Business Essentials 8th Canadian Edition By Ronald J. Ebert – Test Bank

Business Essentials 8th Canadian Edition By Ronald J. Ebert – Test Bank

Chapter 6 Managing the Business Enterprise

6.1 Multiple-Choice Questions 1) Which of the following are managers? A) President of IBM B) Prime minister of Canada C) Head of the business department at a local college D) Shipping dock foreman E) All of these are managers. Answer: E Diff: 1 Type: MC Page Ref: 123 Skill: Comprehension Objective: 6.1 2) Top managers at Cortland are involved in the planning process, and they have just finished setting goals for the company. What should they do next? A) Develop plans to achieve the goals B) Determine whether a gap exists between the company’s current situation and its desired situation C) Assess the effectiveness of the plan before proceeding further D) Implement the plans that are necessary to reach the goals that have been set E) None of these Answer: B Diff: 2 Type: MC Page Ref: 123 Skill: Application Objective: 6.1 3) Lenore is heading up a planning team at her company. The team has just completed the job of developing plans to reach the company’s goals. What should they do next? A) Set new corporate goals B) Determine whether a gap exists between the company’s current situation and its desired situation C) Assess the effectiveness of the plan before proceeding further D) Implement the plan that has been developed E) None of these Answer: D Diff: 2 Type: MC Page Ref: 123 Skill: Application Objective: 6.1 4) Managers at Edson Corp. have decided to embark on a systematic planning process. What should they do first? A) Determine how well employees understand the current plan B) Establish goals for the organization C) Determine whether a gap exists between the company’s desired and actual position D) Develop plans to achieve the desired goal E) Implement new plans Answer: B Diff: 1 Type: MC Page Ref: 123 Skill: Application Objective: 6.1 5) The president of Bob’s Barbecue is reassessing his company’s goals with the expectation that the company strategy will be modified. He is involved in A) staffing. B) planning. C) directing. D) organizing. E) controlling. Answer: B Diff: 1 Type: MC Page Ref: 123 Skill: Comprehension Objective: 6.1 6) Determining what a firm needs to do and how best to accomplish that is called A) controlling. B) staffing. C) directing. D) planning. E) organizing. Answer: D Diff: 1 Type: MC Page Ref: 123 Skill: Knowledge Objective: 6.1 7) Which of the following best captures the difference between efficiency and effectiveness? A) Efficiency means doing what the company’s engineers want, while effectiveness means doing what consumers want. B) Efficiency means maximizing output, while effectiveness means maximizing profit. C) Efficiency means doing things right, while effectiveness means doing the right things. D) Efficiency means doing what production wants, while effectiveness means doing what marketing wants. E) Efficiency means working as fast as possible without regard to product quality, while effectiveness means working more carefully and paying attention to quality. Answer: C Diff: 1 Type: MC Page Ref: 123 Skill: Comprehension Objective: 6.1 8) The purpose of the four-part management process is to A) determine what the organization needs to do. B) create jobs for society. C) monitor the organization’s performance in order to ensure that goals are achieved. D) increase employee satisfaction. E) achieve the organization’s goals of supplying various products and services to society. Answer: E Diff: 2 Type: MC Page Ref: 123 Skill: Comprehension Objective: 6.1 9) When the CEO of Compaq Computers broke the company down into several smaller units, each responsible for its own functions, he was engaging in the management function of A) organizing. B) staffing. C) planning. D) controlling. E) directing. Answer: A Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 10) Determining the jobs to be performed and how best to arrange the jobs into a logical system is known as A) controlling. B) decision making. C) management. D) entrepreneurship. E) organizing. Answer: E Diff: 1 Type: MC Page Ref: 124 Skill: Knowledge Objective: 6.1 11) Organizing involves A) developing an efficient plan for the use of time. B) developing an organizational chart. C) determining who reports to whom and what each employee does. D) structuring the necessary resources to complete a particular task. E) determining how best to use available material resources. Answer: D Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 12) When Millie was appointed president of Goodcare Hospital, she noticed that the former president had all the major functions reporting directly to him. She is analyzing the functions to see how they could be restructured to be more efficient. She is engaged in the management process of A) planning. B) staffing. C) organizing. D) directing. E) controlling. Answer: C Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 13) Guiding and motivating employees to meet an organization’s objectives is called A) controlling. B) planning. C) organizing. D) leading. E) staffing. Answer: D Diff: 1 Type: MC Page Ref: 124 Skill: Knowledge Objective: 6.1 14) The management process which involves interactions between managers and their subordinates is A) leading. B) planning. C) controlling. D) organizing the jobs. E) decision making. Answer: A Diff: 2 Type: MC Page Ref: 124 Skill: Knowledge Objective: 6.1 15) Steve motivates employees by rewarding them with additional vacation time when standards are achieved. Steve is involved in the management function of A) leading. B) controlling. C) planning. D) organizing. E) It is not possible to tell with the information provided. Answer: A Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 16) Doreen has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of what function of the management process? A) Planning B) Organizing C) Leading D) Controlling E) Budgeting Answer: D Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 17) Scott is the store manager at one of the Computers R Us retail stores. Each Monday he meets with all the employees to review the assignments for the week and provide assistance for those who need it. Scott is engaged in the management process of A) planning. B) organizing. C) controlling. D) staffing. E) leading. Answer: E Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 18) Scott, the manager of a Computers R Us store, in reviewing the sales results from last week noticed that all but one employee was on target. As he contemplated how to fix the problem, he was engaged in the management process of A) controlling. B) organizing. C) planning. D) directing. E) staffing. Answer: A Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 19) Cheryl is a newly appointed manager. She wants to do a good job with regard to the controlling function of management. In terms of the control process, what is the first thing she should do? A) Adjust the standards B) Continue with current activities C) Compare performance with standards D) Establish standards E) Measure employee performance Answer: D Diff: 1 Type: MC Page Ref: 124 Skill: Application Objective: 6.1 20) The first step in the control process is to A) establish standards. B) determine the jobs to be performed. C) determine what the organization needs to do. D) measure performance. E) define the problem. Answer: A Diff: 1 Type: MC Page Ref: 124 Skill: Knowledge Objective: 6.1 21) At the end of the budget period, Mary compares actual performance against standards. When she does this, she is performing the ________ function of management. A) planning B) organizing C) leading D) controlling E) negotiation Answer: D Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 22) Amy Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of the ________ management function. A) planning B) organizing C) leading D) controlling E) negotiation Answer: D Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 23) Controlling involves A) monitoring expenses and revenues to ensure that the company is profitable. B) reviewing data to ensure that employees are doing what they are supposed to do. C) reviewing all financial and productivity data to ensure that the company is achieving its goals. D) monitoring the firm’s performance and acting to bring it in line with the firm’s goals. E) ensuring that all policies and procedures are followed within a company. Answer: D Diff: 2 Type: MC Page Ref: 124 Skill: Comprehension Objective: 6.1 24) Which of the following is correct with regard to the question of whether management is an art or a science? A) Management is clearly an art because it does not place much emphasis on quantitative methods. B) Because many management problems can be approached in ways that are rational, logical, objective, and systematic, management is a science. C) Because managers must rely heavily on interpersonal skills and on abstract conceptual thinking, management is an art. D) Management is partly an art and partly a science. E) Management is neither an art nor a science; rather, it is a profession. Answer: D Diff: 2 Type: MC Page Ref: 125 Skill: Comprehension Objective: 6.1 25) Vice-president, treasurer, chief executive officer, and president are found at the ________ level of management. A) first-line B) intermediate C) top D) middle E) officer Answer: C Diff: 1 Type: MC Page Ref: 127 Skill: Knowledge Objective: 6.2 26) The title “division manager” is an example of a ________ management position. A) lower B) middle C) liaison D) first-line E) top Answer: B Diff: 1 Type: MC Page Ref: 128 Skill: Comprehension Objective: 6.2 27) Middle managers can typically have any of the following job titles except A) general manager. B) operations manager. C) plant manager. D) production supervisor. E) division manager. Answer: D Diff: 1 Type: MC Page Ref: 128 Skill: Comprehension Objective: 6.2 28) A transit supervisor who monitors bus schedules, passenger safety, and the behaviour of bus drivers is a ________ manager, while a plant manager in a manufacturing plant is a ________ manager. A) middle; top B) officer; supervisor C) top; middle D) middle; first-line E) first-line; middle Answer: E Diff: 2 Type: MC Page Ref: 127-128 Skill: Comprehension Objective: 6.2 29) A flight-services manager for a specific Air Canada flight is a ________ manager, while a chief financial officer for a consumer products company is a ________ manager. A) middle; top B) officer; supervisor C) first-line; top D) middle; first-line E) first-line; middle Answer: C Diff: 2 Type: MC Page Ref: 127-128 Skill: Comprehension Objective: 6.2 30) Supervisor, office manager, and group leader are at the ________ management level. A) middle B) officer C) top D) intermediate E) first-line Answer: E Diff: 1 Type: MC Page Ref: 128 Skill: Comprehension Objective: 6.2 31) ________ managers are responsible for a company’s system for creating goods and services, while ________ managers are responsible for the development, pricing, promotion, and distribution of products and services. A) Marketing; production B) Production; marketing C) Financial; production D) Human resource; marketing E) Information; marketing Answer: B Diff: 1 Type: MC Page Ref: 129 Skill: Comprehension Objective: 6.2 32) Mark is one of the managers who is responsible for getting his company’s products from producers to consumers. Mark is a(n) ________ manager. A) production B) operations C) information D) marketing E) human resource Answer: D Diff: 1 Type: MC Page Ref: 129 Skill: Comprehension Objective: 6.2 33) Rachelle is one of the managers responsible for hiring, training, evaluation, and compensation of employees. She is a(n) ________ manager. A) research and development B) operations C) financial D) human resource E) information Answer: D Diff: 1 Type: MC Page Ref: 128 Skill: Comprehension Objective: 6.2 34) Leslie is one of the managers responsible for planning and overseeing the firm’s accounting function and publication of the annual report. Leslie is a(n) ________ manager. A) marketing B) financial C) operations D) human resources E) information Answer: B Diff: 1 Type: MC Page Ref: 129 Skill: Comprehension Objective: 6.2 35) The ________ managers are responsible for production, inventory, and quality control. A) operations B) finance C) human resources D) marketing E) information Answer: A Diff: 1 Type: MC Page Ref: 128 Skill: Knowledge Objective: 6.2 36) Mintzberg’s research on managers showed which of the following? A) Managers prefer written media. B) Managers work under varying degrees of pressure, sometimes being very busy, and sometimes much less busy. C) Managers typically begin a task and then work on it until it is finished. D) Managers have a preference for historical data rather than “live action.” E) None of these. Answer: E Diff: 2 Type: MC Page Ref: 129 Skill: Knowledge Objective: 6.3 37) With respect to the concepts of management roles and management functions, it is correct to say that A) focusing on management functions is a more effective way to view management than focusing on management roles. B) the idea of management roles is more relevant for private sector companies, and the idea of management functions is more relevant for government organizations. C) managers who focus on roles have more highly satisfied subordinates than managers who focus on functions. D) management functions give us a good general idea of what managers do, while management roles give us an understanding of the specific details of managerial work. E) all of these are correct. Answer: D Diff: 2 Type: MC Page Ref: 129 Skill: Comprehension Objective: 6.3 38) If a manager attends a subordinate’s wedding, this is an example of the ________ role. A) liaison B) entrepreneur C) figurehead D) leader E) disseminator Answer: C Diff: 1 Type: MC Page Ref: 129 Skill: Comprehension Objective: 6.3 39) When a manager responds to a strike at a supplier, the manager is acting in the ________ role. A) disturbance handler B) liaison C) monitor D) resource allocator E) leader Answer: A Diff: 1 Type: MC Page Ref: 129 Skill: Comprehension Objective: 6.3