1-1.

The function of management that determines the objectives of business and how best to achieve
them is called:
a. planning.
b. organizing.
c. leading.
d. controlling.

1-2. The function of management that involves monitoring performance, comparing results with
planned objectives, and providing feedback and, if necessary, correction is called:
a. planning.
b. organizing.
c. leading.
d. controlling.

1-3. The function of management concerned with demonstrating by example and by teaching, directing,
and motivating employees to perform effectively to achieve the objectives of the organization is called:
a. planning.
b. organizing.
c. leading.
d. controlling.

1-4. The function of management that arranges appropriate staffing and assigns responsibilities and
tasks to individuals and groups, in order to best achieve the objectives established by planning is called:
a. planning.
b. organizing.
c. leading.
d. controlling

1-5. Which of the following is a unique feature of Canada which has an influence on Canadian
management?
a. individual and family incomes in Canada far exceed those in most of the rest of the world.
b. geography.
c. heavy dependence on foreign trade.
d. all of the above.

1-6. The titles Chairman, CEO and COO are examples of:
a. top management.
b. middle management.
c. first line management.
d. entrepreneur.

1-7. The ability to think in abstract terms, to analyze and diagnose problems, and to make use of lateral
thinking is called:
a. analytical skills.
b. conceptual skills.
c. decision-making skills.
d. communication skills.

1-8. Which of the following is not an example of a decisional role?

a. resource allocator.
b. disturbance handler.
c. negotiator.
d. figurehead.

1-9. According to Mintzberg, managerial roles can be broken down into interpersonal, informational,
and
a. liaison.
b. decisional.
c. technical.
d. conceptual.

1-10. The theory that there is one best way to do any particular job, that it can be ascertained and taught
to employees, and that workers are motivated primarily by money is called:
a. Theory Z.
b. classical organizational theory.
c. bureaucracy.
d. scientific management.

1-11. A management approach based on formal organizational structure with set rules and regulations
that relies on specialization of labour, an authority hierarchy and rigid promotion and selection criteria
is called:
a. Theory Y.
b. bureaucracy.
c. classical organizational theory.
d. human relations approach.

1-12. Theory Z was introduced by:

a. Mary Parker Follet.
b. Elton Mayo.
c. William Ouchi.
d. none of the above.

1-13. The theory of management that presupposes that for every problem there is a "best" answer and
that the manager's task is to find that answer and apply it universally is called:
a. universalist management approach.
b. contingency management approach.
c. contemporary management.
d. Theory Z.

1-14. Michael Porter, in explaining corporate strategy, identified four generic strategies. Which of the
following is not one of these strategies?
a. cost leadership.
b. differentiation.
c. cost focus.
d. feedback

1-15. Conceptual skills are most important to what level of management?

a. first line managers.
b. middle managers.
c. functional manager.
d. top managers.

True/False Quiz

1-1. Cultural differences from country to country have a profound impact on which management
approaches will be effective in a particular location.
True / False

1-2. Efficiency is doing the right thing, at the right time, to achieve the right results.
True / False

1-3. Middle managers are responsible for developing long range plans for the business.
True / False

1-4. First line managers coordinate the work of others who aren't themselves managers.
True / False

1-5. An example of a middle manager is a manager of a retail store.

True / False

1-6. Conceptual skills are extremely critical to first line managers.

True / False

1-7. An example of a figurehead role would be the manager who "makes an appearance" at the wedding
of a subordinate's daughter.
True / False

1-8. The liaison role involves observing the internal and external environments to discover information,
changes, opportunities, and problems that affect the work.
True / False

1-9. Frederick Taylor has been called "the father of scientific management."
True / False

1-10. Henri Fayol is associated with "bureaucracy."

True / False

1-11. The Hawthorne Effect is associated with the "Behavorial Science Approach."
True / False

1-12. The systems approach to management consider organization and management problems by
focusing on the interaction of the individual components to form a functional whole.
True / False

1-13. Tom Peters and Robert Waterman wrote "In Search of Excellence."
True / False

1-14. W. Edwards Deming is known for developing the concept of total quality management.
True / False

1-15. "Zero Defects" means that managers must learn that goods cannot be produced with zero defects.
True / False

2-1. Which of the following is not an example of an internal environment?

a. employees.
b. office and plant layout.
c. reward system.
d. competition.

2-2. An organization's __________ embraces the behavior, rituals, and shared meaning held by
employees that distinguishes that organization from all others.
a. external environment.
b. culture.
c. dominant culture.
d. ethics.

2-3. Commitment, competence, and consistency are three distinct characteristics that result in
____________.
a. values.
b. organizational socialization.
c. culture building.
d. attitudes.

2-4. The personal convictions that a specific mode of conduct is personally or socially preferable to
another mode of conduct is called:
a. values.
b. input.
c. output.
d. none of the above.

2-5. According to the text, which of the following designates the correct sequential progression:
a. values, attitudes, beliefs, and behavior.
b. values, beliefs, attitudes, and behavior.
c. values, behavior, beliefs and attitudes.
d. values, beliefs, behavior and attitude.

2-6. Applying rationality to understand the sources and possible effects of environmental factors and to
determine the organization's opportunities and threats is called:
a. work analysis.
b. statistical analysis.
c. environmental analysis.
d. none of the above.

2-7. Which of the following is not true of the Canadian workforce?

a. the workforce is aging.
b. by 1992, 3/4 of women under the age of 55 were employed for wages outside the home.
c. educational levels are decreasing.
d. an increasing number of employees at all levels come from different cultures.

2-8. Which of the following is not one of the three main economic regions of the world?
a. North America.
b. European Union.
c. South America.
d. Southeast & East Asia.

2-9. The basic areas of governmental control include:

a. investigation and publicity.
b. legislation.
c. regulatory enactments.
d. all of the above.

2-10. A company executive concerned with the disposal of his company's waste is:
a. being sensitive to ecological issues.
b. using a systems approach.
c. reflecting a concern for the political-legal environment.
d. A & C.
2-11. Which of the following is not part of the point of view espoused by Milton Friedman?
a. companies must produce goods efficiently.
b. companies must maximize profits.
c. companies must be concerned with the environment.
d. A & B.

2-12. The practices of a company for which it is accountable in relation to other parties is called:
a. social responsibility.
b. code of ethics.
c. values.
d. culture.

2-13. Actions that exceed social obligation and social reaction are defined as:
a. technological innovation.
b. values.
c. social responsiveness.
d. a code of ethics.

2-14. Social responsiveness is based on the premise that:

a. if management allocates profits to social improvement activities, it is abusing its authority.
b. organizations should be involved in preventing, as well as solving, social problems.
c. business organizations are perhaps the most effective problem solving organizations in a capitalistic
society.
d. B & C.

2-15. Standards of conduct that are reflected in behaviour that is fair and just, including but also
extending over and above what is required by laws and regulations are:
a. ethics.
b. morals.
c. values.
d. none of the above.

2-1. Technology is an example of an external environment.

