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Currently,Mucho Dinero is organized into specialized departments such as marketing,finance,production and personnel.These departments are designed to allow people with similar skills and expertise to work together.This approach is known as ___________ departmentalization.


A) functional
B) process
C) interest group
D) task-oriented

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

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Fayol believed that managers should treat employees and peers with respect and justice.

A) True
B) False

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Fayol believed that decision-making authority should remain in the hands of top management:


A) in small organizations,but should be delegated to middle and first-line managers in large organizations.
B) in large organizations,but could be delegated to middle and first-line managers in small organizations.
C) in all types and sizes of organizations.
D) only in organizations subjected to significant government regulation.

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

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Ashley experienced frustration with her new job at Walnut Securities,until she befriended a secretary from another department.Over lunch in the cafeteria,her new friend shared with Ashley the way things really work at Walnut Securities.Ashley quickly learned that:


A) what she learned in her business classes didn't really help her in the real world.
B) an unofficial informal organization exists that she can utilize to help her do her job.
C) organizational culture can be negative.
D) not all businesses have a formal organization.

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

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


A) unity of command.
B) equity.
C) empowerment.
D) order.

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

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Ping believes all workers should receive the same wage rate regardless of their position within a company.Ping's views on wages illustrate Fayol's principle of equity.

A) True
B) False

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Multinational pharmaceutical companies who during the past 20 years preferred to contract with companies in India and other places with cheap labor are turning back to the U.S.to produce their products.The recent popularity of _______________ is due to compliance issues and legal issues ,as well as the quality of output.


A) market transition
B) market transformation
C) outsourcing
D) insourcing

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

Correct Answer

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Companies benefit today by inter-firm cooperation.One of the ways they cooperate is through networking.Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries.We call this:


A) competency capturing
B) technology swapping
C) benchmarking
D) broadening the knowledge base

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

Correct Answer

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The widely shared values within an organization that provide unity and cooperation to achieve common goals is together known as the:


A) normative matrix.
B) predefined group values.
C) ethical system.
D) organizational culture.

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

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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.

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

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Which of the following is true of cross-functional teams?


A) Cross-functional teams are required not to share information across national boundaries
B) Employees on the teams are frustrated by organizational rules and regulations
C) Cross-functional teams work best when the voice of the customer is brought into the organization
D) Cross-functional teams are disbanded once the current project is complete

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

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In recent years,large organizations have tried to improve their efficiency in communication and decision making by:


A) creating specific rules for everyone to follow.
B) eliminating several layers of management.
C) restructuring into a bureaucratic organization.
D) reducing the span of control for managers.

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

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What is a cross-functional,self-managed team? Who would serve on such teams? Why do cross-functional,self-managed teams often lead to networking?

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a)A cross-functional team is a group of ...

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Weber put great trust in the creativity,skills,and pride of employees and believed that managers should act more as coaches than as bosses.

A) True
B) False

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Vaughn Studios organizes its operations by activity,such as production,marketing,accounting,and finance.Vaughn utilizes _____________ departmentalization in order to maximize their efficiency:


A) product
B) customer
C) functional
D) standardized

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

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Whirlpond,a manufacturer of home appliances,has historically produced the components for their products.However,Whirlpond now contracts with other firms to produce these components.This strategy of __________ is a current trend among U.S.manufacturers.


A) outsourcing
B) core positioning
C) foreign competency
D) competitive benchmarking

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

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A bureaucracy empowers employees to quickly respond to customers' wants and desires.

A) True
B) False

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The Social Media in Business box titled,"When Twitter and Facebook Are Old School," discusses the lifecycle of social media and predicts that this media will lose its appeal when businesses realize it is not adding to the bottom line.

A) True
B) False

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Departmentalization by function typically increases the cost of doing business.

A) True
B) False

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Alleta Publishing Company,Inc.is considering the use of cross-functional teams.In order to be most effective,Alleta should include customers as members of the teams.

A) True
B) False

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