Deck 6: The Internal Audit

Question 1

Who should perform an internal audit?

A)A private auditing firm
B)The organization's accounting department
C)Representative managers and employees from throughout the firm
D)A small team of top-level managers
E)The chief executive officer

Answer 1

C

Question 2

Which of the following are NOT mentioned as an example of cultural products?

A)Rites
B)Emotions
C)Rituals
D)Sagas
E)Symbols

Answer 2

B

Question 3

A resource is valuable if it is rare,hard to imitate,or

A)expensive.
B)inexpensive.
C)easily substitutable.
D)not easily substitutable.
E)inefficient.

Answer 3

D

Question 4

________ exemplifies the complexity of relationships among the functional areas of business.

A)Government auditing
B)External auditing
C)Financial ratio analysis
D)Environmental scanning
E)Distribution strategy

Question 5

Successful strategy formulation generally rests upon the ability of an organization to sell some product or service.

Question 6

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration,and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive,think,and feel is called

A)dysfunctional behavior.
B)groupthink.
C)behavior modification.
D)organizational culture.
E)internal audit effect.

Question 7

The process of performing an internal audit,compared to the external audit,provides more opportunity for participants to understand how their jobs,departments and divisions fit into the whole organization.

Question 8

According to William King,a task force of managers from different units of the organization should be charged with determining the 20 most important strengths and weaknesses that should influence the future of the organization.

Question 9

Proponents of the resource-based view argue that external factors are more important than internal factors for a firm in achieving and sustaining competitive advantage.

Question 10

Explain the resource-based view and its relation to strategic management.

Question 11

Organizational resources include all of the following EXCEPT

A)employee training.
B)firm structure.
C)planning processes.
D)information systems.
E)copyrights.

Question 12

A standardized set of behaviors used to manage anxieties is called a

A)folktale.
B)rite.
C)metaphor.
D)ritual.
E)value.

Question 13

What is the term for a historical narrative describing the unique accomplishments of a group and its leaders?

A)Rite
B)Saga
C)Story
D)Myth
E)Folktale

Question 14

The three all-encompassing internal resource categories used in the resource-based view are physical resources,human resources,and

A)financial resources.
B)shareholder resources.
C)organizational resources.
D)non-renewable resources.
E)technological resources.

Question 15

The basic premise of the research-based view is that the mix,type,amount,and nature of a firm's internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage.

Question 16

For a resource to be valuable,it must be either rare,hard to imitate,or not easily substitutable.

Question 17

Any object,act,event,quality,or relation used to convey meaning is known as a

A)myth.
B)rite.
C)value.
D)symbol.
E)metaphor.

Question 18

Life-directing attitudes that serve as behavioral guidelines are called

A)values.
B)rites.
C)beliefs.
D)metaphors.
E)legends.

Question 19

Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated by competitors.

Question 20

A firm's strengths that cannot be easily matched or imitated by competitors are called

A)internal audits.
B)distinctive competencies.
C)external audits.
D)interrelated properties.
E)internal properties.

Question 21

Which management function includes breaking tasks into jobs,combining jobs to form departments,and delegating authority?

A)Motivating
B)Staffing
C)Organizing
D)Controlling
E)Planning

Question 22

What is the essential bridge between the present and the future that increases the likelihood of achieving desired results?

A)Motivating
B)Planning
C)Controlling
D)Staffing
E)Organizing

Question 23

Linkages between a firm's culture and strategies often determine success.

Question 24

Which function of management is concerned with span of control and chain of command?

A)Planning
B)Organizing
C)Controlling
D)Staffing
E)Motivating

Question 25

Which function of management includes areas such as job design,job specifications,job analysis,and unity of command?

A)Planning
B)Organizing
C)Motivating
D)Staffing
E)Controlling

Question 26

Synergy

A)is the 2 + 2 = 5 effect.
B)can result in powerful competitive advantages.
C)can be developed by an organization through planning.
D)exists when everyone pulls together as a team that knows what it wants to achieve.
E)all of the above

Question 27

At Google the culture is very rigid,while in contrast the culture at Proctor & Gamble is very informal.

Question 28

While interesting,organizational culture does not significantly affect business decisions.

Question 29

A ritual is a standardized set of behaviors used to manage anxieties.

Question 30

The subtle,elusive and largely unconscious forces that shape the workplace are captured by the organizational culture.

Question 31

Which of the following is the process of influencing people to accomplish specific objectives?

A)Staffing
B)Motivating
C)Planning
D)Controlling
E)Organizing

Question 32

All of the following are basic activities of management EXCEPT

A)staffing.
B)planning.
C)consolidating.
D)organizing.
E)motivating.

Question 33

An organization's culture compares to an individual's personality in the sense that no two organizations have the same culture and no two individuals have the same personality.

Question 34

Staffing involves all of these activities EXCEPT

A)recruiting employees.
B)rewarding employees.
C)analyzing customers.
D)managing union relations.
E)training and developing employees.

Question 35

Metaphors are handed-down narratives of some wonderful event that are based on history but which have been embellished with fictional detail.

Question 36

Which of the following does the text call an up-front investment in success?

A)Planning
B)Organizing
C)Motivating
D)Staffing
E)Controlling

Question 37

Define cultural products and give six examples of them.

Question 38

Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations?

