MANAGEMENT MCQS AND TRUE\FALS
Multiple Choice
1. The department in charge of recording all financial activity is the __________ department.
a) human resources
b) accounting
c) marketing
d) production
Answer: B
Difficulty level: Easy
Page: 302
Response: Accounting departments record all financial activity from billing customers to paying employees.
2. Which department actually creates the finished goods?
a) marketing
b) research
c) human resources
d) production
Answer: D
Difficulty level: Easy
Page: 304
Response: The production department actually creates finished goods and services using raw materials and personnel.
3. The __________ department handles all aspects of promotion.
a) research
b) marketing
c) production
d) accounting
Answer: B
Difficulty level: Easy
Page: 304
Response: The marketing department plans, prices, promotes, sells and distributes the organization’s goods and services.
4. This management level is responsible for monitoring the day-to-day events in an organization and taking any required corrective action.
a) supervisory
b) middle-managerial
c) stockholder
d) top-managerial
Answer: A
Difficulty level: Medium
Page: 304
Response: Supervisory management monitor the day-to-day events and takes corrective action.
5. This management level deal with control, planning and decision making.
a) supervisory
b) middle-managerial
c) stockholder
d) top-managerial
Answer: B
Difficulty level: Medium
Page: 304
Response: Middle management deal with control, planning, and decision making.
6. This management level is concerned with long-range planning for the organization.
a) supervisory
b) middle-managerial
c) stockholder
d) top-managerial
Answer: D
Difficulty level: Medium
Page: 304
Response: The top management level is concerned with the long-range planning for the organization.
7. Top managerial-level information flow is vertical, horizontal, and
a) diagonal
b) multidimensional
c) ethereal
d) external
Answer: D
Difficulty level: Medium
Page: 305
Response: Top managerial-level information flow is vertical, horizontal, and external in focus.
8. This level of management require summarized information in capsule form to reveal the overall condition of the business.
a) top management
b) middle management
c) supervisors
d) stockholders
Answer: A
Difficulty level: Medium
Page: 306
Response: Top-level management need information that is summarized in capsule form to reveal the overall condition of the business.
9. This level of management need access to information from outside the organization.
a) top management
b) middle management
c) supervisors
d) stockholders
Answer: A
Difficulty level: Medium
Page: 306
Response: Top-level management need information from outside the organization because they need to forecast and plan for long range events.
10. This level of management need summarized information such as weekly or monthly reports.
a) top management
b) middle management
c) supervisors
d) stockholders
Answer: A
Difficulty level: Medium
Page: 306
Response: Top-level management need summarized information.
11. These systems (__________) record day-to-day transactions such as customer orders, bills, inventory levels, and production output.
a) TPS
b) MIS
c) DSS
d) ESS
Answer: A
Difficulty level: Medium
Page: 307
Response: TPS record day-to-day transactions such as these.
12. These systems (__________) summarize the detailed data of the transaction processing systems in standard reports for middle-level managers.
a) CSS
b) MIS
c) DSS
d) ESS
Answer: B
Difficulty level: Medium
Page: 307
Response: MIS summarize the detailed data of the TPS in standard reports for middle-level managers.
13. Management Information Systems are used by
a) employee-level workers
b) middle management
c) supervisor-level management
d) top-level management
Answer: B
Difficulty level: Medium
Page: 307
Response: MIS are used by middle management.
14. These systems (__________) present information in a very highly summarized form.
a) TPS
b) MIS
c) DSS
d) ESS
Answer: D
Difficulty level: Medium
Page: 307
Response: ESS present information in a very highly summarized form.
15. These systems (__________) help top-level managers oversee the company’s operations and develop strategic plans.
a) TPS
b) MIS
c) DSS
d) ESS
Answer: D
Difficulty level: Medium
Page: 307
Response: ESS help top-level managers oversee the company’s operations and develop strategic plans.
16. The __________ activity records the customer requests for goods or services.
a) payroll
b) sales order processing
c) inventory
d) general ledger
Answer: B
Difficulty level: Easy
Page: 308
Response: Sales order processing records the customer requests for the company’s products or services.
17. Money collected from or owed by customers is
a) accounts payable
b) inventory
c) accounts receivable
d) sales order processing
Answer: C
Difficulty level: Easy
Page: 308
Response: Accounts receivable records money received from or owed by customers.
18. The __________ control system keeps records of the number of each kind of part or finished good in the warehouse.
a) payroll
b) inventory
c) sales order processing
d) general ledger
Answer: B
Difficulty level: Medium
Page: 308
Response: Inventory control system keeps records of the number of each kind of part or finished good in the warehouse.
