Chapter 4 The Internal Assessment

62) A firm's strengths that cannot be easily matched or imitated by competitors are called
A) internal audits.
B) distinctive competencies.
C) external audits.
D) interrelated properties.
E) internal properties.
63) Who should perform an internal audit?
A) A private auditing firm
B) The organization's accounting department
C) Representative managers and employees from throughout the firm
D) A small team of top-level managers
E) The chief executive officer
64) ________ exemplifies the complexity of relationships among the functional areas of
business.
A) Government auditing
B) External auditing
C) Financial ratio analysis
D) Environmental scanning
E) Distribution strategy
65) The three all-encompassing internal resource categories used in the Resource-Based View are
physical resources, human resources, and
A) financial resources.
B) shareholder resources.
C) organizational resources.
D) non-renewable resources.
E) technological resources.
66) Organizational resources include all of the following EXCEPT
A) employee training
B) firm structure
C) planning processes
D) information systems
E) copyrights
67) Empirical indicators are resources that are either rare, hard to imitate, or
A) expensive.
B) inexpensive.
C) easily substitutable.
D) not easily substitutable.
E) inefficient.

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68) A pattern of behavior developed by an organization as it learns to cope with its problems of
external adaptation and internal integration, and that has worked well enough to be considered
valid and to be taught to new members as the correct way to perceive, think, and feel is called
A) dysfunctional behavior.
B) groupthink.
C) behavior modification.
D) organizational culture.
E) internal audit effect.
69) Which of the following were NOT mentioned as an example of cultural products?
A) Rites
B) Emotions
C) Rituals
D) Sagas
E) Symbols
70) A standardized set of behaviors used to manage anxieties is called a
A) folktale.
B) rite.
C) metaphor.
D) ritual.
E) value.
71) What is the term for a historical narrative describing the unique accomplishments of a group
and its leaders?
A) Rite
B) Saga
C) Story
D) Myth
E) Folktale
72) Life-directing attitudes that serve as behavioral guidelines are called
A) values.
B) rites.
C) beliefs.
D) metaphors.
E) legends.
73) Any object, act, event, quality, or relation used to convey meaning is known as a
A) myth.
B) rite.
C) value.
D) symbol.
E) metaphor.

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74) Metaphors are

A) several rites connected together.
B) shorthand of words used to capture a vision or to reinforce old or new values.
C) narratives based on true events.
D) fictional stories.
E) any objects, acts, events, qualities, or relations used to convey meaning.
75) What is the essential bridge between the present and the future that increases the likelihood
of achieving desired results?
A) Motivating
B) Planning
C) Controlling
D) Staffing
E) Organizing
76) All of the following are basic duties of management EXCEPT
A) staffing
B) planning
C) consolidating
D) organizing
E) motivating
77) Which of the following does the text call an up-front investment in success?
A) Planning
B) Organizing
C) Motivating
D) Staffing
E) Controlling
78) Which function of management includes areas such as job design, job specification, job
analysis, and unity of command?
A) Planning
B) Organizing
C) Motivating
D) Staffing
E) Controlling
79) Who does a planning horizon of two to five years apply to?
A) Top-level management
B) General management
C) Middle-level management
D) Lower-level management
E) All levels of management

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80) Synergy
A) is the 2 + 2 = 5 effect.
B) can result in powerful competitive advantages.
C) can be developed by an organization through planning.
D) exists when everyone pulls together as a team that knows what it wants to achieve.
E) all of the above
81) Which management function includes breaking tasks into jobs, combining jobs to form
departments, and delegating authority?
A) Motivating
B) Staffing
C) Organizing
D) Controlling
E) Planning
82) Which function of management is concerned with span of control and chain of command?
A) Planning
B) Organizing
C) Controlling
D) Staffing
E) Motivating
83) Which of the following is the process of influencing people to accomplish specific
objectives?
A) Staffing
B) Motivating
C) Planning
D) Controlling
E) Organizing
84) ________, perhaps the most important word in management, is a major component in
motivation.
A) Forecasting
B) Organizational structure
C) Recruiting
D) Management development
E) Communication
85) Staffing involves all of these activities EXCEPT
A) recruiting
B) transferring
C) customer analysis
D) managing union relations
E) training and developing

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86) Which function of management includes all of those activities undertaken to ensure actual
operations conform to planned operations?
A) Planning
B) Organizing
C) Motivating
D) Staffing
E) Controlling
87) The first step in the controlling function of management is to
A) take corrective actions.
B) restrict the number of breaks employees take.
C) evaluate expense reports.
D) establish performance standards.
E) measure individual and organizational performance.
88) All of the following are key questions that can reveal internal strengths and weaknesses in
the management department EXCEPT
A) Is the organization's structure appropriate?
B) Are reward and control mechanisms effective?
C) Are the organization's products positioned well against competing products?
D) Does the firm use strategic-management concepts?
E) Do managers delegate authority well?
89) Opportunity analysis is one of the basic functions of
A) marketing.
B) finance/accounting.
C) computer information systems.
D) production/operations.
E) research and development.
90) ________ can reveal the demographic characteristics of an organization's customers.
A) Customer profiling
B) Test marketing
C) Market development
D) The vision statement
E) Telemarketing
91) All of the following are basic functions of marketing EXCEPT
A) value chain analysis
B) customer analysis
C) product and service planning
D) pricing
E) distribution

