Principles Of Management Exam 2

Front 1

Contingency plans might be called "what if" plans.
T/F?

Back 1

True

Front 2

Strategic goals are major targets or end results that relate to the long-term survival, value, and growth of the organization.
T/F?

Back 2

True

Front 3

Operational planning identifies the specific procedures and processes required at lower levels of the organization.
T/F?

Back 3

True

Front 4

Today's senior executives resist involving lower-level managers in the strategy formation process because of the dramatic increase in time required to make decisions and the loss of productivity.
T/F?

Back 4

True

Front 5

An internal resource analysis includes assessing the major functional areas inside the organization.
T/F?

Back 5

True

Front 6

A corporate strategy identifies the type of relationship with regulatory and other government agencies that would create or maintain a profitable foundation for the firm.

Back 6

True

Front 7

Which of the steps in the formal planning process involves studying past events, examining current conditions, and forecasting future trends?
A. Situational analysis.
B. Alternative goals and plans.
C. Goal and plan evaluation.
D. Goal and plan selection.
E. Monitor and control.

Back 7

A. Situational analysis.

Front 8

Which of the following is a characteristic of an effective goal?
A. Flexible.
B. Just out of reach.
C. Open-ended.
D. Collaborative.
E. Time-based.

Back 8

E. Time-based.

Front 9

Once alternative goals and plans have been identified, the next step in the formal planning process is:
A. The situational analysis.
B. Goal and plan evaluation.
C. Implementation.
D. Monitor and control.
E. Goal and plan selection.

Back 9

B. Goal and plan evaluation.

Front 10

Essential to developing a system that will monitor and control the implementation of plans developed in the formal planning process is the establishment of:
A. Sanctions for improper performance.
B. Control systems.
C. A "control leader."
D. Contingency plans for various scenarios.
E. Strategic planning motives.

Back 10

B. Control systems.

Front 11

_______________ planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, such as a functional area.
A. Operational
B. Tactical
C. Traditional
D. Bottom-up
E. Objective

Back 11

B. Tactical

Front 12

A clear and concise expression of what an organization does, whom it does it for, its basic good or service, and its values is known as its:
A. Vision.
B. Mission.
C. Strategy.
D. Policy.
E. Objective.

Back 12

B. Mission.

Front 13

Strategic goals evolve from an organization's:
A. Suppliers.
B. Customers.
C. Tactical plans.
D. Mission and vision.
E. Competitors.

Back 13

D. Mission and vision.

Front 14

Inputs to production that can be accumulated over time to enhance performance are known as:
A. Strategies.
B. Core competencies.
C. Resources.
D. Benchmarks.
E. Lean inputs.

Back 14

C. Resources.

Front 15

Most people have unconscious biases that give others the benefit of the doubt while simultaneously giving themselves little credit.
T/F?

Back 15

False

Front 16

Two basic ethical ideals underpin the Caux Principles: fairness and equality.
T/F?

Back 16

False

Front 17

The Sarbanes-Oxley Act, passed in 2002, includes provisions for senior managers to personally sign off on financial results.
T/F?

Back 17

True

Front 18

A compliance-based ethics program often fails to create a moral commitment to ethical conduct.
T/F?

Back 18

True

Front 19

Moral awareness means knowing what actions are morally defensible.
T/F?

Back 19

False

Front 20

The goal of ecocentric management is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
T/F?

Back 20

True

Front 21

Which of the following statements about unethical corporate behavior is most true?
A. When corporations behave unethically, only the top executives suffer.
B. When corporations behave unethically, only the shareholders suffer.
C. When corporations behave unethically, rank-and-file employees and investors often suffer more than top executives.
D. When corporations behave badly, top executive or rank-and-file employees are shielded from the fallout.
E. There is no evidence that corporations today ever behave unethically.

Back 21

C. When corporations behave unethically, rank-and-file employees and investors often suffer more than top executives.

Front 22

Tyler believes in justice and opportunity for all, and he uses these principles to make decisions about right and wrong in his daily life. These principles are part of his:
A. Moral philosophy.
B. Business ethics
C. Ying.
D. Ecocentric philosophy.
E. Personality.

