Exam 7: Organizing the Business Enterprise

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An organization that customarily uses teams of individuals from several departments to work on special projects is using a(n) ________ organizational structure.

(Multiple Choice)
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Line authority covers those people who ________, while staff authority covers those people who ________.

(Multiple Choice)
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Which of the following is not an advantage of the divisional structure?

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As you enter your favourite store looking for a graduation gift for your cousin, you notice the signs suspended from the ceiling: Men's, Women's, Children's, Infant's. The store is departmentalized by

(Multiple Choice)
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Staff departments aid line departments in making decisions but do not have the authority to make final decisions.

(True/False)
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As companies get larger and more complex, they are likely to move away from the ________ structure.

(Multiple Choice)
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When clients of Global Research Consortium request various services, the staff of three permanent employees contracts out the work to people with appropriate skills. GRC is therefore a(n) ________ organization.

(Multiple Choice)
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With regard to organizational design for the twenty-first century, it is correct to say that

(Multiple Choice)
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Accountability refers to the liability of subordinates for accomplishing tasks assigned by managers.

(True/False)
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At FedEx, the commitment to decentralization promotes innovation.

(True/False)
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Which of the following is correct with regard to the informal organization?

(Multiple Choice)
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Bright Products has vice-presidents for Europe, North America, and Asia. How is Bright Products departmentalized?

(Short Answer)
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________ and ________ organizations are closely related because in both of them people are constantly moving around to different jobs as dictated by the work that is being done.

(Multiple Choice)
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The two basic building blocks of all business organizations are specialization and departmentalization.

(True/False)
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What is the meaning of the individual boxes on an organization chart?

(Multiple Choice)
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With regard to the issue of geographic vs. product departmentalization, it is correct to say that

(Multiple Choice)
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Geoff is a legal expert for Marks Inc. His special expertise involves counseling and advising other managers. This illustrates

(Multiple Choice)
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Interstate Insurance is looking to upgrade the company's information technology. Information technology is used for a variety of purposes, so the company needs to prioritize its needs and find out in what areas the company needs to improve its information technology. Some employees claim that Interstate's intranet needs to be overhauled. Which of the following, if true, would strengthen this position?

(Multiple Choice)
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Whether a business is large or small, the starting point in developing its organization structure is

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All-Canadian Burger is a nationwide fast food chain that competes with McDonald's, Burger King, and Wendy's. Management at All-Canadian Burger is debating whether to have a more centralized or a more decentralized organizational structure. Which of the following, if true, would most strongly support the conclusion that All-Canadian Burger should adopt a decentralized approach?

(Multiple Choice)
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