one?
(A) Machine break-downs
(B) Amount of labour employed
(C) Facilities installed
(D) Shifts of work per day
3. Which of the following stages of Product Life Cycle does attribute beginning of
substantial increase in Sales and Profits?
(A) Introduction
(B) Growth
(C) Maturity
(D) Decline
4. Which one is NOT an index of Productivity?

(A) Man-hour output
(B) Productivity ratio
(C) TQM
(D) Use of Financial Ratios
5. The time by which an activity can be rescheduled without affecting the other
activities - preceding or succeeding is called as
(A) Slack
(B) Independent Float
(C) Free Float
(D) Total Float
6. Reliability and per unit cost of which of the following spares are less?
(A) Regular spares
(B) Insurance spares
(C) Capital spares
(D) Rotable spares
7. The lead-time is the time:

(A) To place holders for materials
(B) Time of receiving materials
(C) Time between receipt of material and using materials,
(D) Time between placing the order and receiving the materials
8. The method used in scheduling a project is:

(A) A schedule of break-down of orders
(B) Outline master programme
(C) PERT & CPM
(D) Schedule for large and integrated work

9. MRP stands for:

(A) Material requirement planning
(B) Material reordering planning
(C) Material requisition procedure
(D) Material recording procedure
10. One of the important charts used in programme control is:

(A) Material chart
(B) Gantt chart
(C) Route chart
(D) Inspection chart
11. Variety reduction is generally known as:

(A) Less varieties
(B) Simplification
(C) Reduced varieties
12. Conversion of inputs into outputs is known as:

(A) Application of technology
(B) operations management
(C) Manufacturing products
(D) product
13. Number of product varieties that can be manufactured in Mass production is:
(A) One only
(B) Two only
(C) Few varieties in large volumes
(D) Large varieties in small volumes
14. Routing and Scheduling becomes relatively complicated in

(A) Job production
(B) Batch production
(C) Flow production
(D) Mass production
15. JIT stands for

(A) Just in time purchase
(B) Just in time production
(C) Just in time use of materials
(D) Just in time order the material
16. The first stage in production planning is:

(A) Process planning
(B) Factory planning
(C) Operation planning
(D) Layout planning
17. Scheduling deals with:

(A) Number of jobs to be done on a machine
(B) Number of machine tools used to do a job
(C) Different materials used in the product
(D) Fixing up starting and finishing times of each operation in doing a job
18. Example of production by disintegration is:

(A) Automobile

(B) Locomotive
(C) Crude oil
(D) Mineral water.
19. Fixing Flow lines in production is known as :

(A) Scheduling
(B) Loading
(C) Planning
(D) Routing
20. The material handling cost per unit of product in continuous production is:
(A) Highest compared to other systems
(B) Lower than other systems
(C) Negligible
(D) Cannot say.
21. (Total station time/Cycle time x Number of work stations) x 100 is known as:
(A) Line Efficiency
(B) Line smoothness
(C) Balance delay of line
(D) Station efficiency
22. Tempering is a process of:

(A) Joining
(B) Heat Treatment
(C) Surface Treatment
(D) Forming
23. For production planning:

(A) Short term forecasting is useful
(B) Medium term forecasting is useful
(C) Long term forecasting is useful
(D) Forecasting is not useful.
24. Scheduling shows:

(A) Total cost of production
(B) Total material cost
(C) Which resource should do which job and when
(D) The flow line of materials
25. Linear Programming is a technique used for determining:

(A) Production Programme
(B) Plant Layout
(C) Product Mix
(D) Manufacturing Sequence.
26. The effective capacity is NOT influenced by which of the following factors:
(A) Forecasts of demand
(B) Plant and labour efficiency
(C) Subcontracting
27. Key aspects in process strategy does NOT include which of the following:
(A) Make or buy decisions
(B) Capital intensity
(C) Process flexibility
(D) Packaging

28. The example of worker involvement, as a recent trend in production/operations

management is
(A) SCM
(B) Just-in-Time
(C) Quality Circle
(D) MRP
29. Production planning in the intermediate range of time is termed as

(A) Production planning.
(B) Long range production planning.
(C) Scheduling.
(D) Aggregate planning.
30. Preventive maintenance is useful in reducing

(A) Inspection Cost
(B) Cost of premature replacement
(C) Shutdown Cost
(D) Set-up Cost of machine
31. Which one of the following standards is associated with the "Quality Assurance in
Production and Installation"?
(A) ISO 9001
(B) ISO 9002
(C) ISO 9003
(D) ISO 9004
32. Number of product varieties that can be manufactured in Job production is:
(A) Limited to one or two
(B) Large varieties of products
(C) One only
(D) None of the above.
33. In general number of product varieties that can be manufactured in Flow production
is:
(A) One only
(B) Ten to twenty varieties
(C) Large varieties
(D) Five only.
34. Generally the size of the order for production in Job production is:
(A) Small
(B) Large
(C) Medium
(D) Very large.
35. Generally in continuous production the production is carried out to:

(A) Customer’s order,
(B) Government orders only
(C) For stock and supply
(D) Few rich customers.
36. Inventory cost per product in intermittent production is:

(A) Higher,
(B) Lowest,
(C) Medium,
(C) Abnormal.

37. The starting point of Production cycle is:

(A) Product design
(B) Production Planning,
(C) Routing
(D) Market research.
38. Preferred numbers are used to:

(A) To determine the number of varieties that are to be manufactured
(B) To the test the design of the product
(C) To ascertain the quality level of the product
(D) To evaluate the production cost.
39. The act of assessing the future and make provisions for it is known as
(A) Planning
(B) Forecasting
(C) Assessment
(D) Scheduling.
40. For a marketing manager, the sales forecast is:

(A) Estimate of the amount of unit sales or a specified future period
(B) Arranging the sales men to different segments of the market
(C) To distribute the goods through transport to satisfy the market demand
(D) To plan the sales methods.
41. The time horizon selected for forecasting depends on:

(A) The salability of the product
(B) The selling capacity of Salesman
(C) Purpose for which forecast is made
(D) Time required for production cycle
42. In general, medium range forecasting period will be approximately:

(A) 5 to 10 Years
(B) 2 to 3 days
(C) 3 to 6 months
(D) 10 to 20 years
43. The range of Long range forecasting period may be approximately:

(A) 1 to 2 weeks
(B) 2 to 3 months
(C) 1 year
(D) above 5 years
44. To plan for future man power requirement:

(A) Short term forecasting is used
(B) Long range forecasting is used
(C) Medium range forecasting is used
(D) There is no need to use forecasting, as future is uncertain.
45. Long range forecasting is useful in:

(A) Plan for Research and Development
(B) To Schedule jobs in Job production
(C) In purchasing the material to meet the present production demand
(D) To assess manpower required in the coming month.
46. Medium range forecasting is useful in:

(A) To assess the loading capacity of the machine

(B) To purchase a materials for next month

(C) To plan for-capacity adjustments
(D) To decide whether to receive production orders or not.
47. To decide work load for men and machines:

(A) Medium range forecasting is used
(B) Short term forecasting is used
(C) Long range forecasting is used
(D) A combination of long range and medium range forecasting is used.
48. Important factor in forecasting production is:

(A) Environmental changes
(B) Available capacity of machines
(C) Disposable income of the consumer
(D) Changes in the preference of the consumer.
49. Application of technology or process to the raw material to add use value is known
as:
(A) Product
(B) Production
(C) Application of technology
(D) Combination of technology and process.
50. In Production by disintegration the material undergoes:

(A) Change in economic value only
(B) Change in physical and chemical characteristics
(C) Change in technology only
51. In Production by service, the product undergoes the changes in:

(A) Shape and size of the surface
(B) Shape of the surface only
(C) Size of the surface only
(D) Chemical and Mechanical properties.
52. Use of any process or procedure designed to transform a set of input elements into a
set of output elements is known as:
(A) Transformation process
(B) Transformation of input to output
(C) Production
(D) Technology change
53. Conversion of inputs into outputs is known as:

(B) Operations management
(C) Manufacturing products
(D) Product
54. The desired objective of Production and Operations Management is:

(A) Use cheap machinery to produce
(B) To train unskilled workers to manufacture goods perfectly
(C) Optimal utilisation of available resources
(D) To earn good profits.
55. The scope of Production Planning and Control is:

(A) Limited to Production of products only

(B) Limited to production of services only

(C) Limited to production of services and products only
(D) Unlimited, can be applied to any type of activity.
56. Manufacturing system often produces:

(A) Standardised products
(B) Standardised products in large volumes
(C) Substandardproducts in large volumes
(D) Products and services in limited volume.
57. The difference between product system and project system is:
(A) Project system the equipment and machinery are fixed where as in product
system they are movable
(B) In Product system the machinery and equipment are fixed and in project system
they are not fixed
(C) Project system produces only standardized products and product system
produces only unstandardised products
(D) Products cannot be stocked whereas projects can be stocked.
58. Most important benefit to the consumer from efficient production system is:
(A) He can save money
(B) He will have product of his choice easily available
(C) He gets increased use value in the product
(D) He can get the product on credit.
59. Two important functions that are to be done by Production department are:
(A) Forecasting
(B) Costing
(C) Scheduling and loading
(D) Inspecting.
60. The act of releasing the production documents to the production department is
known as:
(A) Planning
(B) Routing
(C) Dispatching
(D) Releasing
61. The activity of specifying when to start the job and when to end the job is known as:
(A) Planning
(B) Scheduling
(C) Timing
(D) Follow-up.
62. In an organisation the production planning and control department comes under:
(A) Planning department
(B) Manufacturing department
(C) Personal department
(D) R & D department.
63. In Job production system, we need:

(A) More unskilled labours
(B) Skilled labours
(C) Semi-skilled labours
(D) Old people

64. In Continuous manufacturing system, we need:

(A) General purpose machines and Skilled labours
(B) Special machine tools and highly skilled labours
(C) Semi automatic machines and unskilled labours
(D) General purpose machines and unskilled labours.
65. Most suitable layout for Job production is:

(A) Line layout
(B) Matrix layout
(C) Process layout
(D) Product layout.
66. Most suitable layout for Continuous production is:

(A) Line layout
(B) Process Layout
(C) Group technology
(D) Matrix layout.
67. One of the product examples for Line layout is:

(A) Repair workshop
(B) Welding shop
(C) Engineering College
(D) Cement.
68. The act of going round the production shop to note down the progress of work and
feedback the information is known as:
(A) Follow up
(B) Dispatching
(C) Routing
(D) Trip card
69. Line of Best fit is another name given to:

(A) Method of Least Squares
(B) Moving average method
(C) Semi average method
(D) Trend line method
70. One of the important basic objectives of Inventory management is:

(A) To calculate EOQ for all materials in the organisation
(B) To go in person to the market and purchase the materials
(C) To employ the available capital efficiently so as to yield maximum results
(D) Once materials are issued to the departments, personally check how they are
used.
71. The best way of improving the productivity of capital is:

(A) Purchase automatic machines
(B) Effective Labour control
(C) To use good financial management
(D) Productivity of capital is to be increased through effective materials
management.
72. MRP stands for:

(A) Material Requirement Planning
(B) Material Reordering Planning
(C) Material Requisition Procedure
(D) Material Recording Procedure

73. The cycle time, selected in balancing a line must be:

(A) Must be greater than the smallest time element given in the problem
(B) Must be less than the highest time element given in the problem
(C) Must be slightly greater than the highest time element given in the problem
(D) Left to the choice of the problem solver.
74. Production planning deals with:

(A) What production facilities is required and how these facilities should be laid out in
space available
(B) What to produce and when to produce and where to sell
(C) What should be the demand for the product in future?
(D) What is the life of the product?
75. In Process Planning we plan:

(A) Different machines required
(B) Different operations required
(C) We plan the flow of material in each department
(D) We design the product.
76. In Operation Planning:

(A) The planner plans each operation to be done at work centers and the sequence
of operations
(B) Decide the tools to be used to perform the operations
(C) Decide the machine to be used to perform the operation,
(D) Decide the materials to be used to produce the product.
77. Before thinking of routing, the production planner has to:

(A) Decide the optimal allocation of available resources
(B) To decide what type of labour to be used
(C) To decide how much of material is required
(D) To count how many orders he has on his hand.
78. The quantities for which the planner has to prepare production plan are known as:
(A) Optimal quantity of products
(B) Material planning
(C) Quantity planning
(D) Planning quantity standards.
79. The document, which is used to show planning quantity standards and production
plan, is known as:
(A) Planning specifications
(B) Route sheet
(C) Bill of materials
(D) Operation sheet
80. In solving a problem on LOB, the number of workstations required is given by:
(A) Cycle time/Total time
(B) Cycle time/Element time
(C) Total time/Element time
(D) Total time/ Cycle time.
81. Final stage of production planning, where production activities are coordinated and
projected on a time scale is known as:
(A) Scheduling
(B) Loading
(C) Expediting
(D) Routing

82. The study of relationship between the load on hand and capacity of the work centers
is known as:
(A) Scheduling
(B) Loading
(C) Routing
(D) Controlling
83. One of the aims of loading is:

(A) To finish the job as early as possible
(B) To minimise the material utilization
(C) To improve the quality of product
(D) To keep operator idle time, material waiting time and ancillary machine time at
minimum.
84. One of the principles of Scheduling is:

(A) Principle of optimal product design
(B) Principle of selection of best material
(C) Principle of optimal operation sequence
(D) Principle of optimal cost.
85. One of the requirements of Aggregate Planning is:

(A) Both output and sales should be expressed in a logical overall unit of measuring
(B) Appropriate time period
(C) List of all resources available
(D) List of operations required.
86. In aggregate planning, one of the methods in modification of demand is:

(A) Differential Pricing
(B) Lay off of employees
(C) Over time working
(D) Sub contracting.
87. In aggregate planning one of the methods used to modification of supply is:
(A) Advertising and sales promotion
(B) Development of complimentary products
(C) Backlogging
(D) Hiring and lay off of employees depending on the situation.
88. The first stage of Production control is:

(A) Dispatching
(B) Scheduling
(C) Routing
(D) Triggering of production operations and observing the progress and record the
deviation.
89. One of the important production documents is:

(A) Design sheet of the product
(B) List of materials
(C) Route card
(D) Control chart
90. The way in which we can assess the efficiency of the production plant is by:
(A) Efficient dispatching
(B) By manufacturing a good product
(C) By comparing the actual performance with targets specified in the specified programme
(D) By efficient production planning.