19. The buying of goods and services is referred to as
a) sales order processing
b) accounts receivable
c) inventory
d) purchasing
Answer: D
Difficulty level: Easy
Page: 308
Response: Purchasing relates to the buying of goods and services.
20. The money that the company owes for goods or services is handled by
a) accounts receivable
b) inventory
c) sales order processing
d) accounts payable
Answer: D
Difficulty level: Medium
Page: 308
Response: Accounts payable refers to money the company owes its suppliers for materials and services it has received.
21. The __________ activity is concerned with calculating employees’ paychecks.
a) payroll
b) general ledger
c) accounts payable
d) sales order processing
Answer: A
Difficulty level: Easy
Page: 308
Response: Payroll is concerned with calculating employee paychecks.
22. The __________ is the summary of all foregoing transactions.
a) inventory
b) general ledger
c) sales order processing
d) accounts payable
Answer: B
Difficulty level: Easy
Page: 309
Response: General ledger keeps track of all summaries of all the foregoing transactions.
23. The __________ shows a company’s financial performance.
a) general ledger
b) balance sheet
c) income statement
d) statement of cash flows
Answer: C
Difficulty level: Medium
Page: 308
Response: The income statement shows the company’s financial performance.
24. The overall financial condition of the organization is listed in the
a) income statement
b) profit and loss statement
c) balance sheet
d) statement of cash flows
Answer: C
Difficulty level: Medium
Page: 309
Response: The balance sheet lists the overall financial condition of an organization.
25. Management information systems produce reports that are
a) predetermined
b) encrypted
c) graphically simplified
d) dynamic
Answer: A
Difficulty level: Medium
Page: 310
Response: MIS produce reports that are predetermined.
26. __________ reports are produced at regular intervals.
a) Management
b) Periodic
c) Exception
d) Demand
Answer: B
Difficulty level: Medium
Page: 310
Response: Periodic reports are produced at regular intervals – weekly, monthly, or quarterly.
27. When sales reports are combined into monthly reports for the regional sales manager, they are said to be
a) management reports
b) periodic reports
c) exception reports
d) demand reports
Answer: B
Difficulty level: Medium
Page: 310
Response: This type of report is an example of a periodic report.
28. A sales report that shows that certain items are selling significantly above or below marketing department forecasts is an example of this type of report.
a) periodic
b) demand
c) inventory
d) exception
Answer: D
Difficulty level: Medium
Page: 310
Response: Exception reports call attention to unusual events.
29. These types of systems would most likely be used to assist a manager in getting answers to unexpected and generally nonrecurring kinds of problems.
a) TPS
b) MIS
c) DSS
d) ESS
Answer: C
Difficulty level: Medium
Page: 310
Response: DSS enable managers to get information in these situations.
30. Which of the following refers to a decision-making support system for teams?
a) TPS
b) GDSS
c) ESS
d) MIS
Answer: B
Difficulty level: Medium
Page: 310
Response: GDSS are used to support collective work.
31. In a GDSS, the __________ is generally a decision-maker.
a) programmer
b) technician
c) user
d) client
Answer: C
Difficulty level: Medium
Page: 311
Response: The user is someone who has to make decisions – a manager, often a middle-level manager.
32. The basic information that makes up a GDSS is called the
a) system software
b) user
c) decision model
d) data
Answer: D
Difficulty level: Medium
Page: 311
Response: Data in the DSS make up a group decision support system.
33. Data from within the organization consist principally of transactions from the
a) TPS
b) MIS
c) ESS
d) accounts receivable
Answer: A
Difficulty level: Medium
Page: 311
Response: Internal data consist primarily of data from the TPS.
34. This management level control the work of the organization, such as financial planning and sales promotion planning.
a) strategic level managers
b) corporate stock holders
c) tactical level mangers
d) operational level managers
Answer: C
Difficulty level: Medium
Page: 311
Response: Tactical level managers are concerned with controlling the work of the organization, such as financial planning and sales promotion planning.
35. This management level are responsible for accomplishing the organization’s day-to-day activities.
a) strategic level managers
b) corporate stock holders
c) tactical level mangers
d) operational level managers
Answer: D
Difficulty level: Medium
Page: 311
Response: Operational managers accomplish the organization’s day-to-day activities.
36. Which component gives a GDSS its decision-making capabilities?
a) user
b) data
c) decision model
d) system software
Answer: C
Difficulty level: Medium
Page: 311
Response: Decision models give the DSS its analytical capabilities.
