Management Chapter 1,2

As organizations strive to obtain a competitive advantage, taking care of the customer is the__________.

a.Golden Marketing Rule
b.first law of business
c.Employee Rule
d.synergy focus
e.Profit-Generating Code

b. first law of business

In seeking competitive advantage, the first law of business is to

a.take care of your shareholders
b.take care of your stakeholders
c.take care of the customers
d.take care of the environment
e.take care of your employees

c.take care of the customers

True or False? Organizations can gain a competitive advantage by matching their competition in terms of quality, responsiveness and efficiency

False

When managing for competitive advantage, the first "law" of business is "take care of the shareholders"

False

The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization’s resources is called

A. employment.

B. career planning.

C. competitive advantage.

D. management.

E. strategic planning.

d. management

The ability of an organization to outperform others by producing goods or services more effectively than its competitors is called

a. competitive advantage
b. effectiveness
c. efficiency
d. innovation
e. quality

a. competitive advantage

Which of the following is not an area in which an organization must stay ahead of its competitors to achieve competitive advantage

a. being responsive to customers
b. efficiency
c. environmental action
d. quality
e. innovation

c. environmental action

Which of the following is the most likely reason for the decline in fortunes of American newspapers, and their inability to exploit their competitive advantage?

A. A poorer standard for news-gathering.

B. Relying too heavily on advertising, rather than customer subscriptions, for revenue.

C. Decline in newspaper readership over the last 70 years.

D. Preference of customers for getting news in a nonverbal format.

E. An increase in salaries and material costs within the industry.

B. Relying too heavily on advertising, rather than customer subscriptions, for revenue.

Don works diligently to accomplish the company goals in an efficient and effective manner, utilizing his employees through planning, organizing, leading, and controlling company resources. Don is ________.

a. developing synergy
b. delegating
c. entrepreneuring
d. managing
e. vision planning

d. managing

Which of the following is one of the seven primary challenges facing managers today?

A. Maintaining good records of what worked in the past.

B. Dealing with a stubbornly static and immobile environment.

C. Staying ahead of competitors through corporate espionage.

D. Managing to achieve one’s own happiness and life goals.

E. Collaborating with competitors.

D. Managing to achieve one’s own happiness and life goals.

As a sales manager, you would have to decide how much leeway to give your subordinates in giving gifts to prospective clients in foreign countries. This is an example of the challenge of managing for

A. your own happiness.

B. globalization.

C. ethical standards.

D. sustainability.

E. diversity.

c. ethical standards

Setting goals and deciding how to achieve them is called

A. controlling.

B. managing.

C. planning.

D. organizing.

E. leading.

planning

Marie recently became a managing partner at her law firm. Though her job has changed, she still needs to have the necessary ______ skills to advise and review the contracts of the real estate attorneys that she manages.

A. performance

B. technical

C. conceptual

D. human

E. physical

b. technical

Management is defined as the pursuit of organizational goals

a. correct and with synergy
b. efficiently and effectively
c. economically
d. efficiently and in a detailed-oriented manner
e. with passion and effectiveness

b. efficiently and effectively

True or False?
Management includes integrating the work of people through planning, organizing, leading, and controlling the organization’s resources

True

True or False? To be efficient in management means to use resources wisely and cost effectively

True

True or False? Efficiency and effectiveness are terms used interchangeably and equivalently in management

False

True or False? Studying Management is likely to help you once you are in a manager role, but is unlikely to be beneficial before then.

False

True or False? One of the payoffs of studying management is an improved understanding of how to deal with organizations as a customer

True

True or False? If you enjoying mentoring and helping others grow, management is a great job.

True

True or False? One’s experience in management remains very insulated from the company’s culture.

False

True or False? The management process is sometimes called the four management functions

True

One way to think of ______ is "the art of getting things done through people."

A. supervision

B. motivation

C. management

D. leadership

E. strategy

c. management

Which of the following is the most likely payoff of studying management as a discipline?

A. You will understand how to brand your organization.

B. You will understand how to relate to and interact with your supervisors and co-workers.

C. You will understand how to manage your family and close friends more effectively.

D. You will understand how to deal with the media in a crisis.

E. You will understand how to advance your career without guilt

B. You will understand how to relate to and interact with your supervisors and co-workers.

Which of the following is not a reward for practicing management?

A. You can build a catalog of successful products or services.

B. You and your employees can experience a sense of accomplishment.

C. You can stretch your abilities and magnify your range.

D. You can be rewarded with money and status for your efforts.

E. You can become exempt from many of society’s ethical standards.

E. You can become exempt from many of society’s ethical standards.

Which of the following is one of the four principal functions of management, also known as the management process?

A. Organizing

B. Scheduling

C. Motivating

D. Executing

E. Monitoring

Organizing

Because the various groups that help a manager reach company goals often have different needs and wants, resolving conflicts is an essential part of which management function?

A. Planning

B. Clarifying

C. Organizing

D. Controlling

E. Leading

E. leading

Aziz immediately halted production at his facility after seeing a report indicating the last batch had a high level of product defects, and restarted work only when the problem was discovered and fixed. Aziz is engaged in which management function?

A. Repairing

B. Organizing

C. Monitoring

D. Controlling

E. Executing

d. controlling

In the traditional management pyramid, managers are classified into ______ levels.

A. two

B. three

C. four

D. five

E. six

B. three

One way to think of management is ________.

a.the science of synergy
b.the science of helping people
c. the science of accomplishing things
d. efficiency in motion
e. the art of getting things done through people

e. the art of getting things done through people

Those who study management will understand how to ________.

a. relate to their managers and deal with organizations from the outside
b. counsel workers on personal and family issues
c. sell their product
d. relate to coworkers and deal with technology
e. better manage money

a. relate to their managers and deal with organizations from the outside

Mateo, an IT manager, has been studying the work methods of each task to increase the productivity of the employees in his department. Mateo is utilizing ________.

a. the Hawthorne effect
b. synergy
c.management science
d.behaviorism
e.scientific management

d.behaviorism

The Jones family had a fire that destroyed their home. Various departments of a restoration company, from the initial cleanup crew to the assistance with the Jones family moving back in, worked together to achieve this goal. This is an example of a(n) ________.

a. input-output structure
b. structure
c. process
d. system
e. stepped process

d. system

The beliefs that there are few really new ideas and that true is better than new are two of the foundational principles of ________.

a. scientific management
b. MBO
c. evidence-based management
d. the quality-management viewpoint
e. behavioral management

c. evidence-based management

"True is better than new" is one of the truths of
A. scientific management.
B. the human relations movement. C. operations management.
D. evidence-based management. E. management science.

d. evidence-based management

Wanda, a CEO, has been encouraging her managers to study and utilize theoretical perspectives of management because this approach ________.

a. emphasizes diversity
b. is an effective synergy-building approach
c. is an effective cost-reduction tool
d. builds a strong family-type culture
e. provides clues to the meaning of your managers’ decisions

e. provides clues to the meaning of your managers’ decisions

True or False? Collaborative computing involves using state-of-the-art computer software and hardware to help people work better together.

True

Though many advantages have been linked to e-business, studies show that employees are less productive when dealing with excessive ______ volume.

A. videoconferencing

B. meeting

C. e-mail

D. telecommuting

E. collaborative computing

C. e-mail

True or False? Management includes integrating the work of people through planning, organizing, leading, and controlling the organization’s resources

True

True or False? When Barnett, a college administrator, is determining which of several degree programs his campus will offer, he is involved in the management function of controlling.

False

True or False? When Shannon reviews and determines that she has four underperforming salespeople with whom she will need to talk, she is performing the controlling managerial function.

True

The district manager of a national fast-food restaurant watches the sales reports for each restaurant daily to compare actual sales with projected sales goals, and then takes corrective action if needed. This function is ____.

controlling

Conceptual skills are particularly important for ______ managers.

A. first-line

B. functional

C. top

D. middle

E. general

c. top

True or False? A problem typically associated with interconnected databases on the Internet is the potential to overwhelm employees with too much information

True

True or False? One reason e-business is so important is that the Internet dramatically lowers the cost of communication.

True

True or False? One advantage of e-business is that organizations and teams are no longer as bound by time zones and locations.

True

True or False? In interpersonal managerial roles, a manager acts as entrepreneur, disturbance handler, or negotiator.

False

True or False? Entrepreneurship means taking risks to try to create a new enterprise.

True

True or False? Entrepreneurs typically have a much higher need for achievement and a stronger belief in personal control of destiny than do typical managers.

False

True or False? Opportunity entrepreneurs are those who start their own business out of a burning desire rather than because they lost a job.

True

After a large chemical fire, Eric took responsibility publicly for the failure of his employees to follow workplace safety standards, and indicated that several of them had been placed on leave. Here, Eric was acting in a ______ role.

A. leadership

B. negotiator

C. liaison

D. authority

E. entrepreneur

a. leadership

To inspire innovation, Jinyuan encourages his employees to devote one afternoon a month to work on pet projects, just to spend time in the lab experimenting and thinking freely. He is acting in the ______ role.

A. entrepreneur

B. disturbance handler

C. resource allocator

D. negotiator

E. liaison

a. entrepreneur

Jeremy Stoppelman and Russel Simmons, founders of Yelp, a website with reviews of businesses, created a new type of business that did not exist before their efforts. They would best be described as

A. business developers.

B. inventors.

C. sole proprietors.

D. entrepreneurs.

E. intrapreneurs.

D. entrepreneurs.

_________ means taking risks to try to create a new enterprise.

A. Entrepreneurship

B. Incorporation

C. Franchising

D. Joint venturing

E. Acquisition

A. Entrepreneurship

Research has shown that all of the following are characteristics of an entrepreneur except which?

A. self-confident

B. highly experienced

C. belief in personal control of destiny

D. high energy level and action orientation

E. high tolerance for ambiguity

B. highly experienced

One of the reasons Ace Distributors, a local manufacturing company, is considered to be a good place to work is that the managers are expected to encourage and reward their employees for developing new products and ways of improving existing products and services. This policy is an example of managers carrying out the ______ role.

entrepreneur

True or False? Proponents of evidence-based management would say there are few really new ideas

True

True or False? Evidence-based management means translating principles from promising new theories into organizational practice

False

True or False? Part of evidence-based management is understanding the potential danger in conventional wisdom about management.

