Question 1

Jim wants to apply the rational decision-making process to a management problem he is facing. He has already recognized and defined the decision-making situation. What should he do next?
A) Select the best alternative
B) Identify alternatives
C) Evaluate alternatives
D) Implement the chosen alternative
E) Follow up and evaluate the results

Accepted Answer

After recognizing and defining the decision-making situation, the next step in the rational decision-making process is to identify alternatives. This involves brainstorming different options or solutions to the problem at hand. Once a range of alternatives has been generated, Jim can move on to evaluating them, selecting the best one, implementing it, and then following up and evaluating its results.

Question 2

When Boeing and Airbus were trying to decide how they should respond to the question of how they could increase their international capacity, they were in what stage of the rational decision-making process?
A) Select the best alternative
B) Identify alternatives
C) Evaluate alternatives
D) Implement the chosen alternative
E) Follow up and evaluate the results

Accepted Answer

The answer of When Boeing and Airbus were trying to...

Question 3

Rolex sells high-quality, high-priced watches through selected jewellery stores. This is their
A) corporate performance target.
B) long-term goal.
C) strategic goal.
D) purpose.
E) mission.

Accepted Answer

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

Question 4

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.
A) 11
B) 25
C) 41
D) 59
E) 71

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 5

Which of the following best describes a mission?
A) An objective that a business hopes and plans to achieve
B) A broad set of organizational plans for implementing decisions made for achieving organizational goals
C) The shared experiences, stories, beliefs, and norms that characterize an organization
D) An organization's statement of how it will achieve its purpose in the environment in which it conducts business
E) An organization's competitive standing in the marketplace

Accepted Answer

A mission is a statement that outlines how an organization plans to achieve its purpose in the environment in which it conducts business. It communicates the organization's strategy to stakeholders and serves as a guide for decision-making and resource allocation.

Question 6

Which of the following is correct with respect to the concepts of certainty, risk, and uncertainty?
A) The majority of managerial decisions are made under conditions of certainty.
B) In a situation of risk, the alternatives are known, but costs are simply probabilities.
C) In a situation of uncertainty, the manager knows the alternatives that are available, but not the outcomes that will result from a specific alternative.
D) There is very little difference between the conditions of risk and uncertainty because in both the outcome is unclear.
E) Under a condition of certainty, profits are guaranteed.

Accepted Answer

In a situation of risk, the alternatives are known, but the costs are simply probabilities. The decision maker can assess the likelihood of each outcome and make a decision accordingly. In contrast, under conditions of uncertainty, the manager does not know the potential outcomes of each alternative available. Certainty, as discussed in option E, is a situation in which the outcome is known with complete confidence, and therefore profits may not necessarily be guaranteed. Option A is incorrect because most decisions are made under conditions of risk or uncertainty rather than certainty. Option D is also incorrect because although the outcome may be unclear in both conditions, the level of knowledge about the alternatives and costs/probabilities differs between them.

Question 7

What does the term "escalation of commitment" mean?
A) As a project proceeds toward successful completion, managers make an increased commitment to doing a good job
B) The actions that managers take as they try to get the outcomes they desire
C) As a project proceeds, managers become increasingly committed to it even if there is evidence that it is not working out as planned
D) It refers to how much a manager is willing to gamble when making decisions
E) None of these

Accepted Answer

The term "escalation of commitment" refers to the phenomenon where managers become increasingly committed to a project even when there is evidence that it is not working out as planned. This can result in continued investment of resources (time, money, etc.) into a failing project. Option A is incorrect because the commitment is increasing even when there is evidence that the project is not working out. Option B is too broad and does not capture the specific concept of escalation of commitment. Option D is not directly related to the concept of escalation of commitment. Option E is incorrect because there is a clear definition of the term.

Question 8

Reebok wants to make a profit by manufacturing and selling athletic shoes and related merchandise. This is their
A) strategic goal.
B) long-term goal.
C) purpose.
D) short-term goal.
E) mission.

Accepted Answer

The answer of Reebok wants to make a profit by...

Question 9

When used as the means for measuring success or failure, goals are operating as
A) management tools.
B) budget standards.
C) bonus criteria.
D) performance targets.
E) motivators.

Accepted Answer

Goals are commonly used as performance targets, which allow individuals or organizations to measure and evaluate their success or failure. By setting specific goals and measuring progress against them, individuals or organizations can track their performance and make necessary adjustments to improve outcomes. While goals may also be used as management tools, budget standards, bonus criteria, or motivators, these functions are not necessarily directly tied to measuring success or failure.

Question 10

When Atco says it wants to provide products and services to the energy and resource industries, that is their
A) corporate strategy.
B) mission.
C) purpose.
D) intuition.
E) goal.

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 11

Port Metro Vancouver's successful reduction of container "dwell time" illustrates which basic purpose of goal setting?
A) Goal setting provides direction, guidance, and motivation for managers.
B) Goal setting helps firms allocate resources.
C) Goal setting helps to define corporate culture.
D) Goal setting helps managers assess performance.
E) It does none of the above.

Accepted Answer

The answer of Port Metro Vancouver's successful reduction of container...

Question 12

Beta Company has set a goal of increasing sales by 10% this year. This goal will most likely have the effect of
A) motivating managers.
B) assisting in the allocation of advertising dollars.
C) assisting in the allocation of resources.
D) providing direction for managers.
E) all of these.

