Question 1

Control helps managers build a competitive advantage.

Accepted Answer

To understand the importance of organizational control,consider how it helps managers obtain superior efficiency,quality,responsiveness to customers,and innovation-the four building blocks of competitive advantage.

Question 2

When you divide the organization's current assets by its current liabilities,the result is known as the times-covered ratio of the organization.

Accepted Answer

The current ratio (current assets divided by current liabilities)tells managers whether they have the resources available to meet the claims of short-term creditors.

Question 3

Days sales outstanding is profit ratio that reveals how efficiently managers are collecting revenue from customers to pay expenses.

Accepted Answer

Days sales outstanding,an activity ratio,reveals how efficiently managers are collecting revenue from customers to pay expenses.

Question 4

Control helps managers respond more effectively to customers.

Accepted Answer

To understand the importance of organizational control,consider how it helps managers obtain superior efficiency,quality,responsiveness to customers,and innovation-the four building blocks of competitive advantage.

Question 5

In practice,managers can only measure the actual outputs that result from the behavior of their members.

Accepted Answer

In practice,managers can measure or evaluate two things: the actual outputs that result from the behavior of their members and the behaviors themselves.

Question 6

The first step in the control process is to evaluate the results in terms of the performance standards.

Accepted Answer

At step 1 in the control process managers decide on the standards of performance,goals,or targets that they will use in the future to evaluate performance.

Question 7

When an organization and its members perform nonroutine activities,it is more challenging for managers to measure outputs or behavior.

Accepted Answer

When an organization and its members perform complex,nonroutine activities that are intrinsically hard to measure,it is more challenging for managers to measure outputs or behavior.

Question 8

The process by which managers monitor and regulate the organization in order to determine if the organization is operating efficiently and effectively is known as controlling.

Accepted Answer

Controlling is the process by which managers monitor and regulate the organization in order to determine if the organization is operating efficiently and effectively.

Question 9

Operating margin is calculated by dividing a company's operating profit by sales revenues.

Accepted Answer

Operating margin is calculated by dividing a company's operating profit (the amount it has left after all the costs of making the product and running the business have been deducted)by sales revenues.

Question 10

Managers monitor and evaluate the organization's strategy to see if it is working using the controlling function.

Accepted Answer

In controlling,managers monitor and evaluate whether the organization's strategy and structure are working as intended,how they could be improved,and how they might be changed if they are not working.

Question 11

The "objectivity" of financial measures of performance is a main reason why managers use these ratios to measure the efficiency and effectiveness of their organizations.

Accepted Answer

The objectivity of financial measures of performance is the reason why so many managers use them to assess the efficiency and effectiveness of their organizations.

Question 12

Control is simply just reacting to events after they have occurred.

Accepted Answer

Control is more than just reacting to events after they have occurred.

Question 13

Profit ratios measure how well managers have protected organizational resources to be able to meet short-term obligations.

Accepted Answer

Liquidity ratios measure how well managers have protected organizational resources to be able to meet short-term obligations.

Question 14

At the input stage,managers use feedback control to anticipate problems before they arise so problems do not occur later during the conversion process.

Accepted Answer

At the input stage,managers use feedforward control to anticipate problems before they arise so problems do not occur later during the conversion process.

Question 15

Establishing targets and designing measurement systems are much more difficult for managers because the high level of uncertainty in the organizational environment means managers rarely know what might happen in the future.

Accepted Answer

Establishing targets and designing measurement systems are much more difficult for managers because the high level of uncertainty in the organizational environment means managers rarely know what might happen in the future.

Question 16

A control system must be rigid and consistent in order to be effective.

Accepted Answer

An effective control system is flexible enough to allow managers to respond as necessary to unexpected events.

Question 17

Top managers are most concerned with overall organizational performance and use various production measures to evaluate it.

Accepted Answer

Top managers are most concerned with overall organizational performance and use various financial measures to evaluate it.

Question 18

An organization is said to be highly leveraged if it uses more debt than equity to finance its ongoing operations.

Accepted Answer

An organization is highly leveraged if it uses more debt than equity.

Question 19

Control is concerned with keeping employees motivated.

Accepted Answer

Control is concerned with keeping employees motivated,focused on the important problems confronting the organization,and working together to make the changes that will help an organization improve its performance over time.

Question 20

Behaviors are usually easier to measure than outputs because they are intangible and subjective.

Accepted Answer

Outputs are usually easier to measure than behaviors because they are more tangible and objective.

Quiz 11: Organizational Control and Change

Control helps managers build a competitive advantage.

When you divide the organization's current assets by its current liabilities,the result is known as the times-covered ratio of the organization.

Days sales outstanding is profit ratio that reveals how efficiently managers are collecting revenue from customers to pay expenses.

Control helps managers respond more effectively to customers.

In practice,managers can only measure the actual outputs that result from the behavior of their members.

The first step in the control process is to evaluate the results in terms of the performance standards.

When an organization and its members perform nonroutine activities,it is more challenging for managers to measure outputs or behavior.

The process by which managers monitor and regulate the organization in order to determine if the organization is operating efficiently and effectively is known as controlling.

Operating margin is calculated by dividing a company's operating profit by sales revenues.

Managers monitor and evaluate the organization's strategy to see if it is working using the controlling function.

The "objectivity" of financial measures of performance is a main reason why managers use these ratios to measure the efficiency and effectiveness of their organizations.

Control is simply just reacting to events after they have occurred.

Profit ratios measure how well managers have protected organizational resources to be able to meet short-term obligations.

At the input stage,managers use feedback control to anticipate problems before they arise so problems do not occur later during the conversion process.

Establishing targets and designing measurement systems are much more difficult for managers because the high level of uncertainty in the organizational environment means managers rarely know what might happen in the future.

A control system must be rigid and consistent in order to be effective.

Top managers are most concerned with overall organizational performance and use various production measures to evaluate it.

An organization is said to be highly leveraged if it uses more debt than equity to finance its ongoing operations.

Control is concerned with keeping employees motivated.

Behaviors are usually easier to measure than outputs because they are intangible and subjective.