TEST BANK
FUNDAMENTALS OF MANAGEMENT
11TH EDITION
CHAPTER NO. 1: MANAGERS AND MANAGEMENT IN TODAY'S WORKPLACE
1) Which one of the following is a common myth about the study of management?
A) Management is just common sense.
B) Managers need to be well disciplined in all of the business areas.
C) Managers are found in all types of organizations, large and small.
D) Many of today's managers are minorities.
Answer: A
Explanation: Students might be surprised to know that the academic study of management is filled
with insights, based on extensive research, which often run counter to what seems to be common
sense. That's why we decided to tackle head-on this common-sense perception by opening each
chapter with a particular "management myth" and then "debunking" this myth by explaining how it
is just a common-sense myth.
Diff: 2
AACSB: Analytical thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Analytical
2) An organization is ________.
A) the physical location where people work
B) any collection of people who perform similar tasks
C) a deliberate arrangement of people to accomplish some specific purpose
D) a group of individuals focused on profit-making for their shareholders
Answer: C
Explanation: By definition, an organization is a deliberate arrangement of people brought together
to accomplish some specific purpose or goal.
Diff: 2
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Concept
,3) All organizations have ________ that define(s) the organization's purpose and reason for
existing.
A) limits
B) rules
C) structure
D) goals
Answer: D
Explanation: An organization's goals define its purpose and reason for existing. For example, Mark
Zuckerberg, CEO of Facebook, facing increased public scrutiny over things his company was doing
and not doing in relation to protecting its community of users and the global community at large,
stated that his company's goal was to fix those important issues and to get back to its original
purpose–providing meaningful interactions between family and friends. Rules can help an
organization achieve its goals, but rules do not explicitly define those goals. Organizational
structure defines and limits how people within an organization interact, but structure on its own is
not something that serves to define an organization's purpose.
Diff: 2
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Concept
4) One of the common characteristics of all organizations is ________ define(s) and limits the
behavior of its members.
A) a set of written bylaws
B) an explicit goal
C) a structure
D) a stated purpose
Answer: C
Explanation: An organization is structured in some way that defines and limits the behavior of its
members. Within that structure, rules, regulations, and policies might guide what people can or
cannot do; some members will supervise other members; work teams might be formed or
disbanded; or job descriptions might be created or changed so organizational members know what
they're supposed to do.
,Diff: 2
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Concept
5) A college Spanish club is an example of an organization because it is comprised of people who
________.
A) share the same values, traditions, and customs
B) share the same goals and values
C) share goals and function within a common structure
D) function under the same set of rules and regulations
Answer: C
Explanation: Members of an organization must not only share the same goals, they must all work
within a common structure to attain those goals. To grasp this distinction, compare two baseball
players on different teams: both may share the same goal of winning the World Series, but they
belong to different organizations. Similarly, simply sharing values or rules is not sufficient to
identify or differentiate an organization. To make up an organization, people need to belong to a
shared structure or institution and have common goals.
Diff: 2
AACSB: Analytical thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Application
6) Which one of the following is a key difference between managerial and nonmanagerial
employees?
A) Managerial employees receive higher pay compensation.
B) Nonmanagerial employees have less formal education.
C) Nonmanagerial employees do not oversee the work of others.
D) Managerial employees work longer hours.
Answer: C
Explanation: The distinction between managerial and nonmanagerial employees resides solely in
overseeing work. Managers have the responsibility of supervising and directing work of others.
Nonmanagerial employees do not have this responsibility. Managers may or may not receive better
, compensation, have more education, or work longer hours than nonmanagers—so none of these
criteria can serve to distinguish between the two.
Diff: 1
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Analytical
7) The primary job of a manager is to ________.
A) make decisions that help an organization grow
B) tackle tasks that are too difficult for nonmanagerial employees
C) coordinate between organization leaders and ordinary employees
D) direct and oversee the work of others
Answer: D
Explanation: Though managers may make important decisions, tackle difficult tasks, or coordinate
between leaders and lower-level employees, a manager's primary job is to supervise the work of
others. The supervisory role is what distinguishes managers from nonmanagers.
Diff: 1
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Concept
8) The work of a manager ________.
A) is strictly limited to overseeing and monitoring the work of others
B) may involve performing tasks that are not related to overseeing others
C) involves only high-level tasks that require a sophisticated skill set
D) does not involve interaction with nonmanagerial employees
Answer: B
Explanation: The primary job of a manager is to oversee work of others. However, this does not
preclude a manager from performing tasks on his or her own that do not involve supervision of
others. For example, an insurance claims supervisor might process claims in addition to
coordinating the work activities of other claims employees. Tasks performed by managers are not
necessarily high level and may involve interaction with nonmanagerial workers, so neither of these
choices is correct.
