Test Bank for Fundamentals of Management Sixth Edition 6th Edition Robbins 36 Test Bank for True – False Questions Test Bank Free Text Questions 73 Test Bank Multiple Choice Questions Which of the following is included in an organization's specific environment? A) competitors B) inflation C) government legislation D) interest rates E) demographics For an amusement theme park like Paramount Canada's Wonderland in Toronto, an insurance provider would be an example of which factor in its specific environment? A) competitor B) pressure group C) supplier D) customer E) government agency Political/legal conditions in Canada include all of the following factors except A) interest rates B) the competition bureau C) human rights D) egg marketing boards E) employment equity Managers operate within the internal and external constraints imposed by A) federal and provincial governments B) the organization's board of directors C) the organization's culture and environment D) industry regulation E) the employees of the organization As employees have begun to seek more balance in their lives, organizations have had to adjust by offering family leave policies, more flexible work hours, and even on-site child care facilities This is an example of how changing conditions can affect an organization A) demographic B) political/legal C) technological D) economic E) sociocultural The global environment of an organization includes which of the following? A) pressure groups B) stakeholders C) issues directly relevant to achieving organizational goals D) suppliers E) demographic conditions According to the textbook, the environment includes those external forces that have a direct and immediate impact on managers' decisions and actions and are directly relevant to the achievement of the organization's goals A) general B) primary C) forward D) specific E) secondary When researchers discovered a link between trans fatty acids and heart disease, many consumers became concerned As a result, Ontario-based Voortman's Cookies decided to eliminate all trans fats from its products Voortman's was responding to changing conditions A) economic B) technological C) sociocultural D) competitive E) political/legal A downturn in contributions from the public to the United Way charity is an example of the impact from what factor in its general environment? A) economic B) global C) political D) technological E) sociocultural The Canadian Human Rights Act is an example of a A) political/sociological condition B) sociocultural condition C) demographic condition D) political/legal condition E) sociolegal condition Internal constraints that restrict a manager's decision options arise from A) the rules and policies implemented by top managers B) the organization's culture C) the activities of industry competitors D) the organization's environment E) the laws and regulations governing workplace practices Interest rates, inflation rates, and stock market indexes are all examples of what factor in an organization's general environment? A) sociocultural B) legal C) political D) economic E) technological Economic conditions include all of the following factors except A) stock market fluctuations B) federal government legislation C) inflation D) interest rates E) changes in disposable income Human resources managers are increasingly using the Internet to search for qualified candidates through on-line résumé systems and job-posting websites This is an example of how changing conditions can affect an organization A) technological B) demographic C) political/legal D) economic E) sociocultural According to the textbook, the members of which one of the following demographic groups are thinking, learning, creating, shopping, and playing in fundamentally different ways that are likely to greatly impact organizations and managers? A) Generation Y B) the Depression group C) Generation X D) the World War II group E) the baby boomers An organization's specific environment A) is the same regardless of the organization's age B) includes economic and global conditions that may affect the organization C) is unique and changes with conditions D) is determined by the top level of management E) includes demographic and technological conditions that may affect the organization The omnipotent view of management means A) managers have little or no responsibility for an organization's success or failure B) the top manager is the only person in charge C) managers are directly responsible for an organization's success or failure D) managers are directly responsible for all internal factors within their control E) outside forces have the most influence on organizational outcomes The primary goal of managers when dealing with suppliers is to ensure a steady flow of A) inputs at the lowest price available B) cheap labour to produce products at the lowest possible cost C) industry entrants to help maximize the competition among suppliers D) customers at the distribution outlets E) cash from investors into the organization Which of the following demographic groups includes individuals who were born between the years 1947-1966? A) the baby boomers B) the Depression group C) Generation Y D) the World War II group E) Generation X Despite the existence of both internal and external constraints, managers can still improve organizational performance by: A) influencing the organization's culture and environment B) electing new government officials at the federal and provincial levels C) introducing new rules and procedures D) redesigning the organization's structure E) delegating more responsibility to employees Neighbourhood activists who protest against the building of "big box" stores would be considered which factor in the specific environment for Wal-Mart or Home Depot? A) pressure group B) customer C) government agency D) competitor E) supplier For an organization such as a hospital that needs nurses, the labour union and the local labour market are examples of which factors in its specific environment? A) government agency and competitor B) pressure group and supplier C) pressure group and competitor D) customer and special-interest group E) both are examples of suppliers The external environment consists of the global environment, A) primary environment, and the secondary environment B) primary environment, and the general environment C) specific environment, and the general environment D) organizational culture, and the general environment E) national culture, and the specific environment According