Back 22

A. Moral philosophy.

Front 23

__________ acknowledges the existence of different ethical viewpoints and uses norms as guidelines.
A. Virtue ethics
B. Relativism
C. Universalism
D. Utilitarianism
E. Egoism

Back 23

B. Relativism

Front 24

Which of the following is one of Kohlberg's stages of cognitive moral development?
A. Unconventional.
B. Emotional.
C. Relative.
D. Principled.
E. Developed.

Back 24

D. Principled.

Front 25

The __________ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
A. Corporate culture
B. Ethical climate
C. Ethics code
D. Legal responsibility
E. Moral obligation

Back 25

B. Ethical climate

Front 26

Integrity-based ethics programs use:
A. Stated ethical rules and policies.
B. Corporate social responsiveness.
C. A set of guiding principles.
D. Monitoring and punishment.
E. Discretionary social responsibility.

Back 26

C. A set of guiding principles.

Front 27

Behaving ethically requires not just moral awareness and moral judgment, but also the _________ to take actions consistent with your ethical decisions.
A. Ability
B. Enthusiasm
C. Desire
D. Courage
E. Instruction

Back 27

D. Courage

Front 28

Corporate social responsibility is the:
A. Taking of an active role in training employees to be ethical.
B. Obligation toward society assumed by business.
C. Following of laws that govern the industry in which a company operates.
D. Encouragement of recycling efforts within the organization.
E. Maximization of shareholder wealth.

Back 28

B. Obligation toward society assumed by business.

Front 29

Which level of the pyramid of global corporate social responsibility and performance represents a company's efforts to be a good global corporate citizen, such as supporting community programs?
A. Economic responsibility.
B. Legal responsibility.
C. Ethical responsibility.
D. Philanthropic responsibility.
E. Charitable responsibility.

Back 29

D. Philanthropic responsibility.

Front 30

The attempt to provide an education that teaches students to leave a legacy that extends beyond the bottom line is called a(n) _________ education.
A. Ethical
B. Socially responsible
C. Transcendent
D. Committed
E. Management

Back 30

C. Transcendent

Front 31

Who argued that sympathy, defined as a proper regard for others, is the basis of a civilized society?
A. Adam Smith.
B. Milton Friedman.
C. Benjamin Franklin.
D. Thomas Jefferson.
E. Frederick Taylor.

Back 31

A. Adam Smith.

Front 32

One consequence of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies, such as that of the United States.
T/F?

Back 32

True

Front 33

Members of APEC include South Korea, Taiwan, the United States, Australia, and Russia.
T/F?

Back 33

True

Front 34

When pressures for local responsiveness are high and pressures for global integration are low, the global model is appropriate.
T/F?

Back 34

False

Front 35

Companies that adopt the global model tend to be those pursuing a cost focus as a competitive strategy.
T/F?

Back 35

True

Front 36

When a company's competitive advantage is based on technology and it wishes to enter the global marketplace, the least preferred strategy is the wholly owned subsidiary.
T/F?

Back 36

False

Front 37

One way to prevent failed global assignments is to use effective, validated screening and selection criteria.
T/F?

Back 37

True

Front 38

________ occurs when the organization contracts with an outside provider to produce one or more of an organization's products or services.
A. International development
B. Outsourcing
C. Offshoring
D. Expatriation
E. Franchising

Back 38

B. Outsourcing

Front 39

Under (the) ________, member countries agreed to adopt a common European currency called the euro.
A. NAFTA
B. Maastricht Treaty
C. GATT Agreement
D. APEC Treaty
E. European Unification Act

Back 39

B. Maastricht Treaty

Front 40

Labor costs in China are about ________ those in Mexico.
A. One-third of
B. Three times
C. The same as
D. Seven times
E. 10 times

Back 40

A. One-third of

Front 41

Which of the following existing agreements includes Costa Rica, Nicaragua, and the United States?
A. NAFTA.
B. CAFTA-DR.
C. FTAA.
D. APEC.
E. ASEAN.

Back 41

B. CAFTA-DR.

Front 42

Which of the following is a global strategy used as an approach to international competition?
A. International model.
B. Multinational model.
C. Global model.
D. Transnational model.
E. All of these are global strategies.

Back 42

E. All of these are global strategies.

Front 43

The multinational model of organization structure consists of:
A. Large low-cost manufacturing facilities located in selected locations with products exported to various subsidiaries.
B. Subsidiaries located in countries where the company does business with much of the control exercised by the parent company.
C. Subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries.
D. Manufacturing various components at appropriate sites and assembling the components at national subsidiaries.
E. Extensive use of offshoring.