True

"True is better than new" is one of the truths of

A. scientific management.

B. the human relations movement.

C. operations management.

D. evidence-based management.

E. management science.

D. evidence-based management.

________ management means translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process.

A. Total quality

B. Operations

C. Administrative

D. Evidence-based

E. Scientific

D. Evidence-based

As a store manager, Luanda has to play the role of negotiator, such as purchasing products at a fair price for her company. As she handles this responsibility, Liandra is playing the _________ role

a. bargainer
b. interpersonal
c. disseminator
d. leadership
e. decisional

e. decisional

True or False? First-line managers make long term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it.

False

True or False? A first-line manager directs the daily tasks of non managerial personnel.

True

Managers who make short-term operating decisions and direct the daily tasks of the nonmanagerial employees are called

A. first-line managers.

B. middle managers.

C. general managers.

D. functional managers.

E. initial managers.

A. first-line managers.

Angelina is a shift supervisor for a successful supermarket chain, directing the work of as many as eight other cashiers. She is a(n)

A. directional manager.

B. middle manager.

C. first-line manager.

D. general manager.

E. area manager.

C. first-line manager.

A general manager at a department store is giving an important presentation to several departments to engage the whole staff in a new customer retention effort beginning this month. This is an example of

A. planning.

B. organizing.

C. leading.

D. controlling.

E. marketing.

c. leading

True or False? When a manager is motivating others to work hard and achieve the organization’s goals, she is engaged in the management function of leading.

True

At times, customers have an unexpected need and require certain departments, such as production, to change their schedule to meet the demands of the sales department. When Susan, the vice president of marketing, is involved in resolving this conflict, this is an essential part of which management function?
a. leading
b. implementing
c. delegating
d. monitoring
e. staffing

a. leading

True or False? Taking care of the customer applies equally well to nonprofit and for-profit businesses

True

A ______ manager is responsible for just one organizational activity.

A. specialist

B. first-line

C. singular

D. functional

E. top-level

d. functional

Donna, vice president of finance, and Bob, vice president of human resources, are ____ managers
a. advisory
b. functional
c. team
d. board
e. lower-level

b. functional

True or False? A vice president of production is a general manager

False

True or False? A general manager typically oversees several departments within an organization.

True

True or False? Since the 1960s research conducted by Mintzberg, the typical general manager has reduced her work week to the traditional 40 hours.

False

Tom, a restaurant general manager, carefully watches his costs by reusing some items that in the past were immediately thrown away. Tom is an example of a(n) _____ manager.

efficient

True or False? Mingjin is a branch manager in Albuquerque who reports to the CEO in Denver and to whom three other managers at her facility report, so she would be termed a middle manager.

True

Managers who implement the policies and plans determined at the highest levels and coordinate the activities of lowest-level managers are called

A. executional managers.

B. first-line managers.

C. middle managers.

D. functional managers.

E. general managers.

C. middle managers.

Derrick is a clinic director running a downtown Chicago facility for a large nonprofit health organization. He receives most of his strategic direction from the organization and supervises several department managers in his workplace. Derrick is a

A. first-line manager.

B. middle manager.

C. tactical manager.

D. functional manager.

E. coordination manager

b. middle manager

Mark, vice president of human resources at Executive Corporation, is a(n) _______ level manager.

a. first-line
b. middle
c. board
d. upper
e. team leader

d. upper

True or False? Having require technical skills is most important among top managers at the highest level of leadership levels.

False

True or False? Human skills become less critical as one’s career progresses, and are least important for top managers.

False

A senior vice president is an example of what level of manager?

A. first-line

B. top

C. leadership

D. middle

E. merit

b. top

Managers who are future oriented, dealing with uncertain, highly competitive conditions, and who stay alert to long-run opportunities and problems are most likely to be

A. first-line managers.

B. functional managers.

C. middle managers.

D. general managers.

E. top managers.

e. top managers

Which of the following is not a chief skill companies seek in top managers today?

A. The ability to motivate and engage others.

B. The ability to communicate.

C. Work experience outside the United States.

D. High energy levels to meet the demands of global travel and a 24/7 world.

E. The ability to give a wide range of orders authoritatively.

E. The ability to give a wide range of orders authoritatively.

To maintain a competitive advantage, the top management of a national furniture store made the decision to increase employee training, add rewards that motivate employees, and look at improving procedures related to disciplining workers. These decisions are part of the ______ role.

leadership

To increase profitability, top management of a national retailer needs to decide if it will close several stores. Management knows that by closing the locations, it will save the company millions of dollars and benefit many stockholder groups and individuals, compared to keeping those stores open and benefiting fewer people. This logic is an example of the ___ approach.

utilitarian

Felix pays a lot of attention to the environment outside his company, staying alert for long-run opportunities and problems and devising strategies for dealing with them. Felix is a(n) ____ level manager.

top

True or False? An effective manager has a multiplier effect on the organization, meaning his or her influence is multiplied beyond the results achievable by just one person.

True

The _________ effect states that a manager’s influence on the organization has implications far beyond the results that can be achieved by one person acting alone.

A. proliferation

B. multiplier

C. managerial

D. halo

E. additive

B. multiplier

True or False? Researcher Robert Katz determined that through duration and experience managers acquire technical, conceptual, and human skills.

True

Human skills are important for ________ managers.

A. top

B. functional

C. first-line

D. middle

E. all levels of

e. all levels

The rarest and most precious resource in business according to Fortune magazine is _______
a. skiller and effective managers
b. healthy workers
c. financial capital
d. quality, low-cost equipment
e. workers and managers

a. skiller and effective managers

True or False? In business, innovation is defined as finding ways to deliver new or better goods or services.

True

Finding ways to deliver new or better goods or services is called

A. advancement.

B. streamlining.

C. innovation.

D. efficiency.

E. quality control.

c. innovation

True or False? Gary Hamel, cofounder of the Management Innovation Lab, believes than management innovation can be improved by identifying and sometimes challenging core beliefs that people have about an organization

True

Gary Hamel believes that identifying and challenging debilitating core beliefs that people have about an organization can be helpful in improving management

A. rewards.

B. innovation.

C. restructuring.

D. planning.

E. motivation.

b. innovation

Tom, a restaurant general manager, carefully watches his costs by reusing some items that in the past were immediately thrown away. Tom is an example of a(n) _____ manager.
a. detail
b. diverse
c. efficient
d. taco
e. effective

e. effective

The belief that you control your own destiny is called

A. internal locus of control.

B. entrepreneurship.

C. intrapreneurship.

D. power centering.

E. manifest destiny.

a. internal locus of control

When Dave, a restaurant owner, had his seafood business destroyed by Hurricane Katrina, he believed that he was in control of his own destiny and made a decision to rebuild the company. Dave is an individual with a(n) ____.

internal locus of control

Two of the primary challenges facing managers today are_____________________
a. managing the effects of globalization and information technology

b. managing ethical dilemmas and decreasing diversity

c. managing employee issues and maintaining goods

d. managing union and financial issues

e. managing the lack of information and union problems

a. managing the effects of globalization and information technology

True or False? The internet is a global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world.

True

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs is known as

A. environmentalism.

B. globalization.

C. ethics.

D. the bottom line.

E. sustainability.

Sustainability

The defining difference between an entrepreneur and an intrapreneur is that the latter

A. is the person responsible for funding the former with a startup investment.

B. is working on multiple opportunities simultaneously.

C. works within an existing organization, using its resources to exploit an opportunity.

D. usually runs a small business.

E. works in a team setting to develop an idea to fruition.

C. works within an existing organization, using its resources to exploit an opportunity.

The development of Google News by Google employees experimenting with ways to facilitate browsing news from several sources is an example of

A. business intelligence.

B. intrapreneurship.

C. business invention.

D. corporate design.

E. entrepreneurship.

B. intrapreneurship.

True or False? The contemporary perspective of management includes three viewpoints: systems, behavioral, and quantitative.

False

The contemporary perspective includes which of the following viewpoints?

A. Behavioral

B. Systems

C. Quantitative

D. Classical

E. Rational

b. systems

Systems, contingency, and quality-management viewpoints are part of the ________ perspective.

A. behavioral

B. scientific

C. historical

D. quantitative

E. contemporary

E. contemporary

Within his company, Greg has set up a system with inputs, outputs, transformation processes, and feedback. Within his organization, he utilizes a management style that varies according to the individual and environmental situation, with a strategy for minimizing errors by managing each stage of production. Greg is utilizing a _______ perspective.

a. contemporary
b. behavioral
c. classical
d. qualitative
e. historical

a. contemporary

Paul has been tasked with creating a new microsite on his engineering company’s intranet. The site will house company-approved design procedures and efficiency strategies for all employees. Creating the design microsite is a form of

A. strategy management.

B. e-management.

C. project management.

D. knowledge management.

E. morale management.

D. knowledge management.

True or False? Feedback is one of the four parts of a system.

True

True or False? Sales Data would be considered feedback in a system

True

True or False? One reason for the success of the Tommy Hilfiger clothing brand in the 1990s was maintaining a closed system with respect to young consumers’ feedback by conducting research in music clubs.

False

Customers lined up for hours to be among the first to purchase the new iPad. The excitement for the product would be considered ______ in the system.

A. an input

B. feedback

C. an output

D. affirmation

E. a transformation process

b. feedback

When the sales of a certain brand of diet soda slowed, a national grocery retailer decided to drop the price of that product, which resulted in a large increase in sales of the soda. This sales increase is a type of ____.

feedback

True or False? If you enjoy mentoring and helping others grow, management is a great job.

True

True or False? The contingency viewpoint began to develop when managers discovered that a variety of different mathematical models can be applied for problem solving and decision making.

False

True or False? The manager following the contingency viewpoint would ask, "What management method is the best to use under these particular circumstances?"

True

The ________ viewpoint emphasizes that a manager’s actions should vary according to the situation.

A. contingency

B. quality-management

C. flexible-management

D. systems

E. scenario

a. contingency

Over her years as a manager, Rose has had a very diverse group of employees; some were very interested in the financial rewards the company offered while others really would prefer extra time off or even to be recognized at the monthly department meetings. Rose should consider the ______ viewpoint of management in this case.

