BME 11 c) People like to be directed as they want security.

Chap 1 d) People perform better when they are threatened by the manager.
A common middle-management title is: e) Social processes do not influence the performance of workers.
a) chief executive officer.
b) division head. Which of the following statements is true about operations management?
c) supervisor. a) It relies more on mathematical models than management science.
d) coordinator. b) It can be applied more directly to managerial situations than management science.
c) It exclusively focuses on improving employee attitudes and behavior
involves selecting a course of action from a set of alternatives. d) It is more statistically sophisticated than management science.
a) Job deskilling e) It cannot be applied to inventory control and production operations of an organization
b) Leading
c) Decision making Which of the following statements is true about the contingency perspective?
d) Controlling a) It is a part of the classical perspective of management.
b) It states that the behavior of employees at work is not influenced by social processes.
_ managers implement company policies while also supervising lower-level managers. c) It states that effective managerial behavior in one situation cannot always be generalized to
other situations
The _____ proposed that workers respond primarily to the social context of the workplace, including d) It states that the organizations which are not influenced by their external environments tend
social conditioning, group norms, and interpersonal dynamics. to be more successful than others.
a) management science perspective e) It states that all employees tend to perform better when they are promised higher
b) organizational theory incentives.
c) classical management perspective
d) systems theory Which of the following statements is true in the context of contemporary management trends?
e) human relations movement a) The emphasis on business ethics has declined.
b) The emphasis on management of diversity has declined.
The skills necessary to accomplish or understand the specific kind of work done in an organization c) The service sector of the economy has steadily declined.
are called _____ skills. d) More and more organizations are using quality as a basis for competition.
a) spatial e) Younger people entering the workforce over the past 20 to 30 years are more devoted to
b) conceptual work and more willing to adapt.
c) time management
d) technical Which of the following statements is true of administrative management?
e) diagnostic a) It encompasses the concepts of planning, organizing, and controlling.
Which of the following focuses on the management of the entire firm as opposed to the jobs of b) It deals with the jobs of individual employees.
individual workers? c) It exclusively focuses on individual attitudes and behaviors and group processes.
a) Theory X d) It focuses solely on combating soldiering.
b) Administrative management e) It was first introduced by Frank and Lillian Gilbreth.
c) The Hawthorne studies
d) The Contingency theory Which of the following would be included in the management function of planning?
e) Scientific management a) Monitoring progress toward the achievement of goals
b) Organizing people and resources
Which of the following is a Theory Y assumption? c) Selecting the course of action most likely to lead to success
a) People do not naturally dislike work. d) Motivating others to higher levels of achievement
b) People are not internally motivated to achieve their goals. e) Communicating company policies to subordinates
 A(n) _____ occurs when an employee’s decision potentially benefits the individual to the
Winston is often intimidated and uncomfortable with his superiors. Winston needs to develop his possible detriment of the organization.
_____ skills to be able to communicate easily with his superiors. a) act of incitement
a) time management b) security breach
b) conceptual c) violation of organizational culture
c) interpersonal d) conflict of interest
d) spatial e) loss of confidence
e) diagnostic
_____ are hired for short periods of time and provide greater flexibility, earn lower wages, and often
_____ work in areas like new product development, promotion, and distribution. do not participate in benefits programs.
a) Plant managers a) Interest groups
b) Marketing managers b) Suppliers
c) Operations managers c) Regulatory agencies
d) Finance managers d) Strategic allies
e) Human resource managers e) Temporary workers

