The prospect theory suggests that ____.

The prospect theory suggests that ____. 



A. decision makers are influenced by the way a situation or problem is framed
B. decision makers have too much confidence in their own abilities
C. decision makers tend to make judgments based on an initial impression
D. decision makers can't abandon an idea that costs too much money
E. decision makers find the notion of an actual loss more painful than giving up the possibility of a gain



Answer: E

Goal displacement, satisficing, and groupthink are ____.

Goal displacement, satisficing, and groupthink are ____. 




A. advantages of group decision making
B. disadvantages of individual decision making
C. disadvantages of group decision making
D. problems with synergy
E. a normal aspect of all groups


Answer: C

The mission statement expresses the ____.

The mission statement expresses the ____. 



A. expected profitability of the organization
B. purpose of the organization
C. code of ethics
D. market for the product
E. types of employees needed



Answer: B

Satisficing is the tendency of ____.

Satisficing is the tendency of ____. 




A. people to view events as being more predictable than they really are
B. decision makers to be influenced by the way a situation or problem is presented to them
C. a group to settle on a decision that is "good enough"
D. people to see events based on what has happened in the past
E. group members to agree for the sake of unanimity and thus avoid accurately assessing the decision situation


Answer: C

Manner of dress, awards, myths and stories told about the company, and rituals and ceremonies are ____.

Manner of dress, awards, myths and stories told about the company, and rituals and ceremonies are ____. 



A. observable artifacts of organizational culture
B. espoused values of organizational culture
C. enacted values of organizational culture
D. basic assumptions about organizational culture
E. invisible artifacts of that industry's culture and values



Answer: A

Planning done by first-line managers to determine how to accomplish specific tasks with available resources within the next 1 to 52 weeks is known as _____.

Planning done by first-line managers to determine how to accomplish specific tasks with available resources within the next 1 to 52 weeks is known as _____. 




A. writing a belief statement
B. developing their goals pact
C. producing their code of ethics
D. doing management pledging
E. doing operational planning



Answer: E

A defensive strategy is also known as a(n) _____.

A defensive strategy is also known as a(n) _____. 




A. retrenchment strategy
B. fixed plan
C. aggressive approach
D. growth strategy
E. stability strategy


Answer: A

Contingency planning is also known as _____.

Contingency planning is also known as _____. 



A. organizational opportunities
B. scenario goal-setting and plans
C. a trend analysis
D. scenario planning and scenario analysis
E. strategic planning



Answer: D

The vertical hierarchy is also known as _____.

The vertical hierarchy is also known as _____. 



A. an upward graph
B. the X-Y chart
C. the chain of command
D. the network structure
E. the corporate steps




Answer: C

A hierarchy of authority is ____.

A hierarchy of authority is ____. 




A. also known as a division of labor
B. a control mechanism for making sure the right people do the right things at the right time
C. a diversity structure used in planning with recruiting, selection, and hiring
D. also known as work specialization
E. the arrangement of having discrete parts of a task done by different people



Answer: B

Division of labor is also known as ____.

Division of labor is also known as ____. 




A. a task chart
B. a horizontal hierarchy
C. an organizational graph
D. work specialization
E. chain of command



Answer: D

In an organization, division of labor is ____.

In an organization, division of labor is ____. 



A. the coordination of individual efforts into a group or organization-wide effort
B. the common purpose which unifies employees
C. an organizational structure with few or no levels of middle management
D. a structure where employees report to no more than one manager
E. the arrangement of having discrete parts of a task done by different people




Answer: E

A forecast is a(n) _____.

A forecast is a(n) _____. 



A. glimpse of what just happened
B. execution of strategy and making adjustments
C. projection for the future
D. analysis of the past
E. plan for implementing strategic plans



Answer: C

A decision tree is ____.

A decision tree is ____. 



A. a structure of problem-solving ideas, with its roots based on the organization's mission
B. the hierarchy that must be followed when getting decisions approved
C. a graph of decisions and their possible consequences
D. a location used by Chinese philosopher Confucius in times of intense pressure
E. an organization's decision network




Answer: C

The profits of ABC Grocery have dropped significantly over the last several months. After investigating, the owner realizes that the store is moving in the wrong direction in many departments, so there needs to be greater focus by management. This is an example of how an organization can progress in the wrong direction with ____.

The profits of ABC Grocery have dropped significantly over the last several months. After investigating, the owner realizes that the store is moving in the wrong direction in many departments, so there needs to be greater focus by management. This is an example of how an organization can progress in the wrong direction with ____. 




A. little company diversity
B. no focus on JIT
C. no code of ethics
D. a poor plan
E. too much employee diversity


Answer: D

There are two kinds of spans of control are _____.

There are two kinds of spans of control are _____. 




