Mo questions pay attention

Which of the following is true of the impact of formal planning on organizational

performance?

A) Formal planning is associated with positive financial results.

B) Organizations that formally plan invariably outperform those that don't plan.
C) The amount of planning done is more important to high performance than the
quality of planning and implementation
D) Companies can start seeing the impact of formal planning on performance
after about a year of starting the planning process.
Answer: A

Which of the following statements is true regarding an organization's goals?

A) All organizations share the single goal of making profits.

B) A single goal is more efficient than multiple goals for defining an
organization's success.
C) Using a single goal such as profit may result in unethical behaviors by
employees.
D) Long-term success is ensured if managers emphasize only one goal for an
organization.
Answer: C

Most company's goals can be classified as either ________ or ________.

A) strategic; financial
B) operational; tactical
C) social; economic
D) strategic; operational
Answer: A

Nike, Inc. is a sportswear and equipment manufacturer that serves a multitude of

sports disciplines. Which of the following statements from Nike would be the
best example of a strategic goal?
A) a ten percent increase in average annual sales
B) a seven percent increase in average annual income
C) achieving a return on investment of 17 percent
D) accelerating growth through focused execution
Answer: D

An organization's ________ goals are official statements of what an organization

says, and what it wants its stakeholders to believe its goals are.
A) stated
B) real
C) authentic
D) implicit
Answer: A

Which of the following is the best indicator of an organization's real goals?

A) organizational members' actions
B) mission statement
C) annual reports

D) stock valuation
Answer: A

An organization's mission states that it "is committed to reducing its

environmental footprint"; but its facilities do not comply with statutory
environmental regulations. This is an instance of how ________.
A) strategic goals help shape financial goals
B) long-term goals differ from short-term goals
C) an organizations stated goals need not be its real goals
D) a company's real goals are derived from its mission statement
Answer: C

Strategic plans are usually ________.

A) short term, directional, and standing
B) short term, specific, and standing
C) long term, directional, and single use
D) long term, specific, and standing
Answer: C

Operational plans are usually ________.

A) short term, directional, and standing
B) short term, specific, and standing
C) long term, directional, and single use
D) long term, specific, and standing
Answer: B

Which of the following factors has contributed to the decline in the number of
years used to define short-term and long-term plans?
A) environmental uncertainty

B) profit-orientation of businesses
C) flattened organizational structures
D) stagnant business conditions
Answer: A

Which of the following is an assumption associated with traditional goal setting?

A) Employees will be more motivated to try to attain goals that they helped set.
B) Organizational goals must not be communicated to lower level employees.
C) Top managers know what is best because they see the "big picture."
D) Organizational goals must not be broken down into individual goals.
Answer: C

Which of the following statements is true of traditional goal setting?

A) Traditional goal setting assumes that employees know best and employs
a bottom-up approach of setting organizational goals.
B) Evaluation of performance is carried out concurrently with the flow of
goals through the organization.
C) Goals defined narrowly by top managers need to be made more
directional as they flow down through the organization.
D) Managers at each level define goals and apply their own interpretations
and biases as they make them more specific.
Answer: D

Which of the following is the first step in MBO?

A) The organization's overall objectives and strategies are formulated.
B) Unit managers collaboratively set specific objectives for their units with
their managers.
C) Action plans are specified and agreed upon by managers and employees.
D) Major objectives are allocated among divisional and departmental units.
Answer: A

Which of the following is the last step in MBO?

A) Progress toward objectives is periodically reviewed, and feedback is
provided.
B) The organization's overall objectives and strategies are formulated.

C) Successful achievement of objectives is reinforced by performancebased rewards.

D) Action plans are implemented.
Answer: A

Which is the first step managers should follow in goal setting?

A) evaluating available resources
B) determining goals individually or with input from others
C) writing down goals and communicating them to all who need to know
D) reviewing the organization's mission

Well-written goals are ________.

A) written in terms of actions rather than outcomes
B) just of reach
C) easily achieved
D) clear as to a time frame
Answer: D

When uncertainty is high, plans should be ________ and ________.

A) specific; flexible
B) directional; standing
C) short-term; directional
D) general; informal
Answer: A

Which of the following is true of the traditional approach to planning?

A) Plans are developed by organizational members at the various levels.
B) This approach makes managerial planning thorough, systematic, and
coordinated.
C) Plans created through this method are seldom written down.
D) Formal planning departments are rarely used in this approach.
Answer: B

Which of the following statements is true of planning in dynamic environments?

