114 test bank for fundamentals of management sixth edition 6th edition robbins

Test Bank for Fundamentals of Management Sixth
Edition 6th Edition Robbins
36 Test Bank for True – False Questions

5 Test Bank Free Text Questions
73 Test Bank Multiple Choice Questions

Which of the following is included in an organization's specific
environment?
1.

A) competitors

2.

B) inflation

3.

C) government legislation

4.

D) interest rates

5.

E) demographics

For an amusement theme park like Paramount Canada's Wonderland in
Toronto, an insurance provider would be an example of which factor in its

specific environment?
1.

A) competitor

2.

B) pressure group

3.

C) supplier

4.

D) customer

5.

E) government agency

Political/legal conditions in Canada include all of the following factors
except __________.
1.

A) interest rates

2.

B) the competition bureau

3.

C) human rights

4.

D) egg marketing boards

5.

E) employment equity

Managers operate within the internal and external constraints imposed by
__________.
1.

A) federal and provincial governments

2.

B) the organization's board of directors

3.

C) the organization's culture and environment

4.

D) industry regulation

5.

E) the employees of the organization

As employees have begun to seek more balance in their lives,
organizations have had to adjust by offering family leave policies, more
flexible work hours, and even on-site child care facilities. This is an
example of how changing __________ conditions can affect an
organization.
1.

A) demographic

2.

B) political/legal

3.

C) technological

4.

D) economic

5.

E) sociocultural

The global environment of an organization includes which of the
following?
1.

A) pressure groups

2.

B) stakeholders

3.

C) issues directly relevant to achieving organizational goals

4.

D) suppliers


5.

E) demographic conditions

According to the textbook, the __________ environment includes those
external forces that have a direct and immediate impact on managers'
decisions and actions and are directly relevant to the achievement of the
organization's goals.
1.

A) general

2.

B) primary

3.

C) forward

4.

D) specific

5.

E) secondary

When researchers discovered a link between trans fatty acids and heart
disease, many consumers became concerned. As a result, Ontario-based
Voortman's Cookies decided to eliminate all trans fats from its products.
Voortman's was responding to changing __________ conditions.
1.

A) economic

2.

B) technological

3.

C) sociocultural

4.

D) competitive

5.

E) political/legal

A downturn in contributions from the public to the United Way charity is
an example of the impact from what factor in its general environment?
1.

A) economic

2.

B) global

3.

C) political

4.

D) technological

5.

E) sociocultural


The Canadian Human Rights Act is an example of a __________.
1.

A) political/sociological condition

2.

B) sociocultural condition

3.

C) demographic condition

4.

D) political/legal condition

5.

E) sociolegal condition

Internal constraints that restrict a manager's decision options arise from
__________.
1.

A) the rules and policies implemented by top managers

2.

B) the organization's culture

3.

C) the activities of industry competitors

4.

D) the organization's environment

5.

E) the laws and regulations governing workplace practices

Interest rates, inflation rates, and stock market indexes are all examples of
what factor in an organization's general environment?
1.

A) sociocultural

2.

B) legal

3.

C) political

4.

D) economic

5.

E) technological

Economic conditions include all of the following factors except
__________.
1.

A) stock market fluctuations

2.

B) federal government legislation

3.

C) inflation


4.

D) interest rates

5.

E) changes in disposable income

Human resources managers are increasingly using the Internet to search
for qualified candidates through on-line résumé systems and job-posting
websites. This is an example of how changing __________ conditions can
affect an organization.
1.

A) technological

2.

B) demographic

3.

C) political/legal

4.

D) economic

5.

E) sociocultural

According to the textbook, the members of which one of the following
demographic groups are thinking, learning, creating, shopping, and
playing in fundamentally different ways that are likely to greatly impact

organizations and managers?
1.

A) Generation Y

2.

B) the Depression group

3.

C) Generation X

4.

D) the World War II group

5.

E) the baby boomers

An organization's specific environment __________.
1.

A) is the same regardless of the organization's age

2.

B) includes economic and global conditions that may affect the organization

3.

C) is unique and changes with conditions

4.

D) is determined by the top level of management


5.

E) includes demographic and technological conditions that may affect the
organization

The omnipotent view of management means __________.
1.

