True/False Questions

Chapter 1 Managing

Module 1: Test Your Knowledge

True/False Questions

1. Perhaps the most important force to change in management is the growing need for using what has worked well in the past.

2. Speed in the competitive business world, is secondary to product packaging. 3. A cost structure that stays competitive (as low as or lower than competitors') guarantees success.

4. Efficiency is far more important than effectiveness in today's competitive environment.5. Top managers are also called tactical managers since they must translate the general goals into specific objectives and activities. 6. Frontline managers often have titles such as supervision or sales manager.7. As managers rise through an organization, they will probably rely less on their technical skills. 8. In today's work environment, one should only focus on becoming a specialist given that jobs are becoming so specialized. 9. In the evolution of management thought, the systems theory and the contingency theory are classed as contemporary approaches. 10. Organizations are open systems that affect and are affected by their external environments. 11. All organizations operate in a macroenvironment. 12. Firms that develop strategies that don't include technological advances will realize obsolescence and extinction. 13. Over the past decade, immigrants have accounted for approximately 40 percent of the increase in U.S. population growth. 14. The first step in understanding competitive environments includes identifying the competitors. 15. Environmental scanning represents alternative combinations of different factors into a total picture of the environment. Multiple Choice Questions

16.All of the following are key components of the "new world" EXCEPT

A)the rise of the Internet.

B)globalization.

C)the importance of knowledge and ideas.

D)collaboration across organizational boundaries.

E)isolationism.

17.Managing for competitive advantage is done through

A)cost competitiveness.

B)high quality.

C)speed.

D)innovation.

E)all of the above.

18.______________ is the process of working with people and resources to accomplish organizational goals.

A)Planning

B)Management

C)Controlling

D)Decision making

E)None of the above

19.Which of these is NOT a key management function?

A)Controlling

B)Planning

C)Leading

D)Research

E)Organizing

20.Simmons, Inc. Recently embarked on an effort to increase coordination and cooperation within the company. During the process, Simmons managers reviewed and specified job responsibilities, grouped jobs into work units, and re-allocated resources within the company. Simmons managers were exercising the management function of

A)planning.

B)organizing.

C)leading.

D)controlling.

E)budgeting.

21.When Mike Berry of Berry Enterprises realized that his plan to increase teamwork among lower-level managers was not producing the results he desired, he took quick action to make necessary adjustments. Mike was exercising the management function of

A)planning.

B)organizing.

C)leading.

D)controlling.

E)both A and C.

22.Strategic Managers focus on:

A)long-term survival of an organization.

B)translating goals and objectives into specific activities.

C)managing top-level executives.

D)supervising non management employees.

E)a and b, but not c.

23.Operational managers play a crucial role in an organization because they provide:

A)the link between managerial and non-managerial personnel.

B)discipline for problem employees.

C)the key plans for an organization's success.

D)feedback on top management performance.

E)Operational managers do all of the above.

24.Managers will utilize _____________ skills with increasing frequency as they rise within an organization.

A)conceptual & decision

B)interpersonal and communication

C)technical

D)professional

E)all of the above

25.Some multinational organizations are considered "stateless." This means that they:

A)were incorporated outside of the United States.

B)once belonged to the Soviet Union which has been disbanded.

C)operate worldwide without reference to national borders.

D)have offices and/or production facilities in multiple states.

E)have offices and/or production facilities in multiple countries.

26.Which of the following approaches to management is/are considered classical approaches?

A)Scientific management

B)Contingency theory

C)Systems theory

D)Current and future revolutions

E)both A & C

27.In Fayol's fourteen principles of management, which is best identified by the description make expectations clear and punish violations?

A)Unity of direction

B)Scalar chain

C)Esprit de corps

D)Discipline

E)Authority

28.Which of the following is/are considered contribution(s) of bureaucracy?

A)Psychological and social processes influence performance

B)Emphasizes position rather than the person

C)Social needs have precedence over economic needs

D)Promotes efficient performance of routine organizational activities

E)Both B & D

29.The classical approaches to management were criticized because they ________________.

A)were not suited for unpredictable management decisions.

B)neglected nonquantifiable factors.

C)ignored the relationship between the organization and the external environment.

D)ignored the organization's technology.