True / False

2-2. An organization's core values shared by a majority of its members is called its "subculture."
True / False

2-3. Organizational socialization is the process through which a newcomer is transformed into an
accepted member of the team.
True / False

2-4. Organizations and their environments are distinct entities, neither affecting each other.
True / False
2-5. The Canadian workforce has remained fairly static over the last fifty years.
True / False

2-6. More and more organizations are making provisions to allow employees to cope with personal
issues such as elder care and child care.
True / False

2-7. The advent of computers has made it difficult to cause a measurable increase in the "productivity"
of white collar, managerial and professional employees.
True / False

2-8. The "euro" replaced the Mexican peso.

True / False

2-9. Management theories and principles apply only to large corporations, not small businesses.
True / False

2-10. Technology has created new ethical dilemmas.

True / False

2-11. Technological innovation involves all of those activities that translate technical knowledge into a
physical reality that can be used to achieve a purpose.
True / False

2-12. The ecological environment consists of our natural surroundings.

True / False

2-13. Business awareness of its social responsibility currently is sufficient.

True / False

2-14. Most companies have training programs in ethical behavior.

True / False

2-15. The encouragement by corporations of their employees' participation in a local fund raising
campaign is an example of a socially responsible business activity.
True / False

3-1. A decision for repetitive or routine problems for which the responses have been already been
decided and been known to the person who will make the decision is called:
a. programmed.
b. non programmed.
c. strategic.
d. professional.

3-2. Non programmed decisions are most likely to be made by:

a. middle management.
b. lower management.
c. top management.
d. supervisory management.

3-3. A decision made before the occurrence of an external or internal change is called a _________
decision.
a. reactive.
b. proactive.
c. intuitive.
d. systematic.

3-4. A decision based primarily on an almost unconscious reliance on the decision maker's experience
without a conscious rational analysis having been made is called:
a. systematic.
b. programmed.
c. non programmed.
d. intuitive.

3-5. ____________ decision making is an organized, exacting, data-driven process.

a. systematic.
b. programmed.
c. non programmed.
d. intuitive.

3-6. The first step in decision making is to:

a. establish priorities.
b. establish specific goals and objectives.
c. identify and define the problem.
d. determine courses of the problem.

3-7. Problems are usually of the following type(s):

a. crisis problems.
b. routine problems.
c. problems of failing to take advantage of opportunities.
d. all of the above.

3-8. _____________ refers to the seriousness of a problem's effects.

a. urgency.
b. impact.
c. growth tendency.
d. none of the above.
3-9. The concept that a manager's freedom to make totally rational decisions is restricted by internal
and external environmental factors and by the manager's own characteristics and decision-making
ability is called:
a. bounded rationality.
b. values.
c. objective rationality.
d. A & B.

3-10. Several studies have examined the effect of selected personality variables on the decision making
process. These studies generally have focused on _____________ variables.
a. personality.
b. situational.
c. interactional.
d. all of the above.

3-11. A group brought together from different functions and levels of an organization to consider ways
in which the organization's activities could be improved is called a(n):
a. quality team.
b. process improvement team.
c. task team.
d. unit team.

3-12. A process in which a group of individuals generate and state ideas, but in which the rules prohibit
questioning, evaluating, or rejecting any ideas, even if they seem ridiculous is called:
a. delphi technique.
b. brainstorming.
c. nominal group technique.
d. bounded rationality.

3-13. A process for arriving at an evaluation of decisions, in which selected individuals are asked to
respond individually to key questions about a problem, then are provided with a summary of the
responses, all members have given and invited to respond again is called:
a. delphi technique.
b. brainstorming.
c. nominal group technique.
d. bounded rationality.

3-14. Which of the following is not an attribute of useful information?

a. accessible.
b. timely.
c. relevant.
d. none of the above.

3-15. An employee in a company is working out a schedule to ensure that all the sales staff arrive at the
company conference on time. This is a:
a. non programmed decision.
b. programmed decision.
c. problem decision.
d. crisis decision.

3-1. A decision-making process is a series or chain of related steps or interconnected stages that lead to
an action or to an outcome and assessment.
True / False

3-2. Programmed decisions are more likely to occur at the top management level.
True / False

3-3. A company decision to diversify into new products and markets is an example of non programmed
decisions.
True / False

3-4. Preventive maintenance is reactive.

True / False

3-5. A manager making a decision to improve post-sale support based on a survey is an example of
systematic decision making.
True / False

3-6. The first seven steps in the decision making process are the decision formulation stages while the
last two steps are the decision implementation process.
True / False

3-7. According to the text, the Swiss market share of watch making collapsed because of "defining
problems in terms of assumed solutions."
True / False

3-8. Growth tendency refers to the degree of pressure on time for a prompt decision.
True / False

3-9. Benchmarking is one source of alternative solutions that is coming into wider use.
True / False

3-10. The firing of an employee may cause cognitive dissonance within a company.
True / False

3-11. The nominal group technique is only used in industries.

True / False

3-12. A major advantage of the Delphi technique over other group decision-making techniques is that
bias effects of group interactions are eliminated.
True / False

3-13. MIS is used to collect data, store and process those data, and then present useful and timely
information to managers.
True / False

3-14. In the last five years, the amount of computer power a dollar can buy has decreased.
True / False

3-15. Escalation of commitment is a positive force in a company.

True / False

4-1. Which of the following is incorrect?

a. planning is the part of the management process that attempts to define the organization's future.
b. the approach to planning can differ greatly from manager to manager.
c. planning is a one time event.
d. planning is thinking out in advance the sequence of actions to accomplish a proposed course of
action.

4-2. A system in which responsibility for planning lies with the highest level is called:
a. centralized planning.
b. decentralized planning.
c. strategic planning.
d. flexible planning.

4-3. A system in which the responsibility for planning lies with employees at several levels of the
organization is called:
a. centralized planning.
b. decentralized planning.
c. strategic planning.
d. flexible planning.

4-4. Which of the following is not a benefit of planning?

a. coordination of effort.
b. preparation for change.
c. development of standards.
d. none of the above (all are benefits).

4-5. The first step in defining the competencies required for each job is to define the mission for each
job. The next step is to:
a. define performance standards for each major outcome.
b. design and deliver appropriate training.
c. describe the major outcomes required to achieve the mission.
d. identify known barriers to achieving the performance standards.
4-6. Comprehensive, long range planning, focusing on broad enduring issues is called:
a. operational planning.
b. strategic planning.
c. niche planning.
d. none of the above.

4-7. The strategy of setting low prices to rapidly create a mass market is called:
a. strategic planning.
b. price penetration strategy.
c. prestige strategy.
d. skimming strategy.

4-8. The strategy of setting high prices relative to the competition on the basis of high quality or an
attractive image on the market is called:
a. skimming strategy.
b. price penetration strategy.
c. prestige strategy.
d. niche strategy.

4-9. The first step in the planning process is to:

a. determine goals and objectives.
b. allocate resources.
c. establish an action plan.
d. assess current conditions.

