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A virtual corporation is a networked organization made up of replaceable firms that join the network and leave it as needed.

A) True
B) False

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Top management at Topdown,Inc.wants to encourage communication between different departments and prevent employees from becoming narrow specialists.The best way to accomplish these goals is to departmentalize Topdown's organization by function.

A) True
B) False

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John has just taken a job in the marketing department with the Shelling Company.After just a few days on the job,John has learned that the company has many layers of management,and seems to have a rule to cover almost every situation.These conditions suggest that the Shelling Company is a(n) :


A) decentralized organization.
B) oligopolistic organization.
C) bureaucratic organization.
D) cross-functional organization.

E) None of the above
F) All of the above

Correct Answer

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Employees who perform functions that advise and assist line personnel are known as:


A) empowered workers.
B) secondary employees.
C) middle managers.
D) staff personnel.

E) C) and D)
F) B) and C)

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Benchmarking rates an organization's products and operations against the industry average.

A) True
B) False

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The process of creating individual departments to do specialized tasks is called departmentalization.

A) True
B) False

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Tamika works for a pharmaceutical company that services hospitals,doctors and consumers.Her company should departmentalize by which of the following ways?


A) product
B) customer group
C) function
D) process

E) B) and C)
F) A) and D)

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A recent trend has been for businesses to eliminate whole layers of management.

A) True
B) False

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Cardinal Foods is a wholesaler serving grocery stores.High tech communications allows Cardinal to work closely with its suppliers and customers in real time.Networking allows these organizations to operate more efficiently.

A) True
B) False

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In an inverted organization,the purpose of management is to assist and support first-line employees,not boss them around.

A) True
B) False

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Campbell is a middle manager for a bureaucratic organization.According to Max Weber's views on bureaucratic organizations,Campbell's function within the organization is to:


A) make key operating decisions.
B) ensure the organization achieves esprit de corps.
C) develop the rules and procedures needed to implement the decisions of top management.
D) evaluate the daily performance of first-line employees.

E) A) and B)
F) A) and C)

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Departmentalization by function allows employees an opportunity to develop their skills.

A) True
B) False

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To be successful in today's highly competitive market a business needs to:


A) produce products that utilized the highest possible capacity of the production facilities.
B) focus on customers and give them what they want.
C) ensure they are using their production facilities as efficiently as possible.
D) empower their employees.

E) A) and B)
F) C) and D)

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The span of control for a manager:


A) is no longer a relevant issue in this day of computerized offices.
B) varies somewhat from manager to manager,but most managers operate best with a span of control of about 9 employees.
C) depends on a number of factors,and can vary from one manager to another.
D) should never exceed 7 subordinates.

E) A) and D)
F) B) and D)

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Bill is a financial manager at Carlyle Bank and Trust who always strives to treat each subordinate with respect and fairness.Bill's treatment of employees is an example of Fayol's principle of:


A) empowerment.
B) priority of assignment.
C) equity.
D) unity of command.

E) All of the above
F) A) and D)

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Carlos is the person to see in the welding department if you are a new employee.While he is not a manager,he is the person that most of the others in the department look to for advice and assistance.Carlos is an important member of the firm's:


A) participatory control.
B) supervisory management.
C) informal organization.
D) closet cabinet.

E) None of the above
F) B) and D)

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Mo was just hired by a firm that utilizes a bureaucratic organization.Mo is likely to encounter all of the following conditions except :


A) many rules and regulations that employees are expected to follow.
B) many layers of management.
C) departmentalization by function.
D) empowerment of first line employees to better serve customers.

E) A) and C)
F) C) and D)

Correct Answer

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The ________of a business firm is the structure that details lines of authority,responsibility,and position.


A) normative design
B) formal organization
C) matrix reloaded structure
D) informal organization

E) C) and D)
F) All of the above

Correct Answer

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Departmentalization creates an environment in which people are trained in a variety of managerial responsibilities.

A) True
B) False

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Inverted organizations define the role of front-line employees as those workers who follow the orders of top and middle management.

A) True
B) False

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