“1) The belief that businesses have the financial, technical, and managerial resources to
support needed public and charitable
projects is known as which argument?
a. ethical obligations
b.
possession of resources
c. public image
d. public expectations
2) There is ________ to say that a
companys socially responsible actions significantly
hurt its long-term economic
performance.
a. a lot of evidence
b. not any evidence
c.
little evidence
d. mounting evidence
3) With the stakeholder approach of
dealing with environmental issues, the organization
chooses to respond to ________.
a. multiple demands made by social
activists
b.
multiple demands made by stakeholders
c. the demands made by governmental
stakeholders
d. the demands made by the strongest
stakeholders
4) Values shared among the
organizational members can serve as ________.
a. a reason to follow federal and state
environmental laws
b. a guidepost for managerial decisions
to invest in new technology
c.
a guidepost for managerial decisions and actions
d. a way to shape managerial decisions
to invest in economic conditions
5) Ethics training sessions can provide
what benefit?
a. They evaluate decisions and
management practices in terms of the code of ethics.
b. They create ego strength in
employees.
c. They strengthen the employees locus
of control.
d.
They clarify acceptable and unacceptable practices.
6) Many companies have ________ to
encourage whistle blowers to come forward.
a. paid more attention to employees
behavior
b. shared their values
c.
set up toll-free ethics hotlines
d. posted the Sarbanes-Oxley Act
Unit 2 Examination
97
Principles of Management
An Academic Question (Scenario)
As a university student, you wonder
about some of the practices in the university and just
how some of these practices should be
evaluated in reference to social issues.
7) If your university were paying
minimum wage when necessary and applying the mini-
mum standard to laws, such as
affirmative action, it would be said to have fulfilled its
________.
a. social expectation
b. social responsiveness
c.
social obligation
d. social responsibility
8) If your university provides
job-share programs, builds a day-care facility, and only uses
recycled paper, it could be said to be
________.
a.
socially responsive
b. socially image conscious
c. fulfilling its social obligation
d. socially aware
Summing Up Social Responsibility
(Scenario)
Max Proffit, director of research and
development for National Products Company, has
learned that a new material has been
developed in his department that appears as though
it will work in several products
already being manufactured by National Products Compa
–
ny. He has discussed the potential
savings with his two assistants, Susie Merriweather and
Moe Gaines, and Rush Onward, vice
president of product development. Susie has stated
her opposition to the use of the new
product because its durability and flame retardance
have not completed testing and have not
been certified by the companys third-party
testing laboratory. Moe argues that the
initial tests that their R&D department completed
indicate minimal problems with both
durability and flame retardance. Rush states that in
several meetings he has recently
attended, the company president had repeatedly empha
–
sized the need to increase earnings per
share. Rush tells Max that a decision has to be
made within the week about the new
products use by National Products Company.
9) Susies opposition to the use of the
new product is an indication that she probably
________.
a. has a weak ego strength
b. is using the classical view of
social responsibility
c. has an external locus of control
d.
has an internal locus of control
Unit 2 Examination
98
Principles of Management
10) Which of the following is not a
valid assumption about rationality?
a. The problem is clear and
unambiguous.
b. Preferences are clear.
c. A single, well-defined goal is to be
achieved.
d.
Preferences are constantly changing.
11) An increased commitment to a
previous decision despite evidence that it may have
been wrong is referred to as ________.
a.
escalation of commitment
b. dimensional commitment
c. expansion of commitment
d. economies of commitment
12) Intuitive decision making is
________.
a. not utilized in organizations
b. important in supporting escalation
of commitment
c. a conscious process based on
accumulated judgment
d.
making decisions based on experience, feelings, and accumulated judgment
13) A procedure ________.
a.
is a series of interrelated sequential steps to respond to a structured problem
b. is an explicit statement detailing
exactly how to deal with a decision
c. allows a manager to use broad
decision-making authority
d. is a set of guidelines that channel
a managers thinking in dealing with a problem
Decisions, Decisions (Scenario)
Sondra needed help. Her insurance
companys rapid growth was necessitating making
some changes, but what changes? Should
they add to the existing information system or
should they buy a new system? She was
given the responsibility of analyzing the com
–
panys present information system and
deciding what the company should do that would
give them plenty of room. She was
confused and needed help in making the correct decision.
