Question 1

Which of the following statements is true about Tyson Foods, Inc.?

Accepted Answer

A) The company has faced synchronized movements in the prices of its inputs in the recent past. 
B) Tyson has been able to keep its chicken prices more or less stable over the last five years because the prices of its major inputs have not fluctuated too much. 
C) The company restructured itself to deal with the more complex risks associated with the business today. 
D) Tyson assigned responsibilities of risk management to employees familiar with the different commodities it handled in order to establish a self-contained unit. 
A) The company has faced synchronized movements in the prices of its inputs in the recent past. 
B) Tyson has been able to keep its chicken prices more or less stable over the last five years because the prices of its major inputs have not fluctuated too much. 
C) The company restructured itself to deal with the more complex risks associated with the business today. 
D) Tyson assigned responsibilities of risk management to employees familiar with the different commodities it handled in order to establish a self-contained unit.

Question 2

Which of the following statements is true regarding organizations with self-contained units (SCU) for risk-management?

Accepted Answer

A) The SCU has final authority on risk assessment and uses information from employees with similar expertise at the division-level. 
B) It works independently and information flows only between the SCU and headquarters. 
C) The organization chart depicts a strong relation between the division-level employees who have information on risk and the SCU. 
D) Employees with knowledge of division level-risks are transferred to the SCU. 
A) The SCU has final authority on risk assessment and uses information from employees with similar expertise at the division-level. 
B) It works independently and information flows only between the SCU and headquarters. 
C) The organization chart depicts a strong relation between the division-level employees who have information on risk and the SCU. 
D) Employees with knowledge of division level-risks are transferred to the SCU.

Question 3

With reference to the operations of the ABB Group discuss the functioning of matrix form organizations.

Accepted Answer

The ABB produces and sells five major pr

Question 4

Hayle Motors specializes in the production of fire trucks and has production units in five countries.Which of the following is NOT true about Hayle Motors?

Accepted Answer

A) It is a geographically divisionalized organization. 
B) It is divisionalized along product lines. 
C) Each of its five production units in the five countries function as stand-alone firms. 
D) Activities in each of its five units may be categorized functionally. 
A) It is a geographically divisionalized organization. 
B) It is divisionalized along product lines. 
C) Each of its five production units in the five countries function as stand-alone firms. 
D) Activities in each of its five units may be categorized functionally.

Question 5

Organizations which have branches in various locations can function efficiently as U-form organizations.

Accepted Answer

A) True 
 B)False

Question 6

Axis Group has a publishing house, operates in the sports gear market, and owns a coffee plantation.A board of directors is responsible for the overall performance of the group.Fabrics Inc., on the other hand specializes in women's apparel.Which of the following statements will be true?

Accepted Answer

A) Decision-making at Axis will be more decentralized in comparison to Fabrics, Inc. 
B) Many decisions at Fabrics is likely to be made at lower levels. 
C) Individuals at higher levels at Fabrics are less likely to have all of the knowledge that exists at lower levels. 
D) Information transfer within Axis Group will be easier as compared to Fabrics, Inc. 
A) Decision-making at Axis will be more decentralized in comparison to Fabrics, Inc. 
B) Many decisions at Fabrics is likely to be made at lower levels. 
C) Individuals at higher levels at Fabrics are less likely to have all of the knowledge that exists at lower levels. 
D) Information transfer within Axis Group will be easier as compared to Fabrics, Inc.

Question 7

All individuals on the same line in an organization chart have similar levels of responsibility and authority in the organization.

Accepted Answer

A) True 
 B)False

Question 8

Identify the main characteristics of a matrix form organization.

Accepted Answer

If a firm produces a diverse range of pr

Question 9

Why do firms reorganize and change their structural forms?

Accepted Answer

Changes in markets or technolo

Question 10

Each of the following can explain why an order could not been carried out as intended, EXCEPT:

Accepted Answer

A) incompetence. 
B) opportunism. 
C) impossibility. 
D) obedience. 
A) incompetence. 
B) opportunism. 
C) impossibility. 
D) obedience.

Question 11

_____ is the only type of firm where it is possible for a person to hold all of the information that matters for all types of decisions.

