Principles of Management – MGT 301 Chapter 3 Quiz 1

Principles of Management – MGT 301

Chapter 3 Quiz

1.Every Saturday Mrs. Jones and hundreds of other shoppers visit ABC Market, a grocery store, to buy food for their home or business. These shoppers are _____ to ABC. (3-3)

customers

suppliers

partners

competitors

community allies

 

2. Sustainability is economic development that ____. (3-5)

meets future needs without compromising present needs

meets present needs without compromising the ability of future generations to meet their own needs

produces greater diversity

generates greater profitability

is a idea of Frank and Lillian Gilbreth that proposes how to cut costs but increase efficiency

 

3. Warm Hearts is a nonprofit organization that brings warm meals to older adults and runs errands for its clients; the board of that nonprofit is called the _____. (3-2)

overall board

nonprofit trustees or the directors

daily oversight committee

board of trustees or board of regents

strategic board

 

4. New developments in methods for transforming resources into goods or services are _____ forces. (3-3)

demographic

media

sociocultural

technological

political-legal

 

5. An organization's internal stakeholders consist of ___. (3-2)

customers, families of employees, and employees

board of directors, employees, and suppliers

board of directors, customers, and owners

board of directors, employees, and owners

competitors, the community, and suppliers

 

 

 

 

6. Alonzo, the president of the student class and honor society, has been very busy and did not study for the history test. Although Alonzo is very confident, he realizes that he probably will not do well on the exam and has talked himself into cheating because he feels it is worth it to maintain his strong GPA, which he will need to be accepted by a good college. He tells his friend, "I don't usually do this, but I really have to do it." The cause of Alonzo's behavior is ____. (3-4)

motivated blindness

the cheating requirement

the holier-than-thou effect

the deception effect

a depression disorder

 

7. Greg, the president of an IT company, purchased a large number of shares of company stock before the news of a new revolutionary computer processor was made public that will cause company profits to increase considerably. This action by Greg could be considered an example of _____. (3-4)

insider trading

ethical behavior

a Ponzi scheme

information abuse

internal information

 

8. Mr. Jones, a wealthy businessman who made his fortune in the oil industry, understands the importance of a college education, so he has given over $10 million over the last several years to colleges and universities. This is an example of _____. (3-5)

mentoring

philanthropy

a servant leader

sustainability

corporate governance

 

9. After more than 100 years in business, Don, the president of a successful family-owned company, wants to give back to the people of the community for the many years of success that they have given to my father and me. He decides to donate a significant portion of profits to a charity every year. What Don's company is doing is an example of ___. (3-5)

legal responsibility

corporate social responsibility

economic responsibility

responsibility code of ethics

corporate governance

 

10. Patsy, a nurse, has decided to start a home health care service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Patsy is focusing her marketing efforts on the older adult population; as she does this, she is involved with the _____ environment. (3-3)

natural capital

task

general

strategic allies

internal

 

11. Changes in the economic, political, legal, and technological global system that may affect an organization are ______ forces. (3-3)

international

technological

demographic

internal stakeholder

local

 

12. Corporate governance is the system ____. (3-6)

of governing a company so that the interests of corporate owners and other stakeholders are protected

of monitoring an industry, such as attorneys, to ensure ethical practices

of monitoring corporate political donations

that protects citizens against unethical state government

of governing an industry, such as the trucking industry, to protect customers

 

13. The employees of Mom's Pizza, a local pizza restaurant, feel that the owners and managers really try to follow the ethical policies outlined in their company's code of ethics. Pete, a cook, said that "Just today, Joe, our manager, called our supplier to let them know we received an extra case of tomatoes that we did not pay for. And they do this type of thing almost every day." Mom's Pizza maintains a(n) _____. (3-4)

holier-than-thou atmosphere

profitable climate

synergy environment

dilemma-free climate

ethical climate

 

14. Ole McDonald, a successful farm equipment supply company in the Midwest, joined with A-Plus Supply, a national hardware and home retailer, so Ole McDonald can open stores in other regions and A-Plus can now offer a high-quality product in the farm community. This is an example of a ___ relationship. (3-3)

supplier

strategic allies

customer

distributor

competitor

 

15. As the CEO of a company that produces products for schools, Hannah feels that her company needs to not only produce a profit but also do things that benefits society. This type of company attitude is an example of ____. (3-5)

social responsibility

a green attitude

moral rights

corporate philanthropy

individual responsibility

 

 

 

16. What mechanism is used to provide a systematic assessment of an organization's triple bottom line? (3-1)

financial audit

social audit

diversity program

code of ethics

sustainability program

 

17. With recent reports of identity theft, Mr. Jones, the CEO of a construction company, is concerned about his employees' privacy, and because of recent accidents on the job, he is also worried about the safety of his workers. Mr. Jones's concerns with privacy and health and safety are outlined in the _____ approach to deciding ethical dilemmas. (3-4)

utilitarian

justice

moral rights

individual rights

impartial

 