A. behavioral

B. systems

C. contingency

D. variance management

E. classical

C. contingency

Which of the following approaches is characteristic of a manager using the contingency viewpoint?

A. Purchasing new technology to improve efficiency.

B. Simplifying the steps of the work process.

C. Using motivational techniques to boost worker productivity.

D. Assessing the characteristics of particular situation before deciding what to do.

E. Performing a motion study.

D. Assessing the characteristics of particular situation before deciding what to do.

When Cheyanne, the manager, was discussing a difficult competitive problem with the owner, she asked, "What management approach do you think will work best in this situation?" Asking this question to determine a solution is utilizing ____.

the contingency viewpoint

When a manager assesses a particular situation and decides what to do according to the individual and environmental situation, the manager is utilizing the ________ viewpoint.

a.systems
b.scientific
c. flexibility
d.behavioral
e. contingency

e. contingency

The new chief information officer of a national pizza chain is using mathematical tools to aid in product ordering and scheduling decisions; this is an example of ________.

a. goal management
b. behavioral science
c. management science
d. statistical management
e. scientific management

c. management science

The classical viewpoint of management emphasized ways to ________.

a. build more synergy
b. include MBO
c. vary according to the environment
d. manage work more efficiently
e. increase diversity

d. manage work more efficiently

True or False? The classical viewpoint emphasized ways to manage work more independently.

False

True or False? The two branches of the classical viewpoint of management are rational and bureaucratic.

False

True or False? The central assumption in classical management is that people are self-interested.

False

True or False? Motion studies were used to assess and improve efficiency as part of the classical viewpoint

True

True or False? One of the problems with the classical viewpoint is that its principles are too focused on human needs rather than on organizational ones.

False

True or False? Motivating employees toward achievement is a focus of the classical viewpoint of management.

False

Classical, behavioral, and quantitative viewpoints about management are collectively referred to as the ________ perspective.

A. historical

B. scientific

C. operations

D. contemporary

E. systems A. historical

a. historical

Scientific and administrative management are part of the ___________ viewpoint

a. behavioral
b. contingency
c. classical
d. quantitative
e. quality

c. classical

The most significant flaw in the classical viewpoint is that it

A. overemphasizes mathematical techniques.

B. is impractical in the workplace.

C. does not address productivity.

D. discounts the importance of human needs.

E. does not account for irrational behavior.

d. discounts the importance of human needs

The essence of the classical viewpoint is that

A. resources are limited.

B. a rational approach can be used to boost productivity.

C. people are self-interested.

D. people will take on responsibility if it is offered to them.

E. workers behave how you expect them to.

b. arational approach can be used to boost productivity

McDonald’s ability to deliver food quickly and inexpensively has its roots in which management theory?

A. Management science viewpoint

B. Behavioral viewpoint

C. Mathematical viewpoint

D. Systems viewpoint

E. Classical viewpoint

e. classical viewpoint

True or False? Frank and Lillian Gilbreth were chief proponents of administrative management.

False

True or False? Administrative management is most concerned with the jobs of individuals

False

Scientific and administrative management are part of the ________ viewpoint.

A. behavioral

B. contingency

C. classical

D. quantitative

E. quality

c. classical

__________ was concerned with managing the total organization and was pioneered by Fayol and Weber.

A. Administrative management

B. Operations management

C. Management science

D. Scientific management

E. Contemporary management

A. Administrative management

Tom, the manager of floral shop, is interested in implementing the principles of administrative management, which involves ____.

managing the total organization

True or False? Because the human relations movement was considered too simplistic for practical use, it has been superseded by the behavioral science approach to management.

True

True or False? Behavioral science research has shown that competition is superior to cooperation in promoting achievement and productivity.

False

True or False? The behavioral science approach to management has its roots in techniques created for American and British military personnel and equipment in World War II.

False

Behavioral science relies on __________ for developing theories about human behavior that can help managers.

A. rules of thumb

B. scientific research

C. intuition

D. simulations

E. trial and error

B. Scientific Research

Which of the following viewpoints emphasized the importance of understanding human actions and of motivating employees toward achievement?

A. Qualitative viewpoint

B. Behavioral viewpoint

C. Classical viewpoint

D. Contingency viewpoint

E. Management science viewpoint

B. Behavioral Viewpoint

Which of the following is one of the phases in the development of the behavioral viewpoint?

A. Human resource management

B. Operations management

C. Operations research

D. Human relations movement

E. Administrative management

D. Human relations movement

True or False?The classical viewpoint emphasized ways to manage work more independently.

False

True or False? In a closed system, an organization’s outputs are recycled to become inputs.

False

Both the classical management view and the management science perspective consider an organization to be a(n) ________; as a simplification for analysis this may work, but in reality it would open up the organization to spectacular failure.

A. closed system

B. neutral system

C. porous system

D. subsystem

E. isolated system

a. closed system

True or False? Among Mary Parker Follett’s most important contributions to management was her belief that conflicts within organization should be resolved to mutual satisfaction through a process called integration.

True

Among the recommendations of Mary Parker Follett was that

A. motion studies should be made of every job.

B. managers should design and control the work process.

C. integration should occur in organizations when conflicts arise.

D. a competitive environment is most conducive to productivity.

E. everyone should understand their roles: managers as order-givers, and employees as order-takers.

C. integration should occur in organizations when conflicts arise.

The idea that the work process should be under the control of workers with the relevant knowledge, rather than that of managers, who should act as facilitators, was developed by

A. Lillian Gilbreth.

B. Mary Parker Follet.

C. Max Weber.

D. Hugo Munsterberg.

E. Elton Mayo

B. Mary Parker Follet.

True or False? Abraham Maslow and Douglas McGregor were theorists in the human relations movement.

True

Which research, though flawed, drew attention to the idea that managers using good human relations could improve worker productivity?

A. Maslow’s hierarchy of human needs

B. Operations research

C. Theory Y

D. Fayol’s administrative management

E. The Hawthorne studies

E. The Hawthorne studies

True or False? For a jewelry designer, gold and silver rings, earrings, and bracelets are considered system inputs.

False

The ______ viewpoint sees organizations as entities made up of interrelated parts known as inputs, outputs, transformation processes, and feedback.

A. classical

B. closed loop

C. contingency

D. quality-management

E. systems

e. systems

Marcus works on an assembly line for a U.S. automobile manufacturer. He would be considered a(n) ______ of this system.

A. participant

B. feedback mechanism

C. input

D. transformation process

E. output

c. input

Within his company, Greg has set up a system with inputs, outputs, transformation processes, and feedback. Within his organization, he utilizes a management style that varies according to the individual and environmental situation, with a strategy for minimizing errors by managing each stage of production. Greg is utilizing a _______ perspective

contemporary

True or False? Abraham Maslow would say that some human needs must be satisfied before others.

True

Who proposed the hierarchy of human needs as a theory of motivation?

A. McGregor

B. Weber

C. Munsterberg

D. Maslow

E. Mayo

d. maslow

True or False? Douglas McGregor was one of the pioneers of early behaviorism.

False

True or False? Netflix’s business suffered when it failed to use an open system in its decision to introduce a large price increase while simultaneously splitting its DVD mail service from its streaming one.

True

True or False? Over the years, Toyota has used a variety of operations management-based "lean management" techniques to sell its cars on the basis of superior quality.

True

______ focuses on managing the production and delivery of an organization’s products or services more effectively.

A. Operations management

B. Systems management

C. Scientific management

D. A learning organization

E. Administrative management A. Operations management

a. operations management

Alyssa works for a large amusement park and is in charge of scheduling the sizable staff, including ride attendants, food service and janitorial employees, and character actors, in an effective manner. This work is typical of

A. operations research.

B. contingency planning.

C. quality management.

D. operations management.

E. qualitative analysis.

D. operations management.

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 ____

operations management

A local farmer grows and sells tomatoes and beans to the local grocers. Using the systems viewpoint, the tomatoes, beans, and profits that are earned from the sales are known as a(n) _____.

output

True or False? Project management software allows managers to plan and schedule the people, costs, and resources to complete a project on time.

True

True or False? Deming and Juran were part of the quality-management movement.

True

According to Deming, quality stemmed from a steady focus on the organization’s mission and

A. a reduction in production variation.

B. Theory Y management.

C. operations research.

D. the Hawthorne effect.

E. complexity theory

A. a reduction in production variation.

Deming proposed that when something goes wrong, chances are __________ that the system is at fault, and __________ that the individual worker is at fault.

A. 15%; 85%

B. 35%; 65%

C. 50%; 50%

D. 65%; 35%

E. 85%; 15%

E. 85%; 15%

True or False? Peter was having a hard time concentrating on work on Friday afternoon. He had friends visiting for the weekend and he kept checking his phone and his Facebook page to solidify his plans. He certainly wasn’t working as hard as he could have been, something that scientific management theorist Frederick Taylor would have called "soldiering."

True

True or False? As part of the scientific management viewpoint, Taylor suggested paying all employees doing the same job the same wage.

False

______ emphasized the scientific study of work methods to improve productivity of individual workers.

A. Scientific management

B. Quantitative science

C. TQM

D. Management science

E. Administrative management

A. Scientific management

Fredrick Taylor and the Gilbreths were proponents of which of the following?

A. Scientific management and administrative management, respectively

B. Management science and human relations management, respectively

C. Human relations

D. Management science

E. Scientific management

E. Scientific management

Which of the following is not a part of Frederick Taylors’s work in scientific management?

A. Elimination of soldiering

B. Motion studies

C. Differential rate system

D. Hierarchy of human needs

E. Raising productivity

D. Hierarchy of human needs

Amy is a package delivery service manager. She is interested in implementing the management philosophy pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth, which scientifically studies work methods to improve the productivity of individual workers, known as ____.

Scientific Management

The father of scientific management is _____.

Fredrick Taylor

______, or the ability to motivate, to inspire trust, and to communicate with others, are important for all levels of management.

soft skills

True or False? Integration management is the implementation of systems and practices to increase the sharing of knowledge and information throughout an organization.

