Test Bank for Karakowsky and Guriel, The Context of Business. Questions and Answers

1) Which of the following is not a universal, defining characteristic of an organization:
a. Organizations are social entities
b. Organizations interact with the environment
c. Organizations are created to achieve goals
d. Organizations make a profit

Answer: d
Diff: 2
Type: MC
Page Reference: 123-124
Skill: recall
Objective: LO2

2) The classical school of management thought is based implicitly on a conception of
organizations that employs a _________ metaphor.
a. Family
b. Machine
c. Organism
d. Team

Answer: b
Diff: 3
Type: MC
Page Reference: 125
Skill: both
Objective: LO2

3) The open-systems approach of organizations is based on the ____________ metaphor.
a. Organism
b. Theatre
c. Team
d. Machine

Answer: a
Diff: 2
Type: MC

Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1

, Page Reference: 125-126
Skill: both
Objective: LO2

4) All of the following are defining elements of organizational structure except:
a. Work specialization
b. Centralization
c. Commoditization
d. Span of control

Answer: c
Diff: 2
Type: MC
Page Reference: 127
Skill: recall
Objective: LO3

5) The degree to which organizational tasks are subdivided into separate jobs is referred
to as:
a. Specialization
b. Horizontal differentiation
c. Span of control
d. Vertical differentiation

Answer: a
Diff: 3
Type: MC
Page Reference: 127-128
Skill: recall
Objective: LO3

6) There are fundamentally two different kinds of specialization referred to as:
a. Horizontal and vertical
b. Centralized and decentralized
c. Functional and Social
d. Narrow and wide

Test Bank for Karakowsky and Guriel, The Context of Business, 1e
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