Question 1

The bureaucratic control style usually works better than the organic control style if task performance is difficult to measure.

Accepted Answer

Bureaucratic control relies on formal rules and procedures, which may not be effective when task performance is difficult to measure, as it requires clear metrics and standards. Organic control, which is more flexible and adaptive, may be better suited for such situations.

Question 2

An income statement is a summary of an organization's financial position at a given point it time, showing assets, liabilities, and owner's equity.

Accepted Answer

An income statement summarizes an organization's revenues and expenses over a period of time to show its net income or loss, not its financial position at a point in time. The statement that describes an organization's financial position (assets, liabilities, and owner's equity) at a specific point in time is the balance sheet.

Question 3

The two financial statements that provide much of the information to calculate the ratios that are used to assess an organization's financial health are the balance sheet and the income statement.

Accepted Answer

The balance sheet provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity, while the income statement shows the company's financial performance over a period, including revenues, expenses, and profits. These two statements are crucial for calculating financial ratios that assess liquidity, solvency, profitability, and efficiency.

Question 4

An income statement is a summary of an organization's financial performance over a given time interval, showing revenues, expenses, and bottom-line profit or loss.

Accepted Answer

An income statement, also known as a profit and loss statement, summarizes an organization's financial performance over a specific period, detailing revenues, expenses, and the resulting net income or loss.

Question 5

Profit margin on sales is calculated by dividing net income by total assets.

Accepted Answer

Profit margin on sales is calculated by dividing net income by total sales revenue, not total assets.

Question 6

Indicators of the relative effectiveness, or profitability, of the organization are called profitability ratios.

Accepted Answer

Profitability ratios measure a company's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics, indicating its effectiveness or profitability.

Question 7

Owner's equity ratios are indicators of a firm's ability to handle long-term debt.

Accepted Answer

Owner's equity ratios primarily measure the proportion of a company's total value that is financed or owned by the shareholders, rather than its ability to handle long-term debt.

Question 8

The total goods sold divided by the average inventory indicates how efficiently the firm is forecasting sales or ordering merchandise. This measure is an example of an activity ratio.

Accepted Answer

This measure is known as inventory turnover ratio, which is indeed an example of an activity ratio, indicating how efficiently a firm manages its inventory relative to its sales.

Question 9

Probable cause drug testing usually relies upon unannounced and unscheduled random employee drug examinations.

Accepted Answer

Probable cause drug testing is based on a reasonable belief or evidence that an employee is using drugs, not on random or unscheduled examinations.

Question 10

Since it is conceivable that impaired motor skills may be the cause of an accident, a reasonable time for a drug test would be after an accident.

Accepted Answer

Drug testing after an accident can help determine if impaired motor skills due to substance use were a contributing factor to the incident.

Question 11

One issue that surfaces in cases of undercover surveillance is the concern that management has a low regard for and little trust in its own employees.

Accepted Answer

Undercover surveillance in the workplace often raises concerns about trust because it implies that management does not have confidence in its employees' integrity or behavior, leading to the perception of low regard for them.

Question 12

Computer monitoring is a form of undercover surveillance.

Accepted Answer

Computer monitoring involves tracking computer activities, often without the knowledge of the user, which aligns with the characteristics of undercover surveillance.

Question 13

Computer monitoring is more concerned with detecting illegal activities than with measuring employee performance.

Accepted Answer

Computer monitoring is used for a variety of purposes including measuring employee performance, ensuring compliance with company policies, and protecting against unauthorized or illegal activities. It is not solely focused on detecting illegal activities.

Question 14

__________ is defined as the systematic process through which managers regulate organizational activities to make them consistent with the expectations established in plans and to help them achieve all predetermined standards of performance.

Accepted Answer

Organizational control is the process by which managers ensure that resources are obtained and used effectively and efficiently in the accomplishment of the organization's objectives. It involves setting standards, measuring actual performance, and taking corrective action. This definition aligns with the description given, making A the correct choice.

Question 15

Mary Holland is an executive vice president of Castle Entertainment. Mary's primary focus is to make sure that all of the planning, leading, and organizing that takes place at her company goes as it should. From this description, we know that Mary's primary focus is

Accepted Answer

Mary's primary focus on ensuring that planning, leading, and organizing go as they should aligns with the control function, which involves monitoring and ensuring that organizational goals are being met.

Question 16

After her promotion, Tricia Sharp was responsible for setting the standards of performance, measuring actual performance, comparing actual performance with standards, and responding to deviations. What managerial function is Tricia now responsible for?

Accepted Answer

Controlling involves setting standards, measuring actual performance, comparing it with these standards, and taking corrective action if necessary. Tricia's responsibilities align with this managerial function.

Question 17

The managerial function that helps to ensure that all other managerial functions are occurring as designed is called

Accepted Answer

Controlling is the managerial function that involves monitoring performance, comparing it with goals, and taking corrective action as needed. It ensures that the other managerial functions (planning, organizing, leading, and directing) are being carried out effectively and that the organization is on track to meet its goals.

Question 18

Which of the following is a form of control in an organization?

Accepted Answer

All of the above options (formal performance appraisal, goals, and rules) are forms of control within an organization. They are mechanisms used to guide, manage, and influence employee behavior and performance towards achieving organizational objectives.

Question 19

The process of control involves four steps: setting standards of performance, measuring actual performance, comparing actual performance with standards, and

Accepted Answer

The correct step in the process of control after comparing actual performance with standards is responding to deviations. This involves taking corrective action to address any discrepancies between what was planned and what is actually happening.

Question 20

Charles Hurwitz is the CEO of Maxxam Corporation. In his job, Mr. Hurwitz focuses on setting standards of performance, measuring actual performance, comparing actual performance with standards, and responding to deviations. Mr. Hurwitz focuses on

Accepted Answer

The activities described—setting standards of performance, measuring actual performance, comparing actual performance with standards, and responding to deviations—are all part of the controlling function of management. This function involves monitoring performance and making adjustments as necessary to achieve organizational goals.

Quiz 15: Organizational Control in a Complex Business Environment