Accepted Answer

A) Corporation 
B) A firm where decision-making is centralized 
C) Sole proprietorship 
D) A firm where there is separation of ownership and management 
A) Corporation 
B) A firm where decision-making is centralized 
C) Sole proprietorship 
D) A firm where there is separation of ownership and management

Question 12

An SCU can function effectively when:

Accepted Answer

A) the information flows to the SCU through the shortest route from the source. 
B) the aims and interests of its members and those of division-level employees coincide. 
C) the information flows to the SCU through a longer route, enabling multiple-level checks. 
D) the organization has different groups of individuals independently analyzing different types of risk. 
A) the information flows to the SCU through the shortest route from the source. 
B) the aims and interests of its members and those of division-level employees coincide. 
C) the information flows to the SCU through a longer route, enabling multiple-level checks. 
D) the organization has different groups of individuals independently analyzing different types of risk.

Question 13

Which of the following statements is true of members of an organization?

Accepted Answer

A) They are either principals or subordinates. 
B) Agents are closely monitored by principals at all times. 
C) Each member generates information for the use of others in the organization. 
D) Decision-makers decide on the basis of the information they generate themselves. 
A) They are either principals or subordinates. 
B) Agents are closely monitored by principals at all times. 
C) Each member generates information for the use of others in the organization. 
D) Decision-makers decide on the basis of the information they generate themselves.

Question 14

Which of the following is a function of the headquarters of an M-form organization?

Accepted Answer

A) To take all decisions relating to the functioning of the various divisions. 
B) To measure and compare the performance of the different divisions. 
C) To solve the problems faced at lower levels of its different divisions. 
D) To ensure that all divisions work harmoniously with each other. 
A) To take all decisions relating to the functioning of the various divisions. 
B) To measure and compare the performance of the different divisions. 
C) To solve the problems faced at lower levels of its different divisions. 
D) To ensure that all divisions work harmoniously with each other.

Question 15

The late business historian Alfred Chandler blamed Britain's competitive difficulties in the early twentieth century on:

Accepted Answer

A) the structure of the firms. 
B) the removal of trade barriers. 
C) the lack of innovation. 
D) inefficient transfer of information within firms. 
A) the structure of the firms. 
B) the removal of trade barriers. 
C) the lack of innovation. 
D) inefficient transfer of information within firms.

Question 16

_____ transfer the necessary information within a firm and bind the recipients to take certain actions.

Accepted Answer

A) Contracts 
B) Decision-makers 
C) Owners of information 
D) Orders 
A) Contracts 
B) Decision-makers 
C) Owners of information 
D) Orders

Question 17

General Motors was able to gain advantage over Ford in the 1920s primarily because:

Accepted Answer

A) the latter failed to adapt its product policy and organization structure to meet the demands of the changing market. 
B) the former had always been an M-form and better managed organization. 
C) the latter charged higher prices for its cars than General Motors. 
D) the former was vertically integrated with better control over its input production than Ford. 
A) the latter failed to adapt its product policy and organization structure to meet the demands of the changing market. 
B) the former had always been an M-form and better managed organization. 
C) the latter charged higher prices for its cars than General Motors. 
D) the former was vertically integrated with better control over its input production than Ford.

Question 18

In case of a disagreement between a regional manager and a business area manager of a matrix organization who have equal decision making authority, the decision should be made at higher levels of the organization.

Accepted Answer

A) True 
 B)False

Question 19

Centralizing decisions is efficient if people at lower levels of an organization have knowledge to which those at higher levels can add little.

Accepted Answer

A) True 
 B)False

Question 20

In which of the following cases will centralization of decision making be appropriate?

Accepted Answer

A) When different departments in an organization function separately without much interrelation. 
B) When information necessary for the decision making process originates from a variety of sources. 
C) When the organization expands in size and its activities become more complex. 
D) When all the information comes from an external source. 
A) When different departments in an organization function separately without much interrelation. 
B) When information necessary for the decision making process originates from a variety of sources. 
C) When the organization expands in size and its activities become more complex. 
D) When all the information comes from an external source.

Which of the following statements is true about Tyson Foods, Inc.?

Which of the following statements is true regarding organizations with self-contained units (SCU) for risk-management?

