Chapter 06 - Test bank PDF

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Business Essentials, Canadian Edition, 9e (Ebert) Chapter 6 Managing the Business Enterprise6 Multiple Choice Questions 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 ...

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Business Essentials, Canadian Edition, 9e (Ebert) 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: 112 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: 113 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: 113 Skill: Application Objective: 6.1

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4) Managers at Edson Corp. have decided to begin 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: 113 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: 113 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: 113 Skill: Knowledge Objective: 6.1

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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: 113 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: 113 Skill: Comprehension Objective: 6.1 9) When a CEO divides the company into several smaller units, each responsible for its own functions, she is engaging in the management function of A) organizing. B) staffing. C) planning. D) controlling. E) directing. Answer: A Diff: 2 Type: MC Page Ref: 113 Skill: Comprehension Objective: 6.1

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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: 113 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: 113 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: 113 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: 113 Skill: Knowledge Objective: 6.1 4 Copyright © 2020 Pearson Canada Inc.

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: 113 Skill: Knowledge Objective: 6.1 15) 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: 113 Skill: Comprehension Objective: 6.1 16) 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 help with 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: 113 Skill: Comprehension Objective: 6.1

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17) 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: 113 Skill: Comprehension Objective: 6.1 18) 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: 114 Skill: Application Objective: 6.1 19) 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: 113 Skill: Comprehension Objective: 6.1

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20) 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: 113 Skill: Comprehension Objective: 6.1 21) 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: 114 Skill: Comprehension Objective: 6.1 22) 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: 116-117 Skill: Knowledge Objective: 6.2

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23) 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: 116-117 Skill: Comprehension Objective: 6.2 24) 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: 116-117 Skill: Comprehension Objective: 6.2 25) A transit supervisor who monitors bus schedules, passenger safety, and the behaviour of bus drivers is a(n) ________ 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: 116-117 Skill: Comprehension Objective: 6.2 26) A flight-services manager for a specific Air Canada flight is a(n) ________ 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: 116-117 Skill: Comprehension Objective: 6.2 8 Copyright © 2020 Pearson Canada Inc.

27) 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: 116-117 Skill: Comprehension Objective: 6.2 28) ________ 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: 117-118 Skill: Comprehension Objective: 6.2 29) 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: 117-118 Skill: Comprehension Objective: 6.2 30) 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: 117-118 Skill: Comprehension Objective: 6.2 9 Copyright © 2020 Pearson Canada Inc.

31) 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: 117-118 Skill: Knowledge Objective: 6.2 32) 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 prefer historical data rather than "live action." E) None of these. Answer: E Diff: 2 Type: MC Page Ref: 119 Skill: Knowledge Objective: 6.3 33) 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: 119 Skill: Comprehension Objective: 6.3

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34) 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: 119 Skill: Comprehension Objective: 6.3 35) 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: 118 Skill: Comprehension Objective: 6.3 36) Ronald Koslowsky, a marketing manager at Wintron Co., receives a call from LeRoy Shelton, a marketing manager at Young-Times Inc. The two chat socially, occasionally talking about their work. This is an example of a manager operating in Mintzberg's ________ role. A) disseminator B) spokesperson C) liaison D) negotiator E) resource allocator Answer: C Diff: 2 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3

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37) Tom Smith Jr., a manager responsible for hockey stick tape production at StickStuck Corp., spontaneously tours the plant to check on what's going on. By so doing, Tom is functioning in Mintzberg's ________ role. A) resource allocator B) monitor C) figurehead D) leader E) liaison Answer: B Diff: 2 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3 38) Jack Leutens, senior manager of marketing research at Tromex Enterprises, calls in seven of his subordinates to brief them on his recent research findings regarding new machinery that might be relevant for Tromex. This is an example of a manager functioning in the role Mintzberg called the A) leader. B) disseminator. C) monitor. D) spokesman. E) resource allocator. Answer: B Diff: 2 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3 39) "Ms. Jensen, there's someone here from the radio station to interview you about the explosion." Ms. Jensen is about to function in the role Mintzberg described as A) monitor. B) disseminator. C) spokesperson. D) resource allocator. E) leader. Answer: C Diff: 1 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3