37. These systems permit a firm’s top executives to gain direct access to information about the company’s performance.
a) TPS
b) MIS
c) ESS
d) DSS
Answer: C
Difficulty level: Medium
Page: 313
Response: ESS permit a firm’s top executives to gain direct access to information about the company’s performance.
38. These systems often present summary information in graphical format.
a) TPS
b) DSS
c) MIS
d) ESS
Answer: D
Difficulty level: Medium
Page: 313
Response: ESS often display information in graphical form.
39. __________ workers distribute, communicate, and create information.
a) White collar
b) Data mine
c) Information
d) Organization
Answer: C
Difficulty level: Medium
Page: 313
Response: Information workers distribute, communicate, and create information.
40. Employees involved with the distribution and communication of information are called
a) managers
b) data workers
c) IT staff
d) knowledge workers
Answer: B
Difficulty level: Medium
Page: 313
Response: Data workers are involved with the distribution and communication of information.
41. Employees who create information are called
a) managers
b) data workers
c) IT staff
d) knowledge workers
Answer: D
Difficulty level: Medium
Page: 313
Response: Knowledge workers are involved with the creation of information.
42. __________ systems focus on managing documents, communicating, and scheduling.
a) Office automation
b) Transaction processing
c) Knowledge work
d) Executive support
Answer: A
Difficulty level: Medium
Page: 314
Response: OAS focus on managing documents, communicating, and scheduling.
43. These systems are computer systems that allow people located at various locations to communicate and have in-person meetings.
a) project managers
b) videoconferencing
c) telemarketing
d) data conferencing
Answer: B
Difficulty level: Medium
Page: 314
Response: Videoconferencing systems are computer systems that allow people located at various geographic locations to communicate and have in-person meetings.
44. Which of the following is an example of a knowledge work system?
a) project manager
b) Web server
c) Videoconferencing system
d) CAD/CAM
Answer: D
Difficulty level: Medium
Page: 314
Response: CAD/CAMs are examples of knowledge work systems.
45. CAD/CAM would be most useful in what industry?
a) motion picture
b) automobile manufacturing
c) food service
d) retail
Answer: B
Difficulty level: Medium
Page: 314
Response: CAD/CAM would be most useful in the automobile manufacturing industry.
True/False
46. The accounting department records all financial transactions.
Answer: True
Difficulty level: Easy
Page: 302
Response: Accounting departments record all financial activity from billing customers to paying employees.
47. The marketing department identifies, investigates, and develops new products and services.
Answer: False
Difficulty level: Easy
Page: 304
Response: The marketing department plans, prices, promotes, sells, and distributes the organization’s good and services.
48. The human resources department manages the hiring, firing, and training of a company’s personnel.
Answer: True
Difficulty level: Easy
Page: 304
Response: The HR department manages the people.
49. The research department handles all aspects of promotion.
Answer: False
Difficulty level: Easy
Page: 304
Response: The research department identifies, investigates, and develops new products and services.
50. The production department creates the finished goods.
Answer: True
Difficulty level: Easy
Page: 304
Response: The production department actually creates the finished goods and services.
51. Supervisor-level management deals with control, planning and decision making.
Answer: False
Difficulty level: Medium
Page: 304
Response: Supervisor-level managers manage and monitor the employees or workers who actually produce the goods and services.
52. Middle management monitor day-to-day operations.
Answer: False
Difficulty level: Easy
Page: 304
Response: Supervisors monitor day-to-day operations.
53. Top managerial-level information flow is predominately vertical.
Answer: False
Difficulty level: Medium
Page: 305
Response: Top managerial-level information flow is horizontal, vertical, and external.
54. Middle-managerial level information flow is both vertical and horizontal.
Answer: True
Difficulty level: Medium
Page: 305
Response: Middle-managerial level information flow is both vertical and horizontal.
55. The transaction processing system relies on information provided by the management information system.
Answer: False
Difficulty level: Medium
Page: 307
Response: TPS record the day-to-day transactions in the operation of the business.
56. The decision support system combines internal and external information to help analyze a wide range of problems.
Answer: True
Difficulty level: Medium
Page: 307
Response: DSS combine internal and external information to help analyze a wide range of problems.
57. A weekly production schedule is one report likely to be generated from a management information system.
Answer: True
Difficulty level: Medium
Page: 310
Response: A weekly production report is a periodic report that would be generated from a MIS system.
58. “ESS” stands for Executive Simplified Summary.
Answer: False
Difficulty level: Easy
Page: 312
Response: ESS is an acronym for executive support system.
59. Executive support systems are designed to be easy to use.
Answer: True
Difficulty level: Medium
Page: 312
Response: ESS are designed to be easily used by top-level managers.
