Management, 11e (Robbins/Coulter) Chapter 18 Introduction to Controlling
1) Controlling is the process of monitoring, comparing, and correcting work performance. Answer: TRUE Page Ref: !" #$%ecti&e: 1 'iffic(lt: Eas Classification: Concept(al *) +a&ing a control sstem red(ces the scope of emploee empowerment and a(tonom. a(tonom. Answer: A-E Page Ref: !/ #$%ecti&e: 1 'iffic(lt: Eas Classification: Concept(al 0) ome control criteria, s(ch as emploee satisfaction, can $e (sed for an management sit(ation. Answer: TRUE Page Ref: !! #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al ) 'e&iations that eceed the accepta$le range of &ariation $ecome significant and need a manager2s attention. Answer: TRUE Page Ref: !3 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al 4) 5asic correcti&e action corrects pro$lems at once to get performance $ack on track. Answer: A-E Page Ref: 36 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al ") 7anagers sho(ld do nothing if the &ariance o$ser&ed from the standard is accepta$le. Answer: TRUE Page Ref: 31 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al
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/) Prod(cti&it decreases when an organiation raises the prices of its prod(cts. Answer: A-E Page Ref: 3* #$%ecti&e: 0 'iffic(lt: Eas Classification: Concept(al !) #rganiational effecti&eness is a meas(re of how appropriate organiational goals are and how well those goals are $eing met. Answer: TRUE Page Ref: 3* #$%ecti&e: 0 'iffic(lt: Eas Classification: Concept(al 3) eedforward control is more pop(lar and effecti&e than the other forms of control. Answer: A-E Page Ref: 3 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 16) eedforward control takes place while a work acti&it is in progress. Answer: A-E Page Ref: 3 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 11) Acti&it ratios meas(re an organiation2s a$ilit to meet its c(rrent de$t o$ligations. Answer: A-E Page Ref: 34 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 1*) The $alanced scorecard approach e&al(ates organiational performance from more than %(st the financial perspecti&e. Answer: TRUE Page Ref: 3" #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al
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10) 7anagers sho(ld not consider the standards when meas(ring the act(al performance of emploees. Answer: A-E Page Ref: 3/ #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 1) 5enchmarks for a compan m(st $e created $ased on the pre&io(s performance of the compan. Answer: A-E Page Ref: 3! #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 14) 7anagers tend to (se more direct s(per&ision and highl centralied decision making for control in less technologicall ad&anced co(ntries. Answer: TRUE Page Ref: 33 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al 1") Em$element and fra(d(lent filing of epenses are eamples of emploee theft. Answer: TRUE Page Ref: 466 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al 1/) Emploers esta$lish specific policies defining theft and fra(d and discipline proced(res. This is an eample of a conc(rrent control meas(re to control emploee theft. Answer: A-E Page Ref: 461 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al 1!) Using corporate hotlines or other mechanisms for reporting and in&estigating workplace &iolence is an eample of feed$ack control. Answer: A-E Page Ref: 461 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al
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13) ;o$ (ncertainties and emploee stress are factors that contri$(te to workplace &iolence. Answer: TRUE Page Ref: 46* #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al *6) A ser&ice profit chain is the ser&ice se<(ence from emploees to c(stomers to profit. Answer: TRUE Page Ref: 46 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al *1) The ar$anes=#le Act also called for more disclos(re and transparenc of corporate financial information. Answer: TRUE Page Ref: 464 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al **) >>>>>>>> refers to the process of monitoring, comparing, and correcting work performance. A) Controlling 5) -eading C) Planning ') #rganiing Answer: A Page Ref: !" #$%ecti&e: 1 'iffic(lt: Eas Classification: Concept(al *0) ?hich of the following is the final step in the management process@ A) organiing 5) planning C) controlling ') leading Answer: C Page Ref: !/ #$%ecti&e: 1 'iffic(lt: Eas Classification: Concept(al
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*) ?hich of the following corresponds to the controlling step in the management process@ A) performance meas(rements 5) emploee moti&ation C) strateg form(lation ') organiational str(ct(ring Answer: A Page Ref: !/ #$%ecti&e: 1 'iffic(lt: Eas Classification: Concept(al *4) ?hich of the following o$ser&ations is tr(e of organiational controlling@ A) An effecti&e control sstem facilitates emploee empowerment. 5) orming an organiational str(ct(re is a cr(cial control acti&it. C) +(man reso(rce management is a s($set of the controlling process. ') #rganiational strategies are formed d(ring the controlling stage. Answer: A Page Ref: !/ #$%ecti&e: 1 'iffic(lt: Eas Classification: Concept(al *") The control process ass(mes that >>>>>>>>. A) emploees re<(ire clear directions from management 5) emploees are (nder=<(alified and re<(ire training C) performance standards are alread in place ') emploee monitoring costs are part and parcel of doing $(siness Answer: C Page Ref: !! #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al */) The first step in the control process is >>>>>>>>. A) setting the desired standards 5) meas(ring act(al performance C) comparing performance against epectations ') enforcing managerial control Answer: 5 Page Ref: !! #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al
