Question 1

The ratio of return on investment (ROI)measures the profitability of a business unit by comparing ________ to ________.

Accepted Answer

A)  activity; sales 
B)  liquidity; liability 
C)  inventory cost; inventory turnover 
D)  net profit before taxes; total assets invested 
A)  activity; sales 
B)  liquidity; liability 
C)  inventory cost; inventory turnover 
D)  net profit before taxes; total assets invested

Question 2

When managers predict a turbulent external environment,they should establish centralized strategic control systems to anchor the firm.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a reinforcing action that could be taken based on the outcomes of performance measurement?

Accepted Answer

A)  increase in training 
B)  addition of a new product line 
C)  modification in supervision 
D)  investment in newer equipment 
A)  increase in training 
B)  addition of a new product line 
C)  modification in supervision 
D)  investment in newer equipment

Question 4

The guiding principle for focusing control is that it should be closely linked to the strategic goals and,particularly,the planning process of the organization.

Accepted Answer

A) True 
 B)False

Question 5

Managers should take reinforcing action when actual performance is worse than expected and corrective action when actual performance is better than expected.

Accepted Answer

A) True 
 B)False

Question 6

A manager of a hotel chain looks at the advertised claims of his competitors over the last 10 years.He becomes concerned that his hotels may not offer the same level of customer service as his competitors do.What should the manager remind himself of before taking action?

Accepted Answer

A)  the usefulness of quality information 
B)  the accuracy of quality information 
C)  the objectivity of quality information 
D)  the timeliness of quality information 
A)  the usefulness of quality information 
B)  the accuracy of quality information 
C)  the objectivity of quality information 
D)  the timeliness of quality information

Question 7

Which of the following is true of rolling budgets?

Accepted Answer

A)  They are used in conjunction with normal budgets. 
B)  They do not have to be revised frequently. 
C)  They take very little managerial time and effort. 
D)  They are more accurate because of their recency. 
A)  They are used in conjunction with normal budgets. 
B)  They do not have to be revised frequently. 
C)  They take very little managerial time and effort. 
D)  They are more accurate because of their recency.

Question 8

Within the context of organizations,control involves ________.

Accepted Answer

A)  arranging the organization's workforce in some sequence 
B)  tracking flow of transactions across different organizational departments 
C)  regulating activities and behaviors to accomplish specific organizational objectives 
D)  grouping of tasks into different organizational departments 
A)  arranging the organization's workforce in some sequence 
B)  tracking flow of transactions across different organizational departments 
C)  regulating activities and behaviors to accomplish specific organizational objectives 
D)  grouping of tasks into different organizational departments

Question 9

Differentiate between precontrol and postcontrol of operations.

Accepted Answer

As its name implies,operational control

Question 10

Research indicates that the efficiencies of managing through centralized control may be ________ when the operating environments of divisions in multidivisional organizations are relatively ________.

Accepted Answer

A)  greater; stable and predictable 
B)  static; stable and predictable 
C)  greater; turbulent and unpredictable 
D)  static; turbulent and unpredictable 
A)  greater; stable and predictable 
B)  static; stable and predictable 
C)  greater; turbulent and unpredictable 
D)  static; turbulent and unpredictable

Question 11

What are the basic elements in the control process?

Accepted Answer

The basic elements of the control proces

Question 12

Which of the following is true of strategic controls?

Accepted Answer

A)  They are least useful when the environment is uncertain. 
B)  They are unrelated to measures of organizational performance. 
C)  They are most useful when operating environments are rough. 
D)  They are easy to implement even when exact measurement is difficult. 
A)  They are least useful when the environment is uncertain. 
B)  They are unrelated to measures of organizational performance. 
C)  They are most useful when operating environments are rough. 
D)  They are easy to implement even when exact measurement is difficult.

Question 13

________ was the traditional form of control in manufacturing.

Accepted Answer

A)  Postcontrol 
B)  Concurrent control 
C)  Precontrol 
D)  Production control 
A)  Postcontrol 
B)  Concurrent control 
C)  Precontrol 
D)  Production control

Question 14

Explain the determinants of the amount of control to be applied.

Accepted Answer

Effective control involves finding a bal

Question 15

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

Accepted Answer

A)  emphasis on detecting deviance 
B)  stress on group consensus on goals 
C)  mutual assistance in meeting standards 
D)  control comes from individuals or groups 
A)  emphasis on detecting deviance 
B)  stress on group consensus on goals 
C)  mutual assistance in meeting standards 
D)  control comes from individuals or groups

Question 16

When there is more uncertainty in the environment,centralized control becomes ________.

