Question 1

Shared values and beliefs are the social requirements needed to support a system of bureaucratic control.

Accepted Answer

A) True 
 B)False

Question 2

Selection,training,compensation,and appraisal and evaluation are all opportunities for control in the human resource function.

Accepted Answer

A) True 
 B)False

Question 3

An organization cannot run without formulating and implementing a budget.

Accepted Answer

A) True 
 B)False

Question 4

In an automobile sales unit,the manager had given 6 out of 7 car salesmen a bonus for good performance.Despite this,the unit kept underperforming in comparison to its counterparts.Which of the following is the most probable cause for this?

Accepted Answer

A)  The goals set by the manager for his salesmen were not high enough. 
B)  The salesmen in this particular unit were very bright and persuasive. 
C)  The automobile company had launched a regional ad campaign with positive feedback. 
D)  The car sales figures had dipped nationwide in the past year. 
A)  The goals set by the manager for his salesmen were not high enough. 
B)  The salesmen in this particular unit were very bright and persuasive. 
C)  The automobile company had launched a regional ad campaign with positive feedback. 
D)  The car sales figures had dipped nationwide in the past year.

Question 5

A strategic control system is likely to be useful when environmental turbulence is ________ and it is ________ to specify and measure precise strategic objectives.

Accepted Answer

A)  high; easy 
B)  low; difficult 
C)  high; difficult 
D)  low; easy 
A)  high; easy 
B)  low; difficult 
C)  high; difficult 
D)  low; easy

Question 6

The ________ of control often affects the willingness of organization members to work cooperatively with the system.

Accepted Answer

A)  source 
B)  objectivity 
C)  flexibility 
D)  timelines 
A)  source 
B)  objectivity 
C)  flexibility 
D)  timelines

Question 7

In an organizational setting,to "control" means to adjust or bring about conformity to specifications or objectives that have been set.

Accepted Answer

A) True 
 B)False

Question 8

A budget is designed to influence behavior so that forecasts or plans for expenditures and revenues can be achieved.

Accepted Answer

A) True 
 B)False

Question 9

FoodMart Inc.is a grocery supermarket chain with 65 stores in various locations across the country.For the past year,total revenues have been steadily declining,and the management wants to make some changes to try and improve earnings.According to the CEO of the company,shutting down the 10 lowest performing stores should remedy the situation.Which of the following is the strongest counterargument for the above?

Accepted Answer

A)  Eighty percentage of the workforce in the stores is constituted of contracted laborers. 
B)  Most of the retail stores that the company has are located in high rental demand areas. 
C)  A recent analysis by the operations department suggests that implementing a vendor managed inventory system would significantly reduce the operating costs. 
D)  A recent study reveals that inventory and transportation costs contribute up to 70 percent of the total operating costs. 
A)  Eighty percentage of the workforce in the stores is constituted of contracted laborers. 
B)  Most of the retail stores that the company has are located in high rental demand areas. 
C)  A recent analysis by the operations department suggests that implementing a vendor managed inventory system would significantly reduce the operating costs. 
D)  A recent study reveals that inventory and transportation costs contribute up to 70 percent of the total operating costs.

Question 10

Which of the following is a type of control approach used under clan control?

Accepted Answer

A)  strict adherence to rules and regulations 
B)  formal and impersonal approach to control 
C)  stress on group consensus on goals 
D)  emphasis on detecting deviance 
A)  strict adherence to rules and regulations 
B)  formal and impersonal approach to control 
C)  stress on group consensus on goals 
D)  emphasis on detecting deviance

Question 11

A key feature of many companies that have ________ is the use of rolling forecasts,which are created every few months.

Accepted Answer

A)  restricted employee participation 
B)  established benchmarks 
C)  increased turnover rates 
D)  rejected budgets 
A)  restricted employee participation 
B)  established benchmarks 
C)  increased turnover rates 
D)  rejected budgets

Question 12

Explain how human resources work as a tactical control system.

Accepted Answer

Human resource policies and procedures a

Question 13

In which of the following cases is subjectivity more important than objectivity?

Accepted Answer

A)  the amount of profits made by a firm in a given year 
B)  the volume of clients served by a customer care cell 
C)  the quantity of finished products produced by a factory unit 
D)  the reasons for consumer preferences for a given product 
A)  the amount of profits made by a firm in a given year 
B)  the volume of clients served by a customer care cell 
C)  the quantity of finished products produced by a factory unit 
D)  the reasons for consumer preferences for a given product

Question 14

What determines whether a control is considered operational,tactical,or strategic?

Accepted Answer

A)  its industry 
B)  its breadth of scope 
C)  its effect on profitability 
D)  its implementation schedule 
A)  its industry 
B)  its breadth of scope 
C)  its effect on profitability 
D)  its implementation schedule

Question 15

Which of the following statements is true of break-even point?

Accepted Answer

A)  It cannot be used for control purposes in business organizations. 
B)  It can be reached by selling very few units if the fixed costs are high. 
C)  It is the point where the selling price minus variable cost exceeds the fixed costs of a unit. 
D)  It helps managers exercise control after the product has been created and is ready for marketing. 
A)  It cannot be used for control purposes in business organizations. 
B)  It can be reached by selling very few units if the fixed costs are high. 
C)  It is the point where the selling price minus variable cost exceeds the fixed costs of a unit. 
D)  It helps managers exercise control after the product has been created and is ready for marketing.

Question 16

Which of the following is a common error committed by less-experienced managers?