4-10. Canada Trust's statement "To be the best Personal Financial Company" is an example of a:
a. goal.
b. objective.
c. mission statement.
d. all of the above.

4-11. Which of the following is not a characteristic of a good mission statement?

a. achievable.
b. motivating at all levels.
c. strategies that are general.
d. long term.

4-12. Strategic objectives are set by:

a. middle management.
b. top management.
c. line management.
d. all of the above.

4-13. Which of the following objectives would be most difficult to measure?

a. social responsibility.
b. profitability objectives.
c. financial objectives.
d. quality objectives.

4-14. A planning process that introduced the concept of planning as a cycle that forms the basis for
continuous improvement is called:
a. time based planning.
b. plan, do, check, act.
c. planning for continuous improvement.
d. none of the above.

4-15. Which of the following was not noted by Joseph M. Juran as a negative outcome resulting from a
lack of attention to quality in the planning process?
a. threats to society.
b. costs of poor quality.
c. loss of sales due to competition in quality.
d. loss of sales due to inferior service.

4-1. Planning guarantees organizational success.

True / False

4-2. Cycle time refers to the length of time required to complete a process.
True / False

4-3. Sam Walton stated that Wal-Mart's key to success was "economy of scale."
True / False

4-4. According to the text, planning is the key to ensuring an adequate business response to global
competition.
True / False

4-5. Strategic planning is usually carried out by top management.

True / False

4-6. A niche strategy is only applicable to products and not to organizations that provide services.
True / False

4-7. Operational planning covers a longer period of time than tactical planning.
True / False

4-8. A standing plan has a relatively narrow scope and goals and a clear time frame.
True / False

4-9. The last two steps in the planning process are implementation and control.
True / False
4-10. Goals must be specific.
True / False

4-11. According to the text, the terms goal and objectives are interchangeable.
True / False

4-12. Measuring performance relative to products, markets and customer service are called quality
objectives.
True / False

4-13. A policy is a statement that reflects a plan's basic values and provides guidelines for selecting
actions to achieve objectives.
True / False

4-14. According to the text, Proctor & Gamble use the PDCA cycle to manage environmental quality
efforts.
True / False

4-15. Planning for continuous improvement is based on the idea that there is a single ultimate solution
that will meet customer demands permanently.
True / False

5-1. Peter R. Scholtes in his book "The Team Handbook" identified four stages of development. Which
of the following is stage 1?
a. norming.
b. storming.
c. forming.
d. performing.

5-2. The process of structuring both human and physical resources to accomplish organizational
objectives is called:
a. organizing.
b. formalization.
c. centralization.
d. departmentalization.

5-3. The framework of interrelationships among individuals and departments that describe relationships
of reporting and accountability is called:
a. chain of command.
b. functional arrangement.
c. specialization.
d. organizational structure.
5-4. Which of the following is not a strength of scientific management?
a. high productivity.
b. control by management.
c. predictable scheduling.
d. lower cost.

5-5. Which of the following teams is formed for the propose of planning, implementing and/or
evaluating projects?
a. task teams.
b. project teams.
c. communication teams.
d. quality teams.

5-6. A process of retaining authority in the hands of a few high level managers is called:
a. centralization.
b. decentralization.
c. formalization.
d. none of the above.

5-7. Which of the following is not an advantage of decentralization?

a. management develop their own decision-making skills.
b. managers can exercise more autonomy.
c. managers are more motivated.
d. none of the above.

5-8. The formal channel that defines the lines of authority and accountability in a hierarchical
organizational structure is called:
a. line positions.
b. the chain of command.
c. staff positions.
d. line and staff positions.

5-9. A position to which decision-making authority has been delegated within the chain of command
from senior managers to front line production or service employees is called.
a. line position.
b. staff position.
c. departmentalization.
d. line & staff positions.

5-10. Which form of departmentalization would be most appropriate in companies that have distinctly
different product lines?
a. functional departmentalization.
b. product departmentalization.
c. customer departmentalization.
d. geographical departmentalization.
5-11. An organizational structure in which more than one type of departmentalization is employed is
called:
a. mixed departmentalization.
b. process departmentalization.
c. matrix form.
d. centralization.

5-12. A cross functional organizational structure in which individuals performing one function, such as
accounting, are to the senior executive in finance and also to another senior executive in a geographical,
product, or customer department is called:
a. line organization.
b. matrix form.
c. informal organization.
d. bureaucratic organization.

5-13. Determining the number of people who are accountable to a single manager refers to:
a. chain of command.
b. degree of centralization.
c. span of control.
d. degree of specialization.

5-14. Dividing Canada into the Maritimes Region, Western Canada, Ontario & Quebec would be
departmentalization by:
a. customer.
b. location.
c. function.
d. product.

5-15. Design engineers at Ford advise production personnel about what products to use in making a
product. This is an example of ____________ authority.
a. staff.
b. group.
c. line.
d. line & staff.

5-1. A trend in business today is an organizational structure that includes teams of employees.
True / False

5-2. Strategic planning specifies what will be accomplished and when; organizational structure
specifies who will accomplish what and how it will be accomplished.
True / False

5-3. According to the text, General Motors illustrated how important structural problems are to the
success of an organization.
True / False
5-4. Craftsmanship is based on principles similar to those prescribed by Taylor in his scientific
management theories.
True / False

5-5. Quality circles tend to be more successful in Japan than the U.S. because of cultural norms.
True / False

5-6. For empowerment of employees to be successful, employees must be given educational training.
True / False

5-7. The basic rule in "a chain of command" is that an individual should report to no more than two
individuals.
True / False

5-8. Staff positions provide support and advice to those in line positions.
True / False

5-9. Departmentalization by municipality, province, region, country or international region is called

geographical departmentalization.
True / False

5-10. Customer departmentalization is best suited to organizations that have a few extremely large
customers or that serve diverse groups.
True / False

5-11. A flat organization exists when a large number of employees report to one manager.
True / False

5-12. The most common bases for departmentalization are function, product, customer and geography.
True / False

5-13. A workteam is a group of employees who work together to pursue common objectives.
True / False

5-14. Matrix organizational forms have decreased in popularity as organizations have become more
complex and more decentralized.
True / False

5-15. According to the text, UPS & Federal Express are examples of employee empowerment.
True / False

6-1. An individual who is able to exert leadership and to manage an operation is called a:
a. leader.
b. leader-manager.
c. manager.
d. first line supervisor.

6-2. The capacity to influence people and accomplish desired objectives is called:
a. power.
b. leadership.
c. authority.
d. status.

6-3. The ability to influence people through granting or withholding benefits that are of interest to them
is called.
a. reward power.
b. coercive power.
c. export power.
d. reference power.

6-4. Coercive power may occur in which of the following organizations?

a. service firm.
b. non-profit organization.
c. manufacturing firm.
d. all of the above.

6-5. Mr. X is the only person in the company with expertise in the E-Commerce field. This source of
power is called:
a. reward power.
b. knowledge power.
c. reference power.
d. none of the above.

