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Modern Management, 12e (Certo)
Chapter 1 Introducing Modern Management: Concepts and Skills
1) The four basic management functions are planning, organizing, influencing and controlling.
Answer: TRUE
Page Ref: 7-8
Objective: 4
Difficulty: Easy
Classification: Conceptual
2) Planning involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.
Answer: TRUE
Page Ref: 7
Objective: 4
Difficulty: Easy
Classification: Conceptual
3) Planning is concerned only with organizational success in the short term, while organizing is concerned with the more distant future (long term).
Answer: FALSE
Page Ref: 7
Objective: 4
Difficulty: Easy
Classification: Conceptual
4) Influencing is the process of assigning the tasks developed under the planning function to various individuals or groups within the organization.
Answer: FALSE
Page Ref: 7
Objective: 4
Difficulty: Easy
Classification: Conceptual
5) Organizing is also commonly referred to as motivating, leading, directing, or actuating.
Answer: FALSE
Page Ref: 7
Objective: 4
Difficulty: Easy
Classification: Conceptual
6) Controlling is the management function through which managers compare present performance to preestablished performance standards.
Answer: TRUE
Page Ref: 7
Objective: 4
Difficulty: Easy
Classification: Conceptual
7) Organizational resources are of four basic types: planning, organizing, leading and controlling.
Answer: FALSE
Page Ref: 9
Objective: 4
Difficulty: Easy
Classification: Conceptual
8) Efficient means that a small proportion of total resources contributes to productivity during the manufacturing process; inefficient means that a large proportion of resources contributes to productivity.
Answer: FALSE
Page Ref: 10
Objective: 5
Difficulty: Easy
Classification: Conceptual
9) Management jobs vary but management principles are universal. The basic ingredients of successful management are applicable to all organizations.
Answer: TRUE
Page Ref: 11
Objective: 7
Difficulty: Easy
Classification: Conceptual
10) Technical skills involve the ability to apply specialized knowledge and expertise to work-related techniques and procedures.
Answer: TRUE
Page Ref: 12
Objective: 6
Difficulty: Easy
Classification: Conceptual
11) Human skills, unlike technical skills, involve the ability to see the organization as a whole.
Answer: FALSE
Page Ref: 12
Objective: 6
Difficulty: Easy
Classification: Conceptual
12) As one moves from lower-level management to upper-level management, conceptual skills become more important and technical skills less important.
Answer: TRUE
Page Ref: 12
Objective: 6
Difficulty: Easy
Classification: Conceptual
13) Providing recognition for achievements and contributions, developing skill and confidence of organization members are change-related activities.
Answer: FALSE
Page Ref: 13
Objective: 6
Difficulty: Easy
Classification: Conceptual
14) In an organization, short-term planning, clarifying objectives of jobs in organizations, and monitoring operations and performance are task-related activities.
Answer: TRUE
Page Ref: 13
Objective: 6
Difficulty: Easy
Classification: Conceptual
15) To increase the probability of being successful, managers should have competence in recognizing. This involves checking with people before making decisions that affect them, encouraging participation in decision-making, and using the ideas and suggestions of others.
Answer: FALSE
Page Ref: 13
Objective: 8
Difficulty: Easy
Classification: Conceptual
16) A career is a sequence of work-related positions occupied by a person over the course of a lifetime.
Answer: TRUE
Page Ref: 15
Objective: 9
Difficulty: Easy
Classification: Conceptual
17) The exploration stage occurs at the beginning of a career and is characterized by self-analysis and the exploration of different types of available jobs.
Answer: TRUE
Page Ref: 16
Objective: 9
Difficulty: Easy
Classification: Conceptual
18) Career plateauing is a period of declining performance and productivity.
Answer: FALSE
Page Ref: 17
Objective: 9
Difficulty: Easy
Classification: Conceptual
19) The second stage in career evolution is the establishment stage, during which individuals about 25 to 45 years old start to become more productive, or higher performers.
Answer: TRUE
Page Ref: 17
Objective: 9
Difficulty: Easy
Classification: Conceptual
20) An organization that wants to retain an employee may need to assist that employee’s spouse in his or her career development as well.
Answer: TRUE
Page Ref: 19
Objective: 9
Difficulty: Easy
Classification: Conceptual
21) ________ managers run manufacturing operations that produce the clothes, food, or other products.
