Chapter 11: Organization Structures and Design PDF

Schermerhorn & Bachrach / Management, 13th edition Test Bank Chapter 11: Organization Structures and Design True/False 1. An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link toget...

Schermerhorn & Bachrach / Management, 13th edition Test Bank Chapter 11: Organization Structures and Design True/False 1. An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups. Answer: True Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 2. An organization chart includes major subunits in which positions reporting to a common manager are shown. Answer: True Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 3. A social network analysis is a tool that identifies formal structures and their social relationships. Answer: False Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-1 Schermerhorn & Bachrach / Management, 13th edition Test Bank 4. Informal networks are sources of emotional support and friendship that satisfy members’ social needs. Answer: True Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 5. In a functional structure, people working on the same product, in the same area, with similar customers, or on the same processes, are grouped together. Answer: False Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 6. Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited. Answer: True Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 7. In a functional structure, the functions become formalized not only on the organization chart, but also in the mind-sets of people. Answer: True Learning Objective: 11.2 Copyright © 2015 John Wiley & Sons, Inc. 11-2 Schermerhorn & Bachrach / Management, 13th edition Test Bank Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 8. One of the disadvantages of functional structures is that employees lack a clear career path within functions. Answer: False Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 9. Divisional structures are common in organizations dealing with only one or a few products or services. Answer: False Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 10. A product structure prompts managers to be responsive to changing market demands and customer tastes. Answer: True Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-3 Schermerhorn & Bachrach / Management, 13th edition Test Bank 11. Geographical structures are typically used when there is a need to differentiate products or services in various locations, such as in different parts of a country. Answer: True Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 12. A customer structure is the least common structure in the consumer products industry. Answer: False Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 13. A divisional structure is characterized by reduced coordination across functional departments. Answer: False Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 14. Divisional structures can create unhealthy rivalries as divisions compete for resources and top management attention. Answer: True Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Copyright © 2015 John Wiley & Sons, Inc. 11-4 Schermerhorn & Bachrach / Management, 13th edition Test Bank Bloom’s Taxonomy: Knowledge 15. Workers in a matrix structure are allowed to be part of only one formal group at a time. Answer: False Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 16. Workers in a matrix structure report to two supervisors—one within the function and the other within the team. Answer: True Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 17. A matrix structure is characterized by poor customer service. Answer: False Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 18. In a matrix structure, top managers are freed from lower-level problem solving to focus time on more strategic issues. Answer: True Copyright © 2015 John Wiley & Sons, Inc. 11-5 Schermerhorn & Bachrach / Management, 13th edition Test Bank Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 19. Team meetings in matrix structures are short and quick. Answer: False Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 20. Organizations with team structures make extensive use of both permanent and temporary teams to solve problems, complete special projects, and accomplish day- to-day tasks. Answer: True Learning Objective: 11.3 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 21. Project teams are permanent in nature and cannot be disbanded. Answer: False Learning Objective: 11.3 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-6 Schermerhorn & Bachrach / Management, 13th edition Test Bank 22. Supplier strategic alliances link businesses in preferred supplier–customer relationships that guarantee a smooth and timely flow of quality supplies among the partners. Answer: True Learning Objective: 11.3 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 23. Network structures result in increasing overhead and reducing operating efficiency. Answer: False Learning Objective: 11.3 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 24. Empowerment refers to letting others make decisions and exercise discretion in their work. Answer: True Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 25. In a virtual organization, when the work is complete, the alliance rests until next called into action. Answer: True Learning Objective: 11.3 Difficulty: Easy AACSB: Analytical thinking Copyright © 2015 John Wiley & Sons, Inc. 11-7 Schermerhorn & Bachrach / Management, 13th edition Test Bank Bloom’s Taxonomy: Knowledge Multiple Choice 26. An organization structure refers to: A. a relationship between two or more firms to meet a particular business need. B. the group of employees who perform jobs together in the same location. C. the network of employees in a particular team. D. a system of tasks, reporting relationships, and communication linkages. E. a cooperation agreement with another organization to jointly pursue activities of mutual interest. Answer: D Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 27. Sara’s job includes dividing up the work and assigning tasks to each employee. She identifies people responsible for each task, decides the reporting structure, and decides employees’ work relationships. Sarah is a part of the _____ team in her company. A. financing B. sourcing C. controlling D. decentralizing E. organizing Answer: E Learning Objective: 11.1 Difficulty: Moderate AACSB: Application of knowledge Bloom’s Taxonomy: Application Copyright © 2015 John Wiley & Sons, Inc. 11-8 Schermerhorn & Bachrach / Management, 13th edition Test Bank 28. In an organizational structure, division of work refers to: A. lines that show who reports to whom. B. positions and titles that show work responsibilities. C. the vertical layers of management. D. lines that show formal communication flows. E. positions that report to a common manager. Answer: B Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 29. Which of the following are included in the basics of a formal organizational structure? A. Communication channels B. Friendship cliques C. Social relationships D. Grapevine structures E. Sources of emotional support Answer: A Learning Objective: 11.1 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension 30. In an organizational structure, major subunits refer to: A. positions and titles that show work responsibilities. B. lines that show who reports to whom. C. positions that report to a common manager. D. lines that show how formal communication flows. E. the vertical layers of management. Copyright © 2015 John Wiley & Sons, Inc. 11-9 Schermerhorn & Bachrach / Management, 13th edition Test Bank Answer: C Learning Objective: 11.1 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 31. Which of the following is true of a formal structure? A. Formal structures work only in organizations with diverse operations that extend across many products, customers, and work processes. B. The lines of the formal structure cut across levels and move from side to side. C. Formal structures are characterized by the existence of “in” and “out” groups. D. Lines in a formal structure are drawn from person to person according to frequency and type of relationship maintained. E. A formal structure consists of vertical layers of management. Answer: E Learning Objective: 11.1 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 32. Which of the following is true of informal structures? A. They represent supervisory relationships. B. They help in preventing the occurrence of rumors. C. They are sources of emotional support and friendship. D. They show the vertical layers of management. E. They are characterized by the presence of major subunits. Answer: C Learning Objective: 11.1 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-10 Schermerhorn & Bachrach / Management, 13th edition Test Bank 33. Which of the following asks people to identify others to whom they turn for help most often, with whom they communicate regularly, and who gives them energy and motivation? A. Social network analysis B. Formal structures C. Forces analysis D. SWOT analysis E. Four corners model Answer: A Learning Objective: 11.1 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension 34. Which of the following is a disadvantage of informal structures? A. They are characterized by too many vertical layers of management. B. They are typified by the presence of complex formal communication flows. C. They have very centralized systems that restrict employee freedom. D. They are characterized by the existence of “in” and “out” groups. E. They discourage informal learning as people work and interact together throughout the workday. Answer: D Learning Objective: 11.1 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension 35. A _____ structure groups together people with similar skills who perform similar tasks. A. product B. divisional C. geographical D. customer E. functional Copyright © 2015 John Wiley & Sons, Inc. 11-11 Schermerhorn & Bachrach / Management, 13th edition Test Bank Answer: E Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 36. Fredent Corporation, an apparel manufacturer, creates groups of employees with similar skills performing similar tasks. Members of each such group share technical knowledge, skills, and responsibilities. Which of the following structures is being used by Fredent Corporation? A. Product structure B. Divisional structure C. Functional structure D. Geographical structure E. Customer structure Answer: C Learning Objective: 11.2 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 37. Which of the following is true of a functional structure? A. It is characterized by low-quality technical problem solving. B. It consists of task assignments consistent with expertise and training. C. It does not have the advantage of economies of scale. D. It is common in complex organizations with diverse operations. E. It is the ideal structure when there is a need to differentiate products or services in various locations. Answer: B Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension Copyright © 2015 John Wiley & Sons, Inc. 11-12 Schermerhorn & Bachrach / Management, 13th edition Test Bank 38. Which of the following is an advantage of a functional structure? A. Economies of scale with efficient use of resources B. Improved coordination across functional departments C. Establishment of a sense of common purpose D. Clear points of responsibility for product or service delivery E. Expertise focused on specific customers, products, and regions Answer: A Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension 39. A _____ groups together people working on the same product, in the same area, with similar customers, or on the same processes. A. functional structure B. silos structure C. divisional structure D. vertical structure E. matrix structure Answer: C Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 40. Which of the following is true of a divisional structure? A. It is common in organizations dealing with only one or a few products or services. B. It tends to work best in relatively stable environments where problems are predictable. C. Its main focus is to put together people within the same expertise and help them work together. Copyright © 2015 John Wiley & Sons, Inc. 11-13 Schermerhorn & Bachrach / Management, 13th edition Test Bank D. It is an attempt to gain the advantages and minimize the disadvantages of the matrix structure. E. It overcomes the disadvantages of a functional structure, such as the functional chimneys problem. Answer: E Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 41. Rezter Group, a consumer goods company, owns several brands that produce different goods. Each brand is focused on a single consumer good and has a separate chief executive who is responsible for the manufacturing, sales, costs, profits, and losses of his or her brand. This implies that each brand at Rezter Group is applying a _____ structure in the organization. A. geographical B. product C. customer D. functional E. process Answer: B Learning Objective: 11.2 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 42. Which of the following is true of a product structure? A. It groups together jobs and activities being performed in the same location. B. It is