Test 1 - Intro to Business

Which of the following is NOT one of the four functions of management?

• Planning
• Controlling
• Organizing
• Budgeting
• Leadership

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. The development, maintenance, and allocation of resources to achieve its goal will require:

• processing
• organizing
• leadership
• planning
• controlling

A _____ is a formal document that states an organization’s purpose and reason for existing and describes its basic philosophy.

• corporate manifesto
• mission statement
• vision
• company proclamation
• principle of existence

_____ provides the structure of people, positions, departments, and activities within which the company objectives can be accomplished.

• Leadership
• Communicating
• Organizing
• Planning
• Controlling

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel’s top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The establishment of a new company and assigning the employees in the division the task of making an idea a reality requires which management function?

• Organizing
• Controlling
• Communicating
• Planning
• Leadership

Middle managers usually:

• act as representatives to other firms
• set overall goals and objectives
• manage the employees on the assembly line
• carry out plans and policies of top management
• act as figureheads for the company

Top management usually performs all of the following tasks EXCEPT:

• establish long-range plans
• formulate basic policies of operation
• direct workers on the assembly line
• develop strategic plans
• review new product development

Pele Arnaz is a plant foreman for a generator manufacturer. He spends his day carrying out operational plans for the ongoing daily activities of the plant. Arnaz is a _____ manager.

• functional
• coordination
• supervisory
• middle
• strategic

Dewayne Gibbons of Burger King decided to introduce a new sliced chicken sandwich without consulting any of his subordinates or the franchise. Managers who use this style of decision making exhibit the _____ style of leadership.

• consultative
• one dimensional
• closed-door
• laissez-faire
• autocratic

The CEO of Whole Foods Markets is John Mackey. It has a set of quirky management rules that makes Whole Foods an odd but effective workplace. Every store is divided into about eight functional teams: An employee is hired provisionally to a store team. After four weeks of work, the team votes whether to hire him or her; a two-thirds yes vote is necessary to join the staff permanently. Which leadership style appears to be used by Whole Foods?

• Autocratic
• Multi-dimensional
• Reactive
• Democratic (participative)
• Defensive