A. tall and short
B. flat and broad
C. tall and hollow
D. hierarchy and nonhierarchy
E. narrow and wide



Answer: E

The model of decision making that explains how managers should make decisions, assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests, is known as the ____.

The model of decision making that explains how managers should make decisions, assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests, is known as the ____. 




A. employee relations model
B. focused decision-making model
C. interpersonal-decision agenda
D. solutions agenda
E. rational decision-making model



Answer: E

Espoused values are _____.

Espoused values are _____. 




A. a narrative based on true events, which emphasize a particular value
B. physical manifestations of organizational culture
C. the values and norms actually exhibited in the community
D. explicitly stated values and norms preferred by an organization
E. profit and cost expectations stated in the business plan



Answer: D

Organizations using a matrix structure _____.

Organizations using a matrix structure _____. 



A. contain multiple overlapping command structures, in which employees report to several managers
B. centralize authority into a single person
C. contain two command structures, in which some people actually report to two bosses
D. establish a hierarchy in which employees report to only one supervisor
E. utilize teams or workgroups with few lines of authority




Answer: C

Planning done by middle managers to determine what contributions their departments or similar work units can make with their given resources during the next 6 to 24 months is ____.

Planning done by middle managers to determine what contributions their departments or similar work units can make with their given resources during the next 6 to 24 months is ____. 




A. writing a belief statement
B. developing a goals pact
C. producing a code of ethics
D. tactical planning
E. management pledging



Answer: D

The clan culture has a(n) _____.

The clan culture has a(n) _____. 


A. internal focus and values flexibility
B. strong external focus and values stability and control
C. external focus and values flexibility
D. internal focus and values stability and control
E. continual focus on efficiency, cost cutting, and outsourcing




Answer: A

In the third step of rational decision making (evaluating alternatives and select a solution), you need to evaluate each alternative not only according to cost and quality but also according to the following questions: _____

In the third step of rational decision making (evaluating alternatives and select a solution), you need to evaluate each alternative not only according to cost and quality but also according to the following questions: _____ 



A. Is it efficient and how will it affect our marketing strategy?
B. Is it feasible, effective, and efficient?
C. Is it ethical and will it hurt diversity?
D. Is it ethical, feasible, and effective?
E. Is it feasible and profitable?




Answer: D

Rites and rituals are ____.

Rites and rituals are ____. 




A. company values included in the code of ethics
B. the activities and ceremonies that celebrate important occasions and accomplishments for an organization
C. objects, acts, or the quality that conveys meaning to others
D. a narrative based on true events that emphasize a particular value
E. company expectations for employees, such as working hard, ethically, and honestly



Answer: B

The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes, is known as _____.

The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes, is known as _____. 



A. rational decision making
B. MBO
C. nonrational decision making
D. analytics
E. bounded rationality



Answer: E

The father of scientific management is _____.

The father of scientific management is _____. 



A. Frank Gilbreth
B. Tom Gallagher
C. Abraham Maslow
D. Peter Drucker
E. Frederick Taylor




Answer: E

Countertrading is ___ goods for goods.

Countertrading is ___ goods for goods. 



A. outsourcing
B. sourcing
C. bartering
D. selling
E. licensing



Answer: C

A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders. This is an example of ____.

A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders. This is an example of ____. 




A. operations management
B. scientific management
C. production management
D. inventory oversight
E. inventory analysis




Answer: A

Hugo Munsterberg was known as ____.

Hugo Munsterberg was known as ____. 



A. the father of scientific management
B. a pioneer of scientific management
C. the father of MBO
D. the father of industrial psychology
E. the originator of sociology




Answer: D

On an organization's board of directors, inside directors ____outside directors _____.

On an organization's board of directors, inside directors ____outside directors _____. 



A. are supposed to be elected from outside the organization/ may be members of the firm
B. must work for the company/ are also members of the firm
C. may be members of the firm/ are supposed to be elected from outside the firm
D. are always retired executives/ typically are employees
E. must work for the organization/ are paid members of the organization



Answer: C

Ethnocentrism is also known as _____.

Ethnocentrism is also known as _____. 



A. geocentrism
B. ecocentrism
C. parochialism
D. open-mindedness
E. a flexible management style




Answer: C

One way to think of management is ___.

One way to think of management is ___. 




A. efficiency in motion
B. the science of helping people
C. the science of accomplishing things
D. the art of getting things done through people
E. the science of synergy




Answer: D

An import quota is a(n) ____.

An import quota is a(n) ____. 



A. trade barrier
B. embargo
C. trade encouragement
D. export fee
E. type of dumping




Answer: A

Gabriel, the CEO of a large global production company, is excited about the introduction of statistics and computer simulations in the design stage of their products. This is an example of _____.

