Test #3

Question 1

A process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment

Answer 1

Management

Question 2

Individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing, and controlling the organization’s activities to reach its objectives

Answer 2

Managers

Question 3

The process of determining the organization’s objectives and deciding how to accomplish them; the first function of management

Answer 3

Planning

Question 4

The statement of an organization’s fundamental purpose and basic philosophy

Answer 4

Mission statement

Question 5

Expressed in general terms and do not contain specific, quantifiable metrics of where the firm is now or where is going; aspirational by nature

Answer 5

Goals

Question 6

The ends of results desired by an organization, derive from the organization’s missions and goals

Answer 6

Objectives

Question 7

Plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission

Answer 7

Strategic Plan

Question 8

Short-range plans designed to implement the activities and objectives specified in the strategic plan

Answer 8

Tactical plan

Question 9

Very-short-term plan that specify what actions individuals, work groups, or departments need to accomplish in order to achieve the tactical pan and ultimately the strategic plan

Answer 9

Operational plan

Question 10

An element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, computer virus, or airplane crash

Answer 10

Contingency planning

Question 11

The structuring of resources and activities to accomplish objectives in an efficient and effective manner

Answer 11

Organizing

Question 12

Motivating and leading employees to achieve organizational objectives

Answer 12

Directing

Question 13

The process of evaluating and correcting activities to keep the organization on course

Answer 13

Controlling

Question 14

Top of the pyramid:
President, CEO, Executive Vice Presidents; Do mostly planning

Answer 14

High-Level Management

Question 15

Middle of the pyramid:
Plant managers, Division managers, department managers; Do mostly organizing

Answer 15

Middle Management

Question 16

Bottom of the pyramid:
Foremen, Supervisors, Office managers; Do mostly controlling

Answer 16

Front-Line Management

Question 17

The specialized knowledge and training needed to perform jobs that are related to particular areas of management

Answer 17

Technical expertise

Question 18

The ability to think in abstract terms and to see how parts fit together to form the whole

Answer 18

Conceptual skills

Question 19

The ability to identify relevant issues, recognize their importance, understand the relationships between them, and perceive the underlying causes of a situation

Answer 19

Analytical skills

Question 20

The ability to deal with people, both inside and outside the organization

Answer 20

Human relations skills

Question 21

When employees are provided with the ability to take on responsibilities and make decisions about their jobs

Answer 21

Employee empowerment

Question 22

1. Recognize and define the decision situation
2. Develop options
3. Analyze options
4. Select the best option
5. Implement the decision
6. Monitor the consequences

Answer 22

6 steps of the decision-making process

Question 23

A firm’s shared values, beliefs, traditions, principles, rules, and role models for behavior

Answer 23

Organizational culture

Question 24

The arrangement or relationship of positions within an organization

Answer 24

Structure

Question 25

Visual display of the organizational structure, lines of authority, staff relationships, permanent committee arrangements, and lines of communication

Answer 25

Organizational chart

Question 26

The grouping of jobs into working units usually called departments, units, or divisions

Answer 26

Departmentalization

Question 27

The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources

Answer 27

Functional departmentalization

Question 28

The organization of jobs in relation to the products of the firm

Answer 28

Product departmentalization

Question 29

The grouping of jobs according to geographic location, such as state, region, country, or continent

Answer 29

Geographical departmentalization

Question 30

The arrangement of jobs around the needs of various types of customers

Answer 30

Customer departmentalization

Question 31

Giving employees not only tasks but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks

Answer 31

Delegation of authority

Question 32

A structure in which authority is concentrated at the top and very little decision-making authority is delegated to lower levels of authority

Answer 32

Centralized organization

Question 33

An organization in which decision-making authority is delegated as far down the chain of command as possible

Answer 33

Decentralized organization

Question 34

The number of subordinates who report to a particular manager

Answer 34

Span of management

Question 35

A permanent, formal group that performs a specific task

Answer 35

Committee

Question 36

A temporary group of employees responsible for bringing about a particular change

Answer 36

Task force

Question 37

Groups similar to task forces that normally run their operation and have total control of a specific work project

Answer 37

Project teams

Question 38

Communication that flows from lower to higher levels of the organization

Answer 38

Upward communication

Question 39

Traditional flow of communication from upper organizational levels to lower organizational levels

Answer 39

Downward communication

Question 40

The recording, measurement, and interpretation of financial information

Answer 40

Accounting

Question 41

An individual who has been state certified to provide accounting services ranging from the preparation of financial records and the filing of tax returns to complex audits of corporate financial records

Answer 41

Certified Public Accountant

Question 42

Board of Directors, owners, managers, accountants, and business analysists

Answer 42

Internal users

Question 43

Government, creditors, stockholders, employees,, customers

Answer 43

External users

Question 44

The internal use of accounting statements by managers in planning and directing the organization's activities

Answer 44

Managerial accounting

Question 45

Summary of a firm's financial information, products, and growth plans for owners and potential investors

Answer 45

Annual report

Question 46

Assets = Liabilities + Owners' Equity

Answer 46

Accounting Equation

Question 47

A firm's economic resources, or items of value that it owns, such as cash, inventory, land, equipment, buildings, and other tangible and intangible things

Answer 47

Assets

Question 48

Debts that a firm owes to others

Answer 48

Liabilities

Question 49

Equal assets minus liabilities and reflects historical values

Answer 49

Owners' Equity

Question 50

1. Examining source documents 2. Recording transactions in an accounting journal 3. Posting recorded transactions 4. Preparing financial statements

Answer 50

Accounting cycle

Question 51

A financial report that shows an organization's profitability over a period of time - month, quarter, or year

Answer 51

Income statement

Question 52

The total amount of money received from the sale of goods or services, as well as from related business activities

Answer 52

Revenue

Question 53

The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies

Answer 53

Cost of Goods Sold

Question 54

The total profit (or loss) after all expenses, including taxes, have been deducted from revenue; also called net earnings

Answer 54

Net income

Question 55

A "snapshot" of an organization's financial position at a given moment

Answer 55

Balance sheet

Question 56

Assets that are used or converted into cash within the course of a calendar year

Answer 56

Current assets

Question 57

A firm's financial obligations to short-term creditors, which must be repaid within one year

Answer 57

Current liabilities

Question 58

Explains how the company's cash changed from the beginning of the accounting period to the end

Answer 58

Statement of Cash Flows

Question 59

Calculations that measure an organization's financial health

Answer 59

Ratio Analyses