Accepted Answer

Setting a sales goal of 10% increase for the year can motivate managers to work towards achieving it. This goal will also help in the allocation of advertising dollars and resources towards the methods that will help achieve this goal. Additionally, this goal provides direction for managers and the company as a whole. Therefore, all of the given choices are correct.

Question 13

Both Rolex and Timex want to sell watches at a profit. They share a common
A) purpose.
B) corporate performance target.
C) mission.
D) long-term goal.
E) strategic goal.

Accepted Answer

Both Rolex and Timex have the same purpose, which is to sell watches at a profit. A purpose is the reason why a company exists or what it wants to achieve.

Question 14

Toyota's goal to sell 200 000 vehicles in Canada in 2012 illustrated which basic purpose of goal setting?
A) Goal setting provides direction, guidance, and motivation for managers.
B) Goal setting helps firms allocate resources.
C) Goal setting helps to define corporate culture.
D) Goal setting helps managers assess performance.
E) None of the above

Accepted Answer

Toyota's goal of selling 200,000 vehicles in Canada in 2012 demonstrates the basic purpose of goal setting to provide direction, guidance, and motivation for managers. The goal sets a clear target for the company's sales team and provides a focus for their efforts to achieve this objective. It also helps to motivate employees and managers by providing a clear sense of purpose and direction.

Question 15

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
A) help assess performance.
B) help make decisions.
C) help allocate resources.
D) provide direction.
E) help define corporate culture.

Accepted Answer

The goal of becoming an industry leader in disk drive technology provides direction for the company in terms of where it wants to go and what it wants to achieve. This can guide decision-making, resource allocation, and even shape the company's corporate culture. However, it is not directly related to assessing performance.

Question 16

3M Corp.'s stated goal of earning 30 percent of its profits from sales of products less than four years old is an example of goals that
A) define corporate culture.
B) help assess performance.
C) help allocate resources.
D) provide direction.
E) help make decisions.

Accepted Answer

The stated goal of earning 30 percent of profits from sales of products less than four years old provides direction for 3M Corp. on where to focus their efforts and resources. It sets a specific target for the company to work towards in terms of innovation and product development.

Question 17

A mission statement is
A) a statement of how an organization will achieve its purpose in the environment in which it conducts its business.
B) solely for people visiting the company so they understand what the company does.
C) not necessary for smaller businesses.
D) the same as a purpose.
E) a statement developed by the board of directors to guide the business.

Accepted Answer

A mission statement defines how an organization will achieve its purpose and what it aims to do in its business environment. It acts as a guide for the company's overall strategy, decision-making, and operations. It is not just for visitors, and it is essential for businesses of all sizes to have a clear mission statement to stay focused and aligned with their goals. A mission statement may be developed by the board of directors, but it should involve input from all levels of the organization.

Question 18

What is the primary purpose of setting a goal for an organization?
A) Determining if the firm is highly leveraged
B) Making workers think in quantitative terms
C) Identifying threats and opportunities
D) Assuring successes for the firm
E) Providing guidance and direction for all managers

Accepted Answer

The primary purpose of setting a goal for an organization is to provide guidance and direction for all managers. It helps the organization to focus its efforts and resources towards achieving a common objective, which ultimately leads to the success of the firm. Additionally, setting goals can motivate employees, encourage teamwork and collaboration, and help monitor progress and performance. Other options such as determining leverage, thinking in quantitative terms, and identifying threats and opportunities may be important, but they are not the primary purpose of setting a goal.

Question 19

When Airbus decided to develop and manufacture a new jumbo jet to meet the demand for increased international travel, it was involved in what stage of the rational decision-making process?
A) Select the best alternative
B) Identify alternatives
C) Evaluate alternatives
D) Implement the chosen alternative
E) Follow up and evaluate the results

Accepted Answer

The answer of When Airbus decided to develop and manufacture...

Question 20

Marilyn is involved in making an important decision regarding the purchase of new equipment for her company's only manufacturing plant. She has just identified several alternative possibilities that will solve the problem that is facing her. What should she do next?
A) Select the best alternative
B) Identify alternatives
C) Evaluate the alternatives
D) Implement the chosen alternative
E) Follow up and evaluate the results

Accepted Answer

After identifying alternatives, the next step is to evaluate these alternatives to determine which one best addresses the problem and meets the company's needs before making a selection.

Quiz 6: Managing the Business Enterprise

Jim wants to apply the rational decision-making process to a management problem he is facing. He has already recognized and defined the decision-making situation. What should he do next?

When Boeing and Airbus were trying to decide how they should respond to the question of how they could increase their international capacity, they were in what stage of the rational decision-making process?

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

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.

Which of the following best describes a mission?

Which of the following is correct with respect to the concepts of certainty, risk, and uncertainty?

What does the term "escalation of commitment" mean?

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

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

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

Port Metro Vancouver's successful reduction of container "dwell time" illustrates which basic purpose of goal setting?

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

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

Toyota's goal to sell 200 000 vehicles in Canada in 2012 illustrated which basic purpose of goal setting?

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

3M Corp.'s stated goal of earning 30 percent of its profits from sales of products less than four years old is an example of goals that

A mission statement is

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

When Airbus decided to develop and manufacture a new jumbo jet to meet the demand for increased international travel, it was involved in what stage of the rational decision-making process?

Marilyn is involved in making an important decision regarding the purchase of new equipment for her company's only manufacturing plant. She has just identified several alternative possibilities that will solve the problem that is facing her. What should she do next?