A) managers have little or no responsibility for an organization's success or failure

2.

B) the top manager is the only person in charge

3.

C) managers are directly responsible for an organization's success or failure

4.

D) managers are directly responsible for all internal factors within their control

5.

E) outside forces have the most influence on organizational outcomes

The primary goal of managers when dealing with suppliers is to ensure a
steady flow of __________.
1.

A) inputs at the lowest price available

2.

B) cheap labour to produce products at the lowest possible cost

3.

C) industry entrants to help maximize the competition among suppliers

4.

D) customers at the distribution outlets

5.

E) cash from investors into the organization

Which of the following demographic groups includes individuals who
were born between the years 1947-1966?
1.

A) the baby boomers

2.

B) the Depression group

3.

C) Generation Y

4.

D) the World War II group

5.

E) Generation X

Despite the existence of both internal and external constraints, managers
can still improve organizational performance by:
1.

A) influencing the organization's culture and environment.


2.

B) electing new government officials at the federal and provincial levels.

3.

C) introducing new rules and procedures.

4.

D) redesigning the organization's structure.

5.

E) delegating more responsibility to employees.

Neighbourhood activists who protest against the building of "big box"
stores would be considered which factor in the specific environment for
Wal-Mart or Home Depot?
1.

A) pressure group

2.

B) customer

3.

C) government agency

4.

D) competitor

5.

E) supplier

For an organization such as a hospital that needs nurses, the labour union
and the local labour market are examples of which factors in its specific
environment?
1.

A) government agency and competitor

2.

B) pressure group and supplier

3.

C) pressure group and competitor

4.

D) customer and special-interest group

5.

E) both are examples of suppliers

The external environment consists of the global environment,
__________.

1.

A) primary environment, and the secondary environment

2.

B) primary environment, and the general environment

3.

C) specific environment, and the general environment

4.

D) organizational culture, and the general environment


5.

E) national culture, and the specific environment

According to the symbolic view, managers have a(n) __________ effect on
substantive organizational outcomes.
1.

A) unlimited

2.

B) negative

3.

C) substantial

4.

D) moderate

5.

E) limited

Sociocultural conditions consist of the __________.
1.
2.

A) demographic profiles of an organization's suppliers
B) laws that govern human rights and the competitive activities of organizations in
a society

3.

C) changing expectations of the society in which organizations operate

4.

D) socialization processes that help to maintain organizational cultures

5.

E) level of unemployment and real economic incomes of workers

The specific environment of organizations consists of external forces that
have a direct impact on managers' decisions and actions. The main forces
are customers, suppliers, competitors, and __________.
1.

A) pressure groups

2.

B) employees

3.

C) shareholders

4.

D) lawyers

5.

E) legislators

For most organizations, the most rapidly changing factor has been
__________ conditions.
1.

A) technological


2.

B) economic

3.

C) political/legal

4.

D) global

5.

E) sociocultural

Which Act makes it illegal for employers to discriminate on the basis of
race, national or ethnic origin, colour, religion, age, sex, marital status,
mental or physical disability, or sexual orientation?
1.

A) Canadian Human Rights Act

2.

B) Canadian Charter of Rights and Freedoms

3.

C) Canadian Civil Liberties Act

4.

D) Canada's Employment Equity Act

5.

E) Canada's Competition Act

United Parcel Service represents which factor to Canada Post in its
specific environment?
1.

A) supplier

2.

B) pressure group

3.

C) government agency

4.

D) customer

5.

E) competitor

The symbolic view of management means __________.
1.

A) managers are only responsible for those factors that influence organizational
performance

2.

B) successful managers become role models for employees

3.

C) employees are directly responsible for an organization's success or failure

4.

D) managers have only a limited effect on organizational outcomes

5.

E) managers are directly responsible for an organization's success or failure


The __________ view of management is consistent with the stereotypical
picture of the take-charge business executive who can overcome any
obstacle in carrying out the organization's objectives.

1.

A) interactive

2.

B) symbolic

3.

C) omnipotent

4.

D) reflective

5.

E) dynamic

Which of the following is an example of a force in the general
environment?
1.

A) customers

2.

B) competitors

3.

C) suppliers

4.

D) demographics

5.