14) According to the decision-making
process, the second step Sondra should take is to
________.
a. evaluate her decisions
effectiveness
b. allocate weights to the criteria
c.
identify decision criteria
d. analyze alternative solutions
Unit 2 Examination
99
Principles of Management
Is the Picture Clear? (Scenario)
Sharon was the regional manager of a
large cable television company. She faced many
problems and decisions daily, such as
how to price each market, who to hire, what kind of technology she should
purchase, and how she should handle the increasing customer
complaints. She needed some help
sorting these issues out.
15) Sometimes Sharon instructs her
local managers to follow ________ when confronted
with problem situations. These
establish parameters for the manager making the deci-
sion rather than specifically stating
what should or should not be done.
a.
policies
b. orders
c. procedures
d. rules
16) Formal planning involves which of
the following aspects?
a. distributing the plan to all
managerial employees
b.
writing objectives
c. developing general objectives
d. planning for up to one year
17) What is the first step in a typical
MBO program?
a. Unit managers collaboratively set
specific objectives for their units with their manag-
ers.
b.
The organizations overall objectives and strategies are formulated.
c. Major objectives are allocated among
divisional and departmental units.
d. Action plans are specified and
agreed upon by managers and employees.
18) Formal plans serve as a roadmap
although the destination may be changing constant-
ly due to ________.
a. management changes
b. employment makeup
c. political changes
d.
dynamic market conditions
Planning Factors (Scenario)
As vice president of a local
manufacturer, you are interested in developing a new organi
–
zational plan. However, you are not
sure who you should assign to the varying planning
tasks. At the same time, several other
issues that could deeply affect your business are
pending, including rising interest
rates and the potential formation of a new employee
union.
You
must
also
consider
your
firms
contracts
with
large
vendors
that
extend
five
years into the future.
Unit 2 Examination
100
Principles of Management
19) The issues that may deeply impact
your business such as rising interest rates, forma-
tion of a new employee union, and the
firms contracts with large vendors, are exam-
ples of ________ factors that affect
planning.
a. noncontrollable
b. outside
c. environmental
d.
contingency
The State Road 7 Collaborative
(Scenario)
The South Florida Regional Planning
Council convened a group of stakeholders, including
the Florida Department of
Transportation and the Department of Community Affairs, who
are interested in working together on
improving State Road 7. David Dahlstrom is the se
–
nior planner for the South Florida
Regional Planning Council. Mr. Dahlstrom successfully
obtained a technical assistance grant.
The intent is to organize the 15 small communities
along State Road 7 into an
intergovernmental unit. All of the communities will share the
same visioning processes of mission,
objectives, and tasks. Mr. Dahlstrom is now charged
with developing a strategic plan for
this group, called the State Road 7 Collaborative.
20) First, Mr. Dahlstrom must determine
the goals he wants to achieve. To do so, he must
follow a series of steps for goal
setting. The first step in setting goals for this new
group should be to ________.
a. request input from others and then
formulate specific goals
b.
formally establish the organizations mission
c. determine the goals individually and
then ask for input from others
d. evaluate available resources
21) If a bank estimates the
capabilities of its training and development department em-
ployees prior to implementing a new
training program designed to change their
method of providing customer service,
it is completing what step in the strategic man-
agement process?
a.
doing an internal analysis
b. doing an external analysis
c. formulating strategies
d. identifying the organizations
current mission, goals, and strategies
22) An example of ________ is when an
organization possesses a characteristic that sets
itself apart from competitors and gives
the firm a distinctive edge.
a. legal propriety
b. competitive power
c. core competency
d.
competitive advantage
Unit 2 Examination
101
Principles of Management
23) Functional-level strategy directly
supports ________.
a. corporate strategy
b. focus strategy
c.
competitive strategy
d. differentiation strategy
24) An Internet-based knowledge management
system that resulted in shorter customer
response times would be one e-business
technique that contributes to the competitive
advantage of a ________.
a. star
b. cost leader
c. focuser
d.