Gabriel, the CEO of a large global production company, is excited about the introduction of statistics and computer simulations in the design stage of their products. This is an example of _____. 




A. the design approach
B. quantitative techniques
C. MBO
D. scientific management
E. behavioral management



Answer: B

Luxere Hotels International, an American company, sells the rights to other hospitality companies globally to open hotels with the Luxere name for a fee and a share of the profit, in return for using Luxere's brand name and a package of materials and services. This defines ____.

Luxere Hotels International, an American company, sells the rights to other hospitality companies globally to open hotels with the Luxere name for a fee and a share of the profit, in return for using Luxere's brand name and a package of materials and services. This defines ____. 



A. franchising
B. importing
C. offshoring
D. exporting
E. countertrading




Answer: A

An entrepreneur is best described as ___.

An entrepreneur is best described as ___. 




A. someone who works inside an existing organization and sees a new product opportunity
B. a type of intrapreneur
C. a type of research assistant
D. someone who takes risks to try to create a new enterprise
E. someone who develops a new enterprise without risks



Answer: D

Donna manages the service desk and makes routine decisions related to customer refunds and merchandise returns. Donna also oversees the daily tasks of the cashiers and front desk employees. Donna is a(n) ____ manager.

Donna manages the service desk and makes routine decisions related to customer refunds and merchandise returns. Donna also oversees the daily tasks of the cashiers and front desk employees. Donna is a(n) ____ manager. 




A. team leader
B. first-line
C. board
D. middle
E. upper



Answer: B

The justice approach to deciding ethical dilemmas is guided by _____.

The justice approach to deciding ethical dilemmas is guided by _____. 






A. increasing profits and workplace diversity
B. respect for the fundamental rights of human beings
C. respect for impartial standards of fairness and equity
D. respect for society and the environment
E. what will result in the individual's best long-term interests



Answer: C

Technology Experts is a U.S. company that specializes in IT research. It has formed a joint venture with Processor Inc., a Canadian organization that has a reputation of producing quality PCs, to market laptops in China, sharing the risks and rewards of starting the new enterprise together. This is an example of a(n) ___.

Technology Experts is a U.S. company that specializes in IT research. It has formed a joint venture with Processor Inc., a Canadian organization that has a reputation of producing quality PCs, to market laptops in China, sharing the risks and rewards of starting the new enterprise together. This is an example of a(n) ___. 


A. strategic alliance
B. global strategy
C. export strategy
D. import strategy
E. franchising strategy




Answer: A

Globalization is the trend ___.

Globalization is the trend ___. 



A. of the world economy becoming a less dependent system
B. of the world economy adding more independent markets
C. toward one world language and culture
D. of the world economy toward becoming a more interdependent system
E. toward one world economy and banking system



Answer: D

Corporate governance is the system ____.

Corporate governance is the system ____. 



A. of governing an industry, such as the trucking industry, to protect customers
B. that protects citizens against unethical state government
C. of governing a company so that the interests of corporate owners and other stakeholders are protected
D. of monitoring an industry, such as attorneys, to ensure ethical practices
E. of monitoring corporate political donations




Answer: C

Donald enjoys the excitement and challenge of forming a firm in Europe that is totally owned and controlled by his company because he knows that although the investment will be substantial, it could result in a large return. This type of organization is an example of a ____.

Donald enjoys the excitement and challenge of forming a firm in Europe that is totally owned and controlled by his company because he knows that although the investment will be substantial, it could result in a large return. This type of organization is an example of a ____. 



A. joint venture
B. total investment agreement
C. strategic alliance
D. wholly-owned subsidiary
E. maquiladoras



Answer: D

Management is defined as the pursuit of organizational goals ____.

Management is defined as the pursuit of organizational goals ____.



A. efficiently and effectively
B. correctly and with synergy
C. economically
D. efficiently and in a detailed-oriented manner
E. with passion and effectiveness


Answer: A

Sometimes a country's laws forbid foreigners from ownership within their nation, and the only way an American company can have a presence in that foreign country is with a(n) ___.

Sometimes a country's laws forbid foreigners from ownership within their nation, and the only way an American company can have a presence in that foreign country is with a(n) ___. 




A. export agreement
B. MBO pact
C. import agreement
D. bartering union
E. joint venture



Answer: E

Ethics are _____.

Ethics are _____. 



A. influences arising from changes in the characteristics of a population
B. a type of written code for an organization
C. standards of right and wrong that influence behavior
D. behavior accepted as "right"



Answer: C

The field of behavioral science includes _____.

The field of behavioral science includes _____. 



A. psychology, sociology, forensic science, economics
B. psychology, forensic science, sociology, anthropology, economics
C. psychiatry, technology, environmental science, forensic science
D. chemistry, biology, earth science, management
E. psychology, sociology, anthropology, economics



Answer: E

Olivia, the general manager of a bowling center, believes in her workers and that they are responsible and capable employees, so that they can be trusted when given responsibility. Olivia is an example of a(n) ___ manager.