_____ are, in effect, export quotas.

_____ refer to a manager’s ability to prioritize work, to work efficiently, and to delegate work a) Export restraint agreements
appropriately. b) Export licensing agreements
a) Diagnostic skills c) Service-level agreements
b) Time-management skills d) Export tariffs
c) Commanding skills e) Strategic alliance agreements
d) Decision-making skills
e) Conceptual skills Ethical issues in corporate governance are primarily the responsibility of:
a) strategic partners.
Chap 2 b) interest groups.
Alex, one of the proprietors of Atlas Corp. is worried.The stock market was not doing well, c) employees.
unemployment was 10 percent, inflation was on the rise again, and government debt was still d) federal regulatory agencies.
increasing. These concerns of Alex are related to the _____ dimension of the general environment of e) the board of directors.
Atlas Corp.
a) political In a(n) _____, two or more firms share equal ownership of a new enterprise.
b) sociocultural a) technology transfer
c) economic b) joint venture
d) legal c) economic community
e) technological d) interest group
e) direct investment
An interest group is a form of a _____.
a) competitor _____ is a law that requires CEOs and CFOs to vouch personally for the truthfulness and fairness of
b) supplier their firms’ financial disclosures and imposes tough new measures to deter and punish corporate and
c) board of directors accounting fraud and corruption.
d) strategic partner a) Commodity Futures Modernization Act of 2000
e) regulatory agency b) Sarbanes–Oxley Act of 2002
 c) Glass–Steagall Act of 1933 b) legal compliance
d) Gramm–Leach–Bliley Act of 1999 c) philanthropic giving
e) Investment Company Act of 1940 d) apprentice sponsoring
e) corporate gifting
_____ is the extent to which the organization conforms to local, state, federal, and international laws.
a) Technological compliance The French government charges a 25 percent tax on all American fruits and vegetables that are sold
b) Ethical compliance in France. This tax collected by French authorities is a(n) _____.
c) Philanthropic giving a) import tariff
d) Risk management b) direct investment
e) Legal compliance c) strategic alliance
d) license
Making a product in the firm’s domestic marketplace and selling it in another country is known as e) export tariff
_____.
a) joint venture The _____ is a trade agreement intended to promote international trade by reducing trade barriers
b) direct investment and making it easier for all nations to compete in international markets.
c) competing a) North American Free Trade Agreement (NAFTA)
d) franchising b) Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)
e) exporting c) Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)
d) General Agreement on Tariffs and Trade (GATT)
Organizations that provide resources to other organizations are known as: e) Agreement on Technical Barriers to Trade (TBT)
a) suppliers.
b) importers.
c) competitors. The _____ of the general environment is made up of the methods available for converting resources
d) interest groups. into products or services.
e) regulators.
The set of obligations that an organization has to protect and enhance the societal context in which it
Ralph Corp. and Swan Inc. are strategic partners. In this context, which of the following statements is functions is called its:
most accurate? a) legal responsibility.
a) Ralph purchases raw materials from Swan in large volumes and uses it to manufacture its b) financial responsibility.
products for retail sale. c) cultural responsibility.
b) Ralph and Swan produce the same goods and share the same market. d) ethical responsibility.
c) Ralph has been using the media to call attention to the negative impact of using Swan's e) social responsibility
products.
d) Ralph procures and provides all the raw materials and labour used by Swan for production. The term _____ refers to behavior that conforms to generally accepted social norms.
e) Ralph sells Swan's merchandise at its stores and Swan promotes Ralph stores in its
advertisements. Which of the following is true of quotas in trade?
a) It is the tax breaks given by the host government.
b) It is used to encourage strategic alliance.
Soft Bites, a factory that makes breads, has asked all its retailers to return the loaves that have not c) It is used to increase domestic competition.
been sold till the last date of expiry. It then donates all these loaves to shelters for the poor and the d) It is used most commonly to restrict trade.
homeless. This act of Soft Bites can be termed as _____. e) It is a form of tax collected on imported goods.
a) ethical compliance
Which of the following would supply capital to a business?
a) Employees
b) Banks A standing plan that outlines the steps to be followed in a particular circumstance is called a(n):
c) Regulators a) standard operating procedure.
d) Board of directors b) single-use plan.
e) Employment agencies c) program.
d) contingency plan.
Chap 3 e) project
A difference between tactical and strategic plans is that:
a) tactical plans have a more concrete focus. During the growth stage of the product life cycle,:
b) tactical plans are set for and by the board of directors. a) most companies downsize.
c) tactical plans have broader time horizons. b) the demand is the lowest.
d) strategic plans are developed by first-line managers. c) competitors start exiting the industry.
e) strategic plans deal with the day-to-day operations of an organization. d) more firms begin producing the product.
e) sales rapidly decline.

A _____ is the most general form of standing plan that specifies the organization’s general response Firms that implement a strategy of _____ operate multiple businesses that are not logically
to a designated problem or situation. associated with one another.
a) project a) single-business unit
b) standard operating procedure b) unrelated diversification
c) policy c) entropy
d) program d) nondiversification
e) single-use plan e) synergy

How an organization distributes its resources across the areas in which it competes is called _____.
A(n) _____ is an area in an organization's environment that, if exploited, may generate higher resource deployment
performance
a) organizational opportunity In a BCG matrix, _____ are businesses that have a large share of a market that is not expected to
b) economic downswing grow substantially.
c) organizational strength a) stars
d) process gain b) cash cows
e) process loss c) entropies
d) question marks
An organization’s fundamental purpose is stated in the organization’s _____. e) dogs

An organization that pursues a single-product strategy: _____ include things like a deep pool of managerial talent, surplus capital, a unique reputation and/or
a) clusters relayed products in a single strategic business unit. brand name.
b) manufactures a range of products that are related to each other in some way. a) Market opportunities
c) uses a single marketing strategy for all its products. b) Organizational opportunities
d) operates in a single geographic market. c) Market strengths
e) creates a separate business unit for each product it sells. d) Environmental strengths
e) Organizational strengths
 Samantha is responsible for building the day-to-day work schedules for her subordinates. She
assigns specific tasks to her subordinates and designs activities according to the objectives that she
In the context of the GE Business Screen, a determinant of an organization's competitive position is: receives from her seniors. Samantha works on _____ plans.
a) capital requirements. a) operational
b) market growth. b) organizational
c) government policies. c) strategic
d) market size. d) divestiture
e) product quality. e) tactical

