Introduction to Business Law Midterm

Introduction to Business Management Midterm Spring 2007 Professor Isler

You have 75 minutes to complete this exam.

1. The twenty-first century of business is strongly influenced by management of change, customer service, and business ethics. True False

2. The three levels of management are top management, tactical management, and operational management. True False

3. Baseball team culture is a rapidly changing environment, short product life cycle, high risk decision making, dependent on innovation for survival; often characterized by "free agents" True False

4. In The Art of War, Sun Tzu suggests that any strategy should incorporate a long-term perspective. True False

5. Adam Smith was the first person to recognize the principle of division of labor. True False

6. Scientific management is known for addressing the social needs of workers. True False

7. The United States' domination of the world economy has increased in recent years thanks to globalization. True False

8. There has been a lowering of trade barriers in recent years. True False

9. Business ethics and laws are the same, since they regulate conduct that can be evaluated by court systems. True False

10. The utilitarian view of ethics suggests decisions should be made on the basis of the greatest good for the greatest number of people. True False

11. The belief that each person has fundamental human rights that should be respected and protected is the justice approach. True False

12. Performance appraisal is used to let employees know which skills they have mastered and those that require improvement. True False

1 13. Avoiding illegal and unethical activities such as discrimination, sexual harassment, and pollution is an important aspect of Social Responsibility. True False

14. In the United States, company leaders are more likely to value risk avoidance and cooperation rather than risk taking and competition. True False

15. Employee self-management is based on the concept that most people like to feel that they belong. True False

16. The four key elements to a plan are objectives, actions, resources, and methods of implementation. True False

17. Formal planning is the only legitimate planning considered by the planning professionals. True False

18. Planning can help a firm prioritize its major problems or issues. True False

19. When company executives fail to abandon a plan after large resources have been spent on it, even though all available evidence suggests that the plan is not working the problem is called strategic planning. True False

20. Planning to help identify different future scenarios and spell out what to do in each scenario is known as operational planning. True False

21. Snoop Dogg wants to show Dr. Dre around the offices of “Harlem Scope Records.” While showing Dr. Dre around Snoop said “We believe in sharing revenue, and we believe we are the “sickest” record company on the planet, You feel me? We work hard, we play hard, we respect one another and we wear suits and ties in the office.

In explaining “how things are done around here" he was explaining Harlem Scope Records’ A. Competitive Advantage B. Organizational Culture C. Systematic Approach to Management D. Internalized Approach to Management E. Institutional Approach to Management

22. A company that failed even though it reached goals was probably A. efficient but not effective. B. effective but not efficient. C. efficient and effective, but influenced by outside forces. D. influenced by inefficient employees. E. focused on the long term at the expense of the short term.

2 23. The twenty-first century of world business is strongly influenced by management of change, customer service, and A. employee relations. B. tactical planning. C. business ethics. D. corruption. E. strategic management.

24. What do WorldCom, Tyco, General Dynamics, Enron, Arthur Anderson, and Radio Shack have in common? A. All have succeeded thanks to increased customer service. B. All have failed because of lack of customer service. C. All have improved their management of change. D. All are known for exemplary business ethics. E. All have experienced problems because of questionable business ethics.

25. Operational managers are largely responsible for A. the strategic direction of the organization. B. translating tactics into strategic goals. C. procuring external resources. D. working with outside organizations. E. day-to-day supervision.

26. The manager who would negotiate a conflict between the CEO and a group of disgruntled supervisors is called A. a strategic manager. B. a tactical manager. C. an operational manager. D. a bargainer. E. a situational manager.

27. A sales manager at J.C. Penney who sets up schedules and work shifts is called A. a strategic manager. B. a tactical manager. C. an operational manager. D. an outside manager. E. the day shift manager.

