1. A country in which an investment is made by a foreign company is termed as a(n) ________.
a. parent country
b. expatriate country
c. subordinate country
d. host country
e. home country
2. Hugh is an American citizen currently living in Denmark. He works for a company that has its
headquarters in France. He is a(n) ________.
a. host-country national
b. dual citizen
d. home-country national
e. third-country national
3. Which of the following is true for employees of multinational organizations?
a. Expatriates and third-country nationals have to be relocated and undergo training.
b. A host-country national is an organization member who lives and works in a country
where he or she does not have citizenship.
c. A third-country national works for a foreign organization in its home country.
d. A host-country national will face problems adjusting to the culture of the country in
which he works.
e. Host-country nationals are usually the most expensive to employ.
4. The ________ function of management involves determining how an organization will achieve its
5. When a United States computer manufacturer sells a shipment of 40 computers to a retailer in
Germany, the computer manufacturer is engaged in the process of ________.
a. developing a license agreement
d. direct investing
6. If a company in the United States allows a company in England to use its brand name for a fee,
the company is said to have entered into a(n) ________.
a. export agreement
b. import agreement
c. direct investing agreement
d. venture agreement
e. license agreement
7. Which of the following countries is a member of the APEC?
8. The manager of a multinational corporation in the U.S. thinks that following U.S. management
practices is best for its operations in New Zealand because U.S. management practices are
better than the management practices prevalent in New Zealand. This manager is said to have
a(n) ________ attitude.
9. The ________ organization transcends any single home country with ownership, control and
management being from many different countries.
10. The proportion of the total management system that a decision will affect is called
a. scope of the decision
b. span of control
c. level of management
d. unity of command
e. discretionary area
11. An alternative that is considered feasible for solving an existing problem and for
implementation is ________.
12. Jared recently sent an e-mail to all the members of his department asking them for their
opinions about where the department should have its quarterly team lunch. The response was
overwhelming as Jared received more than 40 suggestions. This is an example of the ________.
a. confirmation bias
b. paradox of choice
c. loss aversion effect
d. confidence bias
e. bandwagon effect
13. Which of the following is the final step in the decision-making process?
a. Select the most beneficial alternative
b. Gather feedback to find out if the problem is solved
c. Take action
d. Identify organizational objectives
e. Implement the selected alternative
14. ________ refers to the departure from rational theory that produces suboptimal decisions.
e. Bounded rationality
15. The formula for expected value (EV) is ________.
a. income x probability
b. cost of risk x probability
c. income / probability
d. cost of risk / probability
e. interest rate x probability
16. An SBU with a relatively small market share of a low-growth market is a ________.
b. low-cost leader
c. cash cow
d. question mark
17. Dun’s Burgers has decided to open takeaway counters across the city that will be open until
11 p.m. to cater to people who return late from work. This turns out to be an excellent
strategy as Dun’s becomes a hot favorite with the people who work late shifts. This is an
example of ________ strategy.
a. technology enhancement
d. cost leadership
18. ________ is the ability to provide the organizational resources necessary to implement a
a. Monitoring skill
b. Allocating skill
c. Tactical skill
d. Interacting skill
e. Organizing skill
19. ________ is the ability to create throughout the organization a network of people who can help
solve implementation problems as they occur.
a. Allocating skill
b. Tactical skill
c. Interacting skill
d. Monitoring skill
e. Organizing skill
20. ________ is short-range planning that emphasizes the current operations of various parts of
a. Tactical planning
b. Operational planning
c. Strategic planning
d. Intermediate planning
e. Strategic control
21. A ________ is a single-use plan designed to carry out a special project within the organization.
22. Planning for plant facilities and human resources are instances of ________.
a. environmental planning
b. community planning
c. system planning
d. input planning
e. process planning
23. Which scheduling tool is typically used to schedule management system inputs such as human
resources and machinery?
a. Planning sheets
b. SWOT analysis
c. Work flow diagrams
d. PERT diagrams
e. Gantt charts
24. Which of the following statements is true regarding the critical path of a PERT network?
a. It plays a negligible role in controlling the completion time of the project.
b. It is essentially a bar graph mainly used for scheduling resources.
c. It refers to the sequence of events and activities requiring the shortest period of time to
d. A delay in completing the sequences in the critical path causes no delay in completing
e. It provides an insight into how the unrealistic features of a schedule can be modified.
25. Which of the following is the fourth primary step in designing a PERT network?
a. Determining the time needed for the completion of each activity or event
b. Designing a PERT network reflecting all the information needed
c. Listing the sequence in which the activities/events have to be performed
d. Listing all the activities or events that must be accomplished for the project
e. Identifying the sequence of events and activities requiring the longest period of time
Modern Management: Concepts and Skills
Twelfth Edition, 2012
Samuel C. Certo and S. Trevis Certo
Pearson Prentice Hall