91. Production control concerned with:

(A) Passive assessment of plant performance
(B) Strict control on labours
(C) Good materials management
(D) Good product design
92. When work centers are used in optimal sequence to do the jobs, we can:
(A) Minimise the set up time
(B) Minimse operation time
(C) Minimise the breakdown of machines
(D) Minimise the utility of facility.
93. One of the activities of expediting is:

(A) To file the orders in sequence
(B) To decide the sequence of operation
(C) To record the actual production against the scheduled production
(D) To examine the tools used in production
94. ‘Z’ chart is a chart used in:

(A) Programme control
(B) Job control
(C) Cost control
(D) Quality control
95. Z-chart can be used to show:

(A) Process used in production
(B) Quality level of the product
(C) Both the plan and the performance, and deviation from the plan
(D) To show cost structure of the product.
96. Computers are used in Production control in this area:

(A) Follow-up activity
(B) To control labour
(C) To disseminate information
(D) Loading, Scheduling and Assignment works.
97. The following establishes time sequence of operations:

(A) Routing
(B) Sequencing
(C) Scheduling
(D) Dispatching
98. Arrangement of machines depending on sequence of operations happens in:

(A) Process Layout
(B) Product Layout
(C) Hybrid Layout
(D) Group Technology Layout.
99. Issuing necessary orders, and taking necessary steps to ensure that the time targets
set in the schedules are effectively achieved is known as:
(A) Routing
(B) Dispatching
(C) Scheduling
(D) Inspection.

100. The card which is prepared by the dispatching department to book the labour
involved in each operation is:
(A) Labour card
(B) Wage card
(C) Credit card
(D) Job card.
101. Cost reduction can be achieved through:

(A) Work sampling
(B) Value analysis
(C) Quality assurance
(D) Supply chain management.
102. Addition of value to raw materials through application of technology is:

(A) Product
(B) Production
(D) Advancement
(D) Transformation.
103. The most powerful and popular method for solving linear programming problem is
(A) Simplex method
(B) Graphical method
(C) Transportation method
(D) Assignment method
104. The recent trend in the Production/Operations management which suggests the use
of minimal amount of resources to produce a high volume of high quality goods with
some variety is referred to as:
(A) SCM
(B) TQM
(C) Lean Production
(D) Just-In-Time
105. Effective capacity can NOT be determined by which of the following factors?
(A) Product design and product-mix
(B) Quantity and quality capabilities
(C) Facilities
106. In which of the following stages the management should try to change its approach
by changing its strategy from "buy my product" to "try my product"?
(A) Introduction
(B) Growth
(C) Maturity
(D) Decline
107. Conducting occasional check-ups of the products manufactured or assembled to

ensure high quality of the production is known as:
(A) Planning
(B) Scheduling
(C) Inspection
(D) Routing
108. Which one of the following standards is associated with the "Quality Assurance in Final
Inspection Test"?
(A) ISO 9001

(B) ISO 9002

(C) ISO 9003
(D) ISO 9004
109. With reference to project management, identify which of the following statement is
NOT correct?
(A) Gantt chart is a principal tool used in scheduling and also in some methods of
loading.
(B) Routing is the first step in the production planning.
(C) The cost of any activity is proportional to its time of completion.
(D) The free float can be calculated by subtracting EFT from EST.
110. Identify which one of the following statement is NOT correct?

(A) Preventing maintenance includes lubrication, cleaning, periodic overhaul, etc.
(B) The two types of cost-cost of premature replacement and cost of breakdown-
need to be balanced.
(C) Wear and obsolescence are the two main causes of replacement of machinery in
every aspect of life.
(D) A machine is technically obsolete when another machine can do the same job
more efficiently with reduced time and also at a lower cost.
111. To determine where the plant should be located for maximum operating economy
and effectiveness, refers to which one of the following?
(A) Plant layout
(B) Facility location
(C) Capacity planning
(D) Capacity requirement
112. Which of the following models deals with the physical movement of goods from
different supply origins to a number of different demand destinations?
(A) Simulation
(B) Transportation
(C) Lean operations
(D) Line balancing
113. One of the objectives of maintenance is:

(A) to prevent obsolescence.
(B) to ensure spare parts management.
(C) to satisfy customers.
(D) to extend the useful life of Plant & Machinery without sacrificing the level of
performance
114. Which one of the following recent trends in Production/Operations management

involves drastic measures or break through improvements to improve the
performance of a firm?
(A) Corporate Downsizing
(B) Re-Engineering
(C) Technology
(D) TQM
115. Which of the following process types is used when a very highly standardized product
is desired in high volumes?
(A) Repetitive Process
(B) Batch Process
(C) Project Process
(D) Continuous Process

116. Which of the following aims at finding the best and most efficient way of using the
available resources—men, materials, money and machinery?
(A) Method Study
(B) Work Study
(C) Time Study
(D) Motion Study
117. Which one of the following statements is NOT correct?

(A) LFT is calculated from the LFT of the head event.
(B) Slack can be calculated by adding EFT and LFT of any job.
(C) EFT is the sum of the EST and the time of duration for any event.
(D) The Total Project time is the shortest possible time required in completing the
project.
118. Which one of the following is NOT the advantage of Preventive Maintenance?
(A) Better product quality
(B) Greater safety to workers
(C) Increased breakdowns and downtime
(D) Fewer large-scale repairs
119. Which one of the following establishes time sequence of operations?

(A) Routing
(B) Sequencing
(C) Scheduling
(D) Dispatching
120. With reference to Aggregate Planning, identify which of the following statements is
NOT correct?
(A) It is an Intermediate-term planning.
(B) It is made operational through a master schedule, which gives the manufacturing
schedule.
(C) Facility planning and scheduling are closely related with the aggregate planning.
(D) It deals with the strategic decisions, such as purchase of facilities, introduction of
new products, processes, etc.
121. In route sheet or operation layout, one has to show

(A) A list of materials to be used.
(B) A list of machine tools to be used.
(C) Every work center and the operation to be done at that work center.
(D) The cost of product.
122. Conversion of inputs into outputs is known as

(B) Manufacturing products
(C) Product
(D) Operation management
123. Which of the following is NOT the Plant Layout Principle?

(A) Principle of sequence
(B) Principle of usage
(C) Principle of maximum travel
(D) Principle of minimum investment
124. Which one of the following standards is associated with the “Quality Management
and Quality System Elements-Guidelines”?
(A) ISO 9001

(B) ISO 9002

(C) ISO 9003
(D) ISO 9004
125. In a network diagram, the activity that must be completed prior to the start of an
activity is called as
(A) Successor activity
(B) Predecessor activity
(C) Concurrent activity
(D) Dummy activity
126. Identify which one of the following is NOT the objective of the maintenance:
(A) To keep all production facilities and allied facilities in an optimum working
condition.
(B) To ensure specified accuracy to products and time schedule of delivery to
customers.
(C) To keep the down time of the machine at the maximum.
(D) To keep the production cycle within the stipulated range.
127. With reference to the characteristics of a good product design, which one of the
following is referred to “the ease of manufacture with minimum cost”?
(A) Reliability
(B) Productibility
(C) Specification
(D) Simplification
Answer Key:
(1) (d) Flexibility

