1) The belief that businesses have the financial, technical, and managerial resources to support needed public and charitable projects is known as which argument?
a. ethical obligations
b. possession of resources
c. public image
d. public expectations

2) There is ________ to say that a company's socially responsible actions signifi cantly
hurt its long-term economic performance.
a. a lot of evidence
b. not any evidence
c. little evidence
d. mounting evidence

3) With the stakeholder approach of dealing with environmental issues, the organization
chooses to respond to ________.
a. multiple demands made by social activists
b. multiple demands made by stakeholders
c. the demands made by governmental stakeholders
d. the demands made by the strongest stakeholders

4) Values shared among the organizational members can serve as ________.
a. a reason to follow federal and state environmental laws
b. a guidepost for managerial decisions to invest in new technology
c. a guidepost for managerial decisions and actions
d. a way to shape managerial decisions to invest in economic conditions

5) Ethics training sessions can provide what benefi t?
a. They evaluate decisions and management practices in terms of the code of ethics.
b. They create ego strength in employees.
c. They strengthen the employees' locus of control.
d. They clarify acceptable and unacceptable practices.

6) Many companies have ________ to encourage whistle blowers to come forward.
a. paid more attention to employees' behavior
b. shared their values
c. set up toll-free ethics hotlines
d. posted the Sarbanes-Oxley Act

An Academic Question (Scenario)
As a university student, you wonder about some of the practices in the university and just
how some of these practices should be evaluated in reference to social issues.

7) If your university were paying minimum wage when necessary and applying the minimum
standard to laws, such as affi rmative action, it would be said to have fulfi lled its
________.
a. social expectation
b. social responsiveness
c. social obligation
d. social responsibility

8) If your university provides job-share programs, builds a day-care facility, and only uses
recycled paper, it could be said to be ________.
a. socially responsive
b. socially image conscious
c. fulfi lling its social obligation
d. socially aware

Summing Up Social Responsibility (Scenario)

Max Proffit, director of research and development for National Products Company, has
learned that a new material has been developed in his department that appears as though
it will work in several products already being manufactured by National Products Company.
He has discussed the potential savings with his two assistants, Susie Merriweather and
Moe Gaines, and Rush Onward, vice president of product development. Susie has stated
her opposition to the use of the new product because its durability and fl ame retardance
have not completed testing and have not been certifi ed by the company's third-party
testing laboratory. Moe argues that the initial tests that their R&D department completed
indicate minimal problems with both durability and fl ame retardance. Rush states that in
several meetings he has recently attended, the company president had repeatedly emphasized
the need to increase earnings per share. Rush tells Max that a decision has to be
made within the week about the new products use by National Products Company.

9) Susie's opposition to the use of the new product is an indication that she probably
________.
a. has a weak ego strength
b. is using the classical view of social responsibility
c. has an external locus of control
d. has an internal locus of control

10) Which of the following is not a valid assumption about rationality?
a. The problem is clear and unambiguous.
b. Preferences are clear.
c. A single, well-defi ned goal is to be achieved.
d. Preferences are constantly changing.

11) An increased commitment to a previous decision despite evidence that it may have
been wrong is referred to as ________.
a. escalation of commitment
b. dimensional commitment
c. expansion of commitment
d. economies of commitment

12) Intuitive decision making is ________.
a. not utilized in organizations
b. important in supporting escalation of commitment
c. a conscious process based on accumulated judgment
d. making decisions based on experience, feelings, and accumulated judgment

13) A procedure ________.
a. is a series of interrelated sequential steps to respond to a structured problem
b. is an explicit statement detailing exactly how to deal with a decision
c. allows a manager to use broad decision-making authority
d. is a set of guidelines that channel a manager's thinking in dealing with a problem

Decisions, Decisions (Scenario)
Sondra needed help. Her insurance company's rapid growth was necessitating making
some changes, but what changes? Should they add to the existing information system or
should they buy a new system? She was given the responsibility of analyzing the company's
present information system and deciding what the company should do that would
give them plenty of room. She was confused and needed help in making the correct decision.

