Deck 5: Organization of the Firm

Question 1

An organizational form that is structured around basic business functions is called

A)M-form.
B)U-form.
C)a matrix.
D)a network.

Answer 1

U-form.

Question 2

The 1990s saw

A)a return to family businesses.
B)a flattening of organizations.
C)a heightening of organizations.
D)an increase in bureaucratic forms of business.

Answer 2

a flattening of organizations.

Question 3

Research seems to suggest that corporate culture

A)is unrelated to stock performance.
B)is closely related to stock performance.
C)helps determine the cost of capital.
D)is easily transferable across organizations.

Answer 3

is unrelated to stock performance.

Question 4

Which of the following are forms that organizations can take?

A)U-form.
B)M-form.
C)network form.
D)All of these choices are possible forms.

Question 5

A firm can find a competitive advantage

A)by differentiating its product.
B)by having a barrier to entry.
C)through its organizational structure.
D)all of these choices.

Question 6

Corporate culture can be a strategic asset if it

A)adds value.
B)adds value and can be duplicated.
C)adds value and cannot be duplicated.
D)can be franchised.

Question 7

The set of collectively held beliefs, values, and norms among the members of a firm that influence individual behavior is referred to as

A)network values.
B)horizontal values.
C)implicit contracts.
D)corporate culture.

Question 8

Independent firms that together can exploit economies of scale are referred to as a

A)T-form of organization.
B)M-form of organization.
C)network.
D)weak alliance (the matrix).

Question 9

In the 1990s, business organizations were

A)flattened.
B)turned inside out.
C)formed into horizontal structures.
D)all of these choices.

Question 10

Organizational structure forms evolved based on

A)new theories of management.
B)the ability of new forms to add accounting profits.
C)the ability of new forms to cover the cost of capital.
D)the ability of new forms to add value.

Question 11

Economies of scale were initially seen between

A)1800 and 1840.
B)1970 and 1980.
C)1840 and 1910.
D)none of these choices.

Question 12

Corporate cultures

A)are part of a strategic plan.
B)can limit the effectiveness of a merger.
C)arise when transactions costs are very low.
D)all of these choices.

Question 13

Organizations that survive over time

A)will never change in the future.
B)are efficient.
C)will be forced to become horizontal.
D)are inefficient.

Question 14

An organization that is structured along a set of autonomous divisions led by a corporate headquarters office is called

A)M-form.
B)U-form.
C)T-form.
D)a matrix.

Question 15

According to the text, Pepsi has a(n)

A)M-form of organization.
B)U-form of organization.
C)T-form of organization.
D)matrix.

Question 16

With economies of scale came

A)larger families.
B)simpler business forms.
C)the need for management structures beyond what a family could offer.
D)fewer economies of scope.

Question 17

Prior to 1840, most businesses were

A)family-owned.
B)corporate in structure.
C)vertically integrated.
D)collections of partnerships.

Question 18

Flat organizations tend to

A)contract in.
B)contract out.
C)contract vertically.
D)contract horizontally.

Question 19

Over time, the hierarchy of firms has tended to move from

A)upstream to downstream.
B)hierarchical to non-hierarchical.
C)lateral to parallel.
D)big to small to big again.

Question 20

Organizational structure can be a strategic asset if it

A)adds value.
B)adds value and can be duplicated.
C)adds value and cannot be duplicated.
D)can be franchised.

Question 21

Business structure has remained relatively stable over the history of American business.

Question 22

A matrix is a network of unrelated companies trying to jointly capture economies of scale.

Question 23

Supply chain management is a recent development in organizational structure.

Question 24

W.L.Gore is structured an a U-form of organization.

Question 25

A favorable corporate culture leads to returns that exceed the cost of capital.

Question 26

A matrix form of organization is equivalent to a U-form which is found in the service industry.

Question 27

Upstream and downstream refer to the degree of horizontal integration.

Question 28

The corporate form of business started to become more prevalent in the United States economy in the late 1700s.

Question 29

Corporate cultures are easily transferable between two organizations.

Question 30

Make or buy decisions affect the degree of vertical integration.

Question 31

It is essential to understand corporate cultures to make a merger successful.

Question 32

The structure of an organization is influenced by transactions costs.

Question 33

A self-managed team is still headed by a boss.

Question 34

The U-form of organization is equivalent to the matrix form.

Question 35

An M-form of organization is exploiting functional business areas.