1) Programmed decisions are useful when there is no predetermined structure on which to
2) Managers often ignore problems.
3) Bill Simmons is the manager of a small restaurant and must decide how much money he
owes his suppliers. This is an example of a nonprogrammed decision.
4) In the fourth state of decision making, problem diagnosis is linked to the development of
5) Choosing a ready-made alternative takes less time than designing a custom-made
6) Contingency plans are best developed following the final stage of decision
making—evaluating the decision.
7) One advantage of using a group for decision making is that one person dominates.
8) Discounting the future is said to partly explain governmental budget deficits and
9) In decision making, it is always better to use a group than an individual.
10) Which of the following does NOT describe good plans in organizations?
A. They provide a clear road map
B. They are purposeful
C. They may be formal or informal
D. They are flexible
11) The targets or ends the manager wants to reach are called:
B. Mission statement
12) Plans are:
A. Targets a manager wants to reach
B. Specific to differing industries
C. Inappropriate when resources are scarce
D. Actions taken to achieve goals
13) A plan which focuses on ongoing activities and may become a more permanent policy
or rule is called a(n):
A. Single-use plan
C. Mission statement
D. Standing plan
14) A policy developed for the yearly graduation ceremony at Easy Town High School can
be described as a(n):
A. Single-use plan
B. Contingency plan
C. “What-if” plan
D. Standing plan
15) _____________ plans might be referred to as what-if plans.
16) Coordination refers to
A. Division of labor within an organization
B. The performance of specific tasks by specific people
C. The need for specific tasks in the functional fields
D. The linking of the various components of an organization
17) An organization chart conveys all of the following EXCEPT:
A. Who reports to whom
B. How decisions are made
C. How the work is divided
D. The work performed by each unit
18) The assignment of different tasks to different people or groups is the:
A. Organization structure
B. Division of labor
C. Value chain
D. Strategic plan
19) Incremental decision making occurs when managers make small decisions and move
cautiously toward a bigger solution.
20) Managers often ignore problems for all of the following reasons EXCEPT:
A. Getting involved is risky
B. It is easier to procrastinate or to get busy with less demanding activities
C. Managers are often too busy to make decisions
D. They cannot be sure how much time, energy, or trouble lies ahead
21) Characteristics of managerial decisions include all of the following EXCEPT:
B. Lack of structure
22) The state that exists when decision makers have insufficient information is:
23) Shakil works for a large contractor. Company policy requires that in hiring
subcontractors, at least three bids must be received and that the lowest bid which meets
specifications will be accepted. Shakil’s decisions regarding the hiring of subcontractors
would be classified as:
C. Lacking structure
24) Managers of Shadow Blinds are contemplating whether to open the company’s first
international branch in Europe or Asia. These managers are facing a _______ decision.
C. Well structured
25) The initial step in the decision-making process is to:
A. Evaluate the decision
B. Identify the problem
C. Implement the decision
D. Select an alternative
26) Once a problem is identified and properly diagnosed, the next stage in the decision-
making process involves:
A. Evaluating consequences
B. Generating alternative solutions
C. Evaluating information
D. Evaluating alternatives
27) Kathy has received two job offers. One is from a firm in a town that Kathy would like to
live in but the other offer would pay more. Kathy is having a difficult time making a
decision due to experiencing:
A. Organizational conflict
B. Psychological conflict
C. Physical location conflict
D. Internal conflict
28) The essential characteristic of great companies, according to Collins and Porras, was
their relentless focus on beating the competition.
29) Collins and Porras argue that organizations must focus on both purpose beyond profit
AND pragmatic pursuit of profit.
30) A critical characteristic of success, for all the great companies studied in Built to Last,
,was a set of common values that all the companies followed.
31) A performance gap can occur when performance is good but someone realizes that it
could be better.
32) The key to successful change is people.
33) When management realizes that its current practices are no longer appropriate and
the company must break out of its present mold by doing things differently, this is called
34) Susan has the opportunity to either go along with her coworkers and participate in
filling out inaccurate time records OR tell her manager what is happening. This is an
A. An ethical issue
B. A situation that is not a problem
C. A time when Susan should ignore the problem
D. A moral rights issue
35) People in the ____________ stage make decisions based on concrete rewards and
punishments and immediate self-interest.
36) A situation, problem or opportunity in which an individual must choose among several
actions that must be evaluated as morally right or wrong is called:
A. An ethical issue
B. A personal issue
C. Business ethics
37). Satisficing is achieving the best possible outcome.
38). Affective conflict is differences in perspectives or judgments about issues whereas
cognitive conflict is emotional and directed at other people.
39. Some experts advise that in today’s complex business significant problems should
always be tackled by groups.
40. Which is the first step in the formal planning process?
A. Goal and plan evaluation.
C. Monitor and Control
D. Situational Analysis
41. Which of the steps in the formal planning process involves studying past events, examining
current conditions, and forecasting future trends?
A. Situational analysis
B. Monitor and control
C. Goal and plan evaluation
D. Alternative goals and plans
42. If expansion to Australia does not materialize, Widget, Inc.’s backup plan is to expand to Asia.
This backup plan is an example of:
A. Strategic plan
C. Contingency plan
D. Single-use plan