Exam 2

Question 1

According to the text, an ethical framework has four primary components: 1) duties, 2) rights, 3) standards of excellence, and 4) commitments.

Answer 1

True

Question 2

The community principle of ethics involves making decisions that you would be publicly proud of.

Answer 2

False

Question 3

The principles, values, and beliefs that are widely considered universal are referred to as the standard level of ethics.

Answer 3

False

Question 4

Escalation is an increase in an organizational behavior as a direct response to a competitor’s behavior.

Answer 4

True

Question 5

An externality is a cost (negative) or benefit (positive) that occurs within the direct exchange between an organization and its stakeholders.

Answer 5

False

Question 6

Ethics is as simple as “doing the right thing.”

Answer 6

False

Question 7

The first stage of moral development is called preconventional.

Answer 7

True

Question 8

Stakeholders can be either internal or external to the organization.

Answer 8

True

Question 9

___________ may be described as the moral principles, values, and beliefs that govern group or individual behavior according to what is right or wrong.

Answer 9

Ethics

Question 10

Which of the following is the final stage of moral development?

Answer 10

Postconventional

Question 11

The more healthy options that one fast food chain offers, the more healthy options other fast food chains have to offer. This is an example of which of the following concepts?

Answer 11

Escalation

Question 12

When managers make a principles-based decision that follows both the letter and the spirit of the law, they are applying which of the following?

Answer 12

A legal principle

Question 13

A decision that provides the greatest good to the greatest number (or the least harm to the fewest number) is based on:

Answer 13

Utilitarian principle

Question 14

By protecting human health, safety, and privacy, one is upholding which of the following Codes of Conduct Standards?

Answer 14

Dignity

Question 15

When an organization supports proactive behaviors that are beneficial to society, the organization is engaging in:

Answer 15

social responsibility

Question 16

Articles of incorporation is a legal agreement between shareholders and management that determines the ______________ of management in operating the organization.

Answer 16

fiduciary duty

Question 17

When a company accepts responsibility for a situation but then only does the minimum required, it is using which of the following approaches to social responsibility?

Answer 17

Defensive

Question 18

All of the following are domains of ethical decision making EXCEPT:

Answer 18

principles

Question 19

A situation in which the company’s culture impact employee behavior in ways that are consistent with the organization’s mission and values would be an example of ______________

Answer 19

values-based

Question 20

A(n) _____________ approach is when an organization accepts responsibility and takes action in response to societal pressures.

Answer 20

accommodative

Question 21

According to the text, there are seven steps in the decision making process.

Answer 21

True

Question 22

When a decision is made based on beliefs or assumptions despite evidence to the contrary, it is known as an intuitive decision.

Answer 22

False

Question 23

Groupthink is the ability for a team to synthesize their thoughts into a more effective alternative path.

Answer 23

False

Question 24

Evaluating alternatives is the third step in the decision-making process.

Answer 24

False

Question 25

The degree to which the outcomes of an alternative can be predicted is referred to as risk.

Answer 25

True

Question 26

A decision based on preestablished rules in response to a recurring situation is called:

Answer 26

a programmed decision

Question 27

Which of the following is the first step in the decision-making process?

Answer 27

Identify the problem

Question 28

Managers rarely have all the information they need to make the best possible decision where information about the situation, goals, or criteria is incomplete or can be interpreted in multiple ways. This is referred to as:

Answer 28

ambiguity

Question 29

A method of problem analysis that isolates the variables in a system that can truly be addressed through management intervention is known as:

Answer 29

policy-based analysis

Question 30

Research suggests that group brainstorming is a particularly effective technique for dealing with a problem that is:

Answer 30

complex and cross-functional

Question 31

Basing decisions on beliefs or assumptions despite evidence to the contrary is:

Answer 31

prior hypothesis bias

Question 32

When decision making is limited by time, cognitive abilities, and available information, it is known as:

Answer 32

bounded rationality

Question 33

Which of the following can become problematic when implementing decision alternatives?

Answer 33

illusion of control

Question 34

Which of the following is NOT one of the steps in the process for feedback and measurement results?

Answer 34

Identify the problem

Question 35

What is the last step in the seven-step decision-making process?