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*!) 7anagers sho(ld (se s($%ecti&e meas(res when >>>>>>>>. A) work acti&ities cannot $e epressed in <(antifia$le terms 5) work acti&ities are critical to the organiation C) organiational processes and acti&ities are comple ') immediate managerial action is re<(ired Answer: A Page Ref: !! #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al *3) ?hich of the following so(rces of information for meas(ring performance has the disad&antage of $eing s($%ect to personal $iases, and is time cons(ming and o$tr(si&e@ A) oral reports 5) personal o$ser&ations C) statistical reports ') written reports Answer: 5 Page Ref: !3 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al 06) ?hich of the following is one of the main ad&antages of (sing statistical reports as the so(rce of information@ A) tatistical reports can $e (sed to o$tain firsthand knowledge. 5) Unfiltered information can $e o$tained (sing statistical reports. C) tatistical reports are effecti&e for showing relationships. ') tatistical reports allow &er$al and non=&er$al feed$ack. Answer: C Page Ref: !3 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al 01) ?hich of the following so(rces (s(all pro&ides filtered information which cannot $e doc(mented@ A) oral reports 5) personal o$ser&ations C) statistical reports ') written reports Answer: A Page Ref: !3 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al
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0*) ?hich of the following so(rces pro&ides information which is comprehensi&e, formal, and eas to file and retrie&e@ A) oral reports 5) personal o$ser&ations C) statistical reports ') written reports Answer: ' Page Ref: !3 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al 00) The comparing step in the control process determines >>>>>>>>. A) a compan2s relati&e position in the ind(str in terms of the standards (sed 5) a compan2s relati&e position in the ind(str in terms of performance &ariances C) the ideal standard to $e (sed in meas(ring organiational performance ') the &ariation $etween act(al performance and the standard Answer: ' Page Ref: !3 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al 0) >>>>>>>> corrects the pro$lem at once to get performance $ack on track. A) 5asic correcti&e action 5) 9mmediate correcti&e action C) Re&ision of standards ') Re&ision of $enchmarks Answer: 5 Page Ref: 36 Topic: The Control Process #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al 04) 9f a manager in&estigates how and wh performance has de&iated $eond the accepta$le range of &ariation, and then corrects the so(rce of the de&iation, she is (sing >>>>>>>>. A) $(rea(cratic control 5) immediate correcti&e action C) $asic correcti&e action ') conc(rrent control Answer: C Page Ref: 36 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al
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0") 7anagers co(ld choose to do nothing when >>>>>>>>. A) an emploee fails to attain the standard $eca(se of internal pro$lems 5) the difference $etween act(al performance and standard performance is low and accepta$le C) performance standards are accepta$le, tho(gh the emploees ha&e not attained it ') the &ariance o$ser&ed from the epected performance is ca(sed d(e to (nrealistic standards Answer: 5 Page Ref: 31 Topic: The Control Process #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al 0/) ?hich of the following refers to the o&erall o(tp(t of g oods or ser&ices prod(ced di&ided $ the inp(ts needed to generate that o(tp(t@ A) ield 5) 'emand f(nction C) Effecti&eness ') Prod(cti&it Answer: ' Page Ref: 3* #$%ecti&e: 0 'iffic(lt: Eas Classification: Concept(al 0!) >>>>>>>> is meas(red $ the costs of ac<(iring and transforming organiational reso(rces into o(tp(ts. A) 9np(t 5) B(alit C) Effecti&eness ') Efficienc Answer: A Page Ref: 3* #$%ecti&e: 0 'iffic(lt: Eas Classification: Concept(al 03) ?hich of the following is considered the easiest wa to increase organiational prod(cti&it@ A) increasing the price of o(tp(ts 5) increasing the amo(nt of inp(ts C) hiring more emploees ') decreasing the &al(e of the prod(cts Answer: A Page Ref: 3* #$%ecti&e: 0 'iffic(lt: Eas Classification: Concept(al
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6) 9n order to increase the ratio of o(tp(ts to inp(ts, a manager wo(ld ha&e to >>>>>>>>. A) decrease the selling price 5) increase prod(cti&it C) increase the <(alit of inp(ts ') hire additional emploees Answer: 5 Page Ref: 3* #$%ecti&e: 0 'iffic(lt: Eas Classification: Concept(al 1) #rganiational >>>>>>>> is a meas(re of how appropriate organiational goals are and how well an organiation is achie&ing those goals. A) prod(cti&it 5) effecti&eness C) efficienc ') ield Answer: 5 Page Ref: 3* #$%ecti&e: 0 'iffic(lt: Eas Classification: Concept(al *) Certain organiations cond(ct c(lt(re a(dits to find o(t which companies are the $est to work for. ?hat is the ma%or $enefit associated with these rankings@ A) The rankings indicate the effecti&eness of an organiation2s conc(rrent control. 5) The rankings indicate how well a compan performs in comparison to others. C) These rankings are (sed $ go&ernments to make decisions on corporate grants. ') These rankings affect the credit rating of concerned organiations. Answer: 5 Page Ref: 30 #$%ecti&e: 0 'iffic(lt: Eas Classification: Concept(al 0) An organiation hires additional personnel as soon as the get a ma%or contract. The organiation is (sing >>>>>>>> control. A) feedforward control 5) conc(rrent control C) feed$ack control ') management control Answer: A Page Ref: 3 #$%ecti&e: 'iffic(lt: 7oderate Classification: Application