With reference to the operations of the ABB Group discuss the functioning of matrix form organizations.

Hayle Motors specializes in the production of fire trucks and has production units in five countries.Which of the following is NOT true about Hayle Motors?

Organizations which have branches in various locations can function efficiently as U-form organizations.

Axis Group has a publishing house, operates in the sports gear market, and owns a coffee plantation.A board of directors is responsible for the overall performance of the group.Fabrics Inc., on the other hand specializes in women's apparel.Which of the following statements will be true?

All individuals on the same line in an organization chart have similar levels of responsibility and authority in the organization.

Identify the main characteristics of a matrix form organization.

Why do firms reorganize and change their structural forms?

Each of the following can explain why an order could not been carried out as intended, EXCEPT:

_____ is the only type of firm where it is possible for a person to hold all of the information that matters for all types of decisions.

An SCU can function effectively when:

Which of the following statements is true of members of an organization?

Which of the following is a function of the headquarters of an M-form organization?

The late business historian Alfred Chandler blamed Britain's competitive difficulties in the early twentieth century on:

_____ transfer the necessary information within a firm and bind the recipients to take certain actions.

General Motors was able to gain advantage over Ford in the 1920s primarily because:

In case of a disagreement between a regional manager and a business area manager of a matrix organization who have equal decision making authority, the decision should be made at higher levels of the organization.

Centralizing decisions is efficient if people at lower levels of an organization have knowledge to which those at higher levels can add little.

In which of the following cases will centralization of decision making be appropriate?

Reasoning With Economics: Models and Information

Transactions and Institutions: the Building Blocks

Markets

Cost and Production

Extreme Markets I: Perfect Competition

Extreme Markets II: Monopoly

Between the Extremes: Interaction and Strategy

Competition and Strategy

Beyond Markets; Property and Contracts

The Economics of Contracts

Risk and Information in Contracts

Organizations in Concept and Practice

Vertical Relationships

Employment Relationships

Time, Risk and Options

Conflict, Negotiation and Group Choice

Filters

Exam 13: Organizational Design

Which of the following statements is true about Tyson Foods, Inc.?

Which of the following statements is true regarding organizations with self-contained units (SCU) for risk-management?

With reference to the operations of the ABB Group discuss the functioning of matrix form organizations.

Hayle Motors specializes in the production of fire trucks and has production units in five countries.Which of the following is NOT true about Hayle Motors?

Organizations which have branches in various locations can function efficiently as U-form organizations.

Axis Group has a publishing house, operates in the sports gear market, and owns a coffee plantation.A board of directors is responsible for the overall performance of the group.Fabrics Inc., on the other hand specializes in women's apparel.Which of the following statements will be true?

All individuals on the same line in an organization chart have similar levels of responsibility and authority in the organization.

Identify the main characteristics of a matrix form organization.

Why do firms reorganize and change their structural forms?

Each of the following can explain why an order could not been carried out as intended, EXCEPT:

_____ is the only type of firm where it is possible for a person to hold all of the information that matters for all types of decisions.

An SCU can function effectively when:

Which of the following statements is true of members of an organization?

Which of the following is a function of the headquarters of an M-form organization?

The late business historian Alfred Chandler blamed Britain's competitive difficulties in the early twentieth century on:

_____ transfer the necessary information within a firm and bind the recipients to take certain actions.

General Motors was able to gain advantage over Ford in the 1920s primarily because:

In case of a disagreement between a regional manager and a business area manager of a matrix organization who have equal decision making authority, the decision should be made at higher levels of the organization.

Centralizing decisions is efficient if people at lower levels of an organization have knowledge to which those at higher levels can add little.

In which of the following cases will centralization of decision making be appropriate?

Reasoning With Economics: Models and Information

Transactions and Institutions: the Building Blocks

Markets

Cost and Production

Extreme Markets I: Perfect Competition

Extreme Markets II: Monopoly

Between the Extremes: Interaction and Strategy

Competition and Strategy

Beyond Markets; Property and Contracts

The Economics of Contracts

Risk and Information in Contracts

Organizations in Concept and Practice

Vertical Relationships

Employment Relationships

Time, Risk and Options

Conflict, Negotiation and Group Choice

Filters