BUSA 2320 Everything for WOB SOLVED Q&A.docx

BUSA 2320Everything for WOB.docx Everything SOLVED QUESTIONS AND ANSWERS Business Essentials, 9e (Ebert/Griffin) Chapter 5 Business Management 1) Business strategy focuses on improving the company's competitive posi ...

BUSA 2320Everything for WOB.docx Everything SOLVED QUESTIONS AND ANSWERS Business Essentials, 9e (Ebert/Griffin) Chapter 5 Business Management 1) Business strategy focuses on improving the company's competitive position. Answer: TRUE Explanation: Strategic management is the process of helping an organization maintain an effective alignment with its environment. One specific type is business, or competitive, strategy. Page Ref: 122 Difficulty: Easy Objective: 5.4 Learning Outcome: Describe the skills and functions of management Skill: Concept 2) Contingency planning seeks to identify how a company will respond to change. Answer: TRUE Explanation: Contingency planning is planning for change: It seeks to identify in advance important aspects of a business or its market that might change. Page Ref: 130 Difficulty: Easy Objective: 5.5 Learning Outcome: Describe the skills and functions of management Skill: Concept 3) When a sales manager compares actual sales to the quarterly sales quota, she is performing the controlling function of management. Answer: TRUE Explanation: Controlling is the process of monitoring a firm's performance to make sure that it is meeting its goals. Page Ref: 116 Difficulty: Moderate Objective: 5.1 Learning Outcome: Describe the skills and functions of management Skill: Concept 4) The first step in the control process is to compare actual performance to standards. Answer: FALSE Explanation: The first step in the control process occurs when managers establish standards. Page Ref: 116 Difficulty: Moderate Objective: 5.1 Learning Outcome: Describe the skills and functions of management 5) Operations managers are responsible for production, inventory, and quality control. Answer: TRUE Explanation: In general, operations refers to the systems by which a firm produces goods and services. Page Ref: 119 Difficulty: Moderate Objective: 5.2 Learning Outcome: Describe the skills and functions of management Skill: Concept 6) Information managers are responsible for getting products from producers to consumers. Answer: FALSE Explanation: Information managers design and implement systems to gather, organize, and distribute information. Page Ref: 119 Difficulty: Moderate Objective: 5.2 Learning Outcome: Describe the skills and functions of management Skill: Concept 7) The last step in the decision-making process is the selection of the best alternative. Answer: FALSE Explanation: Implementing the chosen alternative is the last step in the process. Page Ref: 120 Difficulty: Moderate Objective: 5.3 Learning Outcome: Describe the skills and functions of management Skill: Concept 8) Changes in technology will result in a decrease in the amount of information that managers will use to make decisions. Answer: FALSE Explanation: In today's world, the amount of information has reached staggering proportions. Page Ref: 122 Difficulty: Moderate Objective: 5.3 Learning Outcome: Describe the skills and functions of management Skill: Concept 9) The starting point in effective management is setting goals. Answer: TRUE Explanation: In addition, managers must consider what actions will and will not achieve company goals. Page Ref: 122 Difficulty: Moderate Objective: 5.4 Learning Outcome: Describe the skills and functions of management Skill: Concept 10) Goal setting helps managers assess performance. Answer: TRUE Explanation: For example, if a unit sets a goal of increasing sales by 10 percent in a given year, managers in that unit who attain or exceed the goal can be rewarded. Page Ref: 122 Difficulty: Moderate Objective: 5.4 Learning Outcome: Explain how economic performance is monitored Skill: Concept 11) Long-term goals are derived directly from a firm's mission statement. Answer: TRUE Explanation: Long-term goals relate to extended periods of time, typically five years or more; long-term goals are strategic goals that are directly related to the firm's mission statement. Page Ref: 124 Difficulty: Moderate Objective: 5.4 Skill: Concept 12) Doubling the number of merchants participating in a sales program over the next 10 years is an example of a long-term goal. Answer: TRUE Explanation: Long-term goals relate to extended periods of time, typically five years or more. Page Ref: 124 Difficulty: Moderate Objective: 5.4 Skill: Application