Question 1

A firm's management usually has three levels except

Accepted Answer

The three levels of management are typically top, middle, and supervisory (also known as front-line or first-line) management. Technical expertise is not a level of management.

Question 2

One of the services provided by Northwest Lawn Service is quarterly weed and feed treatments. Because of the possible danger of chemical spills, Northwest should develop a(n)

Accepted Answer

A contingency plan is a plan that addresses potential risks and outlines procedures for dealing with them. Given the possible danger of chemical spills, it is important for Northwest to have a contingency plan in place to minimize the risk of harm to people and the environment in case of an accident. A marketing plan, public relations plan, or emergency plan may also be important, but they are not as directly relevant to addressing the risk of chemical spills.

Question 3

The perception of marketplace needs, and the ways a firm can satisfy them, is the basis for an organization's

Accepted Answer

The perception of marketplace needs and the ways a firm can satisfy them is the basis for creating a vision, which is a statement that outlines the long-term goals and aspirations of an organization. It provides direction and purpose, shapes strategy, and guides decision-making.

Question 4

Developing a company's __________ can be one of the most complex and difficult aspects of strategic planning.

Accepted Answer

The mission statement is a foundational element that defines the company's purpose and primary objectives, making it a complex and critical part of strategic planning.

Question 5

Under the provisions of the Sarbanes-Oxley Act, for example, CEOs and CFOs must monitor the performance of the firm's accounting staff more closely. Which management function applies here?

Accepted Answer

Controlling. The Sarbanes-Oxley Act imposes requirements on CEOs and CFOs to closely monitor the financial reporting of their firms. This falls under the controlling function of management, which involves monitoring and regulating the activities of the organization to ensure that they align with the strategic goals of the firm.

Question 6

How does planning assist the firm?

Accepted Answer

Planning helps businesses avoid mistakes and seize opportunities by setting clear goals and outlining steps to achieve them, thus providing a roadmap for decision-making and resource allocation.

Question 7

Which type of planning has the most long-range view?

Accepted Answer

Strategic planning is focused on the long-term goals and objectives of an organization spanning five to ten years or more. This type of planning involves a high level of analysis and reflects the vision and mission of the organization. Tactical planning aims to implement the strategies formulated in the strategic plan and typically covers a period of one to three years. Operational planning details the day-to-day management of resources and activities to accomplish short-term objectives. Contingency planning involves preparing for unexpected events or emergencies.

Question 8

_______ are internal to a firm; _______ are external factors.

Accepted Answer

Strengths and weaknesses are internal factors, while opportunities and threats are external factors in a SWOT analysis.

Question 9

Competitive differentiation:

Accepted Answer

Competitive differentiation refers to the unique combination of abilities and approaches that set a company apart from its competitors. This can include factors such as product quality, customer service, or branding. It is not intended to eliminate competition or encourage price-fixing, and may actually lead to lower costs if the company is able to offer something that its competitors cannot replicate.

Question 10

Why is vision important for an organization?

Accepted Answer

Vision helps an organization to focus its efforts and differentiate itself from its competitors. A clear vision provides a sense of direction, purpose, and inspiration to the organization, which can help it to achieve its goals and objectives. By having a clear vision, an organization can prioritize its activities, make informed decisions, and ensure that everyone is working towards a common goal. Vision also helps the organization to communicate its values and aspirations to its stakeholders.

Question 11

This planning activity below involves two components: business continuation and public communication.

Accepted Answer

This planning activity involves preparing for unexpected events that could disrupt normal business operations and communicating to the public about the situation. This falls under the category of contingency planning, which aims to minimize the impact of a crisis and ensure that essential business functions can continue.

Question 12

Which managerial function involves blending human and material resources through a formal structure of tasks and authority?

Accepted Answer

Organizing involves blending human and material resources through a formal structure of tasks and authority. Planning involves determining goals and developing strategies to achieve them. Directing involves leading and motivating employees to accomplish organizational objectives. Controlling involves monitoring performance and taking corrective action when necessary.

Question 13

__________set guideposts by which managers define the organization's desired performance in such areas as sales, customer service, growth, and employee satisfaction.

Accepted Answer

Objectives are specific set guideposts that managers define to achieve the organization's desired performance in areas like sales, customer service, growth, and employee satisfaction. Annual plans and monthly goals may include objectives, but they are not specifically designed for this purpose. Performance reviews are assessments of employee performance, not company performance.

Question 14

A frequently used tool that helps assess the firm's current position in the marketplace is called:

Accepted Answer

A SWOT analysis is a tool often used to assess a company's current position in the marketplace. It evaluates a company's strengths, weaknesses, opportunities, and threats, which can help determine the company's strategic direction.

Question 15

The ethical tone that a top management team establishes can reap monetary rewards only.

Accepted Answer

While establishing an ethical tone can certainly benefit a company's financial performance, its impact goes beyond just monetary rewards. Ethical behavior can also help with building trust and reputation, attracting and retaining talent, and creating a positive work environment. Additionally, promoting ethical behavior is simply the right thing to do, regardless of financial outcomes.

Question 16

The process of looking forward to future events and conditions, and deciding on the courses of action for achieving organizational goals, is which one of the four basic functions of management?

Accepted Answer

The process described in the question is planning, which is one of the four basic functions of management. Organizing is the process of arranging resources and tasks to achieve the planned goals, directing is the process of leading and motivating employees to achieve those goals, and controlling is the process of monitoring progress and making adjustments as necessary.

Question 17

Taking an ethical stand can sometimes impact profits negatively.

Accepted Answer

If a company takes an ethical stand that goes against the interests of its customers or shareholders, it may lead to a decrease in profits in the short-term. However, in the long-term, taking an ethical stand can result in increased customer loyalty and brand reputation, ultimately leading to sustainable profits.

Question 18

Strategic planning determines the primary objectives of a business organization and requires the action of allocating _________.

Accepted Answer

Strategic planning involves allocating resources such as time, money, and equipment to achieve the primary objectives of the business organization. While people and projects are important, they are often determined based on the resources available to the organization.

Question 19

What is management?

Accepted Answer

Management involves utilizing a variety of resources, including people, to achieve organizational objectives. It goes beyond just supervising employees or making decisions and controlling costs, as it involves the overall process of achieving goals and objectives for an organization. Reporting successes and failures to investors is a task that may fall under management, but it is not the definition of management itself.

Question 20

Which of the following is not one of the four basic functions of management?

Accepted Answer

The answer of Which of the following is not one...

Quiz 7: Management, Leadership, and the Internal Organization