False

True or False? Automated telephone systems are typically both very effective and very efficient

False

True or False? According to Peter Drucker, "knowledge workers" have very little technical skill

False

Tonya is a structural engineer who works for a large international firm. She designs the concrete and steel structures that support even the largest and most complex buildings. Because of her high level of technical skills, Tonya is best referred to as a

A. knowledge worker.

B. blue-collar worker.

C. self-managed worker.

D. first-line worker.

E. first-line manager.

A. knowledge worker

True or False? Gary Hamel, cofounder of the Management Innovation Lab, believes that management innovation can be improved by identifying and sometimes challenging core beliefs that people have about an organization.

True

Gary Hamel suggests we need to look at management as a process and then make improvements and innovation ____.

ongoing and systematic

Joseph Juran defined quality as ________, which meant that a product or service should satisfy a customer’s real needs.

A. value orientation

B. fitness for use

C. need fulfillment

D. functional capacity

E. feature superiority

B. fitness for use

True or False? A learning organization is one that actively creates, acquires, and transfers knowledge within itself and is able to modify itself to reflect new knowledge.

True

True or False? Among the functions of a manager in a learning organization are generating and generalizing ideas with impact.

True

The term learning organization was coined by

A. Shewart.

B. Deming.

C. Juran.

D. Senge.

E. Mayo.

Senge

An organization in which the management builds a commitment to learning, works to generate ideas with impact, and works to generalize ideas with impact is creating a(n) ____.

learning organization

True orF False? Organizations can gain a competitive advantage by matching their competition in terms of quality, responsiveness, and efficiency.

False

Customers are likely to put up with poor-quality products only if your organization is

A. underperforming in innovation.

B. using computerized customer service.

C. the only one of its kind.

D. in a very competitive industry.

E. lacking strong environmental policies.

C. the only one of its kind.

The fact that employees often have no control over work process design limits their ability to achieve zero defects, or

A. quality control.

B. continuous improvement.

C. reengineering.

D. quality assurance.

E. total quality management

d. quality assurance

After returning home from a trade show, Mr. Jones, the president of a manufacturing company, spoke to his employees in a production meeting about a new approach that should increase their production bonus by improving their performance. To do so, Mr. Jones discussed a goal of "zero defects." This is an example of ____.

quality assurance

True or False? Quality control focuses on the performance of workers, urging employees to strive for "zero defects."

False

The strategy for minimizing errors by managing each stage of production is called

A. TQM.

B. six sigma.

C. quality assurance.

D. zero defects.

E. quality control.

e. quality control

Statistical sampling to locate errors by testing just some of the items in a particular production run is a ______ technique.

A. quality control

B. continuous improvement

C. reengineering

D. quality assurance

E. total quality management

a. quality control qual

The management of XYZ Manufacturing is implementing a plan to minimize production mistakes by allowing teams that work in each area of the production facility to develop a plan and then monitor their area to ensure the reduction of errors. This is an example of ____.

quality control

The management of a facility that manufactures parts for car brakes has a policy of testing only some of the items in each production run to locate errors. This is an example of the ______ technique

quality control

True or False? An important source of information about quality in total quality management is competitors.

False

The comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction is known as

A. quality rating.

B. quality assurance.

C. reengineering.

D. quality control.

E. total quality management.

e. total quality management

David is an architect, and the steps he takes in designing and drawing commercial buildings would be considered which part of his organization’s system?

A. an input

B. feedback

C. an output

D. an affirmation

E. a transformation process

e. transformation process

When a line cook in a restaurant cooks a raw hamburger to become part of the Super Burger Special, this is an example of a ____.

transformation process

The law that makes it illegal for employees of U.S. companies to make "questionable" or "dubious" contributions to political decision makers in foreign nations is the ________.

Global Ethics Accord

Internationalist Agreement

Foreign Corrupt Practices Act

Expatriate Accord

PATRIOT Act

foreign corrupt practices act

The United States uses government regulations, such as tariffs, embargoes, and import quotas, to limit the import of goods and services and protect their U.S. industries against foreign competition. This use of these regulations is known as ________.

export protectionism

trade protectionism

dumping

domestic protectionism

blocking

trade protectionism

True or False? Trade protectionism is a term for government measures that promote and preserve free trade globally.

False

When a government uses measures like tariffs and import quotas, it is called

A. ethnocentrism.

B. free trade.

C. a trade bloc.

D. an embargo.

E. trade protectionism.

e. trade protectionism

Which of the following is a form of trade protectionism?

A. A trade bloc

B. A countertrade

C. A revenue tariff

D. An embargo

E. Outsourcing

d. an embargo

Susan, from Iowa, arrived in Saudi Arabia and immediately noticed that the way Saudi men treat women is vastly different than how men in the U.S. treat women. Susan was feeling uncomfortable because she was experiencing ________.

cognitive dissonance

ethnocentrism

situational cues

travel lag

culture shock

culture shock

David was feeling very anxious, confused, and out of place since he arrived for his new job in Taipei, Taiwan. It seemed like just about everything was different from what he was used to. David was experiencing

A. overseas difficulties.

B. sociological struggles.

C. complexity issues.

D. culture shock.

E. adjustment pains.

d. culture shock

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) ________.

joint venture

MBO pact

bartering union

import agreement

export agreement

joint venture

True or False? For international expansion, joint ventures have a lower level of risk than franchising.

False

China does not allow foreign car manufacturers to sell vehicles independently in its country but instead requires them to partner with a Chinese company. This type of partnership is known as a

A. franchise agreement.

B. countertrade.

C. joint venture.

D. maquiladora.

E. greenfield venture.

c. joint venture

Recent protests against World Bank operations involve complaints of supporting countries permitting sweatshop labor or that restrict religious freedom, and ________.

a. ignoring major human rights violations in western Africa

b. encouraging fraudulent lending practices in Latin America

c. financing projects which could damage the ecosystem

d. financially assisting al Qaeda-linked governments

e. instituting unfavorable balance of payments in developing nations

c. financing projects which could damage the ecosystem

The principal organization that provides low-interest loans to developing nations for improving, for example, their transportation or education systems is

A. the World Bank.

B. the World Trade Organization.

C. the International Monetary Fund.

D. APEC.

E. GATT.

b. world bank

The ______ is controversial because it has been accused of financing projects, which harm the environment and of helping countries that permit sweatshops or suppress religious freedom.

A. World Bank

B. WTO

C. ASEAN

D. GATT

E. EU

a. world bank

What organizations promote international trade?

1) the World Trade Organization 2) the World Bank 3) the International Monetary Fund

Quality Air, a company that builds airplanes, typically utilizes other production companies that specialize in certain parts for its jets; this practice is known as ________.

trading

diversifying

MBO

outsourcing

bartering

outsourcing

True or False? Among the negative effects of global interdependency are outsourcing and higher-priced goods.

False

True or False? When U.S. companies hire UPS to conduct some of their logistics functions for them it is known as outsourcing

True

When a company uses a supplier outside itself to provide goods and services, it is

A. outsourcing.

B. countertrading.

C. franchising.

D. licensing.

E. privatizing.

a. outsourcing

Billie runs a successful cell-phone accessory store online. She loves designing and marketing the products, and she manages others who do the production, but the shipping had become a real problem. She decided to contract with FedEx to handle this logistical part of her business. Billie is

A. countertrading.

B. franchising.

C. outsourcing.

D. licensing.

E. privatizing.

c. outsourcing

George, a regional manager for a global corporation, is meeting with several upset managers from the Rome plant about Steve, the Rome facility manager originally from Florida. Phillipe, the assistant manager, tells George "We all feel that Steve only sees things his way and very seldom considers our perspective on things." Steve’s management style can be described as ________.

synergy-based

polycentrism

ecocentricism

parochialism

geocentrism

parochialism

True or False? A parochial manager is able to consider decisions and events from a variety of viewpoints

False

A narrow view in which people see things solely through their own perspective is known as

A. concentrism.

B. polycentrism.

C. geocentrism.

D. expatriatism.

E. parochialism.

e. parochialism

True or False? Ethnocentrism is a form of parochialism

True

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 ________.

total investment agreement

strategic alliance

maquiladoras

wholly-owned subsidiary

joint venture

wholly-owned subsidiary

True or False? A wholly owned subsidiary is the global expansion strategy with the highest risk and investment.

True

Skoda Auto, originally a Czech company and one that still manufactures there as well as in other international locations, is one of the largest automakers in Central Europe. In 2000, its acquisition by Germany’s Volkswagen Group was complete, and it is now one of four brands for that company. Skoda is now a ______ of Volkswagen.

A. maquiladora

B. strategically

C. wholly owned subsidiary

D. greenfield venture

E. licensee

c. wholly owned subsidiary

According to the findings of the GLOBE project, the assertiveness dimension represents the extent to which a society values ________.

a. performance improvement and excellence

b. confrontation and competitiveness

c. power distance and sharing

d. in-group collectivism and loyalty

e. altruism and caring

b. confrontation and competitiveness

True or False? The GLOBE project is a large, ongoing effort to find technological improvements to assist world trade.

False

True or False? According to the GLOBE project, the United States is among the countries highest in the cultural dimension of performance orientation.

True

True or False? The GLOBE cultural dimension that examines the extent to which a society should minimize gender discrimination and role inequalities is known as gender egalitarianism.

True

Which of the following is a cultural dimension measured in the GLOBE project?

A. Uncertainty avoidance

B. Hierarchical structure

C. Ethnic egalitarianism

D. Profit seeking

E. Ethical orientation

A. uncertainty avoidance

Which of the following is a cultural dimension in the GLOBE project?

A. Humane orientation

B. Power seeking

C. Ethnic egalitarianism

D. Failure avoidance

E. Group performance

a. human orientation

How much pride and loyalty people should have for their family or organization is a cultural dimension in the GLOBE project known as

A. institutional collectivism.

B. power distance.

C. social egalitarianism.

D. in-group collectivism.

E. human egalitarianism.

d. in-grouup collects

On GLOBE dimensions, the U.S. managerial sample scored high on

A. power distance and uncertainty avoidance

B. in-group collectivism and future orientation

C. assertiveness and performance orientation

D. institutional collectivism and uncertainty avoidance

E. masculinity and humane orientation

C. assertiveness and performance orientation

A group of 21 Pacific Rim countries whose purpose is to improve economic and political ties is known as the ________.

