Question 1

_____ occurs when behavior and work procedures do not conform to standards.

Accepted Answer

A)  Affective commitment 
B)  Job embeddedness 
C)  Control loss 
D)  Customer defection

Question 2

_____ is the process of identifying outstanding practices, processes, and standards in other companies and adapting them to your company.

Accepted Answer

A)  Branding 
B)  Regulating 
C)  Profiling 
D)  Benchmarking

Question 3

Darius runs a recruitment agency. He believes that employment empowers people to lead better lives. His employees also share the same belief. Darius trains his employees to find the right candidates for the clients. Likewise, his employees derive satisfaction by helping candidates find their dream jobs. This scenario illustrates that Darius uses _____.

Accepted Answer

A)  concertive control 
B)  objective control 
C)  bureaucratic control 
D)  normative control

Question 4

_____ predict how changes in businesses will affect their ability to take in more money than they pay out.

Accepted Answer

A)  Cash flow analyses 
B)  Balance sheets 
C)  Financial ratios 
D)  Income statements

Question 5

The accountants at Global Finances can take work home for as many days as they like as long as their spreadsheets are up to date and accurate. This scenario illustrates that Global Finances uses _____.

Accepted Answer

A)  self-control 
B)  concertive control 
C)  bureaucratic control 
D)  normative control

Question 6

Leonel owns a luxury car showroom. He hires staff members who are communicative and pleasant and possess knowledge on the cars they are selling. His employees share the same love for cars as him. This scenario illustrates that Leonel uses _____.

Accepted Answer

A)  concertive control 
B)  objective control 
C)  bureaucratic control 
D)  normative control

Question 7

The fourth and lowest level of sustainability is waste disposal.

Accepted Answer

A) True 
 B)False

Question 8

Colby runs a start-up that sells seasonal holiday packages. He leads a team of 10 people. Every time his customers are happy with the package created for them, he rewards his employees with shopping vouchers. However, if they break rules or do not comply with the company's policies, he reduces their incentives. In this scenario, Colby is using _____.

Accepted Answer

A)  adaptive control 
B)  normative control 
C)  concertive control 
D)  bureaucratic control

Question 9

_____ are calculations typically used to track a business's liquidity, efficiency, and profitability over time compared to other businesses in its industry.

Accepted Answer

A)  Market basket analyses 
B)  Cash flow analyses 
C)  Financial ratios 
D)  Balance sheets

Question 10

_____ is the extent to which it is possible to implement each step in the control process.

Accepted Answer

A)  Synergy 
B)  Cybernetic feasibility 
C)  Feedforward control 
D)  Centralization

Question 11

_____ are the costs associated with implementing or maintaining control.

Accepted Answer

A)  Value costs 
B)  Conversion costs 
C)  Sunk costs 
D)  Regulation costs

Question 12

Lia runs a day care center. She is very particular about the kind of attention her staff lends to the children who come to the day care center. She hires employees who love children and are capable of taking care of them with utmost patience. Her employees are attentive, proactive, and sensitive to the needs of the children. This scenario illustrates that Lia uses _____.

Accepted Answer

A)  concertive control 
B)  objective control 
C)  bureaucratic control 
D)  normative control

Question 13

Unlike output control, behavior control _____.

Accepted Answer

A)  is a type of normative control 
B)  is often coupled with rewards and incentives 
C)  gives managers and workers the freedom to behave as they see fit as long as they accomplishprespecified, measurable results 
D)  regulates, guides, and measures how workers behave on the job

Question 14

Identify a difference between feedforward control and feedback control?

Accepted Answer

A)  Unlike feedforward control, feedback control attempts to eliminate the delay between performance and feedback about the performance. 
B)  Unlike feedforward control, feedback control involves gathering information about performance deficiencies before they occur. 
C)  Feedforward control is a bottom-up process, while feedback control is a top-down process. 
D)  Feedforward control monitors inputs, while feedback control monitors outputs.

Question 15

Credit card issuers have lost billions from stolen credit card numbers hacked via the credit card swipe machines used in retail stores. As a result, they have _____.

Accepted Answer

A)  added an additional feature of fingerprint scanning to the existing swipe machines to ensure customers use their respective credit cards. 
B)  stopped paying for fraudulent claims from online retailers. 
C)  changed the standard from convenience to security and introduced new, more secure pin and chip swipe machines 
D)  regulated the credit card issuing process based on family size and income.

Question 16

Which of the following statements is true of bureaucratically controlled companies?

Accepted Answer

A)  They place little emphasis on policies and procedures. 
B)  They are highly resistant to change. 
C)  They are highly responsive to their customers' needs. 
D)  They rely on group norms rather than on formalized rules and regulations.

Question 17

Managers who use bureaucratic control are known to:

Accepted Answer

A)  place little emphasis on policies and procedures. 
B)  emphasize following the rules above all else. 
C)  believe that the shared values and beliefs of the company guide workers' behavior. 
D)  rely on group norms rather than on formalized rules and regulations.

Question 18

Identify a true statement about a self-control system.

Accepted Answer

A)  It allows an employee to do whatever he or she wants. 
B)  It does not result in anarchy. 
C)  It does not restrict workers with boundaries. 
D)  It allows managers to control the goals and behaviors of workers.

Question 19

The CEO of Fox Mart wants to know what his company's financial position looked like on the 31st of December of the previous year. The financial report he should look at is the company's _____.

Accepted Answer

A)  cash flow analysis 
B)  financial ratio 
C)  balance sheet 
D)  annual budget

Question 20

Economic value added (EVA) is the same thing as profits.

Accepted Answer

A) True 
 B)False

Exam 16: Control

_____ occurs when behavior and work procedures do not conform to standards.

_____ is the process of identifying outstanding practices, processes, and standards in other companies and adapting them to your company.

_____ predict how changes in businesses will affect their ability to take in more money than they pay out.

The accountants at Global Finances can take work home for as many days as they like as long as their spreadsheets are up to date and accurate. This scenario illustrates that Global Finances uses _____.

Leonel owns a luxury car showroom. He hires staff members who are communicative and pleasant and possess knowledge on the cars they are selling. His employees share the same love for cars as him. This scenario illustrates that Leonel uses _____.

The fourth and lowest level of sustainability is waste disposal.

_____ are calculations typically used to track a business's liquidity, efficiency, and profitability over time compared to other businesses in its industry.

_____ is the extent to which it is possible to implement each step in the control process.

_____ are the costs associated with implementing or maintaining control.

Unlike output control, behavior control _____.

Identify a difference between feedforward control and feedback control?

Credit card issuers have lost billions from stolen credit card numbers hacked via the credit card swipe machines used in retail stores. As a result, they have _____.

Which of the following statements is true of bureaucratically controlled companies?

Managers who use bureaucratic control are known to:

Identify a true statement about a self-control system.

The CEO of Fox Mart wants to know what his company's financial position looked like on the 31st of December of the previous year. The financial report he should look at is the company's _____.

Economic value added (EVA) is the same thing as profits.