60. The sales order processing activity records the customer requests for goods or services.
Answer: True
Difficulty level: Easy
Page: 308
Response: Sales order processing records the customer requests for the company’s products or services.
61. The accounts receivable activity records money received from or owed by customers.
Answer: True
Difficulty level: Easy
Page: 308
Response: Accounts receivable records money received from or owed by customers.
62. The parts and finished goods that a company has in stock are called surplus.
Answer: False
Difficulty level: Medium
Page: 308
Response: Parts or finished goods are called inventory.
63. Purchasing is the buying of materials and services.
Answer: True
Difficulty level: Easy
Page: 308
Response: Purchasing is the buying of materials and services.
64. Accounts payable is concerned with calculating employee paychecks.
Answer: False
Difficulty level: Easy
Page: 308
Response: Accounts payable refers to money the company owes its suppliers for materials and services it has received.
65. The general ledger refers to money the company owes.
Answer: False
Difficulty level: Easy
Page: 309
Response: The general ledger keeps track of all summaries of all the foregoing transactions.
66. Income statements show a company’s financial performance.
Answer: True
Difficulty level: Easy
Page: 309
Response: Income statements show a company’s financial performance.
67. A balance sheet is an example of a demand report.
Answer: False
Difficulty level: Easy
Page: 309
Response: Balance sheets list the overall financial condition of an organization.
68. A periodic report is created at set intervals.
Answer: True
Difficulty level: Easy
Page: 310
Response: Periodic reports are produced at regular intervals.
69. An exception report calls attention to unusual events.
Answer: True
Difficulty level: Easy
Page: 310
Response: An exception report calls attention to unusual events.
70. Team decisions can be facilitated by the use of a GDSS.
Answer: True
Difficulty level: Medium
Page: 310
Response: Group decision support systems (GDSS) facilitate team decisions.
71. In general, the user of a GDSS is some sort of decision maker.
Answer: True
Difficulty level: Medium
Page: 310
Response: In general, the user of a GDSS is taking some decision-making role.
72. The system software provides a GDSS with its decision-making capabilities.
Answer: False
Difficulty level: Medium
Page: 310
Response: In a GDSS the user has the decision-making capabilities.
73. The data component of a GDSS is stored in the system software.
Answer: False
Difficulty level: Hard
Page: 310
Response: The data component is stored in a database.
74. There are three basic decision models used in a GDSS: operational, strategic, and financial.
Answer: False
Difficulty level: Hard
Page: 311
Response: Decision models are strategic, tactical, and operational.
75. Top-level management are most concerned with strategic planning.
Answer: True
Difficulty level: Easy
Page: 311
Response: Top-level management are concerned with strategic planning for the organization.
76. The strategic decision model assists in long-range planning.
Answer: True
Difficulty level: Easy
Page: 311
Response: Strategic decision model certainly assists in long-range planning.
77. The operation decision model helps to accomplish the organization’s day-to-day activities.
Answer: True
Difficulty level: Easy
Page: 311
Response: Operation decision model helps the organization in day-to-day activities.
78. Employees who distribute, create, and communicate information are called e-workers.
Answer: False
Difficulty level: Easy
Page: 313
Response: Employees are known as knowledge workers.
79. Knowledge workers create information.
Answer: True
Difficulty level: Easy
Page: 313
Response: Knowledge workers are involved with the creation of information.
80. An office automation system consists of multifunctional robots.
Answer: False
Difficulty level: Easy
Page: 314
Response: Office automation systems consist of data workers.
81. Knowledge workers use specialized information systems called KWS to create information in their area of expertise.
Answer: True
Difficulty level: Hard
Page: 314
Response: Knowledge workers use KWS to create information in their area of expertise.
82. CAD/CAM systems allow people located at various locations to have “in-person” meetings.
Answer: False
Difficulty level: Easy
Page: 314
Response: Videoconferencing systems allow people located at various geographic locations to communicate and have in-person meetings.
83. CAD/CAM systems use powerful microcomputers running special programs that integrate the design and manufacturing activities.
Answer: True
Difficulty level: Easy
Page: 314
Response: CAD/CAM systems require powerful microcomputers running special programs that integrate design and manufacturing activities.
84. Videoconferencing systems allow people located at various locations to have “in-person” meetings.
Answer: True
Difficulty level: Easy
Page: 314
Response: Videoconferencing systems allow people located at various geographic locations to communicate and have in-person meetings.
85. CAD/CAM systems are widely used in the processing of perishable products.
Answer: False
Difficulty level: Easy
Page: 314
Response: CAD/CAM systems are widely used in manufacturing of automobiles and other products.
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