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Business Organization Quiz

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

Organizing a business begins with:

a)

determining the work to be done

b)

hiring employees

c)

setting up departments

d)

creating a marketing plan

2.

Dividing the required work among a group of employees is called:

a)

job specialization

b)

departmentalization

c)

division of labor

d)

job rotation

3.

Dividing tasks into smaller jobs is called:

a)

job rotation

b)

job specialization

c)

division of labor

d)

departmentalization

4.

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

a)

job specialization

b)

division of labor

c)

departmentalization

d)

job rotation

5.

Job specialization is known to:

a)

reduce costs

b)

improve job performance

c)

increase employee turnover

d)

decrease efficiency

6.

Which of the following is an example of a move to reorganize?

a)

Increasing employee benefits

b)

Reducing the labor force within your business

c)

Expanding product lines

d)

Hiring more managers

7.

The proven success of job specialization lies in the fact that:

a)

it increases the number of employees

b)

it adds efficiency to the business's operation by identifying tasks that some do better than others

c)

it reduces the need for training

d)

it eliminates the need for managers

8.

Which statement best expresses the theme of the discussion in the "Making Ethical Decisions" box titled "Would You Sacrifice Safety for Profit?"

a)

The corporate culture you create as you begin your service will last a long time. Your workers will adopt your values.

b)

Safety should always be sacrificed for profit.

c)

Profit is the only important factor in business.

d)

Workers will never adopt the values of their leaders.

9.

What does Brett's identification of tasks and assignment of employees to each task illustrate?

a)

Division of labor

b)

Economies of scale

c)

Unity of command

d)

Organization theory

10.

Which of the following should you NOT advise your friend to do when structuring a graphic design business idea?

a)

Prepare the nonchangeable marketing plan for the next three years, including marketing analysis and marketing strategy

b)

Assign tasks to employees

c)

Develop a flexible business strategy

d)

Analyze market trends regularly

11.

The concept of __________ suggests that as a firm produces more, the average cost of goods produced goes down.

a)

Economies of scale

b)

Division of labor

c)

Unity of command

d)

Organization theory

12.

Henri Fayol and Max Weber are best known for their contributions to:

a)

Organization theory

b)

Economies of scale

c)

Division of labor

d)

Unity of command

13.

What does it mean that organization theorists emerged during the era of mass production?

a)

The development of ways to produce a large quantity of product efficiently

b)

The focus on individual craftsmanship

c)

The reduction of worker specialization

d)

The elimination of management roles

14.

Fayol's __________ principle states that each worker should report to one, and only one, boss.

a)

Unity of command

b)

Division of labor

c)

Economies of scale

d)

Organization theory

15.

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

a)

Division of labor

b)

Unity of command

c)

Economies of scale

d)

Organization theory

16.

Fayol's __________ principle says that workers' attitudes can create an environment of pride and loyalty within an organization.

a)

esprit de corps

b)

division of labor

c)

unity of command

d)

scalar chain

17.

__________ believed that managers were trustworthy and companies would do well if employees simply did what they were told.

a)

Henri Fayol

b)

Max Weber

c)

Frederick Taylor

d)

Elton Mayo

18.

Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management.

a)

supervisors

b)

bureaucrats

c)

directors

d)

coordinators

19.

A(n) ________________ is a visual device which shows relationships among people and divides the organization's work.

a)

flowchart

b)

organization chart

c)

pie chart

d)

Gantt chart

20.

In Weber's view of a bureaucratic organization, the role of top management is to

a)

supervise employees

b)

make decisions

c)

train staff

d)

handle finances

21.

In Weber's view of a bureaucratic organization, the organization demands

a)

flexible rules

b)

clearly established rules and guidelines that to be precisely followed

c)

informal communication

d)

creative freedom

22.

The line of authority that moves from the top of a hierarchy to the lowest level is called the

a)

reporting line

b)

chain of command

c)

management chain

d)

authority line

23.

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

a)

network

b)

hierarchy

c)

team

d)

committee

24.