E) pressure groups

What are the two views of managerial impact on the success or failure of
the organization?
1.

A) symbolic and interactive

2.

B) omnipotent and symbolic

3.

C) omnipotent and reflective

4.

D) dynamic and reflective

5.

E) reflective and interactive

To a cable television provider like Shaw Cablesystems, a satellite TV
company like Bell would be considered a __________.
1.

A) customer


2.

B) regulator

3.

C) pressure group

4.

D) competitor

5.

E) supplier

As more consumers have become aware of the use of rendered feed and
the poor treatment of chickens in many large-scale poultry farms, some
farm managers have switched to all-natural feed and "free range"

breeding methods. This is an example of how changing __________
conditions can affect an organization.
1.

A) political/legal

2.

B) economic

3.

C) technological

4.

D) demographic

5.

E) sociocultural

Which of the following is usually part of an organization's general
environment?
1.

A) political conditions

2.

B) weather conditions

3.

C) competitors

4.

D) pressure groups

5.

E) suppliers

73 Free Test Bank for Fundamentals of Management
Sixth Canadian Edition 6th Edition Robbins Multiple
Choice Questions - Page 2


If the components in an organization's environment change frequently, it
is called a __________ environment.
1.

A) difficult

2.

B) dynamic

3.

C) divergent

4.

D) dysfunctional

5.

E) transitory

Many organizations, especially small businesses, start doing business
globally by __________.
1.

A) exporting and importing

2.

B) licensing and franchising

3.

C) establishing foreign subsidiaries

4.

D) hiring foreign brokers to represent their product line

5.

E) forming joint ventures

John and Sylvie recently opened a high-tech firm. From its inception the
co-founders committed significant resources to the pursuit of business in
various countries. John and Sylvie have created a company that can best
be classified as a:
1.

A) strategic international alliance

2.

B) born global

3.

C) greenfield franchise

4.

D) venture capitalist

5.

E) joint alliance

McDonald's Canada, GM Canada, and IBM Canada are all examples of U.S.
__________ operating in Canada.
1.

A) transnational ventures


2.

B) franchises

3.

C) subsidiaries

4.

D) strategic alliances

5.

E) joint ventures

__________ are any constituencies in the organization's external
environment that are affected by the organization's decisions and actions.
1.

A) Stakeholders

2.

B) Pressure groups

3.

C) Consumers

4.

D) Stockholders

5.

E) Suppliers

The cultural dimension of __________ measures the degree to which the
members of a society expect power to be unequally shared.
1.

A) humane orientation

2.

B) power distance

3.

C) in-group collectivism

4.

D) uncertainty avoidance

5.

E) assertiveness

Which approach to going global did McDonald's Canada use when it
opened restaurants in Russia?
1.

A) franchising

2.

B) exporting

3.

C) licensing

4.

D) strategic alliances

5.

E) foreign contracting


The degree of __________ refers to the number of components in an
organization's environment and the extent of the knowledge that the
organization has about those components.

1.

A) flexibility

2.

B) risk

3.

C) complexity

4.

D) change

5.

E) stability

Canada's economy is best described as __________.
1.

A) a command economy with no private sector control

2.

B) a market economy with no government control

3.

C) a command economy with some private sector control

4.

D) a command economy with some government control

5.

E) a market economy with some government control

Through the creation of the EU, member countries now have __________.
1.

A) government subsidies

2.

B) protected industries

3.

C) a single market

4.

D) border controls

5.

E) nationalistic policies

Which of the following strategies for going global involves a higher level
of risk and investment than strategic alliances?
1.

A) licensing

2.

B) foreign contracting

3.

C) exporting


4.

D) franchising

5.

E) foreign subsidiary

From a legal-political standpoint, some large corporations have
postponed doing business with China and other Asian countries due to
__________.
1.

A) stable government policies

2.

B) fluctuating currency exchange rates

3.

C) unstable inflation rates

4.

D) political interference

5.

E) diverse tax policies

Which of the following is a multilateral trading system formed in 1995?
1.

A) GATT

2.

B) WTO

3.

C) Mercosur

4.

D) ASEAN

5.

E) NAFTA

Canada exports __________ of its total exports to the United States.
1.

