Question 1

The most commonly used financial performance measure in organizations is the debt-to-equity ratio.

Accepted Answer

A) True 
 B)False

Question 2

The current assets of Global Acorn are valued at 25 million dollars and its current liabilities are at 6 million dollars. If its inventory is worth 1 million dollars, what is its quick ratio?

Accepted Answer

A)  4 
B)  0.25 
C)  0.14 
D)  3.6

Question 3

Identify the steps in the organizational change process and describe what occurs in each step.

Accepted Answer

The answer of Identify the steps in the organizational change...

Question 4

From the information given below, calculate the organization's return on investment. Total Liabilities = $300,000; Total Assets = $600,000; Gross Margin = $200,000; Net Income Before Taxes = $30,000; Total Expenses = $240,000

Accepted Answer

A)  50 percent 
B)  5 percent 
C)  10 percent 
D)  12.5 percent

Question 5

In an adaptive culture, employees often receive rewards based on their ________.

Accepted Answer

A)  performance 
B)  contracts 
C)  length of service 
D)  organizational commitment

Question 6

When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) ________ budget approach.

Accepted Answer

A)  capital 
B)  revenue 
C)  expense 
D)  profit

Question 7

When an organization has a strong and cohesive organizational culture that controls employee attitudes and behaviors, that company has a(n) ________ culture.

Accepted Answer

A)  networked 
B)  inert 
C)  adaptive 
D)  bureaucratic

Question 8

During the input stage, the most common type of control procedure is concurrent control, which gives managers immediate feedback.

Accepted Answer

A) True 
 B)False

Question 9

The financial ratio that measures the ability of the organization to pay its short-term debts is the ________ ratio.

Accepted Answer

A)  leverage 
B)  liquidity 
C)  activity 
D)  profit

Question 10

A worker at a motorcycle plant comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. The managers instruct all employees to attach fuel injection systems the same way so that every car would come off the assembly line with its fuel injection system attached in the new way. The managers are using ________ control.

Accepted Answer

A)  bureaucratic 
B)  clan 
C)  output 
D)  input

Question 11

Define adaptive culture and inert culture. Which is better for an organization and why? Give at least two examples of what organizations with each of these do to develop their cultures.

Accepted Answer

The answer of Define adaptive culture and inert culture. Which...

Question 12

The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is ________ control.

Accepted Answer

A)  feedforward 
B)  MBO 
C)  feedback 
D)  concurrent

Question 13

The type of control that managers typically use in the input stage of the process of transforming raw materials into finished goods is ________ control.

Accepted Answer

A)  feedforward 
B)  concurrent 
C)  feedback 
D)  bureaucratic

Question 14

The top managers of an organization typically use a variety of financial indicators to assess the performance of their organizations. Discuss the four major types of financial measures.

Accepted Answer

The answer of The top managers of an organization typically...

Question 15

When an organization has a culture that leads to values and norms that fail to motivate or inspire employees, which eventually leads to stagnation and often failure over time, that company has a(n) ________ culture.

Accepted Answer

A)  adaptive 
B)  inert 
C)  communal 
D)  bureaucratic

Question 16

The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively are known as ________ systems.

Accepted Answer

A)  operating 
B)  organizational 
C)  control 
D)  recurrent

Question 17

In assessing the need for organizational change, managers must ________.

Accepted Answer

A)  identify the obstacles to change at the corporate and individual levels 
B)  plan how they are going to attain the organization's ideal future state 
C)  recognize that there is a problem and identify its source 
D)  implement change from the top down or from the bottom up

Question 18

Which of the following stages in making organizational change includes benchmarking?

Accepted Answer

A)  Assess the need for change 
B)  Decide on the change to make 
C)  Implement the change 
D)  Evaluate the change

Question 19

The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the ________ ratio.

Accepted Answer