A(n) ________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.

a)

organization chart

b)

financial statement

c)

marketing plan

d)

job description

25.

In a bureaucratic organization, what do employees typically do?

a)

follow strict rules and regulations

b)

work independently without supervision

c)

make all major decisions

d)

ignore company policies

26.

One advantage of a bureaucratic organization is that:

a)

employees know they are expected to follow the rules and regulations

b)

employees have complete freedom in decision-making

c)

there are no formal procedures

d)

management is absent

27.

__________ organizations are characterized by many layers of management and function with well-defined rules and procedures.

a)

Bureaucratic

b)

Entrepreneurial

c)

Informal

d)

Flexible

28.

What does the term "economies of scale" refer to?

a)

are achieved when a firm reduces its average cost of production as it produces more

b)

are achieved when a firm increases its prices

c)

are achieved when a firm hires more employees

d)

are achieved when a firm expands into new markets

29.

Max Weber favored which of the following?

a)

Staffing and promotions based on qualifications

b)

Promotions based on seniority only

c)

Hiring based on personal relationships

d)

Staffing based on random selection

30.

According to Fayol, where should decision-making authority remain in small organizations?

a)

in the hands of top management

b)

with all employees

c)

with external consultants

d)

with customers

31.

Which of the following statements explains the unity of command principle of management?

a)

Workers can become frustrated and confused if they have more than one boss

b)

Workers should always work in teams

c)

Workers should report to multiple managers

d)

Workers should make decisions independently

32.

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

a)

Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase

b)

Organizations will become more flexible and decisions will be made quickly

c)

Organizations will eliminate all management layers

d)

Organizations will allow employees to make all decisions

33.

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

a)

The rule making that develops from these principles creates organizations that don't respond quickly to customer needs

b)

These principles encourage innovation and flexibility

c)

Fayol's principles are only applicable to small businesses

d)

The principles focus solely on financial management

34.

According to Max Weber's views on bureaucratic organizations, Campbell's function as a middle manager within the organization is to:

a)

Implement the decisions of top management

b)

Develop new marketing strategies

c)

Oversee product development

d)

Handle customer complaints directly

35.

At Green Acres Fencing Company, eight employees perform various aspects of the company's work. One person does sales; four perform installation; one purchases materials; one does billing. This is an example of:

a)

Division of labor

b)

Centralization

c)

Decentralization

d)

Job rotation

36.

Sarah is a designer for a business that installs underground sprinkler systems for residential and commercial customers. Tom and Bill share the ownership responsibilities of the business. Tom is in:

a)

Unity of command

b)

Division of labor

c)

Decentralization

d)

Specialization

37.

Bill, a financial manager at Carlyle Bank and Trust, always strives to treat each subordinate with respect and fairness. Bill's treatment of employees is an example of Fayol's principle of:

a)

Equity

b)

Centralization

c)

Authority

d)

Discipline

38.

John recently accepted a job in the marketing department with the Burbank Bagel Boys. After just a few days on the job, John learned that the company has many layers of management, and seems to have:

a)

Bureaucratic organization

b)

Flat organization

c)

Informal organization

d)

Decentralized organization

39.

When Brian started his auto mechanic shop, his business plan included a(n) ________________ that showed the relationships among employees in his organization and the lines of authority and responsibility.

a)

organization chart

b)

business license

c)

marketing plan

d)

financial statement

40.

Fairview Community College is a multi-district college with four campuses. Each campus has one president, two vice presidents, five deans, 12 department chairs, over 100 faculty members, and several other staff. What term best describes the structure that shows who reports to whom?

a)

chain of command

b)

organizational culture

c)

job rotation

d)

team structure

41.

Andrew's company is a bureaucratic organization. Andrew is likely to encounter which of the following conditions?

a)

Many layers of management

b)

Flexible job roles

c)

Minimal supervision

d)

Informal communication

42.

