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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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Samad has just accepted a managerial position at City Bank.In order to be more effective in his new position,he should try to learn who the important people are in City's informal organization.

A) True
B) False

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

A) True
B) False

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Which of the following was created as an answer to the temporary nature of the matrix structure?


A) Line organizations
B) Network organizations
C) Line and staff organizations
D) Self-managed teams

E) C) and D)
F) A) and C)

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A bureaucracy is designed to be customer focused.

A) True
B) False

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A ________organization is characterized by direct two-way lines of responsibility, authority,and communication running from the top to the bottom of the organization,with all people reporting to only one supervisor.


A) cross-functional
B) matrix
C) line and staff
D) line

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

Correct Answer

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In firms with centralized authority,each department is treated as if it is a completely separate and independent organization.

A) True
B) False

Correct Answer

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The matrix organization is sometimes perceived as a temporary solution to a long-term problem.

A) True
B) False

Correct Answer

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Span of control refers to the number of different markets a business can serve efficiently.

A) True
B) False

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Networking uses communication technology to link organizations allowing them to work together on common objectives.

A) True
B) False

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Mass production causes a more complex production process.

A) True
B) False

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Rome Corporation is organized into departments such as finance,production,marketing,data processing,and accounting.Rome has chosen to departmentalize by function.

A) True
B) False

Correct Answer

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The more experienced and capable the manager,the broader the span of control.

A) True
B) False

Correct Answer

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Traditional organizational models provide the flexibility demanded in a changing business environment.

A) True
B) False

Correct Answer

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The management at Forger Steel Corporation has recently decided to rate their company's processes and products against the results achieved by the world's best at similar processes and products.Forger has adopted a policy of international standardization.

A) True
B) False

Correct Answer

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In a bureaucratic organization:


A) customer satisfaction is the number one priority.
B) employees follow strict rules and regulations.
C) departments communicate with each other on a regular basis.
D) the first-line workers are empowered to respond to the needs of customers.

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

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involves radical redesign and dramatic improvements.


A) Re-engineering
B) Re-structuring
C) Line personnel
D) Line organization

E) A) and B)
F) All of the above

Correct Answer

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Self-managed teams avoid involving groups outside of the firm to ensure their plans are not leaked to their competitors.

A) True
B) False

Correct Answer

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Line managers issue orders,enforce discipline,and adjust the organization as conditions change.

A) True
B) False

Correct Answer

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In a________ organization,specialists from different parts of an organization are brought together to work on specific projects,but these specialists still remain part of a traditional line and staff organizational structure.


A) line and staff
B) line
C) centralized
D) matrix

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

Correct Answer

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