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Q:
A manager does a break-even analysis and finds that his value for BE, the break-even point, has decreased over time. Which of the following could be responsible for this event?
A) TFC has increased.
B) P has increased.
C) VC has decreased.
D) P has decreased.
Q:
For break-even analysis, which of the following is a fixed cost for a doughnut shop?
A) costs for purchasing flour and sugar
B) energy costs for ovens and heating
C) interest payments on loans
D) advertising costs
Q:
Decision trees show the profit outcomes for the plans for two doughnut stores in two different locations in a strong and a weak economy for the future. If the investor interested in building a store is pessimistic, in which location should she build? A) She should build Store 2, because it has a greater minimum profit.
B) She should build Store 2, because it has a greater maximum profit.
C) She should build Store 1, because it has a greater maximum profit.
D) She should build Store 1, because it has a greater minimum profit.
Q:
Decision trees show the profit outcomes for the plans for two doughnut stores in two different locations in a strong and a weak economy for the future. If the investor interested in building a store is optimistic, in which location should she build? A) She should build Store 1, because it has a lower minimum profit.
B) She should build Store 2, because it has a greater maximum profit.
C) She should build Store 1, because it has a greater maximum profit.
D) She should build Store 2, because it has a greater minimum profit.
Q:
Decision trees show the profit outcomes for the plans for two doughnut stores in a strong and a weak economy for the future. Which store is expected to have the greater expected profit? A) Store 1 has a $27,900 greater profit.
B) Store 1 has a $1200 greater profit.
C) Store 2 has a $26,700 greater profit.
D) Store 2 has a $1200 greater profit.
Q:
The decision tree shows the profit outcomes for a toy store in a strong and a weak economy for next year. What is the expected value of profit for the store for the year? A) $10,500
B) $20,900
C) $29,000
D) $10,400
Q:
The decision tree shows the profit outcomes for a toy store in a strong and a weak economy for next year. If the economy turns out to be weak, how much profit is the store likely to lose out? A) $14,000
B) $16,000
C) $30,000
D) $15,000
Q:
The decision tree shows the profit outcomes for a toy store in a strong and a weak economy for next year. What is the expected value of the store's profit in a strong economy? A) $10,500
B) $15,000
C) $16,000
D) $30,000
Q:
The decision tree shows the profit outcomes for a coffee shop in a strong and a weak economy for next year. Suppose a third outcome is considered in which a moderate economy is 33 percent likely to occur. With this added outcome, how does the probability of a weak economy change? A) A weak economy is now 73 percent likely.
B) A weak economy is also 33 percent likely.
C) A weak economy is now 40 percent likely.
D) A weak economy is now 0 percent likely.
Q:
The decision tree shows the profit outcomes for a coffee shop in a strong and a weak economy for next year. What is the probability that the economy will be weak in the coming year? A) 0.73
B) 27 percent
C) 50 percent
D) 7.3
Q:
In a decision tree, which of the following is true?
A) The probabilities of all of the outcomes must be equal.
B) The sum of the probabilities of all of the outcomes must equal 1.0.
C) No outcome can have a probability that is less to 1.0.
D) The sum of the probabilities of all of the outcomes must be greater than 1.0.
Q:
In a decision tree, each possible outcome ________.
A) gets assigned a probability value between 0 and 1.0
B) gets assigned a probability value of 50 percent
C) gets assigned a probability value between 0 and 50 percent
D) gets assigned a probability value between 0.5 and 1.0
Q:
This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake. If Al chooses S3, what kind of strategy is he using? CA1
CA2
CA3 S1
3
15
9 S2
12
10
12 S3
8
9
17 S4
13
16
3 A) minimax
B) maximin
C) maximax
D) minimin
Q:
This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake. If Al wants to minimize his maximum regret, which strategy should he choose? CA1
CA2
CA3 S1
3
15
9 S2
12
10
12 S3
8
9
17 S4
13
16
3 A) S4
B) S3
C) S2
D) S1
Q:
Which of the following would a manager who wants to minimize her maximum regret choose?