E)devalued the individual employee.

30.The external environment refers to all forces outside of a firm's boundaries that

A)manager's have personal contacts with.

B)directly affect the firm.

C)has no impact on the firm.

D)managers must pay attention to.

E)none of the above.

31.The macroenvironment includes all of the following EXCEPT:

A)demographics.

B)technology.

C)government policies.

D)international developments.

E)new entrants.

32.Interest rates, inflation, the federal deficit, and unemployment levels are all elements affecting which aspect of the macroenvironment?

A)The social environment

B)The international environment

C)Regulatory agencies

D)The economy

E)Demographics

33.The competitive environment consists of

A)those specific organizations with which the organization directly interacts.

B)those organizations which the organization relies upon to provide supplies and materials.

C)those people who comprise the workers of the organization that complete the organization's activities.

D)those organizations who hold the firm accountable to their stakeholders.

E)those broader influences that affect a firm's competitive advantage.

34.People's Express, a low-cost airline described as one of the excellent companies in the bestseller of the early 1980's, In-Search-Of- Excellence, is no longer in business. Industry analysts state that although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive People's Express out of business through an aggressive price war. This scenario is illustrative of which aspect of the competitive environment?

A)Customers

B)Regulators

C)Competitors

D)The economy

E)Politics

35.Barriers to entry may typically include all of the following EXCEPT

A)brand loyalty.

B)capital requirements.

C)governmental regulation.

D)pricing practices.

E)distribution channels.

36.The First State Bank utilizes the janitorial services of Bob's Scrub and Buff to keep their buildings clean. Bob's provides all the necessary cleaning supplies, training of his crews, background security checks (since the crews work after hours) and all other associated expenses. The other available janitorial services do not typically provide security checks and the bank would have to hire guards to watch the work of the janitors. This expense effectively limits the bank to utilizing only Bob's services. This illustrates the concept of

A)high employment costs.

B)unfavorable supplier status.

C)high switching costs.

D)unfavorable buyer status.

E)none of the above.

37.The main difference between a final consumer and an intermediate consumer is

A)the final consumer usually pays cash for the purchase.

B)an intermediate consumer will utilize the purchase in order to sell their product/service to other consumers.

C)final consumers purchase are more (in dollar value) than do intermediate consumers.

D)intermediate consumers are usually more flexible than final consumers.

E)final consumers have more bargaining power.

38.Environmental uncertainty results from

A)complexity.

B)simplicity.

C)dynamism.

D)cooperation.

E)both a and c.

39._______________ means identifying best in class performance by a company in a given area and then comparing your processes to theirs.

A)Scenarios

B)Forecasting

C)Benchmarking

D)Cooptation

E)Coalition

40.When Davis Company advertises its soap products as better than Wilson Company's products, Davis Co. is demonstrating

A)competitive aggression.

B)competitive pacification.

C)benchmarking.

D)political action.

E)cooptation. Answer Sheet

True/False:

Multiple Choice:

1. _____

16._____

31._____

2. _____

17._____

32._____

3. _____

18._____

33._____

4. _____

19._____

34._____

5. _____

20._____

35._____

6. _____

21._____

36._____

7. _____

22._____

37._____

8. _____

23._____

38._____

9. _____

24._____

39._____

10. _____

25._____

40._____

11. _____

26._____

12. _____

27._____

13. _____

28._____

14. _____

29._____

15. _____

30._____

Answer Key

True/False Questions

1. False page 7

2. False page 11

3. False page 12

4. False page 14

5. False page 18

6. True page 18

7. True page 20

8. False page 22

9. True page 32

10. True page 46 11. True page 47 12. True page 49 13. True page 51 14. True page 53 15. False page 58 Multiple Choice Questions16. E page 6

17. E page 11 18. B page 14 19. D page 14 20. B page 15 21. D page 16 22. D page 17 23. A page 18 24. A page 20 25. C page 8 26. A page 32 27. D page 35 28. E page 37 29. C page 38 30. D page 46 31. E page 46 32. D page 48 33. A page 52 34. C page 52-53 35. D page 53 36. C page 55 37. B page 57 38. E page 57 39. C page 59 40. A page 62 18Bateman, Management, Fifth Edition

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