A) nearly 90 percent

2.

B) nearly 80 percent

3.

C) one-half

4.

D) one-third

5.

E) 70 percent

Compared to many other countries, Canada's legal-political environment
is considered __________.
1.

A) fixed


2.

B) stable

3.

C) radical

4.

D) dynamic

5.

E) unstable

Which of the following are the two dimensions of environmental
uncertainty?
1.

A) degree of complexity and degree of impact

2.

B) degree of impact and degree of uncertainty

3.

C) degree of change and degree of flexibility

4.

D) degree of risk and degree of complexity

5.

E) degree of change and degree of complexity

IBM is the world's largest information technology company with over
300,000 employees in 170 countries. It once had a country-based
structure, but reorganized into industry groups to compete more
effectively in the global marketplace. IBM is best described as a
__________ organization.
1.

A) multicultural

2.

B) borderless

3.

C) philanthropic

4.

D) multinational

5.

E) polycentric

Which approach to going global involves making products at home and
selling them overseas?
1.

A) foreign contracting

2.

B) franchising

3.

C) licensing


4.

D) exporting

5.

E) importing

A domestic firm and a foreign firm sharing the cost of developing new
products or building production facilities would be called a __________.
1.

A) franchising agreement

2.

B) transnational venture

3.

C) strategic alliance

4.

D) foreign subsidiary

5.

E) brokering agreement

Which of the following strategies for going global involves the lowest level
of risk and investment?
1.

A) foreign subsidiary

2.

B) strategic alliances

3.

C) foreign contracting

4.

D) licensing and franchising

5.

E) exporting

XYZ is an international corporation that has recently changed its
philosophy. It has decentralized management and decision making to the
local countries in which it operates. XYZ is pursuing a __________
approach.
1.

A) global

2.

B) multidomestic

3.

C) natural global

4.

D) intra-governmental

5.

E) multicultural


Given a choice, most managers would prefer to operate in environments
that are __________.
1.

A) dynamic and flexible

2.

B) simple and stable

3.

C) simple and dynamic

4.

D) complex and stable

5.

E) complex and dynamic

Three economic issues that a global manager might need to understand
include __________.
1.

A) tax policies, political stability, and cultural differences

2.

B) currency exchange rates, inflation rates, and tax policies

3.

C) tax policies, employment laws, and cultural differences

4.

D) inflation rates, tax policies, and political stability

5.

E) employment laws, currency exchange rates, and political stability

The enhanced speed and quality of managerial decision making due to
improvements in office automation is an example of the impact of which
general environmental factor?
1.

A) political

2.

B) demographic

3.

C) sociocultural

4.

D) global

5.

E) technological

A joint venture is a specific type of __________.
1.

A) licensing agreement

2.

B) foreign contracting arrangement


3.

C) foreign subsidiary

4.

D) strategic alliance

5.

E) franchise

According to Hofstede, managers and employees vary on five dimensions
of national culture. Which of the following represents one of the five
dimensions that Hofstede identified?
1.

A) Power avoidance

2.

B) Freedom vs. Restraint

3.

C) Open-Minded vs. Close-minded

4.

D) Achievement vs. Nurturing

Which of the following definitions best describes a borderless
corporation?
1.

2.

A) a company that maintains significant operations in at least two countries but
organizes by industry to reduce geographical barriers
B) a company that maintains significant operations in at least two countries

3.

C) a company that maintains significant operations in at least two countries but
decentralizes management to each country

4.

D) a company that maintains significant operations in at least two countries but is
managed from a base in the home country

5.

E) a company that maintains significant operations in at least two countries and
has multiple home bases

When an organization drops its structure based on countries and
reorganizes according to industries, it is pursuing a global business
approach known as __________.
1.

A) transactional organization

2.

B) polycentric organization

3.

C) multinational organization

4.

D) borderless organization


5.

E) multicultural organization

Multinational corporations (MNCs) became commonplace in the
__________.
1.

A) 1960s

2.

B) 1940s

3.

C) 1970s

4.

D) 1980s

5.

E) 1950s

Managers try to minimize __________ because it is a threat to an
organization's effectiveness.
1.

A) uncertainty

2.

B) technology

3.

C) efficiency

4.

