Question 1

________ is a measure of an organization's ability to meet its current debt obligations.
A)Profitability
B)Liquidity
C)Activity
D)Leverage

Accepted Answer

The answer of ________ is a measure of an organization's...

Question 2

Direct supervision of employees is a form of ________ control.
A)concurrent
B)ineffective
C)feedback
D)feedforward

Accepted Answer

Direct supervision is a type of concurrent control because it helps to monitor and adjust ongoing processes as they happen. It involves observing and providing feedback to employees in real-time, which helps to ensure that work is being done according to the organization's standards and expectations.

Question 3

When a budget is used for controlling, it provides ________ against which resource consumption can be compared.
A)quantitative standards
B)qualitative standards
C)flexible standards
D)nonnumerical standards

Accepted Answer

Quantitative standards are numerical benchmarks or targets against which actual performance can be measured and compared. A budget provides quantitative standards that allow for the comparison of actual resource consumption to the planned amounts in the budget. This helps in controlling and identifying variances between what was planned and what actually occurred.

Question 4

When feedback control shows that planning goals and actual performance were dramatically different, the most likely conclusion is that ________.
A)planning was not on target
B)performance measurements were unreliable
C)planning was on target
D)goals do not need to be changed

Accepted Answer

If feedback control shows a significant difference between planning goals and actual performance, then it is likely that planning was not on target. It suggests that the goals set were either unrealistic or not properly aligned with the resources and capabilities available.

Question 5

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent.This is an example of ________.
A)using a budget for planning
B)using data to confirm a budget
C)justifying expenses with a budget
D)using a budget for monitoring and controlling

Accepted Answer

This is an example of using a budget for monitoring and controlling, as the company has identified that their payments to freelancers have exceeded the budget by 25 percent. They can now take corrective actions to bring the expenses back in line with the budget.

Question 6

________ is a measure of how readily a company can use its assets to generate profits.
A)Profitability
B)Leverage
C)Liquidity
D)Activity

Accepted Answer

Profitability is the measure of how easily a company can use its assets to generate profits, indicating the efficiency in using its resources to make money.

Question 7

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent.Which of the following is the most reasonable action for the company to take?
A)revise the budget
B)fire the people who were responsible for the expenses
C)ignore the expenses as an aberration
D)see what the expenses were for

Accepted Answer

Before taking any action, it is important to understand what the expenses were for. Perhaps the freelancers were hired for a one-time project or there were unexpected needs for their services. If the expenses were justified, the company may want to revise the budget or find other ways to accommodate the increase. If the expenses were not necessary or were caused by overspending, then the company may need to take corrective action, such as reevaluating its hiring practices or finding more cost-effective solutions. Firing people should not be the first response and ignoring the expenses is not a responsible approach.

Question 8

A basketball coach showing players how to position themselves on the court during practice is carrying out ________, a form of concurrent control.
A)unstructured supervision
B)direct supervision
C)indirect supervision
D)feedback supervision

Accepted Answer

Direct supervision involves actively monitoring and guiding employees' work activities in real-time to ensure that they are aligned with organizational goals. In this scenario, the basketball coach is directly supervising the players by demonstrating and instructing them on how to position themselves on the court during practice.

Question 9

Managers exert financial control on an organization using ________ analysis.
A)activity
B)productivity
C)ratio and budget
D)productivity and resource

Accepted Answer

Ratio and budget analysis are the most common methods used by managers to exert financial control over an organization. Ratio analysis involves the use of financial ratios to evaluate a company's financial performance and identify areas for improvement. Budget analysis involves comparing actual results to budgeted expectations to identify variances and take corrective action. Activity and productivity analysis focus on operational efficiency, while productivity and resource analysis primarily focus on resource allocation and utilization.

Question 10

A household that cuts back on supermarket spending after going overbudget on its food budget is using the budget as a(n)________.
A)planning tool
B)controlling tool
C)organizing tool
D)leading tool

Accepted Answer

A controlling tool is used to ensure that actual performance matches planned performance. In this case, the household is using the budget as a tool to control their supermarket spending after going overbudget.

Question 11

________ is a measure of an organization's ability to meet its current debt obligations.
A)Leverage
B)Activity
C)Liquidity
D)Profitability

Accepted Answer

Liquidity refers to an organization's ability to meet its short-term debts, including accounts payable and other obligations due within the next 12 months. A high level of liquidity indicates that an organization has sufficient cash or liquid assets to pay its debts as they become due.

Question 12

When a budget is formulated, it is being used as a(n)________ tool.
A)organizing
B)controlling
C)planning
D)leadership

Accepted Answer

A budget is formulated to plan how a company will allocate its resources and achieve its goals. Budgets are used as planning tools to guide decision-making and ensure that a company is on track to meet its targets. While budgets can also be used for organizing and controlling, the primary purpose is to plan. Leadership is not a relevant choice for this question.