to the symbolic view, managers have a(n) effect on substantive organizational outcomes A) unlimited B) negative C) substantial D) moderate E) limited Sociocultural conditions consist of the A) demographic profiles of an organization's suppliers B) laws that govern human rights and the competitive activities of organizations in a society C) changing expectations of the society in which organizations operate D) socialization processes that help to maintain organizational cultures E) level of unemployment and real economic incomes of workers The specific environment of organizations consists of external forces that have a direct impact on managers' decisions and actions The main forces are customers, suppliers, competitors, and A) pressure groups B) employees C) shareholders D) lawyers E) legislators For most organizations, the most rapidly changing factor has been conditions A) technological B) economic C) political/legal D) global E) sociocultural Which Act makes it illegal for employers to discriminate on the basis of race, national or ethnic origin, colour, religion, age, sex, marital status, mental or physical disability, or sexual orientation? A) Canadian Human Rights Act B) Canadian Charter of Rights and Freedoms C) Canadian Civil Liberties Act D) Canada's Employment Equity Act E) Canada's Competition Act United Parcel Service represents which factor to Canada Post in its specific environment? A) supplier B) pressure group C) government agency D) customer E) competitor The symbolic view of management means A) managers are only responsible for those factors that influence organizational performance B) successful managers become role models for employees C) employees are directly responsible for an organization's success or failure D) managers have only a limited effect on organizational outcomes E) managers are directly responsible for an organization's success or failure The view of management is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives A) interactive B) symbolic C) omnipotent D) reflective E) dynamic Which of the following is an example of a force in the general environment? A) customers B) competitors C) suppliers D) demographics E) pressure groups What are the two views of managerial impact on the success or failure of the organization? A) symbolic and interactive B) omnipotent and symbolic C) omnipotent and reflective D) dynamic and reflective E) reflective and interactive To a cable television provider like Shaw Cablesystems, a satellite TV company like Bell would be considered a A) customer D) exporting E) importing A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities would be called a A) franchising agreement B) transnational venture C) strategic alliance D) foreign subsidiary E) brokering agreement Which of the following strategies for going global involves the lowest level of risk and investment? A) foreign subsidiary B) strategic alliances C) foreign contracting D) licensing and franchising E) exporting XYZ is an international corporation that has recently changed its philosophy It has decentralized management and decision making to the local countries in which it operates XYZ is pursuing a approach A) global B) multidomestic C) natural global D) intra-governmental E) multicultural Given a choice, most managers would prefer to operate in environments that are A) dynamic and flexible B) simple and stable C) simple and dynamic D) complex and stable E) complex and dynamic Three economic issues that a global manager might need to understand include A) tax policies, political stability, and cultural differences B) currency exchange rates, inflation rates, and tax policies C) tax policies, employment laws, and cultural differences D) inflation rates, tax policies, and political stability E) employment laws, currency exchange rates, and political stability The enhanced speed and quality of managerial decision making due to improvements in office automation is an example of the impact of which general environmental factor? A) political B) demographic C) sociocultural D) global E) technological A joint venture is a specific type of A) licensing agreement B) foreign contracting arrangement C) foreign subsidiary D) strategic alliance E) franchise According to Hofstede, managers and employees vary on five dimensions of national culture Which of the following represents one of the five dimensions that Hofstede identified? A) Power avoidance B) Freedom vs Restraint C) Open-Minded vs Close-minded D) Achievement vs Nurturing Which of the following definitions best describes a borderless corporation? A) a company that maintains significant operations in at least two countries but organizes by industry to reduce geographical barriers B) a company that maintains significant operations in at least two countries C) a company that maintains significant operations in at least two countries but decentralizes management to each country D) a company that maintains significant operations in at least two countries but is managed from a base in the home country E) a company that maintains significant operations in at least two countries and has multiple home bases When an organization drops its structure based on countries and reorganizes according to industries, it is pursuing a global business approach known as A) transactional organization B) polycentric organization C) multinational organization D) borderless organization E) multicultural organization Multinational corporations (MNCs) became commonplace in the A) 1960s B) 1940s C) 1970s D) 1980s E) 1950s Managers try to minimize because it is a threat to an organization's effectiveness A) uncertainty B) technology C) efficiency D) product development E) inflation The WTO is a global organization that evolved from A) GATT B) NAFTA C) EEC D) ASEAN E) the Maastricht Treaty Since the emergence of digital music formats, the recorded music industry has been operating in an environment that is best described as A) flexible B) stable C) dynamic D) divergent E) static The cultural dimension of measures the degree to which a society relies on social norms and procedures to alleviate the unpredictability of future events A) assertiveness B) power distance C) performance orientation D) uncertainty avoidance E) future orientation Which of the following is a trading alliance of Southeast Asian nations? A) Southern Cone Common Market B) FTAA C) Mercosur D) ASEAN E) NAFTA Which of the following strategies for going global involves the highest level of risk and investment? A) strategic