1. Because practical considerations make job tryouts for all candidates infeasible, it is necessary to __________ the relative level of job performance for each candidate on the basis of available information.
2. Some studies indicate the best approach for transformational change may have the chief executive officer create an atmosphere for change
but let others decide how to initiate change
and begin establishing a vision
but carefully set limits for the program
and establish a reward system
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3. Which of the following is a desirable strategy for managers aiming to reduce the negative consequences of rumors?
Initiating disciplinary action against the employee who started the rumor
Encouraging employees to communicate their concerns and suggestions
Creating a more informal communication environment at the workplace
Refusing to comment on issues that appear to be controversial and unfair
4. A project can be segmented into which of the following?
5. Which of the following is an element that addresses elimination of waste under lean production?
Group plant loading technology
Minimized run times
Production ahead of demand
Kanban production control system
6. The Civil Rights Act of 1991 offered what for victims of unintentional discrimination?
monetary damages and jury trials
7. Active listening requires:
summarizing all areas of the performance-interview feedback discussion.
verbal communications only
summarizing only the areas of agreement
interruptions to get your point across
8. Which of the following is ISO 14000 primarily concerned with?
Continuous improvement management
9. Training that results in ______ is costly because of the cost of training (which proved to be useless) and the cost of hampered performance.
negative transfer of training
applicability of training
reinforcement of training
simulation of training
10. As a university student, your institution’s social principles and practices reflect on you, as a stakeholder, in the organization. Therefore, it is your right to question how these practices should be evaluated in relation to the social issues that the school is addressing. If your university provides job-share programs, builds a day-care facility, and only uses recycled paper, it could be said to be ________.
fulfilling its social obligation
socially image conscious
11. According to the job characteristics model, autonomy is defined as the degree to which
a job requires completion of a whole and identifiable piece of work
a job has an impact on the lives or work of other people
a job generates direct and clear information about performance
a job provides the worker freedom, independence, and discretion
12. Which of the following is considered a major process flow structure?
13. An example of control criteria that can be used in any situation is ________.
average time to process paperwork
client requests completed per hour
number of calls taken per day
14. What can affirmative action assist organizations in achieving that diversity initiatives cannot?
Maximizing workforce commitment
Correcting specific problems of the past
15. Adoration of a charismatic leader by followers can lead to
greater understanding of the company mission
difficulty in developing a successor
a competitive work environment
limiting suggestions of fixes and improvements
16. Which of the following is considered an organizational blueprint, which prescribes the quantity and time frame for when each end product will be assembled?
WBS (Work Breakdown Structure)
MRP (Material Requirements Plan)
ERP (Enterprise Resource Planning)
MPS (Master Production Schedule)
17. In performing a SWOT analysis, which of the following would be considered as a threat?
Lack of a strategic plan
Increased product demand
18. When an employee volunteers to run a canned food drive, this is an example of
organizational citizenship behavior
19. Conflicts can be resolved by withdrawing from them or suppressing them. This conflict-management technique is known as ________.
20. Sam Meyers manages a telemarketing call center. He has 20 employees working for him who are displeased with the way he yells and threatens to terminate them for what they see as small issues. Which kind of power is Sam using to get the job done?
21. In _____, workers have been fired for refusing to quit smoking, for living with someone without being married, drinking a competitor’s product, motorcycling, and other legal activities outside of work.
invasion of privacy
22. Mary arrives at her new job. Before she can begin actually doing the work, she must complete a series of activities including role playing and virtual reality interactions. What type of training method does Mary’s new employer use?
23. Which of the following is one of Dr. Eli Goldratt’s rules of production scheduling for optimized production technology?
Utilization and activation of a resource are not the same.
If you lose an hour at a bottleneck it is better than making scrap.
An hour saved at a bottleneck operation does not increase the process flow.
Do not allow bottlenecks to govern the flow of the line.
24. Deming’s PDCA (plan, do, check, and act) cycle underlies what inherent Six Sigma principle?
25.________ refers to an individual’s belief that he or she is capable of performing a task.
26.____________ is the biggest hurdle to overcome in a pay-for-performance plan.
Salary cap performance level
27. In order to make their firm a learning organization, managers should
avoid the use of cross-functional teams
reinforce interdependence and reduce boundaries
increase the degree of departmentalization
28. During the implementation of a project, which of the following should be the primary focus of a consulting firm?
People management skills
Application of the learning curve theory
The correct project software
Tools and materials availability
29. The concept that some leadership attributes will work in some situations but not in others can be described by the
leadership effectiveness theory
30. Which of the following statements is true with regard to the effectiveness of tactics?
All tactics are equally effective with regard to upward influence.