used when there is a need to differentiate products or services in various locations. C. It groups together jobs and activities that are serving the same customers or clients. D. It clearly links costs, profits, problems, and successes in a market area with a central point of accountability. E. It helps focus attention on the unique cultures and requirements of different nations. Copyright © 2015 John Wiley & Sons, Inc. 11-14 Schermerhorn & Bachrach / Management, 13th edition Test Bank Answer: D Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 43. Slice-It Inc., a fast food organization operating in many countries, varies its menus in different countries according to local tastes and preferences. It groups together employees and tasks working in the same location. Which of the following structures is Slice-It Inc. using? A. Geographical structure B. Product structure C. Customer structure D. Functional structure E. Process structure Answer: A Learning Objective: 11.2 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 44. Which of the following is true about the geographical structure? A. It helps focus attention on the unique cultures and requirements of particular regions. B. Under this structure, jobs and activities are grouped together based on preferences of similar clients. C. It groups together jobs and activities that are part of the same processes. D. It groups together people with similar skills who perform similar tasks. E. Under this structure, each product division is given a chief executive who is responsible for its own profits and losses. Answer: A Learning Objective: 11.2 Difficulty: Moderate Copyright © 2015 John Wiley & Sons, Inc. 11-15 Schermerhorn & Bachrach / Management, 13th edition Test Bank AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 45. Amethyst Inc.’s organizational structure combines jobs that serve clients based on factors such as their ages, tastes, and preferences. Which of the following organizational structures exists at Amethyst Inc.? A. Geographical structure B. Product structure C. Customer structure D. Functional structure E. Process structure Answer: C Learning Objective: 11.2 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 46. An order fulfillment by a catalog retailer, a procedure that takes an order from point of initiation by the customer to point of fulfilment by a delivered product is an example of a _____. A. operational chimney B. functional silo C. directional array D. work process E. strategic alliance Answer: D Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension Copyright © 2015 John Wiley & Sons, Inc. 11-16 Schermerhorn & Bachrach / Management, 13th edition Test Bank 47. Employees who are involved in designing, engineering, and preparing models are grouped together at Zener Inc. Further, employees who engage in public relations, sales promotion, advertising, and direct marketing are put together in another team. Which of the following structures exists at Zener Inc.? A. Geographical structure B. Product structure C. Customer structure D. Client structure E. Process structure Answer: E Learning Objective: 11.2 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 48. Which of the following is an advantage of a divisional structure? A. Expertise focused on specific customers, products, and regions B. Economies of scale with efficient use of resources C. Reduced costs because of common resources and efforts across divisions D. Emphasis on the goals of the organization as a whole E. No scope for unhealthy rivalries within the organization Answer: A Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 49. Which of the following is a disadvantage of divisional structures? A. There is reduced flexibility in adding, removing, or changing operations to meet changing demands. B. They increase costs through the duplication of resources and efforts across divisions. C. They reduce the level of coordination across functional departments. D. They make it impossible to focus on specific customers, products, and regions. Copyright © 2015 John Wiley & Sons, Inc. 11-17 Schermerhorn & Bachrach / Management, 13th edition Test Bank E. They require the deletion of divisions in an organization. Answer: B Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 50. Which of the following is true of a matrix structure? A. Workers in a matrix structure are allowed to be part of only one team at a time. B. A matrix structures does not have the ability to be flexible while dealing with regional differences. C. It is accomplished by creating permanent teams that cut across functions to support specific products, projects, or programs. D. A matrix structure is made up of temporary teams that are disbanded after each project. E. A matrix structure involves top management in lower-level problem solving. Answer: C Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension 51. Which of the following is an advantage of a matrix structure? A. Improved strategic management B. No scope for issues such as “groupitis” across teams C. Clearly defined tasks and no conflict in work priorities D. No power struggles across teams E. Fast and effective team meetings Answer: A Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-18 Schermerhorn & Bachrach / Management, 13th edition Test Bank 52. Which of the following is a disadvantage of a matrix structure? A. The requirement of adding the team leaders to a matrix structure can result in higher costs. B. A matrix structure results in reduced performance accountability through the program, product, or project managers. C. Matrix structures are associated with very poor customer service. D. A matrix structure stresses that top managers must engage in both lower-level problem as well as more strategic issues. E. Matrix structures lead to reduced flexibility in adding, removing, or changing operations to meet changing demands. Answer: A Learning Objective: 11.2 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 53. Which of the following is true about a team structure? A. A temporary team does not have prominence in a team structure. B. A team structure is most often observed in a vertical organization. C. The intention of a team structure is to create more effective lateral relations around and across the organization. D. In a team structure, cross-functional structures are convened for a particular task or project and disbanded once the task is completed. E. The main focus of a team structure is to improve and maintain the hierarchical system of management. Answer: C Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-19 Schermerhorn & Bachrach / Management, 13th