PRINCIPLES OF MANAGEMENT STRAIGHTERLINE FINAL PREP | COMPLETE FINAL
EXAM STUDY GUIDE, REVIEW QUESTIONS AND ANSWERS 2026/2027
An advantage of functional departmentalization is the fact that - ANS ✔✔decision making and lines of
communication are simple and clearly understood.
In a decentralized organization, more of the decisions are made by the - ANS ✔✔lower levels of the
organization.
Bella is one of three managers at On-Time Electrical, where she supervises 32 repair technicians. She
reports to the owner. On-Time Electrical would be considered a _____ organization. - ANS ✔✔flat
An example of a line department is - ANS ✔✔product design.
Who selects the chief executive officer of a corporation? - ANS ✔✔the board of directors
Anthony and Roberto are employed at the same company and often work on the same products.
However, they are assigned to separate units, and they perform very specific, different jobs that
contribute to the larger task. This is an example of - ANS ✔✔specialization.
The presence of rules and regulations governing how people in the organization interact is called - ANS
✔✔formalization.
Authority typically is associated with a particular - ANS ✔✔position rather than a particular person.
The numerous tasks that must be carried out in a large organization make _____ a necessity. - ANS
✔✔specialization
Several top executives at Cogswell Integrated Systems are part of the corporation's board and are called
______ directors. - ANS ✔✔inside
As operations manager of the Good Day Greeting Card Company, Rafael requires all seven branch offices
to use the same type of computer and operating system. This simplifies both the communication and
training processes for employees who frequently transfer between offices. Rafael can best be described
as coordinating the offices by - ANS ✔✔standardization.
Division of labor is closely related to the concept of - ANS ✔✔specialization.
In some corporations, one person holds all three positions of CEO, chair of the board of directors, and
president, but it is more common for the CEO to - ANS ✔✔serve also as either chair of the board or
president.
A specific technique used to reduce the need for information is to - ANS ✔✔create self-contained tasks.
Sun Dynasty Foods was voted producer of the best egg rolls nationwide. It soon expanded and now
manufactures and distributes a whole line of frozen foods, kitchen equipment, and specialty sauces, with
,a separate department for each. Sun Dynasty is characterized by the ______ approach to
departmentalization. - ANS ✔✔product
Global Beverage Corporation is planning a worldwide celebration on a particular day in July that marks
the centennial of the company's founding. However, this has caused a problem in one of its overseas
markets, where that day happens to coincide with a solemn national holiday. How should Global
Beverage handle the situation? - ANS ✔✔by allowing its local management team, in consultation with
national leaders and other local personnel, to develop plans for an alternative celebration
Lawrence and Lorsch found that highly differentiated firms were successful if they had ______ levels of
integration. - ANS ✔✔high
Mia, vice president of operations, was looking to make her company more efficient and asked Cesar to
manage the reorganization of the order fulfillment center, even though he was less experienced than
many of the managers in that department. Cesar found that the other managers were not cooperative in
giving him access to their current procedures or ideas about new ones, and he felt powerless to compel
them. Mia most likely made the mistake of - ANS ✔✔delegating responsibility without adequate
authority to Cesar.
By requiring all employees to follow specific procedures, PowerSounds Inc. is making use of the principle
known as - ANS ✔✔standardization.
Whole Earth Grain Corp. has a production, finance, and accounts team. The company has two basic
categories that are departmentalized into bread and flour divisions. Each of its employees has to report
to two bosses—a functional manager and a divisional manager. Whole Earth Grain Corp. is an example of
a _____ organization. - ANS ✔✔matrix
Stockholders of the Dearborn Automotive Group are voting on five new candidates to take an empty
seat on the company's board of directors. The board of directors is currently made up of the company
founder's two sons, one of the company's former marketing vice presidents, and a chief operating officer
who has been with the company since its inception. Based on twenty-first century research and trends,
the best person to fill the seat is - ANS ✔✔the vice president of product development for a software
company.
24-7 Activewear, has separate product lines for men, women, and children. - ANS ✔✔decentralized
decision making.
Each unit performs its specific set of tasks in Everyday Fashions Corp. This is an example of - ANS
✔✔differentiation.
All managers in Everyday Fashions Corp. are required to report to the CEO alone. This is an example of an
organization following - ANS ✔✔unity of command.