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) ?hich of the following is considered the most desira$le tpe of control to pre&ent anticipated pro$lems@ A) feedforward control 5) conc(rrent control C) feed$ack control ') reacti&e control Answer: A Page Ref: 3 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 4) The management control that takes place while a work acti&it is in progress is known as >>>>>>>>. A) feedforward control 5) conc(rrent control C) feed$ack control ') reacti&e control Answer: 5 Page Ref: 3 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al ") 7anagement $ walking aro(nd is an eample of >>>>>>>> control. A) feed$ack 5) conc(rrent C) feedforward ') reacti&e Answer: 5 Page Ref: 3 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al /) >>>>>>>> is when a manager in the work area interacts directl with emploees to maintain s(per&ision. A) Pre&enti&e maintenance 5) 7anagement $ walking aro(nd C) Reacti&e control ') eedforward control Answer: 5 Page Ref: 3 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al
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!) The >>>>>>>> ratios meas(re an organiation2s a$ilit to meet its c(rrent de$t o$ligations. A) acti&it 5) li<(idit C) le&erage ') profita$ilit Answer: 5 Page Ref: 34 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 3) ?hich of the following ratios eamines the organiation2s (se of de$t to finance its assets and its a$ilit to meet the interest paments on the de$t@ A) li<(idit ratios 5) le&erage ratios C) profita$ilit ') acti&it ratios Answer: 5 Page Ref: 34 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 46) >>>>>>>> ratios meas(re how efficientl the firm is (sing its assets. A) -i<(idit 5) -e&erage C) Profita$ilit ') Acti&it Answer: ' Page Ref: 34 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 41) ?hich of the following ratios meas(res how efficientl and effecti&el the firm is (sing its assets to generate re&en(e@ A) li<(idit ratios 5) le&erage ratios C) acti&it ratios ') profita$ilit ratios Answer: ' Page Ref: 34 #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al
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4*) The >>>>>>>> approach to performance meas(rement was introd(ced as a wa to e&al(ate organiational performance from more than %(st the financial perspecti&e. A) market &al(e 5) economic &al(e C) $alanced scorecard ') financial control Answer: C Page Ref: 3" #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 40) ?hich of the following is a performance meas(rement tool that looks at fo(r areas that contri$(te to a compan2s performance@ A) market &al(e method 5) economic &al(e method C) $alanced scorecard approach ') information control approach Answer: C Page Ref: 3" #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 4) ?hen data is analed and processed, it $ecomes >>>>>>>>. A) a sstem 5) information C) fact ') a str(ct(re Answer: 5 Page Ref: 3/ #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 44) Raw, (nanaled facts are called >>>>>>>>. A) data 5) information C) data$ase ') data center Answer: A Page Ref: 3/ #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al
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4") >>>>>>>> is the search for the $est practices among competitors or noncompetitors that lead to their s(perior performance. A) actor analsis 5) Total <(alit management C) 7arket positioning ') 5enchmarking Answer: ' Page Ref: 3! #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 4/) Control techni<(es can $e <(ite different for different co(ntries. The differences are primaril in the >>>>>>>>. A) tpes of tasks that emploees perform in &ario(s co(ntries 5) wa emploees respond to the controlling meas(res C) strategic orientation of each techni<(e ') meas(rement and correcti&e action steps of the control process Answer: ' Page Ref: 33 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al 4!) ra(d(lent filing of epense reports is an eample of >>>>>>>>. A) emploee theft 5) workplace pirac C) workplace &iolence ') pri&ac intr(sion Answer: A Page Ref: 466 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al 43) Clinical pschologists s(ggest that emploee theft >>>>>>>>. A) occ(rs primaril when there are poor management=la$or relations 5) is a smptom of poor planning and management control C) happens $eca(se people find was to rationalie this $eha&ior as correct ') reflects deep c(lt(ral pro$lems in the societ Answer: C Page Ref: 461 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al
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"6) actors that ha&e $een fo(nd to $e linked to workplace &iolence incl(de >>>>>>>>. A) too m(ch caffeine 5) emploee stress C) poor emploee diet ') poor personal hgiene Answer: 5 Page Ref: 46* #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al "1) Eperts ha&e descri$ed emploee work dri&en $ TC as a primar contri$(tor to workplace &iolence. TC refers to >>>>>>>>. A) time, n(m$ers, and crises 5) time, n(m$er, and chaos C) time, neglect, and crises ') time, neglect, and chaos Answer: A Page Ref: 46* #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al "*) ?hich of the following is an eample of a feedforward control meas(re (sed to control possi$le workplace &iolence@ A) Clearl comm(nicate the sec(rit policies to emploees. 5) Use corporate hotlines for reporting and in&estigating incidences. C) Re&iew compan policies and change, if necessar. ') 9n&estigate incidences and take appropriate action. Answer: A Page Ref: 460 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al "0) An organiation comm(nicates openl to its emploees a$o(t &iolent incidences in the workplace and what2s $eing done to handle them. This is an eample of a >>>>>>>> control strateg. A) feed$ack 5) proacti&e C) conc(rrent ') feedforward Answer: A Page Ref: 460 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al 1 Copright 8 *61* Pearson Ed(cation, 9nc. P($lishing as Prentice +all