Accepted Answer

A)  crucial 
B)  more efficient 
C)  redundant 
D)  less efficient 
A)  crucial 
B)  more efficient 
C)  redundant 
D)  less efficient

Question 17

________ is a measure of how well a firm can meet its short-term cash requirements.

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 18

Traditionally,manufacturers used quality control personnel to check the rate of defective products and decide what to do if those rates were too high.This system is a part of ________.

Accepted Answer

A)  precontrol of operations 
B)  postcontrol of operations 
C)  intermittent control of operations 
D)  concurrent control of operations 
A)  precontrol of operations 
B)  postcontrol of operations 
C)  intermittent control of operations 
D)  concurrent control of operations

Question 19

When readily quantifiable criteria do not exist,it becomes extremely important to obtain as much consensus as possible about the way in which performance is to be assessed.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following questions is a matter of strategic scope for an organization?

Accepted Answer

A)  What changes have to be made, in terms of policy, at the new manufacturing units in China? 
B)  How much money is to be allocated to the sales and marketing departments annually? 
C)  How can the ratio of employees to supervisors be improved to increase productivity? 
D)  What can be done to employ more ethnic and gender minorities in the organization? 
A)  What changes have to be made, in terms of policy, at the new manufacturing units in China? 
B)  How much money is to be allocated to the sales and marketing departments annually? 
C)  How can the ratio of employees to supervisors be improved to increase productivity? 
D)  What can be done to employ more ethnic and gender minorities in the organization?

The ratio of return on investment (ROI)measures the profitability of a business unit by comparing to .

When managers predict a turbulent external environment,they should establish centralized strategic control systems to anchor the firm.

Which of the following is a reinforcing action that could be taken based on the outcomes of performance measurement?

The guiding principle for focusing control is that it should be closely linked to the strategic goals and,particularly,the planning process of the organization.

Managers should take reinforcing action when actual performance is worse than expected and corrective action when actual performance is better than expected.

A manager of a hotel chain looks at the advertised claims of his competitors over the last 10 years.He becomes concerned that his hotels may not offer the same level of customer service as his competitors do.What should the manager remind himself of before taking action?

Which of the following is true of rolling budgets?

Within the context of organizations,control involves ________.

Differentiate between precontrol and postcontrol of operations.

Research indicates that the efficiencies of managing through centralized control may be when the operating environments of divisions in multidivisional organizations are relatively .

What are the basic elements in the control process?

Which of the following is true of strategic controls?

________ was the traditional form of control in manufacturing.

Explain the determinants of the amount of control to be applied.

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

When there is more uncertainty in the environment,centralized control becomes ________.

________ is a measure of how well a firm can meet its short-term cash requirements.

Traditionally,manufacturers used quality control personnel to check the rate of defective products and decide what to do if those rates were too high.This system is a part of ________.

When readily quantifiable criteria do not exist,it becomes extremely important to obtain as much consensus as possible about the way in which performance is to be assessed.

Which of the following questions is a matter of strategic scope for an organization?

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

The ratio of return on investment (ROI)measures the profitability of a business unit by comparing ________ to ________.

When managers predict a turbulent external environment,they should establish centralized strategic control systems to anchor the firm.

Which of the following is a reinforcing action that could be taken based on the outcomes of performance measurement?

The guiding principle for focusing control is that it should be closely linked to the strategic goals and,particularly,the planning process of the organization.

Managers should take reinforcing action when actual performance is worse than expected and corrective action when actual performance is better than expected.

A manager of a hotel chain looks at the advertised claims of his competitors over the last 10 years.He becomes concerned that his hotels may not offer the same level of customer service as his competitors do.What should the manager remind himself of before taking action?

Which of the following is true of rolling budgets?

Within the context of organizations,control involves ________.

Differentiate between precontrol and postcontrol of operations.

Research indicates that the efficiencies of managing through centralized control may be ________ when the operating environments of divisions in multidivisional organizations are relatively ________.

What are the basic elements in the control process?

Which of the following is true of strategic controls?

________ was the traditional form of control in manufacturing.

Explain the determinants of the amount of control to be applied.

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

When there is more uncertainty in the environment,centralized control becomes ________.

________ is a measure of how well a firm can meet its short-term cash requirements.

Traditionally,manufacturers used quality control personnel to check the rate of defective products and decide what to do if those rates were too high.This system is a part of ________.

When readily quantifiable criteria do not exist,it becomes extremely important to obtain as much consensus as possible about the way in which performance is to be assessed.

Which of the following questions is a matter of strategic scope for an organization?

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

The ratio of return on investment (ROI)measures the profitability of a business unit by comparing to .

Research indicates that the efficiencies of managing through centralized control may be when the operating environments of divisions in multidivisional organizations are relatively .