Chapter 5 planning and decision making multiple

Chapter 5 Planning and decision making
MULTIPLE CHOICE
56. Budgets are an example of ________ planning.
a. strategic
b. tactical
c. operational
d. actionable
ANS: C PTS: 1 DIF: Easy TOP: Planning from top to
bottom
57. New employees of a manufacturing company are instructed to never wear loose-
fitting clothes when working around the canning machine just in case the clothing
catches on the equipment and the employee is injured as a result. What kind of a
standing plan is described in this example?
a. Rules and regulations
b. Procedures
c. Policies
d. Organisational norms
e. Security governances
ANS: A PTS: 1 DIF: Easy TOP: Planning from top to
bottom
58. ________ is the process of choosing a solution from available alternatives.
a. Decision making
b. Problem identification
c. Heuristics
d. Multivariable selection
e. Problem solving
ANS: A PTS: 1 DIF: Easy TOP: Steps and limits to
rational decision making
59. ________ is a systematic process of defining problems, evaluating alternatives and
choosing optimal solutions.
a. Problem identification
b. Rational decision making
c. Benchmarking
d. Multivariable selection
e. Keystoning
ANS: B PTS: 1 DIF: Easy TOP: Steps and limits to
rational decision making
60. A café chain The Buzz Cup is going through a process of choosing whether they
should expand into either Chile or Peru. This process is an example of ________ to
determine how best to expand into those market.
a. intuitive conditioning
b. benchmarking
This study source was downloaded by 100000799303395 from CourseHero.com on 03-28-2022 11:44:27 GMT -05:00

c. decision making
d. organisational design
e. conditioned learning
ANS: C PTS: 1 DIF: Difficult TOP: Steps and limits to
rational decision making
61. Neither Chile nor Peru has a mass-market café culture, but that fact has not
stopped The Buzz Cup from trying to determine what can be done to make its
coffee houses successful in those markets. By recognising that people in these
two South American countries do not drink coffee like people in their home
market Australia, and that they need to change this habit, The Buzz Cup has
begun a ________ process with problem identification.
a. rational decision making
b. trend analysis
c. sacrificing
d. selection of optimal solutions
e. framing constraints
ANS: A PTS: 1 DIF: Easy TOP: Steps and limits to
rational decision making
62. The European Union encourages companies to abandon national boundaries and
offer the same products to all of the member countries. Allianz, Germany’s
largest insurance group is considering converting from a German company to a
European company. If it makes this decision rationally, it will first ________.
a. create decision criteria based on national GNPs
b. identify problems arising from tax and regulatory issues
c. decide whether to expand to one nation at a time
d. create a committee to make the final decision
e. avoid the use of bounded rationality
ANS: B PTS: 1 DIF: Moderate TOP: How to make a plan
that works
63. A ________ exists when there is a gap between a desired state (what managers
want) and an existing state (the situation that the managers are facing).