Answer 35

Solicit feedback and analyze results

Question 36

The decision that is the best possible option given all the needed information is known as a(n):

Answer 36

optimum decision

Question 37

The method of decision making in which a group of experts propose and question ideas until a consensus is reached is the:

Answer 37

Delphi technique

Question 38

A plan that interprets an organizational strategy into a market or community-based opportunity for division or departmental managers is a business plan.

Answer 38

True

Question 39

Key performance indicators are measurements that managers identify as vital to the company’s performance.

Answer 39

True

Question 40

A distal goal is almost unattainable and requires the full capacity of an individual, manager, team, or organization to accomplish.

Answer 40

False

Question 41

Goals must be set within a strategic framework consisting of mission, vision, and values.

Answer 41

True

Question 42

If a goal is several months or even a year in the future, milestones must be set along the way to assess performance and allow room for feedback.

Answer 42

True

Question 43

Directional plans provide focus and include specific objectives and responsibilities.

Answer 43

False

Question 44

Managers set proximal goals, or short term goals, that increase individuals’ abilities to reach distal goals by providing motivation and feedback.

Answer 44

True

Question 45

People tend to be more motivated by _____________ goals.

Answer 45

challenging

Question 46

Through progress reports and other types of feedback, managers can:

Answer 46

clarify expectations assess the process make adjustments if necessary

Question 47

The motivation and determination needed to achieve a goal is known as:

Answer 47

goal commitment

Question 48

The technique in which management and employees agree to specific goals that are then used to evaluate individual performance is known as:

Answer 48

MBO

Question 49

A plan that guides the day-to-day production or delivery of an organization’s goods and services, and which enacts a functional strategy is known as a(n):

Answer 49

operational plan

Question 50

A visual representation of an organization’s strategies and goals is a ________________.

Answer 50

performance dashboard

Question 51

A standing plan that provides specific steps to be taken as part of a recurring process or in response to a recurring situation is a:

Answer 51

procedure

Question 52

Which of the following is NOT a characteristic of a S.M.A.R.T. goal?

Answer 52

realistic

Question 53

A plan that interprets an organizational strategy into a market or community-based opportunity for division or departmental managers is a:

Answer 53

tactical plan

Question 54

Which of the following is a standing plan that describes how an organization and its members should respond to recurring or anticipated situations?

Answer 54

Policy

Question 55

The Harvard professor who developed the five forces model is Frederick Taylor.

Answer 55

False

Question 56

A company with a high market share but low market growth is categorized as a cash cow.

Answer 56

True

Question 57

A functional strategy determines how employees will implement and achieve a tactical plan.

Answer 57

True

Question 58

A diversification strategy reduces risk as an organization adds new kinds of goods, services, or business units.

Answer 58

True

Question 59

Only big industries are subject to government policies.

Answer 59

False

Question 60

A plan of action for achieving goals is known as:

Answer 60

strategy

Question 61

A company that uses strategies for high risk and fast growth through product and market innovation is known as a(n):

Answer 61

prospector

Question 62

Which of the following is NOT a barrier to entry?

Answer 62

Expansive government policy

Question 63

________ refers to the financial and human resources available to the company, which will enable or hinder it to achieve goals.

Answer 63

Capacity

Question 64

What is the appropriate action for an organization or product that is a Question Mark according to the BCG Matrix?

Answer 64

Invest heavily in order to achieve Star status

Question 65

Activities and processes that an organization routinely does well in comparison to its competitors are:

Answer 65

core capabilities

Question 66

The renewal strategy addresses declining performance through ___________.

Answer 66

retrenchment and regrowth

Question 67

Which of the following levels of strategy answers the question, “How will a business compete in a particular industry or market?”

Answer 67

Divisional strategy

Question 68

A(n) ____________ is a company whose strategies seek to maintain existing products and services while pursuing limited innovation.

Answer 68

analyzer

Question 69

When companies produce and distribute their own supplies it is known as:

Answer 69

vertical integration

Question 70

It is the responsibility of managers to _________ strategies that will defend the company against the threat of competitors.

Answer 70

create present implement

Question 71

A company that follows no consistent strategy, but instead changes depending on the environment, is a(n):

Answer 71

reactor

Question 72

When an organization focuses on processes, products, and services that will last over the long term, it is known as the company’s:

Answer 72

stability strategy