Question 1

The first step in the planning process is determining goals. What is the next step?
A) developing a strategic mission
B) developing a comprehensive strategy
C) developing an array of tactics
D) developing an operational plan
E) developing a functioning budget

Accepted Answer

B) Planning begins when managers determine the firm's goals; next, a comprehensive strategy is developed. After that, tactical and operational plans for implementing the strategy are set.

Question 2

Carlos wants to complete his M.B.A. in three years. This is an example of what kind of goal?
A) long-term
B) intermediate
C) short-term
D) objective
E) problematic

Accepted Answer

B) Intermediate goals are set for a period of one to five years.

Question 3

When conducting a SWOT analysis of an organization, which question can help management brainstorm for the threats section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization's vision can be altered?
C) What necessary skills do the organization's employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization's bottom line?

Accepted Answer

E) This question will help management evaluate outside factors that may pose a threat to the company.

Question 4

When conducting a SWOT analysis of an organization, which question can help management brainstorm for the opportunities section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization's vision can be altered?
C) What necessary skills do the organization's employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization's bottom line?

Accepted Answer

A) This question will help management brainstorm opportunities that external constituents may offer.

Question 5

Which of the following best describes functional strategy?
A) a strategy for determining the firm's overall attitude toward growth and the way it will manage its businesses or product lines
B) a strategy at the business-unit or product-line level that focuses on improving a firm's competitive position
C) a strategy by which managers in specific areas decide how best to achieve corporate goals through productivity
D) a strategy that assists first-line managers in making day-to-day decisions about motivating employees
E) a strategy that integrates an organization's marketing goals into a cohesive whole by focusing on the ideal product mix to achieve maximum profit potential

Accepted Answer

C) At the level of functional strategy, managers in specific areas such as marketing, finance, and operations decide how best to achieve corporate goals by performing their functional activities most effectively.

Question 6

When conducting a SWOT analysis of an organization, which question can help management brainstorm for the weaknesses section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization's vision can be altered?
C) What necessary skills do the organization's employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization's bottom line?

Accepted Answer

C) This question will help management brainstorm an organization's internal weaknesses.

Question 7

Increasing sales by 4 percent in the next eight months is an example of what kind of goal?
A) tactical
B) strategic
C) short-term
D) intermediate
E) long-term

Accepted Answer

C) Short-term goals are set for a period of one year or less.

Question 8

What type of analysis focuses on external factors?
A) organizational analysis
B) governmental analysis
C) environmental analysis
D) functional analysis
E) financial analysis

Accepted Answer

C) External threats and opportunities are revealed through environmental analysis.

Question 9

The marketing manager wants to increase regional sales by 2 percent each quarter over the next year. This is an example of what kind of goal?
A) long-term
B) intermediate
C) short-term
D) strategic
E) tactical

Accepted Answer

C) Short-term goals are set for one year or less.

Question 10

Starbucks has established itself as the premier marketer of the finest coffee in the world while maintaining its uncompromising principles and continuing to grow. This statement illustrates what aspect of Starbucks' organization?
A) its strategy
B) its tactic
C) its mission
D) its diversity
E) its profitability

Accepted Answer

C) This is the mission statement for Starbucks.

Question 11

"Teach For America provides a critical source of well-trained teachers who are helping break the cycle of educational inequity. These teachers, called corps members, commit to teaching for two years in one of 39 urban and rural regions across the country, going above and beyond traditional expectations to help their students achieve at high levels. "Teach For America's 20,000 alumni are playing critical leadership roles in the effort to improve the quality of public education in low-income communities. Armed with the experience, conviction, and insight that come from leading children to fulfill their potential, our alumni are working from all sectors to shape our schools, policies, and investments in low-income communities."
What objective might Teach For America have, based on its company mission?
A) Teach For America will transition from a nonprofit to a for-profit organization in 2015.
B) Teach For America will open a food bank in low-income communities in each of its 39 regional offices.
C) Teach For America will increase the number of its alumni in leadership positions within school systems across the United States by 10 percent each year.
D) Teach For America will change the corps member service commitment to four years, versus two.
E) Teach For America will open ten new regional offices by the year 2020.

Accepted Answer

C) The mission emphasizes an importance of moving alumni toward leadership positions in public school systems throughout the United States.

Question 12

Which of the following would be classified as opportunities for an organization?
A) government regulations
B) highly unionized workers
C) new competitors
D) possible company expansion
E) economy fluctuations

Accepted Answer

D) The other factors would typically be considered threats; possible expansion of the firm is an opportunity that could possibly lead to enhanced sales, increased market share, and a stronger market image.

Question 13

When conducting a SWOT analysis of an organization, which question can help management brainstorm for the strengths section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization's vision can be altered?
C) What necessary skills do the organization's employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization's bottom line?

