1. MGT 350 Final ExamSET 2
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1) The key management functions include:
A. Planning, operations, labor, and contracting
B. Planning, leading, controlling, and organizing
C. Marketing, finance, accounting, and production
D. Hiring, training, appraising, and firing
2) Building a dynamic organization is another way of describing which function of
management?
A. Leading
B. Planning
C. Organizing
D. Controlling
3. The moral principles and standards that guide behavior in the world of
business are called:
A. Business principles
B. Business ethics
C. Business development
D. Business philosophy
4. _______________ involves analyzing a situation, determining goals to be
pursued, and deciding upon the actions that will be taken to achieve these goals.
A. Organizing
B. Staffing
C. Leading
D. Planning

2. 5. The macroenvironment includes all of the following EXCEPT:
A. International developments
B. Technology
C. Government policies
D. New entrants
6. Robert was recently hired as the workplace safety compliance officer at ABC
Power Company. Robert will have the responsibility to monitor regulations from
which of these government agencies?
A. Federal Communications Commission
B. National Labor Relations Board
C. Environmental Protection Agency
D. Occupational Safety and Health Administration
7) Specific government organizations in a firm's immediate task environment are
called ______________.
A. substitutes
B. regulators
C. new entrants
D. economic indicators
8. A clear advantage of the product form of departmentalization is that task
responsibilities are clear.
A. True
B. False
9. The first step in effective delegation is selecting the person to whom you will
delegate.
A. True
B. False
10) The targets or ends the manager wants to reach are called:

3. A. Goals
B. Mission statement
C. Plans
D. Vision
11) Which is the first step in the formal planning process?
A. Goal and plan evaluation
B. Monitor and control
C. Situational analysis
D. Implementation
12) The outcome of situational analysis is:
A. The identification of alternative plans of action
B. The identification of planning assumptions, issues, and problems
C. The identification of contingency plans to be followed under various scenarios
D. The identification of the consequences of alternatives under consideration
13) A plan designed to achieve a set of goals that are not likely to be repeated in
the future is a:
A. Standing plan
B. Strategy
C. Single-use plan
D. Mission statement
14) A plan to integrate new employees into a new system of payroll is an example
of which type of plan? Assume that you anticipate making this change only once.
A. Standing plan
B. Implementation plan
C. Single-use plan
D. On-site plan

4. 15) _____________ plans might be referred to as "what-if" plans.
A. Single-use
B. Contingency
C. Strategic
D. Standing
16) Honesty, caring, loyalty, fairness, and integrity are all examples of:
A. Citizenship
B. Self-focus
C. Values
D. Ethics
17) Which of the following statements is TRUE regarding employee behavior?
A. When corporations behave badly, it is usually not the problem of top
executives or rank-and-file employees.
B. There is no evidence that corporations ever behave badly .
C. When corporations behave badly, rank-and-file employees suffer most.
D. When corporations behave badly, only the top executives suffer.
18) The moral principles and standards that guide behavior in the world of
business are:
A. Business philosophy
B. Business ethics
C. Business development
D. Business principles
19) The assignment of additional responsibilities to a subordinate is referred to
as:
A. Pandering
B. Delegation

5. C. Centralization
D. Span of control
20) Human resources planning has three stages. They are:
A. Hiring, training, and firing
B. Recruiting, screening, and hiring
C. Planning, programming, and evaluating
D. Planning, executing, and delivering
21) Companies use empowerment programs, continuous improvement, and total
quality initiatives to achieve:
A. Imitation
B. Rareness
C. Value
D. Complete organization
22) The assignment of different tasks to different people or groups is the:
A. Organization structure
B. Value chain
C. Division of labor
D. Strategic plan
23) A process in which different individuals and units perform different tasks is:
A. Authority
B. Differentiation
C. Specialization
D. Accountability
24) Which of these is created through the division of labor and job specialization?
A. Coordination

6. B. Span of control
C. Differentiation
D. Integration
25) Which of the following is an advantage of product departmentalization?
A. Suitable for stable environments
B. Decision making and lines of communication are simple
C. Efficient resource utilization
D. Information needs managed more easily
26) Which of the following statements regarding departmentalization is FALSE?
A. Organizations will be most effective if they utilize a consistent form of
departmentalization.
B. Geographical departmentalization can allow an organization to provide faster
service.
C. In a product structure, information needs are managed more easily.
D. Functional departmentalization is not as strong an organizational building block
as it once was.
27) Ruby recently accepted a job with a large insurance firm as an internal
auditor. Ruby has found that her job is different than the internship she had at an
accounting consulting firm. The insurance firm has strictly defined job
responsibilities and lines of communication. For every decision Ruby needs to
make, approval must be obtained from upper management. Overall, she has
found the atmosphere to be quite formal as compared to the internship. Ruby has
concluded that the insurance firm has:
A. Decentralized authority
B. An ineffective structure
C. A matrix design
D. A high degree of centralization
28) A mental image of a possible and desirable future state of the organization is
a(n):

7. A. Vision
B. Strategic plan
C. Goal
D. Operational plan
29) Which of the following statements regarding vision is NOT accurate?
A. A single, unchanging vision is appropriate for all organizations.
B. Many people do not develop a clear vision.
C. A person can develop a vision for any task.
D. Many people focus on performance, day-to-day survival.
30) _______ power is dominant when a leader utilizes his or her ability to control
rewards.
A. Referent
B. Legitimate
C. Coercive
D. Reward
31) Legitimate power is described as power that exists through:
A. Having expertise
B. Control over punishments
C. The authority to tell others what to do
D. Control over rewards
32) Which type of power is dominant when a leader utilizes her ability to control
punishments?
A. Referent power
B. Legitimate power
C. Coercive power
D. Reward power

8. 33) Behavior that gives purpose and meaning to organizations, while envisioning
and creating a positive future is:
A. Task leadership
B. Supervisory leadership
C. Organizational leadership
D. Strategic leadership
34) Under ___________, member countries have agreed to adopt a common
European currency called the Euro.
A. Asia-Pacific Economic Cooperation
B. North American Free Trade Agreement (NAFTA)
C. the General Agreement on Tariffs and Trade
D. the Maastricht Treaty
35) NAFTA combined the economies of:
A. The U.S., the European Union, and North America
B. The U.S., Canada, and Mexico
C. Latin America, Pacific Rim, and the European Union
D. South America, the U.S., and Latin America
E. Canada, Mexico, and South America
36) To be competitive in a global economy, Europeans must increase their level
of:
A. Philanthropic contributions
B. Population density
C. Espionage activity
D. Productivity
37) Control based on the use of pricing mechanisms and economic information
is:
A. Feed forward control

9. B. Clan control
C. Market control
D. Feedback control
38) The use of rules, regulations, and authority to guide performance is:
A. Concurrent control
B. Clan control
C. Market control
D. Bureaucratic control
39) Which of the following is not a symptom of an out-of-control company?
A. Bad information systems
B. Lax top management
C. Lack of periodic reviews
D. Excessive policies
40) Which of the following is NOT one of the four major steps in the control
process?
A. Setting standards
B. Taking corrective action
C. Revising standards
D. Comparing performance with standards
41) Expected performance for a given goal is a target that establishes a desired
performance level, motivates performance, and serves as a benchmark against
which actual performance, and is assessed as a:
A. Management audit
B. Budget
C. Debt-equity ratio
D. Standard

10. 42) When Jennifer concentrates on the significant deviations from established
standards, she is using:
A. The principle of deviation
B. Inefficient control
C. The principle of exception
D. Unreasonable control