- A) Personnel
- B) Plant
- C) Sales
- D) Accounting
- E) Human Resources
Answer: B
Page Ref: 4
Objective: 1
Difficulty: Easy
Classification: Conceptual
22) Sara is a manager in a food processing company. Her primary function is to see that organizational goals are achieved. Which of the following must she discourage in order to promote this?
- A) Ben spends a lot of time on Facebook, but gets his work done on time.
- B) Ted organizes an inter-departmental soccer game every month.
- C) Ashley’s CSR activities for the company sometimes delay her work.
- D) During lull periods at work, Sally works on her Master’s thesis.
- E) Clare is the top performer in the department, but has no interest in the industry.
Answer: C
Page Ref: 5
AACSB: Analytic Skills
Objective: 1
Difficulty: Easy
Classification: Conceptual
23) The primary task of management is to encourage individual activity that will ________.
- A) promote the individual’s growth
- B) always produce outstanding results
- C) utilize the maximum amount of resources
- D) lead to reaching organizational goals
- E) always generate the highest revenue
Answer: D
Page Ref: 6
Objective: 2
Difficulty: Easy
Classification: Conceptual
24) When devising goals for his team to achieve, which of the following points should Kevin consider most important?
- A) his career goals
- B) individual abilities
- C) internal politics
- D) organizational goals
- E) employee goals
Answer: D
Page Ref: 6
AACSB: Analytic Skills
Objective: 2
Difficulty: Easy
Classification: Application
25) Which of the following statements is true for the management function?
- A) It reaches goals by working with and through people.
- B) It is a one-time function in an organization.
- C) It is a series of continuing and unrelated activities.
- D) It involves and concentrates on reaching individual goals.
- E) It does not consider the people aspect of organizations.
Answer: A
Page Ref: 7
Objective: 3
Difficulty: Easy
Classification: Conceptual
26) ________ involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.
- A) Organizing
- B) Influencing
- C) Controlling
- D) Monitoring
- E) Planning
Answer: E
Page Ref: 7
Objective: 4
Difficulty: Easy
Classification: Conceptual
27) ________ includes determining tasks and groupings of work. It should not be rigid, but adaptable and flexible to meet challenges as circumstances change.
- A) Organizing
- B) Influencing
- C) Controlling
- D) Monitoring
- E) Planning
Answer: A
Page Ref: 7
Objective: 4
Difficulty: Easy
Classification: Conceptual
28) Neil is the plant manager at Serieux Manufacturing. He has just been given the production targets for the month and has determined the activities necessary to achieve these. He now has to decide who will perform the various activities best so that the output will be maximized, and must assign the activities to those workers. Neil is performing the ________ function of management.
- A) organizing
- B) influencing
- C) controlling
- D) monitoring
- E) planning
Answer: A
Page Ref: 7
AACSB: Analytic Skills
Objective: 4
Difficulty: Easy
Classification: Application
29) ________ can be defined as guiding the activities of organization members in appropriate directions.
- A) Organizing
- B) Influencing
- C) Controlling
- D) Monitoring
- E) Planning
Answer: B
Page Ref: 7
Objective: 4
Difficulty: Easy
Classification: Conceptual
30) Becky’s department has seen a number of layoffs in the last two months, and employee morale is very low. This is affecting the work atmosphere and productivity is declining. In this situation, the department manager’s primary task will be _______.
- A) organizing
- B) influencing
- C) controlling
- D) monitoring
- E) planning
Answer: B
Page Ref: 7
AACSB: Analytic Skills
Objective: 4
Difficulty: Easy
Classification: Application
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Modern Management, 12e (Certo)
Chapter 5 Managing in the Global Arena
1) International management is the performance of management activities across national borders.
Answer: TRUE
Page Ref: 110
AACSB: Dynamics of the Global Economy
Objective: 1
Difficulty: Easy
Classification: Conceptual
2) Establishing a formal partnership with a foreign company is a form of international management.
Answer: TRUE
Page Ref: 110
AACSB: Dynamics of the Global Economy
Objective: 1
Difficulty: Easy
Classification: Conceptual
3) One form of international management is fighting competition in foreign markets.
Answer: TRUE
Page Ref: 110
AACSB: Dynamics of the Global Economy
Objective: 1
Difficulty: Easy
Classification: Conceptual
4) Transnational organizations have the least international involvement of all types of organizations involved in the international arena.
Answer: FALSE
Page Ref: 112
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
5) Domestic organizations essentially operate within a single country.
Answer: TRUE
Page Ref: 112
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
6) In order to be classified as a domestic corporation, a corporation must acquire all resources and sell all products within one country.