Back 43

C. Subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries.

Front 44

Heineken, a Netherlands-based brewing company, produces more than 170 different brands around the world, some of them international but many of them specialty brews for regional and local tastes. This illustrates the:
A. International model.
B. Multinational model.
C. Global model.
D. Transnational model.
E. Intranational model.

Back 44

B. Multinational model.

Front 45

When a company such as Procter & Gamble approaches the European market as a unified whole, thus reducing costs and improving efficiency, it is using the __________ model of organizational structure.
A. International
B. Multinational
C. Transnational
D. Global
E. Intranational

Back 45

D. Global

Front 46

The transnational model of organizational structure may be characterized by:
A. Large low-cost manufacturing facilities in selected locations with products exported to various markets.
B. Subsidiaries located in countries where the company does business with much of the control exercised by the parent company.
C. Subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries.
*D. Manufacturing major components at appropriate lower-cost sites and assembling the components at national subsidiaries to assure local responsiveness.
E. Marketing a standardized product throughout the world.

Back 46

A. Large low-cost manufacturing facilities in selected locations with products exported to various markets.
B. Subsidiaries located in countries where the company does business with much of the control exercised by the parent company.
C. Subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries.
*D. Manufacturing major components at appropriate lower-cost sites and assembling the components at national subsidiaries to assure local responsiveness.
E. Marketing a standardized product throughout the world.

Front 47

Mercury Fire Protection manufactures engines for its fire trucks in a central location in order to attain cost economies and then sends these engines to various subsidiaries for final assembly of the truck bodies in order to meet local safety specifications. Mercury uses the __________ model for global strategy.
A. Global
*B. Transnational
C. International
D. Maquilladora
E. Worldwide

Back 47

A. Global
*B. Transnational
C. International
D. Maquilladora
E. Worldwide

Front 48

An advantage of exporting as a global expansion entry mode is that:
A. Economies of scale may be realized.
B. The target site may have lower production costs.
C. Transportation costs are generally lower.
D. It is considered responsive to local needs.
E. Trade barriers may be removed.

Back 48

A. Economies of scale may be realized.

Front 49

The most significant disadvantage of franchising concerns:
A. The very low level of profit potential.
B. The loss of control over technology that may affect an organization's ability to sustain a competitive advantage.
C. High development costs related to a higher level of risk in worldwide operations.
D. Loss of identification with local markets.
E. Quality control.

Back 49

E. Quality control.

Front 50

Individuals sent from a company's parent country to work in overseas operations are referred to as:
A. Third-country nationals.
B. Host-country nationals.
C. Globalite executives.
D. Expatriates.
E. Inpatriates.

Back 50

D. Expatriates.

Front 51

__________ is the tendency to judge others by the standards of one's group or culture, which are seen as superior.
A. Individualism
B. Power distance
C. Uncertainty avoidance
D. Ethnocentrism
E. Expatriotism

Back 51

D. Ethnocentrism

Front 52

In Hofstede's depiction of countries' individualism/collectivism and power distance, the United States is most like:
A. France.
B. Mexico.
C. New Zealand.
D. Austria.
E. Japan.

Back 52

C. New Zealand.

Front 53

Scenario C

Rebecca is an American who has just accepted her first international assignment in Sweden. On her first day in the office, she met several new colleagues. Lars is the manager of the office and is a Swedish citizen; he has been with the company for five years. Wen is from China and has also just come to Sweden to work for the company, which is based in the United States.
Rebecca would be referred to as a(n):
A. Third-country national.
B. Host-country national.
C. Globalite executive.
D. Expatriate.
E. Inpatriate.

Back 53

D. Expatriate.

Front 54

Scenario C

Rebecca is an American who has just accepted her first international assignment in Sweden. On her first day in the office, she met several new colleagues. Lars is the manager of the office and is a Swedish citizen; he has been with the company for five years. Wen is from China and has also just come to Sweden to work for the company, which is based in the United States.
Lars would be referred to as a(n):
A. Third-country national.
B. Host-country national.
C. Globalite executive.
D. Expatriate.
E. Inpatriate.

Back 54

B. Host-country national.

Front 55

There is a difference between a small business and an entrepreneurship venture.
T/F?