Get in the Game Footwear, Inc., makes athletic shoes. Its departments are structured around products
sold to professional athletes, novice athletes, and non-athletes. Get in the Game Footwear uses _____
departmentalization. - ANS ✔✔customer
, As CEO of Everyday Fashions Corp., Beatrice distributes work and assigns responsibility to the various
department managers through the process known as - ANS ✔✔delegation.
Leng's task of successfully determining an appropriate size at which the company can perform most
effectively is known as - ANS ✔✔rightsizing.
The factor that differentiates flexible factories from traditional factories is that flexible factories - ANS
✔✔organize work flow around products.
In organizations that use continuous process technologies, - ANS ✔✔machines and/or computers do all
the work.
When he says that the company should use the same resources to make more related products, Rajiv is
calling for - ANS ✔✔economies of scope.
In Japanese operations strategy, kaizen refers to - ANS ✔✔continuous improvement.
The recession that began in 2008 forced widespread downsizing across many industries, and although
companies rehired workers once the recovery began, tough competition still dictates that they - ANS
✔✔stay as lean as possible.
Advantages of large organizations include - ANS ✔✔easier access to capital.
A form of organization that is similar to Max Weber's description of a bureaucracy is a(n) ______
organization. - ANS ✔✔mechanistic
Continual feedback to participants regarding how they are doing compared with the competition and
how effectively they are meeting the strategic agenda, is particularly important in - ANS ✔✔a high-
involvement organization.
Sandra, the CEO of Danforth & Caldwell, seeks input from both her top management team and the lower
levels of the company before she decides on strategies about the future direction of the company.
Judging from this, Danforth & Caldwell is a(n) _____ organization. - ANS ✔✔high-involvement
In order to meet six sigma standards, the figure 99.99966 is significant because that is the percentage of
- ANS ✔✔time that a product or process should be defect-free.
A company that seeks to revolutionize key organizational systems and processes by thinking like the
customer is applying the concept known as - ANS ✔✔reengineering.
When Janelle talks about creating processes that would help the company interact with customers and
gather knowledge of their wants, needs, and buying patterns, she is referring to - ANS ✔✔customer
relationship management.
Structurally, a high-involvement organization is usually - ANS ✔✔flat and decentralized.
EXAM STUDY GUIDE, REVIEW QUESTIONS AND ANSWERS 2026/2027
An advantage of functional departmentalization is the fact that - ANS ✔✔decision making and lines of
communication are simple and clearly understood.
In a decentralized organization, more of the decisions are made by the - ANS ✔✔lower levels of the
organization.
Bella is one of three managers at On-Time Electrical, where she supervises 32 repair technicians. She
reports to the owner. On-Time Electrical would be considered a _____ organization. - ANS ✔✔flat
An example of a line department is - ANS ✔✔product design.
Who selects the chief executive officer of a corporation? - ANS ✔✔the board of directors
Anthony and Roberto are employed at the same company and often work on the same products.
However, they are assigned to separate units, and they perform very specific, different jobs that
contribute to the larger task. This is an example of - ANS ✔✔specialization.
The presence of rules and regulations governing how people in the organization interact is called - ANS
✔✔formalization.
Authority typically is associated with a particular - ANS ✔✔position rather than a particular person.
The numerous tasks that must be carried out in a large organization make _____ a necessity. - ANS
✔✔specialization
Several top executives at Cogswell Integrated Systems are part of the corporation's board and are called
______ directors. - ANS ✔✔inside
As operations manager of the Good Day Greeting Card Company, Rafael requires all seven branch offices
to use the same type of computer and operating system. This simplifies both the communication and
training processes for employees who frequently transfer between offices. Rafael can best be described
as coordinating the offices by - ANS ✔✔standardization.
Division of labor is closely related to the concept of - ANS ✔✔specialization.
In some corporations, one person holds all three positions of CEO, chair of the board of directors, and
president, but it is more common for the CEO to - ANS ✔✔serve also as either chair of the board or
president.
A specific technique used to reduce the need for information is to - ANS ✔✔create self-contained tasks.