alliances B) exporting C) foreign contracting D) licensing and franchising E) foreign subsidiary From a cultural standpoint, research indicates that has a greater effect on employees than A) employment law; religion B) national culture; employment law C) national culture; organizational culture D) organizational culture; national culture E) organizational culture; religion Which of the following definitions is most accurate for a multinational corporation? A) a company that maintains significant operations in at least two countries but decentralizes management to each country B) a company that maintains significant operations in at least two countries but is managed from a base in the home country C) a company that maintains significant operations in at least two countries D) a company that maintains significant operations in at least two countries and has multiple home bases E) a company that maintains significant operations in at least two countries but organizes by industry to reduce geographical barriers 36 Free Test Bank for Fundamentals of Management Sixth Canadian Edition 6th Edition Robbins True False Questions The dominant view in management theory suggests that managers are omnipotent True False In the omnipotent view of management, much of an organization's success or failure is due to forces outside management's control True False Research indicates that organizational culture has a stronger impact on employees than national culture True False Multinational corporations became commonplace in the mid-1960s True False Only when a country's legal-political environment is unstable or revolutionary is it of concern to managers True False Global sourcing called global outsourcing refers to the practice of purchasing materials or labour from around the world wherever it is cheapest True False Shareholders are defined as any constituency in the organization's external environment that may be affected by the organization's decisions and actions True False A command economy is one in which resources are primarily owned and controlled by the private sector True False The legal-political environment is an important factor of managing in a foreign environment True False The three original partners of NAFTA are Canada, the United States, and Mexico True False Jim was born and raised in a country with a long-term orientation In his culture, leisure time is highly valued because it is a vital part of the longterm health plan for the individual True False The World Trade Organization was formed in 1995 and evolved from the Maastricht Treaty, an agreement in effect since the end of World War II True False The European Union (EU) and the North American Free Trade Agreement (NAFTA) have both created regional trading alliances True False Multidomestic corporations use one strategy for all global operations based on the different domestic influences that are present in the firm's original home market True False The symbolic view of management helps to explain the high turnover among college and professional sports coaches, who are often fired and replaced when their teams perform poorly True False People in a society that is high in uncertainty avoidance don't feel threatened by uncertainty and experience low levels of anxiety, stress, and aggressiveness True False Setting up a foreign subsidiary involves a higher degree of risk and commitment than franchising True False Mercosur is a trading alliance between 10 southeast Asian nations True False The General Agreement on Tariffs and Trade (GATT) was signed in 1992 to create the EU True False A manager's role in the omnipotent view of management is to create meaning out of randomness, confusion, and ambiguity True False The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives True False Through the creation of the EU, each member country now has increased border controls, nationalist policies, and protected industries True False If an organization subscribes to the symbolic view of management, it is unreasonable to expect managers to have a significant effect on the organization's performance True False Power distance refers to the degree to which a society encourages people to be tough, confrontational, assertive, and competitive True False Transnational corporations run their businesses from their home country True False In the symbolic view of management, managers are seen as directly responsible for an organization's success or failure True False NAFTA has strengthened the economic power of all three member countries True False Demographic conditions are part of the organization's general environment True False The term suppliers includes providers of financial and labour inputs True False The Environmental Uncertainty Matrix ranges in complexity from "stable to dynamic" on the horizontal axis and from "simple to complex" (degree of change) on the vertical axis True False Economic conditions are part of the organization's specific environment True False The part of the environment that is directly relevant to achievement of an organization's goals is the specific environment True False By decentralizing management authority to the local country, the transnational corporation reflects an ethnocentric attitude True False To a national television network like the CBC, your home DVD player could be considered a competitor True False Importing is an approach to going global that involves making products at home and selling them overseas True False "Born globals" are companies that choose to go global from inception; they commit resources up front (material, people, financing) to doing business in more than one country True False Free Test Bank for Fundamentals of Management Sixth Canadian Edition 6th Edition Robbins Free Text Questions In a short essay, name and briefly describe three major regional trading alliances Answer Given a The European Union; the signing of the Maastricht Treaty created the European Union This treaty united 12 countries (27 by 2007) Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, and Germany originally as a unified economic and trade entity The growing trading block now encompasses a population base of well over 450 million people As a single market, the EU has eliminated barriers to travel, employment, investment and trade between member nations, and introduced a common currency, the euro, which most member countries have chosen to adopt; b North American Free Trade Agreement (NAFTA) when the Mexican, Canadian, and U.S governments