A) the smallest maximum regret value
B) the smallest minimum regret value
C) the smallest difference maximum regret value and the minimum regret value
D) the greatest difference maximum regret value and the minimum regret value
Q:
This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. What is the maximum regret value for S2? CA1
CA2
CA3 S1
13
14
7 S2
7
17
12 S3
31
29
4 S4
20
12
21 A) 24
B) 15
C) 5
D) 0
Q:
This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. What is the maximum regret value for S4? CA1
CA2
CA3 S1
13
14
7 S2
7
17
12 S3
31
29
4 S4
20
12
21 A) 13
B) 7
C) 2
D) 17
Q:
This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. What is the maximum regret value for S1? CA1
CA2
CA3 S1
13
14
7 S2
7
17
12 S3
31
29
4 S4
20
12
21 A) 18
B) 15
C) 14
D) 12
Q:
This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. If Sam chooses S1, how is he feeling about the business climate? CA1
CA2
CA3 S1
13
14
7 S2
7
17
12 S3
31
29
4 S4
20
12
21 A) Sam is feeling pessimistic because he has chosen a maximax strategy.
B) Sam is feeling optimistic because he has chosen a maximin strategy.
C) Sam is feeling neither pessimistic nor optimistic because he has chosen neither a maximin nor a maximax strategy.
D) Sam is feeling both pessimistic and optimistic because he has chosen both a maximin and a maximax strategy.
Q:
Which of the following best defines regret in a payoff matrix?
A) Regret refers to the difference of the sum of the values in a chosen strategy and the sum of the best strategy.
B) Regret refers to the difference of the sum of the values in a chosen strategy and the sum of the worst strategy.
C) Regret refers to the sum total of the sum of the values in a chosen strategy and the sum of the best strategy.
D) Regret refers to the extra amount of money that could have been made had the person chosen a different strategy.
Q:
This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. If Sam chooses S3, how is he feeling about the business climate? CA1
CA2
CA3 S1
13
14
7 S2
7
17
12 S3
31
29
4 S4
20
12
21 A) Sam is feeling pessimistic because he has chosen a maximax strategy.
B) Sam is feeling pessimistic because he has chosen a minimax strategy.
C) Sam is feeling optimistic because he has chosen a maximax strategy.
D) Sam is feeling optimistic because he has chosen a maximin strategy.
Q:
This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. If Sam chooses S4, how is he feeling about the business climate? CA1
CA2
CA3 S1
13
14
7 S2
7
17
12 S3
31
29
4 S4
20
12
21 A) Sam is feeling optimistic because he has chosen a maximax strategy.
B) Sam is feeling pessimistic because he has chosen a maximin strategy.
C) Sam is feeling optimistic because he has chosen a maximin strategy.
D) Sam is feeling pessimistic because he has chosen a maximax strategy.
Q:
This payoff matrix gives potential dollar gain values in millions for strategies S1, S2, S3, and S4 for the Bent Fork National Bank and competitive strategies CA1, CA2, and CA3 for the Straight Spoon Bank. If Bent Fork is pessimistic, which strategy will it choose? CA1
CA2
CA3 S1
3
24
17 S2
15
16
14 S3
8
19
10 S4
20
2
11 A) S1
B) S2
C) S3
D) S4
Q:
This payoff matrix gives potential dollar gain values in millions for strategies S1, S2, S3, and S4 for the Bent Fork National Bank and competitive strategies CA1, CA2, and CA3 for the Straight Spoon Bank. If Bent Fork is optimistic, which strategy will it choose? CA1
CA2
CA3 S1
3
24
17 S2
15
16
14 S3
8
19
10 S4
20
2
11 A) S1
B) S2
C) S3
D) S4
Q:
Which psychological orientation would be typical of a manager who is pessimistic about her business environment?
A) a maximin orientation
B) a minimin orientation
C) a maximax orientation
D) a minimax orientation
Q:
A manager is worried that if he chooses the wrong investment strategy, his company could lose out on a great deal of money. Which strategy should he follow?
A) a maximax orientation
B) a minimin orientation
C) a maximin orientation
D) a minimax orientation
Q:
Which psychological orientation would be typical of a manager who is optimistic about her business environment?
A) a maximin orientation
B) a minimin orientation
C) a maximax orientation
D) a minimax orientation
Q:
Which role does uncertainty typically play in how managers function?
A) Uncertainty limits the amount of information that is available.
B) Uncertainty increases the amount of information that is available.
C) Uncertainty improves the quality of information that is available.
D) Uncertainty enhances the information that is available.
Q:
In a short essay, discuss the impact that the Industrial Revolution had on management
Q:
A contingency variable that can affect managing style is organization size.
Q:
The contingency approach to management states that there is a single best way to manage all organizations.
Q:
The idea of an organization as a system was borrowed from psychological concepts.
Q:
Contemporary approaches to management see the organization as a closed system in which all inputs and outputs stay within the system.
Q:
Deming's total quality management system largely ignored the needs of customers.
