Question 1

One of the organizational objectives of Valpo Industries, a pharmaceutical firm, is "to develop a new line of drugs for the treatment of life-threatening diseases such as cancer and AIDS, through the use of patented technology and processes." According to Drucker, this objective relates to ________.

Accepted Answer

A)  market standing 
B)  innovation 
C)  productivity 
D)  profitability 
E)  public responsibility

Question 2

Which of the following is NOT a step in designing a PERT network?

Accepted Answer

A)  Determining how much time is needed to complete activities and events 
B)  Identifying the critical path 
C)  Identifying financial resources needed to complete activities 
D)  Listing all activities and events that must be accomplished for the project 
E)  Designing a PERT network that reflects activities, events, and time needed

Question 3

A study of failed planning showed that preventing a failure in planning begins with ensuring ________.

Accepted Answer

A)  corporate planning is not integrated into the total management process of the organization 
B)  management implements and operates according to the plan 
C)  management at different levels of the firm are not included in plan development 
D)  management attempts to complete all objectives at the same time 
E)  financial projections are confused with planning

Question 4

A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months. Which of the following is a valid criticism of this objective?

Accepted Answer

A)  It does not pinpoint expected results. 
B)  It is not stated in simple fashion. 
C)  It is not achievable. 
D)  It does not relate to specific actions. 
E)  It is not related to other organizational objectives.

Question 5

Walt Biggs is general manager at a plumbing contractor. He is currently working on designing the procedures and policies the company will use as it schedules its employees on customer projects. Which of the following managerial functions is Walt undertaking?

Accepted Answer

A)  planning 
B)  organizing 
C)  influencing 
D)  controlling 
E)  evaluating

Question 6

Short-term objectives are targets to be achieved within five to seven years.

Accepted Answer

A) True 
 B)False

Question 7

When using PERT, the sequence of events requiring the longest period of time is considered to be critical because one delay in the activities results in delays in the completion of a project.

Accepted Answer

A) True 
 B)False

Question 8

Alisa is trying to determine how to get her employees more involved in the company's plans and goals. Which of the following actions could she take as she begins identifying the goals for her department for the upcoming year?

Accepted Answer

A)  Tell employees which goals they will be working on 
B)  Have employees determine goals for the department 
C)  Assign goals randomly to employees 
D)  Work collectively with employees on planning the goals for the department 
E)  Let upper management set all departmental goals

Question 9

Which of the following techniques is used for scheduling resources?

Accepted Answer

A)  timetable 
B)  Gantt chart 
C)  horizontal axis 
D)  vertical axis 
E)  review

Question 10

Plans fail when management fails to grasp the overall planning process.

Accepted Answer

A) True 
 B)False

Question 11

According to Drucker, which of the following goal areas relates to a tangible, impersonal characteristic of organizational operations?

Accepted Answer

A)  number of employees 
B)  innovation 
C)  managerial performance and development 
D)  worker performance and attitude 
E)  public responsibility

Question 12

Intermediate-term objectives are targets to be achieved in ________.

Accepted Answer

A)  one year or less 
B)  one to five years 
C)  three to seven years 
D)  five to seven years 
E)  five to ten years

Question 13

Organizations who set their goal targets high enough so that employees have to work above and beyond their typical productivity levels are highly successful organizations.

Accepted Answer

A) True 
 B)False

Question 14

Premises are the assumptions upon which alternatives to reaching organizational objectives are based.

Accepted Answer

A) True 
 B)False

Question 15

According to Drucker, which of the following key areas for organizational objectives is more personal and subjective in nature, and hence likely to arouse managerial opposition?

Accepted Answer

A)  productivity 
B)  innovation 
C)  worker performance and attitude 
D)  physical and financial resources 
E)  market standing

Question 16

When determining goals to increase profitability, a manager assuming his company can gain a larger share of its market is an example of a(an) ________.

Accepted Answer

A)  premise 
B)  objective 
C)  contingency 
D)  affirmation 
E)  standing plan

Question 17

Which of the following guidelines for establishing quality objectives helps in keeping the risk of suboptimization to a minimum?

Accepted Answer

A)  relating objectives to specific actions whenever necessary 
B)  stating objectives as specifically as possible 
C)  setting objectives only in relation to other organizational objectives 
D)  specifying when goals are expected to be achieved 
E)  stating objectives clearly and simply

Question 18

Plaxo Industries is a large-scale manufacturer of commercial kitchen equipment. Its products are currently sold in Europe and the Middle East. Plaxo wants to foray into the Asian market, and the company's management has set a target of entering the Chinese market by 2018. This is an example of a(n) ________.

Accepted Answer

A)  short-term objective 
B)  intermediate-term objective 
C)  long-term objective 
D)  medium-term objective 
E)  operational objective

Question 19

The main weakness of the Gantt chart is that ________.

Accepted Answer

A)  it does not contain information about the interrelationship of tasks to be performed 
B)  it does not provide information about how organizational resources are bring employed 
C)  it contains too much information about the interrelationship of tasks to be performed 
D)  it does not help in establishing realistic worker output standards 
E)  it contains information about the intrarelationship of tasks to be performed

Question 20

The sales force estimation method is a sales forecasting technique that tracks sales by estimating the perceptions of salespeople as a group.

Accepted Answer

A) True 
 B)False

Exam 5: Plans and Planning Tools

Which of the following is NOT a step in designing a PERT network?

A study of failed planning showed that preventing a failure in planning begins with ensuring ________.

A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months. Which of the following is a valid criticism of this objective?

Walt Biggs is general manager at a plumbing contractor. He is currently working on designing the procedures and policies the company will use as it schedules its employees on customer projects. Which of the following managerial functions is Walt undertaking?

Short-term objectives are targets to be achieved within five to seven years.

When using PERT, the sequence of events requiring the longest period of time is considered to be critical because one delay in the activities results in delays in the completion of a project.

Alisa is trying to determine how to get her employees more involved in the company's plans and goals. Which of the following actions could she take as she begins identifying the goals for her department for the upcoming year?

Which of the following techniques is used for scheduling resources?

Plans fail when management fails to grasp the overall planning process.

According to Drucker, which of the following goal areas relates to a tangible, impersonal characteristic of organizational operations?

Intermediate-term objectives are targets to be achieved in ________.

Organizations who set their goal targets high enough so that employees have to work above and beyond their typical productivity levels are highly successful organizations.

Premises are the assumptions upon which alternatives to reaching organizational objectives are based.

According to Drucker, which of the following key areas for organizational objectives is more personal and subjective in nature, and hence likely to arouse managerial opposition?

When determining goals to increase profitability, a manager assuming his company can gain a larger share of its market is an example of a(an) ________.

Which of the following guidelines for establishing quality objectives helps in keeping the risk of suboptimization to a minimum?

The main weakness of the Gantt chart is that ________.

The sales force estimation method is a sales forecasting technique that tracks sales by estimating the perceptions of salespeople as a group.