Olivia, the general manager of a bowling center, believes in her workers and that they are responsible and capable employees, so that they can be trusted when given responsibility. Olivia is an example of a(n) ___ manager. 




A. Theory Z
B. hierarchy
C. Theory X
D. accountable
E. Theory Y



Answer: E

Those who study management will understand how to ___.

Those who study management will understand how to ___. 




A. relate to their managers and deal with organizations from the outside
B. better manage money
C. relate to coworkers and deal with technology
D. sell their product
E. counsel workers on personal and family issues


Answer: A

Technical skills consist of ____.

Technical skills consist of ____. 




A. the ability to think analytically
B. the ability to think analytically, to visualize an organization as a whole, and to understand how the parts work together
C. job-specific knowledge needed to perform well in a specialized field
D. the ability to work well in cooperation with other people to get things done
E. the ability to think in a logical manner



Answer: C

Local communities are stakeholders of organizations because communities _____.

Local communities are stakeholders of organizations because communities _____.




A. rely on the products the companies produce
B. rely on the tax base from companies, and their employee payrolls, to thrive
C. wish to join forces with organizations to create strategic alliances
D. need the publicity of national organizations
E. enjoy the changes that progress tends to bring



Answer: B

Free trade is the ____.

Free trade is the ____. 




A. movement of customers between nations that do not have trade embargoes
B. policy of cost-free exchange of goods
C. bartering of goods or services locally or globally
D. bartering or sale of goods without taxes
E. movement of products between countries without political or economic obstruction




Answer: E

The Sarbanes-Oxley Act of 2002 established requirements for ____, and for noncompliance, penalties of ______.

The Sarbanes-Oxley Act of 2002 established requirements for ____, and for noncompliance, penalties of ______. 



A. proper financial record keeping for private companies/ as much as 25 years in prison
B. proper financial record keeping for government organizations/as much as 25 years in prison
C. code of ethics guidelines for organizations/as much as 2 million dollars
D. proper financial record keeping for public companies/as much as 25 years in prison
E. all corporate financial records to be made public/as much as 2 million dollars



Answer: D

Greg, the IT manager, feels that his employees lack the motivation to consistently meet department goals, therefore, the approach Greg and his supervisors need to take to better understand human actions to motivate their employees toward achievement is the ____ viewpoint.

Greg, the IT manager, feels that his employees lack the motivation to consistently meet department goals, therefore, the approach Greg and his supervisors need to take to better understand human actions to motivate their employees toward achievement is the ____ viewpoint. 



A. synergy
B. attitude
C. behavioral
D. classical
E. scientific





Answer: C

Conceptual skills consist of ____.

Conceptual skills consist of ____. 



A. the ability to think practically
B. the ability to think analytically, to visualize an organization as a whole, and to understand how the parts work together
C. the job-specific knowledge needed to perform well in a specialized field
D. the ability to work well in cooperation with other people to get things done
E. the ability to think in a logical manner




Answer: B

Sustainability is economic development that ____.

Sustainability is economic development that ____. 





A. meets future needs without compromising present needs
B. generates greater profitability
C. produces greater diversity
D. meets present needs without compromising the ability of future generations to meet their own needs
E. is a idea of Frank and Lillian Gilbreth that proposes how to cut costs but increase efficiency


Answer: D

Mary Parker Follett anticipated some of today's concepts, such as _____.

Mary Parker Follett anticipated some of today's concepts, such as _____. 




A. worker empowerment and scientific management
B. self-managed teams and worker empowerment
C. quality assurance and transformation processes
D. management-lead teams and diversity
E. synergy and MBO



Answer: B

An organization's internal stakeholders consist of ___.

An organization's internal stakeholders consist of ___. 



A. board of directors, employees, suppliers
B. board of directors, customers, owners
C. customers, families of employees, employees
D. board of directors, employees, owners
E. competitors, the community, suppliers




Answer: D

The principal functions of management are ___.

The principal functions of management are ___. 




A. executing, planning, organizing, leading
B. scheduling, organizing, leading, staffing, monitoring
C. staffing, planning, motivating, delegating
D. planning, organizing, leading, controlling
E. staffing, planning, leading, delegating



Answer: D

Abraham Maslow proposed the ____.

Abraham Maslow proposed the ____. 




A. hierarchy of human needs
B. Hawthorne effect
C. hierarchy of production
D. self-managed teams
E. worker empowerment theory



Answer: A

Quotas are designed to prevent _____.

Quotas are designed to prevent _____. 



A. outsourcing
B. tariffs
C. exporting
D. an embargo
E. dumping



Answer: E