differentiator
25) The first organization to bring a
product or service to market is often referred to as the
________.
a. trailblazer
b. prime player
c.
first mover
d. market leader1) The belief that businesses have the
financial, technical, and managerial resources tosupport needed public and charitable
projects is known as which argument?a. ethical obligationsb.
possession of resourcesc. public imaged. public expectations2) There is ________ to say that a
companys socially responsible actions significantlyhurt its long-term economic
performance.a. a lot of evidenceb. not any evidencec.
little evidenced. mounting evidence3) With the stakeholder approach of
dealing with environmental issues, the organizationchooses to respond to ________.a. multiple demands made by social
activistsb.
multiple demands made by stakeholdersc. the demands made by governmental
stakeholdersd. the demands made by the strongest
stakeholders4) Values shared among the
organizational members can serve as ________.a. a reason to follow federal and state
environmental lawsb. a guidepost for managerial decisions
to invest in new technologyc.
a guidepost for managerial decisions and actionsd. a way to shape managerial decisions
to invest in economic conditions5) Ethics training sessions can provide
what benefit?a. They evaluate decisions and
management practices in terms of the code of ethics.b. They create ego strength in
employees.c. They strengthen the employees locus
of control.d.
They clarify acceptable and unacceptable practices.6) Many companies have ________ to
encourage whistle blowers to come forward.a. paid more attention to employees
behaviorb. shared their valuesc.
set up toll-free ethics hotlinesd. posted the Sarbanes-Oxley ActUnit 2 Examination97Principles of ManagementAn Academic Question (Scenario)As a university student, you wonder
about some of the practices in the university and justhow some of these practices should be
evaluated in reference to social issues.7) If your university were paying
minimum wage when necessary and applying the mini-mum standard to laws, such as
affirmative action, it would be said to have fulfilled its________.a. social expectationb. social responsivenessc.
social obligationd. social responsibility8) If your university provides
job-share programs, builds a day-care facility, and only usesrecycled paper, it could be said to be
________.a.
socially responsiveb. socially image consciousc. fulfilling its social obligationd. socially awareSumming Up Social Responsibility
(Scenario)Max Proffit, director of research and
development for National Products Company, haslearned that a new material has been
developed in his department that appears as thoughit will work in several products
already being manufactured by National Products Compa-ny. He has discussed the potential
savings with his two assistants, Susie Merriweather andMoe Gaines, and Rush Onward, vice
president of product development. Susie has statedher opposition to the use of the new
product because its durability and flame retardancehave not completed testing and have not
been certified by the companys third-partytesting laboratory. Moe argues that the
initial tests that their R&D department completedindicate minimal problems with both
durability and flame retardance. Rush states that inseveral meetings he has recently
attended, the company president had repeatedly empha-sized the need to increase earnings per
share. Rush tells Max that a decision has to bemade within the week about the new
products use by National Products Company.9) Susies opposition to the use of the
new product is an indication that she probably________.a. has a weak ego strengthb. is using the classical view of
social responsibilityc. has an external locus of controld.
has an internal locus of controlUnit 2 Examination98Principles of Management10) Which of the following is not a
valid assumption about rationality?a. The problem is clear and
unambiguous.b. Preferences are clear.c. A single, well-defined goal is to be
achieved.d.
Preferences are constantly changing.11) An increased commitment to a
previous decision despite evidence that it may havebeen wrong is referred to as ________.a.
escalation of commitmentb. dimensional commitmentc. expansion of commitmentd. economies of commitment12) Intuitive decision making is
________.a. not utilized in organizationsb. important in supporting escalation
of commitmentc. a conscious process based on
accumulated judgmentd.
making decisions based on experience, feelings, and accumulated judgment13) A procedure ________.a.
is a series of interrelated sequential steps to respond to a structured problemb. is an explicit statement detailing
exactly how to deal with a decisionc. allows a manager to use broad
decision-making authorityd. is a set of guidelines that channel
a managers thinking in dealing with a problemDecisions, Decisions (Scenario)Sondra needed help. Her insurance
companys rapid growth was necessitating makingsome changes, but what changes? Should
they add to the existing information system orshould they buy a new system? She was
given the responsibility of analyzing the com-panys present information system and
deciding what the company should do that wouldgive them plenty of room. She was
confused and needed help in making the correct decision.14) According to the decision-making
process, the second step Sondra should take is to________.a. evaluate her decisions
effectivenessb. allocate weights to the criteriac.