") The ser&ice profit chain is the ser&ice se<(ence from emploees to c(stomers to profit. According to this concept, the compan2s strateg and ser&ice deli&er sstem determines >>>>>>>>. A) the skill de&elopment of emploees 5) how the firm performs in the short r(n C) the emploee satisfaction in the compan ') how emploees ser&ice c(stomers Answer: ' Page Ref: 46 Topic: Contemporar 9ss(es in Control #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al "4) Corporate go&ernance >>>>>>>>. A) refers to eec(ti&e go&ernance practices in companies 5) is a sstem (sed to go&ern a corporation so that the interests of corporate owners are protected C) is a term that refers to legal agreements made $etween two or more partner firms ') refers to the negati&e infl(ence of the corporate in societ Answer: 5 Page Ref: 46 Topic: Contemporar 9ss(es in Control #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al "") Two areas in which corporate go&ernance is $eing reformed are the role of $oards of directors and >>>>>>>>. A) emploee stock options 5) financial reporting C) eec(ti&e compensation ') top le&el management Answer: 5 Page Ref: 46=464 Topic: Contemporar 9ss(es in Control #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al
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"/) The ar$anes=#le Act called for >>>>>>>>. A) increased poll(tion control meas(res from the go&ernment 5) more disclos(re and transparenc of corporate financial information C) limited acco(nta$ilit of directors and eec(ti&es of corporates ') more social contri$(tion from companies in the United tates Answer: 5 Page Ref: 464 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al tatco2s Control Dcenario) tatco, 9nc., is a statistical software compan $ased in Col(m$ia, T. This p($licl traded firm has grown in a sstematic fashion o&er its *4=ear eistence and now claims more than 1*,666 emploees worldwide. As it has grown, the compan has adopted a hierarchical str(ct(re, which emphasies organiational a(thorit. 7anagement relies hea&il on administrati&e r(les, reg(lations, and policies in order to meet its goals. +owe&er, the compan has str(ggled to meet pro%ected re&en(es for each of the past 16 <(arters. The firm hires 7ark Adams, an epert in control sstem design, to design a control sstem and offer s(ggestions to impro&e the firm2s performance. "!) ?hich of the following is a ke acti&it that the proposed control sstem sho(ld perform@ A) organiational planning 5) organiational str(ct(ring C) performance meas(rement ') strategic planning Answer: C Page Ref: !/ AAC5: Analtic kills #$%ecti&e: 1 'iffic(lt: 7oderate Classification: Application "3) 7ark wants to form(late a control process for the organiation. ?hat sho(ld $e the first step in the control process@ A) carring o(t performance comparison 5) determining the act(al performance C) de&eloping a $enchmark ') &alidating the performance standard Answer: 5 Page Ref: !! AAC5: Analtic kills #$%ecti&e: * 'iffic(lt: 7oderate Classification: Application
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/6) 7ark wants to (se a tool which is eas to &is(alie and effecti&e for showing relationships. ?hich of the following tools is $est s(ited for this@ A) personal o$ser&ations 5) oral reports C) written reports ') statistical reports Answer: ' Page Ref: !3 AAC5: Analtic kills #$%ecti&e: * 'iffic(lt: 7oderate Classification: Application /1) 7ark recommends that the managers at tatco sho(ld identif how and wh performance has de&iated $eond the accepta$le range of &ariation, and then correct the so(rce of the de&iation. +ere, 7ark is recommending >>>>>>>>. A) $(rea(cratic control 5) immediate correcti&e action C) $asic correcti&e action ') conc(rrent control Answer: C Page Ref: 36 AAC5: Analtic kills #$%ecti&e: * 'iffic(lt: 7oderate Classification: Application The 9nd(str -eader Dcenario) rank, the new CE# for irst idelit, is working hard to t(rn aro(nd the formerl s(ccessf(l real estate $(siness. +is goal is to make irst idelit a leader in the ind(str. +e (nderstands the importance of impro&ing organiational prod(cti&it in achie&ing his goals. 7ark is keen to impro&e organiational performance and effecti&eness. /*) The operations manager s(ggests a hike in the prices to impro&e prod(cti&it. +owe&er, rank r(les this option o(t. ?hat co(ld $e the possi$le reason for this@ A) Prod(ct prices are not related to organiational prod(cti&it. 5) elling price is negati&el correlated to organiational prod(cti&it. C) The real estate $(siness is characteried $ intense competition. ') (ch an action wo(ld lead to red(ced emploee satisfaction. Answer: C Page Ref: 3* AAC5: Analtic kills #$%ecti&e: 0 'iffic(lt: 7oderate Classification: Application
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/0) rank $elie&es organiational effecti&eness is more important to the organiation than organiational prod(cti&it. ?hat co(ld $e the rationale $ehind this $elief@ A) #rganiational prod(cti&it is not a meas(re of organiational performance. 5) #rganiational effecti&eness is a meas(re of how well the organiational goals are met. C) #rganiational prod(cti&it is not directl related to organiational o(tp(t. ') #rganiational effecti&eness is a <(antitati&e meas(re of the inp(t=o(tp(t relationship. Answer: 5 Page Ref: 3* AAC5: Analtic kills #$%ecti&e: 0 'iffic(lt: 7oderate Classification: Application Controlling #perations Charles is the operations manager of a firm which operates as a leaf to$acco merchant and processor worldwide. Charles $elie&es that the firm2s prod(cti&it can $e increased s($stantiall from the c(rrent le&el. +e wants to eert control to impro&e organiational performance and prod(cti&it. /) Charles wants to pre&ent pro$lems $efore their occ(rrence. ?hich of the following is the most desira$le tpe of control to achie&e this goal@ A) reacti&e control 5) conc(rrent control C) feedforward control ') feed$ack control Answer: C Page Ref: 3 AAC5: Analtic kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Application /4) Charles interacts directl with the emploees in the work area to identif pro$lem areas. +e works with &ario(s departments to o$tain a holistic idea of the $(siness. This tpe of direct s(per&ision is an eample of >>>>>>>> control. A) proacti&e 5) conc(rrent C) feedforward ') feed$ack Answer: 5 Page Ref: 3 AAC5: Analtic kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Application