Association of Southeast Asian Nations

Pacific Economic Cooperation

GATT

Asia-Pacific Economic Cooperation

EU

Asia-Pacific Economic Cooperation

Which of the following is a major trading bloc?

A. GATT

B. APEC

C. GLOBE

D. IMF

E. WTO

APEC

China and the United States are both part of what trading bloc?

A. NAFTA

B. EU

C. ASEAN

D. Mercosur

E. APEC

E. APEC

To increase profitability, top management of a national retailer needs to decide if it will close several stores. Management knows that by closing the locations, it will save the company millions of dollars and benefit many stockholder groups and individuals, compared to keeping those stores open and benefiting fewer people. This logic is an example of the ________ approach.

individual

majority

moral-rights

utilitarian

justice

utilitarian

In considering a large-scale layoff, a manager performs a cost-benefit analysis and determines that profits will be greatest if she proceeds. She is using the ______ approach to guide her decision regarding an ethical dilemma.

A. individual

B. responsibility

C. utilitarian

D. moral-rights

E. justice

c. utilitarian

To focus on improving company customer service this year, the CEO outlined a list of stakeholders to concentrate on: distributors, local communities, and the mass media. These three groups are ________.

internal stakeholders

developmental stakeholders

interest groups

external stakeholders

vital stockholders

External stakeholders

True or False? Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization. In fact, he works for an American carmaker. Therefore Rafael is an external stakeholder for Pierson.

False

True or False? External stakeholders include labor unions.

True

True or False? For established companies, financial institutions are not external stakeholders.

False

True or False? The purpose of a code of ethics is to state an organization’s expectations for the behavior of all its external stakeholders.

False

Which of the following is an example of an external stakeholder for the department store chain Macy’s?

A. A member of the Macy’s board of directors.

B. A customer who purchases a mattress at Macy’s.

C. A sales associate at Macy’s.

D. Owners of Macy’s stock.

E. The CEO of Macy’s.

B. A customer who purchases a mattress at Macy’s.

Rebecca and Donna, owners of Fine Coffee and Pastry Shop, are concerned because Panera Bread is opening a new store just one mile from their shop. Rebecca and Donna know that Panera will be offering similar products; therefore, Panera Bread will be a ________ to Rebecca and Donna.

competitor

internal stakeholder

competitive ally

strategic ally

distributor

competitor

Gregson Production is keenly aware of the need to daily strive to produce goods and services more effectively than its competitors. Therefore, to achieve this standard, Gregson’s management strives to ____.

maintain quality and efficiency

True or False? Knowing the cultural tendencies of foreign business partners and competitors can give you a strategic competitive advantage.

True

John recently received his CPA license and plans to run a small tax consulting business, so he just put up a website. What advantage does his business have over larger competitors?

A. It has greater access to capital.

B. It has superior distribution.

C. It has more access to young talent.

D. It can change direction quicker.

E. It has well-defined bureaucratic systems.

D. It can change direction quicker.

True or False? Competitors compete solely for customers and raw materials.

False

True or False? Strategic allies may be organizations that are traditional rivals but combine their efforts to overcome a new competitor or other threat in the environment.

True

A florist should consider the grocery store chain Kroger to be a ________ because consumers are able to purchase the same products at Kroger stores as it sells in its own.

A. customer

B. strategic ally

C. supplier

D. distributor

E. competitor

e. competitor

American companies may be more willing to sue competitors to gain competitive advantage than those in other countries, which is an example of which type of force?

A. Special interest

B. Economic

C. Sociocultural

D. Political-legal

E. Demographic

d. political-legal

Phillip said to a dear friend, "I am fed up with my company’s continual disregard for human life and the environment. They just continue to secretly dispose of hazardous chemicals into a nearby stream. I don’t know how they get away with it! I am going to tell somebody today." Phillip’s decision to tell somebody about his company’s actions is an example of a(n) ________.

invisible hand

ethics officer

whistle-blower

preconventional manager

backstabber

whistle-blowing

True or False? In some cases, the IRS financially rewards whistle-blowers.

True

Jessica is an employee in a manufacturing plant who works the graveyard shift, midnight to 8 a.m. One night, she saw one of her managers dumping some chemicals down a storm drain in the parking lot. When she confronted him, he said this was standard procedure for some waste materials to avoid other costly disposal measures. When Jessica wrote a letter about it to the local newspaper she was a(n)

A. victim’s advocate.

B. activist.

C. gossip.

D. whistle-blower.

E. disloyal employee

d. whistle-blower

Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because this helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because this is also in the farmer’s best long-term interests, is reflected by the ________ approach to deciding ethical dilemmas.

group

moral-rights

justice

utilitarian

individual

individual

True or False? The flaw in the individual approach is that what results in the individual’s best interests is not always what is in everyone’s interest long term.

True

The individual approach is guided by what will result in the individual’s ________ best interests, which ultimately are in everyone’s self-interest.

A. shared

B. immediate

C. credible

D. long-term

E. observable

d. long-term

Ethics are ________.

a. behavior accepted as "right"
b. a type of written code for an organization
c. rules to be enforced in an organization
d. standards of right and wrong that influence behavior
e. influences arising from changes in the characteristics of a population

d. standards of right and wrong that influence behavior

True or False? The standards of right and wrong that influence behavior are called ethics.

True

True or False? Ethics training can enhance high ethical standards in the workplace, even when a company has of a strong code of ethics.

True

Standards of right and wrong that influence behavior are known as

A. ethics.

B. morals.

C. a value system.

D. ethical behavior.

E. values.

A. ethics

Which of the following statements about a code of ethics is most true?

A. A code of ethics is rarely a written document but instead an informal understanding between people who work for a particular organization.

B. Most codes of ethics offer guidance on how to treat stakeholders.

C. The purpose of a code of ethics is to keep top management out of jail.

D. Codes of ethics typically prohibit bribes unless it is the accepted way of doing business in a foreign country.

E. Workforce diversity is not covered in a code of ethics; instead it is usually covered in a separate diversity code.

B. Most codes of ethics offer guidance on how to treat stakeholders.

Corporate governance is the system ________.

a. that protects citizens against unethical state government

b. of monitoring corporate political donations

c. of monitoring an industry, such as attorneys, to ensure ethical practices

d. of governing an industry, such as the trucking industry, to protect customers

e. of governing a company so that the interests of corporate owners and other stakeholders are protected

e. of governing a company so that the interests of corporate owners and other stakeholders are protected

True or false? Having a Board of Directors whose outside membership is chosen by the CEO or works closely with the company itself strengthens corporate governance.

False

True or False? Shareholders of Chesapeake Energy sued the company, demanding corporate governance reforms.

True

The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as

A. corporate social responsibility.

B. the ethical climate.

C. philanthropy.

D. corporate governance.

E. the utilitarian approach.

d. corporate governance

Which of the following sparked renewed interest in corporate governance?

A. Scandals among CEOs who were eventually convicted of fraud.

B. Advances in technology that have dramatically improved communication.

C. Rising oil prices as well as higher prices for many other natural resources.

D. High-profile businesspeople creating charitable foundations.

E. An increasingly diverse workforce.

A. Scandals among CEOs who were eventually convicted of fraud.

Which of the following is recommended to improve corporate governance?

A. Getting directors involved in the day-to-day management issues of the firm.

B. Instituting an employee vote to hire or fire the CEO.

C. Setting up "golden parachutes" for CEOs.

D. Instituting a "cradle-to-grave" conceptualization of all new products.

E. Ensuring that directors are clearly separated in their authority from the CEO.

E. Ensuring that directors are clearly separated in their authority from the CEO.

Shareholders at Chesapeake Energy were most concerned about what corporate governance issue when they sued the company?

A. Sustainability

B. Philanthropy

C. Executive compensation

D. Embezzlement

E. Intrapreneurship

c. executive compensation

Amy, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company "that cares." So when asked to be on its board of directors, she gladly accepted the invitation. As a member of the board, Amy will be involved with the organization’s ________.

overall strategic goals and approval of major decisions

overall strategic goals and global HR management

oversight of sales and marketing

daily specific company goals and management of a specific department

daily company management and employee supervision

overall strategic goals and approval of major decisions

For organizations’ board of directors, and in particular, their oversight of the CEO, the biggest complaint appears to be _____.

the independence of the directors

Last week Paul, CEO of Quality Furniture in South Carolina, traveled to Europe to visit customers. While overseas, Paul checked his e-mail daily and visited his company’s website to show to customers. After visiting the last customer Friday morning, Paul was able to return to the corporate office to meet with his board of directors that night. This "shrinking" of time and space with air travel and electronic media defines ____.

global village

True or False? Some firms do not have a board of directors.

true

True or false? Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization. In fact, he works for an American carmaker. Therefore Rafael is an external stakeholder for Pierson.

false

An organization’s board of directors is part of its ______ environment.

A. internal

B. uncontrollable

C. external

D. task

E. general

internal

The group important in setting the organization’s overall strategic goals and for approving major decisions and salaries of top management is known as

A. employees.

B. stockholders.

C. the board of directors.

D. investors.

E. intrapreneurs.

c. board of directors

After more than 100 years in business, Don, the president of a successful family-owned company, wants to give back to the people of the community for the many years of success that they have given to my father and me. He decides to donate a significant portion of profits to a charity every year. What Don’s company is doing is an example of ________.

corporate social responsibility

responsibility code of ethics

economic responsibility

legal responsibility

corporate governance

corporate social responsibility

True or False? Corporate social responsibility (CSR) is the notion that corporations are expected to create a positive and enriching environment for employees.

False

True or False? Herman Miller, maker of office furniture, practices corporate social responsibility through sustainability efforts

True

True or False? Using in-name-only offshore headquarters to minimize U.S. tax burdens is an example of corporate social responsibility.

False

True or False? Ethical responsibility is at the top of Carroll’s corporate social responsibility pyramid.

False

Kelly runs a growing business in Birmingham and wants to do more than lead a successful and law-abiding company. She intends to make a difference in her community by helping with issues like poverty and high unemployment. Kelly believes in

A. corporate paternal accountability.

B. the fair skies concept.

C. corporate social responsibility.

D. the corporate protection concept.

E. corporate welfare.

C. corporate social responsibility.

Which of the following forms the base of Carroll’s global corporate social responsibility pyramid?

