Question 1

The mission of a company is usually set by

Accepted Answer

The board of directors is responsible for setting the mission of a company.

Question 2

Mega Computer has a goal of reducing its manufacturing costs by 15 percent over the next three years.Each of the manufacturing managers has been given tasks to reach this goal.In this case the goal

Accepted Answer

The answer of Mega Computer has a goal of reducing...

Question 3

The management of Critters Galore,a nation-wide retailer of pet supplies,has decided that its share of the market is too small and they have a target of increasing their current market share from 25 percent to 40 percent.Everyone is expected to do whatever it takes to achieve this goal.The market is very competitive and Critters Galore will need to be very aggressive.The goal

Accepted Answer

The answer of The management of Critters Galore,a nation-wide retailer...

Question 4

When used as the means for measuring success or failure,goals are operating as

Accepted Answer

Goals are commonly used as performance targets to measure success or failure in achieving specific objectives. They provide a clear direction and focus for individuals and teams to work towards, and can help align efforts towards larger organizational objectives. While goals may also serve as management tools, budget standards, bonus criteria, and motivators, their primary function in measuring success or failure is as performance targets.

Question 5

Both Rolex and Swatch want to sell watches at a profit.They share a common

Accepted Answer

Both Rolex and Swatch have the common purpose of selling watches at a profit, which is a fundamental reason for their business operations.

Question 6

Rolex sells high-quality,high-priced watches through selected jewellery stores.This is their

Accepted Answer

The answer of Rolex sells high-quality,high-priced watches through selected jewellery...

Question 7

Beta Company has set a goal of increasing sales by 10% this year.This goal will most likely have the effect of

Accepted Answer

Setting a sales growth target of 10% will have multiple effects on the company, including motivating managers to work towards achieving this goal, assisting in the allocation of advertising dollars to support the sales growth, assisting in the allocation of resources as needed to support the growth, and providing direction for managers to focus their efforts on increasing sales. Therefore, all of the options listed are valid effects of setting a sales growth target like this.

Question 8

A study of 293 Canadian office workers found that ________ percent believed that office politics was at least somewhat necessary in order to get ahead in their organization.

Accepted Answer

According to the information given in the question, 293 Canadian office workers were studied and a percentage of them believed that office politics was necessary to get ahead in their organization. The options are 11, 25, 41, 59, and 71. Since we are looking for the percentage of workers who believed that office politics was necessary, the answer must be a percentage between 0 and 100. Therefore, we can eliminate options A and B. Option C is also unlikely as it represents less than half of the surveyed workers. Option D represents just above half of the surveyed workers, which is a possibility, but the best choice is E as 71% is a higher percentage and the most likely scenario where a significant number of employees believe office politics is necessary for advancement.

Question 9

Long-term goals typically relate to time periods in the range of ________,while intermediate goals usually cover a time period of ________.

Accepted Answer

Long-term goals are generally set for 5 years or more, while intermediate goals usually cover a time period of 1 to 5 years.

Question 10

Which of the following best describes a mission?

Accepted Answer

A mission statement is an organization's statement of how it will achieve its purpose in the environment in which it conducts business. It outlines the overall goal or objective that the organization hopes to achieve. Option A is somewhat similar but not as complete as the definition of a mission statement. Option B describes strategic planning, not specifically a mission. Option C refers to organizational culture, which may or may not be related to the mission. Option E describes an organization's competitive position, which is also not synonymous with a mission.

Question 11

What does the term "escalation of commitment" mean?

Accepted Answer

Escalation of commitment refers to the phenomenon where managers continue to invest time, money, or resources into a failing project due to the amount already invested, despite evidence suggesting it may not succeed.

Question 12

If Ben and Jerry's Ice Cream has a goal of investing 2 percent of their after-tax profits in charitable contributions,that goal

Accepted Answer

The answer of If Ben and Jerry's Ice Cream has...

Question 13

What is the primary purpose of setting a goal for an organization?

Accepted Answer

The primary purpose of setting a goal for an organization is to provide guidance and direction for all managers. It allows everyone in the organization to work towards a common objective and helps to prioritize tasks and allocate resources. Without clear goals, an organization can easily become disorganized or lose focus, which can lead to inefficiencies and missed opportunities. Setting goals also helps to measure progress and identify areas for improvement.

Question 14

With respect to the concepts of "purpose" and "mission," which of the following is correct?

Accepted Answer

A purpose is the organization's reason for existing and is often expressed in a mission statement, which outlines the organization's core values and guiding principles. Option A is incorrect because a purpose is not just about how an organization behaves towards stakeholders, but also encompasses its overall reason for existence. Option B and E are incorrect because both profit-making and not-for-profit organizations can have both a purpose and a mission. Option D is incorrect because while there may be some overlap between purpose and mission, they are not the same concept.

Question 15

Reebok wants to make a profit by manufacturing and selling athletic shoes and related merchandise.This is their

Accepted Answer

The purpose of Reebok is to make a profit by manufacturing and selling athletic shoes and related merchandise. While strategic and long-term goals may be related to achieving this purpose, the purpose itself is not a specific goal. Short-term goals may also be related to sales targets or production goals, but again, the purpose is not a specific goal. The term "mission" is often used interchangeably with "purpose," so it could also be a valid answer.

Question 16

Mega Computer has decided that within the next five years it wants to become an industry leader in disk drive technology,a technology that has little existing support inside the company at this time.This goal will

Accepted Answer

The goal of becoming an industry leader in disk drive technology provides direction for the company to pursue this technology and work towards achieving this goal.

Question 17

Toyota's goal to sell 200 000 vehicles in Canada in 2020 illustrated which basic purpose of goal setting?

Accepted Answer

Setting a specific sales target provides direction, guidance, and motivation for managers to achieve that goal.

Question 18

When Atco says it wants to provide products and services to the energy and resource industries,that is their

Accepted Answer

Atco's statement about providing products and services to the energy and resource industries describes their mission or primary purpose. A corporate strategy generally refers to the specific actions and measures a company takes to achieve their mission, while a goal is a specific target or objective a company aims to achieve through their mission and strategy. Purpose is a broader term that describes why a company exists and what it hopes to accomplish. Intuition is not a relevant concept in this context.

Question 19

By looking at the sales potential for each product we can use goals to

Accepted Answer

The answer of By looking at the sales potential for...

Question 20

A mission statement is

Accepted Answer

A mission statement is a statement that outlines an organization's purpose and how it plans to achieve it in its environment. It is a crucial document that guides the organization's strategies, decision-making, and overall operation. Thus, option A is the correct choice. Option B is incorrect because a mission statement is not just for visitors; it serves as a guide for the company itself too. Option C is incorrect because the size of the business does not matter; every organization needs a mission statement. Option D is incorrect because although the purpose and mission may be similar, they are not the same. Option E is incorrect because the mission statement is typically developed by the organization's leadership team, not just the board of directors.

Quiz 6: Managing the Business Enterprise