GEB Chapter 4

A firm’s strengths that cannot be easily matched or imitated by competitors are called
A) internal audits.
B) distinctive competencies.
C) external audits.
D) interrelated properties.
E) internal properties.
B) distinctive competencies.
Who should perform an internal audit?
A) A private auditing firm
B) The organization’s accounting department
C) Representative managers and employees from throughout the firm
D) A small team of top-level managers
E) The chief executive officer
C) Representative managers and employees from throughout the firm
________ exemplifies the complexity of relationships among the functional areas of
business.
A) Government auditing
B) External auditing
C) Financial ratio analysis
D) Environmental scanning
E) Distribution strategy
C) Financial ratio analysis
The three all-encompassing internal resource categories used in the Resource-Based
View are physical resources, human resources, and
A) financial resources.
B) shareholder resources.
C) organizational resources.
D) non-renewable resources.
E) technological resources.
C) organizational resources.
Organizational resources include all of the following EXCEPT
A) employee training
B) firm structure
C) planning processes
D) information systems
E) copyrights
A) employee training
Empirical indicators are resources that are either rare, hard to imitate, or
A) expensive.
B) inexpensive.
C) easily substitutable.
D) not easily substitutable.
E) inefficient.
D) 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
A) dysfunctional behavior.
B) groupthink.
C) behavior modification.
D) organizational culture.
E) internal audit effect.
D) organizational culture.
Which of the following were NOT mentioned as an example of cultural products?
A) Rites
B) Emotions
C) Rituals
D) Sagas
E) Symbols
B) Emotions
A standardized set of behaviors used to manage anxieties is called a
A) folktale.
B) rite.
C) metaphor.
D) ritual.
E) value.
D) ritual.
What is the term for a historical narrative describing the unique accomplishments of a
group and its leaders?
A) Rite
B) Saga
C) Story
D) Myth
E) Folktale
B) Saga
What is the essential bridge between the present and the future that increases the
likelihood of achieving desired results?
A) Motivating
B) Planning
C) Controlling
D) Staffing
E) Organizing
B) Planning
All of the following are basic duties of management EXCEPT
A) staffing
B) planning
C) consolidating
D) organizing
E) motivating
C) consolidating
Which function of management includes areas such as job design, job specification, job
analysis, and unity of command?
A) Planning
B) Organizing
C) Motivating
D) Staffing
E) Controlling
B) Organizing
Which management function includes breaking tasks into jobs, combining jobs to form
departments, and delegating authority?
A) Motivating
B) Staffing
C) Organizing
D) Controlling
E) Planning
C) Organizing
________, perhaps the most important word in management, is a major component in
motivation.
A) Forecasting
B) Organizational structure
C) Recruiting
D) Management development
E) Communication
E) Communication
The first step in the controlling function of management is to
A) take corrective actions.
B) restrict the number of breaks employees take.
C) evaluate expense reports.
D) establish performance standards.
E) measure individual and organizational performance.
D) establish performance standards.
All of the following are key questions that can reveal internal strengths and weaknesses
in the management department EXCEPT
A) Is the organization’s structure appropriate?
B) Are reward and control mechanisms effective?
C) Are the organization’s products positioned well against competing products?
D) Does the firm use strategic-management concepts?
E) Do managers delegate authority well?
C) Are the organization’s products positioned well against competing products?
Opportunity analysis is one of the basic functions of
A) marketing.
B) finance/accounting.
C) computer information systems.
D) production/operations.
E) research and development.
A) marketing.
________ can reveal the demographic characteristics of an organization’s customers.
A) Customer profiling
B) Test marketing
C) Market development
D) The vision statement
E) Telemarketing
A) Customer profiling
All of the following are basic functions of marketing EXCEPT
A) value chain analysis
B) customer analysis
C) product and service planning
D) pricing
E) distribution
A) value chain analysis
Selling includes all of these marketing activities EXCEPT
A) advertising
B) dealer relations
C) customer analysis
D) publicity
E) sales promotion
C) customer analysis
What marketing function includes test marketing?
A) Selling products/services
B) Pricing
C) Customer analysis
D) Product/service planning
E) Distribution
D) Product/service planning
The Robinson-Patman Act affects a company’s
A) pricing.
B) product/service planning.
C) customer analysis.
D) marketing research.
E) distribution.
A) pricing.
Which of the following is NOT a key question that can reveal internal strengths and
weaknesses of the marketing department?
A) Does the firm have an effective sales organization?
B) Is our product quality good?
C) Are markets segmented effectively?
D) Are the firm’s products and services priced appropriately?
E) Does the firm have good liquidity?
E) 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.
A) investment
B) dividend
C) financing
D) restructuring
E) benchmark
A) investment
What category of ratios measures a firm’s ability to meet maturing short-term
obligations?
A) Profitability
B) Liquidity
C) Leverage
D) Activity
E) Growth
B) Liquidity
What category of ratios includes return on total assets and return on stockholders’ equity?
A) Leverage
B) Activity
C) Profitability
D) Growth
E) Liquidity
C) Profitability
What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry?
A) Profitability
B) Liquidity
C) Leverage
D) Activity
E) Growth
E) Growth
Which ratio would be considered an activity ratio?
A) Debt-to-equity
B) Net profit margin
C) Average collection period
D) Earnings per share
E) Current ratio
C) Average collection period
The times-interest-earned ratio would be classified as a(n)
A) activity ratio.
B) leverage ratio.
C) profitability ratio.
D) liquidity ratio.
E) growth ratio.
B) leverage ratio.
According to Roger Schroeder, which basic function within production/operations deals
with aggregate planning and scheduling?
A) Capacity
B) Inventory
C) Workforce
D) Transportation
E) Quality
A) Capacity
________ management deals with inputs, transformations, and outputs that vary across
industries and markets.
A) Marketing
B) Financial
C) Research and development
D) Production/operations
E) Information systems
D) Production/operations
In most industries, the major costs of producing a product or service are incurred within
A) marketing.
B) management.
C) research and development.
D) operations.
E) management information systems.
D) operations.
________ is a commonly used approach to determine R&D budget allocations.
A) Financing as many project proposals as possible
B) Using the percentage of sales method
C) Budgeting for R&D about what competitors spend
D) Deciding how many successful new products are needed
E) All of the above
E) All of the above
________ ties all business functions together and provides the basis for all managerial
decisions.
A) Management
B) Marketing
C) Information
D) Technology
E) Workforce
C) 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
A) the resource-based approach.
B) value chain analysis.
C) strategic cost analysis.
D) the internal factor evaluation matrix.
E) cost-benefit analysis.
B) value chain analysis.
Which of the following is the first step in developing an IFE Matrix?
A) Determining the organization’s structure
B) Summing the weighted scores for each variable
C) Identifying the organization’s strengths and weaknesses
D) Identifying the organization’s functions of business
E) Assigning a weight to each factor
C) Identifying the organization’s strengths and weaknesses
The IFE Matrix should be ________ in multidivisional firms.
A) constructed for each division
B) all-inclusive
C) constructed only for the major divisions
D) developed before the EFE Matrix
E) revised monthly
A) constructed for each division