edition Test Bank 54. Which of the following is a horizontal structure that brings together members from different departments such as marketing, production, and accounting? A. Divisional structure B. Functional structure C. Cross-functional team D. Process structure E. Product-oriented team Answer: C Learning Objective: 11.3 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 55. Which of the following is true of a project team? A. Project teams are examples of traditional vertical structures. B. Project teams are characterized by a lack of communication and coordination across functions. C. Project teams are informal structures that group together jobs and activities focused on a single product or service. D. Project teams are temporary and disband once the task is completed. E. Project teams are created at the beginning of a project and cannot be disbanded as they are retained for future projects. Answer: D Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 56. Which of the following is a limitation of having a team structure? A. The total time spent together in a team meeting is not productive. B. A team structure is associated with poor performance. C. Project teams are informal structures that group together jobs and activities focused on a single product or service. Copyright © 2015 John Wiley & Sons, Inc. 11-20 Schermerhorn & Bachrach / Management, 13th edition Test Bank D. People working in a team structure often experience a reduced sense of identification. E. A team structure is not very effective at mobilizing talents. Answer: A Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 57. A _____ structure has a central core of full-time employees surrounded by outside contractors and partners that supply essential services. A. functional B. divisional C. team D. network E. matrix Answer: D Learning Objective: 11.3 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 58. A network structure helps lower costs and improves flexibility in dealing with changing environments because: A. it brings together members from different functional departments in the organization. B. the central core is relatively small and the surrounding networks can be expanded or shrunk as needed. C. the central core consists of temporary employees and focuses on cross-functional teams to improve lateral relations. D. it has vertical levels of management and hierarchical levels of authority. E. the central core is relatively big, and that provides the advantage of economies of scale. Copyright © 2015 John Wiley & Sons, Inc. 11-21 Schermerhorn & Bachrach / Management, 13th edition Test Bank Answer: B Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension 59. Which of the following is true about a network structure? A. It does everything for itself with full-time employees. B. It consists of networks that are composed of full-time employees. C. It groups jobs and activities that are part of the same processes. D. It consists of a relatively small central core that results in an increase in costs. E. It employs a minimum staff and contracts out as much work as possible. Answer: E Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 60. Zack Books Ltd., an international library headquartered in Alabama, has many branches across different countries. It uses information technology to be in regular contact with its various outside suppliers of books and magazines. Which of the following organizational structures is being used by the library? A. Functional structure B. Network structure C. Divisional structure D. Team structure E. Matrix structure Answer: B Learning Objective: 11.3 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application Copyright © 2015 John Wiley & Sons, Inc. 11-22 Schermerhorn & Bachrach / Management, 13th edition Test Bank 61. A strategic alliance is a(n): A. contract that brings together members from different functional departments in an organization. B. cooperation agreement with another organization to jointly pursue activities of mutual interest. C. organizational structure that combines the functional and divisional structures. D. set-up that eliminates internal boundaries among subsystems and external boundaries with the external environment. E. arrangement that emphasizes formal authority, order, fairness, and efficiency. Answer: B Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 62. Feast-It Inc., a fast food corporation, entered into an agreement with Spark Inc., a company that manufactures cheese, mayonnaise, and other toppings. Feast-It Inc. exclusively uses the toppings produced by Spark Inc. This business agreement has resulted in benefits for both the companies. This is an example of a _____. A. boundaryless organization B. joint venture C. cross-functional team D. co-operative structure E. strategic alliance Answer: E Learning Objective: 11.3 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 63. Delix Juices Co., well-known for its fruit juices with catchy names, has recently signed an agreement with Finred Books Ltd. According to this agreement, Delix Juices Co. has an outlet at each Finred store. This agreement has led to an increase Copyright © 2015 John Wiley & Sons, Inc. 11-23 Schermerhorn & Bachrach / Management, 13th edition Test Bank in profits for both the companies as sales of both have increased. This is an example of a _____. A. boundaryless organization B. joint venture C. cross-functional team D. strategic alliance E. co-operative structure Answer: D Learning Objective: 11.3 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 64. Which of the following is an advantage of a network structure? A. Network structures are lean and streamlined. B. If one part of the network breaks down or fails to deliver, the other parts of the network will continue working. C. A network structure is characterized by technology that enables the organization to have control over activities contracted out. D. A network structure has an efficient vertical management system. E. Network structures have a relatively large central core that gives them stability. Answer: A Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 65. Which of the following is a disadvantage of network structures? A. The central core of network structures is relatively small and the surrounding networks tend to expand or shrink continuously. B. There is a potential to experience a lack of loyalty among contractors who are used infrequently. C. A network structure is characterized by lack of flexibility which leads to problems while dealing with changing environments. Copyright © 2015 John Wiley & Sons, Inc. 11-24 Schermerhorn & Bachrach / Management, 