A) Organizations should follow a pyramidal structure when operating in
uncertain environments.
B) Organizations must discontinue formal planning in such a scenario.
C) To be useful in a dynamic environment, plans need to be specific and
unchanging.
D) Flatter organizational hierarchies are necessary for planning in uncertain
environments.
Answer: D
Mr. Tyler Nall is president and CEO of a retail chain that is about to begin
operations in numerous major cities across the United States. The stores will sell
home furnishings that are considered moderately priced for the average-income
buyer. During the last few months he has been working to lay out directions for
the managers of the stores. 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 well
maintained both inside and out.

The statement that each store should have sales equal to or greater than $100 per
square foot per day is an example of ________.
A) a strategic plan
B) a directional plan
C) a financial goal
D) a strategic goal
Answer: C

The statement that all stores should be well maintained both inside and out is an
example of a ________.
A) directional plan
B) specific plan
C) financial goal
D) social goal
Answer: A

Florence is a chain of flower shops in the Chicago area. The company recently
acquired Knick-knacks, which owns three gift shops. Which of the following is
most similar to this acquisition?
A) Construction firm Donaldson acquired Fabrica Textiles as it seemed like
a good investment.
B) Faced with mounting raw material costs, I&A Products took over its
supplier, BR Corporation.
C) Dallas Shoes buys out RunTime Shoes and expands its distribution
channels through RunTime outlets.
D) Toy World acquired Unicorn Children's Books and now retails both toys
and books from co-branded outlets.
Answer: D

In an organization, the single independent businesses which formulate their own

competitive strategies are known as ________.
A) strategic growth units
B) strategic business units
C) focus units
D) service units
Answer: B

Kiva Systems, manufacturer of robots used in flexible automation systems,

demonstrates the power of ________ by "teaching" its robots to dispose of used
cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.
A) design thinking
B) competitive advantage
C) strategic flexibility
D) e-business strategies

Functional-level strategy directly supports the ________.

A) corporate strategy
B) competitive strategy
C) growth strategy
D) concentration strategy
Answer: B

________ is the ability to anticipate, envision, maintain flexibility, think

strategically, and work with others in the organization to initiate changes that will
create a viable and valuable future for the organization.
A) Strategic leadership
B) Scientific management
C) Strategic competence
D) Strategic flexibility

How can an organization develop strategic flexibility?

A) It should commit resources only after thorough planning.
B) It should monitor and evaluate its past strategies.
C) It should depend on tried and tested perspectives from senior employees.
D) It should have multiple alternatives when making strategic decisions.
Answer: D

Which of the following observations best explains why the control function is
important?
A) An effective control system facilitates employee empowerment.
B) Forming an organizational structure is a crucial control activity.
C) Human resource management is a subset of the controlling process.
D) Organizational strategies are formed during the controlling stage.
Answer: A

________ is measured by the costs of acquiring and transforming organizational

resources into outputs.
A) Input
B) Quality
C) Effectiveness
D) Efficiency
Answer: A

Which of the following is considered the easiest way to increase organizational

productivity?
A) increasing the price of outputs
B) increasing the amount of inputs
C) hiring more employees
D) decreasing the value of the products
Answer: A

In order to increase the ratio of outputs to inputs, a manager would have to

________.
A) decrease the selling price
B) increase productivity
C) increase the quality of inputs
D) hire additional employees

Answer: B

The ________ ratios measure an organization's ability to meet its current debt
obligations.
A) activity
B) liquidity
C) leverage
D) profitability
Answer: B

Which of the following ratios examines the organization's use of debt to finance
its assets and its ability to meet the interest payments on the debt?
A) liquidity ratios
B) leverage ratios
C) profitability
D) activity ratios
Answer: B

The ________ approach to performance measurement was introduced as a way

to evaluate organizational performance from more than just the financial
perspective.
A) market value
B) economic value
C) balanced scorecard
D) financial control
Answer: C

Experts have described employee work driven by TNC as a primary contributor

to workplace violence. TNC refers to ________.
A) time, numbers, and crises

B) time, number, and chaos

C) time, neglect, and crises
D) time, neglect, and chaos
Answer: A

Which of the following is an example of a feedforward control measure used to

control possible workplace violence?
A) Clearly communicate the security policies to employees.
B) Use corporate hotlines for reporting and investigating incidences.
C) Review company policies and change, if necessary.
D) Investigate incidences and take appropriate action.
Answer: A

An organization communicates openly to its employees about violent incidences

in the workplace and what's being done to handle them. This is an example of a
________ control strategy.
A) feedback
B) proactive
C) concurrent
D) feedforward
Answer: A

Corporate governance ________.

A) refers to executive governance practices in companies
B) is a system used to govern a corporation so that the interests of corporate
owners are protected
C) is a term that refers to legal agreements made between two or more
partner firms
D) refers to the negative influence of the corporation in society
Answer: B

Two areas in which corporate governance is being reformed are the role of
boards of directors and ________.
A) employee stock options
B) financial reporting
C) executive compensation
D) top level management
Answer: B