A. Philanthropic responsibility

B. Economic responsibility

C. Ethical responsibility

D. Moral responsibility

E. Legal responsibility

B. Economic responsibility

A formal written set of ethical standards guiding an organization’s actions is a(n) ________.

code of ethics

moral compass

business plan

dilemma document

ethical plan

code of ethics

The employees of Mom’s Pizza, a local pizza restaurant, feel that the owners and managers really try to follow the ethical policies outlined in their company’s code of ethics. Pete, a cook, said that "Just today, Joe, our manager, called our supplier to let them know we received an extra case of tomatoes that we did not pay for. And they do this type of thing almost every day." Mom’s Pizza maintains a(n) _____.

ethical climate

Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because this helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because this is also in the farmer’s best long-term interests, is reflected by the ________ approach to deciding ethical dilemmas.

justice

individual

utilitarian

group

moral-rights

individual

Local communities are stakeholders of organizations because communities ________.

need the publicity of national organizations

wish to join forces with organizations to create strategic alliances

rely on the tax base from companies, and their employee payrolls, to thrive

enjoy the changes that progress tends to bring

rely on the products the companies produce

rely on the tax base from companies, and their employee payrolls, to thrive

To focus on improving company customer service this year, the CEO outlined a list of stakeholders to concentrate on: distributors, local communities, and the mass media. These three groups are ____

external stakeholders

True or False? There are stakeholders in both an organization’s internal and its external environments.

True

True or False? Only those with an ownership interest in a company are known as stakeholders.

False

True or False? Internal stakeholders include the employees of an organization.

True

True or False? In an organization’s environment, internal stakeholders include the customers of an organization.

False

True or False? To a commercial airline, the Federal Aviation Agency (FAA) is an example of a stakeholder.

True

Which of the following is an example of an internal stakeholder of an organization?

A. A local news station.

B. The distributor for one of the finished products.

C. A newly formed union.

D. The largest stockholder of the company.

E. The suppliers of raw materials for one of the products.

D. The largest stockholder of the company.

As part of his overall stock portfolio, Jason bought a few shares of Facebook. In this context, he would best be described as ______ of Facebook.

A. being part of the task environment

B. an internal stakeholder

C. an economic force

D. being part of the general environment

E. a member of the board of directors

b. an internal stakeholder

Amazon.com maintains an easy-to-use website, has an accessible service phone number, and offers an inexpensive annual shipping fee primarily in an effort to serve which stakeholders?

A. Distributors

B. Strategic allies

C. Government regulators

D. Financial institutions

E. Customers

e. customers

________ are stakeholders of organizations because they rely on the tax base companies help create, as well as their employee payrolls, to thrive.

A. Special-interest groups

B. Government regulators

C. Mass media

D. Local communities

E. Financial institutions

d. local communities

Joe, owner of ABC Electronics, just discovered that his trusted friend Paul, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Joe must decide whether to publicly ignore his friend’s actions and avoid bad publicity for the firm, an example of ________.

an ethical dilemma

corporate governance

a social audit

a synergy factor

a whistle-blower

an ethical dilemma

With recent reports of identity theft, Mr. Jones, the CEO of a construction company, is concerned about his employees’ privacy, and because of recent accidents on the job, he is also worried about the safety of his workers. Mr. Jones’s concerns with privacy and health and safety are outlined in the _____ approach to deciding ethical dilemmas.

moral rights

When Bernard Madoff used money from newer investors to pay off older ones, this was an example of ____.

ethical dilemma

Which of these is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal?

A. Ethics question

B. Ethical behavior

C. Moral decision

D. Ethical dilemma

E. Morality situation

d. ethical dilemma

Jack is working overseas, and has been asked by a superior to present a government official with a cash payment in order to secure a contract. This makes Jack uncomfortable since he does not feel it is right, yet he worries about upsetting his boss. Jack is facing

A. political-legal trends.

B. an ethical dilemma.

C. a moral-rights approach by his boss.

D. an idealistic situation.

E. sociocultural trends.

b. an ethical dilemma

Issues like privacy, health and safety, and due process that are described as basic rights are typically tied to which of the following approaches to deciding ethical dilemmas?

A. Utilitarian

B. Justice

C. Individual

D. Liberty

E. Moral rights

e. moral rights

Globalization is the trend ________.

toward one world economy and banking system

of the world economy becoming a less dependent system

of the world economy adding more independent markets

of the world economy toward becoming a more interdependent system

toward one world language and culture

of the world economy toward becoming a more interdependent system

True or False? Globalization is defined as the elimination of all trade barriers worldwide.

False

The trend of the world economy toward becoming a more interdependent system is called

A. international cooperation.

B. globalization.

C. world partnership.

D. economic defragmentation.

E. international unification.

b. globalization

Free trade is the ________.

policy of cost-free exchange of goods

movement of customers between nations that do not have trade embargoes

bartering or sale of goods without taxes

bartering of goods or services locally or globally

movement of products between countries without political or economic obstruction

movement of products between countries without political or economic obstruction

True or False? Free trade is the movement of goods and services among nations without political or economic obstruction

True

The movement of goods and services among nations without political or economic obstruction is called

A. trade policy.

B. free trade.

C. trade protectionism.

D. privatization.

E. trade embargo.

b. free trade

Ethnocentric managers believe that their native country, culture, language, and behavior ________.

are outdated

are hurtful to others

need to be changed

are equal to all other cultures

are superior to all others

are superior to all others

True or False? Successful international managers are most likely to be geocentric rather than ethnocentric or polycentric

True

__________ managers believe that their native country, culture, language, and behavior are superior to all others.

A. Expatriate

B. Ethnocentric

C. Geocentric

D. Polycentric

E. Global

ETHNOCENTRIC

Ethnocentrism among international managers has been linked to

A. higher performance by foreign subsidiaries.

B. lower turnover among employees in foreign subsidiaries.

C. fewer lawsuits over personnel policies within foreign subsidiaries.

D. recruitment difficulties for foreign subsidiaries.

E. poor-quality products from foreign subsidiaries.

D. recruitment difficulties for foreign subsidiaries.

Christine prefers not to deviate from the practices she has always used as a U.S. manager, even though she is now working at an Asian subsidiary. She has been heard saying that she is "just ensuring the job gets done right." Christine is most likely a(n) ________ manager.

A. ethnocentric

B. concentric

C. prejudicial

D. polycentric

E. geocentric

ETHNOCENTRIC

Don, the owner of a fishing business, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization’s ________ performance.

financial, diversity, environmental

marketing, profit, efficiency

social, environmental, financial

social, effectiveness, financial

social, synergy, diversity

social, environmental, financial

A nation’s culture is ________.

a favorable trading agreement toward other nations

a shared set of business traditions common to the nation

the laws that are accepted as good morally by most of the citizens

its constitution and written codes of behavior

the shared set of beliefs, values, knowledge, and patterns of behavior common to its people

the shared set of beliefs, values, knowledge, and patterns of behavior common to its people

When communicating across cultures, the best option regarding language use is _____.

learn the local language

True or False? Most of what we know about our native culture we have learned through formal education

False

A nation’s __________ is the shared set of beliefs, values, knowledge, and patterns of behavior common to its people.

A. economic policy

B. culture

C. social pattern

D. demography

E. political process

B. CULTURE

Alice’s Pasta Kitchen makes quality pasta and sells its products to customers in other countries. This is an example of ________.

exporting

dumping

importing

bartering

countermarketing

exporting

True or False? Dumping is the practice of a foreign company exporting products abroad at a lower price than the price in the home market, or even below the costs of production, in order to drive down the price of the domestic product.

True

A company that is producing goods domestically and sells them outside the country is involved in

A. countertrading.

B. outsourcing.

C. importing.

D. exporting.

E. franchising.

d. exporting

__________ is the practice of a foreign company exporting products abroad at a lower price than the price in the home market or even below the costs of production in order to drive down the price of the domestic product.

A. Export crashing

B. Dumping

C. Predatory selling

D. Loss transaction

E. Alien advantage

dumping

An organization’s internal stakeholders consist of ________.

board of directors, customers, owners

competitors, the community, suppliers

board of directors, employees, owners

board of directors, employees, suppliers

customers, families of employees, employees

board of directors, employees, owners

Business scholar Archie Carroll suggested that the first and primary responsibility of an organization in the global economy is to ___.

be profitable consistent with expectations for international business

The economic community that includes China and Thailand is the

A. NAFTA.

B. EU.

C. ASEAN.

D. Mercosur.

E. IMF.

C. ASEAN

The city government of Pleasantville promised significant tax breaks to a large retailer if it expanded its presence, which would result in nearly 200 new local jobs. However, the retailer found another location better for expansion. As a result, the city of Pleasantville instituted clawbacks by _____.

rescinding the tax breaks

A state government offered a German solar research company a tax break if it located its U.S. headquarters in that state because of the new jobs that would be created. Unfortunately, problems occurred, resulting in little company growth and few new jobs. As a result, the state instituted a ______ by rescinding the tax breaks.

A. clawback

B. reallocation

C. tax amendment

D. reformation

E. levy turnabout

a. clawback

True or False? Great communications systems have been a hallmark of great civilizations.

True

The earliest forms of communication, the hallmark of great civilizations, were based on

A. personal relationships.

B. technology.

C. transportation.

D. warfare.

E. agriculture.

Transportation

True or False? Countertrading refers to a company producing goods domestically and selling them outside the country

False

True of False? If a country’s currency drops dramatically and it is unable to import the goods it needs, then an exporter who trades with that country may turn to countertrading.

True

A company that barters goods for other goods is involved in

A. outsourcing.

B. countertrading.

C. importing.

D. exporting.

E. franchising

b. counter trading

Recently, the Chinese government exchanged 212 railway trucks full of mango juice for a passenger jet from a Russian company. The Russian company is involved in

A. importing.

B. franchising.

C. pseudo-exporting.

D. outsourcing.

E. countertrading.

e. counter trading

Don’s Carpet installed carpet at no cost for City Office Supply, in exchange for $1,000 of office supplies. This is an example of ____.

counter trading

True or False? Customers are those who pay to use an organization’s goods or services.

