Exam 11: Organizational Control and Change

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Control helps managers build competitive advantage.

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Why is return on investment (ROI) the most commonly used financial performance measure?

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Starling Manufacturing Inc. has carefully set up strict specifications for raw materials that are sourced from suppliers. It follows a three-step approval process to select new suppliers and ensures that they are aware of raw material specifications. This is an example of:

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Which of the following is a mechanism of behavior control?

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Profit ratios measure how well managers have protected organizational resources to be able to meet short-term obligations.

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The operating margin is calculated by dividing a company's operating profit by sales revenues.

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Control is not concerned with keeping employees focused on the important problems confronting the organization but with reacting to events after they have occurred.

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As a part of the controlling process, managers monitor and evaluate the organization's strategy to see if it is working.

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Which of the following types of controls helps monitor the quality of goods or services provided during the production process?

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Discuss the four major types of financial measures.

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Organizations with entrepreneurial, flexible cultures, such as high-tech companies, are much easier to change.

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Define evolutionary and revolutionary change.

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During the input stage, managers use __________ control procedures to anticipate problems before they occur.

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Which of the following types of controls do managers use during the conversion stage to gain feedback on the conversion process?

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It is more challenging for managers to measure outputs or behavior when an organization and its members perform nonroutine activities.

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An organization is said to be highly leveraged if it uses more debt than equity to finance its ongoing operations.

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Which of the following is true of measuring actual performance?

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Control by means of a comprehensive system of rules and standard operating procedures (SOPs) is known as:

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Which of the following is true of direct supervision?

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Revolutionary change is gradual, incremental, and narrowly focused.

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