(2) (a) Machine break-downs
(3) (b) Growth
(4) (c) TQM
(5) (b) Independent Float
(6) (a) Regular spares
(7) (d) Time between placing the order and receiving the materials
(8) (c) PERT & CPM
(9) (a) Material requirement planning
(10) (b) Gantt chart
(11) (b) Simplification
(12) (c) Manufacturing products
(13) (c) Few varieties in large volumes
(14) (b) Batch production
(15) (b) Just in time production
(16) (b) Factory planning
(17) (d) Fixing up starting and finishing times of each operation in doing a job
(18) (c) Crude oil
(19) (d) Routing
(20) (b) Lower than other systems
(21) (a) Line Efficiency
(22) (b) Heat Treatment
(23) (a) Short term forecasting is useful
(24) (c) Which resource should do which job and when
(25) (c) Product Mix
(26) (d) None of the above
(27) (d) Packaging
(28) (c) Quality Circle

(29) (d) Aggregate planning

(30) (c) Shutdown Cost
(31) (b) ISO 9002
(32) (b) Large varieties of products
(33) (a) One only
(34) (a) Small
(35) (c) For stock and supply
(36) (a) Higher
(37) (d) Market research
(38) (a) To determine the number of varieties that are to be manufactured
(39) (b) Forecasting
(40) (a) Estimate of the amount of unit sales or a specified future period
(41) (c) Purpose for which forecast is made
(42) (c) 3 to 6 months
(43) (d) above 5 years
(44) (b) Long range forecasting is used
(45) (a) Plan for Research and Development
(46) (c) To plan for-capacity adjustments
(47) (b) Short term forecasting is used
(48) (b) Available capacity of machines
(49) (b) Production
(50) (b) Change in physical and chemical characteristics
(51) (d) Chemical and Mechanical properties
(52) (c) Production
(53) (b) Operations management
(54) (c) Optimal utilisation of available resources
(55) (d) Unlimited, can be applied to any type of activity
(56) (a) Standardised products
(57) (b) In Product system the machinery and equipment are fixed and in project system
they are not fixed
(58) (c) He gets increased use value in the product
(59) (c) Scheduling and loading
(60) (c) Dispatching
(61) (b) Scheduling
(62) (b) Manufacturing department
(63) (b) Skilled labours
(64) (b) Special machine tools and highly skilled labours
(65) (c) Process layout
(66) (a) Line layout
(67) (d) Cement
(68) (a) Follow up
(69) (a) Method of Least Squares
(70) (c) To employ the available capital efficiently so as to yield maximum results
(71) (d) Productivity of capital is to be increased through effective materials management
(72) (a) Material Requirement Planning
(73) (c) Must be slightly greater than the highest time element given in the problem
(74) (a) What production facilities is required and how these facilities should be laid out in
space available
(75) (c) We plan the flow of material in each department
(76) (a) The planner plans each operation to be done at work centers and the sequence
of operations
(77) (a) Decide the optimal allocation of available resources
(78) (d) Planning quantity standards
(79) (a) Planning specifications
(80) (d) Total time/ Cycle time
(81) (a) Scheduling

(82) (b) Loading

(83) (d) To keep operator idle time, material waiting time and ancillary machine time at
minimum
(84) (c) Principle of optimal operation sequence
(85) (a) Both output and sales should be expressed in a logical overall unit of measuring
(86) (a) Differential Pricing
(87) (d) Hiring and lay off of employees depending on the situation
(88) (d) Triggering of production operations and observing the progress and record the
deviation
(89) (c) Route card
(90) (c) By comparing the actual performance with targets specified in the specified
programme
(91) (a) Passive assessment of plant performance
(92) (a) Minimise the set up time
(93) (c) To record the actual production against the scheduled production
(94) (a) Programme control
(95) (c) Both the plan and the performance, and deviation from the plan
(96) (d) Loading, Scheduling and Assignment works
(97) (c) Scheduling
(98) (b) Product Layout
(99) (b) Dispatching
(100) (d) Job card
(101) (b) Value analysis
(102) (b) Production
(103) (a) Simplex method
(104) (c) Lean Production
(105) (d) None of the above
(106) (b) Growth
(107) (c) Inspection
(108) (c) ISO 9003
(109) (d) The free float can be calculated by subtracting EFT from EST
(110) (a) Preventing maintenance includes lubrication, cleaning, periodic overhaul, etc
(111) (b) Facility location
(112) (b) Transportation
(113) (d) to extend the useful life of Plant & Machinery without sacrificing the level of
performance
(114) (b) Re-Engineering
(115) (d) Continuous Process
(116) (b) Work Study
(117) (b) Slack can be calculated by adding EFT and LFT of any job
(118) (c) Increased breakdowns and downtime
(119) (c) Scheduling
(120) (d) It deals with the strategic decisions, such as purchase of facilities, introduction of
new products, processes, etc
(121) (c) Every work center and the operation to be done at that work center
(122) (d) Operation management
(123) (c) Principle of maximum travel
(124) (d) ISO 9004
(125) (b) Predecessor activity
(126) (c) To keep the down time of the machine at the maximum
(127) (b) Productibility

(II) Match the following in Column I with the appropriate in Column II
1. Match the following:
Column I Column II
1. Aviation Fuel A Value Analysis
2. Brainstorming B Machine Shop
3. Forgings C Turbo – Alternator
4. Tools D Refinery
5. Hydro-Electricity E Job Evaluation
6. Ranking Method F Smithy
Column I Column II
1. KANBAN A Transportation Application
2. VAM B Metal Cutting
3. Broaching C Scheduling
4. Tools D Job Evaluation
5. Ranking Method E Machine Shop
Column I Column II
1. Linear Programming A Quality Control
2. Average Outgoing Quality B Cost Control
3. Value Analysis C Crashing
4. Programme Evaluation and Review D Product Mix Determination
Technique
5. Network Analysis E Project Planning
Column I Column II
1. Fixture A Conversion of inputs into outputs
2. Process Layout B Network analysis
3. Capital Intensity C General Purpose Machines
4. Operations Management D Mix of equipment and labour which
will be used by the firm
5. Crashing E Appliance for holding the work
6. Less prone to Obsolescence F Grouping together of similar
machines in one department
Column I Column II
1. Furniture A Assembly Line
2. Hydro Electricity B Refinery
3. Television Set C Carpentry
4. Cement D Turbo-Alternator
5. Aviation Fuel E Rotary Kiln
6. Tools F Machine Shop

Column I Column II
1. Ranking Method A Method Study
2. Motion Economy B Plant Layout
3. Work Sampling C Job Evaluation
4. Normal Curve D Inventory Control
5. Use of Templates E Statistical Quality Control
6. Crashing F Network Analysis
7. Replacement G Value Analysis
8. Brain Storming H Work Measurement
9. Stock Level I Maintenance
Column I Column II
1. Electricity A Blast Furnace
2. Petrol B Generator
3. Iron C Refinery
4. Cloth D Assembly Line
5. Car E Smithy
6. Cotton Yarn F Spinning Loom
7. Forgings G Power Loom
Column I Column II
1. LP A Capacity Planning
2. PERT B Quality control
3. MTM C Project funding
4. VA D Project viability checking
5. SRAC E Inventory management
6. MRP F Product design
7. CBA G Cost Control
8. CAD H Product mix determination
9. IFCI I Project Planning
10. AOQ J Work measurement
Column I Column II
1. Inventory Control A Turbo-Alternator
2. Network Analysis B Crashing
3. Aviation Fuel C Value Analysis
4. Hydro-Electricity D Stock Level
5. Improvement in productivity E Refinery
Column I Column II
1. The ability to adopt quickly to changes in volume of A Method study
demand, in the product mix demanded and in
product design or in delivery schedules.
2. To address the planning and controlling of a B Maintenance Stores
manufacturing process and all of its related support

functions.
3. Degree to which the system can be adjusted to C Flexibility
changes in processing requirements.
4. Eliminating unnecessary motions or by changing the D Network Analysis
sequence of operation or the process itself.
5. Certain specific techniques which can be used for E MRP – II
planning, management and control of project.
6. Availability of vital spare parts needs to be F Process Flexibility
ascertained to meet an emergency like breakdown
Column I Column II
1. Any place in a production process where A Assignment
materials tend to pile up or produced at rates of
speed less rapid than the previous or subsequent
operations.
2. It is used when a low volume of high variety B Globalisation
goods are needed
3. A special Linear Programming Problem C Bottleneck
4. Steep increase in the level of competition among D Maintenance Request
manufacturing firms throughout the world.
5. Systematic Quantitative Structural approach to E Job – Shop Process
the problem of managing a project through to
successful competition.
6. This must be made in writing to a central point in F Net work Analysis
the organization.
Column I Column II
1. Cost Benefit Analysis A Crashing
2. Network Analysis B Product Design
3. Television Set C Plant Layout
4. Use of Templates D Method Study
5. Computer Aided Design E Project Viability Checking
6. Motion Economy F Assembly Line
Column I Column II
1. Use of minimal amounts of resources to produce A KAIZEN
a high volume of high quality goods with some
variety.
2. Arranging and grouping of machines which are B Network
meant to produce goods.
3. The extent to which a firm will produce goods or C Monte Carlo Method
provide services in – house or go for outsourcing
4. A given problem is solved by simulating the D Lean Production
original data with random number generators
5. The Principle of continuous improvement E Make or Buy Decisions
6. A graphical representation of all the activities and F Layout
events arranged in a logical and sequential
order.

Answer Key:
Ans: 1
(i) D
(ii) A
(iii) F
(iv) B
(v) C
(vi) E
Ans: 2
(i) C
(ii) A
(iii) B
(iv) E
(v) D
Ans: 3
(i) D
(ii) A
(iii) B
(iv) E
(v) C
Ans: 4
(i) E
(ii) F
(iii) D
(iv) A
(v) B
(vi) C
Ans: 5
(i) C
(ii) D
(iii) A
(iv) E
(v) B
(vi) F
Ans: 6
(i) C
(ii) A
(iii) H
(iv) E
(v) B
(vi) F
(vii) I
(viii) G
(ix) D

Ans: 7
(i) B
(ii) C
(iii) A
(iv) G
(v) D
(vi) F
(vii) E
Ans: 8
(i) H
(ii) I
(iii) J
(iv) G
(v) A
(vi) E
(vii) D
(viii) F
(ix) C
(x) B
Ans: 9
(i) D
(ii) B
(iii) E
(iv) A
(v) C
Ans: 10
(i) C
(ii) E
(iii) F
(iv) A
(v) D
(vi) B
Ans: 11
(i) C
(ii) E
(iii) A
(iv) B
(v) F
(vi) D
Ans: 12
(i) E
(ii) A
(iii) F
(iv) C

(v) B
(vi) D
Ans: 13
(i) D
(ii) F
(iii) E
(iv) C
(v) A
(vi) B

(III) State whether the following are 'True' or 'False':
1. Merit Rating is used to determine the cost of a product.

2. Project costs increase as the duration of the project increases.
3. In carrying out Job Evaluation studies, point system is the best method.
4. Production planning and control is essentially concerned with the control of
Finished goods.
5. A Productivity Index is a device of expressing the ratio between outputs and the
inputs of the resources numerically.
6. If the total float value is zero, it means the resources are just sufficient to complete
the activity without delay.
7. Method study should precede work measurement.
8. Increased productivity leads to cost reduction.
9. A good materials handling system always consists of conveyors.
10. It is desirable to conduct work measurement after method study.
11. Material handling is an integral part of sales process.
12. The time horizon selected for forecasting depends on time required for production
cycle.
13. Rucker plan is a group incentive plan.
14. Assignment problem is solved by Johnson and Bellman method.
15. Preventive maintenance is useful in reducing inspection cost.
16. Customer service is a key objective of operations management.
17. In general short term forecasting will be more useful in production planning.
18. Job Evaluation is a systematic approach to ascertain the labour worth of a job.
19. Load control is typically found wherever a particular bottleneck machine does
not exist in the process of manufacturing.
20. The term "aesthetics" which appeals to the human sense does not add value to
the product.
21. Production planning is an essential function in a factory.
22. Training boosts employee morale.
23. When demand does not exist in the market, we should start Production Incentives.
24. A work stoppage generally reduces the cost of production.
25. No handling is the best handling.
26. Job Evaluation is used to measure absolute job worth.
27. Incentive scheme is introduced by Management with a view to reduce direct
labour cost.
28. The increase in productivity can be attributed to the application of Industrial
Engineering/Techniques,particularly the work study.
29. Operation process chart incorporates all five symbols.
30. Multiple Activity chart deals with layout problems.
31. Standard performance is the natural rate of working of an average operator when
he works tinder proper supervision but without any financial motivation.
32. Allowances for non-availability of materials power failure and breakdown of
machines are provided for in the standard time for an operation/job.
33. It is justified to consider the effect of working condition both in Work Measurement
and Job-Evaluation.
34. Increase in productivity leads to retrenchment of work force.
35. In view of rapid technological advancement we would not concentrate on labour
productivity.
36. Piece wage system is a substitute for proper supervision.
37. Personnel Manager has nothing to do with productivity. It is the job of Technical
Personnel.
38. Ranking is one of the Job Evaluation Techniques.
39. Results available from work sampling study is not 100% accurate.
40. Since breakdown of Plant and machineries is a random phenomenon, it is
impossible to do any work measurement in Maintenance Area.

41. Job Evaluation does not help in performance Rating. There is no difference
between Method study and Value Engineering.
42. Two-handed process chart is the most suitable Recording Technique in Electronics
Assembly Industry.
43. Do standard Times allow for relaxation of the Operators?
44. Is a lift same as an elevator?
45. Is the use of metric system of weights and measures compulsory in India?
46. Can the shaping machine be considered a versatile machine tool?
47. Does the Factories Act in India allow the employment of women in all industries?
48. Is Break-even analysis a management tool?
49. With increase in lot size the setup cost per unit decreases, whereas the inventory
carrying cost increases.
50. A special purpose Machine Tool performs only a limited number of specialised
operations with great speed and precision.
51. Strikes and lock-out are controllable factors affecting Capacity Planning.
52. Incentives are substitute for lower wages.
53. Linear Programming does not consider uncertainties.
54. Depending on the need, the maintenance activity may be centralized or
decentralized.
55. In general, long-range forecasting is more useful in production planning.
56. There is a limit beyond which labour productivity cannot be improved.
57. Breakdown maintenance doesn’t require use of standby machines.
58. Activity Sampling is not a technique of Job Evaluation.
59. A good plant layout is one of the factors in effective utilization of labour.
60. The primary concern of production planning and control is the delivery of
products to customers or to inventory stocks according to some predetermined
schedule.
61. Capacity refers to the minimum load an operating unit can handle.
62. Job-shop process is used when a very highly standardized product is desired in
high volumes.
63. The productivity is a measure of how much input is required to achieve a given
output.
64. One of the limitations of Gantt Chart is that it does not clearly indicate the details
regarding progress of activities.
65. Preventive maintenance ensures greater safety to workers.
66. Short-term forecasting is useful to serve the purpose of estimating the inventory
requirement.
67. The life cycle of a product has many points of similarity with the human life cycle.
68. The Linear Programming problem has two basic parts: the objective function and
the constraint set.
69. The most widely used index of productivity is to work out the output per machine-
hour.
70. PERT is designed for repetitive projects, whereas CPM is suitable for non-repetitive
projects.
71. Wear and obsolescence are two main causes for replacement of machinery in
every aspect of life.
72. A work stoppage generally reduces the cost of production.
73. Depending on the need, the maintenance activity may be centralized or
decentralized.
74. Most suitable layout for continuous production is Matrix Layout.
75. Addition of value to raw materials through application of technology is
production.
76. Breakdown maintenance doesn’t require use of standby machines.
77. The full form of the word MRP in the term “MRP II” is Material Requirements
Planning.
78. Queue Discipline refers to the order in which customers are processed.

