Question 1

Identify the question that managers at the strategic business unit (SBU)level would attempt to address.

Accepted Answer

A)  "Who are our direct competitors?" 
B)  "What resources should be allocated to each of the businesses?" 
C)  "What industries should we get into or out of?" 
D)  "What activities does my unit need to perform well in in order to meet customer expectations?" 
A)  "Who are our direct competitors?" 
B)  "What resources should be allocated to each of the businesses?" 
C)  "What industries should we get into or out of?" 
D)  "What activities does my unit need to perform well in in order to meet customer expectations?"

Question 2

Which of the following statements regarding objectives is true?

Accepted Answer

A)  Managers need to assign equal importance to all of the objectives. 
B)  Determining priorities for objectives is usually the final stage associated with setting objectives. 
C)  The importance of some objectives varies with time. 
D)  A clear understanding of the sequence of priorities has no significant impact on employee performance. 
A)  Managers need to assign equal importance to all of the objectives. 
B)  Determining priorities for objectives is usually the final stage associated with setting objectives. 
C)  The importance of some objectives varies with time. 
D)  A clear understanding of the sequence of priorities has no significant impact on employee performance.

Question 3

________ is a term that refers to the tool used to quantify and allocate resources to specific activities.

Accepted Answer

A)  Budget 
B)  Contingency plan 
C)  Benchmarking 
D)  Accounting 
A)  Budget 
B)  Contingency plan 
C)  Benchmarking 
D)  Accounting

Question 4

Goals that are measured,specific,and realistic,and to which people are committed,need to be free from time restraints in order to be effective.

Accepted Answer

A) True 
 B)False

Question 5

A company's vice president says,"I think we should do away with the practice of using forecasts as a basis for our plans.The results are not fully accurate." Which of the following would be the best rebuttal to this statement?

Accepted Answer

A)  The fact that forecasting has not yielded exact results in the past does not mean that it will not do so in the future. 
B)  Companies in some other industries have effectively used forecasting for analyzing the potential of the external business environment. 
C)  Forecasts are meant to provide a general idea of the direction of future business and cannot be expected to be fully accurate. 
D)  Supply and demand conditions in the marketplace this year are expected to deviate significantly from historical averages. 
A)  The fact that forecasting has not yielded exact results in the past does not mean that it will not do so in the future. 
B)  Companies in some other industries have effectively used forecasting for analyzing the potential of the external business environment. 
C)  Forecasts are meant to provide a general idea of the direction of future business and cannot be expected to be fully accurate. 
D)  Supply and demand conditions in the marketplace this year are expected to deviate significantly from historical averages.

Question 6

Which of the following types of plans is the least complex and rarely has a direct effect on other plans outside of the department or unit for which they were developed?

Accepted Answer

A)  strategic plans 
B)  tactical plans 
C)  operational plans 
D)  directional plans 
A)  strategic plans 
B)  tactical plans 
C)  operational plans 
D)  directional plans

Question 7

A capital expenditure budget typically includes all primary activities on which the unit or organization plans to spend money and the amount allocated for each item during the year.

Accepted Answer

A) True 
 B)False

Question 8

What is "budget momentum"?

Accepted Answer

A)  allocation of money to a unit in the future because that unit is expected to grow in the future 
B)  allocation of money to a unit in the future to mirror the current performance of that unit 
C)  allocation of money to a unit in the future because the unit had been allocated money in the past 
D)  allocation of money to a unit in the future based on the forecasted performance of that unit 
A)  allocation of money to a unit in the future because that unit is expected to grow in the future 
B)  allocation of money to a unit in the future to mirror the current performance of that unit 
C)  allocation of money to a unit in the future because the unit had been allocated money in the past 
D)  allocation of money to a unit in the future based on the forecasted performance of that unit

Question 9

The planning responsibilities of functional-level managers largely focus on the development of ________ plans.

Accepted Answer

A)  tactical 
B)  strategic 
C)  operational 
D)  corporate 
A)  tactical 
B)  strategic 
C)  operational 
D)  corporate

Question 10

The final element in the planning process involves ________.

Accepted Answer

A)  monitoring outcomes 
B)  implementing plans 
C)  assessing the firm's external environment 
D)  measuring objectives and assigning priorities 
A)  monitoring outcomes 
B)  implementing plans 
C)  assessing the firm's external environment 
D)  measuring objectives and assigning priorities

Question 11

Based on the available forecasts,a business' sales are expected to drop 20 percent in the current year as compared to the previous year.Which of the following will be a cascading effect of this forecast?

Accepted Answer

A)  The company will have to raise prices to maintain profit margins. 
B)  Hiring will be lower during the year. 
C)  Competition is likely to reduce during the year. 
D)  The company will stock more inventory compared to the previous year. 
A)  The company will have to raise prices to maintain profit margins. 
B)  Hiring will be lower during the year. 
C)  Competition is likely to reduce during the year. 
D)  The company will stock more inventory compared to the previous year.

Question 12

What are the primary organizational levels of a corporation?

Accepted Answer

A)  production, marketing, and sales 
B)  corporate, business, and functional 
C)  finance, human resources, and operations 
D)  production, marketing, and administration 
A)  production, marketing, and sales 
B)  corporate, business, and functional 
C)  finance, human resources, and operations 
D)  production, marketing, and administration

Question 13

Describe operational plans and their importance for an organization.

Accepted Answer

Operational plans translate tactical pla

Question 14

The speed of change and rapid flow of information increasingly require business plans that are flexible and dynamic.

Accepted Answer

A) True 
 B)False

Question 15

A manager tells his sales staff that he wants sales to increase by 18 percent during this year.Even though they are skeptical about whether this goal can be reached,most of them agree to it.However,they were unable to meet the target at the end of the year.Which of the following would best explain the failure to meet this goal?

