Ch. 4 Multiple Choice

A firm’s strengths that cannot be easily matched or imitated by competitors are called
distinctive competencies
Who should perform an internal audit?
Representative managers and employees from throughout the firm
________ exemplifies the complexity of relationships among the functional areas of business.
Financial ratio analysis
The three all-encompassing internal resource categories used in the Resource-Based View are physical resources, human resources, and
organizational resources.
Organizational resources include all of the following EXCEPT
employee training
Empirical indicators are resources that are either rare, hard to imitate, or
not easily substitutable.
A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel is called
organizational culture.
Which of the following were NOT mentioned as an example of cultural products?
Emotions
A standardized set of behaviors used to manage anxieties is called a
ritual
What is the term for a historical narrative describing the unique accomplishments of a group and its leaders?
Saga
Life-directing attitudes that serve as behavioral guidelines are called
values
Any object, act, event, quality, or relation used to convey meaning is known as a
symbol
Metaphors are
shorthand of words used to capture a vision or to reinforce old or new values.
What is the essential bridge between the present and the future that increases the likelihood of achieving desired results?
Planning
All of the following are basic duties of management EXCEPT
consolidating
Which of the following does the text call an up-front investment in success?
planning
Which function of management includes areas such as job design, job specification, job analysis, and unity of command?
organizing
Who does a planning horizon of two to five years apply to?
top-level management
Synergy
all of the above
Which management function includes breaking tasks into jobs, combining jobs to form departments, and delegating authority?
organizing
Which function of management is concerned with span of control and chain of command?
organizing
Which of the following is the process of influencing people to accomplish specific objectives?
motivating
________, perhaps the most important word in management, is a major component in motivation.
communication
Staffing involves all of these activities EXCEPT
customer analysis
Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations?
Controlling
The first step in the controlling function of management is to
establish performance standards.
All of the following are key questions that can reveal internal strengths and weaknesses in the management department EXCEPT
Are the organization’s products positioned well against competing products?
Opportunity analysis is one of the basic functions of
marketing
________ can reveal the demographic characteristics of an organization’s customers.
customer profiling
All of the following are basic functions of marketing EXCEPT
value chain analysis
Selling includes all of these marketing activities EXCEPT
customer analysis
One aspect of ads in a recession is that they
take more direct aim at competitors.
What marketing function includes test marketing?
Product/service planning
The Robinson-Patman Act affects a company’s
pricing methods
Distribution includes
warehousing
Which of the following is NOT a key question that can reveal internal strengths and weaknesses of the marketing department?
Does the firm have good liquidity?
The ________ decision is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization.
investment
Which of the three finance/accounting decisions concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital?
Financing
What category of ratios measures a firm’s ability to meet maturing short-term obligations?
Liquidity
What category of ratios includes return on total assets and return on stockholders’ equity?
profitability
What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry?
Growth
Which ratio would be considered an activity ratio?
average collection period
Which ratio is calculated by dividing profits before interest and taxes by total interest charges?
Times-interest-earned ratio
The times-interest-earned ratio would be classified as a(n)
leverage ratio.
According to Roger Schroeder, which basic function within production/operations deals with aggregate planning and scheduling?
Transportation
________ management deals with inputs, transformations, and outputs that vary across industries and markets.
Production/operations
In most industries, the major costs of producing a product or service are incurred within
operations
Where is the largest seaport, in terms of ship container traffic processed annually?
Singapore
________ is a commonly used approach to determine R&D budget allocations.
All of the above
________ ties all business functions together and provides the basis for all managerial decisions.
Information
An effective information management system ________ information in such a way that it answers important operating and strategic questions.
all of the above
________ become(s) ________ only when evaluated, filtered, condensed, analyzed, and organized for a specific purpose, problem, individual, or time.
Data; information
The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called
value chain analysis.
The initial step to implementing value chain analysis is
dividing a firm’s operations into specific activities or business processes.
Which of the following is the first step in developing an IFE Matrix?
Identifying the organization’s strengths and weaknesses
The IFE Matrix should be ________ in multidivisional firms.
constructed for each division