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1) Planning involves which of the
A. Analyzing current situations
B. Determining rewards for goals achievement
C. Motivating employees
D. Implementing necessary changes
2) _______ is specifying the goals to be
achieved and deciding in advance the appropriate actions needed to
achieve those goals.
A. Staffing
B. Leading
C. Organizing
D. Planning
3) Advances in genetic engineering and
biotechnology are expected to produce some food products that will
become available year-round even in northern climates. These
changes will provide grocers with an opportunity to reduce their
shipping costs while at the same time, offering fresher produce to
their customers. These advances are an example of changes in
A. technological environment
B. economic environment
C. political environment
D. ecological environment
4) _________ trends regarding how people
think and behave have major implications for management of the
labor force, corporate social actions, and strategic decisions
about products and markets.
A. Psychological
B. Economic
C. Technological
D. Societal
5) Which of the following is a step in the
decision-making process?
A. Generating an idea
B. Good business planning
C. Evaluating the decision
D. Delegating a task
6) Which is a step in the decision-making
A. Resolving and reducing conflict
B. Making the choice
C. Using the lack of structure
D. Delegating a task
7) The targets or ends the manager wants
to reach are called
A. goals
B. missions
C. visions
D. strategies
8 In the _______________ stage of the
planning process, managers should weigh the advantages,
disadvantages, and potential effects of each alternative goal and
A. goal and evaluation
B. goal and plan selection
C. implementation
D. alternate goals and plans
9) Tactical planning would include which
of the following?
A. Profit goals
B. Design, test, and install the equipment needed to produce a
new product line
C. Human resources requirements
D. Return on investment
10) The internal analysis component of the
strategic management process assesses the organization’s
A. performance levels
B. competitors
C. industry growth rate
D. product substitutions in the market
11) Suppose you face a question regarding how to handle a
defective piece of equipment that your company sold. To tell the
customer would cost you a substantial amount of money, but if the
equipment fails, it could lead to serious injury of the customer.
You decide to disclose the defect and suggest alternatives to
eliminate the risk of injury. This decision employs which ethical
A. Universalism
B. Egoism
C. Relativism
D. Virtue ethics
12) Your organization faces an ethical question. There has
been a problem with your accounting process that has resulted in
lower profits being reported than were actually earned. You are
attending a meeting where senior management is deciding how to
handle the situation. The people at the table have varying views of
what action to take and why. John wants to report the error
immediately because he believes that it is the right thing to do
and that will keep them all out of jail. Bruce wants to report the
error because it is the honest thing to do. After hearing his
colleagues’ opinions, Carlos says he wants to report the error as
well because he believes the group is right. Carlos is using which
ethical system for his decision making?
A. Universalism
B. Relativism
C. Utilitarianism
D. Virtue ethics
13) In the study by Lawrence and Lorsch, companies in
complex, dynamic environments developed _____ levels of
differentiation; and _____ levels of integration
A. low; low
B. high; high
C. low; high
D. high; low
14) An aspect of the organization’s internal environment
created by job specialization and the division of labor is
A. differentiation
B. integration
C. division of labor
D. specialization
15) An organization with departmentalization that groups
units around products, customers, or geographic regions is called
A. divisional organization
B. centralized organization
C. matrix organization
D. functional organization
16) Which of the following statements about matrix
organizations is true?
A. A matrix organization is the same as a functional
B. A matrix organization is the same as a product
C. A matrix organization is a hybrid of the functional and
divisional organizational forms
D. A matrix organization is considered out-of-date compared to
the organic organization
MGT 230 Final Exam
17) An organization with
departmentalization that groups units around products, customers,
or geographic regions is called a
A. centralized organization
B. matrix organization
C. virtual organization
D. divisional organization
18) Sports International (SI) began
business by making shoes for athletes. They soon expanded into
making shoes for non-athletic purposes. They now manufacture and
distribute clothing, sporting equipment, and protective sports gear
worldwide. They are departmentalized by products sold to serious
athletes, products sold to “weekend” athletes and products sold to
sports teams. SI has utilized which form of
A. Geographic
B. Customer
C. Functional
D. Matrix
19) The trait known as leadership motivation suggests that
great leaders
A. can motivate others to work hard
B. can motivate others to become leaders
C. can motivate others to join
D. want to lead
20) A leadership perspective that attempts to identify what
effective leaders do and the behaviors they exhibit is referred to
as the
A. behavioral approach
B. trait approach
C. transformational leadership
D. strategic approach
 MGT230 Final Exam
21) __________ leadership invites colleagues at the same
level to solve problems together
A. Horizontal
B. Collegial
C. Lateral
D. Linear
22) Leaders who relate to others to serve their needs and
enhance their personal growth while strengthening the organization
are known as
A. lateral leaders
B. shared leaders
C. bridge leaders
D. servant-leaders
23) The basic goal of managing diversity is to:
A. treat all people the same
B. increase the numbers of minorities in business
C. enhance organizational cohesiveness
D. understand and value employee differences
24) Future trends in the labor force include a
A. smaller labor force
B. more experienced labor force
C. more homogenous labor force
D. younger labor force
25) Behavior that gives purpose and meaning to
organizations, while envisioning and creating a positive future, is
known as
A. strategic leadership
B. supervisory leadership
C. organizational leadership
D. task leadership
26) The correspondence between actions and words that
include characteristics such as honesty and credibility is known
A. drive
B. self-confidence
C. knowledge of the business
D. integrity
27) Owners from two businesses have asked you which type of
control system they should utilize. To help you make your decision,
they have each provided a brief description of their organization.
Alpha Omega, Inc., is a large corporation built in the 1950s. They
produce chemical concentrates for industrial cleaning. Their
organization uses a strict set of rules and regulations with their
workforce. They have the ability to track a large amount of data
using statistical techniques. Mid-Atlantic Health is a regional
medical center. They want to use a control system that will allow
them to tie pricing of services and profits to specific services in
the medical center. The control systems that should be used in the
scenarios above were developed by
A. William Ouchi
B. Xerox
C. Frederick Taylor
D. Motorola
28) Your manager is speaking to a group of employees about
a problem in your department. Employees are not complying with the
rules regarding clocking in and clocking out each day. The rules in
this situation are very important as employees will not receive
their correct pay if the clocking procedures are not followed.
There are three suggestions being considered to address this