FUNDAMENTALS OF MANAGEMENT
11TH EDITION
CHAPTER NO. 1: MANAGERS AND MANAGEMENT IN TODAY'S WORKPLACE
1) Which one of the following is a common myth about the study of management?
A) Management is just common sense.
B) Managers need to be well disciplined in all of the business areas.
C) Managers are found in all types of organizations, large and small.
D) Many of today's managers are minorities.
Answer: A
Explanation: Students might be surprised to know that the academic study of management is filled
with insights, based on extensive research, which often run counter to what seems to be common
sense. That's why we decided to tackle head-on this common-sense perception by opening each
chapter with a particular "management myth" and then "debunking" this myth by explaining how it
is just a common-sense myth.
Diff: 2
AACSB: Analytical thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Analytical
2) An organization is ________.
A) the physical location where people work
B) any collection of people who perform similar tasks
C) a deliberate arrangement of people to accomplish some specific purpose
D) a group of individuals focused on profit-making for their shareholders
Answer: C
Explanation: By definition, an organization is a deliberate arrangement of people brought together
to accomplish some specific purpose or goal.
Diff: 2
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Concept
,3) All organizations have ________ that define(s) the organization's purpose and reason for
existing.
A) limits
B) rules
C) structure
D) goals
Answer: D
Explanation: An organization's goals define its purpose and reason for existing. For example, Mark
Zuckerberg, CEO of Facebook, facing increased public scrutiny over things his company was doing
and not doing in relation to protecting its community of users and the global community at large,
stated that his company's goal was to fix those important issues and to get back to its original
purpose–providing meaningful interactions between family and friends. Rules can help an
organization achieve its goals, but rules do not explicitly define those goals. Organizational
structure defines and limits how people within an organization interact, but structure on its own is
not something that serves to define an organization's purpose.
Diff: 2
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Concept
4) One of the common characteristics of all organizations is ________ define(s) and limits the
behavior of its members.
A) a set of written bylaws
B) an explicit goal
C) a structure
D) a stated purpose
Answer: C
Explanation: An organization is structured in some way that defines and limits the behavior of its
members. Within that structure, rules, regulations, and policies might guide what people can or
cannot do; some members will supervise other members; work teams might be formed or
disbanded; or job descriptions might be created or changed so organizational members know what
they're supposed to do.
,Diff: 2
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Concept
5) A college Spanish club is an example of an organization because it is comprised of people who
________.
A) share the same values, traditions, and customs
B) share the same goals and values
C) share goals and function within a common structure
D) function under the same set of rules and regulations
Answer: C
Explanation: Members of an organization must not only share the same goals, they must all work
within a common structure to attain those goals. To grasp this distinction, compare two baseball
players on different teams: both may share the same goal of winning the World Series, but they
belong to different organizations. Similarly, simply sharing values or rules is not sufficient to
identify or differentiate an organization. To make up an organization, people need to belong to a
shared structure or institution and have common goals.
Diff: 2
AACSB: Analytical thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Application
6) Which one of the following is a key difference between managerial and nonmanagerial
employees?
A) Managerial employees receive higher pay compensation.
B) Nonmanagerial employees have less formal education.
C) Nonmanagerial employees do not oversee the work of others.
D) Managerial employees work longer hours.
Answer: C
Explanation: The distinction between managerial and nonmanagerial employees resides solely in
overseeing work. Managers have the responsibility of supervising and directing work of others.
Nonmanagerial employees do not have this responsibility. Managers may or may not receive better
, compensation, have more education, or work longer hours than nonmanagers—so none of these
criteria can serve to distinguish between the two.
Diff: 1
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Analytical
7) The primary job of a manager is to ________.
A) make decisions that help an organization grow
B) tackle tasks that are too difficult for nonmanagerial employees
C) coordinate between organization leaders and ordinary employees
D) direct and oversee the work of others
Answer: D
Explanation: Though managers may make important decisions, tackle difficult tasks, or coordinate
between leaders and lower-level employees, a manager's primary job is to supervise the work of
others. The supervisory role is what distinguishes managers from nonmanagers.
Diff: 1
AACSB: Reflective thinking
LO: 1.1: Tell who managers are and where they work.
Question Category: Concept
8) The work of a manager ________.
A) is strictly limited to overseeing and monitoring the work of others
B) may involve performing tasks that are not related to overseeing others
C) involves only high-level tasks that require a sophisticated skill set
D) does not involve interaction with nonmanagerial employees
Answer: B
Explanation: The primary job of a manager is to oversee work of others. However, this does not
preclude a manager from performing tasks on his or her own that do not involve supervision of
others. For example, an insurance claims supervisor might process claims in addition to
coordinating the work activities of other claims employees. Tasks performed by managers are not
necessarily high level and may involve interaction with nonmanagerial workers, so neither of these
choices is correct.