In the GE Business Screen portfolio management technique, businesses that have good competitive Supertech Inc. is a large firm that manufactures gadgets and mobile phones. The company sells a
position in an attractive industry are known as: line of inexpensive mobile phones exclusively targeted at youth and teenagers in Selenasia. Which of
a) losers. the following strategies is illustrated in the scenario?
b) winners. a) Differentiation strategy
c) profit producers. b) Focus strategy
d) question marks. c) Restraint of trade strategy
e) cash cows. d) Anti-competitive strategy
e) Divesting strategy
Operational goals are set by:
a) first-line managers.
b) top-level managers. The _____ is a portfolio management technique that considers industry attractiveness and
c) the board of directors. competitive position rather than focusing solely on market growth and market share.
d) shareholders. a) Black-Litterman model
e) investors. b) modern portfolio theory
c) growth-share matrix
_____ planning refers to the determination of alternative courses of action to be taken if an intended d) BCG matrix
plan is unexpectedly disrupted or rendered inappropriate. e) GE Business Screen
a) Divestiture
b) Deskilling The narrowest of the standing plans, _____ describe exactly how specific activities are to be carried
c) Synergy out.
d) Contingency a) standard operating procedures
e) Entropy b) projects and programs
c) rules and regulations
Pursuing a strategy of _____ reduces an organization’s dependence on any one of its business d) contingency theories
activities and thus reduces economic risk. e) crisis management procedures
a) single-product
b) single-service Chap 4
c) divestiture A disadvantage of using interacting groups to make decisions is that:
d) related diversification a) it does not foster understanding between members.
e) trade restraint b) it involves more costs than all other group decision techniques.
c) it generates very few alternatives.
d) it fosters political forces.
e) it discourages creativity.
A marketing manager decides to launch a new product because it is the first product that came to his
mind, even if there are several better products to be explored. Which of the following is illustrated in In evaluating a decision alternative, the decision maker should apply three criteria. Describe the three
the scenario? criteria that an ideal alternative should satisfy.
a) Rational decision making
b) Escalation of commitment the certainty that the action will be acted, uncertainty is unknown possible outcomes from the
c) Optimization alternative, and lastly the risk of alternatives that may occur.
d) Bounded rationality
e) Satisficing
_____ is a concept suggesting that decision makers are limited by their values and unconscious
reflexes, skills, and habits.
A nonprogrammed decision: a) Escalation of commitment
a) is typically regarding daily organizational transactions. b) Bounded rationality
b) requires more time and resources than programmed decisions. c) Groupthink
c) typically applies to basic operating systems and procedures. d) Risk propensity
d) is relatively more frequent that programmed decisions. e) Satisficing
e) is highly structured.
_____ is the extent to which a decision maker is willing to gamble when making a decision.
a) Bounded rationality
Decisions made by top managers involving strategy, such as signing mergers or making acquisitions, b) Optimization
are examples of _____ decisions. c) Intuition
a) nonprogrammed d) Risk propensity
b) operational e) Satisficing
c) frequent
d) structured Libra Inc. chose to settle a lawsuit for $75 million. In the context of the rational decision-making
e) programmed model, when executives of the company begin to compare the cost of the settlement to those of other
financial institutions, they will be _____.
Delta Corp. introduced a new set of policies, giving its employees more flexibility in work timings. a) recognizing and defining the decision situation
This decision was made in response to complaints from employees about fatigue. Which step of the b) evaluating the possible alternatives
rational decision-making process is illustrated in the scenario? c) consulting with other decision makers
a) Evaluating the possible alternatives d) following up and evaluating the results of a chosen alternative
b) Selecting the alternative e) developing a set of rational alternatives
c) Evaluating decision effectiveness
d) Implementing an alternative Managers with higher levels of risk propensity are more likely than their conservative counterparts to:
e) Defining the situation a) avoid mistakes and infrequently make decisions that lead to big losses.
b) rely heavily on intuition and gamble big investments on their decisions.
Groupthink: c) display no aggression in decision making.
a) results in extensive brainstorming. d) reach decisions slowly after a great amount of analysis.
b) results in more conflicts. e) adhere to the rational model and be extremely cautious about their decisions.
c) often leads to choosing a wrong alternative.
d) is most likely to occur in non-cohesive groups. The administrative model of decision making argues that decision makers _____ while making
e) results in polarization. decisions.
 a) are constrained by bounded rationality
b) completely avoid escalation of commitment
c) use complete and perfect information
d) do not use intuition while making decisions
e) use only instincts

The final step in the decision-making process requires that managers _____.
a) evaluate the results of the chosen alternative
b) implement the chosen alternative
c) select the best alternative
d) identify the available alternatives
e) define the decision situation

The process of choosing one alternative from among a set of alternatives is called _____.
a) altruism
b) decision making
c) bounded rationality
d) groupthink
e) rational ignorance

In the rational decision-making process, optimization means:

a) identifying obvious, standard alternatives.
b) choosing the alternative with the best overall expected outcomes.
c) developing the maximum number of creative, innovative alternatives.
d) choosing an alternative that is feasible even if it is not satisfactory or has undesirable
consequences.
e) gathering the most complete information before making the decision.