The management at Patriot Mills works hard to ensure that no one in its organization has more than one boss and all workers are treated with fairness and respect. Additionally, the firm divides the work among employees. Which management theorist's principles does this reflect?

a)

Henri Fayol

b)

Max Weber

c)

Peter Drucker

d)

Elton Mayo

43.

As a manager of a retail-clothing store, Lance favors detailed job descriptions, formal rules and regulations, detailed records, and standardized procedures. He also believes that staffing and promotions should be based on qualifications. Which management theorist's ideas does Lance follow?

a)

Max Weber

b)

Henri Fayol

c)

Frederick Taylor

d)

Mary Parker Follett

44.

Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?

a)

Workers should simply follow well-defined procedures

b)

Workers should be creative and innovative

c)

Workers should make all major decisions

d)

Workers should avoid formal rules

45.

Which of the following determines the degree of decentralization of a firm?

a)

The degree to which lower-level management is empowered to make decisions

b)

The number of employees in the firm

c)

The amount of profit generated

d)

The location of the headquarters

46.

In a(n) __________ organization, decision-making authority is concentrated at the top level of management.

a)

decentralized

b)

centralized

c)

flat

d)

tall

47.

What does it mean when decision-making authority is delegated to lower-level managers and employees?

a)

Centralized authority

b)

Decentralized authority

c)

Flat organization

d)

Tall organization

48.

The optimum number of subordinates a manager can supervise is referred to as the:

a)

management level

b)

span of control

c)

organizational structure

d)

chain of command

49.

The span of control for a manager:

a)

is always the same for every manager

b)

depends on a number of factors, and can vary from one manager to another

c)

is determined by the number of departments

d)

is fixed by company policy

50.

Due to more emphasis on empowerment and more talented and better-educated lower-level management, span of control in organizations has __________.

a)

decreased

b)

increased

c)

remained the same

d)

disappeared

51.

An organization that consists of many layers of management is referred to as a(n) __________ organization.

a)

flat

b)

tall

c)

centralized

d)

decentralized

52.

The ________ an organization's structure, the ________ the span of control.

a)

taller; narrower

b)

flatter; wider

c)

taller; wider

d)

flatter; narrower

53.

An organization with only a few layers of management is known as a(n) __________.

a)

tall organization

b)

flat organization

c)

centralized organization

d)

decentralized organization

54.

In recent years, large organizations have tried to improve their efficiency in communication and decision making by:

a)

Adding more layers of management

b)

Eliminating several layers of management

c)

Increasing departmental meetings

d)

Expanding the workforce

55.

What term refers to the process of dividing organizational functions (such as sales, production, accounting/bookkeeping) into separate units?

a)

Centralization

b)

Departmentalization

c)

Delegation

d)

Specialization

56.

The traditional technique used to departmentalize an organization is by:

a)

Product

b)

Location

c)

Function

d)

Customer type

57.

Which of the following is considered to be a disadvantage of functional departmentalization?

a)

Employee skills can be developed in depth

b)

There may be a lack of communication among the different departments

c)

Increased flexibility in job roles

d)

Enhanced teamwork across departments

58.

Which of the following is considered to be an advantage of functional departmentalization?

a)

Employee skills can be developed in depth

b)

There may be a lack of communication among the different departments

c)

Increased job rotation

d)

Reduced specialization

59.

Within its production department, Sooner Manufacturing has shift leaders, supervisors, assistant plant managers, plant managers, product group managers, assistant division managers, and division managers. This structure is best described as:

a)

Flat

b)

Tall

c)

Decentralized

d)

Matrix

60.

Which of the following factors help determine a manager's span of control?

a)

The level of standardization of the work to be done

b)

The number of employees in the organization

c)

The location of the organization

d)

The age of the manager

61.

Organizations that require consistent production standards to help create a high-quality public image would tend to favor:

a)

Decentralized authority

b)

Centralized authority

c)

Informal authority

d)

Shared authority

62.

What is the main reason for today's preference for flat rather than tall organization structures?

a)

To increase bureaucracy

b)

To respond readily to customer demands

c)

To create more management levels

d)

To slow down decision-making

63.

