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A virtual corporation refers to a permanent network of firms linked by high-tech communication systems.

A) True
B) False

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The ________ an organization's structure,the ________ the span of control.


A) flatter; wider
B) flatter; narrower
C) taller; wider
D) taller; flatter

E) B) and C)
F) C) and D)

Correct Answer

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The concept of economies of scale suggests that the bigger a plant,the more efficient production becomes.

A) True
B) False

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Outsourcing involves assigning various functions to outside organizations.

A) True
B) False

Correct Answer

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Transparency describes the relationship between a firm and its stockholders.

A) True
B) False

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Benchmarking rates an organization's products and operations against the industry average.

A) True
B) False

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The Internet makes real time availability of data possible.

A) True
B) False

Correct Answer

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Which of the following describes a group of employees from different departments working together on a long-term basis?


A) Focus group
B) Mixed function groups
C) Self-managed teams
D) Intrapreneurial teams

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

Correct Answer

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Line managers issue orders,enforce discipline,and adjust the organization as conditions change.

A) True
B) False

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Effective employees learn the relationships of employees in the firm's informal organization.

A) True
B) False

Correct Answer

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All of the following are advantages of a matrix organization structure except:


A) it gives flexibility to managers in assigning people to projects.
B) it provides for more efficient use of organizational resources.
C) the project teams are temporary.
D) it encourages interorganizational cooperation and teamwork.

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

Correct Answer

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Given the current business environment,managing ________ has become a critical managerial function.


A) consumer demand
B) international markets
C) change
D) negative spiritual issue

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

Correct Answer

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Organizing a business begins with:


A) acquiring the necessary resources.
B) choosing the best qualified employees.
C) developing an efficient plan of action.
D) determining the work to be done.

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

Correct Answer

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Weber put great trust in the creativity,skills,and pride of employees and believed that managers should act more as coaches than as bosses.

A) True
B) False

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An advantage of a line and staff organization is that it provides people to advise and assist line managers as they perform their jobs.

A) True
B) False

Correct Answer

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_____________ refers to the linking of organizations with communications technology so that they can work together to achieve common objectives.


A) Networking
B) Structural linking
C) Functional sharing
D) Strategic planning

E) C) and D)
F) B) and D)

Correct Answer

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The term mass production refers to:


A) producing large specialized items.
B) efficiently producing large quantities of goods.
C) the production of religious icons.
D) two or more firms combined to better meet the needs of customers.

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

Correct Answer

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Inverted organizations empower employees by adding multiple layers of management and long lines of communication.

A) True
B) False

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Benchmarking requires organizations to compare each function against the best in the world.

A) True
B) False

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In a _____________ organization,specialists from different parts of an organization are brought together to work on specific projects,but these specialists still remain part of a traditional line and staff organizational structure.


A) matrix
B) line
C) line and staff
D) centralized

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

Correct Answer

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