Q:
W. Edwards Deming's ideas about quality and management were first embraced by Japanese companies.
Q:
The "Whiz Kids" used statistical methods to improve decision making at the Ford Motor Company in the mid-1940s.
Q:
The quantitative approach to management evolved out of mathematical methods of solving military problems.
Q:
The Hawthorne studies suggested that groups could influence the productivity of an individual.
Q:
Abraham Maslow's hierarchy of needs theory suggested once a need was satisfied, it stopped motivating behavior.
Q:
The Hawthorne studies showed that the brighter the lights in the room, the more productive were workers who worked in the room.
Q:
Organizational behavior studies were based purely on theoretical ideals rather than actual observation.
Q:
Robert Owen was greatly concerned with how workers were treated in factories of the Industrial Revolution.
Q:
The behavioral approach to management began in the 1960s with organizational behavior (OB).
Q:
The behavioral approach to management focuses on motivating workers to work productively.
Q:
The idea of employees being paid a fair wage for their services did not emerge until the 1960s.
Q:
Fayol thought that allowing employees to originate their own plans would increase motivation.
Q:
A highly centralized organization is one in which subordinates are given a lot of opportunity to make decisions.
Q:
Unity of command means that all employees should answer to only one superior.
Q:
Fayol feels that managers should be given authority over workers, but not the ability to give orders.
Q:
Both Henri Fayol and Adam Smith saw division of work as an important principle of management.
Q:
Henri Fayol and Max Weber developed the idea of the five basic management functions.
Q:
Henry Gantt's contribution to management theory was to develop efficient ways to schedule.
Q:
Frederick W. Taylor published his book on the Principles of Scientific Management to illustrate the importance of bureaucracies in managing people.
Q:
Frank and Lillian Gilbreth's best-known contribution to scientific management concerned selecting the best worker for a particular job.
Q:
Taylor was the originator of the concept of scientific management.
Q:
The primary issue that motivated Taylor to create a more scientific approach to management was worker satisfaction.
Q:
Frank and Lillian Gilbreth got their ideas for management from the book Cheaper by the Dozen.
Q:
"Employee motivation" is the phrase most associated with scientific management.
Q:
Classical approaches to management include the work of Taylor, Fayol, and Weber.
Q:
Job specialization continues to be a popular way to increase productivity today.
Q:
Adam Smith's Wealth of Nations was published 100 years before the Declaration of Independence of the United States in 1776.
Q:
The Industrial Revolution began in the seventeenth century.
Q:
Factories in the Industrial Revolution needed to forecast demand to make sure that workers were paid fairly.
Q:
The division of labor is also referred to by the term job specification.
Q:
Adam Smith argued that division of labor increased productivity.
Q:
The Industrial Revolution marked the birth of management.
Q:
The Egyptian pyramids are an example of a project that was completed without the aid of managers.
Q:
People value history because it can help put events that are taking place today into perspective.
Q:
Which technology development is likely to have the greatest impact on the organization of the future?
A) mainframe computers
B) cell phones
C) wired networks
D) wireless networks
Q:
Which of the following is NOT a contingency variable?
A) routineness of tasks performed
B) organizational size
C) environmental uncertainty
D) organizational history
Q:
Which of the following is a contingency variable?
A) how successful an organization is
B) how large an organization is
C) how well known an organization is
D) how well managed an organization is
Q:
A contingency variable is a factor that can ________.
A) make an organization successful
B) destroy an organization
C) influence choice of managerial style
D) improve organizational morale
Q:
Contingency approaches to management contend that ________.
A) situations determine managerial approach
B) all organizations should be managed in the same way
C) managers determine managerial approach
D) no two organizations should be managed the same way
Q:
The only item that serves as both an input and an output in an open system organization is ________.
A) capital
B) information
C) technology
D) products
Q:
Material inputs in an open system organization include ________.
A) capital
B) human resources
C) raw materials
D) information
Q:
Material outputs in an open system organization include ________.
A) services
B) products
C) raw materials
D) information
Q:
The idea of an organization being an open system was borrowed from this discipline.
A) mathematics
B) the physical sciences
C) game theory
D) psychology
Q:
In an open system, a manager is responsible for managing ________.
A) just the internal company itself and not the external environment
B) just the external environment
C) both the internal and the external environment
D) the inputs but not the outputs
Q:
A typical organization can be characterized as ________.
A) a one-way system
B) a closed system
C) an open system
D) a virtual system
Q:
A system is defined as a set of interrelated and interdependent parts that function ________.
A) as separate entities
B) together as a unified whole
C) in competition with one another
D) without any link to the outside world