All Organizations Have Two Organizational Systems

Question: Organizing a business begins with:

  1. acquiring the necessary resources.

  2. B. choosing the best qualified employees.

  3. C. developing an efficient plan of action.

  4. D. determining the work to be done.

  5. Answer: D

  6. Question: 223. Dividing the required work among a group of employees is called:

  8. A. departmentalization.

  9. B. delegation of responsibility.

  10. C. division of labor.

  11. D. separation of control.

  12. Answer: C

  13. Question: 225. The process of setting up individual functional units of the business to do specialized tasks is called:

  15. A. departmentalization.

  16. B. division of labor.

  17. C. job specialization.

  18. D. delegation of authority.

  19. Answer: A

  20. Question: 226. Job specialization is known to:

  22. A. minimize delegated authority and responsibility.

  23. B. improve job performance.

  24. C. create work teams and improve resource allocation.

  25. D. establish procedures.

  26. Answer: B

  27. Question:

  28. Answer: A

  29. Question: 232. The concept of ____________ suggests that as a firm produces more, the average cost of goods produced goes down.

  31. A. natural growth

  32. B. survival of the fittest

  33. C. cost enhancement

  34. D. economies of scale

  35. Answer: D

  36. Question: 233. Henri Fayol and Max Weber are best known for their contributions to:

  38. A. production theory.

  39. B. marketing theory.

  40. C. organization theory.

  41. D. finance theory.

  42. Answer: C

  43. Question:

  44. Answer: A

  45. Question: 235. Fayol’s _____________ principle states that each worker should report to one, and only one, boss.

  47. A. division of labor

  48. B. unity of command

  49. C. esprit de corps

  50. D. comparative advantage

  51. Answer: B

  52. Question: 237. Fayol’s ____________ principle says that workers’ attitudes can create an environment of pride and loyalty within an organization.

  54. A. esprit de corps

  55. B. hierarchy of loyalty

  56. C. unity of command

  57. D. equity

  58. Answer: A

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