A)Planning
B)Organizing
C)Motivating
D)Staffing
E)Controlling

Question 39

Metaphors are

A)several rites connected together.
B)shorthand of words used to capture a vision or to reinforce old or new values.
C)narratives based on true events.
D)fictional stories.
E)any objects,acts,events,qualities,or relations used to convey meaning.

Question 40

Cultural products include values,beliefs,stories,and language.

Question 41

Distribution includes

A)customer analysis.
B)pricing.
C)warehousing.
D)advertising.
E)test marketing.

Question 42

Identify the five basic functions of management,and describe each function.

Question 43

Organizing is the cornerstone of effective strategy formulation.

Question 44

The management function of organizing is included in human resource management.

Question 45

Which of the following is NOT a key question that can reveal internal strengths and weaknesses regarding a firm's marketing function?

A)Does the firm have an effective sales organization?
B)Has the firm's market share been increasing?
C)Are markets segmented effectively?
D)Are the firm's products and services priced appropriately?
E)Does the firm have good liquidity?

Question 46

There are seven basic functions of marketing: customer analysis,selling products and services,product and service planning,pricing,distribution,marketing research,and opportunity analysis.

Question 47

Motivation can explain why some people work hard and others do not.

Question 48

All of the following are basic functions of marketing EXCEPT

A)value chain analysis.
B)customer analysis.
C)product and service planning.
D)pricing.
E)distribution.

Question 49

The purpose of organizing is to achieve coordinated effort by defining task and authority relationships.

Question 50

A form of customer analysis is administering customer surveys.

Question 51

Selling includes all of these marketing activities EXCEPT

A)advertising.
B)dealer relations.
C)customer analysis.
D)publicity.
E)sales promotion.

Question 52

________ can reveal the demographic characteristics of an organization's customers.

A)Customer profiling
B)Test marketing
C)Market development
D)The vision statement
E)Telemarketing

Question 53

What marketing function includes test marketing?

A)Selling products and services
B)Pricing
C)Customer analysis
D)Product and service planning
E)Distribution

Question 54

The controlling function of management is especially important for effective strategy evaluation.

Question 55

Describe the controlling function of management.Include the four basic steps that comprise this function in your description.

Question 56

The only certain thing about the future of any organization is change.

Question 57

The Robinson-Patman Act affects a company's

A)pricing.
B)product/service planning.
C)customer analysis.
D)marketing research.
E)distribution.

Question 58

Allocating resources is one of the five basic activities (functions)performed by managers.

Question 59

The controlling function of management is synonymous with strategy formulation.

Question 60

Pricing is one of the basic functions of

A)marketing.
B)finance/accounting.
C)management information systems.
D)production/operations.
E)research and development.

Question 61

Chief marketing officers now spend more than 50 percent of their budgets on technology to manage activities like online marketing and social media.

Question 62

Distribution becomes especially important when a firm is striving to implement a product development or diversification.

Question 63

Marketing research is the systematic gathering,recording and analyzing,of data about problems relating to the marketing of goods and services.

Question 64

The ________ decision is the allocation and reallocation of capital and resources to projects,products,assets,and divisions of an organization.

A)investment
B)dividend
C)financing
D)restructuring
E)benchmark

Question 65

Discuss how technology has affected advertising and other marketing activities.

Question 66

The times-interest-earned ratio would be classified as a(n)

A)activity ratio.
B)leverage ratio.
C)profitability ratio.
D)liquidity ratio.
E)growth ratio.

Question 67

What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry?

A)Profitability
B)Liquidity
C)Leverage
D)Revenue Growth
E)Growth

Question 68

Which ratio is calculated by dividing profits before interest and taxes by total interest charges?

A)Inventory turnover
B)Fixed assets turnover
C)Total assets turnover
D)Debt-to-equity ratio
E)Times-interest-earned ratio

Question 69

What are the seven basic functions of marketing?

Question 70

If total fixed costs are $10,000,variable costs per unit are $5,and the price per unit is $15,what is the breakeven quantity?

A)500
B)667
C)1,000
D)2,000
E)5,000

Question 71

According to James Van Horne the functions of finance & accounting comprise three decisions: the investment decision,the financing decision,and the dividend decision.

Question 72

What category of ratios measures a firm's ability to meet its short-term obligations?

A)Profitability
B)Liquidity
C)Leverage
D)Activity
E)Growth

Question 73

In the area of marketing,a cost/benefit analysis is an appraisal of the costs,benefits,and risks associated with marketing decisions.

Question 74

Most producers today sell their goods directly to consumers.

Question 75

Which of the three finance and accounting decisions involves determining the best capital structure for the firm?

A)Investment
B)Dividend
C)Financing
D)Capital budgeting
E)Implementation

Question 76

During the 2015 Super Bowl,a 30-second advertisement cost over $4 million.

Question 77

Five major stakeholders that affect pricing decisions are consumers,governments,suppliers,distributors,and competitors.

Question 78

Test marketing is used more frequently by industrial companies than consumer goods companies.

Question 79

What category of ratios includes return on total assets and return on stockholders' equity?

A)Leverage
B)Activity
C)Profitability
D)Growth
E)Liquidity

Question 80

Which ratio would be considered an activity ratio?

A)Debt-to-equity
B)Net profit margin
C)Average collection period
D)Earnings per share
E)Current ratio