6-6. In which of the following organizations is reference power more likely to be evident?
a. telecommunication business.
b. religious organization.
c. service organization.
d. baseball team.

6-7. A leadership theory that focuses on the traits of those who have assumed powers and who are
considered to be effective is called
a. trait theories.
b. behavorial theories.
c. contingency theories.
d. structural theories.

6-8. Michael is a type of manager who is concerned primarily with accomplishing goals and objectives
and concentrates on the task itself. His behavioral style is called:
a. authoritarian.
b. democratic.
c. task oriented.
d. people oriented.

6-9. The recognition that task-oriented and people-oriented behavioral styles are important and that
people have different orientations that they bring to the management process is the result of the
research of:
a. Hersey & Blanchard.
b. Fieldler.
c. Blake & McCanne
d. none of the above.

6-10. An approach to leadership in which the leader's behavior is first categorized on a scale from task
orientation to people orientation, and efforts are made to find a work situation to which that particular
style is best suited is called:
a. Hersey-Blanchard theory.
b. Vroom-Jago model.
c. Fielder's LPC theory.
d. path goal theory.

6-11. In the Hersey-Blanchard situational leadership model, the authors suggest that the right mix of
leadership style is best found by focusing on which characteristic?
a. intelligence.
b. motivation.
c. confidence.
d. maturity.

6-12. A leadership theory that postulates that an effective leader is one who develops a variety of
leadership styles, and in each situation applies the style that best fits the circumstance.
a. Vroom-Jago model.
b. path goal theory.
c. LPC theory.
d. none of the above.

6-13. According to path goal theory, which of the following is not a leadership behavior?
a. directive behavior.
b. supportive behavior.
c. participative behavior.
d. none of the above.

6-14. According to the text, Lee Iococca of Chrysler and Pat Farrah of Home Depot exhibited what type
of leadership?
a. transactional.
b. transformational.
c. autocratic.
d. contingency.
6-15. Which of the following are self-management strategies?
a. self-set goals.
b. self observation.
c. self rewards.
d. all of the above.

6-1. Society's understanding of effective leadership has evolved and matured considerably over the
years.
True / False

6-2. According to Harvard psychologist Abraham Zaleznick the terms leader and manager are
interchangeable.
True / False

6-3. Lee Iacocca is an example of a leader-manager.

True / False

6-4. Leadership is both an individual characteristic and a process.

True / False

6-5. Hierarchical or position power is the combination of reference power and expert power.
True / False

6-6. Only recently have researchers begun to study "leadership".

True / False

6-7. According to the text, one review of 12 different leadership studies revealed that there was
consistency among the results obtained.
True / False

6-8. Contingency leadership models state that the leader's behavioral style must be contingent on the
situation if the leader is to be effective.
True / False

6-9. The behaviorial model defines leaders as what they are or seem to be, rather than what they do.
True / False

6-10. Robert R. Blake and Anne Adams McCanne developed the "Leadership Grid" as a vehicle for
leadership behavior assessment and development.
True / False

6-11. Fieldler's LPC theory is an example of contingency leadership.

True / False
6-12. Fieldler's LPC approach and the Vroom-Jago model are based on the assumption that both the
existing situation and the manager's leadership style are fixed and neither will change.
True / False

6-13. Steve Kerr and John Jermier believe that the characteristics of the subordinate, of the task, and of
the organization can reduce the need for traditional leadership.
True / False

6-14. The effective leader of the future must recognize that societal trends encourage the shift towards
greater participation of non-managerial employees in decision-making.
True / False

6-15. Cognitive self-management is a mental process in which the employee creates images and
operations that are consistent with achieving the organization's goals and objectives.
True / False

7-1. The common link between planning and control is:

a. procedures.
b. rules.
c. standards.
d. policies.

7-2. Which of the following is not an aspect of control?

a. to evaluate actual performance.
b. to compare actual performance with goals.
c. to define objectives.
d. to take corrective action.

7-3. Control that focuses on preventing deviation in the quantity and quality of resources used in the
operations of the organization is called:
a. preliminary control.
b. concurrent control.
c. feedback control.
d. quality control.

7-4. Which of the following is not an element of control?

a. specification.
b. production.
c. inspection.
d. none (all are elements of control).

7-5. Directing is the primary responsibility of:

a. top management.
b. first line supervisors.
c. middle management.
d. board of directors.

7-6. Monitoring ongoing operations to ensure that standards are met and objectives are pursued is
called:
a. preliminary control.
b. feedback control.
c. statistical process control.
d. concurrent controls.

7-7. A thermostat in a room sending signals is an example of:

a. preliminary control.
b. feedback control.
c. concurrent control.
d. none of the above.

7-8. A financial statement that reports the organization's assets, liabilities and equity is called:
a. a balance sheet.
b. an income statement.
c. a statement of working capital.
d. a statement of equity.

7-9. The statement that is a summary of an organization's financial performance over a given time
period is called a:
a. a balance sheet.
b. an income statement.
c. a statement of working capital.
d. a statement of equity.

7-10. A control system based on the allocation of all costs, including those not directly related to
production to each unit of product is called:
a. standard cost analysis.
b. statistical process control.
c. quality control.
d. activity-based accounting.

7-11. A random variation from planned outcome that results from occasional and often unpredictable
causes is called:
a. inherent variation.
b. special cause variation.
c. common cause variation.
d. standard variation.

7-12. Which of the following is not a key tool used to gather statistical data?
a. control chart.
b. counters.
c. tracking services.
d. log analyses.

7-13. Which level of management is not involved in quality based management?

a. upper management.
b. middle management.
c. first line management.
d. none (all are involved).

7-14. An ISO 14,000 rating covers:

a. services and service industries.
b. manufacturing industries.
c. the computer hardware and software industries.
d. environmental standards.

7-15. A system of control that focuses on improvements in the system rather than on the way that
employees perform to accomplish improvement and maintenance of a product or service is called:
a. total quality control.
b. total quality management.
c. stable system.
d. statistical process control.

7-1. W. Edwards Deming's "red bead experiment" was designed to show that worker inability to meet
performance objectives is often a function of the system, not of their laziness or lack of skill or
education.
True / False

7-2. Control is both a process and an outcome.

True / False

7-3. The first step in the control process is the production of goods.
True / False

7-4. A standard is a statement of intended outcome.

True / False

7-5. Inspection should only occur at the end of production.

True / False

7-6. The common tool most often used to control financial resources is the budget.
True / False

7-7. The acid test ratio is current assets divided by current liabilities.
True / False
7-8. The current ratio is one of the most frequently used measures of liquidity.
True / False

7-9. Standard costs are considered a major contribution of the scientific management era.
True / False

7-10. Statistical process control is based on the assumption that nature is perfect and therefore variances
will not exist.
True / False

7-11. Inferential statistics are statistics that directly state measured facts.
True / False

7-12. Control charts are often used to determine acceptable variations.

