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Rob is a middle manager who spends much of his time devising ways to implement the ideas of top management. Max Weber would have considered Rob a bureaucrat.

A) True
B) False

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Weber put great trust in the creativity, skills, and pride of employees and believed that managers should act more as coaches than as bosses.

A) True
B) False

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Henri Fayol and Max Weber are best known for their contributions to accounting theory.

A) True
B) False

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The informal organization is best suited for decision making on big issues.

A) True
B) False

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In Weber's view of a bureaucratic organization, the role of top management was to:


A) empower workers and enable them to quickly respond to customer wants.
B) make decisions.
C) develop the rules and procedures needed to carry out the plans of bureaucrats.
D) directly supervise front-line employees to better control operations.

E) B) and C)
F) A) and B)

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Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?


A) Web-based corporation
B) Benchmark outsourcing system
C) Network system
D) Virtual corporation

E) A) and D)
F) None of the above

Correct Answer

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Economies of scale:


A) are available to small firms but not to large firms due to management inefficiencies.
B) are achieved when a firm reduces its average cost of production as it produces more.
C) can be avoided by purchasing supplies and raw materials in large quantities.
D) help explain the success of small businesses.

E) B) and C)
F) A) and B)

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Division of labor is difficult to achieve in small businesses.

A) True
B) False

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A weakened corporate image is one of the disadvantages of a decentralized business organization.

A) True
B) False

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Team participants in a matrix organization model may report to two managers.

A) True
B) False

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Soprano Industries follows a chain of command with authority moving from the top of the hierarchy down to lower-level managers. The company is organized by department with established rules and regulations that everyone is expected to follow. All of these characteristics suggest that Soprano is an example of a bureaucratic organization.

A) True
B) False

Correct Answer

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One key to organizational success is to go back to basic principles and build the business on a sound foundation.

A) True
B) False

Correct Answer

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As compared to a centralized management structure, which of the following is a disadvantage of the decentralized management structure?


A) Less responsive to customers
B) Less empowerment
C) Weakened corporate image
D) Lower morale away from corporate headquarters

E) B) and C)
F) C) and D)

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Max Weber believed that promotion should be based solely on seniority.

A) True
B) False

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A recent business trend is the elimination of layers of management, creating flatter organizations and subsequently, a wider span of control.

A) True
B) False

Correct Answer

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Small business organizations lack the size required to reap the benefits of labor specialization.

A) True
B) False

Correct Answer

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As your good friend ponders putting some structure to his/her graphic design business idea, which of the following do you not - advise him/her to do?


A) Prepare the non-changeable marketing plan for the next three years, including marketing analysis and marketing strategy
B) List the work that needs to be done such as 1) computer assisted design; 2) sales generation; 3) accounting and bookkeeping; 4) purchasing and supply ordering, and more
C) List who will do the various jobs, including who will perform the computer work, who will keep the books, and who will go out and create sales
D) Assign responsibility and authority to certain employees

E) A) and B)
F) A) and C)

Correct Answer

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