Question 1

Companies with centralized authority systems typically require multiple layers of management. What type of organizational structures are these companies utilizing?

Accepted Answer

A)  tall 
B)  short 
C)  flat 
D)  broad 
E)  oblique 
A)  tall 
B)  short 
C)  flat 
D)  broad 
E)  oblique

Question 2

Decentralization works best in a complex, rapidly changing environment.

Accepted Answer

A) True 
 B)False

Question 3

The matrix form of organizational structure was pioneered by NASA.

Accepted Answer

A) True 
 B)False

Question 4

Why do most businesses use organization charts?

Accepted Answer

Organization charts clarify structure an

Question 5

Which factor plays a key role in determining an organization's structure?

Accepted Answer

A)  competition and technology 
B)  location and life-cycle stage 
C)  profitability and leverage 
D)  research and development 
E)  mission and strategy 
A)  competition and technology 
B)  location and life-cycle stage 
C)  profitability and leverage 
D)  research and development 
E)  mission and strategy

Question 6

Describe the span of control likely to prevail at Ace Products.

Accepted Answer

In tall organization

Question 7

What is authority that flows up and down the chain of command called?

Accepted Answer

A)  staff authority 
B)  departmental authority 
C)  delegated authority 
D)  divisional authority 
E)  line authority 
A)  staff authority 
B)  departmental authority 
C)  delegated authority 
D)  divisional authority 
E)  line authority

Question 8

To avoid bureaucracy within the organization, most large organizations tend to adopt the same types of departmentalization for all levels.

Accepted Answer

A) True 
 B)False

Question 9

If the senior manager's prediction is accurate, which of the following is inferable?

Accepted Answer

A)  If TLS does not change to either a product approach or a functional approach, then it will not change its organizational approach at all. 
B)  If TLS is not profitable this year and fails to develop any new products, the company will first switch to a functional approach and then to a product approach. 
C)  If TLS is profitable, then it could organize itself by customer groups. 
D)  If TLS does not change to either a product approach or a functional approach, then it could not have been profitable this year. 
E)  If TLS does not change to either a product approach or a functional approach, then it could not have developed any new products. 
A)  If TLS does not change to either a product approach or a functional approach, then it will not change its organizational approach at all. 
B)  If TLS is not profitable this year and fails to develop any new products, the company will first switch to a functional approach and then to a product approach. 
C)  If TLS is profitable, then it could organize itself by customer groups. 
D)  If TLS does not change to either a product approach or a functional approach, then it could not have been profitable this year. 
E)  If TLS does not change to either a product approach or a functional approach, then it could not have developed any new products.

Question 10

Acme Oil Company has three divisions: Exploration, Extraction, and Refining. This is an example of process departmentalization.

Accepted Answer

A) True 
 B)False

Question 11

What is the main organizational characteristic of decentralized firms?

Accepted Answer

A)  flat 
B)  tall 
C)  diverse 
D)  multi-layered 
E)  matrix 
A)  flat 
B)  tall 
C)  diverse 
D)  multi-layered 
E)  matrix

Question 12

Which of the following decisions would likely be made by a centralized authority?

Accepted Answer

A)  What are the procedures All American Burger should use to ensure food safety? 
B)  If All American Burger wishes to recruit current students for entry-level management positions, which colleges and universities should All American Burger choose? 
C)  How should a regional division spend the money in its advertising budget? 
D)  What special menu items should be offered in order to encourage new customers? 
E)  Should marketing focus on bringing in new customers or taking customers from the competition? 
A)  What are the procedures All American Burger should use to ensure food safety? 
B)  If All American Burger wishes to recruit current students for entry-level management positions, which colleges and universities should All American Burger choose? 
C)  How should a regional division spend the money in its advertising budget? 
D)  What special menu items should be offered in order to encourage new customers? 
E)  Should marketing focus on bringing in new customers or taking customers from the competition?

Question 13

Why is company size a critical factor in fostering intrapreneuring?

Accepted Answer

Historically, most innovations have come

Question 14

In what type of organization do most lower-level decisions need to be approved by upper management before they can be implemented?

Accepted Answer

A)  line 
B)  staff 
C)  decentralized 
D)  centralized 
E)  learning 
A)  line 
B)  staff 
C)  decentralized 
D)  centralized 
E)  learning

Question 15

With its many organizational layers, what type of organizational structure does the U.S. Army demonstrate?

