The span of control is the number of subordinates who report directly to one manager.

A) True

B) False


A manager with ____ skills has the ability to deal effectively with people inside and outside the organization.

A) functional

B) conceptual

C) diagnostic

D) interpersonal

E) technical


The first step in the managerial decision-making process is to

A) evaluate the problem.

B) identify an opportunity.

C) identify a solution to the problem.

D) generate alternative solutions to the problem.

E) create a problem.


A disadvantage of the matrix structure is that

A) teams may be too decentralized and incapable of making a decision.

B) employees’ supervisors change, which can cause confusion.

C) employees have to report to more than one supervisor, which can cause confusion about who is in charge of certain situations.

D) people have more work to do because they are assigned to special projects in addition to their regular tasks.

E) the quality of work decreases due to project teams’ lack of attention to regular job duties.


When medical research indicated that a high-fiber diet might help reduce one’s risk of colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal, you will not get cancer. This is an example of

A) an unethical organizational relationship.

B) unethical communications.

C) ethical persuasion.

D) a conflict of interest.

E) social responsibility.


One way a social responsibility program can be funded is by passing on the cost to the consumer in the form of higher prices.

A) True

B) False


Melissa purchases a DVD player at a store that sells refurbished merchandise. The store has a big sign stating Caveat Emptor posted out front and at the cash register. This sign most likely translates to a policy of

A) 100 percent satisfaction guaranteed with all merchandise.

B) all sales are final (no refunds or exchanges).

C) selling only French-manufactured products.

D) buying, selling, or trading electronic goods.

E) refunds or exchanges at any time with a receipt.


Since someone must be responsible for a partnership’s debts, a limited partnership must have at least one general partner.

A) True

B) False


A corporate culture is generally defined as the

A) informal interaction of employees outside work during nonbusiness hours.

B) management philosophy pertaining to customer service.

C) incorporation of company policies and procedures into employee activities.

D) manner in which employees interact with each other and with management.

E) inner rites, rituals, heroes, and values of a firm.


The most effective form of business organization for raising capital is the

A) sole proprietorship.

B) partnership.

C) joint venture.

D) corporation.

E) syndicate.


Jack has been saving his excess funds for several years and has contemplated entering a partnership with a friend from college. Jack hesitates because he knows that it is ____ to invest money in a partnership and ____ to get the money back out.

A) difficult; easy

B) easy; difficult

C) difficult; difficult

D) easy; impossible

E) easy; easy


What are the two major problems that affirmative action programs have faced?

A) Unrealistic expectations and strict enforcement

B) Quotas and the EEOC

C) Quotas and lack of acceptance by some businesspeople

D) Lack of enforcement and lack of acceptance

E) Reverse discrimination and lawsuits


When a worker has to learn only a specific, highly specialized task, that individual should be able to learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through

A) assembly-line production.

B) job rotation.

C) technical job training.

D) job design.

E) job specialization.


The field of business ethics applies moral standards to business situations.

A) True

B) False


Once they are made aware of the pollution problem, most firms respond rather than waiting to be cited by the EPA.

A) True

B) False


The advantages and disadvantages of a business partnership are comparable to those of marriage.

A) True

B) False


Middle managers occupy the management level that falls between the operating employees and first-line managers.

A) True

B) False

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