13th edition Test Bank D. Network structures are broad and complex. E. Network structures tend to increase overheads of an organization and reduce its operating efficiency. Answer: B Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 66. Which of the following is true of a boundaryless organization? A. Internal to the boundaryless organization, formal lines of authority replace spontaneous teamwork and communication. B. A boundaryless organization does not encourage continuous meetings and information sharing. C. A boundaryless organization is characterized by significant hierarchy. D. Impermanence is not accepted in boundaryless organizations. E. In a boundaryless organization, people work together in teams that form and disband as needed. Answer: E Learning Objective: 11.3 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 67. A _____ uses IT and the Internet to engage a shifting network of strategic alliances. A. formal structure B. project team C. virtual organization D. bureaucratic structure E. matrix organization Answer: C Learning Objective: 11.3 Difficulty: Easy Copyright © 2015 John Wiley & Sons, Inc. 11-25 Schermerhorn & Bachrach / Management, 13th edition Test Bank AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 68. Brandon & Sons Inc., a well-established electronics company, uses IT and the Internet to enter into business alliances with software firms spread across different nations to meet specific operating needs and objectives. Once the work is completed, the alliance rests until next called into action. Brandon & Sons Inc. is a _____. A. cross-functional team B. project team C. virtual organization D. cross-functional team E. formal organization Answer: C Learning Objective: 11.3 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 69. An organizational design: A. is the process of creating structures that accomplish mission and objectives. B. is a system of tasks, reporting relationships, and communication linkages. C. is a group of related tasks that collectively creates a valuable work product. D. identifies the informal structures and their embedded social relationships that are active in an organization. E. is a cooperation agreement with another organization to jointly pursue activities of mutual interest. Answer: A Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-26 Schermerhorn & Bachrach / Management, 13th edition Test Bank 70. The best organizational design is the one that: A. emphasizes formal authority, order, fairness, and efficiency. B. is centralized, with many rules and procedures, a clear-cut division of labor, narrow spans of control, and formal coordination. C. emphasizes a vertical structure, hierarchy of authority, and promotion based on competency. D. achieves a good match between structure and situational contingencies. E. has narrow spans of control and structures of the pyramid form. Answer: D Learning Objective: 11.4 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 71. Which of the following implies that an organizational design of the same kind does not apply in all circumstances? A. Every organization emphasizes formal authority, order, fairness, and efficiency. B. Every organization faces its own set of unique problems and opportunities. C. All organizations are not affected by situational contingencies such as task, technology, environment, and people. D. Every organization has narrow spans of control and structures of the traditional pyramid form. E. All organizations have sufficient resources to jointly pursue mutual interests with another organization. Answer: B Learning Objective: 11.4 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Comprehension 72. Which of the following emphasizes formal authority, order, fairness, and efficiency? A. Bureaucracy Copyright © 2015 John Wiley & Sons, Inc. 11-27 Schermerhorn & Bachrach / Management, 13th edition Test Bank B. Boundaryless organization C. Decentralization D. Strategic business unit E. Strategic alliance Answer: A Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 73. Which of the following is true of a bureaucracy? A. It is characterized by open divisions of labor. B. It encourages worker empowerment and teamwork. C. It is built on a foundation of trust that people will do the right things on their own initiative. D. It is a vertical structure with promotion based on competency. E. It performs well in environments that demand flexibility in dealing with changing conditions. Answer: D Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 74. LMZ Inc. functions with systematic order and a hierarchical system of management. It is characterized by formal channels of communication. The employees of the firm are required to strictly abide by the formal rules of the company. LMZ Inc. is a(n) _____. A. adaptive organization B. bureaucracy C. decentralized organization D. boundaryless organization E. autocracy Copyright © 2015 John Wiley & Sons, Inc. 11-28 Schermerhorn & Bachrach / Management, 13th edition Test Bank Answer: B Learning Objective: 11.4 Difficulty: Moderate AACSB: Application of knowledge Bloom’s Taxonomy: Application 75. Which of the following is true of a mechanistic design? A. It is a horizontal structure with decentralized authority. B. It is characterized by wide spans of control. C. It is characterized by a precise division of labor. D. It is typified by informal means of coordination. E. It is a design with very few rules and procedures. Answer: C Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 76. The staff at Grace Grocery Store is assigned specific tasks such as receiving supply, arranging stock, making sales, preparing cash registers, and so on. They perform the same task every day. The firm is characterized by formal means of coordination. Grace Grocery Store is functioning with a(n) _____ design. A. organic B. decentralized C. mechanistic D. adaptive E. boundaryless Answer: C Learning Objective: 11.4 Difficulty: Moderate AACSB: Application of knowledge Bloom’s Taxonomy: Application Copyright © 2015 John Wiley & Sons, Inc. 11-29 Schermerhorn & Bachrach / Management, 13th edition Test Bank 77. Adzen Inc., an advertising firm, has a horizontal structure with simple rules and procedures. It achieves targets by having personal means of coordination. The firm values the existence of informal groups and does not believe in division of labor. Which of the following designs is being used by Adzen Inc.? A. Organic B. Centralized C. Bureaucratic D. Nonadaptive E. Authoritative Answer: A Learning Objective: 11.4 Difficulty: Moderate AACSB: Application of knowledge Bloom’s Taxonomy: Application 78. Which