2. Which one of the following strategies is developed at the top level of management?
D. Business unit-level
9. A consumer has to choose between going to the movies or going out to dinner. If she
chooses the movies, the cost of dinner is considered a/an _______ cost.
11. The Vice President of Marketing develops the _______-level strategy.
A. business unit
12. “New and improved” products come from _______ innovation.
14. Which of the following describes the overall aims of a business organization?
15. When a bakery analyzes the effects of a new competitor entering the neighborhood and its potential
impact on its business, the bakery is analyzing its
18. Which of the following is an advantage of decentralized decision making?
B. Optimization of power
C. Optimization of resources
D. Knowledge in policies and procedures
19. Which of the following relates inputs to outputs?
1. Which of the following deals with cost-benefit analysis?
2. _______ occurs when the inflation rate is less than zero percent.
A. Purchasing power parity (PPP)
C. A recession
6. The extent of an organization’s centralization or decentralization approach is determined by
A. degree of coordination.
B. span of control.
C. number of hierarchical levels.
D. control, levels, and coordination.
10. In centralized decision making, authority is
A. kept at senior management levels.
B. pushed down to front-line employees.
C. shared throughout the organization.
D. delegated to wherever it’s needed to solve problems.
14. Which of the following relates inputs to outputs?
15. Which of the following is an example of modern management?
A. Command-and-control order
B. Concern for employees
C. Less trust for market forces
D. Production economy
17. A company decides to improve its product warranty to show customers it has higher quality when
compared to other products in the marketplace. This is an example of
A. threat of new entrants.
B. bargaining power of suppliers.
C. availability of complementary products.
D. rivalry among existing firms.
19. Which of the following types of organizations have a fluid structure?
A. Mutual-benefit organizations
B. For-profit organizations
C. Porous organizations
D. Non-profit organizations
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