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92) Selling includes all of these marketing activities EXCEPT

A) advertising
B) dealer relations
C) customer analysis
D) publicity
E) sales promotion
93) One aspect of ads in a recession is that they
A) take more direct aim at competitors.
B) do not mention competitors.
C) allude to competitors in a positive light.
D) are less combative.
E) none of the above
94) What marketing function includes test marketing?
A) Selling products/services
B) Pricing
C) Customer analysis
D) Product/service planning
E) Distribution
95) The Robinson-Patman Act affects a company's
A) pricing.
B) product/service planning.
C) customer analysis.
D) marketing research.
E) distribution.
96) Distribution includes
A) customer analysis.
B) pricing.
C) warehousing.
D) advertising.
E) test marketing.
97) Which of the following is NOT a key question that can reveal internal strengths and
weaknesses of the marketing department?
A) Does the firm have an effective sales organization?
B) Is our product quality good?
C) Are markets segmented effectively?
D) Are the firm's products and services priced appropriately?
E) Does the firm have good liquidity?

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98) The ________ decision is the allocation and reallocation of capital and resources to projects,
products, assets, and divisions of an organization.
A) investment
B) dividend
C) financing
D) restructuring
E) benchmark
99) Which of the three finance/accounting decisions concerns determining the best capital
structure for the firm and includes examining various methods by which the firm can raise
capital?
A) Investment
B) Dividend
C) Financing
D) Capital budgeting
E) Implementation
100) What category of ratios measures a firm's ability to meet maturing short-term obligations?
A) Profitability
B) Liquidity
C) Leverage
D) Activity
E) Growth
101) What category of ratios includes return on total assets and return on stockholders' equity?
A) Leverage
B) Activity
C) Profitability
D) Growth
E) Liquidity
102) What category of ratios measures how effectively a firm can maintain its economic position
in the growth of the economy and industry?
A) Profitability
B) Liquidity
C) Leverage
D) Activity
E) Growth
103) Which ratio would be considered an activity ratio?
A) Debt-to-equity
B) Net profit margin
C) Average collection period
D) Earnings per share
E) Current ratio

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104) Which ratio is calculated by dividing profits before interest and taxes by total interest
charges?
A) Inventory turnover
B) Fixed assets turnover
C) Total assets turnover
D) Debt-to-equity ratio
E) Times-interest-earned ratio
105) The times-interest-earned ratio would be classified as a(n)
A) activity ratio.
B) leverage ratio.
C) profitability ratio.
D) liquidity ratio.
E) growth ratio.
106) According to Roger Schroeder, which basic function within production/operations deals
with aggregate planning and scheduling?
A) Capacity
B) Inventory
C) Workforce
D) Transportation
E) Quality
107) ________ management deals with inputs, transformations, and outputs that vary across
industries and markets.
A) Marketing
B) Financial
C) Research and development
D) Production/operations
E) Information systems
108) In most industries, the major costs of producing a product or service are incurred within
A) marketing.
B) management.
C) research and development.
D) operations.
E) management information systems.
109) Where is the largest seaport, in terms of ship container traffic processed annually?
A) Hong Kong
B) Shanghai
C) Singapore
D) Los Angeles
E) New York

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110) ________ is a commonly used approach to determine R&D budget allocations.

A) Financing as many project proposals as possible
B) Using the percentage of sales method
C) Budgeting for R&D about what competitors spend
D) Deciding how many successful new products are needed
E) All of the above
111) ________ ties all business functions together and provides the basis for all managerial
decisions.
A) Management
B) Marketing
C) Information
D) Technology
E) Workforce
112) An effective information management system ________ information in such a way that it
answers important operating and strategic questions.
A) collects
B) codes
C) stores
D) synthesizes
E) all of the above
113) ________ become(s) ________ only when evaluated, filtered, condensed, analyzed, and
organized for a specific purpose, problem, individual, or time.
A) Information; data
B) Information; material
C) Data; information
D) Data; competitive advantages
E) Competitive advantages; material
114) The process whereby a firm determines the costs associated with organizational activities
from purchasing raw materials to manufacturing products to marketing those products is called
A) the resource-based approach.
B) value chain analysis.
C) strategic cost analysis.
D) the internal factor evaluation matrix.
E) cost-benefit analysis.
115) The initial step to implementing value chain analysis is
A) attaching a cost to each discrete activity.
B) establishing costs in terms of time.
C) establishing costs in terms of money.
D) converting the cost data into information by looking for competitive cost strengths and
weaknesses.
E) dividing a firm's operations into specific activities or business processes.
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116) Which of the following is the first step in developing an IFE Matrix?
A) Determining the organization's structure
B) Summing the weighted scores for each variable
C) Identifying the organization's strengths and weaknesses
D) Identifying the organization's functions of business
E) Assigning a weight to each factor
117) The IFE Matrix should be ________ in multidivisional firms.
A) constructed for each division
B) all-inclusive
C) constructed only for the major divisions
D) developed before the EFE Matrix
E) revised monthly

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