True / False

7-13. The term total quality control was coined by Armand Fergenbaum.
True / False

7-14. Total quality management is similar to total quality control in its customer-focused approach to
control.
True / False

7-15. Studies have shown that Personal Environment Modules (PEM) do not result in increased
productivity.
True / False

8-1. The development and application of employees' skills and energies to accomplish the goals and
objectives of the organization is called:
a. human resource management.
b. human resource planning.
c. selection.
d. recruiting.

8-2. The first step in the human resource planning process is:
a. preparing a job analysis.
b. forecasting future human resource needs.
c. assessing future demand.
d. assessing future supply.

8-3. Human resource planning techniques include the use of some or all of the following:
a. human resource inventories.
b. action plans.
c. control and evaluation.
d. all of the above.
8-4. Which term describes the process of gathering, analyzing and synthesizing information about the
jobs that are being done and any new jobs that are envisaged?
a. job description.
b. job analysis.
c. job specification.
d. human resource inventory.

8-5. The first step in a typical job analysis is to examine the overall organization. The next step is:
a. collect data on jobs.
b. prepare job description.
c. prepare job specification.
d. select jobs to be analyzed.

8-6. A job _________ is a written statement of the job's activities, the equipment required for it, and the
working conditions in which it exists.
a. analysis.
b. specification.
c. design.
d. description.

8-7. Which of the following is a written statement of the skills, knowledge, abilities, and other
characteristics needed to perform a job effectively?
a. job design.
b. job specification.
c. job analysis.
d. job description.

8-8. Job ___________ is the process of describing jobs and arranging their interrelationships.
a. design.
b. specification.
c. analysis.
d. description.

8-9. Increasing the number and variety of tasks assigned to a job is called:
a. job rotation.
b. job enlargement.
c. job enrichment.
d. A & C.

8-10. Which of the following is not a core dimension of a job?

a. skill variety.
b. task identity.
c. task significance.
d. high internal work motivation.
8-11. All of the following are sources of internal recruiting except:
a. job posting.
b. employee recommendations.
c. advertisements.
d. transfers.

8-12. An individualized outline of training, experience and possibly education designed to facilitate an
employee's growth and enhance opportunities for advancement is called:
a. job description.
b. career development plan.
c. assessment sheet.
d. interview form.

8-13. A formal, systematic appraisal of the qualitative and quantitative aspects of an employee's
performance is called:
a. performance evaluation.
b. performance appraisal.
c. performance analysis.
d. orientation.

8-14. Which of the following is not a personal benefit?

a. sick leave.
b. flex benefit.
c. sales bonus.
d. dental plan.

8-15. _____________ is a percentage on the volume of sales.

a. profit sharing.
b. piecework.
c. commission.
d. bonus.

8-1. Peters & Waterman's "In Search of Excellence" stated that companies must treat their workers as
the most important asset.
True / False

8-2. A job analysis may answer the question "What skills are needed to perform the activities?"
True / False

8-3. Dr. Gerald Graham found that personal congratulations from managers had no impact on employee
satisfaction.
True / False

8-4. The last step in a typical job analysis is to prepare a job specification.
True / False
8-5. Job specialization can lead to employees becoming bored and careless, resulting in decreased
productivity and quality.
True / False

8-6. According to the text, job rotation is widely used in industry.

True / False

8-7. Job enrichment addresses non-managerial employees' needs for growth, recognition, and
responsibility.
True / False

8-8. In any approach to job enrichment, managers should first consider the psychological and emotional
steps that are most likely to cause the employees to reach the desired outcomes.
True / False

8-9. Flextime is a plan in which employees can set their own work hours within limits set by
management.
True / False

8-10. The greatest advantage of hiring from within is that it helps maintain employee morale.
True / False

8-11. The responsibility for planning and coordinating training programs within an organization usually
falls to the department managers.
True / False

8-12. One of the more critical factors for a gainsharing plan to succeed is for managers to support and
discuss the plan and for employees to understand and support it as well.
True / False

8-13. The terms pay equity and equal pay are interchangeable.
True / False

8-14. Flex benefit plans never allow employees to take their allotted amounts in cash instead of in
benefits.
True / False

8-15. Progressive discipline is a connected series of escalating disciplinary measures applied to an

employee who is failing to meet the organization's standards and policies.
True / False

9-1. Which of the following is not true with respect to organizational changes in the past decade?
a. many organizations have become leaner.
b. technology has been utilized to increase employee productivity.
c. employee training has helped employees to adapt to and thrive in new work environments.
d. management has centralised decision making and planning giving non-managerial employees
less power in the workplace.

9-2. Which of the following strategies could managers select in their quest for competitiveness?
a. restructuring the portfolio and downsizing headcount.
b. re-engineering processes and continuous improvement.
c. reinventing industries and regenerating strategies.
d. all of the above.

9-3. An example(s) of internal change forces is (are):

a. inadequate communication.
b. problems in moral.
c. market competitors.
d. A & B.

9-4. Employees may resist change for which of the following reason(s)?
a. self interest.
b. habit and personal inertia
c. fear.
d. all of the above.

9-5. Holding back information, playing one person against another and providing slanted information
are examples of:
a. manipulation.
b. implicit and explicit coercion.
c. negotiations.
d. none of the above.

9-6. According to psychologist Kurt Lewin, which of the following is not a stage in the change process?
a. unfreezing.
b. mediating.
c. changing.
d. refreezing.

9-7. The text provides a process-oriented model that suggests six distinct stages at which managers can
make decisions about managing change. Stage 1 is the combination of forces for change. Stage 2 is:
a. diagnosis of problem.
b. management recognition of need for change.
c. diagnosis of points of resistance.
d. selection of intervention methods.

9-8. Which of the following is not an advantage of interviews?

a. adaptive.
b. can obtain large volume of data.
c. source of rich data.
d. emphatic.

9-9. Which of the following is not a method for diagnosing a problem?

a. interviews.
b. questionnaires.
c. benchmarking.
d. unobtrusive measures.

9-10. Driving forces may include:

a. words of praise from a manager.
b. low moral.
c. effective reward systems.
d. A & C.

9-11. According to Hamel & Prahalad, deep insights into the trends in technology, demographics,
regulations and lifestyles that can be harnessed to rewrite industry rules and create new competitive
space is called:
a. industry foresight.
b. vision.
c. objectives.
d. A & B.

9-12. Sensitivity training for a manager is a:

a. shallow intervention.
b. moderate-depth intervention.
c. deep intervention.
d. none of the above.

9-13. Coaching and mentoring is:

a. shallow intervention.
b. moderate-depth intervention.
c. deep intervention.
d. none of the above.

9-14. Team building begins with:

a. benchmarking.
b. diagnostic meetings.
c. a plan of action.
d. unobtrusive measures.

9-15. According to Margaret Houston and John Talbott in the CMA Magazine, which of the following
is not true about empowerment?
a. employees feel responsible for making the whole organization work better.
b. teams work together to improve their performance continually, achieving higher levels of
productivity.
c. organizations are structured in such a way that people feel they are able to achieve the results they
want.
d. none of the above.

9-1. Restructuring an organization may lead to a smaller organization.

True / False

9-2. Government regulations are an example of internal change forces.

