Q&A Hero

Q: When computing the cost capital for equity securities the effects of dividends are ignored because they are not tax deductible to the corporation.

Q: A bank has a training program that contains six stages. Newcomers must complete each stage of the training in one month, making the total training time six months. Which of the following socialization tactics is this bank using? A) random B) informal C) disjunctive D) fixed

Q: The cost of capital is calculated from a weighted average of debt and equity security costs.

Q: Which of the following socialization tactics separates new organizational members from existing members during the learning process? A) individual B) disjunctive C) investiture D) formal

Q: In general, investments should not be made unless the return in funds is less than the marginal cost of the investment capital.

Q: Investment alternatives are generally ranked according to the return they yield in excess of their cost of capital.

Q: ________ role orientation results when individuals are allowed and encouraged to be creative and to experiment with changing norms and values to better achieve organizational values. A) Institutionalized B) Formalized C) Individualized D) Centralized

Q: Investment decisions are made to yield the lowest acceptable rate of return.

Q: A newly hired sales trainee is encouraged to go into the marketplace, meet customers, and sell products her own way so that she can learn the appropriate tactics on her own. This is an example of a(n) ________. A) institutionalized role orientation B) serial socialization tactic C) sequential training program D) individualized role orientation

Q: Activity-based costing is sometimes referred to as transaction costing.

Q: In an organization, all the newly hired trainees have to go through a pre-designed classroom training program. This is an example of a(n) ________. A) individualized role orientation B) disjunctive socialization tactic C) institutionalized role orientation D) informal training program

Q: While cost-driver selection is an informative part of activity-based costing, it is not a required part of the methodology.

Q: ________ role orientation results when individuals are taught to respond to a new context in the same way that existing organizational members respond to it. A) Institutionalized B) Individualized C) Informal D) Decentralized

Q: Which of the following allows new organizational members to try new norms and values? A) an individualized role orientation B) a high degree of centralization C) an institutionalized role orientation D) a narrow stance on social responsibility

Q: Activity-based costing techniques have been developed to alleviate accounting problems by refining overhead allocation processes to more directly reflect actual proportions of overhead consumed by the production activity.

Q: Collective socialization tactics ________. A) give newcomers precise knowledge of the timetable associated with completing each stage in the learning process B) allow newcomers to learn on the job, as members of a team C) provide newcomers with common learning experiences designed to produce a standardized response to a situation D) provide newcomers with explicit information about the sequence in which they will perform new activities

Q: The purpose if the sum-of-the-years'-digits (SYD) method is to reduce the book value of an asset rapidly in early years and at a lower rate in the later years of its life.

Q: ________ is the process by which members learn and internalize the values and norms of an organization's culture. A) Formalization B) Centralization C) Internalization D) Socialization

Q: Amortization and depreciation have different meanings.

Q: The characteristic way in which newcomers respond to a situation is called ________. A) socialization B) internalization C) role orientation D) formalization

Q: Depreciation is an annual assessment reflecting management's judgment about the gradual wasting away of assets as they become older.

Q: Van Maanen and Schein's model can be used by managers to determine ________. A) appropriate terminal values for an organization B) what principles to use in designing organizational hierarchy C) how to structure the socialization experience for newcomers D) appropriate instrumental values for an organization

Q: Depreciation is a method for allocating costs of capital equipment to future time periods when it will continue to be used.

Q: ________ are standards or styles of behavior that are considered acceptable or typical for a group of people. A) Norms B) Instrumental values C) Terminal values D) Beliefs

Q: The economic life of a machine is the period over which it provides the best method for performing its task.

Q: Which of the following is an instrumental value? A) excellence B) profitability C) quality D) being frugal

Q: Expected value is the anticipated selling price of a fixed asset, like corporate real estate.

Q: A(n) ________ value is a desired end state or outcome that people seek to achieve. A) authorial B) instrumental C) coaxial D) terminal

Q: Expected value is the expected outcome multiplied by the probability of its occurrence.

Q: The two kinds of values are terminal and ________. A) authorial B) coaxial C) instrumental D) differential

Q: A risk-free investment is called "sure-fire" because the promised returns are certain.

Q: Which of the following is a terminal value? A) excellence B) taking risks C) working hard D) being honest

Q: Risk in is inherent in any investment.