Answer: FALSE
Page Ref: 113
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
7) An international organization has a lower level of international involvement than a multinational organization.
Answer: TRUE
Page Ref: 113
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
8) A multinational corporation is a company that is primarily based in one country but has continuing transactions in other countries.
Answer: FALSE
Page Ref: 113
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
9) A company that merely exports products to a foreign country cannot be considered a multinational corporation.
Answer: FALSE
Page Ref: 114
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
10) A company that exports products to a foreign country and establishes sales organizations abroad is considered to be a domestic company.
Answer: FALSE
Page Ref: 114
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
11) The host company is the company investing in international operations.
Answer: FALSE
Page Ref: 116
AACSB: Dynamics of the Global Economy
Objective: 3
Difficulty: Easy
Classification: Conceptual
12) Expatriates are organization members who live and work in a country in which they are not citizens.
Answer: TRUE
Page Ref: 116
AACSB: Multicultural and Diversity Understanding
Objective: 4
Difficulty: Easy
Classification: Conceptual
13) Third-country nationals are organization members who are citizens of the country in which the facility of a foreign-born organization is located.
Answer: FALSE
Page Ref: 116
AACSB: Multicultural and Diversity Understanding
Objective: 4
Difficulty: Easy
Classification: Conceptual
14) Host-country nationals do not need to be relocated or undergo training in the culture, language, or tax laws of the country where the organization is doing business.
Answer: TRUE
Page Ref: 117
AACSB: Dynamics of the Global Economy
Objective: 4
Difficulty: Easy
Classification: Conceptual
15) Repatriation is the process of ensuring the adjustment of a worker to a foreign country.
Answer: FALSE
Page Ref: 118
AACSB: Multicultural and Diversity Understanding
Objective: 4
Difficulty: Easy
Classification: Conceptual
16) A license agreement is a right granted by one company to another to use its brand name and technology in the manufacture or sale of goods and services.
Answer: TRUE
Page Ref: 119
AACSB: Multicultural and Diversity Understanding
Objective: 5
Difficulty: Easy
Classification: Conceptual
17) The European Union is an example of an international market agreement.
Answer: TRUE
Page Ref: 121
AACSB: Dynamics of the Global Economy
Objective: 5
Difficulty: Easy
Classification: Conceptual
18) A polycentric attitude reflects the belief that multinational corporations should regard home-country management practices as superior to foreign-country management practices.
Answer: FALSE
Page Ref: 124
AACSB: Multicultural and Diversity Understanding
Objective: 5
Difficulty: Easy
Classification: Conceptual
19) Managers with an ethnocentric attitude are prone to stereotype foreign management practices as faulty and unreasonable.
Answer: TRUE
Page Ref: 124
AACSB: Multicultural and Diversity Understanding
Objective: 5
Difficulty: Easy
Classification: Conceptual
20) Transnational organizations usually take one particular continent as their business arena.
Answer: FALSE
Page Ref: 127
AACSB: Dynamics of the Global Economy
Objective: 6
Difficulty: Easy
Classification: Conceptual
21) The different types of organizations in ascending order of the extent of involvement in the international arena are ________.
- A) domestic, international, multinational, transnational
- B) international, transnational, domestic, multinational
- C) multinational, domestic, transnational, global
- D) transnational, international, multinational, domestic
- E) domestic, multinational, transnational, international
Answer: A
Page Ref: 112
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
22) Which of the following categories of organizations generally has the lowest level of international involvement?
- A) global organizations
- B) domestic organizations
- C) international organizations
- D) multinational organizations
- E) transnational organizations
Answer: B
Page Ref: 112
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
23) Which of the following types of organizations has the highest level of international involvement?
- A) international organizations
- B) multinational organizations
- C) transnational organizations
- D) ethnocentric organizations
- E) domestic organizations
Answer: C
Page Ref: 112
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
24) ________ organizations essentially operate within a single country.
- A) Multinational
- B) Transnational
- C) Global
- D) Domestic
- E) International
Answer: D
Page Ref: 112
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
25) SNL manufactures and sells customized shoes for people with special needs. The company caters mostly to customers within the U.S., though it occasionally sends products to overseas customers. The company is very eco-friendly, and takes pride in sourcing all its raw materials locally. According to the information, SNL is a(n) ________ company.
- A) transnational
- B) global
- C) multinational
- D) domestic
- E) international
Answer: D
Page Ref: 112
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application
26) Adam & Sons is a fifty-year-old watch company based in Alabama. The major bulk of its sales has always taken place within the U.S. Adam & Sons recently became the sole U.S. distributors for Japanese watch manufacturer TLC. Adam & Sons would therefore be classified as a(n) ________.
