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Line organizations follow all of Fayol's traditional management rules.

A) True
B) False

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In large businesses,a line organization provides firms the ability to respond quickly to a changing environment.

A) True
B) False

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Given the current business environment,managing __________has become a critical managerial function.


A) consumer demand
B) change
C) international markets
D) negative spiritual issue

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

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Compared to the centralized management structure,which of the following is a disadvantage of the decentralized management structure?


A) Weakened corporate image.
B) Less responsive to customers.
C) Less empowerment.
D) Lower morale away from corporate headquarters.

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

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A matrix organization produces an environment that discourages cooperation and teamwork.

A) True
B) False

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Inverted organizations empower employees by adding multiple layers of management and long lines of communication.

A) True
B) False

Correct Answer

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The term mass production refers to:


A) producing large specialized items.
B) efficiently producing large quantities of goods.
C) two or more firms combined to better meet the needs of customers.
D) the production of religious icons.

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

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The concept of economies of scale suggests that the bigger a plant,the more efficient production becomes.

A) True
B) False

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Economies of scale:


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

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

Correct Answer

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Young people who grew up with the Internet and cell phones are called digital users.

A) True
B) False

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The key to success is remaining flexible enough to adapt to changing times.

A) True
B) False

Correct Answer

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Joel,an employee of the engineering department,has been temporarily assigned to work with specialists from other departments to develop a new product.Upon completion of this single project,Joel will return to his position in the engineering department.This arrangement illustrates the use of a self-managed team.

A) True
B) False

Correct Answer

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It is relatively expensive to maintain a tall organization structure.

A) True
B) False

Correct Answer

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involves an organization comparing each of their business functions against the best in the world.


A) Networking
B) Virtual competition
C) Benchmarking
D) Outsourcing

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

Correct Answer

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The more complex the job,the narrower the span of control.

A) True
B) False

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Weber was critical of bureaucrats because he felt they undermined the efficiency of the organization.

A) True
B) False

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An informal organization can be a valuable asset to managers attempting to create an environment of harmony and cooperation among employees.

A) True
B) False

Correct Answer

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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) reducing the span of control for managers.
C) eliminating several layers of management.
D) restructuring into a bureaucratic organization.

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

Correct Answer

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Barbara is a middle manager who spends much of her time devising ways to implement the ideas of top management.Max Weber would have called Barbara a bureaucrat.

A) True
B) False

Correct Answer

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A bureaucratic style of organization is slow when responding to change.

A) True
B) False

Correct Answer

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