79. ISO Standards are reviewed every four years and revised if needed.
80. The CPM has the advantage of decreasing completion times by probably
spending more money.
81. The rotable spares are spare parts which are required regularly and in substantial
number.
Answer Key:
1. False
2. True
3. True
4. False
5. True
6. True
7. True
8. True
9. False
10. True
11. False
12. False
13. True
14. True
15. False
16. True
17. True
18. True
19. False
20. False
21. True
22. True
23. False
24. False
25. True
26. False
27. False
28. True
29. True
30. False
31. False
32. False
33. True
34. False
35. False
36. False
37. False
38. True
39. True
40. False
41. False
42. False
43. True
44. True
45. True
46. False
47. False
48. True

49. True
50. True
51. False
52. False
53. True
54. True
55. False
56. True
57. False
58. True
59. True
60. True
61. False
62. False
63. True
64. True
65. True
66. True
67. True
68. True
69. False
70. False
71. True
72. False
73. True
74. False
75. True
76. False
77. False
78. True
79. False
80. True
81. False

STRATEGIC MANAGEMENT
(I) Choose the most appropriate one from given four alternatives.
1. Benchmarking is
(A) the analytical tool to identify high cost activities based on the 'Pareto Analysis'.
(B) the search for industries best practices that lead to superior performance.
(C) the simulation of cost reduction schemes that helps to build commitment and
improvement of actions.
(D) the process of marketing and redesigning the way a typical company works.
(E) the framework that earmarks a linkage with suppliers and customers.
2. Successful differentiation strategy allows the company to

(A) gain buyer loyalty to its brands.
(B) charge too high a price premium.
(C) depend only on intrinsic product attributes.
(D) have product quality that exceeds buyers' needs.
(E) segment a market into distinct group of buyers.
3. The essential ingredients of Business Process Re-engineering (BPR) are

(A) continuous improvements of products, processes and technologies.
(B) planning for the technologies, processes and strategic partnerships etc.
(C) fundamental re-thinking and radical redesign of business process to achieve
dramatic results.
(D) generation, comparison and evolution of many ideas to find one worthy of
development.
(E) identification and selection of lay-outs most suited for products and processes.
4. Organisation culture is
(A) appreciation for the arts in the organisation.
(B) ability of the organization to act in a responsible manner to its employees.
(C) combination of (A) and (B) above
(D) deeper level of basic assumptions and beliefs that are shared by the members of
the firm.
(E) None of the above
5. Innovation strategy is
(A) defensive strategy
(B) offensive strategy
(C) responding to anticipating customers and market demands
(D) guerrilla strategy
(E) harvesting strategy
6. A corporate strategy can be defined as:

(A) A list of actions about operational planning and statement of organization
structure and control system:
(B) A statement of how to compete, directions of growth and method o assessing
environment;
(C) Abatement of organization’s activities and allocation of resources;
(D) A course of action or choice of alternatives, specifying the resources required to
achieve certain stated objectives;
(E) A statement or where and how the company will prefer to operate.
7. A strategic business unit (SUB) is defined as a division of an organization:

(A) That help in the marketing operations.
(B) That enable managers to have better control over the resources.

(C) The help in the choice of technology.

(D) that help in the allocation of scarce resources.
(E) That help in identifying talents and potentials of people.
8. Indian Airlines decreasing the airfare on the Delhi – Mumbai sector following the
introduction of the no frills airlines would be an example of
(A) Cost leadership
(B) Price leadership
(C) Product differentiate
(D) Focus
(E) Market retention
9. Question mark in BCG Matrix is an investment, which

(A) Yields low current income but has bright growth prospects.
(B) Yields high current income and has bright growth prospects.
(C) Yields high current income and has bleak growth prospects.
(D) Yields low current income and has bleak growth prospects.
10. For an entrepreneur

(A) Vision is before the mission
(B) Mission is before the vision
(C) Both are developed simultaneously
(D) Vision or mission are un-important issue
(E) Profitability is most crucial
11. Typically profits are highest in which stage of the industry life-cycle?
(A) Introduction
(B) Growth
(C) Maturity
(D) Decline
12. The BCG growth matrix is based on two dimensions:

(A) market size and competitive intensity
(B) relative market share and market/industry growth rate
(C) profit margins and market size
(D) market size and market share
13. The strategy of the Reliance Group in India would be a good example of
(A) Conglomerate diversification
(B) Market development
(C) Price Transfers
(D) Concentric Diversification
14. For an actor in Bollywood, his outstanding performance would be a/an

(A) Asset
(B) Strategic asset
(C) Core competency
(D) Capability
15. In product life cycle, ‘cash cows’ indicates

(A) High share
(B) Low growth and negative cash flow
(C) High share, low growth and large positive cash flow
(D) Low share, high growth and large positive cash flow

16. If an organisation acquires its supplier, it is an example of:

(A) Horizontal integration
(B) Forwards vertical integration
(C) Backwards vertical integration
(D) Downstream vertical integration
17. Delphi Technique:

(A) is an attempt to describe a sequence of events that demonstrates how a
particular goal might be reached
(B) is a method of obtaining a systematic refined consensus from a group of experts
(C) is assessing the desirability of future goals and thereafter selecting those areas of
development that are necessary to achieve the desired goals
(D) is concentrating on the impact which various forecasted technological
developments might have on particular industries
18. Board of directors has certain basic tasks as follows:

(A) To monitor plans and programs of production.
(B) To design the course of strategic options and appointment of top management.
(C) To control utilization of resources.
(D) To monitor courses of actions for marketing management.
19. Mckinsey's 7-s framework consists of:

(A) Structure, Strategy, Software, Skills, Styles, Staff and Supervision
(B) Structure, Strategy, Systems, Skills, Styles, Syndication and Shared values
(C) Structure, Strategy, Systems, Skills, Steering power, Styles and Shared values
(D) Structure, Strategy, Staff, Skills, Systems, Shared values, Style
(e) None of the above
20. What are enduring statements of purpose that distinguish one business from other
similar Firms?
(A) Policies
(B) Mission statements
(C) Objectives
(D) Rules
(E) Nature of ownership
21. Outsourcing is the

(A) spinning off of a value-creating activity to create a new firm.
(B) selling of a value-creating activity to other firms.
(C) purchase of a value-creating activity from an external supplier.
(D) use of computers to obtain value-creating data from the Internet.
22. For an actress in Bollywood, her pretty face would be a/an

(A) Asset
(B) Strategic asset
(C) Core competency
(D) Capability
(E) All of the above
23. Strategic analysis is concerned with stating the position of the organisation in terms of:
(A) Mission, choice of market segments, product selection, financial targets, external appraisal;
(B) Mission, goals, corporate appraisal, position audit and gap analysis;
(C) Mission goals, identification of key competitors, SWOT and environmental appraisal;
(D) Mission, targeted ROI, manpower planning, position audit;
(E) Mission, SWOT, competitive strategies, stakeholders position and institutional goal.

