Quiz: Business Organizations And Markets

10 Questions | By Nksandoval | Updated: Mar 22, 2022 | Attempts: 1054

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Chapter 8 quiz from Understanding Business text book.

Questions and Answers

1.

Economies of scale:
- A.
  
  Are available to small firms but not to large firms due to management inefficiencies
- B.
  
  Are achieved when a firm reduces its average cost of goods as it produces more
- C.
  
  Can be avoided by purchasing supplies and raw materials in large quantities
- D.
  
  Help explain the success of small businesses
2.

Mo was just hired by a firm that has a very bureaucratic organization. Mo is likely to encounter which of the following conditions in his firm?
- A.
  
  Few layers of management
- B.
  
  Many rules and regulations that employees are expected to follow
- C.
  
  A career path that requires employees to change departments on a regular basis
- D.
  
  Departmentalization by customer group
3.

In a(n) ________ organization, decision-making authority is maintained at the top level of management.
- A.
  
  Compartmentalized
- B.
  
  Standardized
- C.
  
  Inverted
- D.
  
  Centralized
4.

Within its production department, Marlin Manufacturing has shift leaders, supervisors, assistant plan managers, plan managers, product group managers, assistant division managers, division managers, an assistant vice president for production, and a vice president in charge of production. Marlin Manufacturing is an example of a(n) _________ organization.
- A.
  
  Tall
- B.
  
  Wide
- C.
  
  Cross-functional
- D.
  
  Decentralized
5.

Which of the following positions in a firm would be classified as a staff position?
- A.
  
  An assembly line worker for a major auto manufacturer
- B.
  
  The chief executive officer of a small corporation
- C.
  
  A sales manager for a chain of clothing stores
- D.
  
  A lawyer employed in the legal department of a manufacturing corporation
6.

Groups of employees from different departments who work together on a long-term basis are members of:
- A.
  
  Focus groups
- B.
  
  Control groups
- C.
  
  Cross-functional teams
- D.
  
  Intrapraneurial teams
7.

As the head of the marketing department, Jody works with her subordinates on complex and challenging projects. The level of detail in this work requires Jody to spend a significant amount of tiime with her subordinates providing advice and support. Within the marketing department, Jody probably has a(n) ______ span of control.
- A.
  
  Wide
- B.
  
  Narrow
- C.
  
  Unlimited
- D.
  
  Functional
8.

The process of rating an organization's practices, processes, and products against the best of the world is known as:
- A.
  
  Ratio analysis
- B.
  
  Analysis of variance (ANOVA)
- C.
  
  Benchmarking
- D.
  
  A PERT (program evaluation and review technique) analysis
9.

Excite Enterprises has decided to let another company that specializes in accounting services handle all of its financial records and prepare its tax forms. This is an example of:
- A.
  
  Outsourcing
- B.
  
  Functional reassignment
- C.
  
  Functional inversion
- D.
  
  Benchmarking
10.

The _________ consists of relationships that develop spontaneously as employees meet and form power centers.
- A.
  
  Informal organization
- B.
  
  Bureaucratic structure
- C.
  
  Secondary organization
- D.
  
  Formal organization