of the following is true of an organic design? A. It is a horizontal structure with decentralized authority. B. It has narrow spans of control. C. It has a vertical structure of authority. D. It is typified by many rules and procedures. E. It is characterized by very precise division of labor. Answer: A Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 79. A(n) _____ performs well in environments that demand flexibility in dealing with changing conditions. A. authoritative structure B. centralized system C. mechanistic design D. adaptive organization Copyright © 2015 John Wiley & Sons, Inc. 11-30 Schermerhorn & Bachrach / Management, 13th edition Test Bank E. bureaucratic structure Answer: D Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 80. Which of the following is true of adaptive organizations? A. They work with narrow spans of control and formal coordination. B. They operate with a distinguished feature of promotion based on competency. C. They are built on a foundation of trust that people will do the right things on their own initiative. D. They are characterized by vertical structures with a clear-cut division of labor and a hierarchy of authority. E. They work best for organizations doing routine tasks in stable environments. Answer: C Learning Objective: 11.4 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 81. The employees of Astro Inc., a graphics design firm, are given the liberty to use their ideas and their personal skills to perform their tasks. The firm’s managers trust that all employees work efficiently without any supervision. The firm uses an organic design and works with informal structures. This implies that Astro Inc. is a(n) _____ organization. A. centralized B. adaptive C. bureaucratic D. strategic E. authoritative Answer: B Learning Objective: 11.4 Copyright © 2015 John Wiley & Sons, Inc. 11-31 Schermerhorn & Bachrach / Management, 13th edition Test Bank Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 82. Which of the following is true of trends in organizational designs? A. The growth of new technologies for information systems and social media is reducing new possibilities for creativity. B. Managers are trying to minimize the rate of delegation of work as it incurs heavy expenditures. C. Delegation and horizontal structures are contributing to more centralization in organizations. D. The complexity and uncertainty are prompting more organizations to shift toward organic designs. E. Organizations are lowering costs and increasing efficiency by employing more staff personnel and using larger staff units. Answer: D Learning Objective: 11.4 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 83. The chain of command: A. is the number of subordinates directly reporting to a manager. B. links all persons with successively higher levels of authority. C. horizontally links all positions of an organization’s management. D. operates with a minimum of bureaucratic features. E. is the process of distributing and entrusting work to other persons. Answer: B Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-32 Schermerhorn & Bachrach / Management, 13th edition Test Bank 84. _____ refers to the number of subordinates directly reporting to a manager. A. Span of control B. Chain of command C. Delegation D. Empowerment E. Decentralization Answer: A Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 85. Oasis Inc. is an organization with a tall structure. Which of the following would be a characteristic of Oasis Inc.? A. Oasis Inc. would reduce the number of employees in its organization. B. Oasis Inc. would have an inadequate number of managers. C. Oasis Inc. would allow for wider spans of control. D. Oasis Inc. would incur high costs due to the existence of many managers. E. Oasis Inc. would be a highly efficient and customer-sensitive organization. Answer: D Learning Objective: 11.4 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 86. Which of the following is true of tall structures? A. They have inadequate levels of management. B. They are characterized by scarcity of employees. C. They reduce overhead costs. D. They are highly efficient and flexible. E. They have narrow spans of control. Answer: E Copyright © 2015 John Wiley & Sons, Inc. 11-33 Schermerhorn & Bachrach / Management, 13th edition Test Bank Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 87. Branxon Corporation functions with a flat structure. Which of the following would be a characteristic of Branxon Corporation? A. Branxon Corporation would be functioning with many managers. B. Branxon Corporation would permit workers to make their own decisions. C. Branxon Corporation would tend to be more costly due to the existence of many levels of management. D. Branxon Corporation would have a narrow span of control. E. Branxon Corporation would have a scarcity of employees. Answer: B Learning Objective: 11.4 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 88. Which of the following is true of flat structures? A. They are inflexible. B. They help in reducing overhead costs. C. They have narrow spans of control. D. They tend to be very efficient due to the existence of many managers. E. They are not customer-sensitive. Answer: B Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-34 Schermerhorn & Bachrach / Management, 13th edition Test Bank 89. The process of entrusting work to others by giving them the right to make decisions and take action is referred to as _____. A. adaption B. mechanization C. delegation D. bureaucratization E. centralization Answer: C Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 90. Which of the following holds true regarding delegation? A. Authority should equal responsibility when work is delegated from a supervisor to a subordinate. B. When a supervisor delegates a task, the subordinate should not be given authority regarding performance. C. When done well, empowerment leads to delegation. D. When work is delegated, authority of the subordinate should be higher than the responsibility given by the supervisor. E. Delegation is conducted in order to ensure that employees do not make their own decisions regarding performance of tasks. Answer: A Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 91. Which of the following is true regarding the process of delegation? A. The manager seldom gives the right to the subordinate to take necessary actions along with the assigned task. B. The responsibility given by the manager is an expectation for the subordinate to perform assigned tasks. Copyright © 2015 John Wiley & Sons, Inc. 11-35 Schermerhorn & Bachrach / Management, 13th edition Test Bank C. When