1. Which of the following is a benefit of a competitive market structure?

A. efficient decision-making

B. a low tax rate

C. high cost of production

D. high market power

2. Fama and Jensen suggest that "the form of organization that survives in an activity is the one that delivers the product demanded by customers at the lowest price while covering costs." This is an example of

A. market and organizational efficiency.

B. market and organizational equity.

C. economic benchmarking.

D. defective organizational architecture.

3. In order to survive in a market, a firm needs to

A. make extensive use of available technology.

B. hire more capital and less labor.

C. produce a product demanded by consumers at the lowest possible price while covering costs.

D. charge higher prices for its products than its rivals and revise prices upward periodically.

4. The term Darwinism is important because it indicates

A. the randomness of existing companies.

B. that the surviving companies are the best in the absolute sense.

C. the capability to transform as the external environment changes.

D. the existence of a higher intelligence that promotes success.

5. The principle “survival of the fittest” tells us that

A. only the most innovative and adaptive firms are likely to survive competition.

B. only the most innovative and adaptive firms are likely to attract more competition.

C. only the least innovative and adaptive firms are likely to survive competition.

D. only the most innovative and adaptive firms are likely to migrate to other products.

6. The business practice of looking for a firm that has best practices in an area and then emulating those practices is called

A. organizational architecture.

B. benchmarking.

C. competitive markets.

D. decision management.

7. Benchmarking means

A. blind copying from others.

B. copying from the best so as to become better.

C. looking at yourself and telling others what to do.

D. looking at yourself and telling yourself you are the greatest.

8. Benchmarking may be a problem if

A. the current architecture is relatively unstable and proposed changes add huge benefits.

B. the current architecture is relatively stable and proposed changes add huge benefits.

C. the current architecture is relatively unstable and proposed changes add little benefits.

D. the current architecture is relatively stable and proposed changes add little benefits.

9. Which of the following is a primary role of a manager according to the good-citizen model?

A. to communicate the goals and objectives of the organization to employees

B. to discourage innovation at work

C. to allow the employees to work independently, without any help from the managers

D. to recognize and reward an employee who is honest, punctual, and obedient

10. The ______ model suggests that that the productivity of employees in a firm will increase if the firm offers lifetime employment and a high salary.

A. only-money-matters

B. happy-is-productive

C. product-of-the-environment

D. good-citizen