ITRUE OR FALSE:

1.A good chief executive of a business enterprise should be primarily concerned with the firm's major and operating policies, its objectives, strategies and long-range plans, controlling its operations, and with problem solving.

2.There is nothing that a firm can do about high illiteracy percentages among its work force except to stop hiring.

3.Corporate planning presupposes a willingness on management's part to take on chances, no matter what the odds might be; on the ground that long-range planning is, by nature, highly speculative.

4.Potential entrants are limited to other firms considering to offer the same range of the products or services in the industry.

5.The personality of the chief executive, as reflected by his management style, plays a dominant role in determining the company's degree of centralization or decentralization.

6.Any form of cooperation with a foreign firm should use a strategy that, over the long term, will ensure the biggest net gains for the local company; otherwise it will be open to exploitation by the foreign partner.

7.Power is the personal right to restrict choice for the purpose of inducing behavioral change.

8.The firm's major policies provide the basis for day-to-day decisions that are consistent with the company's strategic plan and its objectives.

9.A person's value system is shaped by the attitudes and behavior of both the social community that he belongs to and his place of work.

10.Decline of an industry may be reversed by technological break-through in which case, it is a growth industry again.

11.A company that must employ all of its resources today in order to hold its head over water until tomorrow resorts mostly, to planning by intuition or "gut" feel.

12.In the one-man operation, the chief executive achieves results primarily through the managers whom he himself chooses and develops.

13.There is one rule of thumb that a local company seeking a foreign partner would do well to follow: select a company that is as homogeneous to it as possible in terms of size, product range, and financial condition.By following this rule a joint venture success can be ensured.

14.Authority and power reside in position and in the individual respectively.

15.Business strategy provides the how that will get the firm from where it is now to where the objectives say it should be at some point in time.

16.The country's cultural, political, and economic factors serve as a combination of constraints and opportunities for any business firms, hence top management would do well to be aware of what these are.

17.Laborers are suppliers.

18.If a firm's major policy is "to become the leading manufacturer of toys in the country," its objective might be "to begin exporting 25% of the total production by the end of two years."

19.The functional organization with a central headquarters and geographical dispersion has room for a variety of disparate product lines because it has divisions per product line and/or for each geographic location.

20.A safeguard that a local company can take to prevent loss of effective managerial control, even though its foreign partner may own the majority number of stocks in a joint venture agreement is to negotiate for the right to appoint the company's chief executive.

21.Authority is effective in the long run if it is considered legitimate by those who are subject to it.

22."This company, which will be a limited partnership, will be engaged in the production of Philippines handicrafts and will eventually be one of the leading exporter of the same," is an example of a major policy that describes the firm's fundamental nature, its identity and direction it is expected to move.

23.Corporate goal setting and the overall strategic effort must closely depend on the government's development plan since this accurately reflects what the political climate will be like over a time period.

24.Maturity of an industry is reached faster in high technology oriented industries.

25.If there is any one factor that greatly affects even the best-laid business strategy, it must be the environment.

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26.The major functions of a conglomerate's central management are to select the chief executives of its subsidiaries and to maintain financial control over them.

27.The rate of return on investment that a foreign partner will find satisfactory in the least is related to his view of the degree of risks involved in the investment in the joint-venture arrangement.

28.Leadership is the method or style used by an executive to move subordinates toward a desired end.

29.Every business enterprise will essentially have a policy on how to maximize profits or minimize losses consistent with it's other major policies or objectives.

30.Most government development plans usually underestimate the population growth rate, thereby resulting in increased consumption, decreased investment, slower growth, lower per capita income, and a sharper but broader based pyramid of income distribution.

31.The focus strategy option does not utilize product differentiation and low cost strategy.

32.In a military sense, the most effective strategic plan can be thought of as a series of tactics which show what each company unit must carry out, who will be held responsible, what must be accomplished and when everything must be done.

33.Changes in the organizational structure can be made as economically as possible by drawing up a scheme for the most efficient personnel turnover in the shortest possible time.

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34.One of the first items that a local company's owners should take up before they proceed to the negotiation table with a prospective foreign partner is to decide on what aspects of effective management control should retain in the interest of their company and which can be negotiated away.

35.Successful conflict resolutions mean that the leader should be able to eradicate all elements, which induce conflict if he is to successfully maintain order or stability.

36.One of the country's major policies should always describe the degree and type of social responsibility to which the company would involve itself.

37.Competitive positioning is more dynamic when competitive advantages are long term than the when the competitive advantage is short term.

38.The short-term plan and annual budget should be entirely independent of the long term planning process in order to satisfy profit expectation.

39.The organizational structure should determine the company's goals and strategies, otherwise, the firm should reorganize.

40.Collaboration with a foreign partner must be thought of as a positive game for the local company, the foreign firm and the government.

41.The X and the ay present opposing views on the nature of man and work.

42.A firm that has a "NO GROWTH" policy will always be doomed at the next economic recession no matter what strategies it takes.

43.Some firms must stay in the industry even if they do not want to anymore.

44.A company should stick to its long-range plan to the letter no matter what the political and socio-cultural environmental conditions may be like.

45.The operating policies spell out the general direction in which the firm is expected to move.

46.The executive can pass on accountability by means of delegating responsibility to a subordinate.

47.It is best for top management to keep the major policies in confidence among themselves in order to prevent leakage that might erupt into organizational conflict.

48.A firm may undertake capacity expansion through vertical integration.

49.The life span of any long-range plan is dictated primarily by the company's current resources; examples are, personnel. Plant, equipment, cash.

50.Written company policies are a safeguard against arbitrary and prejudiced decision-making.