28. Tiffany de Epiphany is a hooker who has just entered into a contract with “True Hard Brown” True Brown ask “Tiffany, what are you going to do to me?” Tiffany said First I’m gonna unfreeze you, then I’m gonna change you and finally I’m gonna refreez you. True Hard Brown said “Baby I’m scared of you.” Based on the above it is obvious that Tiffany has read

A. Lewin's Three-Step Model B. Chalton’s Three-Step Model 3 c. The Deep Freeze by Henry Ford d. “Change Your Employees now” by Donald Trump

29. To become a successful manager, it requires that you learn how to be ______and _____ to be able to do a variety of things. A. flexible; adaptable B. tactical; operational C. individualized; manage D. strong; free willed E. Machiavellian; strong-willed

30. Which of the following is not a major function of management? A. Decision-making B. Strategizing C. Organizing D. Following E. Controlling

31. Which term reflects the increase in change in the international environment? A. Nationalization B. Industrialization C. Global shift D. Environmentalism E. Institutionalization

32. Thanks to globalization, what communist country is likely to become a major economic world player? A. China B. Cuba C. North Korea D. South Korea E. Vietnam

33. In industrialized countries, the population is: A. shrinking B. staying the same C. becoming younger D. becoming less global E. becoming older

34. Coca-Cola, McDonald's, and Taco Bell are all examples of products that: A. Global consumers tend to avoid B. Global consumers prefer C. Prefer to export rather than set up operations in foreign countries D. Prefer to set up operations in foreign countries rather than export E. Are not marketed globally 4

35. NAFTA is an agreement between: A. The United States and Japan B. The United States and the European Economic Community C. The United States and Canada D. The United States and Mexico E. The Untied States, Mexico, and Canada

36. All of the following statements are true EXCEPT: A. The United States no longer dominates the world economy. B. United States multinationals continue to dominate international business. C. Mini-multinationals are present in industrializing Asian countries. D. Centrally planned economies are more accessible to Western businesses. E. Global economies are more knowledge-intensive than ever before.

37. The principles that explain what is right or wrong, good or bad, and what is appropriate or inappropriate in various settings are referred to as: A. Ethics B. Values C. Norms D. Mission Statements E. Corporate Credos

38. Decisions made on the basis of the greatest good for the greatest number reflects which approach to ethics? A. Utilitarianism B. Individualism C. Rights D. Justice E. Collectivism

39. Which is not an example of a business ethics situation? A. An employee using company long distance for personal use B. A company complies with the minimum wage law C. A manager inflates an employee's performance record to help the individual receive a promotion D. A worker steals merchandise, which is about to be marked down for liquidation E. An employee lies about being sick in order to visit a friend in town on vacation

40. A person uses inside information to buy a stock that is about to rise dramatically in value. No law has been violated and no one else is hurt. Which type of ethics approach applies? A. Utilitarianism B. Individualism C. Rights approach D. Justice approach E. Proactive approach

41. Decisions made based on the belief that individual self-interest should be promoted as long as it does not harm others reflect which approach to ethics? A. Personalism

5 B. Utilitarianism C. Individualism D. Rights E. Justice

42. What is the name of the policy that protects employees who disclose information about illegal, immoral, or illegitimate practices by the employer? A. Code of ethics B. Corporate credo C. Whistle blower policy D. Protective agent policy E. Retribution policy

43. Whistleblower policies should include all of the following key features except: A. set up meaningful procedures to deal fairly with reported violations B. protect those that report violations from retaliation C. make provisions for anonymous reporting D. keep feedback on ethics violations from employees so that they do not know that the policy is being taken seriously E. involvement of top management in the whistleblower policy

44. Managers can influence the ethical behavior of those within their units in all of the following ways except: A. take actions that develop trust, such as sharing useful information and making good on commitments B. act consistently, so that employees are not surprised by unexpected management actions or decisions C. tell white lies and other actions designed to manipulate people by giving a false impression D. demonstrate integrity by keeping confidences and showing concern for others E. meet with employees to discuss and define what is expected of them

45. Which of the following is not a basic guideline for giving employee discipline in a fair and impartial way? A. Notify employees in advance of a company's work rules and the consequences for violating them. B. Investigate the facts of an employee's misconduct before applying discipline. C. An employee who violates a work rule should be given the opportunity to correct the behavior. D. Be consistent in the response of rule violations. E. Administer discipline based on favoritism and discrimination.