True / False

9-3. Manager may reduce resistance to change through education and communication.
True / False

9-4. Positive elements may flow from resistance to change.

True / False

9-5. Psychologist Kurt Lewin argued that constant change was efficient.
True / False

9-6. The last stage in the framework for managing change is the selection of intervention change
methods and implementation.
True / False

9-7. Major disadvantages of interviews are the possibility of misinterpretation of responses and the bias
that both the interviewer and the interviewers bring to the process.
True / False

9-8. Force field analysis refers to analysis of the forces that might have a positive or negative effect on
change.
True / False

9-9. In their book "Competing for the Future," Gary Homel and C.K. Prahalad state that organizations
typically exhibit what they call the "50/40/10 rule."
True / False

9-10. A stretch target is an easily achievable goal.

True / False

9-11. Quantitative and qualitative measures could be used as criteria for change evaluation.
True / False

9-12. Only top management has the responsibility to be change agents.

True / False

9-13. A survey feedback is an organizationally focused moderate-depth intervention method.

True / False

9-14. A planned change of the formally prescribed task and authority relationships in an organization's
design is called a structural change.
True / False

9-15. Organization charts always reflects how the organization works.

True / False

10-1. The content of the communication is called:

a. a message.
b. noise.
c. media richness.
d. jargon.

10-2. To convert a message into groups of words, symbols, gestures, or sounds that present ideas or
concepts is called:
a. encoding.
b. feedback.
c. noise.
d. media richness.

10-3. Which of the following is not a medium of transmission?

a. memos.
b. policy statements.
c. discussions.
d. none of the above.

10-4. Which of the following is an example of non verbal communication media?

a. time.
b. bulletin board.
c. space.
d. A & C.

10-5. Any communication that conveys a message consisting of words is called:

a. verbal communication.
b. oral communication.
c. written communication.
d. non verbal communication.

10-6. A certain look or glance is an example of:

a. verbal communication.
b. oral communication.
c. written communication.
d. non verbal communication.
10-7. Manuals and policy statements are referred to as:
a. upward communication.
b. horizontal communication.
c. downward communication.
d. none of the above.

10-8. Suggestions for improvements from an employee in the accounting department is an example of:
a. upward communication.
b. horizontal communication.
c. downward communication.
d. the grapevine.

10-9. When the accounting manager communicates to the purchasing manager the dollars available for
purchases in the current month, this is an example of:
a. upward communication.
b. horizontal communication.
c. downward communication.
d. the grapevine.

10-10. An informal and unstructured communication channel that cuts across formal channels of
communication is called:
a. upward communication.
b. horizontal communication.
c. downward communication.
d. the grapevine.

10-11. Which of the following is not a potential problem (barrier) to personal communications?
a. credibility of the sender.
b. personal makeup of the parties involved.
c. some individuals tend to be disorganized.
d. none of the above (all are potential problems).

10-12. Which of the following is an example of gender-neutral language?

a. sales clerk.
b. Dear Sirs.
c. David & Joanna Warren.
d. A & C.

10-13. ______________ is the process by which the receiver interprets the symbols used by the source
of the message by converting them into concepts and ideas.
a. decoding.
b. listing.
c. encoding.
d. none of the above.
10-14. The _____________ is the individual or group that develops the message to be communicated to
internal and external parties.
a. source.
b. encoder.
c. decoder.
d. jargon.

10-15. Noise is not a problem at which stage of the communication process?

a. source.
b. receiver.
c. decoding.
d. none of the above (noise is a problem at all stages).

10-1. Communication is the exchange of information between a sender and a receiver.

True / False

10-2. In organizations, only top managers are sources of messages.

True / False

10-3. Telephone communication is the richest medium.

True / False

10-4. Feedback is the receiver's response to the sender's message.

True / False

10-5. The computer industry is an example of a profession that has developed its own jargon.
True / False

10-6. The terms verbal communication and oral communications are interchangeable.
True / False

10-7. According to the text, managers generally prefer to communicate by written message.
True / False

10-8. Emphatic listing is listening with the intent to understand.

True / False

10-9. A good listener refers to the message in the following sequence: hear, interpret, understand and
respond.
True / False

10-10. The degree of confidence and trust the receiver has in the sender or the source of the message is
called source credibility.
True / False
10-11. Selective perception is the term used to describe when people screen out information that is not
consistent with their beliefs or background.
True / False

10-12. Communication must include a verbal component.

True / False

10-13. Encoding is the process of converting a message into symbols that people will understand.
True / False

10-14. The main advantage of written communication is that it provides a permanent record of a
message.
True / False

10-15. Functional illiteracy is not a problem for Canadian management.

True / False

11-1. All of the functions involved in producing and delivering goods or services, including all support
functions are called:
a. manufacturing.
b. operations.
c. mass production.
d. A & B.

11-2. A system permitting the manufacture of large quantities of identical goods using repetitive actions
by people or machines is called:
a. manufacturing.
b. operations.
c. mass production.
d. assembly line.

11-3. Which of the following would not be a typical function of production management?
a. inventory control.
b. cash flow forecasts.
c. site location & layout.
d. plant management.

11-4. In a moderate sized operation, production and operations managers are generally classified as:
a. top management.
b. middle management.
c. supervisory management.
d. non supervisory.

11-5. The most important factor for site selection for the Alcan Aluminum plant located in Kitmat, B.C.
was:
a. taxes.
b. proximity to an abundant supply of water.
c. accessibility to market for goods.
d. climate.

11-6. A computer-driven system for analyzing and projecting materials needs and then scheduling their
arrival at the workstation at the right time is called:
a. material requirement planning.
b. just in time (JIT) inventory control.
c. CAD.
d. CAM.

11-7. An approach that tries to match the output of manufacturing with market demand, in order to
minimize inventories is called:
a. JIT.
b. MRP.
c. CAD.
d. CAM.

11-8. _____________ is a term developed by Philip B. Crosby for a performance standard that
responds to the attitude in some organizations which assumes that mistakes are human.
a. CAE.
b. zero defects.
c. mass production.
d. none of the above.

11-9. Which of the following techniques would be used to manage a project such as the development
and deployment of missiles?
a. a Taylor chart.
b. a Walker chart.
c. a Pert chart.
d. all of the above.

11-10. The first step in creating a Pert chart is:

a. list the first event of the task.
b. list the event that follows the first one, drawing an arrow from the first event to the next one,
showing the sequence.
c. in the same way, chart all of the events needed to complete the project.
d. none of the above.

11-11. The use of computers to draw plans for a product or service applying pre-programmed
parameters that describe the desired finished product is called:
a. computer aided engineering.
b. computer aided manufacturing.
c. computer aided design.
d. flexible manufacturing system.
11-12. ___________ charts are used to plot measurements taken over a specific time period.
a. flow
b. control.
c. fishbone.
d. run.

11-13. The use of computers to control the operation of production process is known as:
a. CAD.
b. CAE.
c. CAM.
d. CAQ.

