Jacobs

IMEN 205: General Review Questions
Read all the slides before exam, and answer all questions.
1. What is the definition of controlling?
Compelling Events to Conform to Plans
Managementprocessin which the
(A)actual performanceis compared with planned performance,
(B)difference between the two is measured,
(C)causescontributing to the difference are identified, and
(D) correctiveactionis taken to eliminate or minimize the difference.

2. What are the types of control?
Three Types of Control
* Financial
* Human Resource
* Social

3. What are the financial budgeting documents?
Identify sources of cash and intended uses
* Cash Budgets
* Capital Expenditure Budgets
* Balance Sheet Budget

4. List the major financial statements
* BalanceSheet
* Shows the firm’s financial position at a particular instant in time
* Assets and liabilities
* Income Statement
* Shows financial performance of a firm over a period of time
* Cash Flow
* Shows where cash comes from and what it is used for

5. List the Responsibility Centers
* Cost Centers
* Manager’s primary concern is control of costs
*Revenue Center
* Manager’s primary concern is attaining revenue target
* Profit Center
* Manager has more freedom to manipulate costs to increase profit

6. What is a balanced scorecard?
* “strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to thevision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.”
* The balanced scorecard translates the organization's strategy into four perspectives, with a balancebetween the following:
* between internal and external measures
* between objective measures and subjective measures
* betweenperformance results and the drivers of future results

7. List and know the definitions, advantages and disadvantages of all legal forms for organizations.
* Sole Proprietorship
* Few legal restrictions
* Owner forced to make all decisions
* Profits taxed once
* Partnership
* Two or more partners
* Easy to organize
* Partners do individual tax* Unlimited liability for partners debts
* Limited Liability Company (LLC)
* Owners have limited personal liability
* Only taxed once
* Corporations
* Owned by shareholders
* No liability beyond stock
* Taxed twice
* Subject to many state and federal controls
* Cooperatives
* Owned by users and customers
* Usually tax free8. Explain in detail the structural dimensions of an organization.
* Formalization – amount of written documentation in the organization
* Specialization – (division of labor) degree to which organizational tasks are subdivided into separate jobs.
* Standardization – extend to which similar work activities are performed in uniformed manner.
* Hierarchy of Authority – describeswho reports to whom and the span of control for each manager
* Span of control – number of employees reporting to a supervisor
* Narrow span of control => tall hierarchy
* Complexity – refers to the number of activities or subsystems within the organization.
* Vertical complexity – levels of hierarchy
* Horizontal complexity – number of job titles or departments* Spatial complexity – number of geographical locations
* Centralization – hierarchical level that has authority to make decisions.
* Centralized organization => top managers make decisions
* Professionalisms – level of formal education and training of employees.
* Personnel Ratios – deployment of people to various functions and departments.
* Administrative...