a subordinate takes an assignment, he does not have an obligation to the manager to complete the job as agreed. D. In the process of delegation, a manager does not have the power to create accountability. E. A manager is allowed to provide the subordinate with responsibility but not the authority to perform. Answer: B Learning Objective: 11.4 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 92. Which of the following is true of empowerment? A. It includes the concentration of authority for most decisions at the top level of an organization. B. It is a result of successful concentration of authority. C. It is the line of authority that vertically links each position with successively higher levels of management. D. It assigns tasks and rules to employees with the intention of prohibiting employees from making their own decisions. E. It results when delegation enables people who are most capable of doing the work to make decisions. Answer: E Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 93. Which of the following explains the purpose of empowering employees? A. It encourages employees to work as per the decisions made by the top level managers. B. It vertically links each employee’s position with successively higher levels of management. Copyright © 2015 John Wiley & Sons, Inc. 11-36 Schermerhorn & Bachrach / Management, 13th edition Test Bank C. It allows people at all levels to make more decisions that affect themselves and their work. D. It enables employees of an organization to work with strong hierarchical levels of authority. E. It encourages employees to use more formal means of coordination with many rules and procedures. Answer: C Learning Objective: 11.4 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 94. Centralization refers to the: A. concentration of authority for most decisions at the top level of an organization. B. dispersion of authority to make decisions throughout all organization levels. C. system that allows others to make decisions and exercise discretion in their work. D. process of creating wide spans of control and few hierarchical levels in organizations. E. process of entrusting work to others by giving them the right to make decisions and take action. Answer: A Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 95. At ZCN Bank, all operational decisions regarding promotional measures, interest rates, benefits, and customers are made completely by the top management. This implies that ZCN Bank has a(n) _____. A. decentralized system B. centralized system C. boundaryless structure D. informal structure E. organic design Copyright © 2015 John Wiley & Sons, Inc. 11-37 Schermerhorn & Bachrach / Management, 13th edition Test Bank Answer: B Learning Objective: 11.4 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 96. The dispersion of authority to make decisions throughout all organization levels is known as _____. A. span of control B. chain of command C. decentralization D. bureaucracy E. centralization Answer: C Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 97. Franklin Inc. encourages its employees at all levels to provide ideas, opinions, and support the process of decision making. This indicates that the firm has a(n) _____. A. decentralized system B. centralized system C. bureaucratic structure D. formal structure E. mechanistic design Answer: A Learning Objective: 11.4 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application Copyright © 2015 John Wiley & Sons, Inc. 11-38 Schermerhorn & Bachrach / Management, 13th edition Test Bank 98. Which of the following is true with regard to centralization and decentralization? A. Organizations cannot operate with decentralization without giving up centralized control. B. Advances in information technology help top managers maintain centralized control. C. Empowerment and horizontal structures are contributing to more centralization in organizations. D. Organizations with organic designs are highly centralized. E. Organizations with mechanistic designs are highly decentralized. Answer: B Learning Objective: 11.4 Difficulty: Moderate AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 99. People in _____ positions provide technical expertise for other parts of the organization. A. recruiting B. management C. line personnel D. staff E. mechanistic Answer: D Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 100. Which of the following is true with regard to use of staff positions? A. Organizations can lower costs and increase efficiency by employing fewer staff personnel. B. When organizations have smaller staff units, they tend to incur high expenditures. C. Line personnel provide expert advice and guidance to people in staff positions. Copyright © 2015 John Wiley & Sons, Inc. 11-39 Schermerhorn & Bachrach / Management, 13th edition Test Bank D. Organizations can create a central core of full time staff personnel to improve efficiency. E. Organizations should focus on employing more staff personnel to increase efficiency. Answer: A Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 101. Leisure Viaje is a major tour operator in the country. Four senior managers look after the company’s operations in 20 locations. All these senior managers report to the general manager of the company who is stationed at the company headquarter in Chicago. This description represents the _____ of the company. A. code of conduct B. social network C. organization chart D. focal structure E. mission Answer: C Learning Objective: 11.1 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 102. Ramon Auto, an automobile manufacturer, operates in several countries. The company has three major brands which are headed by three separate managers. Each of these three managers look after all the jobs and activities associated with their respective brands. According to this information, which of the following organization structures is adopted by Ramon Auto? A. Functional structure B. Product structure C. Geographical structure D. Customer structure Copyright © 2015 John Wiley & Sons, Inc. 11-40 Schermerhorn & Bachrach / Management, 13th edition Test Bank E. Process structure Answer: B Learning Objective: 11.2 Difficulty: Moderate AACSB: Application of knowledge Bloom’s Taxonomy: Application 103. Speak-Up, a cooperative group, meets every week to discuss its plans and actions for helping the community to learn more about organic farming. They form temporary teams based on tasks and actions. The size of the teams depends on the size of the tasks. In the context of team structures, Speak-Up group has the _____ structure. A. bureaucratic B. matrix C. closed