18. The city government of Pleasantville promised significant tax breaks to a large retailer if it expanded its presence, which would result in nearly 200 new local jobs. However, the retailer found another location better for expansion. As a result, the city of Pleasantville instituted clawbacks by _____. (3-3)

increasing the tax breaks

forcing the retailer to pay large fines

forcing the retailer to unionize

rescinding the tax breaks

boycotting the retailer

 

19. Regulatory agencies that establish ground rules under which organizations may operate are known as ____. (3-3)

government regulators

watch dogs

whistle-blowers

government moderators

interest groups

 

20. The macroenvironment is also known as the ______. (3-3)

general environment

economic environment

diversity source

microenvironment

international arena

 

 

 

 

 

 

21. Tom and his managers are discussing the unemployment, inflation, and interest rate trends that might affect his chain of coffee shops over the next 12 months and the projected growth in the areas where his stores are located. The managers are studying the ______ forces in their organization's general environment. (3-3)

economic

socio-cultural

international

technological

political

 

22. The mass media is considered part of an organization's _____. (3-3)

internal stakeholders

general environment

task environment

distribution network

macroenvironment

 

23. To focus on improving company customer service this year, the CEO outlined a list of stakeholders to concentrate on: distributors, local communities, and the mass media. These three groups are ____. (3-3)

interest groups

external stakeholders

internal stakeholders

developmental stakeholders

vital stockholders

 

24. The relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior are known as ____. (3-4)

fairness factors

values

morals

ethical advantages

norms

 

25. Business scholar Archie Carroll suggested that the first and primary responsibility of an organization in the global economy is to ___. (3-5)

have a green attitude

obey the law of host countries as well as international law

be ethical in its practices

be a good global corporate citizen, as defined by the host country's expectations

be profitable consistent with expectations for international business

 

26. Local communities are stakeholders of organizations because communities _____. (3-3)

rely on the products the companies produce

rely on the tax base from companies, and their employee payrolls, to thrive

wish to join forces with organizations to create strategic alliances

need the publicity of national organizations

enjoy the changes that progress tends to bring

27. Since the 1950s, the percentage of the U.S. labor force represented by unions has _____. (3-3)

fallen to nearly zero

remained unchanged

steadily increased

rapidly increased

steadily declined

 

28. According to researcher Daniel Pink, when employees feel a sense of purpose—when their work has meaning—workers _____. (3-5)

are more efficient, loyal, and creative

eliminate all company fraud

will continue to work past the age of 90

tend to focus on short-term happiness

sell more product

 

29. When a food distributor looks at changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America, it is looking at the ____ forces. (3-3)

legal

technological

demographic

economic

political

 

30. Amy, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company "that cares." So when asked to be on its board of directors, she gladly accepted the invitation. As a member of the board, Amy will be involved with the organization's ____. (3-2)

overall strategic goals and approval of major decisions

daily specific company goals and management of a specific department

daily company management and employee supervision

overall strategic goals and global HR management

oversight of sales and marketing

 

31. Joe, a lobbyist who represents a certain industry, is meeting with several members of Congress to try to exert political influence by contributing funds to the lawmakers' election campaigns. Joe also is involved in a letter-writing campaign to promote his cause. Joe represents a ____. (3-3)

task force

government regulator

focus group

special-interest group

strategic alliance

 

 

 

 

32. When Bernard Madoff used money from newer investors to pay off older ones, this was an example of ____. (3-4)

rev: 02_17_2016_QC_CS-42584

insider trading

illegal lobbying

an ethical climate

an ethical dilemma

a Ponzi scheme

 

33. Phillip said to a dear friend, "I am fed up with my company's continual disregard for human life and the environment. They just continue to secretly dispose of hazardous chemicals into a nearby stream. I don't know how they get away with it! I am going to tell somebody today." Phillip's decision to tell somebody about his company's actions is an example of a(n) ______. (3-4)

backstabber

invisible hand

whistle-blower

ethics officer

preconventional manager

 

34. Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because this helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because this is also in the farmer's best long-term interests; this is reflected by the _____ approach to deciding ethical dilemmas. (3-4)

utilitarian

moral-rights

individual

group

justice

 

35. Jane, a successful store manager, leads her employees by encouraging them and showing that she genuinely believes in them, and she encourages group and team efforts. Jane manages at Kohlberg's _____ level of personal moral development. (3-4)

postconventional

nonconventional

preconventional

conventional

unconventional

 

36. Rebecca and Donna, owners of Fine Coffee and Pastry Shop, are concerned because Panera Bread is opening a new store just one mile from their shop. Rebecca and Donna know that Panera will be offering similar products; therefore, Panera Bread will be a ____ to Rebecca and Donna. (3-3)

strategic ally

distributor

internal stakeholder

competitive ally

competitor

 

37. The justice approach to deciding ethical dilemmas is guided by _____.

what will result in the individual's best long-term interests

respect for impartial standards of fairness and equity

respect for society and the environment

increasing profits and workplace diversity

respect for the fundamental rights of human beings

 