Greenwave Garden Centers adapts its management style to different regions due to varying climates and soil conditions. What type of organizational structure does this represent?

a)

Centralized

b)

Decentralized

c)

Functional

d)

Product-based

64.

HipHop Music Company assigns workers to departments based on similar skills, such as marketing, production, finance, and human resources. What type of departmentalization is this?

a)

Product

b)

Customer type

c)

Function

d)

Geographic

65.

Lockdown Industries sells products like burglar alarms and smoke detectors to households and businesses. What type of departmentalization does this represent?

a)

Product

b)

Customer type

c)

Function

d)

Geographic

66.

Jody, as the head of engineering, works on complex projects that require a significant amount of detail. What type of span of control does Jody likely have?

a)

Wide

b)

Narrow

c)

Decentralized

d)

Functional

67.

Vaughn Studios organizes its operations by activity, such as production, marketing, accounting, and finance. What type of departmentalization does Vaughn utilize?

a)

Product

b)

Customer type

c)

Functional

d)

Geographic

68.

Springfield National Bank organizes its loan operations based on the market served, such as consumer, small business, and nonprofit organizations. Departmentalization based on ________ allows Springfield National Bank to focus on specific market needs. What is the correct term to fill in the blank?

a)

customer group

b)

product

c)

location

d)

function

69.

JayLo Corporation has experienced rapid growth during its five years of existence. While still relatively small, JayLo is now big enough that Jessa, the firm's CEO, has decided to organize the firm to provide what opportunity for employees?

a)

Opportunities for employees to work remotely

b)

Opportunities for employees to develop their skills in depth

c)

Opportunities for employees to travel internationally

d)

Opportunities for employees to receive bonuses

70.

International Inns and Conference Centers (IICC), a national chain of professional event centers, utilizes a centralized authority structure. Which of the following provides the most likely explanation for this choice?

a)

Top management desires to maintain a uniform image and high-quality service

b)

Top management wants to encourage local decision-making

c)

Top management prefers a flexible organizational structure

d)

Top management wants to reduce costs by decentralizing authority

71.

As a response to a rapidly changing marketplace, Idea Electronics found it necessary to reorganize, including a significant downsize of its middle management. This action will likely result in ________.

a)

increasing bureaucracy and slowing decision-making

b)

flattening the organization and empowering employees, allowing them to get closer to the customer

c)

reducing employee morale and increasing turnover

d)

centralizing authority and limiting employee input

72.

During the past six years, the marketing department manager at Creative Concepts International made a strong push to hire mover/shaker professionals that had superior performance records prior to joining. What is a potential risk associated with this approach?

a)

groupthink

b)

increased innovation

c)

higher employee turnover

d)

decentralized authority

73.

Management at Hottie Potatee, a nationwide potato bar chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its potato bars, what type of authority structure is most likely in place?

a)

decentralized authority

b)

team-based authority

c)

centralized authority

d)

customer-based authority

74.

A __________ organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

a)

line

b)

matrix

c)

staff

d)

network

75.

__________ are responsible for directly achieving organizational goals.

a)

Line personnel

b)

Staff personnel

c)

Matrix specialists

d)

Project managers

76.

Employees who perform functions that advise and assist line personnel are known as __________.

a)

staff personnel

b)

line personnel

c)

matrix personnel

d)

executive personnel

77.

Which of the organization models follows all of Fayol's traditional management rules?

a)

Line organization

b)

Matrix organization

c)

Network organization

d)

Team-based organization

78.

Staff positions in an organization __________.

a)

support and assist the line positions

b)

directly achieve organizational goals

c)

manage cross-functional teams

d)

create temporary project groups

79.

In a __________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects.

a)

matrix

b)

line

c)

staff

d)

network

80.

Line-and-staff organizations work well in organizations with __________.

a)

a relatively unchanging environment

b)

frequent project changes

c)

high employee turnover

d)

decentralized management

81.

