Question 1

Car makers design and produce new model cars much more quickly now than they did in the past.This is an example of
A)effective leadership.
B)decreased cycle time.
C)increased employee morale.
D)valued diversity.
E)low-cost production.

Accepted Answer

The fact that car makers are able to design and produce new models quickly implies that there has been a decrease in the time it takes to complete the production cycle. This can be attributed to advancements in technology and production processes that allow for greater efficiency and faster turnaround times.

Question 2

Arthur Andersen's (the accounting firm that audited Enron's finances) failure to catch problems at Enron
A)may have been motivated by future high-revenue consulting services with Enron.
B)was due to Andersen's inability to hire good talent.
C)probably was based on restrictive accounting regulations that limit access to information.
D)was proven to be part of a larger white-collar crime ring.
E)stemmed from Andersen's interest in Enron's failure.

Accepted Answer

Arthur Andersen may have overlooked issues at Enron due to a conflict of interest, as they were motivated by the prospect of future high-revenue consulting services with Enron.

Question 3

General Mills combines grains and other ingredients to make breakfast cereals.General Mills is an example of a(n)
A)manufacturing organization.
B)biotechnology firm.
C)information technology firm.
D)service organization.
E)hybrid organization.

Accepted Answer

General Mills is a manufacturing organization because it produces tangible goods, in this case, breakfast cereals, by combining raw materials and ingredients.

Question 4

Which of the following statements about information technology is not true?
A)It has resulted in leaner organizations.
B)Provides more flexible operations.
C)Technology increases the financial position of a company.
D)Technology has increased collaboration among employees.
E)Technology has improved management processes.

Accepted Answer

Technology does not inherently increase the financial position of a company; it depends on how effectively it is utilized and managed.

Question 5

A form of business that transforms resources into an intangible output and creates time or place utility for its customers is called a(n)
A)manufacturing organization.
B)biotechnology firm.
C)information technology firm.
D)service organization.
E)hybrid organization.

Accepted Answer

A service organization is a form of business that transforms resources into an intangible output and creates time or place utility for its customers. This can include businesses such as hotels, restaurants, consulting firms, and many others that provide services to their customers.

Question 6

In 2008, the volume of international trade in current dollars was more than 50 times greater than the amount in 1960.

Accepted Answer

The volume of international trade in current dollars increased from $127 billion in 1960 to $6.6 trillion in 2008, an increase of more than 50 times.

Question 7

The downside of information technology includes all of the following except
A)it has resulted in less personal communication.
B)it has increased a sense of urgency vis-à-vis decision making.
C)it has increased ethical decision making for managers.
D)it has resulted in less down time for managers.
E)All of these are reasons.

Accepted Answer

Information technology has not inherently increased ethical decision making for managers; rather, it has presented new ethical challenges.

Question 8

A knowledge worker's career path may run parallel to a management career path.The benefit of this path for the worker is
A)the chance to take on substantial management responsibilities.
B)more frequent training in management tasks.
C)less highly specialized training.
D)compensation that is equivalent to that available to management.
E)freedom from specialized technical work.

Accepted Answer

Knowledge workers who follow a career path parallel to management often have compensation packages that are equivalent to those in management positions, recognizing the value of their specialized skills and contributions.

Question 9

A form of business that combines and transforms resources into tangible outcomes that are then sold to others is called a(n)
A)manufacturing organization.
B)biotechnology firm.
C)information technology firm.
D)service organization.
E)hybrid organization.

Accepted Answer

A manufacturing organization transforms raw materials or components into finished goods that can be sold to customers. This typically involves a combination of labor, machinery, equipment, and other resources. Examples include factories that produce cars, furniture, clothing, and other physical products. Biotechnology and information technology firms may also involve manufacturing components, but they are typically focused on developing and producing specialized products or services rather than traditional manufacturing processes. Service organizations, on the other hand, provide intangible goods or services to customers, such as consulting, healthcare, or entertainment. A hybrid organization may incorporate elements of both manufacturing and service provision, but the primary focus is on the specific products or services being offered.

Question 10

Examples of organizational functions to outsource include all of the following except
A)the organization's payroll function.
B)the organization's human resource training program.
C)the organization's corporate governance program.
D)the organization's facility maintenance program.
E)the organization's food service facility.

Accepted Answer

Corporate governance is a core function that involves strategic decision-making and oversight, which is typically kept in-house to maintain control and ensure alignment with the organization's goals and values.

Question 11

The duty of the board of directors of a public corporation is to
A)audit the company's financial statements for accuracy.
B)recommend new products and services.
C)control the day-to-day operations of the firm.
D)protect the company from harsh overseas competition and lower labor costs.
E)ensure decisions by senior managers are in the best interests of the shareholders.

Accepted Answer

The duty of the board of directors of a public corporation is to ensure that decisions made by senior managers are in the best interests of the shareholders. They also have a responsibility to provide oversight and guidance to ensure the long-term success of the company. This means they do not audit financial statements (that's the role of external auditors), recommend new products and services (that's the role of product development teams), or control day-to-day operations (that's the role of senior management). While protecting the company from competition and lower labor costs may be a consideration, it is not the primary duty of the board of directors.