Accepted Answer

A)  They tend to defer control to top management. 
B)  They tend to avoid formal methods and control by "gut" instinct. 
C)  They tend to apply more control than is necessary to show they are "in charge." 
D)  They tend to forgo control in order to foster good relations with their employees. 
A)  They tend to defer control to top management. 
B)  They tend to avoid formal methods and control by "gut" instinct. 
C)  They tend to apply more control than is necessary to show they are "in charge." 
D)  They tend to forgo control in order to foster good relations with their employees.

Question 17

In which of the following organizations will strategic controls work the best?

Accepted Answer

A)  in a company designing the user interface of mobile phones, where every month the technology improves and new competitors enter the market 
B)  in an iron and steel industry whose business prospects depend largely on the ups and downs of the construction industry 
C)  in a company that provides counseling services to corporate clients and has infrequent performance audits 
D)  in a hotel chain where customer satisfaction and volatile money market determines the number and type of clientele 
A)  in a company designing the user interface of mobile phones, where every month the technology improves and new competitors enter the market 
B)  in an iron and steel industry whose business prospects depend largely on the ups and downs of the construction industry 
C)  in a company that provides counseling services to corporate clients and has infrequent performance audits 
D)  in a hotel chain where customer satisfaction and volatile money market determines the number and type of clientele

Question 18

________ represents a firm's ability to meet long-term financial obligations.

Accepted Answer

A)  Leverage (total debt/total assets) 
B)  Liquidity (current assets/current liabilities) 
C)  Inventory turnover (annual sales/inventory) 
D)  Return on equity (net profit before taxes/total assets invested 
A)  Leverage (total debt/total assets) 
B)  Liquidity (current assets/current liabilities) 
C)  Inventory turnover (annual sales/inventory) 
D)  Return on equity (net profit before taxes/total assets invested

Question 19

Administering therapy to an unwell patient is an example of exercising tactical control.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following defines a liquidity ratio?

Accepted Answer

A)  revenue in relation to investment 
B)  current assets in relation to current liabilities 
C)  total debt in relation to total assets 
D)  amount of sales in relation to cost to produce 
A)  revenue in relation to investment 
B)  current assets in relation to current liabilities 
C)  total debt in relation to total assets 
D)  amount of sales in relation to cost to produce

Shared values and beliefs are the social requirements needed to support a system of bureaucratic control.

Selection,training,compensation,and appraisal and evaluation are all opportunities for control in the human resource function.

An organization cannot run without formulating and implementing a budget.

In an automobile sales unit,the manager had given 6 out of 7 car salesmen a bonus for good performance.Despite this,the unit kept underperforming in comparison to its counterparts.Which of the following is the most probable cause for this?

A strategic control system is likely to be useful when environmental turbulence is and it is to specify and measure precise strategic objectives.

The ________ of control often affects the willingness of organization members to work cooperatively with the system.

In an organizational setting,to "control" means to adjust or bring about conformity to specifications or objectives that have been set.

A budget is designed to influence behavior so that forecasts or plans for expenditures and revenues can be achieved.

Which of the following is a type of control approach used under clan control?

A key feature of many companies that have ________ is the use of rolling forecasts,which are created every few months.

Explain how human resources work as a tactical control system.

In which of the following cases is subjectivity more important than objectivity?

What determines whether a control is considered operational,tactical,or strategic?

Which of the following statements is true of break-even point?

Which of the following is a common error committed by less-experienced managers?

In which of the following organizations will strategic controls work the best?

________ represents a firm's ability to meet long-term financial obligations.

Administering therapy to an unwell patient is an example of exercising tactical control.

Which of the following defines a liquidity ratio?

The Nature of Management

Social Responsibility and Managerial Ethics

International Management and Globalization

Strategic Management

Planning

Organizational Structure and Design

Managing Diverse Human Resources

Leadership

Motivation

Groups and Teams

Communication and Negotiation

Individual and Group Decision Making

Operations Management

Organizational Change and Development

Filters

Exam 14: Control

Shared values and beliefs are the social requirements needed to support a system of bureaucratic control.

Selection,training,compensation,and appraisal and evaluation are all opportunities for control in the human resource function.

An organization cannot run without formulating and implementing a budget.

In an automobile sales unit,the manager had given 6 out of 7 car salesmen a bonus for good performance.Despite this,the unit kept underperforming in comparison to its counterparts.Which of the following is the most probable cause for this?

A strategic control system is likely to be useful when environmental turbulence is ________ and it is ________ to specify and measure precise strategic objectives.

The ________ of control often affects the willingness of organization members to work cooperatively with the system.

In an organizational setting,to "control" means to adjust or bring about conformity to specifications or objectives that have been set.

A budget is designed to influence behavior so that forecasts or plans for expenditures and revenues can be achieved.

Which of the following is a type of control approach used under clan control?

A key feature of many companies that have ________ is the use of rolling forecasts,which are created every few months.

Explain how human resources work as a tactical control system.

In which of the following cases is subjectivity more important than objectivity?

What determines whether a control is considered operational,tactical,or strategic?

Which of the following statements is true of break-even point?

Which of the following is a common error committed by less-experienced managers?

In which of the following organizations will strategic controls work the best?

________ represents a firm's ability to meet long-term financial obligations.

Administering therapy to an unwell patient is an example of exercising tactical control.

Which of the following defines a liquidity ratio?

The Nature of Management

Social Responsibility and Managerial Ethics

International Management and Globalization

Strategic Management

Planning

Organizational Structure and Design

Managing Diverse Human Resources

Leadership

Motivation

Groups and Teams

Communication and Negotiation

Individual and Group Decision Making

Operations Management

Organizational Change and Development

Filters

A strategic control system is likely to be useful when environmental turbulence is and it is to specify and measure precise strategic objectives.