D. boundaryless E. network Answer: D Learning Objective: 11.2 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 104. Traves Inc., a transcription services company, manages all its core processes with a small team of highly skilled employees. However, it outsources five of its processes to contractors. This helps the company to lower its costs and have a high degree of flexibility. In this context, Traves Inc. is using a(n) _____ structure to carry out its functions. A. matrix B. bureaucratic C. network D. geographical E. product Copyright © 2015 John Wiley & Sons, Inc. 11-41 Schermerhorn & Bachrach / Management, 13th edition Test Bank Answer: C Learning Objective: 11.2 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 105. Brendon, a software engineer at Re-Soft Inc., has to report to two managers at the same time, a functional manager and a team manager. In the context of divisional structures, Brendon is working in a _____ structure. A. geographical B. customer C. process D. product E. matrix Answer: E Learning Objective: 11.2 Difficulty: Moderate AACSB: Application of knowledge Bloom’s Taxonomy: Application 106. Four engineers from the technology cell of a company are required to work together for a certain time on a job till the job is completed. This is an example of a(n) _____. A. cross-functional team B. outsourcing strategic alliance C. boundaryless organization D. project team E. functional silo Answer: D Learning Objective: 11.3 Difficulty: Moderate AACSB: Application of knowledge Bloom’s Taxonomy: Application Copyright © 2015 John Wiley & Sons, Inc. 11-42 Schermerhorn & Bachrach / Management, 13th edition Test Bank 107. Crexons Inc. finds that there is too much bureaucracy in their organization. The CEO of the company desires to increase flexibility in the organizational structure. To accomplish this, he must _____. A. create temporary matrix structures B. empower the employees to make their own decisions C. establish strict organizational policies D. create functional silos to make sure the functions have well-defined boundaries. E. divide the organization based on processes. Answer: B Learning Objective: 11.4 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 108. In Bill’s organization, employees are encouraged to use their skills without restrictions, provide views and concepts, and independently select the best line of solutions. This information indicates that Bill’s organization practices _____. A. centralization B. vertical integration C. divestiture D. horizontal integration E. empowerment Answer: E Learning Objective: 11.4 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 109. Isabelle, the CEO of Roll-En Pens, finds that vertical hierarchy exists in the organization. She plans to reduce the stress on this hierarchical structure and give more decision-making ability to the subordinates. In the context of tall and flat organizations, Isabelle is trying to create a(n) _____ organization. Copyright © 2015 John Wiley & Sons, Inc. 11-43 Schermerhorn & Bachrach / Management, 13th edition Test Bank A. bureaucratic B. decentralized C. informal D. matrix E. adaptive Answer: B Learning Objective: 11.4 Difficulty: Hard AACSB: Application of knowledge Bloom’s Taxonomy: Application 110. At Sync-In Information Solutions, a startup in software solutions, most processes are determined by the few active partners of the business. Which of the following does this example illustrate? A. Centralization B. Empowerment C. Divestiture D. Vertical integration E. Delegation Answer: A Learning Objective: 11.4 Difficulty: Moderate AACSB: Application of knowledge Bloom’s Taxonomy: Application Essay 111. What are the potential advantages of matrix structures? Answer: The potential advantages of matrix structures include: Better communication and cooperation across functions. Improved decision making; problem solving takes place at the team level where the best Copyright © 2015 John Wiley & Sons, Inc. 11-44 Schermerhorn & Bachrach / Management, 13th edition Test Bank information is available. Increased flexibility in adding, removing, or changing operations to meet changing demands. Better customer service; there is always a program, product, or project manager informed and available to Answer questions. Better performance accountability through the program, product, or project managers. Improved strategic management; top managers are freed from lower-level problem solving to focus time on more strategic issues. Learning Objective: 11.2 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 112. What are the advantages and disadvantages of network structures? Answer: The advantages of network structures include: network structures are lean and streamlined. They help organizations stay cost-competitive by reducing overhead and increasing operating efficiency. Network concepts allow organizations to employ outsourcing strategies and contract out specialized business functions. Within the operating core of a network structure, furthermore, interesting jobs are created for those who coordinate the entire system of relationships. The potential disadvantages of network structures lie largely with the demands of new management responsibilities. The more complex the business or mission of the organization, the more complicated it is to control and coordinate the network of contracts and alliances. If one part of the network breaks down or fails to deliver, the entire system suffers. In addition, there is the potential to lose control over activities contracted out and to experience a lack of loyalty among contractors who are used infrequently rather than on a long-term basis. Learning Objective: 11.3 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 113. Describe the steps involved in the process of delegation. Copyright © 2015 John Wiley & Sons, Inc. 11-45 Schermerhorn & Bachrach / Management, 13th edition Test Bank Answer: In the first step, the manager assigns responsibility by carefully explaining the work or duties someone else is expected to do. This responsibility is an expectation for the other person to perform assigned tasks. In the second step, the manager grants authority to act. Along with the assigned task, the right to take necessary actions (for example, to spend money, direct the work of others, or use resources) is given to the other person. In the third step, the manager creates accountability. By accepting an assignment, the person takes on a direct obligation to the manager to complete the job as agreed. Learning Objective: 11.4 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Copyright © 2015 John Wiley & Sons, Inc. 11-46