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| 1 | |
Control systems help managers do all of the following EXCEPT: |
| | A) | resist change and uncertainty. |
| | B) | discover irregularities and errors. |
| | C) | detect opportunities. |
| | D) | reduce costs and increase productivity. |
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| 2 | |
The three characteristics of an effective control system are: |
| | A) | flexibility, quality, and timeliness. |
| | B) | quality, timeliness, and adaptability. |
| | C) | timeliness, accuracy, and flexibility. |
| | D) | accuracy, quality, and flexibility. |
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| 3 | |
Controlling is a four-step process; which is not one of the steps? |
| | A) | Establishing performance standards |
| | B) | Measuring competitor's performance |
| | C) | Comparing actual performance against performance standards |
| | D) | Evaluating the results and taking corrective action |
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| 4 | |
When a production machine is out of alignment, this is an example of the need for: |
| | A) | concurrent control. |
| | B) | feedforward control. |
| | C) | feedback control. |
| | D) | bureaucratic control. |
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| 5 | |
When a manager monitors the number of defective parts returned by customers, this is an example of: |
| | A) | bureaucratic control. |
| | B) | feedback control. |
| | C) | feedforward control. |
| | D) | concurrent control. |
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| 6 | |
Which type of financial analysis measures how efficiently managers use resources to produce profits? |
| | A) | Liquidity ratios |
| | B) | Leverage ratios |
| | C) | Activity ratios |
| | D) | Profit ratios |
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| 7 | |
When net income before taxes is divided by total assets, this is called: |
| | A) | the gross profit margin. |
| | B) | inventory turnover. |
| | C) | return on investment. |
| | D) | days sales outstanding. |
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| 8 | |
Sales less cost of goods sold needed to produce the products sold is called: |
| | A) | return on investment. |
| | B) | gross profit margin. |
| | C) | the quick ratio. |
| | D) | the current ratio. |
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| 9 | |
When managers are evaluated on how well they maximized sales revenues, this is known as: |
| | A) | an expense budget approach. |
| | B) | a cost budget approach. |
| | C) | a profit budget approach. |
| | D) | a revenue budget approach. |
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| 10 | |
The most immediate form of behaviour control is: |
| | A) | MBO. |
| | B) | rules. |
| | C) | SOPs. |
| | D) | direct supervision. |
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| 11 | |
Which of the following is the most important step in the MBO process for purposes of control? |
| | A) | Managers and subordinates set the subordinate's goals. |
| | B) | Specific objectives are set at each level of the organization. |
| | C) | Managers and subordinates review the subordinate's progress. |
| | D) | All of these are equally important. |
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| 12 | |
Output and behaviour controls may be inappropriate for all of the following reasons EXCEPT: |
| | A) | not all employees can be observed on a day-to-day basis. |
| | B) | behaviour controls can often stimulate conflict. |
| | C) | as crude measures of performance, output controls could harm performance. |
| | D) | rules and SOPs are not helpful in crisis situations. |
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| 13 | |
Clan control is important because: |
| | A) | It is less likely to encourage employees to go above and beyond. |
| | B) | A strong set of values and norms can encourage a focus on what is best for the organization in the long run. |
| | C) | It provides a clear set of rules and guidelines that can be followed in a crisis. |
| | D) | It is the least expensive type of control system. |
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| 14 | |
Managers in a(n) _________ culture are likely to create a(n) _________ structure. |
| | A) | conservative; flat and decentralized |
| | B) | conservative; organic |
| | C) | innovative; organic |
| | D) | innovative; bureaucratic |
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| 15 | |
In a(n) ____ culture, managers are likely to lead by example. |
| | A) | conservative |
| | B) | clan |
| | C) | innovative |
| | D) | bureaucratic |
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| 16 | |
A rigid management by objective system and constant monitoring of progress will most likely be found in a(n) _____ culture. |
| | A) | clan |
| | B) | conservative |
| | C) | innovative |
| | D) | bureaucratic |
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