Individuals from collectivist cultures are typically more likely to use soft tactics that reflect personal power.
Soft tactics are less effective than hard tactics when used individually
The combination of a soft tactic with reasonable persuasion is more effective than a combination of two hard tactics.
1. Internal reports that review the actual impact of decisions are prepared by:
2. Horizontal analysis is also known as:
common size analysis
3. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
most common form of organization
reduced legal liability for investors
harder to transfer ownership
4. Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend per year. What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.)
5. External financing needed: Jockey Company has total assets worth $4,417,665. At year-end it will have net income of $2,771,342 and pay out 60 percent as dividends. If the firm wants no external financing, what is the growth rate it can support?
6. An unrealistic budget is more likely to result when it:
has been developed by all levels of management.
has been developed in a top down fashion.
has been developed in a bottom up fashion.
is developed with performance appraisal usages in mind.
7. Which of the following financial statements is concerned with the company at a point in time?
retained earnings statement
statement of cash flows
8. Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its dividend by $0.25 in each of the following three years. If their required rate of return if 14 percent, what is the present value of their dividends over the next four years?
9. An activity that has a direct cause-effect relationship with the resources consumed is a(n):
10. The major element in budgetary control is:
the approval of the budget by the stockholders
the valuation of inventories
the preparation of long-term plans
the comparison of actual results with planned objectives.
11. Tule Time Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the initial outlay for such a production is $1,500,000 and the appropriate discount rate is 6 percent for the cash flows, then what is the profitability index for the project?
12. How firms estimate their cost of capital: The WACC for a firm is 13.00 percent. You know that the firm’s cost of debt capital is 10 percent and the cost of equity capital is 20%. What proportion of the firm is financed with debt?
13. The most important information needed to determine if companies can pay their current obligations is the:
relationship between current assets and current liabilities
relationship between short-term and long-term liabilities
projected net income for next year
net income for this year
14. Process costing is used when:
dissimilar products are involved
production is aimed at fulfilling a specific customer order.
the production process is continuous.
costs are to be assigned to specific jobs.
15. A cost which remains constant per unit at various levels of activity is a:
16.The group of users of accounting information charged with achieving the goals of the business is its:
17. Teakap, Inc. has current assets of $1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000 and retained earnings of $1,468,347. How much long-term debt does the firm have?
18. The cash conversion cycle?
begins when the firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures.
estimates how long it takes on average for the firm to collect its outstanding accounts receivables balance.
begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales.
shows how long the firm keeps its inventory before selling it.
19. Ajax Corp. is expecting the following cash flows - $79,000, $112,000, $164,000, $84,000, and $242,000 – over the next five years. If the company’s opportunity cost is 15 percent, what is the present value of these cash flows? (Round to the nearest dollar.)
20. Jack Robbins is saving for a new car. He needs to have $21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar)
21. Which of the following presents a summary of changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period?
the statement of net worth
the statement of cash flows
the statement of working capital
the statement of retained earnings
22. M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock.
If Dynamo wishes to change its capital structure from 75 percent equity to 60 percent equity and use the debt proceeds to pay a special dividend to shareholders, how much debt should they use?
23. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time:
that has been arranged from the highest number to the lowest number.
to determine the amount and/or percentage increase or decrease that has taken place.
to determine which items are in error.
that has been arranged from the lowest number to the highest number.
24. Jayadev Athreya has started his first job. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of 45 years?
25. Turnbull Corp. had an EBIT of $247 million in the last fiscal year. Its depreciation and amortization expenses amounted to $84 million. The firm has 135 million shares outstanding and a share price of $12.80. A competing firm that is very similar to Turnbull has an enterprise value/EBITDA multiple of 5.40.
What is the enterprise value of Turnbull Corp.? Round to the nearest million dollars.
26. Firms that achieve higher growth rates without seeking external financing:
Have a low plowback ratio
are highly leveraged
have less equity and/or are able to generate high net income leading to a high ROE.
None of these
27. In a process cost system, product costs are summarized:
on job cost sheets.
when the products are sold.
after each unit is produced.
on production cost reports.
28. The convention of consistency refers to consistent use of accounting principles:
among accounting periods
throughout the accounting period
29. If a company’s weighted average cost of capital is less than the required return on equity, then the firm:
is financed with more than 50% debt
is perceived to be safe
has debt in its capital structure
30. Your firm has an equity multiplier of 2.47. What is the debt-to-equity ratio?
31. The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called:
32. Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 6.875 percent. What should the company’s bonds be priced at today? Assume annual coupon payments. (Round to the nearest dollar.)