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40) Midge thought anxiously about how to position her company for the future. By so doing, Midge functioned in the role Mintzberg called A) negotiator. B) spokesperson. C) entrepreneur. D) resource allocator. E) figurehead. Answer: C Diff: 2 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3 41) "Hey Reg! I just caught two kids shoplifting! What do I do now?" the assistant manager said to his boss, Reg Caluza. Reg was about to function in the role Mintzberg identified as the A) spokesperson. B) figurehead. C) disturbance handler. D) resource allocator. E) monitor. Answer: C Diff: 2 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3 42) Cecil and Cyrus, two of Simpson's top employees, stormed into their manager's office. Both were intent on securing approval from her for projects they were proposing for the company. Shelly Simpson, manager at Soho, Howso, Tatso, & Associates, was about to function in the role Mintzberg identified as the A) resource allocator. B) entrepreneur. C) figurehead. D) liaison. E) monitor. Answer: A Diff: 2 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3

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43) Burton Kinzel, vice-president of personnel at QVJ Corporation, sat down at the bargaining table across from the leader of the union, Vladmir Ramonovitch. Burton's expertise in the managerial role Mintzberg called ________ was about to be tested. A) entrepreneur B) liaison C) disseminator D) figurehead E) negotiator Answer: E Diff: 2 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3 44) "Excuse me," the secretary began. "Don't you have a 3:30 appointment to present a gold watch to Mr. Chung?" The manager froze in her tracks, realized the secretary was correct, and immediately began preparing herself to fulfill the managerial role identified by Mintzberg as A) figurehead. B) leader. C) disseminator. D) liaison. E) entrepreneur. Answer: A Diff: 2 Type: MC Page Ref: 118-119 Skill: Comprehension Objective: 6.3 45) Mintzberg's research on managers showed which of the following? A) Managers work at an unrelenting pace. B) Managers work under varying degrees of pressure, sometimes being very busy, and sometimes much less busy. C) Managers prefer written media. D) Managers prefer historical data rather than "live action." E) Managers typically begin a task and then work on it until it is finished. Answer: A Diff: 2 Type: MC Page Ref: 118-119 Skill: Knowledge Objective: 6.3

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46) Technical skills are especially important for A) middle-level managers. B) members of the board of directors. C) top-level managers. D) company presidents. E) first-line managers. Answer: E Diff: 1 Type: MC Page Ref: 119-120 Skill: Knowledge Objective: 6.3 47) The ability to type, to create a spreadsheet, or to write a computer program are examples of which basic management skill? A) Decision making B) Conceptual C) Human relations D) Time-management E) Technical Answer: E Diff: 1 Type: MC Page Ref: 119-120 Skill: Comprehension Objective: 6.3 48) At what level of management are technical skills relatively unimportant? A) Bottom B) Top C) Front-line supervisor D) First-line E) Middle Answer: B Diff: 1 Type: MC Page Ref: 119-120 Skill: Comprehension Objective: 6.3 49) The technical skills, human relations skills, and conceptual skills of managers A) shift in their degree of importance as the manager rises to the top of the organization. B) shift so that the technical skills become more important to the higher-level manager. C) retain the same degree of importance as a manager progresses "up the organization ladder" to the top. D) shift so that the conceptual skills become less important to the higher-level manager. E) shift so that human relations skills become more important than conceptual skills to the higher-level manager. Answer: A Diff: 3 Type: MC Page Ref: 119-120 Skill: Comprehension Objective: 6.3 15 Copyright © 2020 Pearson Canada Inc.

50) All of the following statements about basic management skills are correct except A) they include the ability to think in the abstract. B) they include human relations skills. C) they include time-management skills. D) the emphasis on each skill remains the same regardless of the level of management. E) they are skills that are needed by all managers. Answer: D Diff: 2 Type: MC Page Ref: 119-120 Skill: Comprehension Objective: 6.3 51) In his job, Marcus has found that the ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present is crucial. Marcus must therefore possess ________ skill. A) technical B) intuition C) conceptual D) human relations E) decision-making Answer: C Diff: 1 Type: MC Page Ref: 119-120 Skill: Com...