Deck 4: Planning and Organizing

Question 1

In order to be effective, a business plan should always be in writing.

Answer 1

True

Question 2

The top managers in a business are involved in planning, but first-level managers such as supervisors are not.

Answer 2

False

Question 3

Effective planning is less important to the success of a business than other management functions, such as organizing, staffing, leading, and controlling.

Answer 3

False

Question 4

Operational planning is short-term planning that identifies specific activities for each area of the business.

Question 5

The results of strategic planning are goals and strategies that guide the entire business.

Question 6

SWOT analysis involves both internal and external investigation.

Question 7

Most of the operational planning in a business is the responsibility of middle-level managers and supervisors.

Question 8

A mission statement flows out of a broad, long-term, and often inspirational vision.

Question 9

Goals are the results a business expects to achieve.

Question 10

Goals should be stated in broad, nonspecific language to make them easier to reach.

Question 11

Typically, goals should not be communicated to employees, because it will result in too much pressure to meet the goals.

Question 12

Schedules are valuable in planning for the most effective use of capital.

Question 13

An example of a schedule is the assignment of employees to specific tasks in a department and the approximate time it will take to complete each task.

Question 14

Once standards are set in a department, they should not be revised.

Question 15

Procedures can be developed to describe how a policy should be implemented.

Question 16

Goals keep the business focused on where it wants to be in the future and the results it expects to achieve.

Question 17

An organization chart is a visual device that lists the policies and procedures of a business.

Question 18

The three major elements of effective organizing are the division of work, the facilities and working conditions, and the employees.

Question 19

Unity of command requires that no employee have more than one supervisor at a time.

Question 20

Work assignments and relationships in a matrix organization are clear but temporary.

Question 21

Which of the following is a benefit that managers receive from planning?

A) Provides guidance for making decisions.
B) Helps to determine if progress is being made.
C) Helps managers communicate and coordinate activities.
D) All of the responses.

Question 22

Strategic planning

A) is short-term planning
B) determines how work will be done and who will do it
C) provides broad goals and direction for the entire business
D) is a short, specific statement of the purpose and direction of the business

Question 23

Staff advice is usually illustrated on an organization chart with

A) broken lines
B) curved lines
C) dots and dashes
D) small icons

Question 24

Which of the following is not an example of an operational plan?

A) Setting monthly production levels.
B) Planning inventory levels.
C) Developing a department budget.
D) Revising the mission statement for the business.

Question 25

To be effective, goals must be

A) general
B) achievable
C) independent from each other
D) all of the responses

Question 26

A widely used financial planning tool is a

A) budget
B) policy
C) standard
D) goal

Question 27

To ensure that the quality of work is acceptable, businesses develop

A) organization charts
B) goals
C) standards
D) schedules

Question 28

The benefits of having policies to guide decisions is that

A) there will never be problems
B) decisions will be consistent
C) managers will not have to involve employees in decisions
D) none of the responses

Question 29

A list of steps to be followed for performing certain work is the

A) process
B) procedure
C) pace
D) plan

Question 30

The management function responsible for arranging resources to complete work is

A) planning
B) organizing
C) leading
D) controlling

Question 31

Which of the following is not a benefit of an organization chart?

A) It shows to whom each employee reports.
B) It indicates lines of promotion.
C) It communicates policies and procedures.
D) It shows the departments that make up the business.

Question 32

When a new business first begins to organize activities into units, it should

A) create many small units
B) put all activities into one large unit
C) group activities into a few natural divisions
D) prepare unit work schedules

Question 33

The obligation of an employee to accept responsibility for the outcomes of assigned tasks is called

A) accountability
B) authority
C) empowerment
D) span of control

Question 34

Authority in an organization is delegated

A) from top to bottom
B) from one department to another
C) from employees to customers
D) from one manager to another but never from a manager to an employee

Question 35

All authority can be traced in a direct line from the top to the bottom in

A) a line organization
B) a team organization
C) a matrix organization
D) all of the responses

Question 36

The obligation to do an assigned task is called

A) authority
B) accountability
C) responsibility
D) productivity

Question 37

If an employee regularly receives instructions from more than one manager, there is a problem with

A) span of control
B) unity of command
C) policies and procedures
D) standards

Question 38

The organization structure that is efficient but with many layers of management is the

A) line organization
B) line-and-staff organization
C) matrix organization
D) all of the responses

Question 39

Which is characteristic of a traditional work team?

A) one or two broad tasks
B) team leader controls routine tasks
C) group decision making
D) effectiveness based on team performance

Question 40

Traditionally, businesses have used

A) decentralized organization
B) matrix organization
C) centralized organization
D) flattened organization

Question 41

Match each item with the correct statement below.

-A broad, long-term, and often inspirational view of a company's reason for existing.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 42

Match each item with the correct statement below.

-A business which is divided into smaller operating units, and managers who head the units have almost total responsibility and authority for operations.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 43

Match each item with the correct statement below.

-A team in which members together are responsible for the work assigned to the team.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 44

Match each item with the correct statement below.

-A written document that describes the nature of the business, its goals and objectives, and how they will be achieved.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 45

Match each item with the correct statement below.

-An organization with fewer levels of management than traditional structures.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 46

Match each item with the correct statement below.

-Authority given to individual employees to make decisions and solve problems they encounter on their jobs with the resources available to them.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 47

Match each item with the correct statement below.

-Business structure in which all authority and responsibility can be traced in a direct line from the top executive down to the lowest employee level.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 48

Match each item with the correct statement below.

-Business structure that divides employees into permanent work teams.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 49

Match each item with the correct statement below.

-Determining how plans can be accomplished most effectively and arranging resources to complete work.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision

Question 50

Match each item with the correct statement below.

-The addition of staff specialists to a line organization.

A)business plan
B)centralized organization
C)decentralized organization
D)Empowerment
E)flattened organization
F)line organization
G)line-and-staff organization
H)matrix organization
I)mission
J)organizing
K)responsibility
L)self-directed work team
M)team organization
N)Vision