11-14. The first step in building a program to ensure quality control is:
a. define quality characteristics.
b. build quality commitment.
c. establish quality standards.
d. develop a comprehensive quality review program.

11-15. A company wishes to measure their products against those of a direct competitor. This is called:
a. internal benchmarking.
b. functional benchmarking.
c. competitive benchmarking.
d. C & D.

11-1. Production and operation managers are responsible for producing the goods or services that the
organization intends to offer to its customers or constituents.
True / False

11-2. The moving assembly line was first used by General Motors in 1913.
True / False

11-3. The oft quoted comment "The customer can have any colour as long as it's black" was coined by
Henry Ford.
True / False

11-4. Project-based operations are especially appropriate for very large projects for which materials and
workers must be moved to other sites.
True / False

11-5. In the case of a shipping company, the critical site selection factor would probably be community
receptiveness.
True / False
11-6. The facilities that support operations, including utilities, transportation, and communications
facilities, and controls of the working environment are called "infrastructure".
True / False

11-7. The site layout should be planned after the site is chosen.
True / False

11-8. The just-in-time (JIT) approach control system was developed by Taiichi Ohno at Toyota Motor
Company of Japan.
True / False

11-9. An important factor in determining inventory levels is location.

True / False

11-10. CAD and CAM are software programs which would be used in non profit organizations.
True / False

11-11. Robots are often used in flexible manufacturing systems.

True / False

11-12. Currently, robots are only being used in heavy manufacturing.

True / False

11-13. Quality circles were popularized and expanded into a highly developed system by U.S.
companies.
True / False

11-14. Quality circles work best as part of total quality control.

True / False

11-15. Quality control and quality management are interchangeable terms.

True / False

12-1. According to the text, which of the following is Canada's largest service organization in terms of
number of employees.
a. Nortel.
b. Bell.
c. BCE.
d. Royal Bank.

12-2. Services are distinguished by all or some of the following characteristics.

a. intangibility.
b. inseparability.
c. perishibility.
d. all of the above.
12-3. _____________ is the quality of not having physical substance.
a. intangibility.
b. tangibility.
c. inseparability.
d. perishability.

12-4. An identifying quality of a service, which assumes that the production and consumption of the
service occur simultaneously and not at different times, is called:
a. intangibility.
b. inseparability.
c. perishability.
d. heterogenity.

12-5. "Early Bird specials" at a restaurant are an example of a service company addressing the issue of:
a. perishability.
b. heterogeneity.
c. critical service encounter.
d. inseparability.

12-6. ___________ refers to the inconsistency or variations found in human performance.

a. perishability.
b. intangibility.
c. heterogeneity.
d. none of the above.

12-7. Which of the following is the most labour intensive type of service?
a. fitness club.
b. hotel.
c. telecommunications.
d. computer repairs.

12-8. Which of the following is an example of a high contact service?

a. computer school.
b. laundry.
c. movies.
d. Amazon.com

12-9. Which of the following is true with respect to customers reporting their dissatisfaction with
service?
a. customers "vote with their feet".
b. only 1 on 10 report their dissatisfaction to the offending party.
c. customers aggressively complain.
d. A & B.

12-10. The factors that the recipient of a service may use to judge the quality of service is called:
a. evaluative criteria.
b. selective criteria.
c. critical success factors.
d. service productivity.

12-11. The output per person per hour, per day, or per dollar of wages is called:
a. efficiency.
b. service productivity.
c. reliability.
d. critical success factors.

12-12. The elements involved in the delivery of a service that are essential to the success of the effort is
called:
a. service productivity.
b. critical success factors.
c. peak performance.
d. none of the above.

12-13. Jobs highest in discretionary effort are:

a. assembly line workers.
b. customer contact jobs.
c. knowledge jobs.
d. A & B

12-14. The highest level of performance an employee can achieve is called:

a. discretionary effort.
b. peak performance.
c. performance culture.
d. service productivity.

12-15. Peak performance can best be achieved when:

a. managers are committed to developing an organizational structure that encourages peak performance.
b. employees are empowered.
c. employees are committed.
d. all of the above.

12-1. In Canada, nearly three-quarters of total employment is in the same sector.

True / False

12-2. An implication of inseparability is that the customer has no role in service delivery.
True / False

12-3. Research has shown that warmth of communication style of service provides an important factor
in the customer perception of service quality.
True / False
12-4. Homogeneity and heterogeneity are interchangeable.
True / False

12-5. Home insurance is an example of an organizational market.

True / False

12-6. A dental practice is an example of a labour and equipment intensive profession.

True / False

12-7. Burnout results in an increase in employee's energy level.

True / False

12-8. Services are often classified according to the service provider's goal, profit or non-profit.
True / False

12-9. Two major challenges facing service organizations are to improve quality and service.
True / False

12-10. The typical customer of today is patient and forgiving.

True / False

12-11. Several studies have reported that reliability is one of the most important determinants of
customer's perception of service quality.
True / False

12-12. Assurance refers to caring and individualized attention to the customer.

True / False

12-13. According to Peter Druker, the single greatest challenge for managers is to raise the knowledge
and productivity of service employees.
True / False

12-14. A performance culture in an organization inhibits workers from performing their best work.
True / False

12-15. Discretionary effort is the common denominator of peak performance.

True / False

13-1. An entrepreneur is someone who assumes the major risks of a new business by committing which
of the following?
a. equity.
b. time.
c. career.
d. all of the above.
13-2. An informal group of innovative employees who are permitted to digress temporarily from their
regular tasks to develop new ideas are referred to as:
a. underground.
b. skunkworks.
c. yahoos.
d. intrapreneurs.

13-3. It is estimated that approximately _____ percent of small businesses fail within the first five
years.
a. 10.
b. 25.
c. 50.
d. 75.

13-4. Which of the following is not a personal characteristic often found in an entrepreneur?
a. self-confident.
b. independent-minded.
c. perceptive.
d. follower.

13-5. The period of business when an entrepreneur must position the venture in a market and make
necessary adjustments to assure survival is called the:
a. pre-startup stage.
b. startup stage.
c. early growth stage.
d. later growth stage.

13-6. Which of the following is usually included in a business plan?

a. detailed description of the product or service.
b. marketing and promotional plans.
c. management and staffing.
d. all of the above.

13-7. Which of the following is a reason why a person might prefer to purchase a franchise rather than
open a completely new business?
a. higher failure rate.
b. increased independence.
c. ability to benefit from previous experience.
d. reduced royalty fees.

13-8. According to the textbook, which of the following management functions is the least well done?
a. planning.
b. organizing.
c. leading.
d. controlling.
13-9. Which of the following is not a common motivation of an entrepreneur?
a. desire for independence.
b. search for personal and professional growth.
c. desire to maintain the status quo.
d. search for more rewarding work.

13-10. Which of the following are risks for entrepreneurs in small business?
a. interference with personal lives.
b. psychological stress.
c. social and family pressure.
d. all of the above.