True

True or False? Customers have more faith in health insurance companies to handle complaints than they have in apparel outlets.

False

A __________ is a person or organization that helps another organization sell its goods and services to customers.

A. financier

B. supplier

C. strategic ally

D. distributor

E. special-interest group

distributor

Omar is a human resources manager for a large landscaping and exterior construction company called Northwest Patios. A local news station has just done a story on several dissatisfied customers and their complaints of shoddy work. Omar has had two other media outlets contact him this morning too. Based on research on the effects of such publicity, Omar should expect that

A. job applications will increase, though rates of candidates accepting job offers will decline.

B. employee retention will improve.

C. both rates of candidates accepting job offers and employee retention will slide.

D. job applications will decrease but employee retention will stay the same.

E. no substantive changes in applications, offer acceptance or retention will occur.

C. both rates of candidates accepting job offers and employee retention will slide.

Because Ace Development Services is the only company that supplies a critical product for clients, customers of Ace are likely to ____.

put up with poor-quality products

At times, customers have an unexpected need and require certain departments, such as production, to change their schedule to meet the demands of the sales department. When Susan, the vice president of marketing, is involved in resolving this conflict, this is an essential part of which management function?

leading

George, who owns a small grocery store, has a reputation in the community as a tough manager. Many customers have heard George yell at his employees because he feels that workers today are lazy, lack ambition, and hate to work. George is a(n) ____ manager.

Theory X

For years ABC Copier, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of its competition. However, over the years, ABC seldom asked customers for feedback. So when some of ABC’s competition responded to what customers need and started offering copiers with new technology, ABC lost much of its market share. ABC utilizes a(n) ____ system.

closed

True or False? Far East Chop House is an American restaurant that purchases beef from a Nebraska company that raises Japanese cattle. The Nebraska company would best be described as a distributor for the Far East.

False

True or False? Distributors have been hurt by the rise in popularity of the Internet.

True

True or False? When the independent, high-end U.S. Grant hotel in downtown San Diego joined Starwood’s Luxury Collection of hotels to gain "worldwide exposure," it was an example of a distributor relationship.

False

Distributors are part of the ______ environment of organizations.

A. alliance

B. task

C. sociopolitical

D. general

E. internal

b. task

True or False? For convenience, you purchase tickets to see the Black Keys through StubHub rather than from the venue itself. In this case, StubHub acts as a

A. strategic ally.

B. supplier.

C. repackager.

D. special-interest group.

E. distributor

e. distributor

The marketing director informed his employees that he feels the company needs to improve its relationship with the distributors of the company’s products to increase market share because they are part of the ______ environment of the company.

task

When a food distributor looks at changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America, it is looking at the ____ forces.

demographic

Import quotas are designed to prevent

A. embargoes.

B. dumping.

C. exports.

D. tariffs.

E. outsourcing.

b. dumping

Wheat producers in the United States claim that the Canadian Wheat Board is selling wheat imported into the United States at unreasonably low prices, and they fear depression of their own prices. The U.S. producers are accusing the Canadians of

A. creating an embargo.

B. unfair foreign advantage.

C. export crashing.

D. loss transactions.

E. dumping.

e. dumping

China has been accused by shrimpers in South Louisiana of selling shrimp in the United States at a lower price than U.S. suppliers to drive down the price of American shrimp. The U.S. shrimpers are accusing the Chinese of ___.

dumping

True or False? E-commerce refers to the buying and selling of products and services through computer networks.

True

True or False? The economic integration of the European Union can best be considered part of the economic forces.

False

True or False? Cuban cigars and sugar cannot legally be imported into the United States because of a trade embargo

True

South Korea recently lifted its ban on beef and beef products imported from Canada, one that had originated because of cases of bovine spongiform encephalopathy (BSE) among Canadian cattle. The ban is an example of a(n)

A. revenue tariff.

B. boycott.

C. embargo.

D. protective tariff.

E. import quota.

c. embargo

The United States has prohibited the import of sugar and cigars from Cuba. This is an example of a(n) ___

embargo

True or False? Ethical behavior is defined as a behavior that creates the greatest good for the greatest number of people.

False

True or False? A moral-rights approach to ethical behavior taken by a manager would often result in her performing a "cost-benefit" analysis.

False

True or False? The approach to ethical behavior that is guided by respect for fairness and equity is the integrity approach.

False

True or False? It is still unclear whether ethical behavior and social responsibility give an organization a competitive advantage.

False

Aaron is a manager at a local live music venue. He is developing a new online system for advance ticket sales. Some of the shows have been so popular that tickets sell out quickly and regular patrons have complained that with a slow Internet connection they have no chance to purchase. In an effort to be fair to all prospective customers, Aaron is using what approach to ethical behavior?

A. Utilitarian

B. Individual

C. Moral-rights

D. Justice

E. Environmental

d. justice

An ethical _________ represents employee’s perceptions about the extent to which work environments support ethical behavior.

A. climate

B. atmosphere

C. code

D. structure

E. hierarchy

…

True or False? An example of a trading bloc is the European Union.

True

True or False? An inherent weakness of the European Union is that stronger countries may have to rescue weaker ones that are in financial crisis.

True

The EU has recently agreed to cut the taxes it charges on bananas imported from Central and South America. This tax is a type of

A. embargo.

B. tariff.

C. import quota.

D. predatory selling.

E. boycott.

b. tariff

The __________ is the rate at which one country’s currency can be exchanged for another country’s currency.

A. exchange rate

B. GATT

C. terms of transaction

D. interest rate

E. return rate

a. exchange rate

Jill, a native of New Orleans, was living in Berlin and working for a U.S. news magazine. Jill would best be termed a(n)

A. countertrader.

B. franchisor.

C. expatriate.

D. outsourcer.

E. refugee

C. expatriate.

A government’s seizure of a domestic or foreign company’s assets is known as ____.

expropriation

True or False? When DuPont agrees to let a Brazilian company make its product Teflon, the nonstick coating, in its local market for a fee it is called franchising.

False

True or False? If Toys R Us provides the use of its name plus its operating know-how to a company in Poland in return for an upfront fee plus a percentage of the profits, Toys R Us would be participating in franchising.

True

Pizza Hut provides the use of its name plus operating know-how to companies in Costa Rica in return for a fee plus a percentage of profits. Pizza Hut is

A. exporting.

B. franchising.

C. countertrading.

D. involved in a strategic alliance.

E. involved in a greenfield venture.

b. franchising

True or False? In business, the extended environment is another name for general environment.

False

True or False? The mass media is part of an organization’s general environment.

False

True or False? As a manager, you cannot control the forces in the general environment

True

True or False? Factors such as unemployment conditions and interest rates would be considered part of demographic forces in an organization’s general environment.

False

The general environment of an organization is also known as its

A. forcefield.

B. macroenvironment.

C. global sphere of influence.

D. task environment.

E. control climate.

b. macroenviornment

Inflation is an example of ______ forces in an organization’s general environment.

A. economic

B. technological

C. political-legal

D. sociocultural

E. demographic

a. economic

Tom and his managers are discussing the unemployment, inflation, and interest rate trends that might affect his chain of coffee shops over the next 12 months and the projected growth in the areas where his stores are located. The managers are studying the ______ forces in their organization’s general environment.

economic

Patsy, a nurse, has decided to start a home health care service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Patsy is focusing her marketing efforts on the older adult population; as she does this, she is involved with the _____ environment.

general

True or False? The global economy refers to the heightened economic regulation of many national markets as they protect themselves from one another.

False

True or False? The global economy refers to worldwide conditions by which goods, people, and money can move more freely.

True

True or False? The global economy has had a revitalizing effect on some parts of industrial America.

True

Which of the following is an event that helped spur the inception of the global economy?

A. The opening of Asian markets to foreign investors.

B. Improved race relations worldwide.

C. The industrial revolution.

D. The invention of the Internet.

E. The increasing regulation of economies across the world.

A. The opening of Asian markets to foreign investors.

Which of the following is a negative effect for the United States of global economic interdependency?

A. Decreased economic activity

B. Poorer quality goods

C. Lower standards of living

D. Loss of well-paying jobs

E. More expensive products

d. loss of well-paying jobs

true or false? air travel and electronic media have made the global village phenomenon possible.

true

True or False? The term global village refers to the tendency for various cultural groups to cluster in small pods throughout the world.

False

Which form of technology was exploding when the notion of a "global village" was first developed?

A. Newspapers

B. Telephones

C. Television

D. Cell phones

E. The Internet

c. televison

Last week Paul, CEO of Quality Furniture in South Carolina, traveled to Europe to visit customers. While overseas, Paul checked his e-mail daily and visited his company’s website to show to customers. After visiting the last customer Friday morning, Paul was able to return to the corporate office to meet with his board of directors that night. This "shrinking" of time and space with air travel and electronic media defines ____.

global village

True or False? Government regulators are regulatory agencies that establish ground rules under which organizations may operate

True

True or False? The National Rifle Association is an example of a government regulator.

False

Last summer a representative of OSHA, the agency responsible for enforcing health and safety regulations, visited one of Emilio’s construction sites and his company, Gutierrez Construction, was fined for several violations. To this company, OSHA represents a ______, part of an organizations’ ______.

A. special-interest group; task environment

B. government regulator; general environment

C. political-legal force; general environment

D. special-interest group; external environment

E. government regulator; task environment

E. government regulator; task environment

True or false? A greenfield venture is a foreign subsidiary created to exploit previously untapped natural resources in another country

False

True or False? Two of the reasons companies expand internationally are to take advantage of the availability of suppliers, or to charge tariffs or impose import quotas

False

True or False? An import quota is a trade barrier in the form of a customs duty, or tax, levied mainly on imports

False

The United States limits the amount of cheese purchased from other countries; this policy is a type of ____.

import quota

Seref purchases handcrafted Turkish rugs overseas and brings them to the United States to sell in his retail store. He is involved in

A. outsourcing.

B. countertrading.

C. importing.

D. franchising.

E. exporting.

C. importing.

True or False? The organization that assists in smoothing the flow of money between nations is the International Monetary Fund

True

True or False? Recently, the International Monetary Fund has had a high-profile role in assisting some weaker European countries, including making loans to Greece, Portugal, and Ireland.