14) According to the decision-making process, the second step Sondra should take is to
________.
a. evaluate her decision's effectiveness
b. allocate weights to the criteria
c. identify decision criteria
d. analyze alternative solutions

Is the Picture Clear? (Scenario)
Sharon was the regional manager of a large cable television company. She faced many
problems and decisions daily, such as how to price each market, who to hire, what kind
of technology she should purchase, and how she should handle the increasing customer
complaints. She needed some help sorting these issues out.

15) Sometimes Sharon instructs her local managers to follow ________ when confronted
with problem situations. These establish parameters for the manager making the decision
rather than specifi cally stating what should or should not be done.
a. policies
b. orders
c. procedures
d. rules

16) Formal planning involves which of the following aspects?
a. distributing the plan to all managerial employees
b. writing objectives
c. developing general objectives
d. planning for up to one year

17) What is the fi rst step in a typical MBO program?
a. Unit managers collaboratively set specifi c objectives for their units with their managers.
b. The organization's overall objectives and strategies are formulated.
c. Major objectives are allocated among divisional and departmental units.
d. Action plans are specifi ed and agreed upon by managers and employees.

18) Formal plans serve as a roadmap although the destination may be changing constantly
due to ________.
a. management changes
b. employment makeup
c. political changes
d. dynamic market conditions

Planning Factors (Scenario)
As vice president of a local manufacturer, you are interested in developing a new organizational
plan. However, you are not sure who you should assign to the varying planning
tasks. At the same time, several other issues that could deeply affect your business are
pending, including rising interest rates and the potential formation of a new employee
union. You must also consider your fi rm's contracts with large vendors that extend fi ve
years into the future.

19) The issues that may deeply impact your business such as rising interest rates, formation
of a new employee union, and the fi rm's contracts with large vendors, are examples
of ________ factors that affect planning.
a. noncontrollable
b. outside
c. environmental
d. contingency

The State Road 7 Collaborative (Scenario)
The South Florida Regional Planning Council convened a group of stakeholders, including
the Florida Department of Transportation and the Department of Community Affairs, who
are interested in working together on improving State Road 7. David Dahlstrom is the senior
planner for the South Florida Regional Planning Council. Mr. Dahlstrom successfully
obtained a technical assistance grant. The intent is to organize the 15 small communities
along State Road 7 into an intergovernmental unit. All of the communities will share the
same visioning processes of mission, objectives, and tasks. Mr. Dahlstrom is now charged
with developing a strategic plan for this group, called the State Road 7 Collaborative.

20) First, Mr. Dahlstrom must determine the goals he wants to achieve. To do so, he must
follow a series of steps for goal setting. The fi rst step in setting goals for this new
group should be to ________.
a. request input from others and then formulate specifi c goals
b. formally establish the organization's mission
c. determine the goals individually and then ask for input from others
d. evaluate available resources

21) If a bank estimates the capabilities of its training and development department employees
prior to implementing a new training program designed to change their
method of providing customer service, it is completing what step in the strategic management
process?
a. doing an internal analysis
b. doing an external analysis
c. formulating strategies
d. identifying the organization's current mission, goals, and strategies

22) An example of ________ is when an organization possesses a characteristic that sets itself apart from competitors and gives the fi rm a distinctive edge.
a. legal propriety
b. competitive power
c. core competency
d. competitive advantage

23) Functional-level strategy directly supports ________.
a. corporate strategy
b. focus strategy
c. competitive strategy
d. differentiation strategy

24) An Internet-based knowledge management system that resulted in shorter customer
response times would be one e-business technique that contributes to the competitive
advantage of a ________.
a. star
b. cost leader
c. focuser
d. differentiator

25) The fi rst organization to bring a product or service to market is often referred to as the
________.
a. trailblazer
b. prime player
c. fi rst mover
d. market leader