ORGANIZATIONS AND ORGANIZATION THEORY
MULTIPLE CHOICE
1. The definition of "organization" is:
a. A goal-directed entity that has members who set goals and achieve them
through strategic planning.
b. An entity with identifiable permanent boundaries.
c. A social entity that is goal-directed, has a deliberately-structured activity
system, and a permeable boundary.
d. A business that performs work activities and contributes to its society by
employing people.
ANSWER: c
2. The key element of an organization is it’s
a. buildings and policies.
b. people and their relationships.
c. profits.
d. facilities location.
ANSWER: b
,3. Financial resources for nonprofit organizations usually come from all of the following except
a. the sale of competitor’s products or services.
b. grants.
c. government appropriations.
d. donations.
ANSWER: a
4. Non-profit organization managers deal with many diverse shareholders and must
market their services to all of the following except
a. donors.
b. shareholders.
c. clients.
d. volunteers.
ANSWER: b
,5. The importance of organizations includes all of the following concepts except:
a. Create value for owners, customers, and employees
b. Establishing important relationships with the government
c. Facilitate innovation
d. Bring together resources for achieving desired goals and outcomes
ANSWER: b
6. Organizations exist to do which of the following?
a. Bring in a profit
b. Develop advanced manufacturing and information technologies
c. Challenge diversity, ethics, and the motivation and coordination of employees
d. Facilitate innovation
ANSWER: d
7. Organizations create a drive for _______ rather than reliance on standard products and outmoded
ways of doing things.
a. profitability
b. fixed structures
c. innovation
d. developing change
ANSWER: c
8. An open system:
a. Means that the financial books and records are shared with employees.
b. Exports resources to the environment.
c. Has all the energy it needs within itself.
d. Was the basis for early management concepts such as scientific management.
ANSWER: b
, 9. The organization should be viewed as a system which is a set of interrelated
elements that:
a. Acquires inputs, transforms them, and discharges outputs.
b. Is independent from the environment.
c. Should be sealed off from the environment.
d. Focuses primarily on internal efficiency.
ANSWER: a
10. The surgery department in a hospital would belong to which subsystem:
a. Production
b. Boundary spanning
c. Maintenance
d. Management
ANSWER: a