reached agreements on key issues covered by NAFTA in August, 1992, a vast economic bloc was created Between 1994, when NAFTA went into effect, and 2003, Canada remained the United States' number-one trading partner In 2003, Canadian exports to the U.S were $331 billion, accounting for 83 percent of our total exports, roughly equivalent to one-third of our GDP Many economists argue that eliminating the barriers to free trade has resulted in a strengthening of the economic power of all three countries; c Association of Southeast Asian Nations (ASEAN) the ASEAN is a trading alliance of 10 Southeast Asian nations During the years ahead, Asia, and particularly the Southeast Asian region, promises to be one of the fastest-growing economic regions of the world It will be an increasingly important regional economic and political alliance whose impact eventually could rival that of both NAFTA and the EU In a short essay, explain the difference between a multinational corporation (MNC), mutidomestic, global and transnational-borderless organizations Provide examples for each type of organization Answer Given According to the text here are the definitions:a Multinational corporation: a broad term usually used to refer to any and all types of international companies that maintain operations in multiple countries A company that maintains significant operations in multiple countries but manages them from a base in the home country; b Multidomestic Corporations: an MNC that maintains significant operations in more than one country but decentralizes management to the local country This type of organization does not attempt to manage foreign operations from its home country Instead, local employees typically are hired to manage the business, and marketing strategies are tailored to that country's unique characteristics This type of global organization reflects the polycentric attitude; c Global Companies: centralize management and other decisions in the home country These companies treat the world market as an integrated whole and focus on the need for global efficiency Although these companies may have considerable global holdings, management decisions with company-wide implications are made from headquarters in the home country This approach to globalization reflects the ethnocentric attitude; d Transnational or Borderless Organizations : many companies are going global by eliminating structural divisions that impose artificial geographical barriers This type of global organization is called a transnational or borderless organization Borderless management is an attempt by organizations to increase efficiency and effectiveness in a competitive global marketplace In a short essay, differentiate between the symbolic view and the omnipotent view of management Include specific examples of each view to support your answer Answer Given a The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives This omnipotent view isn't limited to business organizations It can also be used to help explain the high turnover among college and professional sports coaches, who can be considered the "managers" of their teams Coaches who lose more games than they win are seen as ineffective They are fired and replaced by new coaches who, it is hoped, will correct the inadequate performance In the omnipotent view, when organizations perform poorly, someone has to be held accountable regardless of the reasons why, and in our society, that "someone" is the manager Of course, when things go well, someone needs to be praised So the manager also gets the credit  even if they had little to with achieving positive outcomes; b The symbolic view says that a manager's ability to affect outcomes is influenced and constrained by external factors In this view, it is unreasonable to expect managers to significantly affect an organization's performance Instead, an organization's results are influenced by factors outside the control of management These factors include the economy, market changes, governmental policies, competitors' actions, conditions in the particular industry, control over proprietary technology, and decisions made by the previous manager Identify the factors in the specific, general and global environments that can influence an organization Answer Given The specific environment includes customers, suppliers, competitors, and public pressure groups The general environment includes the broad economic, political/legal, sociocultural, demographic and technological conditions that may affect an organization Changes in the specific environment usually have a greater impact on the organization than changes in the general environment The global market presents many opportunities and challenges for the modern manager The issues addressed in the general environment (economic, demographic, technological, sociocultural and legal-political) need to be examined with a global perspective in mind as well With the entire world as a market and national borders becoming increasingly irrelevant, the potential for intelligent organizations to grow expands dramatically Explain what is meant by the term "Born Global?" Answer Given Born Globals: The infrastructure that has been built in the past few decades has led to the creation of a new mind set represented by the "born global." The classification of different types of international organizations tends to describe large international businesses However, there is an increasing number of businesses called born globals that choose to go global from inception These companies (also known as international new ventures or INVs) commit resources up front (material, people, financing) to doing business in more than one country and are likely to continue to play an increasingly important role in international business This new breed of company is reflection of the new opportunities available for business Total Points: Quiz can't be auto m ... reduce geographical barriers 36 Free Test Bank for Fundamentals of Management Sixth Canadian Edition 6th Edition Robbins True False Questions The dominant view in management theory suggests that managers... conditions C) competitors D) pressure groups E) suppliers 73 Free Test Bank for Fundamentals of Management Sixth Canadian Edition 6th Edition Robbins Multiple Choice Questions - Page If the components... to doing business in more than one country True False Free Test Bank for Fundamentals of Management Sixth Canadian Edition 6th Edition Robbins Free Text Questions In a short essay, name and briefly