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Which of the following describes the activity of a firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves?


A) functional sharing
B) outsourcing
C) benchmarking
D) virtual distribution

E) All of the above
F) A) and B)

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Weber promoted the idea of the pyramid-shaped organization structure for large businesses.

A) True
B) False

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Weber was a strong proponent of bureaucracy.

A) True
B) False

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Cross-functional teams consist of employees from different departments who work together on a long-term basis.

A) True
B) False

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Which of the following is an advantage of a line organization in a large business?


A) It does not require specialists to advise people along the line.
B) Responsibility and authority are clearly defined.
C) Each worker has several supervisors.
D) It is very flexible.

E) A) and B)
F) A) and D)

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In firms with centralized authority, each business unit is treated as if it is a completely separate and independent organization.

A) True
B) False

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Which of the following positions would be classified as a staff position?


A) an assembly-line worker for a major auto manufacturer
B) the chief executive officer of a small corporation
C) a sales manager for a chain of clothing stores
D) an attorney in the legal department of a manufacturing corporation

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

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Which of the following are common responses of employees when faced with change?


A) "That's the way we've always done things."
B) "Perhaps I'll be able to get a promotion now."
C) "I'm excited to learn something new."
D) "This should be easy to accept."

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

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A matrix organization produces an environment that discourages cooperation and teamwork.

A) True
B) False

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Which of the following was created as a solution to the temporary nature of the matrix structure?


A) line organizations
B) cross-functional self-managed teams
C) line-and-staff organizations
D) network organizations

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

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Small businesses often use a line organization model.

A) True
B) False

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Correctly structuring a business organization allows managers to avoid delegating responsibility and authority to employees.

A) True
B) False

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Bright Electronics has found it needs to reorganize, including a significant trim of its middle management. This action will likely result in


A) acquiring additional firms.
B) flattening the organization and empowering employees, allowing them to get closer to the customer.
C) increasing the size of its traditional departments to handle 24/7 operations.
D) centralizing its decision making to better control its total quality management program.

E) A) and B)
F) All of the above

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Javier is a self-employed patent attorney and it seems like he is always working! Large corporations hire him on an as-needed basis to review prospective ideas and help with securing patents for a variety of inventions including surgical instruments, medicines, and high-tech gadgets. Once he secures a contract, Javier knows approximately how many weeks or months he will work. Javier works for virtual corporations.

A) True
B) False

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Daniela thinks all workers should receive the same pay regardless of their position within a company. Daniela views on wages illustrate Fayol's principle of equity.

A) True
B) False

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Organizations with positive images for performing exceptional service to customers are usually friendly places to work, as well.

A) True
B) False

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Bureaucratic organizations are not very responsive to customers.

A) True
B) False

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The success of the firm often depends on assigning the right tasks to the right person.

A) True
B) False

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The organizational structure of the U.S. Army's 1st Infantry Division provides for direct two-way lines of responsibility, authority, and communication running from the top to the bottom. Additionally, each person in the division reports to only one superior. The 1st Infantry Division is clearly an example of a(n)


A) matrix organization.
B) functional organization.
C) line organization.
D) service organization.

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

Correct Answer

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Companies benefit today from interfirm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and new processes from exemplary firms sometimes outside their own industries. This is called


A) competency capturing.
B) technology swapping.
C) benchmarking.
D) broadening the knowledge base.

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

Correct Answer

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