Sun Dynasty Foods was voted producer of the best egg rolls nationwide. It soon expanded and now
manufactures and distributes a whole line of frozen foods, kitchen equipment, and specialty sauces, with
,a separate department for each. Sun Dynasty is characterized by the ______ approach to
departmentalization. - ANS ✔✔product
Global Beverage Corporation is planning a worldwide celebration on a particular day in July that marks
the centennial of the company's founding. However, this has caused a problem in one of its overseas
markets, where that day happens to coincide with a solemn national holiday. How should Global
Beverage handle the situation? - ANS ✔✔by allowing its local management team, in consultation with
national leaders and other local personnel, to develop plans for an alternative celebration
Lawrence and Lorsch found that highly differentiated firms were successful if they had ______ levels of
integration. - ANS ✔✔high
Mia, vice president of operations, was looking to make her company more efficient and asked Cesar to
manage the reorganization of the order fulfillment center, even though he was less experienced than
many of the managers in that department. Cesar found that the other managers were not cooperative in
giving him access to their current procedures or ideas about new ones, and he felt powerless to compel
them. Mia most likely made the mistake of - ANS ✔✔delegating responsibility without adequate
authority to Cesar.
By requiring all employees to follow specific procedures, PowerSounds Inc. is making use of the principle
known as - ANS ✔✔standardization.
Whole Earth Grain Corp. has a production, finance, and accounts team. The company has two basic
categories that are departmentalized into bread and flour divisions. Each of its employees has to report
to two bosses—a functional manager and a divisional manager. Whole Earth Grain Corp. is an example of
a _____ organization. - ANS ✔✔matrix
Stockholders of the Dearborn Automotive Group are voting on five new candidates to take an empty
seat on the company's board of directors. The board of directors is currently made up of the company
founder's two sons, one of the company's former marketing vice presidents, and a chief operating officer
who has been with the company since its inception. Based on twenty-first century research and trends,
the best person to fill the seat is - ANS ✔✔the vice president of product development for a software
company.
24-7 Activewear, has separate product lines for men, women, and children. - ANS ✔✔decentralized
decision making.
Each unit performs its specific set of tasks in Everyday Fashions Corp. This is an example of - ANS
✔✔differentiation.
All managers in Everyday Fashions Corp. are required to report to the CEO alone. This is an example of an
organization following - ANS ✔✔unity of command.
Get in the Game Footwear, Inc., makes athletic shoes. Its departments are structured around products
sold to professional athletes, novice athletes, and non-athletes. Get in the Game Footwear uses _____
departmentalization. - ANS ✔✔customer
, As CEO of Everyday Fashions Corp., Beatrice distributes work and assigns responsibility to the various
department managers through the process known as - ANS ✔✔delegation.
Leng's task of successfully determining an appropriate size at which the company can perform most
effectively is known as - ANS ✔✔rightsizing.
The factor that differentiates flexible factories from traditional factories is that flexible factories - ANS
✔✔organize work flow around products.
In organizations that use continuous process technologies, - ANS ✔✔machines and/or computers do all
the work.
When he says that the company should use the same resources to make more related products, Rajiv is
calling for - ANS ✔✔economies of scope.
In Japanese operations strategy, kaizen refers to - ANS ✔✔continuous improvement.
The recession that began in 2008 forced widespread downsizing across many industries, and although
companies rehired workers once the recovery began, tough competition still dictates that they - ANS
✔✔stay as lean as possible.
Advantages of large organizations include - ANS ✔✔easier access to capital.
A form of organization that is similar to Max Weber's description of a bureaucracy is a(n) ______
organization. - ANS ✔✔mechanistic
Continual feedback to participants regarding how they are doing compared with the competition and
how effectively they are meeting the strategic agenda, is particularly important in - ANS ✔✔a high-
involvement organization.
Sandra, the CEO of Danforth & Caldwell, seeks input from both her top management team and the lower
levels of the company before she decides on strategies about the future direction of the company.
Judging from this, Danforth & Caldwell is a(n) _____ organization. - ANS ✔✔high-involvement
In order to meet six sigma standards, the figure 99.99966 is significant because that is the percentage of
- ANS ✔✔time that a product or process should be defect-free.
A company that seeks to revolutionize key organizational systems and processes by thinking like the
customer is applying the concept known as - ANS ✔✔reengineering.
When Janelle talks about creating processes that would help the company interact with customers and
gather knowledge of their wants, needs, and buying patterns, she is referring to - ANS ✔✔customer
relationship management.
Structurally, a high-involvement organization is usually - ANS ✔✔flat and decentralized.