identify decision criteriad. analyze alternative solutionsUnit 2 Examination99Principles of ManagementIs the Picture Clear? (Scenario)Sharon was the regional manager of a
large cable television company. She faced manyproblems and decisions daily, such as
how to price each market, who to hire, what kind of technology she should
purchase, and how she should handle the increasing customercomplaints. She needed some help
sorting these issues out.15) Sometimes Sharon instructs her
local managers to follow ________ when confrontedwith problem situations. These
establish parameters for the manager making the deci-sion rather than specifically stating
what should or should not be done.a.
policiesb. ordersc. proceduresd. rules16) Formal planning involves which of
the following aspects?a. distributing the plan to all
managerial employeesb.
writing objectivesc. developing general objectivesd. planning for up to one year17) What is the first step in a typical
MBO program?a. Unit managers collaboratively set
specific objectives for their units with their manag-ers.b.
The organizations overall objectives and strategies are formulated.c. Major objectives are allocated among
divisional and departmental units.d. Action plans are specified and
agreed upon by managers and employees.18) Formal plans serve as a roadmap
although the destination may be changing constant-ly due to ________.a. management changesb. employment makeupc. political changesd.
dynamic market conditionsPlanning Factors (Scenario)As vice president of a local
manufacturer, you are interested in developing a new organi-zational plan. However, you are not
sure who you should assign to the varying planningtasks. At the same time, several other
issues that could deeply affect your business arepending, including rising interest
rates and the potential formation of a new employeeunion.Youmustalsoconsideryourfirmscontractswithlargevendorsthatextendfiveyears into the future.Unit 2 Examination100Principles of Management19) The issues that may deeply impact
your business such as rising interest rates, forma-tion of a new employee union, and the
firms contracts with large vendors, are exam-ples of ________ factors that affect
planning.a. noncontrollableb. outsidec. environmentald.
contingencyThe State Road 7 Collaborative
(Scenario)The South Florida Regional Planning
Council convened a group of stakeholders, includingthe Florida Department of
Transportation and the Department of Community Affairs, whoare interested in working together on
improving State Road 7. David Dahlstrom is the se-nior planner for the South Florida
Regional Planning Council. Mr. Dahlstrom successfullyobtained a technical assistance grant.
The intent is to organize the 15 small communitiesalong State Road 7 into an
intergovernmental unit. All of the communities will share thesame visioning processes of mission,
objectives, and tasks. Mr. Dahlstrom is now chargedwith developing a strategic plan for
this group, called the State Road 7 Collaborative.20) First, Mr. Dahlstrom must determine
the goals he wants to achieve. To do so, he mustfollow a series of steps for goal
setting. The first step in setting goals for this newgroup should be to ________.a. request input from others and then
formulate specific goalsb.
formally establish the organizations missionc. determine the goals individually and
then ask for input from othersd. evaluate available resources21) If a bank estimates the
capabilities of its training and development department em-ployees prior to implementing a new
training program designed to change theirmethod of providing customer service,
it is completing what step in the strategic man-agement process?a.
doing an internal analysisb. doing an external analysisc. formulating strategiesd. identifying the organizations
current mission, goals, and strategies22) An example of ________ is when an
organization possesses a characteristic that setsitself apart from competitors and gives
the firm a distinctive edge.a. legal proprietyb. competitive powerc. core competencyd.
competitive advantageUnit 2 Examination101Principles of Management23) Functional-level strategy directly
supports ________.a. corporate strategyb. focus strategyc.
competitive strategyd. differentiation strategy24) An Internet-based knowledge management
system that resulted in shorter customerresponse times would be one e-business
technique that contributes to the competitiveadvantage of a ________.a. starb. cost leaderc. focuserd.
differentiator25) The first organization to bring a
product or service to market is often referred to as the________.a. trailblazerb. prime playerc.
first moverd. market leader”