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/") Charles disco&ers ma%or flaws in the packaging department. +e cons(lts the prod(ction manager and form(lates control meas(res to impro&e packaging. +ere, Charles is (sing the >>>>>>>> control. A) feed$ack 5) proacti&e C) conc(rrent ') feedforward Answer: A Page Ref: 3 AAC5: Analtic kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Application inancial Controls R(th 7ood works as a freelance financial cons(ltant. he renders financial ser&ices to indi&id(als and small $(sinesses. Entropic Comm(nications, 9nc., a fa$less semicond(ctor compan, seeks her ser&ices to st(d the financial sta$ilit of their compan. //) R(th wants to anale the organiation2s a$ilit to meet its c(rrent de$t o$ligations. ?hich of the following ratios is most helpf(l to R(th in analing this@ A) in&entor t(rno&er ratio 5) ret(rn on in&estment ratio C) c(rrent ratio ') total asset t(rno&er ratio Answer: C Page Ref: 34 AAC5: Analtic kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Application /!) R(th identifies the firm2s le&erage ratio to $e &er high. ?hat s(ggestion co(ld R(th gi&e to help the firm red(ce its le&erage ratio@ A) 9ncrease the mone s(ppl $ selling a part of its assets. 5) Pa $ack part of its de$ts to impro&e the ratio. C) 7aintain more c(rrent assets than c(rrent lia$ilities. ') Red(ce the sales to total assets ratio of the firm. Answer: 5 Page Ref: 3" AAC5: Analtic kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Application
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Emploee Theft 5ar$ara is the prod(ct manager of an energ compan which operates in the Americas. he is concerned a$o(t the increased emploee theft o$ser&ed in the factor. A st(d has shown that 06666 worth of merchandise was acco(nted to emploee theft in the ear *616. /3) 5ar$ara cons(lts a criminologist to identif the reasons for emploee thefts. ?hich of the following is the most likel interpretation that the criminologist wo(ld present@ A) People ha&e financial=$ased press(res which moti&ate them to steal. 5) People steal $eca(se the opport(nit presents itself thro(gh la controls. C) a&ora$le circ(mstances tempt people to commit crimes. ') People steal $eca(se the can rationalie whate&er the2re doing. Answer: A Page Ref: 466=461 AAC5: Analtic kills #$%ecti&e: 4 'iffic(lt: 7oderate Classification: Application !6) 5ar$ara wants to take correcti&e meas(res to pre&ent f(t(re theft. ?hich of the following is a feed$ack tactic that 5ar$ara co(ld (se to control theft@ A) (se the ser&ices of professional in&estigators 5) openl comm(nicate the costs of stealing C) (se corporate hotlines for reporting incidences ') ed(cate and train emploees a$o(t the policies Answer: A Page Ref: 461 AAC5: Analtic kills #$%ecti&e: 4 'iffic(lt: 7oderate Classification: Application
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?orkplace Fiolence Three emploees were in%(red in shootings at the Premier 5ear actor located in Ariona. An emploee a$o(t to lose his %o$ opened fire to ca(se this de$acle. +elen Gates, the factor manager is looking for was to control s(ch incidents. !1) ?hich of the following is a feedforward control meas(re to p re&ent f(rther occ(rrences@ A) emploee assistance programs to help emploees with $eha&ioral pro$lems 5) thoro(gh in&estigation of the incident $ an eternal agenc C) (se of <(ick and decisi&e managerial inter&ention d(ring the incident ') open comm(nication a$o(t incidences and what2s $eing done Answer: A Page Ref: 460 AAC5: Analtic kills #$%ecti&e: 4 'iffic(lt: 7oderate Classification: Application !*) +elen in&estigates the incident to take meas(res to control its effects. 5 doing this she is eerting >>>>>>>> control o&er the incident. A) feed$ack 5) conc(rrent C) parallel ') feedforward Answer: A Page Ref: 460 AAC5: Analtic kills #$%ecti&e: 4 'iffic(lt: 7oderate Classification: Application
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Hel$itron Falerie is a plant manager at Hel$itron, a compan which man(fact(res and sells air conditioning and heating e<(ipment in the United tates and Canada. he meas(res the performance of the workers e&er month and compares it with esta$lished standards. he (ses different approaches to meas(re the performance of different (nits in the plant, $ased on the tpe of emploees and the nat(re of work. The plant has 0* f(nctional (nits. Each (nit is named Unit=1 to Unit=0* $ased on their order in the assem$l line. !0) Unit=0* cond(cts f(nctional testing and <(alit analsis of the air=conditioners. Falerie decides to meas(re the performance of workers of Unit=0* $ personall o$ser&ing them. ?hich of the following additional pieces of information wo(ld offer most s(pport to her d ecision to (se personal o$ser&ation@ A) A ma%orit of the emploees in Unit=0* had called for a fair scheme of performance meas(rement in a recent feed$ack session. 5) Falerie needs immediate information to s(pport a performance appraisal which is d(e. C) Hel$itron policies state that performance meas(rement sho(ld $e free from $ias. ') The (nit2s tasks are considered comple and re<(ire an intensi&e co&erage of work acti&ities when meas(ring performance. Answer: ' Page Ref: !!=!3 AAC5: Reflecti&e Thinking kills #$%ecti&e: * 'iffic(lt: 'iffic(lt Classification: Critical Thinking !) Falerie chooses oral reports instead of statistical reports when collecting information for meas(ring the performance of Unit=*/. Unit=*/ monitors the flow of the assem$l line. ?hich of the following, if tr(e, wo(ld most weaken the decision to choose oral reports@ A) on=&er$al feed$ack from emploees is considered cr(cial to performance e&al(ation as it is a $etter indicator of tr(th. 5) t(dies ha&e shown that managers who (se filtered information for making decisions tend to make poor decisions. C) ($%ecti&e factors are important when meas(ring the performance of emploees who perform ro(tine tasks s(ch as working in an assem$l line. ') Etensi&e information is needed to meas(re the performance of the (nit as it is diffic(lt to <(antif the performance. Answer: 5 Page Ref: !!=!3 AAC5: Reflecti&e Thinking kills #$%ecti&e: * 'iffic(lt: 'iffic(lt Classification: Critical Thinking