Accepted Answer

D) This question will help management brainstorm an organization's internal strengths.

Question 14

Which variable of SWOT analysis identifies changing consumer tastes, hostile takeover offers, and new government regulations?
A) threats
B) opportunities
C) strategies
D) internal factors
E) weaknesses

Accepted Answer

A) Organizational threats are external variables that may adversely affect the organization; they can be outlined through SWOT analysis.

Question 15

Which of the following is NOT a characteristic of a solid contingency plan?
A) contact information for an on-site crisis manager
B) information systems backup software
C) an evacuation plan
D) a prioritized list of critical operations
E) a summary of common types of emergencies

Accepted Answer

E) A summary of common types of emergencies would not be of much assistance in a crisis. However, a good contingency plan will provide all of the other information listed in anticipation of an emergency situation.

Question 16

Which of the following best describes business strategy?
A) a strategy for determining the firm's overall attitude toward growth and the way it will manage its businesses or product lines
B) a strategy at the business-unit or product-line level that focuses on improving a firm's competitive position
C) a strategy by which managers in specific areas decide how best to achieve corporate goals through productivity
D) a strategy that assists first-line managers in making day-to-day decisions about motivating employees
E) a strategy that integrates an organization's marketing goals into a cohesive whole by focusing on the ideal product mix to achieve maximum profit potential

Accepted Answer

B) Further, a strategy outlines how the business intends to meet its goals and includes the organization's responsiveness to new challenges and new needs.

Question 17

Doreen Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of what function of the management process?
A) planning
B) organizing
C) leading
D) controlling
E) budgeting

Accepted Answer

D) Controlling is the process of monitoring a firm's performance to make sure that it is meeting its goals.

Question 18

Terrell is being considered for promotion from a supervisory role to top management. He is unsure whether he is qualified for the position. He wants to ensure that he is an effective manager, and not simply having success in the workplace because of his multiple promotions in the last few years. Although he's never been a top manager, there are some things he does in his personal life other members of the management team think qualify him for the position. What personal activity does management most likely think is a good indicator of whether or not Terrell will be an effective top manager?
A) He is part of a theatrical group that gives performances to hundreds of people, showing that he is not afraid to speak in front of a crowd.
B) He juggles being a parent, working as a middle manager, and having personal hobbies, showing an ability to do well in all aspects of his life without going overboard in one or neglecting another.
C) He has many siblings, showing that he knows how to share space with a large number of people.
D) He quickly learns how to play new games by following the rules explained to him.
E) He was a member of the debate team in high school and consequently is well-versed in being able to argue both sides of an issue.

Accepted Answer

B) This scenario shows Terrell's personal skills of time-management and interpersonal skills will contribute to his being an effective manager.

Question 19

Which of the following is the best example of unrelated diversification?
A) Ford Motor Company merging with General Motors
B) Northwest Airlines merging with Procter & Gamble
C) McDonald's merging with Burger King
D) Tootsie Roll merging with Hershey
E) Bath and Body Works merging with The Body Store

Accepted Answer

B) Northwest Airlines provides air travel for the public, whereas Procter & Gamble manufactures consumer goods.

Question 20

CFO and controller are titles associated with what type of manager?
A) financial
B) information
C) human resource
D) marketing
E) operations

Accepted Answer

A) Nearly every company has financial managers to plan and oversee its accounting functions and financial resources.

Quiz 5: Business Management

The first step in the planning process is determining goals. What is the next step?

Carlos wants to complete his M.B.A. in three years. This is an example of what kind of goal?

When conducting a SWOT analysis of an organization, which question can help management brainstorm for the threats section of the analysis?

When conducting a SWOT analysis of an organization, which question can help management brainstorm for the opportunities section of the analysis?

Which of the following best describes functional strategy?

When conducting a SWOT analysis of an organization, which question can help management brainstorm for the weaknesses section of the analysis?

Increasing sales by 4 percent in the next eight months is an example of what kind of goal?

What type of analysis focuses on external factors?

The marketing manager wants to increase regional sales by 2 percent each quarter over the next year. This is an example of what kind of goal?

Starbucks has established itself as the premier marketer of the finest coffee in the world while maintaining its uncompromising principles and continuing to grow. This statement illustrates what aspect of Starbucks' organization?

Which of the following would be classified as opportunities for an organization?

When conducting a SWOT analysis of an organization, which question can help management brainstorm for the strengths section of the analysis?

Which variable of SWOT analysis identifies changing consumer tastes, hostile takeover offers, and new government regulations?

Which of the following is NOT a characteristic of a solid contingency plan?

Which of the following best describes business strategy?

Doreen Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of what function of the management process?

Which of the following is the best example of unrelated diversification?

CFO and controller are titles associated with what type of manager?