- A) international organization
- B) multinational organization
- C) transnational organization
- D) global organization
- E) domestic organization
Answer: A
Page Ref: 113
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application
27) Which of the following describes a company that is primarily based within one country but has continuing and meaningful transactions in other countries?
- A) domestic organization
- B) international organization
- C) multinational organization
- D) transnational organization
- E) global organization
Answer: B
Page Ref: 113
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
28) BLT is a sandwich chain based in Boston. Word-of-mouth popularity opened up the market and the company is now opening branches in New Jersey and Connecticut as well. The company sources all its raw materials locally and makes it a point to use sustainable practices. Which of the following actions would make BLT a multinational company?
- A) It begins stocking organic foods produced by local farms.
- B) It distributes artisanal chocolate produced by a South African firm.
- C) It licenses a fast-food chain in England to use its brand name.
- D) It diversifies its product lineup to include different types of foods.
- E) It begins selling cheeses imported from France.
Answer: C
Page Ref: 113
AACSB: Analytic Skills
Objective: 2
Difficulty: Moderate
Classification: Application
29) An organization that has significant operations in more than one country, disregards national boundaries, and is guided by a common strategy from a corporation center is a(n) ________.
- A) global organization
- B) domestic organization
- C) international corporation
- D) multinational corporation
- E) transnational organization
Answer: D
Page Ref: 113
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
30) Which of the following is the simplest stage of multinationalization?
- A) establishing sales organizations abroad
- B) licensing the use of the organization’s pattern and know-how to foreign firms that make and sell the organization’s product
- C) establishing foreign manufacturing facilities
- D) multinationalizing the organization’s management from top to bottom
- E) exporting the organization’s product to foreign countries
Answer: E
Page Ref: 114
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
31) What is the most advanced stage in multinationalization of a company?
- A) licensing its brand names to foreign firms
- B) establishing foreign manufacturing facilities
- C) establishing sales organizations abroad
- D) exporting the organization’s products to foreign countries
- E) multinationalizing ownership of the corporate stock
Answer: E
Page Ref: 114
AACSB: Dynamics of the Global Economy
Objective: 2
Difficulty: Easy
Classification: Conceptual
32) EasyWear Apparels is based in the U.S. and recently established a manufacturing unit in Montreal and a manufacturing unit and retail outlet in Leeds in the U.K. Which of the following scenarios mirrors EasyWear’s situation?
- A) An automobile company headquartered in Austria starts production for its German market in Berlin.
- B) A cell phone producer based in Finland starts selling its products in India.
- C) Dell Computers has established sales organizations in major cities all over the world.
- D) Fiona, an Italian shoe manufacturer, allows a firm in Kuala Lumpur the use of its patterns.
- E) McDonald’s has a standing contract with Coca Cola to sell its beverages in all its outlets.
Answer: A
Page Ref: 114
AACSB: Reflective Thinking Skills
Objective: 2
Difficulty: Difficult
Classification: Critical thinking
33) Which of the following is a characteristic of domestic management?
- A) widely disparate economic conditions
- B) national markets varying greatly in population and area
- C) different national sovereignties
- D) markets at different stages of the industrial revolution
- E) people living in similar value systems
Answer: E
Page Ref: 114
Objective: 2
Difficulty: Easy
Classification: Conceptual
34) Apparel company RED Lion Ltd. has a strong presence along the West Coast in the U.S., and is looking to expand its market overseas. The company began through the export route, exporting apparel to firms in the U.K., but now wants to establish manufacturing units abroad. Which of the following would weaken the company’s decision to expand abroad?
- A) Establishing manufacturing abroad would reduce RED Lion’s shipping costs.
- B) There is increasing economic uncertainty in the U.S. market.
- C) The preferences of customers in both countries are similar.
- D) The economic systems in the two countries are very different.
- E) A competitor in the U.S. market recently went out of business.
Answer: D
Page Ref: 116
AACSB: Reflective Thinking Skills
Objective: 3
Difficulty: Easy
Classification: Critical thinking
35) A company investing in international operations is known as the ________.
- A) quasi corporation
- B) parent company
- C) subsidiary company
- D) holding company
- E) host company
Answer: B
Page Ref: 116
AACSB: Dynamics of the Global Economy
Objective: 3
Difficulty: Easy
Classification: Conceptual
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