Question 1

Small business organizations lack the size required to reap the benefits of labor specialization.

Accepted Answer

A) True 
 B)False

Question 2

Cross-functional teams consist of employees from different departments who work together on a long-term basis.

Accepted Answer

A) True 
 B)False

Question 3

Bass Clef Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that Bass Clef departmentalizes by

Accepted Answer

A)   process.
B)   function.
C)   user group.
D)   tradition.E) A) and C)
F) None of the above

Question 4

Weber was a strong proponent of bureaucracy.

Accepted Answer

A) True 
 B)False

Question 5

Cross-functional teams serve as advisory committees offering their expertise to line decision makers.

Accepted Answer

A) True 
 B)False

Question 6

Outsourcing involves assigning various functions to outside organizations.

Accepted Answer

A) True 
 B)False

Question 7

The driving force behind the change in business organizations is the change in consumer expectations.

Accepted Answer

A) True 
 B)False

Question 8

Currently, Mucho Dinero is organized into specialized departments such as marketing, finance, production, and personnel. These departments are designed to allow people with similar skills and expertise to work together. This approach is known as ________ departmentalization.

Accepted Answer

A)   functional
B)   process
C)   interest group
D)   task-orientedE) None of the above
F) All of the above

Question 9

When we experience economies of scale, this means that as production levels rise (we make more of something), the cost of supplies and the cost of labor that go into the production go down.

Accepted Answer

A) True 
 B)False

Question 10

Competitive benchmarking compares a company's practices, processes, and products against others in its industry, with the goal of doing it better than the competition.

Accepted Answer

A) True 
 B)False

Question 11

Economies of scale

Accepted Answer

A)   are available to small firms but not to large firms due to management inefficiencies.
B)   are achieved when a firm reduces its average cost of production as it produces more.
C)   can be avoided by purchasing supplies and raw materials in large quantities.
D)   help explain the success of small businesses.E) B) and C)
F) C) and D)

Question 12

On Air Studios organizes its jobs by activity, such as production, marketing, accounting, and finance. On Air Studios applies ________ departmentalization in order to maximize their efficiency.

Accepted Answer

A)   product
B)   customer
C)   functional
D)   standardizedE) B) and D)
F) None of the above

Question 13

Digital natives, those who grew up with the Internet and other devices, are an important customer group that most businesses want to reach.

Accepted Answer

A) True 
 B)False

Question 14

The informal organization is created by the decisions of top management.

Accepted Answer

A) True 
 B)False

Question 15

Top management at Upper Limits, Inc. looks to encourage communication between different departments to stop employees from becoming narrow specialists. The best way to reach these goals is to departmentalize Upper Limit's organization by function.

Accepted Answer

A) True 
 B)False

Question 16

A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of production, and two design engineers.

Accepted Answer

A) True 
 B)False

Question 17

Farm to Table Foods is a wholesaler serving grocery stores nationwide. Communications technology allows Farm to Table to work closely with its suppliers and customers in real time. Networking allows these organizations to operate more efficiently.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following describes a group of employees from different departments working together on a long-term basis?

Accepted Answer

A)   focus group
B)   mixed function groups
C)   cross-functional self-managed teams
D)   intrapraneurial teamsE) A) and D)
F) None of the above

Question 19

Sage is an experienced manager with excellent communications skills. The workers in her team are highly skilled and capable of doing their work with very little direct supervision. Sage's span of control is likely to be quite broad.

Accepted Answer

A) True 
 B)False

Question 20

Most companies are no longer self-sufficient or self-contained.

Accepted Answer

A) True 
 B)False

Exam 8: Structuring Organizations for Todays Challenges

Competitive benchmarking compares a company's practices, processes, and products against others in its industry, with the goal of doing it better than the competition.

Correct AnswerverifiedShow Answer

The informal organization is created by the decisions of top management.

Correct AnswerverifiedShow Answer

Weber was a strong proponent of bureaucracy.

Correct AnswerverifiedShow Answer

Farm to Table Foods is a wholesaler serving grocery stores nationwide. Communications technology allows Farm to Table to work closely with its suppliers and customers in real time. Networking allows these organizations to operate more efficiently.

Correct AnswerverifiedShow Answer

Currently, Mucho Dinero is organized into specialized departments such as marketing, finance, production, and personnel. These departments are designed to allow people with similar skills and expertise to work together. This approach is known as ________ departmentalization.

Correct AnswerverifiedShow Answer

A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of production, and two design engineers.

Correct AnswerverifiedShow Answer

Economies of scale

Correct AnswerverifiedShow Answer

Small business organizations lack the size required to reap the benefits of labor specialization.

Correct AnswerverifiedShow Answer

Cross-functional teams consist of employees from different departments who work together on a long-term basis.

Correct AnswerverifiedShow Answer

On Air Studios organizes its jobs by activity, such as production, marketing, accounting, and finance. On Air Studios applies ________ departmentalization in order to maximize their efficiency.

Correct AnswerverifiedShow Answer

The driving force behind the change in business organizations is the change in consumer expectations.

Correct AnswerverifiedShow Answer

Sage is an experienced manager with excellent communications skills. The workers in her team are highly skilled and capable of doing their work with very little direct supervision. Sage's span of control is likely to be quite broad.

Correct AnswerverifiedShow Answer

Most companies are no longer self-sufficient or self-contained.

Correct AnswerverifiedShow Answer

Which of the following describes a group of employees from different departments working together on a long-term basis?

Correct AnswerverifiedShow Answer

Digital natives, those who grew up with the Internet and other devices, are an important customer group that most businesses want to reach.

Correct AnswerverifiedShow Answer

Cross-functional teams serve as advisory committees offering their expertise to line decision makers.

Correct AnswerverifiedShow Answer

When we experience economies of scale, this means that as production levels rise (we make more of something), the cost of supplies and the cost of labor that go into the production go down.

Correct AnswerverifiedShow Answer

Top management at Upper Limits, Inc. looks to encourage communication between different departments to stop employees from becoming narrow specialists. The best way to reach these goals is to departmentalize Upper Limit's organization by function.

Correct AnswerverifiedShow Answer

Outsourcing involves assigning various functions to outside organizations.

Correct AnswerverifiedShow Answer

Bass Clef Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that Bass Clef departmentalizes by

Correct AnswerverifiedShow Answer

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