46. Public displays of affection in the workplace are almost always: A. inappropriate B. illegal C. non-disruptive D. encouraged E. ethical

6 47. The system of shared values, assumptions, beliefs, and norms that unite members of an organization create the organization's: A. climate B. culture C. change system D. value set E. espoused values

48. The elements of culture that are widely shared, operate unconsciously, and are non-negotiable are called: A. central values B. visible culture C. espoused values D. core beliefs E. cultural assumptions

49. Visible culture a. can be seen, heard, and felt a. can be heard, and felt activity. b. Can be felt. c. Can be seen and heard. d. All of the above

The process of internalizing or taking organizational values as one's own is called: A. socialization B. pre-arrival C. encounter D. metamorphosis E. acclimation

50. When Matt discovers that the Marines really do believe in pride, honor, duty, and country, and begins to take on those values in a more personal way, the stage of socialization is called: A. pre-arrival B. encounter C. acceptance D. adaptation E. metamorphosis

51. Mr. Walt Disney believed that every employee should present an ideal image to the public. This meant being impeccably groomed, cheerful, and friendly. This is an example of culture influenced by: A. the founder B. employees C. the CEO D. children E. board members

52. The narratives and legends that vividly capture the organization's values refer to a company's: A. language B. stories 7 C. heroes D. rituals and ceremonies E. leadership

53. The police officers and firefighters that died at the World Trade Center on September 11, 2001 are examples of what form of culture creation? A. A symbol B. A hero C. An example D. A legend E. An icon

54. The specific steps a firm uses to achieve desired outcomes are called A. actions. B. objectives. C. guidelines. D. programs. E. projects.

55. Describing how intended actions will be carried out is which element of the planning process? A. Objectives B. Actions C. Resource allocation D. Implementation guidelines E. Planning protocols

56. When United Air Lines asserts that its profits will rise by 10 percent in the coming year due to a good economy and increased consumer confidence, which phase of planning is being completed? A. Objectives B. Actions C. Resources D. Implementation E. Allocation

57. Finalizing a plan reflecting sources of revenues but also expenditures is which aspect of planning? A. Setting objectives B. Describing intentions C. Allocation of resources D. Implementation E. Evaluation

58. The purpose of the elements of planning is to A. provide a blueprint for management action. B. make control function challenging for managers. 8 C. increase employee turnover. D. eliminate stress. E. reduce shrinkage.

59. When DaimlerChrysler Corporation assigned an executive with expertise in building up a failing division to a successful unit of the company, the benefit of planning which was realized was A. identifying factors likely to affect the organization. B. achieving coordination of efforts. C. establishment of priorities. D. assessment of external forces. E. assuring the availability of adequate resources.

60. Coke gained competitive advantage against Pepsi in the 1980s because Pepsi scattered efforts across unrelated products while Coke focused on its core products. This is an example of: A. Coordinating efforts B. Establishing priorities C. Assessing external forces D. Looking for resources E. Creating performance standards 1. TRUE 2. FALSE 3. TRUE 4. TRUE 5. TRUE 6. FALSE 7. FALSE 8. TRUE 9. FALSE 10. TRUE 11. FALSE 12. TRUE 13. TRUE 14. FALSE 15. TRUE 16. TRUE 17. FALSE 18. TRUE 19. FALSE 20. FALSE 21. Organizational culture is a system of shared values, assumptions, beliefs, and norms that unite the members of an organization ("The way things are done around here"). 22. A 23. C 24. E. All have experienced problems because of questionable business ethics. 25. E 26. B 27. C

9 28. A 29. To become a successful manager, it requires that you learn how to be flexible and adaptable 30. D 31. C 32. A 33. E 34. B 35. NAFTA is an agreement between: (E) The Untied States, Mexico, and Canada 36. B 37. A 38. A 39. B 40. B 41. C 42. C 43. D 44. C 45. E 46. A 47. B 48. D 49. Visible culture- can be seen, heard, and felt 50. E 51. A. 52. B 53. B 54. A 55. D 56. A 57. C 58. A 59. B 60. B