Introduction to Business Final Exam - Second Semester

One difference between managers & leaders is that

• managers are found in businesses while leaders are found in non-profits

• managers work to achieve stability while leaders embrace change

• managers use an autocratic approach while leaders use a democratic style.

• all employees can manage, but only top managers can lead.

The first step in rational decision-making model is to

• recruit team members to work on the problem.

• gather data

• develop alternative responses

• define the situation

What is a defining quality of a leader?

• embrace change

• mainly concerned with tactical issues

• tend to do the work themselves rather than delegate it to others.

• strive to maintain order & stability

The traditional technique used to departmentalize is by

• function

• customer group

• geographic area

• production process

Which position would be classified as a staff position?

• an assembly-line worker for a major auto manufacturer

• the chief executive officer for a small corporation

• a sales manager for a chain of clothing stores

• an attorney in the legal department of a manufacturing corporation

The process of setting up individual functional units of the business to do specialized tasks is called

• departmentalization

• division of labor

• job specialization

• delegation of authority

What is the line of authority that moves from the top of a hierarchy to the lowest level?

• Chain of Command

• Span of Control

• Delegation

• Centralization

_____ is called the

• chain of logic

• chain of command

• organizational design

• delegation of contingent authority

A(n) _____ consists of one person at the top of the organization and many levels of managers who are responsible to that person.

• hierarchy

• oligarchy

• inverted organization

• informal organization

Fayol's _____ principle says that tasks should be divided into areas of specialization.

• departmentalization

• comparative advantage

• division of labor

• centralization