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TR Associates TR Associates is an ind(strial conglomerate with interests all o&er the world and $ased in the United tates. The compan man(fact(res packaged food prod(cts s(ch as packaged snacks and car$onated $e&erages worldwide. !4) TR gro(p has a man(fact(ring plant in o(th Africa which ser&es African markets s(ch as o(th Africa, Iim$a$we, and Iam$ia. erg(son, the plant manager, identifies the o(tp(t of the plant2s $ottling line is not (p to the mark. +e transfers a few emploees from another department to the $ottling line to increase prod(ction. ?hich of the following, if tr(e, wo(ld s(pport this correcti&e action the most@ A) A recent st(d re&ealed that the c(rrent emploees at the $ottling line are not moti&ated to prod(ce more. 5) The plant has siteen departments and erg(son is a(thoried to transfer emploees across departments. C) A st(d cond(cted $ the operations management team had fo(nd that the $ottling line needs more emploees. ') 7ost of the emploees he transferred to the $ottling line are highl skilled in their c(rrent area of specialiation. Answer: C Page Ref: 36 AAC5: Reflecti&e Thinking kills #$%ecti&e: * 'iffic(lt: 'iffic(lt Classification: Critical Thinking !") As a part of its market de&elopment strateg, TR gro(p recentl la(nched operations in Iam$ia. Al$ert, the head of marketing in Iam$ia, decides to keep the prices of prod(cts high. ?hich of the following pieces of information, if tr(e, wo(ld most strengthen Al$ert2s decision to keep the prices high@ A) TR gro(p does not face significant competition in the Iam$ian market for packaged foods. 5) Research e&idence s(ggests that the initial demand for TR2s prod(cts will $e low in Iam$ia. C) Charging high prices wo(ld pro&ide a margin to red(ce the prices after a point in time. ') ($stantial research e&idence is a&aila$le to s(pport the idea that the packaged food ind(str has h(ge potential in Iam$ia. Answer: A Page Ref: 3* AAC5: Reflecti&e Thinking kills #$%ecti&e: 0 'iffic(lt: 'iffic(lt Classification: Critical Thinking
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!/) Charles, the head of operations in Africa, (rges managers to (se onl feedforward controls. ?hich of the following is an ass(mption that he m(st ha&e made in choosing this co(rse of action@ A) The nat(re of the compan2s operations demands constant monitoring. 5) ?ork teams at the plant are m(lti=f(nctional and colla$orati&e. C) Acc(rate and timel information is a&aila$le to the managers at will. ') 7anagement control is a contin(o(s process that re<(ires inp(ts from e&erone in the organiation. Answer: C Page Ref: 3 AAC5: Reflecti&e Thinking kills #$%ecti&e: 'iffic(lt: 'iffic(lt Classification: Critical Thinking !!) He&in ;ones is a financial analst who pro&ides cons(lting ser&ices. He&in ad&ises a pharmace(tical compan to impro&e its li<(idit $ selling (nprod(cti&e assets. ?hich of the following, if tr(e, wo(ld most strengthen the s(ggestion to impro&e li<(idit@ A) The compan is characteried $ low financial le&erage. 5) 9n&entor t(rno&er ratio is high in the pharmace(tical ind(str. C) The compan has an etremel low de$t to e<(it ratio. ') The compan has a &er low acid test ratio. Answer: ' Page Ref: 34=3" AAC5: Reflecti&e Thinking kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Critical Thinking !3) He&in ;ones is a financial analst who pro&ides cons(lting ser&ices. He&in considers the acid test ratio to $e a $etter meas(re of li<(idit than the c(rrent ratio, for a pharmace(tical compan. This concl(sion rests on which of the following ass(mptions@ A) The compan has consistentl paid di&idends in the past. 5) The compan has high in&entories and a low in&entor t(rno&er ratio. C) The compan has one of the highest R#9 ratios in the ind(str. ') The compan (ses e<(it as a ma%or so(rce of financing. Answer: 5 Page Ref: 34=3" AAC5: Reflecti&e Thinking kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Critical Thinking
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36) ?hat are the ma%or reasons wh the control f(nction is important to managers@ Answer: Control is important $eca(se it2s the onl wa managers know whether organiational goals are $eing met and if not, the reasons wh. The &al(e of the control f(nction can $e seen in three specific areas: planning, empowering emploees, and protecting the workplace. As the final step in the management process, controlling pro&ides the critical link $ack to planning. 9f managers didn2t control, the2d ha&e no wa of knowing whether their goals and plans were $eing achie&ed and what f(t(re actions to take. The second reason controlling is important is $eca(se of emploee empowerment. 7an managers are rel(ctant to empower their emploees $eca(se the fear emploees will do something wrong for which the wo(ld $e held responsi$le. 7an managers are tempted to do things themsel&es and a&oid empowering. 5(t an effecti&e control sstem can pro&ide information and feed$ack on emploee performance, th(s red(cing potential pro$lems. The final reason that managers control is to protect the organiation and its assets. Toda2s en&ironment $rings heightened threats from nat(ral disasters, financial scandals, workplace &iolence, s(ppl chain disr(ptions, sec(rit $reaches, and e&en possi$le terrorist attacks. 