True/False Questions
1. A desired future outcome that a firm hopes to achieve is called a goal.
Answer: True Page: 4 LO: 1 Difficulty: Easy
AACSB: 14 BT: Knowledge
2. The planning, organizing, leading, and controlling of resources in order to achieve
organizational goals both effectively and efficiently is known as management.
Answer: True Page: 4 LO: 1 Difficulty: Easy
AACSB: 14 BT: Knowledge
3. An organization's people are not considered one of its resources because they are not
permanent, that is, they have the freedom to quit and move to another organization.
Answer: False Page: 4 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Comprehension
4. Increases in a firm's effectiveness will increase its performance, but increases in
efficiency will have no predictable effect on performance.
Answer: False Page: 5, 6 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Comprehension
,5. Management is the process of planning, organizing, leading and controlling resources in
order to make a profit. Therefore, an administrator for a not-for-profit organization is
not truly a manager.
Answer: False Page: 5, 7 LO: 1 Difficulty: Hard
AACSB: 14 BT: Comprehension
6. A measure of how well or productively a firm uses its resources to achieve a goal is
called its effectiveness.
Answer: False Page: 6 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Knowledge
7. McDonald's developed a fat fryer that decreases the amount of oil used in cooking, and
reduced the amount of time to cook fries. This is an example of increased efficiency.
Answer: True Page: 6 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Application
8. A measure of the appropriateness of goals selected by managers for the organization and
the degree to which the organization achieves these goals is known as the effectiveness
of the organization.
Answer: True Page: 6 LO: 1 Difficulty: Easy
AACSB: 14 BT: Knowledge
, 9. When managers select appropriate goals for their organization and then the organization
achieves these goals, we say that the organization is efficient.
Answer: False Page: 6 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Knowledge
10. The process that managers use to select the goals for the organization is known as
organizing.
Answer: False Page: 8 LO: 2 Difficulty: Moderate
AACSB: 14 BT: Knowledge
11. An organization's strategy is an outcome of its planning processes.
Answer: True Page: 9 LO: 2 Difficulty: Moderate
AACSB: 14 BT: Comprehension
12. Dell Computer's decision to sell directly to customers is an example of a low-cost
strategy.
Answer: True Page: 9 LO: 2 Difficulty: Moderate
AACSB: 14 BT: Application
13. Grouping people into the various departments of a firm is known as organizing.
Answer: True Page: 9 LO: 2 Difficulty: Easy
AACSB: 14 BT: Knowledge
, 14. An organization's structure determines how the organization's resources can be used to
create goods and services.
Answer: True Page: 9 LO: 2 Difficulty: Easy
AACSB: 14 BT: Comprehension
15. Managers who are monitoring the performance of their subordinates are performing the
organizing function of management.
Answer: False Page: 10 LO: 2 Difficulty: Moderate
AACSB: 14 BT: Comprehension
16. An outcome of the controlling function should be the ability to measure the
organization's performance accurately.
Answer: True Page: 10 LO: 2 Difficulty: Easy
AACSB: 14 BT: Comprehension
17. First-line managers can be found in all of the departments of an organization.
Answer: True Page: 12 LO: 3 Difficulty: Moderate
AACSB: 14 BT: Comprehension
1. A desired future outcome that a firm hopes to achieve is called a goal.
Answer: True Page: 4 LO: 1 Difficulty: Easy
AACSB: 14 BT: Knowledge
2. The planning, organizing, leading, and controlling of resources in order to achieve
organizational goals both effectively and efficiently is known as management.
Answer: True Page: 4 LO: 1 Difficulty: Easy
AACSB: 14 BT: Knowledge
3. An organization's people are not considered one of its resources because they are not
permanent, that is, they have the freedom to quit and move to another organization.
Answer: False Page: 4 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Comprehension
4. Increases in a firm's effectiveness will increase its performance, but increases in
efficiency will have no predictable effect on performance.
Answer: False Page: 5, 6 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Comprehension
,5. Management is the process of planning, organizing, leading and controlling resources in
order to make a profit. Therefore, an administrator for a not-for-profit organization is
not truly a manager.
Answer: False Page: 5, 7 LO: 1 Difficulty: Hard
AACSB: 14 BT: Comprehension
6. A measure of how well or productively a firm uses its resources to achieve a goal is
called its effectiveness.
Answer: False Page: 6 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Knowledge
7. McDonald's developed a fat fryer that decreases the amount of oil used in cooking, and
reduced the amount of time to cook fries. This is an example of increased efficiency.
Answer: True Page: 6 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Application
8. A measure of the appropriateness of goals selected by managers for the organization and
the degree to which the organization achieves these goals is known as the effectiveness
of the organization.
Answer: True Page: 6 LO: 1 Difficulty: Easy
AACSB: 14 BT: Knowledge
, 9. When managers select appropriate goals for their organization and then the organization
achieves these goals, we say that the organization is efficient.
Answer: False Page: 6 LO: 1 Difficulty: Moderate
AACSB: 14 BT: Knowledge
10. The process that managers use to select the goals for the organization is known as
organizing.
Answer: False Page: 8 LO: 2 Difficulty: Moderate
AACSB: 14 BT: Knowledge
11. An organization's strategy is an outcome of its planning processes.
Answer: True Page: 9 LO: 2 Difficulty: Moderate
AACSB: 14 BT: Comprehension
12. Dell Computer's decision to sell directly to customers is an example of a low-cost
strategy.
Answer: True Page: 9 LO: 2 Difficulty: Moderate
AACSB: 14 BT: Application
13. Grouping people into the various departments of a firm is known as organizing.
Answer: True Page: 9 LO: 2 Difficulty: Easy
AACSB: 14 BT: Knowledge
, 14. An organization's structure determines how the organization's resources can be used to
create goods and services.
Answer: True Page: 9 LO: 2 Difficulty: Easy
AACSB: 14 BT: Comprehension
15. Managers who are monitoring the performance of their subordinates are performing the
organizing function of management.
Answer: False Page: 10 LO: 2 Difficulty: Moderate
AACSB: 14 BT: Comprehension
16. An outcome of the controlling function should be the ability to measure the
organization's performance accurately.
Answer: True Page: 10 LO: 2 Difficulty: Easy
AACSB: 14 BT: Comprehension
17. First-line managers can be found in all of the departments of an organization.
Answer: True Page: 12 LO: 3 Difficulty: Moderate
AACSB: 14 BT: Comprehension