Back 55

True

Front 56

Successful entrepreneurs are innovators and also have good knowledge and skills in management, business, and networking.
T/F?

Back 56

True

Front 57

Natural disasters can provide an attractive opportunity for entrepreneurs.
T/F?

Back 57

True

Front 58

Entrepreneurs often exhibit creativity, self-reliance, and the ability to adapt.
T/F?

Back 58

True

Front 59

Poor economic conditions make it especially difficult for an entrepreneurial organization to expand.
T/F?

Back 59

False

Front 60

Initial public stock offerings provide a way to raise capital through federally registered and underwritten sales of shares in the company.
T/F?

Back 60

True

Front 61

Skunkworks are project teams designated to produce new, innovative products.
T/F?

Back 61

True

Front 62

Casey worked as an engineer for Kent Solutions, a company that produced household appliances. He had many innovative ideas for the company, but most were never explored to his satisfaction. He left the corporation to pursue his own business and try his own ideas. His new business venture would be considered:
A. Entrepreneurship.
B. A spin-off.
C. Corporate espionage.
D. A corporate skunkworks.
E. Corporate theft.

Back 62

A. Entrepreneurship.

Front 63

A new business having growth and high profitability as primary objectives is a(n):
A. Start-up.
B. Corporation.
C. Governmental agency.
D. Entrepreneurial venture.
E. Business speculation.

Back 63

D. Entrepreneurial venture.

Front 64

Intrapreneurs are:
A. Independent entrepreneurs.
B. Bootleggers.
C. Corporate entrepreneurs.
D. External entrepreneurs.
E. Business incubators.

Back 64

C. Corporate entrepreneurs.

Front 65

Justin recently started his own business. He has nearly recreated a company he worked for when he was in college, except that with his great business acumen he has been able to run the company much more efficiently and thus profitably. Justin would best be classified as a:
A. Promoter.
B. Entrepreneur.
C. Manager-administrator.
D. Intrapreneur.
E. Inventor.

Back 65

C. Manager-administrator.

Front 66

Leah is interested in running a business and wants to open the same type of store her sister has in another town, a Bliss Spa, a popular new chain. Leah wants to become a(n):
A. Business incubator.
B. Innovator.
C. Franchisor.
D. Franchisee.
E. Intrapreneur.

Back 66

D. Franchisee.

Front 67

Which of the following characteristics contributes to entrepreneurs' success?
A. Commitment to work-life balance.
B. Tolerance of risk, ambiguity, and uncertainty.
C. Discounting of own weaknesses.
D. Comfort with the status quo.
E. Obsession with earning money.

Back 67

B. Tolerance of risk, ambiguity, and uncertainty.

Front 68

Svyt worked in a hospital for several years before starting a medical equipment company. He was successful because he understood the problems that existed in the hospital environment, had clever solutions from which his customers benefited, and worked hard every day to find more. Which of the following characteristics does Svyt have?
A. Leadership.
B. Commitment and determination.
C. Opportunity obsession.
D. Creativity, self-reliance, and ability to adapt.
E. Motivation to excel.

Back 68

C. Opportunity obsession.

Front 69

Benjamin wishes to open a new home furnishings company that will have no services that are particularly distinctive compared with competitors in this well-established field, and the business will require a sizable investment. Which part of the entrepreneurial strategy matrix would the new company be located in?
A. Top left quadrant.
B. Top right quadrant.
C. Bottom left and top left quadrants.
D. Bottom right quadrant.
E. Bottom right and top left quadrants.

Back 69

E. Bottom right and top left quadrants.

Front 70

Based on the entrepreneurial strategy matrix, which of the following products is most likely to have the highest risks and returns?
A. Velcro fasteners.
B. A tax preparation service.
C. A new pharmaceutical drug.
D. A new restaurant.
E. A lawn-mowing service.

Back 70

C. A new pharmaceutical drug.

Front 71

Benefits of business incubators include:
A. Free rent.
B. High security.
C. Venture capital.
D. Access to shared services.
E. Guaranteed profitability.

Back 71

D. Access to shared services.

Front 72

IPO is an acronym that stands for:
A. Instant public obligation.
B. Initial public obligation.
C. Initial public stock offering.
D. Immediate principal obligation.
E. Intermediate public stock offering.

Back 72

C. Initial public offering.