LESSON 2 MIDTERMS

Question 1

should answer the basic question, “What do we
want to become?” A clear vision provides the foundation for
developing a comprehensive mission statement.

Answer 1

vision statement

Question 2

Many organizations have both a vision and mission statement, but the mission statement should be established first and foremost. T OR F

Answer 2

FALSE (VISION STATEMENT FIRST)

Question 3

The vision statement should be short, preferably one sentence, and as many managers as possible should have input into developing the
statement. T OR F

Answer 3

TRUE

Question 4

who is often called “the father of modern
management”, “the preeminent management thinker of our time.”

Answer 4

Peter Drucker

Question 5

An enduring statement of purpose that distinguishes one organization from other similar enterprises. It is also essential for effectively establishing objectives
and formulating strategies.

Answer 5

mission statement

Question 6

the mission statement is a declaration
of an organization’s?

Answer 6

“reason for being.”

Question 7

Sometimes called a creed statement, a statement of purpose, a
statement of philosophy, a statement of beliefs, a statement of
business principles, or a statement “defining our business,”

Answer 7

Mission Statement

Question 8

is the foundation for priorities, strategies, plans,
and work assignments. It is the starting point for the design of
managerial jobs and, above all, for the design of managerial
structures. Nothing may seem simpler or more obvious than to know
what a company’s business is.

Answer 8

business mission

Question 9

Whereas the mission statement answers the question
“What do we want to become? the vision statement answers the question “What is our business?” T OR F

Answer 9

FALSE

Question 10

It can be argued that profit, not mission or vision, is the primary
corporate motivator. T OR F

Answer 10

FALSE

Question 11

The process of developing a mission statement should create an?

Answer 11

“emotional bond” and “sense of mission”

Question 12

firms using mission statements have a 10 percent higher return on
certain financial measures than those without such statements. T or F

Answer 12

FALSE (30%)

Question 13

The question “What is our business?” can create
controversy. T OR F

Answer 13

TRUE

Question 14

It is always a low-risk decision. A change in mission always leads to
changes in objectives, strategies, organization, and behavior. T OR F

Answer 14

FALSE

Question 15

A mission statement should be?

Answer 15

reconciliatory

Question 16

The general public is especially interested in profitability,
whereas stockholders are more interested in social responsibility. T OR F

Answer 16

FALSE

Question 17

indicates the relative attention that an
organization will devote to meeting the claims of various
stakeholders.

Answer 17

good mission statement

Question 18

Most business statements of mission are expressed at low levels of abstraction. T OR F

Answer 18

FALSE (HIGH LEVEL)

Question 19

An excess of detail could prove counterproductive since concrete specification
could be the base for rallying opposition. T OR F

Answer 19

TRUE

Question 20

Once an aim is cast in concrete, it creates a rigidity in an organization and resists change.T OR F

Answer 20

TRUE

Question 21

In addition to being broad in scope, an effective mission statement
should be too lengthy; recommended length is less than 550
words. T OR F

Answer 21

FALSE (SHORT AND <250)

Question 22

What a business thinks it produces is not of first importance, especially not to the future of the business and to its success. T OR F

Answer 22

TRUE

Question 23

the customer buys and considers value is never a product. It is always
utility, meaning what a product or service does for him or her. Tor F

Answer 23

TRUE

Question 24

is the foundation of a business and keeps it in existence.

Answer 24

The customer