Business 1 - Introduction to Business » Spring 2020 » Chapter 8 Quiz

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Question #1
A(n) ________ consists of one person at the top of the organization and many levels of managers who are responsible to that person.
A.   oligarchy
B.   hierarchy
C.   inverted organization
D.   informal organization
Question #2
The ________ an organization's structure, the ________ the span of control.
A.   flatter; wider
B.   taller; flatter
C.   taller; wider
D.   flatter; narrower
Question #3
All organizations have two organizational systems,
A.   the primary organization and secondary organization.
B.   the command system and the control system.
C.   the formal organization and the informal organization.
D.   the functioning system and backup system.
Question #4
A(n) ________ is a visual device that shows relationships among people and divides the organization's work.
A.   corporate tree
B.   Venn diagram
C.   organization chart
D.   Gantt chart
Question #5
The process of setting up individual functional units of the business to do specialized tasks is called
A.   delegation of authority.
B.   division of labor.
C.   job specialization.
D.   departmentalization.
Question #6
Organizing a business begins with
A.   developing an efficient plan of action.
B.   choosing the best qualified employees.
C.   determining the work to be done.
D.   acquiring the necessary resources.
Question #7
Cross-functional self-managed teams work best when ________.
A.   there are at least two line and staff managers on the team
B.   the teams consist of members of only two functional units
C.   the academic levels of all members are comparable
D.   leadership is shared
Question #8
Which of the following is an advantage of a line organization in a large business?
A.   Responsibility and authority are clearly defined.
B.   Each worker has several supervisors.
C.   It is very flexible.
D.   It does not require specialists to advise people along the line.
Question #9
Which of the following describes an environment in which data is instantly available via the Internet to organizational partners?
A.   virtual business
B.   e-commerce
C.   networking
D.   real time
Question #10
In an inverted organization, the job of management is to
A.   make all of the basic decisions.
B.   closely monitor employee performance.
C.   establish rules and regulations to guide worker behavior.
D.   assist and support front-line people.
Question #11
When Barrett opened his auto body shop, his business plan included a(n) ________ that showed the relationships among employees in his organization and the lines of authority and responsibility.
A.   operating matrix grid
B.   organization chart
C.   business view map
D.   department categorization
Question #12
Brady developed two VR games. However, he didn't do it all on his own. He hired two programmers, a marketing specialist, and created a small company. He considers himself a pioneer and wants to position his company the same way. He solicits your advice as to how he should structure his organization as he moves forward, and you suggest that he hire a few potential customers to join his team of employees as beta testers. You also suggest that maybe he should solicit globally. You are suggesting to Brady that he put together a
A.   matrix organization model.
B.   line-and-staff organization model.
C.   cross-functional team.
D.   line organization model.
Question #13
The informal organization of a business is probably best suited to
A.   provide helpful guidelines about how to handle routine problems.
B.   give workers a clear idea of where they stand in the organization.
C.   provide a mechanism that generates careful reasoned decisions about critical issues
D.   create a feeling of camaraderie among employees and encourage teamwork.
Question #14
The organizational structure of the U.S. Army's 1st Infantry Division provides for direct two-way lines of responsibility, authority, and communication running from the top to the bottom. Additionally, each person in the division reports to only one superior. The 1st Infantry Division is clearly an example of a(n)
A.   service organization.
B.   matrix organization.
C.   line organization.
D.   functional organization.
Question #15
________ is the term used to describe those functions that a firm can do as well or better than others. It performs these functions in-house, rather than outsourcing.
A.   Core competencies
B.   Standard responsibilities
C.   Operational requirements
D.   Benchmarks
Question #16
The ________ of a business firm is the system that details lines of authority, responsibility, and position, similar to the structure on organization charts.
A.   informal organization
B.   matrix reloaded structure
C.   formal organization
D.   normative design
Question #17
A(n) ________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.
A.   organization chart
B.   Venn diagram
C.   balance sheet
D.   stakeholder outline
Question #18
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.   only in organizations subjected to significant government regulation.
D.   in all types and sizes of organizations.
Question #19
Realizing that it was time to invest in an updated information system, the CEO made an announcement in his weekly email to his team: "We are going to shake things up around here. We need to break apart our information system, and start over." Unfortunately, the message translated poorly in the minds of employees. A total shake-up such as this could impact employee morale. Progressive companies today incorporate strategies that continuously embrace
A.   a change-oriented culture.
B.   formal, symbolic walls that prevent one person from driving change to the detriment of others.
C.   a stay the course environment. It is always best to play your game than try to embark on someone else's game.
D.   a formal and information organization that assists with change.
Question #20
If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?
A.   Organization design will benefit by the emergence of quick decision making.
B.   There will be a significant reduction of workforce due to specialization and departmentalization.
C.   Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase.
D.   Organization design will eliminate systems of hierarchy and chains of command due to their hindrance of esprit de corps.

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