Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Management
Q:
Fixed costs for a product are $50,000. The product itself sells for $5.00 and it costs $3.00 to make each product. What is the break-even point for the product?
A) 100,000
B) 10,000
C) 50,000
D) 25,000
Q:
Experts assert that stock options encourage executives to take dangerous risks and are to blame for many corporate scandals.
Q:
Cash, stock, stock options, stock appreciation rights, and phantom stock are known as "golden handcuffs" because they are long-term incentives for executives.
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:
Annual bonus plans are long-term incentives, and stock options are short-term incentives.
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:
Straight commission plans are attractive to high-performing salespeople.
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:
Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.
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:
According to the FLSA, merit pay can only be given to exempt, nonmanagement employees at a company.
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:
All merit raises become part of an employee's base salary.
Q:
Employers are shifting away from piecework in many industries due to the incentive plan's poor reputation.
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:
With a standard hour plan, employers do not need to recalculate piece rates when changes are made to the hourly pay rate.
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 standard hour plan is like the piece rate plan except instead of getting a rate per piece, the employee gets a premium equal to the percent by which his or her performance exceeds the standard.
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:
The complicated nature of piecework makes it an unpopular individual incentive plan among employers.
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:
If an employee earns an incentive in the form of a prize or cash award, the value of the award is not included when calculating the employee's overtime pay.
Q:
Behavior modification principles can be useful to managers who seek to change employee behavior through rewards or punishments linked to performance.
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:
Behavior modification is based on the idea that people will repeat behavior for which they are punished.
Q:
According to Vroom's theory, if expectancy, instrumentality, or valence is equal to zero, there will be no employee motivation.
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:
Vroom's expectancy theory observes that people will not pursue rewards that they find unattractive or where their chances of success are very low.
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:
The work of Edward Deci suggests that managers should primarily rely on extrinsic rewards to motivate employees.
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:
According to Herzberg's motivation theory, good working conditions will prevent dissatisfaction but will not lead to feelings of satisfaction.
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:
Herzberg's Hygiene-Motivator theory is based on a needs theory.
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:
In Herzberg's Hygiene-Motivator theory, working conditions are motivator factors, and challenging assignments are hygiene factors.
Q:
According to Herzberg's theory, a manager would be able to motivate an employee with challenging tasks.
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:
Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.
Q:
Robert Katz popularized the use of financial incentives for workers whose production exceeds some predetermined standard.
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:
Hanover Publications has a large sales staff. Over the last two years, the HR department at Hanover has been reviewing the firm's sales pay plans more frequently and factoring in more growth-oriented metrics. Which of the following most likely explains the reason for these changes at Hanover?
A) increased globalization
B) new federal legislation
C) recent economic recession
D) employee stock option plans
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:
What are the five main elements of a competency-based pay plan?
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:
What are the key differences between competency-based pay and traditional job-based pay? Which method would you prefer if you were an employee? Why?
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:
What are the primary factors involved in determining compensation for a firm's CEO? What reasons best explain compensation reductions for top executives in recent years?
Q:
In a brief essay, compare and contrast the use of pay ranges with broadbanding.
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:
The point method of job evaluation is the most frequently used job evaluation method, but it is also associated with lawsuits involving comparable worth. In a brief essay, explain the point method of job evaluation and why it is problematic for firms in regards to comparable worth.
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, explain how carrying costs and ordering costs change with order size in EOQ (economic order quantity) analysis.
Q:
In a brief essay, discuss the purpose of job evaluations. Discuss the similarities and differences between job evaluations conducted for managerial positions and lower level positions at a firm.
Q:
In a short essay, explain what the value of P in queuing theory provides for a manager.
Q:
Explain the equity theory of motivation. What are the four forms of equity?
Q:
In a short essay, explain how managers can use current value for making organizational decisions.
Q:
What are your compensation options if you are an employer who needs to transfer an employee from a low cost-of-living area to a high cost-of-living area?
Q:
In a short essay, explain how the break-even point (BE) changes with variables TFC (total fixed costs), P (unit price), and VC (variable cost per unit).
Q:
What are the advantages for employers of claiming that someone doing work for them is an independent contractor rather than an employee?
Q:
A payoff matrix features strategies S1, S2, S3, and S4 and competitive strategies CA1, CA2, and CA3. In a short essay, explain how maximum regret can be calculated for an S1 strategy.
Q:
What are the two primary ways to make direct financial payments to employees? How does compensation for managers or professionals differ from compensation for clerical or production workers at a firm?
Q:
Competency-based pay systems offer employers more flexibility but are less efficient than traditional job evaluation methods.
Q:
In a short essay, explain the type of strategy that a pessimistic manager would take for his company.
Q:
Due to federal legislation, greater opportunities for higher learning, and more women in the workforce, women in the U.S. earn approximately 90% as much as men.
Q:
In a short essay, explain the type of strategy that an optimistic manager would take for her company.
Q:
The purchase price of a product has no influence on calculating EOQ.
Q:
Large corporations are more likely than small businesses to use a market-based approach to setting pay rates because it is easier for a large firm to conduct formal job evaluations.
Q:
In the economic order quantity (EOQ) model, decreasing the order size will increase carrying costs.
Q:
A key issue in comparable worth is whether women should be paid equal wages for jobs that are truly equal to men's or just comparable to men's jobs.
Q:
In the broadest sense, comparable worth may mean comparing jobs that are very dissimilar such as nursing to fire fighting.
Q:
In the economic order quantity (EOQ) model, increasing the order size will decrease ordering costs.
Q:
The primary advantage of broad banding is that it provides greater flexibility into employee assignments.
Q:
In the economic order quantity (EOQ) model, the optimum order quantity is obtained by identifying where the total cost curve and the ordering costs curve intersect.