In reviewing the organizational structure of your company, you notice that engineering is subdivided into mechanical, electrical, and software. Additionally, the accounting department is subdivided into accounts payable, accounts receivable, and asset management. What type of departmentalization has the company selected?

Question 1 options:

	Customer
	Product
	Functional
	Geographic
	Process

Question 2 (1 point)

Crisis management involves

Question 2 options:

	identifying aspects of a business or its environment that might entail changes in strategy.
	an organization's methods for dealing with emergencies.
	ensuring that all the employees know what to do in an emergency.
	knowing how to contain a crisis, should one happen.
	identifying aspects of a business that require changes in organization in three to five years' time.

Question 3 (1 point)

Which statement about organizational structure is true?

Question 3 options:

	Decentralized firms tend to have many layers of management.
	The purpose of centralization is to make a company more responsive to a changing, complex environment.
	In a centralized organization, most decision-making authority is held by lower-level managers.
	As a company gets larger, it tends to adopt a decentralized structure.
	Decentralized companies must change to centralized structures in response to unpredictable environments.

Question 4 (1 point)

Bigbucks Bank has separate departments for consumer loans and commercial loans. It is departmentalized by

Question 4 options:

	process.
	product.
	geography.
	function.
	customer.

Question 5 (1 point)

Which of the following best captures the difference between efficiency and effectiveness?

Question 5 options:

	Efficiency means doing what production wants, while effectiveness means doing what marketing wants.
	Efficiency means doing things right, while effectiveness means doing the right things.
	Efficiency means doing what the company's engineers want, while effectiveness means doing what consumers want.
	Efficiency means maximizing output, while effectiveness means maximizing profit.
	Efficiency means working as fast as possible without regard to product quality, while effectiveness means working more carefully and paying attention to quality.

Question 6 (1 point)

Departmentalization is the process of

Question 6 options:

	creating separate profit centres.
	developing an organization chart.
	creating separate revenue centres.
	grouping jobs into logical units.
	creating chains of command.

Question 7 (1 point)

What kind of departmentalization is done according to the types of consumers likely to buy a given product?

Question 7 options:

	Shopper
	Functional
	Client
	Customer
	Demographic

Question 8 (1 point)

Magna Corp. managers have just completed a top-level process that involved the setting of strategic goals. What should they do next?

Question 8 options:

	Do a SWOT analysis
	Match the organization and its environment
	Examine the threat of escalation of commitment to the strategic goals
	Make sure that the production department can produce the necessary products at an acceptable level of quality
	None of these

Question 9 (1 point)

Rolex sells high-quality, high-priced watches through selected jewellery stores. This is their

Question 9 options:

	purpose.
	long-term goal.
	mission.
	strategic goal.
	corporate performance target.

Question 10 (1 point)

Which of the following is an advantage of delegation?

Question 10 options:

	Permits the manager to focus on the day-to-day operations
	Subordinates are not held accountable for tasks assigned by delegation
	Makes it easier to punish workers who perform tasks poorly
	Increases work skills of subordinates
	Permits the manager to exercise closer control over subordinates

Question 11 (1 point)

A mission statement is

Question 11 options:

	a statement of how an organization will achieve its purpose in the environment in which it conducts its business.
	not necessary for smaller businesses.
	a statement developed by the board of directors to guide the business.
	the same as a purpose.
	solely for people visiting the company so they understand what the company does.

Question 12 (1 point)

Which of the following is not an advantage of the divisional structure?

Question 12 options:

	Change and expansion are facilitated.
	Training for top management is encouraged.
	Developing expertise in the various divisions occurs.
	Activities may be duplicated across divisions.
	Accountability is increased.

Question 13 (1 point)

Scott, the manager of a Computers R Us store, in reviewing the sales results from last week noticed that all but one employee was on target. As he contemplated how to fix the problem, he was engaged in the management process of

Question 13 options:

	staffing.
	controlling.
	organizing.
	planning.
	directing.

Question 14 (1 point)

Which of the following uses teams of specialists to complete specific projects?

Question 14 options:

	Process organization
	Product structure
	Project organization
	Functional structure
	Divisional structure

Question 15 (1 point)

Which of the following best describes responsibility?

Question 15 options:

	The need to prove satisfactory work performance
	The liability of subordinates for accomplishing tasks assigned by managers
	The power to make the decisions necessary to complete a task
	The number of people supervised by one manager
	The duty to perform an assigned task