BUSİNESS MANAGEMENT - Deneme Sınavı - 5

Standing plans are ongoing plans that provide guidance for activities performed repeatedly, like policies and procedures. The correct answer is E.

Tactical plans are short-range plans that emphasize the current operations of various parts of the organization, such as production, marketing and human resources. The correct answer is E.

The first step of the planning process is to identify organizational goals and objectives. Even though some distinguish between goals and objectives stating that goals are general qualitative statements showing intention and objectives are the measurable descriptions of how intentions will be put into practice, for the sake of simplicity. The correct answer is D.

Organizational goals should be measurable, results-oriented, realistic, challenging, and have a clear time frame. The correct answer is D.

An operational plan presents information to direct people in their day-to-day tasks that will support and enable the tactical plan. The correct answer is C.

Master budget is an overall financial and operating plan for a forthcoming calendar or fiscal year. The correct answer is C.

Capital expenditure budget specifies the significant amount of money planned to be spent on items that have long-term use such as manufacturing equipment, land, and buildings. The correct answer is B.

Zero-based budgeting starts from scratch, and every part of the organization is analyzed for its short-term needs. The correct answer is B.

Activity-based budgeting emphasizes the expected cost of the planned activities that will be consumed for a process, service, product or department. The correct answer is A.

In this model, decisions are taken through five different aspects of intuition. Starting with experience-based decisions, managers use their past experiences. The second aspect of intuition in decisions are feelings and emotions (affect-initiated decisions). In the third, managers make decisions based on skills, knowledge, and training (cognitive-based decisions). The fourth facet of intuitive decisionmaking utilizes values or ethics as guides. Lastly, the subconscious mental processing comes into play in executive decision-making. The main reason for managers’ using intuition is to make decisions fast and this is very important for the business organizations that function in more and more innovative and competitive environments. The correct answer is A.

Planning is the process of determining where to go by doing what. The correct answer is "A".

Long-term planning is high-level managers’ responsibility whereas middle-level managers are mainly responsible for medium-term planning and lower level managers are mainly responsible for planning for the short term. Even though the main responsibility for strategic planning lies on the shoulders of high-level managers in organizations, everyone needs to understand the long-term plans and objectives. The correct answer is "E".

Steps in the Managerial Planning Process: 

Set the goals and objectives
Identify resources that are needed
Determine the action plans
Implement and evaluate the plans
Identify adjustments to be made

The correct answer is "B".

Organizational goals should be measurable, results-oriented, realistic, challenging, and have a clear time frame. The correct answer is "D".

Strategic plans focus on the broad future and identify the long-term direction the organization will take as a whole. These plans ideally set forth the goals and objectives needed to accomplish the organization’s vision. The correct answer is "A".

Operational plans are the least complex, because of usually focusing on small, homogenous units. The correct answer is "C".

Master budget is an overall financial and operating plan for a forthcoming calendar or fiscal year. The correct answer is B".

Incremental budgeting uses the previous period’s budget or actual performance as a basis with some additions made for the new budget. The correct answer is "C".

The decision-making process is constituted by the following stages:
1. Identifying a problem or opportunity
2. Developing decision criteria
3. Generating decision alternatives
4. Evaluating alternatives
5. Selecting the best alternative
6. Implementing the decision
7. Monitoring and evaluating the results

The correct answer is "E".

Rational model of decision making favors objectivity, logic, and a formal process of
analysis over subjectivity and intuition. The correct answer is "A".