True

True or False? Arabs prefer a larger interpersonal space when communicating than Americans.

False

______ is the illegal buying or selling of a company’s stock by people using confidential company information.

A. A whistle-blower

B. Stock exploitation

C. Insider trading

D. Tip abuse

E. A Ponzi scheme

c. insider trading

When communicating across cultures, the best option regarding language use is ____

learn the local language

When a company allows a foreign firm to pay it a fee to make or distribute the first company’s product or service it is called

A. outsourcing.

B. franchising.

C. licensing.

D. countertrading.

E. a joint venture.

c. licensing

Eli Lilly has agreed to let a South African company manufacture several of Eli Lilly’s diabetes drugs and pay Eli Lilly a fee to distribute the drugs with a different brand name in South Africa. Eli Lilly is engaging in

A. licensing.

B. franchising.

C. countertrading.

D. a strategic alliance.

E. a greenfield venture.

a. licensing

In a(n) ______, shared meanings are primarily derived from written and spoken words rather than situational cues.

A. core values system

B. low-context culture

C. expatriate system

D. societal value system

E. high-context culture

b. low-context culture

True or False? Maquiladoras are manufacturing plants allowed to operate in South and Central America with special privileges in return for employing citizens in these countries.

False

Polo Ralph Lauren, Tommy Hilfiger, and Wrangler manufacture jeans at plants in Mexico, thanks to the inexpensive labor there and various tax breaks from the Mexican government. These companies are

A. repatriating.

B. using maquiladoras.

C. countertrading.

D. franchising.

E. licensing.

b. using maquiladoras

True or False? The Mercosur is composed of countries in southeast Asia

False

Which of the following countries is a member of Mercosur?

A. China

B. Paraguay

C. Greece

D. Panama

E. Mexico

b. paraguay

_____ time is a preference for doing one thing at a time.

A. Singular

B. Unichronic

C. Monochronic

D. Absolute

E. Unitary

c. monochromic

True or False? Human trafficking is unethical according to the moral-rights approach

True

True or False? The purpose of granting "most favored nation" status to another country is to promote tourism

False

______ is a trading status that describes a condition in which a country grants other countries favorable trading treatment such as a reduction of import duties.

A. Most favored nation

B. Liberty status

C. Protected trade

D. Mercosur

E. Free trading status

a. most favored nation

True or False? A multinational corporation is a nonprofit organization with operations in several countries

false

True or False? The World Health Organization is an example of a multinational organization

True

True or False? A foreign subsidiary that is totally owned and controlled by an organization is called a multinational

False

BHP Billilton is an Australian mining company with operations in Brazil, Canada, South Africa, and the United States, among other countries. This company is a

A. multiregional conglomerate.

B. multinational organization.

C. global concern.

D. multiregional firm.

E. multinational corporation.

E. multinational corporation.

Oxfam International is a nonprofit that works in 90 countries on issues of poverty advocacy and eradication, as well as disaster relief. Oxfam is a(n)

A. multinational corporation.

B. global aid firm.

C. international philanthropy.

D. multinational organization.

E. global charity.

d. multinational organization

The International Red Cross is an example of a

A. multinational organization.

B. multigovernment organization.

C. international social corporation.

D. multinational corporation.

E. global philanthropy

A. multinational organization.

True or False? Mexico is part of NAFTA

True

Over 682,000 U.S. workers have lost their jobs because they were moved south of the border as a result of

A. NAFTA.

B. WTO.

C. Mercosur.

D. IMF.

E. EU.

NAFTA

True or False? Offshoring is defined as using suppliers outside the home country to provide labor, goods, or services

True

True or False? If you can describe a job precisely, or write rules for doing it, it is protected against offshoring

False

Employees at Zachary’s Chicago Pizza in California can purchase company stock and thus become owners through a device called

A. a trustees arrangement.

B. participative management.

C. bond sharing.

D. an employee stock ownership plan.

E. profit sharing.

D. an employee stock ownership plan.

People who can claim an organization as their legal property are called

A. owners.

B. the board of directors.

C. financial institutions.

D. customers.

E. employees.

a. owner

True or False? Philanthropy means making charitable donations to benefit humankind.

True

True or False? Andrew Carnegie, steel magnate and supporter of free libraries, is an example of a philanthropist.

True

Google made a pledge to investors when it went public to reserve 1% of its profit and equity to "make the world a better place." This is an example of corporate

A. fairness.

B. correctness.

C. greenworks.

D. philanthropy.

E. sustainability.

d. philanthropy

True or False? Political-legal forces are changes in the economic, political, legal, and technological global system that may affect an organization.

False

American companies may be more willing to sue competitors to gain competitive advantage than those in other countries, which is an example of which type of force?

A. Special interest

B. Economic

C. Sociocultural

D. Political-legal

E. Demographic

D. Political-legal

True or False? Managers who take the view that native managers in foreign offices best understand native personnel and practices, and so the home office should leave them alone, are called polycentric managers

True

True or False? Polycentric managers accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.

False

True or False? In polychronic time, time is viewed as being flexible and multidimensional.

True

polycentric manager believes that

A. organizations should maximize the number of managers from different countries in foreign operations.

B. her country and culture are superior.

C. managers in foreign countries should follow corporate procedures.

D. native managers in foreign offices best understand native personnel and practices.

E. managers in foreign countries should use whatever techniques are most effective.

D. native managers in foreign offices best understand native personnel and practices.

Bradley was working for the summer in Costa Rica. He had made arrangements with a business associate to give him a ride to a nearby town at 10 a.m. He was very upset when his ride had still not appeared by 10:30. Bradley did not understand that ______ time is common in Latin America.

A. variable

B. monochronic

C. multitask

D. delayed

E. polychronic

e. polychromic

Tom and his fiancé Susan decided to have their wedding on a beach in Acapulco, Mexico. Some services for the wedding, such as the limousine and the catering services, were local. Throughout the weekend of the wedding, the couple found that workers and things for their wedding arrived late. In response, the Mexican workers remarked, "Ustedes tiene que ser flexibles," which in English means, you have to be flexible with time. This attitude regarding time is considered _____.

Polychronic time

True or False? the religion with the most followers worldwide is Hinduism.

False

True or False? The Sarbanes-Oxley Act was a response by Congress to an array of high-profile U.S. business scandals at the beginning of the 21st century.

True

The Sarbanes-Oxley Act of 2002 requires that a company’s chief executive officer and chief financial officer must comply with which of the following?

A. Open personal lines of credit.

B. Hire an ethics officer.

C. Set procedures and guidelines for the board of directors.

D. Hire a diversity officer.

E. Personally certify financial reports.

E. Personally certify financial reports.

True or False? An interest in health and fitness leading to a boost in sales of athletic shoes demonstrates a sociocultural force.

True

________ forces are influences and trends originating in human relationships and values that may affect an organization.

A. Sociocultural

B. Special-interest

C. Demographic

D. Political-legal

E. Media

A. Sociocultural

The American epidemic of obesity among U.S. youth is an example of which external force?

A. Sociocultural

B. Special interest

C. Demographic

D. Political-legal

E. Media

A. Sociocultural

True or False? The two parts of the external environment are the task environment and the socio-political environment.

False

Americans driving less and young people having less interest in cars are examples of trends in society known as ____ forces.

sociocultural

After the disastrous oil spill in the gulf, many consumers decided to avoid BP products, many even joining a popular "Boycott BP" Facebook page. Stuart runs an independent BP gas station in Louisiana and his business suffered from this consumer response. In this instance, boycotters would be considered a ______, part of the gas station’s ______ environment.

A. special-interest group; task

B. local community; task

C. demographic force; general

D. sociocultural force; task

E. local community; general

A. special-interest group; task

Joe, a lobbyist who represents a certain industry, is meeting with several members of Congress to try to exert political influence by contributing funds to the lawmakers’ election campaigns. Joe also is involved in a letter-writing campaign to promote his cause. Joe represents a ____.

special-interest group

Two organizations who join forces to achieve advantages neither can perform as well alone would be called

A. union partners.

B. strategic allies.

C. distributors.

D. special interests.

E. regulatory institutions.

b. strategic allies

A large athletic shoe company has agreed to work with a smaller company that has a new line of athletic clothing since the bigger firm does not have a similar offering and the smaller firm has limited experience in marketing and distribution. The two firms could be described as

A. union partners.

B. strategic allies.

C. distributors.

D. special interests.

E. regulatory institutions.

b. strategic allies

Ole McDonald, a successful farm equipment supply company in the Midwest, joined with A-Plus Supply, a national hardware and home retailer, so Ole McDonald can open stores in other regions and A-Plus can now offer a high-quality product in the farm community. This is an example of a ___ relationship.

strategic allies

True or False? A supplier is a person or an organization that provides materials or labor to consumers.

False

A U.S. paper mill purchases wood from a Canadian logging company to make wood pulp in its production of paper, so in this case the logging company is a

A. customer.

B. strategic ally.

C. supplier.

D. distributor.

E. special-interest group.

c. supplier

True or False? A tariff is a limitation on the numbers of products allowed into a country, imposed by its government to protect domestic industries

False

True or False? One way to avoid a tariff is to create a subsidiary to produce the product in the foreign country imposing that tariff

True

True or False? A revenue tariff is designed to protect domestic products from foreign imports by raising the price of the latter.

False

True or False? Tariffs are common today and still growing in number since they have a long history of successfully protecting jobs in this country.

False

True or False? As a result of recent negotiations, the General Agreement on Tariffs and Trade (GATT) is expected to supersede the WTO by 2015.

False

A duty imposed on imported goods designed simply to raise money for the government is known as a(n)

A. protective tariff.

B. income quota.

C. income embargo.

D. revenue tariff.

E. import quota.

d. revenue tariff

True or False? The task environment consists of groups that present workers with daily tasks to handle

true

______ are in an organization’s external task environment.

A. Employees

B. International forces

C. Owners

D. Lenders

E. Demographic forces

lenders

Which of the following organizations succeeded GATT?

A. World Trade Organization

B. World Bank

C. EU

D. International Monetary Fund

E. NAFTA

A. world trade organization