Employees will be monitored at the entrance during shift
changes to make sure that each complies with the procedure.
Reports will be reviewed at the end of each pay period. The
reports will contain data tracking the number of employees not
complying with the procedures each shift. Employees violating the
procedure will be counseled to correct the problem.
A new procedure will be developed describing an easier
procedure for employees to follow. Training will be conducted so
that each employee knows the policy and the procedure before it is

Option 1 describes which approach to bureaucratic control?
A. Feedback
B. Concurrent
C. Feedforward
D. Market
29) Suppose you are interviewing the CEO of a large
company. The CEO is telling you about his or her job as a manager
and how he or she spends time. Using the description below, which
function of management is the CEO most likely describing in this
“My job, for some part of each day, is to empower our employees
to think of things in new and different ways, not just to come to
work and complete the tasks on a list.”
A. Organizing
B. Leading
C. Controlling
D. Decision making
30) Suppose you are interviewing the CEO of a large
company. The CEO is telling you about his or her job as a manager
and how he or she spends time. Using the description below, which
function of management is the CEO most likely describing in this
“Every six months or so, my senior management team and I meet to
discuss the goals that will be achieved over the next year, three
years, and beyond. We then make sure we are clear on who will take
responsibility to see that the appropriate actions are undertaken
to achieve our goals within the time frame we set.”
A. Planning
B. Organizing
C. Leading
D. Decision making


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