33. Variance reports are:
internal reports for management
SEC financial reports
external financial reports
all of these
34. The break-even point is where:
contribution margin equals total fixed costs.
total sales equal total variable costs.
total sales equal total fixed costs.
total variable costs equal total fixed costs.
35. When a company assigns the costs of direct materials, direct labor, and both variable and fixed manufacturing overhead to products, that company is using:
36. Which of the following is considered a hybrid organizational form?
limited liability partnership
37. Gateway, Corp. has an inventory turnover of 5.6. What is the firm’s days’s sales in inventory?
38. The process of evaluating financial data that change under alternative courses of action is called:
contribution margin analysis
double entry analysis
39. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?
the modified internal rate of return
the profitability index
the discounted payback
the internal rate of return
1. A company that attempts to lead its industry in price and convenience by pursuing a focus on lean and efficient operations is pursuing what strategy?
2. One of the ways to change the course of a brand is to modify the product. Under product modification, ________ adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility, safety, or convenience.
3. Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed. This process of identifying the hierarchy is called ________.
4. This is designed to check systematically and continuously whether the premises on which the strategy is based are still valid
Special alert control
5. A firm must know to position its product based where on price and
6. When performing this analysis, it is good for strategic planners to consider similarities between the benefits the customers derive from the products and services that other firms offer.
7. What is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image?
Ultimate service benefit
Complete marketing benefit
Total customer benefit
Total management benefit
8. A valuable result of task environment analysis with respect to geographic, demographic, psychographic and buyer-behavior factors is called
9. The ability to meet humanity’s needs without harming future generations is now a top priority in most corporate agenda
10. Large-scale, future-oriented plans for interacting with the competitive environment to achieve the company objective refers to its
11. With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.
12. Company X's principal strength is its inbound and outbound logistics system; its relative weakness, however, is after-sales service. Its competitor, Company Y, however is often plagued with lagging shipments and an inflexible distribution setup. Company Y remains successful because it maintains a fully staffed service department and, as a result, the company is known for its dependable service. This type of analysis allows them to identify ways to build on relative strengths and avoid dependence on capabilities at which the other firm excels.
Past performance comparison
13. The strategic factor that involves the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment, as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning.
14. Leaders galvanize commitment to embrace change through clarifying strategic intent, building an organization, and
shaping organizational culture
developing a vision
developing a mission
15. How do functional tactics compare to business strategies?
Functional tactics are more focused on the general direction of the firm than business strategies.
Functional tactics are more focused on a commitment to corporate strategy than business strategies.
Functional tactics are more specific than business strategies.
Functional tactics are more long-term than business strategies.
16. Under which of the following conditions is the frequency the most important factor in media selection?
When introducing flanker brands
When going into undefined target markets
When launching infrequently purchased brands
When there is high consumer resistance to the product
17. New-to-the-world products are ________.
new product enhancements that supplement established products
low-cost products designed to obtain an edge in highly competitive markets
new products that create an entirely new market
existing products that are targeted to new geographical markets
18. BMW’s "The ultimate driving machine," American Express' "Don't leave home without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of ________.
19. Which component of a marketing audit includes major developments in income, prices, savings, and credit that affect the company?
20. Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program's chances of being successful?
Explain the rules and regulations laid out by governmental agencies to protect the environment.
Focus on the efforts and costs incurred by the company to bring these "green" products to consumers.
Emphasize benefits to the consumer rather than environmental benefits.
Demonstrate that the products will benefit both customers and the society in the long-term.
21. When diversification involves additions of a business related to the firm in terms of technology, markets or products, it involves
22. These social responsibilities are those that are voluntarily assumed by a business or organization. They include public relations activities, good citizenship, and full corporate social responsibility.
23. Which control should periodically reassess its approach to the marketplace with a good marketing audit?
24. What type of strategy consists of geographical pricing, price discounts and allowances, promotional pricing, and differentiated pricing?
25. A set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored refers to
the moral hazard problem
26. Firms using this generic strategy attempt to build customer loyalty by stressing a specific product attribute above other product qualities.
27. A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own.
28. This is an important structural decision and resultant separate activities need to be coordinated and integrated back together as a whole so the business functions effectively.
29. This is a historically popular technique through which managers create a quick overview of a company's strategic situation—it is based on achieving a sound fit between internal resources and the external situation.
Value chain analysis
30. The marketing manager needs to know the cost of the research project before approving it. During which stage of the marketing research process would such a consideration most likely take place?
Step 4 – analyzing the information
Step 5 – drafting the report
Step 1 – defining the problem
Step 2 – developing the research plan