ACTUAL Exam Questions and CORRECT
Answers
what is the difference between intentional tort and negligence - CORRECT ANSWER -an
intentional tort
is a willful act that results in injury.
An intentional tort is a willful act that results in injury. Negligence deals with unintentional
behavior that causes harm or injury.
departmentalization - CORRECT ANSWER -The process of setting up individual
departments to do specialized tasks is called:
Economies of Scale - CORRECT ANSWER -The situation in which companies can reduce
their production costs if they can purchase raw materials in bulk; the average cost of goods goes
down as production levels increase.
hierarchy - CORRECT ANSWER -A system in which one person is at the top of the
organization and there is a ranked or sequential ordering from the top down of managers who are
responsible to that person.
Beauracracy - CORRECT ANSWER -An organization with many layers of managers who
set rules and regulations and oversee all decisions.
A reliance on rules. Companies designed many rules and regulations to give managers control
over it is often considered inefficient
Max Weber uses this term
chain of command - CORRECT ANSWER -The line of authority that moves from the top
of a hierarchy to the lowest level.
, span of control - CORRECT ANSWER -The number of subordinates a manager
supervises or should supervise.
centralized authority - CORRECT ANSWER -An organization structure in which
decision-making authority is maintained at the top level of management at the company's
headquarters.
ADVANTAGES:Greater top-management control, more efficiency, simpler distribution system,
strong brand/corporate image
WEAKNESSES:Less responsive to customers, less empowerment, inter-organizational conflict,
lower morale away from headquarters
decentralized authority - CORRECT ANSWER -An organization structure in which
decision-making authority is delegated to lower-level managers more familiar with local
conditions than headquarters management could be.
ADVANTAGES: Better adaptation to customer wants, more empowerment of workers, faster
decision-making, Higher morale.
WEAKNESSES:Less efficiency, complex distribution system, less top-management control,
weakened corporate image
tall organization structure - CORRECT ANSWER -Organization with multiple layers of
management between top executives and front-line employees
An organizational structure in which the pyramidal organization chart would be quite tall
because of the various levels of management.
build a tall organization that has many reporting levels
Flat Organizational Structure - CORRECT ANSWER -Organization with a few layers of
management between the executive level and the lowest level
An organization structure that has few layers of management and a broad span of control.