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Baby Boomers are often referenced as digital natives.

A) True
B) False

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Fayol believed that the amount of decision-making power vested in top management should be the same in all situations.

A) True
B) False

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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) line-and-staff
D) centralized

E) None of the above
F) B) and C)

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Assigning various functions that a firm might do for itself to outside organizations is known as competitive allocation.

A) True
B) False

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Organizational culture can produce either a positive or negative impact on an organization.

A) True
B) False

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Raven experienced frustration with her new job at Watchful Eyes Security Systems-that is, until she befriended an assistant, Alyssa, who works in another department. Over lunch in the break room, Alyssa shared with Raven the way things really work at Watchful Eyes. Raven quickly learned that


A) what she learned in her business classes didn't really help her in the real world.
B) an unofficial informal organization exists that she can utilize to help her do her job.
C) organizational culture can be negative.
D) not all businesses have a formal organization.

E) None of the above
F) All of the above

Correct Answer

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


A) middle managers.
B) empowered workers.
C) secondary employees.
D) staff personnel.

E) None of the above
F) A) and D)

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The informal organization of a business can help generate creative solutions and inspire teamwork and camaraderie.

A) True
B) False

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


A) production theory.
B) marketing theory.
C) organization theory.
D) finance theory.

E) All of the above
F) B) and C)

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When Barrett opened his auto body shop, his business plan included a(n) ________ that showed the relationships among employees in his organization and the lines of authority and responsibility.


A) business view map
B) department categorization
C) organization chart
D) operating matrix grid

E) B) and C)
F) None of the above

Correct Answer

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Cameron, a financial manager at Southeastern Bank, always attempts to treat each subordinate with respect and fairness. Cameron's treatment of employees is an example of Fayol's principle of


A) unity of command.
B) equity.
C) empowerment.
D) order.

E) A) and B)
F) All of the above

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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) matrix
B) cross-functional
C) line
D) line-and-staff

E) A) and B)
F) None of the above

Correct Answer

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As the span of control widens, there is usually a reduction of middle management and an emphasis on empowerment.

A) True
B) False

Correct Answer

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


A) networking
B) real time
C) virtual business
D) e-commerce

E) A) and C)
F) C) and D)

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Cross-functional self-managed teams are groups of employees empowered to work with suppliers and customers to develop new products and give great service.

A) True
B) False

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An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n)


A) bureaucracy.
B) oligarchy.
C) improvised organization.
D) inverted organization.

E) A) and B)
F) A) and C)

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The informal organization of a business is probably best suited to


A) give workers a clear idea of where they stand in the organization.
B) provide helpful guidelines about how to handle routine problems.
C) provide a mechanism that generates careful reasoned decisions about critical issues.
D) create a feeling of camaraderie among employees and encourage teamwork.

E) None of the above
F) All of the above

Correct Answer

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Corner Booksellers needs to reorganize its floor space. Management decided to reduce seating space in its stores in order to create room for new shelves to display the growing interest in books on clean eating. This company's effort is an example of how a firm may reduce its emphasis in one product line in order to serve customer preferences and trends.

A) True
B) False

Correct Answer

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An advantage of decentralized authority is that those individuals closest to the customers and more familiar with local conditions make decisions.

A) True
B) False

Correct Answer

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Because top managers supervise the firm's most talented workers, they generally have a broader span of control than middle or first-line managers.

A) True
B) False

Correct Answer

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