Accepted Answer

A)  If employees are only superficially committed to the goal, it will probably not be achieved. 
B)  If employees do not believe it is possible to achieve a goal, it is probably because the goal is too vague. 
C)  If employees are skeptical that a goal can be reached, it is because they do not know how their performance will be measured. 
D)  If a goal is too specific, employees will be demotivated by the impersonal nature of the goal. 
A)  If employees are only superficially committed to the goal, it will probably not be achieved. 
B)  If employees do not believe it is possible to achieve a goal, it is probably because the goal is too vague. 
C)  If employees are skeptical that a goal can be reached, it is because they do not know how their performance will be measured. 
D)  If a goal is too specific, employees will be demotivated by the impersonal nature of the goal.

Question 16

Which of the following is NOT necessarily true about the goal,"We will achieve a 12 percent return on assets in the next six months"?

Accepted Answer

A)  It is specific. 
B)  It is time-bound. 
C)  It is measurable. 
D)  It is realistic. 
A)  It is specific. 
B)  It is time-bound. 
C)  It is measurable. 
D)  It is realistic.

Question 17

What critical factors will Mr.Colfax need to monitor during the implementation of his plan?

Accepted Answer

Mr.Colfax will need to monitor

Question 18

Strategic plans translate tactical plans into specific goals and actions for small units of the organization and focus on the near term.

Accepted Answer

A) True 
 B)False

Question 19

The greater the environmental uncertainty,the more important it is for managers to stick to their original plan.

Accepted Answer

A) True 
 B)False

Question 20

The principal negative consequence of incremental budgeting is that money may be allocated to a unit in the future merely because the unit had been allocated money in the past.

Accepted Answer

A) True 
 B)False

Identify the question that managers at the strategic business unit (SBU)level would attempt to address.

Which of the following statements regarding objectives is true?

________ is a term that refers to the tool used to quantify and allocate resources to specific activities.

Goals that are measured,specific,and realistic,and to which people are committed,need to be free from time restraints in order to be effective.

A company's vice president says,"I think we should do away with the practice of using forecasts as a basis for our plans.The results are not fully accurate." Which of the following would be the best rebuttal to this statement?

Which of the following types of plans is the least complex and rarely has a direct effect on other plans outside of the department or unit for which they were developed?

A capital expenditure budget typically includes all primary activities on which the unit or organization plans to spend money and the amount allocated for each item during the year.

What is "budget momentum"?

The planning responsibilities of functional-level managers largely focus on the development of ________ plans.

The final element in the planning process involves ________.

Based on the available forecasts,a business' sales are expected to drop 20 percent in the current year as compared to the previous year.Which of the following will be a cascading effect of this forecast?

What are the primary organizational levels of a corporation?

Describe operational plans and their importance for an organization.

The speed of change and rapid flow of information increasingly require business plans that are flexible and dynamic.

Which of the following is NOT necessarily true about the goal,"We will achieve a 12 percent return on assets in the next six months"?

What critical factors will Mr.Colfax need to monitor during the implementation of his plan?

Strategic plans translate tactical plans into specific goals and actions for small units of the organization and focus on the near term.

The greater the environmental uncertainty,the more important it is for managers to stick to their original plan.

The principal negative consequence of incremental budgeting is that money may be allocated to a unit in the future merely because the unit had been allocated money in the past.

The Nature of Management

Social Responsibility and Managerial Ethics

International Management and Globalization

Strategic Management

Organizational Structure and Design

Managing Diverse Human Resources

Leadership

Motivation

Groups and Teams

Communication and Negotiation

Individual and Group Decision Making

Operations Management

Control

Organizational Change and Development

Filters

Exam 5: Planning

Identify the question that managers at the strategic business unit (SBU)level would attempt to address.

Which of the following statements regarding objectives is true?

________ is a term that refers to the tool used to quantify and allocate resources to specific activities.

Goals that are measured,specific,and realistic,and to which people are committed,need to be free from time restraints in order to be effective.

A company's vice president says,"I think we should do away with the practice of using forecasts as a basis for our plans.The results are not fully accurate." Which of the following would be the best rebuttal to this statement?

Which of the following types of plans is the least complex and rarely has a direct effect on other plans outside of the department or unit for which they were developed?

A capital expenditure budget typically includes all primary activities on which the unit or organization plans to spend money and the amount allocated for each item during the year.

What is "budget momentum"?

The planning responsibilities of functional-level managers largely focus on the development of ________ plans.

The final element in the planning process involves ________.

Based on the available forecasts,a business' sales are expected to drop 20 percent in the current year as compared to the previous year.Which of the following will be a cascading effect of this forecast?

What are the primary organizational levels of a corporation?

Describe operational plans and their importance for an organization.

The speed of change and rapid flow of information increasingly require business plans that are flexible and dynamic.

Which of the following is NOT necessarily true about the goal,"We will achieve a 12 percent return on assets in the next six months"?

What critical factors will Mr.Colfax need to monitor during the implementation of his plan?

Strategic plans translate tactical plans into specific goals and actions for small units of the organization and focus on the near term.

The greater the environmental uncertainty,the more important it is for managers to stick to their original plan.

The principal negative consequence of incremental budgeting is that money may be allocated to a unit in the future merely because the unit had been allocated money in the past.

The Nature of Management

Social Responsibility and Managerial Ethics

International Management and Globalization

Strategic Management

Organizational Structure and Design

Managing Diverse Human Resources

Leadership

Motivation

Groups and Teams

Communication and Negotiation

Individual and Group Decision Making

Operations Management

Control

Organizational Change and Development

Filters