13-11. A strategy of courting other companies that have knowledge, ideas or promising products is
known as which type of intrapreneurship?
a. administrative intrapreneurship.
b. opportunistic intrapreneurship.
c. acquisitive intrapreneurship.
d. imitative intrapreneurship.

13-12. A person within a company who takes a leadership role and is positioned to help ensure the
success of an idea or innovation is often referred to as a:
a. supporter.
b. champion.
c. leader.
d. evangelist.

13-13. Which of the following is a purpose of a business plan?

a. to attract financing.
b. to inform competitors of plans.
c. to discipline the entrepreneur to think of all aspects of the proposed venture.
d. a & c.

13-14. Who said that the job of the entrepreneur is "creative destruction"?
a. Peter Drucker.
b. Pierre Trudeau.
c. Joseph Schumpeter.
d. Brian Mulroney.

13-15. All of the following were invented by a Canadians except:

a. IMAX multiscreen projection.
b. snowmobile.
c. twin engine airplane.
d. post-it note.
13-1. Outsourcing allows companies to focus on what they do best.
True / False

13-2. Entrepreneurship is derived from the seventeenth-century French word, entreprendre.

True / False

13-3. In Canada, it is generally accepted that large businesses have been the creators of the most new
jobs through the past decade or two.
True / False

13-4. Intrapreneurship refers to the entrepreneurial spirit and focus being applied within a large
organization.
True / False

13-5. Entrepreneurs have a natural tendency to predict lower sales and higher costs than are realistic.
True / False

13-6. A business plan is often described as the most important tool of the entrepreneur.
True / False

13-7. A greenfield business is a term used to describe the purchase of an existing business or a
franchise.
True / False

13-8. Canadian Tire, McCain and Eaton's are examples of successful leadership successions in family-
owned businesses.
True / False

13-9. One of the greatest difficulties in buying an existing business is determining how much one
should pay for the business.
True / False

13-10. The near-merger of home and business life can be both an advantage and drawback to starting a
home-based business.
True / False

13-11. Some studies by Statistics Canada suggest that small businesses started by male entrepreneurs
have about twice the survival rates of those started by female entrepreneurs.
True / False

13-12. Canadians have a long and illustrious history of innovation and invention.
True / False

13-13. A business started by more than one person has a greater chance of failure than sole
proprietorships.
True / False
13-14. Startups managed by people without prior management experience have a greater chance of
failure than those experienced with management.
True / False

13-15. An executive summary of a business plan is a more detailed version prepared for top executives.
True / False

15-1. Which of the following describes the totality of the means people employ to accomplish desired
tasks?
a. innovation.
b. competitive advantage.
c. technology.
d. all of the above.

15-2. Which of the following describes the process of drawing useful inferences from information that
is available?
a. data availability.
b. data processing.
c. data mining.
d. Information dating.

15-3. Which of the following is not recommended for fostering organizational creativity?
a. encourage new ideas.
b. tolerate failure.
c. encourage new ideas.
d. provide general objectives.

15-4. Which of the following exercises is designed to take participants minds away from the problem at
hand?
a. fluency exercises.
b. excursion exercises.
c. shake-up exercises.
d. brainstorming.

15-5. Differentiation is the ability to provide superior value to a buyer or user in ways that are different
from competitors. Which of the following is not one of the traditional advantages used to differentiate a
product?
a. availability of product or service.
b. product quality.
c. price.
d. after-sale service.

15-6. According to the textbook, which of the following terms is used to describe predicting the
direction and impact of a new technology?
a. technology prediction.
b. technology forecasting.
c. direction forecasting.
d. weather forecasting.

15-7. Which of the following is not a step in the process for planning a company's technology strategy?
a. technology situation assessment.
b. technology portfolio development.
c. technology training.
d. setting technology investment priorities.

15-8. Which of the following is not a recommended guideline for motivating staff to deliver high
quality work?
a. taking the time demonstrate trust in the competence of the person.
b. choosing a specific behaviour to comment on when delivering constructive criticism.
c. expecting perfection from workers.
d. allowing people to find their own ways of managing work.

15-9. Which of the following is not a mode of international technology transfer?

a. joint ventures
b. licensing
c. patents
d. industrial espionage

15-10. Which of the following describes a process where employees write down their ideas on slips of
paper with no identification, exchange the slips and attempt to build on each other's ideas?
a. mindmapping.
b. brainwriting.
c. forced relationship
d. pattern breakers.

15-11. Which of the following is not a support category in the value chain analysis?
a. infrastructure functions.
b. human resource management.
c. technology development.
d. support department.

15-12. Which of the following is not a primary function in the value chain analysis?
a. product creation.
b. production.
c. sales analysis.
d. delivery.

15-13. 3M's Corporate Time Compression Committee was able to reduce the time-to-market for new
products by ___ percent.
a. 10.
b. 25.
c. 50.
d. 90.

15-14. Which of the following consists of games or team activities to help individuals laugh or relax,
and to overcome distances created by organizational hierarchy?
a. shake-up exercises.
b. dance exercises.
c. excursion exercises.
d. fluency exercises.

15-15. Which of the following is not a recommended approach to encourage creativity?

a. tolerating failures.
b. offering recognition for good effort and performance.
c. restricting on-the-job interaction in order encourage individual excellence.
d. encouraging experimentation among employees.

15-1. Innovation is the generation of a new idea, and its implementation into a new product, process or
service.
True / False

15-2. Competitive advantage is a system designed to analyze the sources of value chain analysis.
True / False

15-3. The T-curve is used to portray the life cycle of a particular product or process.
True / False

15-4. Technology transfer is the transfer of knowledge from a concept, even a prototype, to some more
tangible application.
True / False

15-5. The Xerox Research Center invented the graphical user interface (GUI) but did not recognize its
commercial potential.
True / False

15-6. CEO Scott McNealy's style has led to a spirit of innovation and creativity at Sun Microsystems
that has suddenly vaulted the company into a competitive position that allowed it to take on industry
leaders such as Microsoft and Intel.
True / False

15-7. Video conferencing is an exception to traditional principles since it is an innovation that has not
become more common in recent years as costs have remained stable.
True / False
15-8. The term technology transfer often is used to describe a transfer of knowledge from a concept or
even a prototype to some more tangible application.
True / False

15-9. In order to reduce the financial loss from the expiration of their patent, Eli Lilly & Company
licensed a dozen manufacturers to sell a generic version of Prozac several months before the patent's
expiration.
True / False

15-10. A product-and-process improvement transfer means that an improvement in existing technology

leads to a better product or to a process that meets customer needs.
True / False

15-11. Education generally increases creativity.

True / False

15-12. It is universally believed that computer use has led to increased productivity.
True / False

15-13. There have been no compelling research findings to indicate that an organization can improve
creativity or innovation by creativity training exercises.
True / False

15-14. Brainstorming is a small group process designed to free participants from stereotypical thinking
by having them uncritically express ideas.
True / False

15-15. Creative people usually have a childhood marked by diversity, such as family strains, financial
ups and downs, and divorces.
True / False

15-16. S-curves almost always appear in triplets.

True / False