Matrix organizational structures were first developed in __________.

a)

the aerospace industry

b)

the retail industry

c)

the education sector

d)

the healthcare industry

82.

Which of the following was created as a solution to the temporary nature of the matrix structure?

a)

Cross-functional self-managed teams

b)

Line organization

c)

Staff personnel

d)

Project-based teams

83.

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

a)

Cross-functional self-managed teams

b)

Line organization teams

c)

Temporary project teams

d)

Departmental task forces

84.

Cross-functional self-managed teams work best when ____________.

a)

leadership is shared

b)

one person leads all decisions

c)

there is no communication

d)

only one department is involved

85.

Which of the following is an advantage of a line organization in a large business?

a)

Responsibility and authority are clearly defined

b)

Employees have flexible roles

c)

Decision-making is decentralized

d)

Teams are temporary

86.

Which of the following positions would be classified as a staff position?

a)

An attorney in the legal department of a manufacturing corporation

b)

A production line supervisor

c)

A sales manager

d)

A warehouse worker

87.

Which of the following is an advantage of a matrix organization structure?

a)

It provides for efficient use of organizational resources

b)

It eliminates the need for managers

c)

It reduces communication between departments

d)

It creates rigid hierarchies

88.

Which of the following is true of cross-functional teams?

a)

Cross-functional teams work best when the voice of the customer is brought into the organization.

b)

Cross-functional teams are always temporary

c)

Cross-functional teams do not require collaboration

d)

Cross-functional teams only include managers

89.

The main difference between a matrix-style organization model and a cross-functional team is:

a)

The matrix model is a temporary arrangement, whereas the cross-functional team is a more permanent arrangement

b)

The matrix model is always permanent

c)

Cross-functional teams never work together

d)

Matrix organizations do not use teams

90.

Which one of the following would be the least likely to serve on a cross-functional team for the Discovery Corporation?

a)

A production manager for one of Discovery's main competitors

b)

A marketing manager from Discovery

c)

An engineer from Discovery

d)

A finance analyst from Discovery

91.

Which type of organizational structure provides direct two-way lines of responsibility, authority, and communication running from the top to the bottom?

a)

line organization

b)

matrix organization model

c)

cross-functional team

d)

Networking

92.

Eileen works in the human resources department of a corporation with several hundred employees. Her main function is to advise and assist managers in other departments, such as marketing and production. What is her role classified as?

a)

staff

b)

Networking

c)

cross-functional self-managed team

d)

line organization

93.

Joe, a production engineer, joined a team of specialists from other areas, such as marketing and finance, to work on long-term assignments. What type of team is this?

a)

cross-functional self-managed team

b)

staff

c)

matrix organization model

d)

line organization

94.

Barclay started a small company and hired two programmers and a marketing graduate to help develop interactive computer games. What type of team does Barclay consider himself part of?

a)

cross-functional team

b)

Networking

c)

line organization

d)

staff

95.

Chang is a project manager who borrows specialists from the organization on a regular basis to assist in major projects, and the specialists return to their departments after the project ends. What organizational model is this?

a)

matrix organization model

b)

cross-functional team

c)

line organization

d)

staff

96.

What term describes using communications technology and other means to link organizations and allow them to work together on common objectives?

a)

Networking

b)

line organization

c)

staff

d)

cross-functional team

97.

Which of the following describes an environment in which data is instantly available via the Internet to organizational partners?

a)

Real time

b)

Outsourcing

c)

Benchmarking

d)

Transparency

98.

Which term describes a company being so open to other companies working with it that electronic information is shared as if the companies were one?

a)

Transparency

b)

Insourcing

c)

Core competencies

d)

Virtual corporation

99.

Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?

a)

Virtual corporation

b)

Real time

c)

Outsourcing

d)

Benchmarking

100.

The process of rating an organization's practices, processes, and products against the best of the world is known as:

a)

Benchmarking

b)

Transparency

c)

Insourcing

d)

Core competencies