7anagers m(st ha&e plans in place to protect the organiation2s emploees, facilities, data, and infrastr(ct(re. +a&ing comprehensi&e controls and $ack(p plans will help ass(re minimal work disr(ptions. Page Ref: !/ #$%ecti&e: 1 'iffic(lt: Eas Classification: Concept(al 31) 9n a short essa, list and $riefl eplain the steps, processes, and $est practices managers tpicall (tilie in the control process. Pro&ide eamples where appropriate. Answer: a. 7eas(ringthe first step in the control process is meas(ring. 7ost %o$s and acti&ities can $e epressed in tangi$le and meas(ra$le terms. 7anagers fre<(entl (se a &ariet of so(rces of information to meas(re act(al performance, s(ch as personal o$ser&ation, statistical reports, oral reports, and written reports. or most managers, (sing a com$ination of approaches increases $oth the n(m$er of inp(t so(rces and the pro$a$ilit of getting relia$le information. $. Comparingthe second step in&ol&es determining the degree of &ariation $etween act(al performance and the prespecified standard. ome &ariation is to $e epected. +owe&er, it is important for managers to determine the accepta$le range of &ariation. c. Taking managerial actionmanagers can choose among three possi$le co(rses of action: do nothing, correct the act(al performance, or re&ise the standards. Eamples of correcti&e actions might incl(de changing strateg, str(ct(re, compensation plans, training programs, redesigning %o$s, or firing emploees. Re&ising standards is an appropriate response if the &ariance was the res(lt of (nrealistic epectations. +owe&er, re&ising standards downwards can $e tro($lesome when an emploee or work (nit fall short of reaching a goal. 9f the don2t meet the standard, their nat(ral response is to attack the standard. 9f the manager $elie&es the standard is fair, the sho(ld eplain their position, reaffirm their desire for the emploee or work (nit to meet the standard, and then take necessar correcti&e action to t(rn that epectation into realit. Page Ref: !!=31 #$%ecti&e: * 'iffic(lt: Eas Classification: Concept(al *4 Copright 8 *61* Pearson Ed(cation, 9nc. P($lishing as Prentice +all
3*) #rganiational effecti&eness is a $etter meas(re of organiational performance than organiational prod(cti&it. 'o o( agree with this statement@ ?h or wh not@ Answer: #rganiational effecti&eness is a meas(re of how appropriate organiational goals are and how well those goals are $eing met. o an effecti&e organiation is certain to meet its goals. +igh organiational prod(cti&it does not necessaril indicate that organiational goals ha&e $een achie&ed. +ence organiational effecti&eness, as a meas(re of organiational performance, can $e considered a more acc(rate tool of meas(rement. Prod(cti&it is the amo(nt of goods or ser&ices prod(ced di&ided $ the inp(ts needed to generate that o(tp(t. o it co(ld $e easier to calc(late prod(cti&it. t(dents co(ld disagree stating these reasons. Page Ref: 3* AAC5: Reflecti&e Thinking kills #$%ecti&e: 0 'iffic(lt: 'iffic(lt Classification: Critical Thinking 30) 9n a short essa eplain feedforward, conc(rrent, and feed$ack controls and pro&ide an eample for each one. Answer: eedforward control is the most desira$le tpe of controlJ feedforward control J pre&ents anticipated pro$lems since it takes place $efore the act(al acti&it. EampleJat t. ;oseph2s +ospital in ?est 5end, 9ndiana, a new facilit was designed with identical rooms, nonslip floors, and glass walls to red(ce errors in patient care and to increase emploee safet. Conc(rrent control, as its name implies, takes place while an acti&it is in progress. ?hen control occ(rs while the work is $eing performed, management can correct pro$lems $efore the come too costl. EampleJ?hen managers (se management $ walking aro(nd, which is a term descri$ing when a manager is o(t in the work area interacting directl with emploees, the2re (sing conc(rrent control. eed$ack control, the most pop(lar tpe of control relies on feed$ack. 9n feed$ack control, the control takes place after the acti&it is done. EampleJwhen the 'en&er 7int disco&ered flawed ?isconsin <(arters, it was disco&ered with feed$ack control. The damage had alread occ(rred e&en tho(gh the organiation corrected the pro$lem once it was disco&ered. Page Ref: 3 AAC5: Analtic kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Application
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3) -ist and disc(ss three of the main performance control tools (sed for monitoring and meas(ring organiational performance. Answer: a. inancial controlsone of the primar p(rposes of e&er $(siness firm is to earn a profit. 9n p(rs(it of this o$%ecti&e, managers need financial controls. The might perform se&eral financial ratio tests to ens(re that s(fficient cash is a&aila$le to pa ongoing epenses, that de$t le&els ha&en2t $ecome too high, or that assets are $eing (sed prod(cti&el. $. 9nformation controlsinformation can $e critical to monitoring and meas(ring an organiation2s performance. 7anagers need the right information at the right time and in the right amo(nt. 9nacc(rate, incomplete, or delaed information can serio(sl impede organiational performance. 