Accepted Answer

A)  tall 
B)  step 
C)  flat 
D)  broad 
E)  triangular 
A)  tall 
B)  step 
C)  flat 
D)  broad 
E)  triangular

Question 16

Explain why retail stores are referred to by a generic name.

Accepted Answer

Retail stores actually derive their gene

Question 17

What are three factors that may impact span of control at Ace Products?

Accepted Answer

Job similarity, job simplicity

Question 18

With relatively few layers of managers, what do decentralized organizations tend to reflect?

Accepted Answer

A)  tall organizational structure 
B)  short organizational structure 
C)  flat organizational structure 
D)  elliptical organizational structure 
E)  triangular organizational structure 
A)  tall organizational structure 
B)  short organizational structure 
C)  flat organizational structure 
D)  elliptical organizational structure 
E)  triangular organizational structure

Question 19

Explain specialization and departmentalization.

Accepted Answer

The process of identifying specific jobs

Question 20

Jack Welch, former CEO of General Electric, stated, "If you don't let managers make their own decisions, you're never going to be anything more than a one-person business." What style of management is Welch proposing?

Accepted Answer

A)  authentic management 
B)  linear management 
C)  centralized management 
D)  group management 
E)  decentralized management 
A)  authentic management 
B)  linear management 
C)  centralized management 
D)  group management 
E)  decentralized management

Companies with centralized authority systems typically require multiple layers of management. What type of organizational structures are these companies utilizing?

Decentralization works best in a complex, rapidly changing environment.

The matrix form of organizational structure was pioneered by NASA.

Why do most businesses use organization charts?

Which factor plays a key role in determining an organization's structure?

Describe the span of control likely to prevail at Ace Products.

What is authority that flows up and down the chain of command called?

To avoid bureaucracy within the organization, most large organizations tend to adopt the same types of departmentalization for all levels.

If the senior manager's prediction is accurate, which of the following is inferable?

Acme Oil Company has three divisions: Exploration, Extraction, and Refining. This is an example of process departmentalization.

What is the main organizational characteristic of decentralized firms?

Which of the following decisions would likely be made by a centralized authority?

Why is company size a critical factor in fostering intrapreneuring?

In what type of organization do most lower-level decisions need to be approved by upper management before they can be implemented?

With its many organizational layers, what type of organizational structure does the U.S. Army demonstrate?

Explain why retail stores are referred to by a generic name.

What are three factors that may impact span of control at Ace Products?

With relatively few layers of managers, what do decentralized organizations tend to reflect?

Explain specialization and departmentalization.

Jack Welch, former CEO of General Electric, stated, "If you don't let managers make their own decisions, you're never going to be anything more than a one-person business." What style of management is Welch proposing?

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

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Exam 6: Organizing the Business

Companies with centralized authority systems typically require multiple layers of management. What type of organizational structures are these companies utilizing?

Decentralization works best in a complex, rapidly changing environment.

The matrix form of organizational structure was pioneered by NASA.

Why do most businesses use organization charts?

Which factor plays a key role in determining an organization's structure?

Describe the span of control likely to prevail at Ace Products.

What is authority that flows up and down the chain of command called?

To avoid bureaucracy within the organization, most large organizations tend to adopt the same types of departmentalization for all levels.

If the senior manager's prediction is accurate, which of the following is inferable?

Acme Oil Company has three divisions: Exploration, Extraction, and Refining. This is an example of process departmentalization.

What is the main organizational characteristic of decentralized firms?

Which of the following decisions would likely be made by a centralized authority?

Why is company size a critical factor in fostering intrapreneuring?

In what type of organization do most lower-level decisions need to be approved by upper management before they can be implemented?

With its many organizational layers, what type of organizational structure does the U.S. Army demonstrate?

Explain why retail stores are referred to by a generic name.

What are three factors that may impact span of control at Ace Products?

With relatively few layers of managers, what do decentralized organizations tend to reflect?

Explain specialization and departmentalization.

Jack Welch, former CEO of General Electric, stated, "If you don't let managers make their own decisions, you're never going to be anything more than a one-person business." What style of management is Welch proposing?

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters