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Practice Test 4 Chap8 No Key

Intro to Business administration (Trường Đại học Quốc tế, Đại học Quốc gia Thành phố
Hồ Chí Minh)

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1. Dividing tasks into smaller jobs is called:

A. job
enrichment.
B. job
specialization.
C. departmentalizati
on.
D. division of
authority.

2. Job specialization is known to:

A. minimize delegated authority and
responsibility.
B. improve job
performance.
C. create work teams and improve resource
allocation.
D. establish
procedures.

3. The proven success of job specialization lies in the fact that:

A. it leads to
groupthink.
B. it avoids the pitfalls of division of labor, where workers become removed from
thinking conceptually about the business.
C. it is a detractor to others who are thinking about entering your industry
because it successfully creates barriers to entry.
D. it adds efficiency to the business's operation by identifying tasks that some do
better than others.

4. As Brett prepares to open his new business, he has identified the tasks that need
to be accomplished and has assigned employees to each task. This illustrates:
A. management
departmentalization.
B. division of
labor.
C. specialization of
priorities.
D. mass production
economies.

5. The concept of ____________ suggests that as a firm produces more, the average
cost of goods produced goes down.
A. natural
growth
B. survival of the
fittest
C. cost
enhancement
D. economies of
scale

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6. Henri Fayol and Max Weber are best known for their contributions to:
A. production
theory.
B. marketing
theory.
C. organization
theory.
D. finance
theory.

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7. Fayol's _____________ principle states that each worker should report to one, and
only one, boss.
A. division of
labor
B. unity of
command
C. esprit de
corps
D. comparative
advantage

8. Fayol's ____________ principle says that tasks should be divided into areas of
specialization.
A. departmentalizat
ion
B. comparative
advantage
C. division of
labor
D. centralizati
on

9. __________ believed that managers were trustworthy and companies would do well
if employees simply did what they were told.
A. John
Keynes
B. Adam
Smith
C. Peter
Drucker
D. Max
Weber

10. Max Weber used the term ________ to describe middle managers whose job was to
implement the orders of top management.
A. manageme
nt
B. autocra
ts
C. staff
personnel
D. bureaucra
ts

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11. A(n) ________________ is a visual device which shows relationships among people
and divides the organization's work.
A. organization
chart
B. Venn
diagram
C. corporate
tree
D. Gantt
chart

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12. In Weber's view of a bureaucratic organization, the organization demands:

A. a spirit of pride and loyalty among the
workers.
B. cross-functional
teams.
C. clearly established rules and guidelines that to be precisely
followed.
D. self-managed
teams.

13. The line of authority that moves from the top of a hierarchy to the lowest level is
called the:
A. chain of
logic.
B. chain of
command.
C. organizational
design.
D. delegation of contingent
authority.

14. A(n) __________ consists of one person at the top of the organization and many
levels of managers who are responsible to that person.
A. hierarc
hy
B. oligarch
y
C. inverted
organization
D. informal
organization

15. A(n) __________ is used by an organization to show who is accountable for the
completion of specific work and who reports to whom.
A. balance
sheet
B. Venn
diagram
C. stakeholder
outline
D. organization
chart

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16. One advantage of a bureaucratic organization is that:

A. it is very responsive to the wants and needs of
customers.
B. there are very few layers of
management.
C. it encourages cooperation among different departments within the
organization.
D. employees know they are expected to follow the rules and
regulations.

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17. Economies of scale:

A. are available to small firms but not to large firms due to management
inefficiencies.
B. are achieved when a firm reduces its average cost of production as it
produces more.
C. can be avoided by purchasing supplies and raw materials in large
quantities.
D. help explain the success of small
businesses.

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18. When Brian started his auto mechanic shop, his business plan included a(n)
_______________ that showed the relationships among employees in his organization
and the lines of authority and responsibility.
A. business view
map
B. department
categorization
C. organization
chart
D. operating matrix
grid

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19. Fairview Community College is a multi-district college with four campuses. Each
campus has one president, two vice presidents, five deans, 12 department chairs,
over 100 faculty members, and several persons in support roles. The presidents
from each campus report to four vice chancellors and the vice chancellors report
to the chancellor. It is clear that Fairview has a well-defined ___________.
A. channel of academic
culture
B. chain of
command
C. responsibility
environment
D. bureaucratic
reallocation

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20. In a(n) _____________ organization, decision-making authority is concentrated at the

top level of management.
A. bottom-
up
B. decentraliz
ed
C. inverte
d
D. centraliz
ed

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21. _______________ means that decision-making authority is delegated to lower-level

managers and employees.
A. Uniformity of
authority
B. Decentralized
authority
C. Specification of
authority
D. Standardized
authority

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22. The optimum number of subordinates a manager can supervise is referred to as

the:
A. manager-subordinate
ratio.
B. chain of
command.
C. employee
quota.
D. span of
control.

23. Due to more emphasis on empowerment and more talented and better-educated
lower-level management, span of control in organizations has _________.
A. increase
d
B. decrease
d
C. become an obsolete term in organization
design
D. led to tall
organizations

24. The ________ an organization's structure, the ________ the span of control.
A. flatter;
wider
B. flatter;
narrower
C. taller;
wider
D. taller;
flatter

25. An organization with only a few layers of management is known as a(n):

A. tall
organization.
B. flat
organization.
C. leveraged
organization.
D. coordinated
organization.

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26. ________ refers to the process of dividing organizational functions (sales,

production, accounting/bookkeeping) into separate units.
A. Coordinati
on
B. A chain of
command
C. Empowerme
nt
D. Departmentalizat
ion

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27. The traditional technique used to departmentalize an organization is by:

A. functio
n.
B. customer
group.
C. geographic
area.
D. production
process.

28. Which of the following is considered to be a disadvantage of functional

departmentalization?
A. There may be a lack of communication among the different
departments.
B. Employees must develop skills in
depth.
C. The company must achieve economies of
scale.
D. Top management has to direct and control department
activities.

29. Which of the following is considered to be an advantage of functional

departmentalization?
A. Employees begin to identify with their department and its goals rather than
with the goals of the entire organization.
B. People in the same department tend to think very
differently.
C. Departments are isolated from one
another.
D. Employee skills can be developed in
depth.

30. Within its production department, Sooner Manufacturing has shift leaders,
supervisors, assistant plant managers, plant managers, product group managers,
assistant division managers, division managers, an assistant vice president for
production, and a vice president in charge of production. Given its multiple-layer
management structure, Sooner Manufacturing is an example of a(n) ____________
organization.
A. tal
l
B. wid
e
C. cross-
functional
D. decentraliz
ed

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31. Greenwave Garden Centers is a national chain of discount gardening stores. The
top management realizes that different regions of the U.S. have very different
climates and soil conditions, so they give regional managers a great deal of
freedom to decide exactly what types of plants, fertilizers, and other items to stock
and how to best market these products. Greenwave is an example of a
_______________ organization.
A. bureaucrat
ic
B. top
down
C. free
form
D. decentraliz
ed

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32. HipHop Music Company assigns workers to departments based on similar skills.
Currently, the company has a marketing department, a production department, a
finance department, and a human resources department. This suggests that
HipHop departmentalizes by:
A. proces
s.
B. functio
n.
C. user
group.
D. traditio
n.

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33. Lockdown Industries produces a variety of anti-crime and safety products such as
burglar alarms, smoke detectors, surveillance cameras, and specialty locks.
Lockdown sells to households, businesses, and government agencies. They have
found that each market requires a different marketing strategy. Lockdown would
probably benefit from departmentalization by:
A. functio
n.
B. proces
s.
C. customer
type.
D. market
opportunities.

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34. As the head of the engineering department for her company, Jody works with her
team on complex and challenging projects. The level of detail in this work requires
Jody to spend a significant amount of time with each team member, providing
advice and support. Due to the complexity and time involvement of each project,
Jody has a(n) ________ span of control.
A. wid
e
B. narro
w
C. unlimit
ed
D. function
al

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35. Vaughn Studios organizes its operations by activity, such as production, marketing,
accounting, and finance. Vaughn utilizes _____________ departmentalization in order
to maximize their efficiency.
A. produ
ct
B. custom
er
C. function
al
D. standardiz
ed

36. Springfield National Bank organizes its loan operations based on the market
served, such as consumer, small business, and nonprofit organizations.
Departmentalization based on ________ allows Springfield to better serve borrowers
with different needs.
A. functio
n
B. geograp
hy
C. proces
s
D. customer
group

37. JayLo Corporation has experienced rapid growth during its five years of existence.
While still relatively small, JayLo is now big enough that Jessa, the firm's CEO, has
decided to organize the firm into functional departments. Jessa can likely expect
which of the following to occur?
A. Quick company response to a change in the business
environment
B. Excellent communications between different
departments
C. Increase in scope of the performance of
functions
D. Opportunities for employees to develop their skills
in depth

38. Management at Hottie Potatee, a nationwide potato bar chain, believes that its
customers value a predictable and consistent level of service and quality. When
customers stop at one of its potato bar chain restaurants anywhere in the United
States, they should know what to expect in terms of menu, price and quality. In
order to maintain this consistency, Hottie Potatee adopted a(n) ______ structure.
A. centralized
authority
B. decentralized
authority
C. hybrid
authority
D. origination
authority

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39. Employees who perform functions that advise and assist line personnel are known
as:
A. middle
managers.
B. empowered
workers.
C. secondary
employees.
D. staff
personnel.

40. Which of the organization models follows all of Fayol's traditional management
rules?
A. Line
organization
B. Line-and-staff
organization
C. Cross-functional
team
D. Matri
x

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