Question 12

Which of the following statements about knowledge workers is not true?
A)Knowledge workers include computer scientists.
B)Knowledge workers require highly specialized training.
C)Compensation is specially tailored for the knowledge worker.
D)Knowledge workers do not add value to the organization.
E)Knowledge workers are video game developers.

Accepted Answer

Knowledge workers add significant value to an organization through their expertise, problem-solving skills, and ability to innovate and improve processes.

Question 13

Which of the following statements about small-scale contemporary ethical concerns is not true?
A)It involves executive compensation.
B)A concern for working conditions in foreign factories.
C)Individual rights to privacy.
D)A concern for pricing policies of companies.
E)The pressures to balance profits against costs.

Accepted Answer

The answer of Which of the following statements about small-scale...

Question 14

In the past, Karson Photography Studios directly hired and managed its own custodial staff.Now, Karson contracts this work to a cleaning company.This is an example of
A)corporate governance.
B)offshoring.
C)outsourcing.
D)nearshoring.
E)insourcing.

Accepted Answer

This is an example of outsourcing, which is when a company contracts work to an external provider instead of handling it in-house.

Question 15

Which of the following is not a benefit of valuing diversity?
A)Access to more perspectives on a problem
B)Fresh perspectives
C)Less interpersonal conflict
D)Greater homogeneity
E)Richer ideas

Accepted Answer

Greater homogeneity is not a benefit of valuing diversity; in fact, valuing diversity typically leads to greater heterogeneity, which can enhance creativity and innovation.

Question 16

An ice cream maker requires approximately two months from the time a new flavor is decided on in the corporate board room to the time it is produced and available to consumers in stores.This time is called
A)competitive advantage time.
B)information technology time.
C)cycle time.
D)production time.
E)made-to-order time.

Accepted Answer

The time period mentioned in the question, from deciding on a new flavor to making it available to consumers, is known as cycle time.

Question 17

Not paying attention to diversity can be costly to organizations in all of the following ways except
A)it can decrease turnover.
B)it can lower productivity.
C)it can block minority involvement in decision making.
D)it can increase tensions among workers.
E)it can increase lawsuits.

Accepted Answer

Not paying attention to diversity typically increases turnover, as employees may leave due to a non-inclusive environment. Therefore, it does not decrease turnover.

Question 18

One way to address privacy concerns on the Internet is to
A)keep all information collected confidential.
B)publicly display any information collected by the company.
C)post a privacy policy on the company's Web site.
D)avoid collecting any private information.
E)share collected information only with respectable firms.

Accepted Answer

Posting a privacy policy on the company's website informs users about what data is collected, how it is used, and how it is protected, addressing privacy concerns transparently.

Question 19

Which of the following statements about technology is not true?
A)Technology is a major driver for organizational change.
B)It has widespread effects on the behavior of people in the organization.
C)Technology provides a competitive advantage
D)It combines and transforms resources into outcomes.
E)It is causing shift toward a service-based economy.

Accepted Answer

Technology does not combine and transform resources into outcomes.

Question 20

In a blatant display of unethical conduct, Enron's
A)managers forced employees to work in deplorable conditions.
B)employees stole information from the company and sold it to competitors.
C)administrators withheld products and services from needed customers.
D)public reports concealed many of its partnerships and obligations with other companies.
E)"blew the whistle" on competitors who were engaged in equally unethical practices.

Accepted Answer

Enron's unethical conduct involved concealing its financial partnerships and obligations in its public reports, misleading investors and regulators about the company's financial health.

Quiz 2: The Changing Environment of Organizations

Car makers design and produce new model cars much more quickly now than they did in the past.This is an example of

Arthur Andersen's (the accounting firm that audited Enron's finances) failure to catch problems at Enron

General Mills combines grains and other ingredients to make breakfast cereals.General Mills is an example of a(n)

Which of the following statements about information technology is not true?

A form of business that transforms resources into an intangible output and creates time or place utility for its customers is called a(n)

In 2008, the volume of international trade in current dollars was more than 50 times greater than the amount in 1960.

The downside of information technology includes all of the following except

A knowledge worker's career path may run parallel to a management career path.The benefit of this path for the worker is

A form of business that combines and transforms resources into tangible outcomes that are then sold to others is called a(n)

Examples of organizational functions to outsource include all of the following except

The duty of the board of directors of a public corporation is to

Which of the following statements about knowledge workers is not true?

Which of the following statements about small-scale contemporary ethical concerns is not true?

In the past, Karson Photography Studios directly hired and managed its own custodial staff.Now, Karson contracts this work to a cleaning company.This is an example of

Which of the following is not a benefit of valuing diversity?

An ice cream maker requires approximately two months from the time a new flavor is decided on in the corporate board room to the time it is produced and available to consumers in stores.This time is called

Not paying attention to diversity can be costly to organizations in all of the following ways except

One way to address privacy concerns on the Internet is to

Which of the following statements about technology is not true?

In a blatant display of unethical conduct, Enron's