D) product development

5.

E) inflation

The WTO is a global organization that evolved from __________.
1.

A) GATT

2.

B) NAFTA

3.

C) EEC

4.

D) ASEAN

5.

E) the Maastricht Treaty

Since the emergence of digital music formats, the recorded music
industry has been operating in an environment that is best described as
__________.
1.

A) flexible

2.

B) stable

3.

C) dynamic

4.

D) divergent

5.

E) static

The cultural dimension of __________ measures the degree to which a
society relies on social norms and procedures to alleviate the
unpredictability of future events.
1.

A) assertiveness

2.

B) power distance

3.

C) performance orientation

4.

D) uncertainty avoidance

5.

E) future orientation

Which of the following is a trading alliance of Southeast Asian nations?
1.

A) Southern Cone Common Market

2.

B) FTAA

3.

C) Mercosur

4.

D) ASEAN

5.

E) NAFTA

Which of the following strategies for going global involves the highest
level of risk and investment?
1.

A) strategic alliances

2.

B) exporting

3.

C) foreign contracting

4.

D) licensing and franchising

5.

E) foreign subsidiary


From a cultural standpoint, research indicates that __________ has a
greater effect on employees than __________.
1.

A) employment law; religion

2.

B) national culture; employment law

3.

C) national culture; organizational culture

4.

D) organizational culture; national culture

5.

E) organizational culture; religion

Which of the following definitions is most accurate for a multinational
corporation?
1.

A) a company that maintains significant operations in at least two countries but
decentralizes management to each country

2.

B) a company that maintains significant operations in at least two countries but is
managed from a base in the home country

3.

C) a company that maintains significant operations in at least two countries

4.

D) a company that maintains significant operations in at least two countries and
has multiple home bases

5.

E) a company that maintains significant operations in at least two countries but
organizes by industry to reduce geographical barriers

36 Free Test Bank for Fundamentals of Management
Sixth Canadian Edition 6th Edition Robbins True False Questions
The dominant view in management theory suggests that managers are
omnipotent.
1.

True

2.

False


In the omnipotent view of management, much of an organization's
success or failure is due to forces outside management's control.
1.

True

2.

False

Research indicates that organizational culture has a stronger impact on
employees than national culture.
1.

True

2.

False

Multinational corporations became commonplace in the mid-1960s.
1.

True

2.

False

Only when a country's legal-political environment is unstable or
revolutionary is it of concern to managers.
1.

True

2.

False

Global sourcing called global outsourcing refers to the practice of
purchasing materials or labour from around the world wherever it is
cheapest.
1.

True

2.

False

Shareholders are defined as any constituency in the organization's
external environment that may be affected by the organization's decisions
and actions.
1.

True

2.

False


A command economy is one in which resources are primarily owned and
controlled by the private sector.

1.

True

2.

False

The legal-political environment is an important factor of managing in a
foreign environment.
1.

True

2.

False

The three original partners of NAFTA are Canada, the United States, and
Mexico.
1.

True

2.

False

Jim was born and raised in a country with a long-term orientation. In his
culture, leisure time is highly valued because it is a vital part of the longterm health plan for the individual.

1.

True

2.

False

The World Trade Organization was formed in 1995 and evolved from the
Maastricht Treaty, an agreement in effect since the end of World War II.
1.

True

2.

False

The European Union (EU) and the North American Free Trade Agreement
(NAFTA) have both created regional trading alliances.
1.

True

2.

False


Multidomestic corporations use one strategy for all global operations

based on the different domestic influences that are present in the firm's
original home market.
1.

True

2.

False

The symbolic view of management helps to explain the high turnover
among college and professional sports coaches, who are often fired and
replaced when their teams perform poorly.
1.

True

2.

False

People in a society that is high in uncertainty avoidance don't feel
threatened by uncertainty and experience low levels of anxiety, stress,
and aggressiveness.
1.

True

2.

False

Setting up a foreign subsidiary involves a higher degree of risk and
commitment than franchising.
1.

True

2.

False

Mercosur is a trading alliance between 10 southeast Asian nations.
1.

True

2.

False

The General Agreement on Tariffs and Trade (GATT) was signed in 1992 to
create the EU.
1.

True

2.

False