24. Strategic choice makes a statement about the corporate strategy as well as business
strategy:
(A) They are one and the same
(B) One is an external planning and another resource planning statement
(C) Corporate strategy is a general statement and business strategy defines how a
SBU shall operate
(D) Both states certain course of action - one for the total unit and another for a
particular business
(E) One refers to the whole business and another helps in the formulation of marketing
decisions
25. Degree of involvement of Board of Directors may vary from passive to active level. It
may participate in one or more of the following activities (state which ones are more
appropriate as a judicious mix) :
(A) It constantly oversees the company’s mission, objectives and policies
(B) It approves issues like R&D, foreign collaborations, linkages with financial
institutions
(C) Capital budgeting, new product launch and competitive strategy building
(D) It tries to ensure that the company remains aligned with changing social, political
and economic.
(E) Oversees only the financial performance of the company.
26. Offensive strategy is a strategy:

(A) For small companies that consider offensive attacks in the market.
(B) For those companies that search for new inventory opportunities to create
competitive advantage.
(C) For the market leader who should attack the competitor by introducing new
products that make existing ones obsolete.
(D) For those companies who are strong in the market but not leaders and might
capture a market share from the leader.
(E) None of the above.
27. SAIL’s famous advertising campaign of “there is a bit of steel in everyone’s life was
meant to:
(A) gain buyers awareness about its versatile product range
(B) create an image of superior performance
(C) inform new buyers about its special products
(D) enhance product quality perception
(E) achieve its mission
28. Marketing Research studies are undertaken :

(A) to measure brand loyalty of a class of consumers
(B) to predict market potential of a product on a future date
(C) to understand product-price relationships
(D) to make out a case for revision of an existing strategy
(E) all of the above
29. Intensity of competition is ____ in low return industries.

(A) low
(B) non-existent
(C) high
(D) not important
(E) dependant on industry nature

30. Ansoff proposed that for filling the corporate planning gap, one follows four strategies
namely-
(A) market penetration, product differentiation, market identification and
diversification
(B) market penetration, product development, marketing research and diversification
(C) market penetration, product development, market development and
diversification
(D) market identification, product development, positioning and diversification
(E) differentiation, product innovation, market opportunity and diversification
31. Directional Policy Matrix is the same as

(A) the BCG model
(B) the 9-cell GE matrix
(C) the Life cycle portfolio analysis
(D) the PIMS matrix
(E) the 3 X 3 competitive positioning matrix
32. Which of the following market structures would be commonly identified with FMCG
products?
(A) Monopoly
(B) Monopolistic competition
(C) Oligopoly
(D) Perfect competition
(E) N one of the above
33. A Product line is a group of products that

(A) are closely related
(B) are marketed through the same channel
(C) Perform a similar function for being sold to the same customers
34. New entrants to an industry are more likely when.

(A) It is difficult to gain access to distribution channels
(B) Economies of scale in the industry are high
(C) Product differentiation in the industry is low
(4) Capital requirement in the industry are high
35. The managerial task of implementing strategy primarily falls upon the shoulders of:
(A) The Chief Executive Officer (CEO)
(B) First line supervisors, who have day-to-day responsibility for seeing that key
activities are done properly
(C) All managers, each attending to what needs to be done in their respective areas
of authority and responsibility
36. The strategy which concentrates around a production market is:

(A) Vertical Integration
(B) Niche
(C) Horizontal Expansion
(D) Diversification
37. ‘Corporation vision’ is the same as

(A) Corporate dream
(B) Corporate mission
(C) Corporate goal
(D) Corporate strategy

38. ‘Niche’ is similar to the

(A) Growth strategy
(B) Milking strategy
(C) Flanking strategy
(D) Survival strategy
39. A supplier group is powerful if

(A) It is not concentrated
(B) Offers unique products
(C) Its customers can backward integrate
(D) There are no switching costs
40. A company’s actual strategy is

(A) mostly hidden to outside view and is known only to top-level managers
(B) typically planned well in advance and usually deviates little from the planned set
of actions and business approaches because of the risks of making on-the-spot
changes
(C) partly proactive and partly reactive to changing circumstances
(D) mostly a function of the strategies being used by rival companies(particularly
those companies that are industry leaders)
41. The reason for failure of Strategic Management may be described to

(A) Over-estimation of resource competence
(B) Failure to obtain senior management commitment
(C) Failure to obtain employee commitment
42. Blue Ocean Strategy is concerned with

(A) moving into new market with new products
(B) creating a new market places where there is no competition
(C) developments of products and markets in order to ensure survival
(D) making the product unique in terms of attributes
43. The strategy of the TATA group in India could be viewed as a good example of
(A) Conglomerate diversification
(B) Market development
(C) Cost Leadership
(D) Concentric diversification.
44. Risk Management Strategies are

(A) Avoid Risk, Reduce Risk, Retain Risk, Combine Risk
(B) Transfer Risk, Share Risk and Hedge Risk
45. The best test of a successful strategy implementation is

(A) Whether the structure is well matched to strategy
(B) Whether the strategies and procedures are observed in a strategy supportive
fashion
(C) Whether actual organizational performance matches or exceeds the targets spelt
out in the strategic plan
(D) Whether it is made after the strategy is formulated, so that it is supportive to the
strategy

46. Which one of the following does NOT seem to be an advantage of the strategic
management?
(A) Discharges board responsibility
(B) Provides a framework for decision-making
(C) Forces an objective assessment
(D) It can be expensive
47. Which of the following analyses 'products and businesses by market share and
market growth'?
(A) SWOT Analysis
(B) BCG Matrix
(C) PEST Analysis
(D) Portfolio Analysis
48. Which one of the following is NOT part of the McKinsey's 7-S framework?
(A) Skills
(B) Staff
(C) Systems
(D) Supervision
49. Which one of the following statement is NOT correct?

(A) Vision is the statement of the future.
(B) The corporate mission is the purpose or reason for its existence.
(C) Targets are formed from vision and mission statement of organizations.
(D) Goals are objectives that are scheduled for attainment during planned period.
50. Which of the following can NOT be the called as a strength of an organization?
(A) Good Industrial relations
(B) Incentives from State Government
(C) Financially very sound
(D) Raw materials source at a distance
51. Strategic Business Unit (SBU) structure does NOT experience one of the following as an
advantage:
(A) Higher career development opportunities
(B) Better control of categories of products manufacturing, marketing and distributions
(C) High cost approach
(D) Help in expanding in different related and unrelated businesses
52. The existence of price-wars in the airline industry in India indicates that
(A) customers are relatively weak because of the high switching costs created by
frequent flyer programmes.
(B) the industry is moving towards differentiation of services.
(C) the competitive rivalry in the industry is severe.
(D) the economic segment of the external environment has shifted, but the airline
strategies have not changed.
53. Business Process Re-engineering is

(A) eliminating loss-making process.
(B) redesigning operational processes.
(C) redesigning the product and services.
(D) recruiting the process engineers.
54. Which one or more of the following are appropriate as a judicious mix for a Product
line, which is a group of products?
(A) That are closely related.

