Management Chapter 5 Test Bank Exam Questions with Correct Answers

Management Chapter 5 Test Bank Exam
Questions with Correct Answers
1. A goal is a desired future circumstance or condition that the organization attempts to
realize.
a. True
b. False - Answer-True

2. During the strategy execution phase, operational goals are defined.
a. True
b. False - Answer-False

3. Operational plans and goals focus on the outcomes that major divisions and
departments must achieve in order for the organization to reach its overall goals.
a. True
b. False - Answer-False

4. A business plan is a broad definition of the organization's values, aspirations, and
reason for being, along with a recognition of the scope and operations that distinguishes
the organization.
a. True
b. False - Answer-False

5. When possible, operational goals should be expressed in quantitative terms.
a. True
b. False - Answer-True

6. Goals are most effective when they are specific, measurable, challenging, and linked
to rewards.
a. True
b. False - Answer-True

7. Goals should be easy for employees to achieve in order to keep morale and
motivation high.
a. True
b. False - Answer-False

8. One of the biggest benefits of planning is that plans create greater organizational
flexibility in turbulent environments.
a. True
b. False - Answer-False

, 9. If Renee, manager at Leak-Free Roofing, wanted to develop a contingency plan for
Leak-Free, she would need to look at factors such as new equipment, the economy,
and the company workers' compensation cases.
a. True
b. False - Answer-True

10. The two stages of crisis planning are crisis prevention and crisis preparation.
a. True
b. False - Answer-True

11. In today's business environment, it is expected that CEOs will do the large majority
of their corporation's strategic planning.
a. True
b. False - Answer-False

12. Trend management is looking at trends and discontinuities and imagining possible
alternative futures.
a. True
b. False - Answer-False

13. Research has shown that strategic thinking and planning positively affect a firm's
performance and financial success.
a. True
b. False - Answer-True

14. Front-line managers have the final responsibility for strategic planning.
a. True
b. False - Answer-False

15. The set of decisions and actions used to formulate and implement strategies are
referred to as competitive advantage.
a. True
b. False - Answer-False

16. Some companies hire competitive intelligence professionals to scan the external
environment and provide data and research on relevant domestic and global trends.
a. True
b. False - Answer-True

17. The essence of formulating strategy is choosing how the organization will conform
to become like its key competitors in the industry.
a. True
b. False - Answer-False