7anagers need information a$o(t the standards in order to $e a$le to compare act(al performance with the standard. The rel on information to help them determine if de&iations are accepta$le. The also rel on information to help them de&elop appropriate co(rses of action. c. 5alanced scorecardthis is a performance meas(rement that was introd(ced as a wa to e&al(ate organiational performance from more than %(st the financial perspecti&e. The $a lanced scorecard is a performance meas(rement tool that looks at fo(r areasfinancial, c(stomer, internal processes, and peopleKinno&ationKgrowth assetsthat contri$(te to a compan2s performance. According to this approach, managers sho(ld de&elop goals in each of the fo(r areas and meas(re to determine if these goals are $eing met. d. 5enchmarking of $est practices $enchmarking is the search for the $est practices among competitors or noncompetitors that lead to their s(perior performance. At its most f(ndamental le&el, $enchmarking means learning from others. As a tool for monitoring and meas(ring organiational performance, $enchmarking can $e (sed to help identif specific performance gaps and potential areas for impro&ement. t(dents can choose an three to ela$orate on. Page Ref: 34=3! #$%ecti&e: 'iffic(lt: Eas Classification: Concept(al 34) ?hat do o( think are the $enefits of $enchmarking@ Pro&ide eamples of $enchmarking practices. Answer: 5enchmarking is the search for the $est practices among competitors or noncompetitors that lead to their s(perior performance. 5enchmarking sho(ld identif &ario(s $enchmarks, which are the standards of ecellence against which to meas(re and compare. 9t pro&ides an insight into the $est practices in the ind(str and helps managers e&al(ate organiational performance. or instance, the American 7edical Association de&eloped more than 166 standard meas(res of performance to impro&e medical care. Carlos Ghosn, CE# of issan, $enchmarked ?almart operations in p(rchasing, transportation, and logistics. 5enchmarking allows organiations to learn from others. t(dent eamples ma &a r for this <(estion. Page Ref: 3! AAC5: Analtic kills #$%ecti&e: 'iffic(lt: 7oderate Classification: Application */ Copright 8 *61* Pearson Ed(cation, 9nc. P($lishing as Prentice +all
3") Eperts in &ario(s fields, ind(strial sec(rit, criminolog, and clinical pscholog, ha&e different perspecti&es on the moti&ation $ehind emploee thefts. ?hich one do o( think is the $est eplanation@ Pro&ide reasons to %(stif o(r answer. Answer: Eperts in ind(strial sec(rit propose that people steal $eca(se the opport(nit presents itself thro(gh la controls and fa&ora$le circ(mstances. Criminologists sa that it2s $eca(se people ha&e financial=$ased press(res Ds(ch as personal financial pro$lems) or &ice=$ased press(res Ds(ch as gam$ling de$ts). And clinical pschologists s(ggest that people steal $eca(se the can rationalie whate&er the2re doing as $eing correct and appropriate $eha&ior. Each approach pro&ides compelling insights into emploee theft and has $een instr(mental in attempts to deter it. t(dents ma s(pport an of these &iews and sho(ld pro&ide reasons to %(stif this &iew. Page Ref: 466=461 AAC5: Reflecti&e Thinking kills #$%ecti&e: 4 'iffic(lt: 7oderate Classification: Critical Thinking 3/) Pro&ide a few eamples for feedforward strategies to red(ce emploee theft. Answer: The following strategies can $e (sed to control emploee theft. 1. Caref(l prehiring screening. *. Ed(cating and training emploees a$o(t policies. 0. Performing professional re&iews to st(d internal controls. . 9n&ol&ing emploees in writing policies. The st(dents ma answer an two. Page Ref: 461 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al 3!) 9dentif three feed$ack control meas(res which wo(ld red(ce work place &iolence. Answer: The following co(ld $e (sed as feed$ack meas(res to control workplace &iolence. 1. Comm(nicate openl a$o(t incidences and what2s $eing done. *. 9n&estigate incidences and take appropriate action. 0. Re&iew compan policies and change, if necessar. Page Ref: 460 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al
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33) ?orkplace &iolence is a diffic(lt pro$lem for managers to hand le . 7anagers can take anticipator steps to control workplace &iolence. Pro&ide a few s(ggestions. Answer: 7anagers can implement feedforward control as a pre&enti&e meas(re. ome of the feedforward control meas(res incl(de the following: a. 9dentif potential pro$lems $ o$ser&ing how emploees treat and interact with each other. $. Use caref(l prehiring screening. c. Train emploees a$o(t how to a&oid danger if the sit(ation arises. d. Enforce organiational polic that an workplace rage, aggression, or &iolence will not $e tolerated. Page Ref: 460 AAC5: Analtic kills #$%ecti&e: 4 'iffic(lt: 7oderate Classification: Application 166) 9n a short essa, define corporate go&ernance and descri$e some of the c(rrent trends in this area. Answer: Corporate go&ernance is the sstem (sed to go&ern a corporation so that the interests of corporate owners are protected. 9n response to se&eral recent $(siness scandals, two areas in which corporate go&ernance is $eing reformed are the role of $oards of directors and financial reporting. The co, <(id pro <(o composition of corporate $oards, where $oard mem$ers are fre<(entl peers of other corporations, is changing considera$l. The ar$anesJ#le Act of *66*, p(ts greater demands on $oard mem$ers of p($licl traded companies in the United tates to do what the were empowered and epected to do. To help $oards do their %o$ $etter, researchers at the Corporate Go&ernance Center at Hennesaw tate Uni&ersit de&eloped 16 go&ernance principles for U.. p($lic companies that ha&e $een endorsed $ the 9nstit(te of 9nternal A(ditors. 9n addition to epanding the role of $oards of directors, the ar$anesJ#le Act also called for more disclos(re and transparenc of corporate financial information. 9n fact, senior managers in the United tates are now re<(ired to certif their companies2 financial res(lts. These tpes of changes sho(ld lead to $etter informationthat is, information that is more acc(rate and reflecti&e of the firm2s financial condition. 9n f(lfilling their financial reporting responsi$ilities, managers might also want to follow the 14 principles de&eloped $ the researchers at the Corporate Go&ernance Center at Hennesaw tate Uni&ersit. Page Ref: 46=464 #$%ecti&e: 4 'iffic(lt: Eas Classification: Concept(al
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