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The optimum number of subordinates a manager can supervise is referred to as the:


A) manager-subordinate ratio.
B) chain of command.
C) employee quota.
D) span of control.

E) All of the above
F) A) and D)

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Independence Electronics prides itself as a world-class producer of components used in CD and DVD players.The outstanding performance of the production department indicates that this activity is one of the firm's:


A) fiscal responsibilities.
B) core competencies.
C) benchmark assets.
D) target competitive advantages.

E) All of the above
F) None of the above

Correct Answer

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Ben was confident that sports fans would fill the seats in his brewery restaurant after major league baseball games if they just knew about the place - after all,he offered convenience,easy walking distance,great local talent for entertainment and several fresh premium brews.He decided to join social networks such as Twitter and Facebook,and offer wireless services and lunch for afternoon customers.These are worthy strategies for reaching digital natives.

A) True
B) False

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A virtual corporation is a networked organization made up of replaceable firms that join the network and leave it as needed.

A) True
B) False

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In an inverted organization,the purpose of management is to assist and support the decisions of employees who work directly with customers.

A) True
B) False

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Competitive benchmarking rates an organization's products and operations against the industry average.

A) True
B) False

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Campbell is a middle manager for a bureaucratic organization.According to Max Weber's views on bureaucratic organizations,Campbell's function within the organization is to:


A) make key operating decisions.
B) evaluate the daily performance of first-line employees.
C) ensure the organization achieves esprit de corps.
D) implement the decisions of top management.

E) None of the above
F) B) and D)

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Departmentalizing by customer group has proven ineffective.

A) True
B) False

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Which of the following was created as a solution to the temporary nature of the matrix structure?


A) Line organizations
B) Cross-functional self-managed teams
C) Line-and-staff organizations
D) Network organizations

E) None of the above
F) C) and D)

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An organization's core competencies are those functions that the firm performs as well as or better than anyone else in the world.

A) True
B) False

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Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?


A) Leaving some decision-making power to middle management had the effect of minimizing the effort and results that management would put into the other historical principles of organization.
B) The rule making that developed from these principles created organizations that didn't respond quickly to customer needs.
C) The principles of Fayol and Weber hampered a firm's ability to determine if it was profitable.
D) Authority and responsibility quickly became unrelateD.

E) A) and D)
F) A) and B)

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An organization that consists of many layers of management is referred to as a(n) ____________ organization.


A) flat
B) wide
C) tall
D) deep

E) B) and C)
F) A) and D)

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The very best organizations have cultures that emphasize service to others,especially customers.

A) True
B) False

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_____________ refers to companies headquartered abroad who elect to bring production and manufacturing to domestic subsidiaries.


A) Outsourcing
B) Insourcing
C) Production transition
D) Production transformation

E) B) and C)
F) A) and B)

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Staff personnel perform functions such as production and sales that contribute directly to the primary goals of the organization.

A) True
B) False

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New technology such as the Internet has opened up opportunities for firms to sell to new markets.

A) True
B) False

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The purpose of a division of labor and specialization is to improve an employee's job performance.

A) True
B) False

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In a _____________ organization,specialists from different parts of the organization are brought together on a temporary basis to work on specific projects.


A) matrix
B) line
C) line-and-staff
D) centralized

E) C) and D)
F) B) and D)

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Fayol's _____________ principle states that each worker should report to one,and only one,boss.


A) division of labor
B) unity of command
C) esprit de corps
D) comparative advantage

E) A) and C)
F) B) and D)

Correct Answer

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Bull's-eye,a regional discount retailer,carefully watches and compares its operation with the operations of its closest rivals.This firm does:


A) outsourcing.
B) functional positioning.
C) core competency ranking.
D) competitive benchmarking.

E) A) and D)
F) C) and D)

Correct Answer

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