38. Don has managed several restaurants for over 50 years and is close to retirement. With his maturity, his decisions are sound, based on solid, proven values. Don tends to be an independent thinker who focuses on empowering his employees. Don manages at Kohlberg's ______ level of personal moral development. (3-4)

unconventional

preconventional

nonconventional

conventional

postconventional

 

39. On an organization's board of directors, inside directors ____; outside directors _____. (3-6)

are supposed to be elected from outside the organization; may be members of the firm

are always retired executives; typically are employees

may be members of the firm; are supposed to be elected from outside the firm

must work for the company; are also members of the firm

must work for the organization; are paid members of the organization

 

40. When individuals who want to start a new venture obtain many small amounts of money from many people, this type of financing is called ____. (3-3)

crowdfunding

venture-funding

multifunding

angel-financing

duplicating

 

41. Ethics are _____. (3-4)

behavior accepted as "right"

standards of right and wrong that influence behavior

a type of written code for an organization

rules to be enforced in an organization

influences arising from changes in the characteristics of a population

 

42. When talking with Shane, a sales manager, she remarked that typically, her employees sincerely and positively overstate their job performance and abilities. This is an example of the ____ effect.  (3-4)

cheating

holier-than-thou

overstatement

fudging

motivated blindness

43. Don was recently promoted, and his salary increase includes retirement investment options, so he has decided to get involved with an ESOP. This means Don ____. (3-2)

will be buying shares of his company's stock

will participate in an Externship Supervisors' Oversight Plan

is in charge of an investment group

will be on the company's board of directors

is now part of the company's external stakeholders

 

44. A formal written set of ethical standards guiding an organization's actions is a(n) ____. (3-4)

dilemma document

ethical plan

code of ethics

business plan

moral compass

 

45. Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization are ____ forces. (3-3)

financial

technological

political-legal

demographic

socio-cultural

 

46. Marie and Marti are partners who solely own M and M Florist. As owners, they can ____. (3-2)

decide not to pay their stockholders

claim only limited liability

claim an organization as their legal property

avoid claiming any legal responsibility for M and M

claim limited partnership

 

47. Don, the owner of a fishing business, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ____ performance. (3-1)

social, environmental, and financial

financial, diversity, and environmental

social, effectiveness, and financial

social, synergy, and diversity

marketing, profit, and efficiency

 

 

 

 

 

48. To increase profitability, top management of a national retailer needs to decide if it will close several stores. Management knows that by closing the locations, it will save the company millions of dollars and benefit many stockholder groups and individuals, compared to keeping those stores open and benefiting fewer people. This logic is an example of the ___ approach. (3-4)

moral-rights

utilitarian

individual

justice

majority

 

49. For organizations' board of directors, and in particular, their oversight of the CEO, the biggest complaint appears to be _____. (3-6)

the lack of corporate social responsibility

the ethical code of management

the independence of the directors

the focus on profit above employee satisfaction

the lack of interest in company matters

 

50. The macroenvironment includes these forces: _______. (3-3)

economic, technological, sociocultural, diversity

economic, technological, sociocultural, demographic, political-legal, international

diversity, microenvironment, sociocultural, demographic, political-legal

international, demographic, diversity, family, culture, technology

globalism, technological, sociocultural, demographic, microenvironment

 

51. Americans driving less and young people having less interest in cars are examples of trends in society known as ____ forces. (3-3)

political

financial

diversity

legal

sociocultural

 

52. The Sarbanes-Oxley Act of 2002 established requirements for ____, and for noncompliance, penalties of ______. (3-4)

proper financial record keeping for public companies; as much as 25 years in prison

proper financial record keeping for government organizations; as much as 25 years in prison

code of ethics guidelines for organizations; as much as 2 million dollars

proper financial record keeping for private companies; as much as 25 years in prison

all corporate financial records to be made public; as much as 2 million dollars

 

 

 

53. ABC Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply's janitorial supply and equipment store. ABC relies heavily on Best Supply to help sell its goods and services to customers. Best Supply is a(n) ____ for ABC Brothers' products. (3-3)

customer

account ally

subsidiary

distributor

competitor

 

54. Joe, owner of ABC Electronics, just discovered that his trusted friend Paul, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Joe must decide whether to publicly ignore his friend's actions and avoid bad publicity for the firm, an example of ____. (3-4)

a whistle-blower

a synergy factor

a social audit

an ethical dilemma

corporate governance

 

55. The marketing director informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products to increase market share because they are part of the ______ environment of the company. (3-3)

strategic

task

focused

external

outlying

 

56. The plant manager of a factory that produces tires told Sal, the purchasing manager, to approach the suppliers of the plant to discuss discounts. A supplier to that factory ____. (3-3)

helps Sal's company sell its goods and services to customers

competes for customers or resources

provides raw materials, services, equipment, labor, or energy

rescinds tax breaks when firms don't deliver promised jobs

joins forces with Sal's plant to achieve advantages neither can perform as well alone