Q: Organizational ________ is a set of shared values and norms that controls organizational members' interactions with each other and with people outside the organization. A) hierarchy B) culture C) structure D) design

Q: Opportunity cost is the price of obtaining an opportunity.

Q: Informing (by an employee) an outside person or agency, such as a government agency or a newspaper or television reporter, about an organization's (its managers') illegal or immoral behavior is known as whistle-blowing.

Q: Opportunity cost is the benefit forgone resulting from choosing an inferior course of action.

Q: An organization with an accommodative approach to corporate social responsibility agrees that organizational members should behave legally and ethically.

Q: Sunk costs are the cost of repaying certain bonds through sinking funds.

Q: The managers who have an obstructionist approach to corporate social responsibility actively embrace the need to behave in socially responsible ways, go out of their way to learn about the needs of different stakeholder groups, and are willing to use organizational resources to promote the interests not only of stockholders but of the other stakeholders.

Q: Sunk costs are expenses or investments that continue to exist and do not change regardless of the decision.

Q: Organizational structure is a source of organizational culture.

Q: Variable costs include expenses such as rent, property taxes, insurance payments and salaries of top management.

Q: Organic structures are tall, highly centralized, and standardized.

Q: Fixed cost includes variable overhead expenses such as utility bills.

Q: As compared to an organic structure, a mechanistic structure is more likely to give rise to a culture in which innovation and flexibility are desired end states.

Q: Variable cost per unit is constant regardless of the Level of output.

Q: The term "golden parachutes" refers to the right of the workers to receive compensation if they are injured on the job.

Q: Variable cost changes directly in proportion with changes in the Level of output.

Q: In an organization, managers have the strongest property rights.

Q: Fixed cost remains constant regardless of the Level of output.

Q: Notifications of layoffs, severance payments, and long-term employment are examples of property rights given to the workforce.

Q: Fixed cost per unit of output remains constant regardless of the Level of output.

Q: Rites of enhancement mark an individual's entry to, promotion in, and departure from the organization.

Q: Supplement A

Q: The purpose of rites of integration is to build common norms and values.

Q: Which one of the following concepts is not involved when implementing total quality control? A. Workers being given responsibility B. Enforce compliance C. Fail-safe methods D. Automatic inspection E. Level schedule the factory

Q: An office Christmas party is an example of a rite of integration.

Q: Serial socialization tactics require newcomers to figure out and develop their own way of behaving and they are not told what to do.

Q: Disjunctive socialization tactics segregate newcomers from existing organizational members during the learning process.

Q: Sequential socialization tactics provide newcomers with explicit information about the sequence in which they will perform new activities or occupy new roles as they advance in an organization.

Q: Fixed socialization tactics allow newcomers to learn on the job, as members of a team.

Q: An institutionalized role orientation results when individuals are allowed and encouraged to be creative and to experiment with changing norms and values so an organization can better achieve its values.

Q: An individualized role orientation encourages obedience and conformity to rules and norms.

Q: An instrumental value is a desired end state or outcome that people seek to achieve.

Q: "Excellence" is an example of an instrumental value.

Q: "Maintaining high standards" is an example of a terminal value.

Q: Terminal values are reflected in an organization's mission statement.

Q: Instrumental values help the organization achieve its terminal goals.

Q: A terminal value is a desired mode of behavior.

Q: Organizational culture affects an organization's performance and competitive position.

Q: The most important function of organizational structure is to controlthat is, coordinate and motivatepeople within an organization.

Q: Most Fortune 500 companies use a functional structure because it allows them to grow and expand their operations while maintaining control over their activities.

Q: A multidivisional structure is characterized by a corporate headquarters staff which is composed of corporate managers who are responsible for overseeing the activities of the divisional managers heading up the different divisions.

Q: In a multidivisional structure, each division is independent and self-contained.

Q: A product structure is a type of a functional structure.

Q: A functional structure has greater vertical and horizontal differentiation than a divisional structure and employs more complex integrating mechanisms.

Q: As an organization increases the kinds of goods it manufactures or the services it provides, a functional structure becomes more effective at coordinating task activities.

Q: The goal behind the change to a divisional structure is to create smaller, more manageable subunits within an organization.

Q: The structure that organizations most commonly adopt to solve the control problems that result from producing many different kinds of products in many different locations for many different types of customers is the divisional structure.