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In a capitalist economy,organizations seldom reorganize due to changing markets.

A) True
B) False

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Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.

A) True
B) False

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Transparency allows two companies to work more efficiently together.

A) True
B) False

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A weakened corporate image is one of the disadvantages of a decentralized business organization.

A) True
B) False

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A recent business trend is the elimination of layers of management,creating flatter organizations and subsequently,a wider span of control.

A) True
B) False

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One of Javier's coworkers was recently promoted to a middle management position at their company.He seems to have quickly distanced himself from Javier and their other coworker,Carlos.In fact,yesterday Carlos described the situation by saying,"He's gone to the dark side." Javier understands what Carlos means because management keeps themselves removed from other employees,and seldom seriously solicit ideas for improvements or change from those in the trenches.The disadvantage in continuing this type of organizational culture is:


A) nobody takes management seriously.
B) the company will have to look outside the firm for new managers.
C) small,incremental improvements rather than radical change will become the norm.
D) the informal organization can hinder effective management.

E) A) and B)
F) B) and C)

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Empowering employees to better serve customers requires __________ front-line employees.


A) fewer
B) less training for
C) more support for
D) uniforms for

E) A) and C)
F) None of the above

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Fayol believed that the amount of decision-making power vested in top management should be the same in all situations.

A) True
B) False

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In a line-and-staff organization,staff positions are temporary jobs to train new line managers.

A) True
B) False

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Organizations that require consistent production standards to help create a high quality public image would tend to favor:


A) centralized authority.
B) an inverted organization.
C) a high level of employee empowerment.
D) flat organizational structures.

E) C) and D)
F) None of the above

Correct Answer

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