Question 13

Which kind of control takes place after the actual work has been carried out?
A)feedback
B)forward
C)feedforward
D)concurrent

Accepted Answer

Feedback control takes place after the actual work has been carried out. It involves evaluating the outcomes of the work and making adjustments as needed. Feedback control helps to ensure that the work meets the desired standards and goals.

Question 14

An advantage of feedback control is that it improves ________.
A)motivation
B)productivity
C)groupthink
D)employee-employee relations

Accepted Answer

The answer of An advantage of feedback control is that...

Question 15

A company looks at its expenses and finds that its electricity costs have increased, exceeding the budget by 20 percent.Which of the following would be most likely to require immediate action on the part of the company?
A)Overall costs for electricity have gone up by 25 percent.
B)Overall utility costs have gone up by 15 percent.
C)Overall costs for electricity have gone down by 5 percent.
D)Overall utility costs have stayed steady.

Accepted Answer

The answer of A company looks at its expenses and...

Question 16

________ is a measure of an organization's ability to meet its current debt obligations.
A)Profitability
B)Activity
C)Leverage
D)Liquidity

Accepted Answer

The answer of ________ is a measure of an organization's...

Question 17

A fast-food restaurant is querying prospective customers about the features they would like to see in a new panini sandwich.What kind of control is being used?
A)concurrent control
B)feedback control
C)feedforward control
D)anticipation control

Accepted Answer

Feedforward control is being used in this situation because the fast-food restaurant is trying to anticipate customer needs and preferences in order to create a new product that meets those needs. This type of control involves gathering information and using it to adjust processes or products before they are completed, rather than after they have been implemented or delivered (which is feedback control).

Question 18

One advantage of feedback control over other forms of control is that it lets managers focus on ________.
A)what is about to take place
B)how on target their planning efforts were
C)how effective their organizing efforts were
D)the task as it is being carried out

Accepted Answer

Feedback control allows managers to assess the effectiveness of their planning efforts by comparing actual results with planned objectives, enabling them to make necessary adjustments.

Question 19

An action show producer has a read-through of a half-written show in which actors, writers, producers, and the director are free to make comments and changes before the show is filmed.What kind of control is being used?
A)feedback control
B)concurrent control
C)spontaneous control
D)feedforward control

Accepted Answer

The read-through stage is a classic example of feedforward control, as it allows actors, writers, and other stakeholders to provide input before the show is filmed. This helps to identify potential issues or areas of improvement in advance, which can then be addressed before the show goes live. Feedback control, on the other hand, is focused on analyzing performance data after an event has occurred, while concurrent control involves making adjustments in real-time during the event. Spontaneous control is not a recognized management term.

Question 20

Which kind of control takes place while the actual work is carried out?
A)feedback
B)concurrent
C)reverse
D)feedforward

Accepted Answer

Concurrent control takes place while the actual work is being carried out. This type of control involves monitoring and adjusting ongoing activities to ensure they are on track to meet goals and objectives. Feedback control occurs after the work is completed, while feedforward control occurs before work begins, and reverse control is not a commonly used term in management control.

Quiz 14: Foundations of Control

________ is a measure of an organization's ability to meet its current debt obligations.

Direct supervision of employees is a form of ________ control.

When a budget is used for controlling, it provides ________ against which resource consumption can be compared.

When feedback control shows that planning goals and actual performance were dramatically different, the most likely conclusion is that ________.

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent.This is an example of ________.

________ is a measure of how readily a company can use its assets to generate profits.

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent.Which of the following is the most reasonable action for the company to take?

A basketball coach showing players how to position themselves on the court during practice is carrying out ________, a form of concurrent control.

Managers exert financial control on an organization using ________ analysis.

A household that cuts back on supermarket spending after going overbudget on its food budget is using the budget as a(n) ________.

________ is a measure of an organization's ability to meet its current debt obligations.

When a budget is formulated, it is being used as a(n) ________ tool.

Which kind of control takes place after the actual work has been carried out?

An advantage of feedback control is that it improves ________.

A company looks at its expenses and finds that its electricity costs have increased, exceeding the budget by 20 percent.Which of the following would be most likely to require immediate action on the part of the company?

________ is a measure of an organization's ability to meet its current debt obligations.

A fast-food restaurant is querying prospective customers about the features they would like to see in a new panini sandwich.What kind of control is being used?

One advantage of feedback control over other forms of control is that it lets managers focus on ________.

An action show producer has a read-through of a half-written show in which actors, writers, producers, and the director are free to make comments and changes before the show is filmed.What kind of control is being used?

Which kind of control takes place while the actual work is carried out?