(B) That are marketed through the same channel.

(C) That perform a similar function for being sold to the same customers.
55. The Product Market matrix comprising of Strategies of Market Penetration, Market
Development, Product Development, and Diversification was first formulated by
(A) Ansoff
(B) Drucker
(C) Porter
(D) Prahlad
56. Price fixation for the first time takes place when
(A) a company develops or acquires a new product.
(B) introducing existing product into a new geographic area or a new distribution
channel.
(C) a service, the company bids for a new contract work.
57. Intensity of competition is in low return industries.

(A) low
(B) non-existent
(C) high
(D) not important
58. Which of the following statements can be closely related with the Mission?
(A) It includes definition of products & services the organization provides.
(B) It specifies management policies towards customers and societies.
(C) It provides a roadmap to company’s future.
(D) It indicates the kind that company management is trying to create for future.
59. Portfolio Analysis is a term used

(A) to identify what strategy is needed to maintain a strong position or improve a
weak one.
(B) to find out a best alternative out of various alternatives available.
(C) to analyse products and business by market share and market growth.
(D) to make managers more adaptable to unforeseen changes.
60. Which one of the following is NOT a role of Marketing?

(A) It helps in sustaining and improving the existing levels of employment.
(B) It helps in the economic growth of a country.
(C) It helps in the discovery of entrepreneurial talent.
(D) It diminishes potential aggregate demand and thus reduces the size of the market
61. Which one of the following in NOT the benefit of a Vision?

(A) It helps in the creation of common identity and a shared sense of purpose.
(B) It fosters risk taking and experimentation.
(C) It fosters short-term thinking.
(D) It represents integrity.
62. The competitive position of a company’s SBU or product line can NOT be classified as
one of the following:
(A) Dominant
(B) Strong
(C) Favourable
(D) Volatile

Answer Key:
(1) (b) the search for industries best practices that lead to superior performance
(2) (a) gain buyer loyalty to its brands
(3) (c) fundamental re-thinking and radical redesign of business process to achieve
dramatic results
(4) (d) deeper level of basic assumptions and beliefs that are shared by the members of
the firm
(5) (c) responding to anticipating customers and market demands
(6) (d) A course of action or choice of alternatives, specifying the resources required to
achieve certain stated objectives
(7) (b) That enable managers to have better control over the resources
(8) (b) Price leadership
(9) (a) Yields low current income but has bright growth prospects
(10) (a) Vision is before the mission
(11) (b) Growth
(12) (b) relative market share and market/industry growth rate
(13) (a) Conglomerate diversification
(14) (c) Core competency
(15) (c) High share, low growth and large positive cash flow
(16) (c) Backwards vertical integration
(17) (b) is a method of obtaining a systematic refined consensus from a group of experts
(18) (b) To design the course of strategic options and appointment of top management
(19) (d) Structure, Strategy, Staff, Skills, Systems, Shared values, Style
(20) (b) Mission statements
(21) (c) purchase of a value-creating activity from an external supplier
(22) (b) Strategic asset
(23) (b) Mission, goals, corporate appraisal, position audit and gap analysis
(24) (a) They are one and the same
(25) (b)It approves issues like R&D, foreign collaborations, linkages with financial institutions
(26) (d) For those companies who are strong in the market but not leaders and might
capture a market share from the leader
(27) (e) achieve its mission
(28) (e) all of the above
(29) (c) high
(30) (d) market identification, product development, positioning and diversification
(31) (b) the 9-cell GE matrix
(32) (b) Monopolistic competition
(33) (d) All of the above
(34) (c) Product differentiation in the industry is low
(35) (c) All managers, each attending to what needs to be done in their respective areas
of authority and responsibility
(36) (b) Niche
(37) (a) Corporate dream
(38) (c) Flanking strategy
(39) (b) Offers unique products
(40) (c) partly proactive and partly reactive to changing circumstances
(42) (b) creating a new market places where there is no competition
(43) (a) Conglomerate diversification
(44) (c) Both (A) and (B)
(45) (c) Whether actual organizational performance matches or exceeds the targets spelt
out in the strategic plan
(46) (d) It can be expensive
(47) (b) BCG Matrix
(48) (d) Supervision

(49) (c) Targets are formed from vision and mission statement of organizations
(50) (d) Raw materials source at a distance
(51) (c) High cost approach
(52) (c) the competitive rivalry in the industry is severe
(53) (b) redesigning operational processes
(55) (a) Ansoff
(57) (c) high
(58) (a) It includes definition of products & services the organization provides
(59) (a) to identify what strategy is needed to maintain a strong position or improve a
weak one
(60) (d) It diminishes potential aggregate demand and thus reduces the size of the market
(61) (c) It fosters short-term thinking
(62) (d) Volatile

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1."Quality is defined by the customer" is :

2. According to the manufacturing-based definition of quality

10. Which one of the following best represents a pure good?

11. Which of the following statements is true of LEAN?

12. The bullwhip effect:

14. The variability in demand orders among supply chain participants:

19. Which of the following functions is not a core function of an organisation?

21. Total Quality Management emphasizes

22. "Quality is defined by the customer" is

33. "Kaizen" is a Japanese term meaning

37. Pareto charts are used to

42. Which of the following is not a key activity of an operations manager?

45. Which one of the following best represents a pure good?

50. Which of the following is not a type of operations?

It puts emphasis on quality, flexibility, and time reduction.

53. ____ is an example of a pure good.

56.Zero defects in manufacturing

59. Which came last in the development of manufacturing techniques?

76. Lean production involves

each unit manufactured is good enough to sell

82. Which of the following statements is true of LEAN?

83. Which one does not use operations management?

87. Just-in-time/SCM purchasing requires the following condition:

89. Which of the following is true regarding control charts?

94. The most common form of quality control includes:

99. A company's channel decisions directly affect every ________.

100. A supply chain is a sequence of firms that perform activities required:

105. A supply chain is a sequence of firms that perform activities required:

118. The bullwhip effect:

119. The variability in demand orders among supply chain participants:

a) simultaneous achievement of relevant customer metrics

125. What are the two basic types of production systems?

1.What type of process would a Cement plant be most likely to use?

a. Advertising new salad dishes

46. The process of comparing outputs to previously established standards to determine if

59. What are the two sources of costs in queuing analysis?

70.. What is simulation?

72. Which of the following statements is true of Lean-Six Sigma?

75. A fixed interval system

78. Which of the following is NOT an element of TQM?

79. Which of the following is an example of appraisal cost?

80. Warranty cost is an example of which of the following?

83. Which of the following is the focus of statistical process control?

85. Which of the following is not a type of operations?

86. Technology choices seldom affect:

90. Manufacturing work sent to other countries is called:

Elective – II Information Systems Management – IV

Business Process Re-Engineering

1. Which of the following is the best explanation of business process reengineering?

2. Business process reengineering is also known as

4. Seven step INSPIRE framework for BPR is developed by

5.Which of the following describes an ERP system?

6.What is at the heart of any ERP system?

8. Which is one of the most critical steps in the ERP implementation?

10.The ____________________ and ____________________ manage the supplier relations,

1.Management information systems (MIS)

21 Which of the following should be represented on an information flow diagram?

Information Systems Development

1. a document that compares business and technical requirements of a commercial

1. determine data entry errors on primary keys

WHO ARE MANAGERS?

38. The lowest level of management is ______________.

10.The and manage the supplier relations,