Question 1

PepsiCo developed an Internet-based reporting process and established a dedicated international phone lines so that international employees can more easily report misconduct. These are examples of _____________ controls.

Accepted Answer

Corrective controls are measures taken to fix problems after they have been identified. By developing an Internet-based reporting process and establishing dedicated international phone lines for reporting misconduct, PepsiCo is implementing mechanisms to address and correct issues related to misconduct after they are reported.

Question 2

__________ is (are) not one of the four primary sources of control in most organizations.

Accepted Answer

Competitors are not considered a primary source of control within an organization. Control typically comes from internal sources such as the organization itself, its stakeholders, and various groups within the organization, rather than from external entities like competitors.

Question 3

__________ control refers to pressures on organizations from outside sources, such as governmental agents and customers, to change the organization's behaviors.

Accepted Answer

Stakeholder control refers to the influence exerted by external parties who have an interest or stake in the organization, including governmental agents and customers, pushing the organization to modify its behaviors or policies.

Question 4

The U.S. Environmental Protection Agency ________________.

Accepted Answer

The U.S. Environmental Protection Agency (EPA) is responsible for developing and enforcing regulations under existing environmental laws enacted by Congress, researching and setting national standards for environmental programs, and assisting states and Indian tribes in achieving environmental quality goals, which includes issuing sanctions and taking other steps as necessary.

Question 5

At a university, the management class is required to write a ten-page term paper. Alia Wakil and her friends discovered that two of her classmates were cheating by using term papers written by other students in other courses. Instead of telling the teacher, Wakil and her friends confronted the two students and convinced them not to cheat. This type of control is best described as a(n) __________ source of control.

Accepted Answer

This type of control is best described as a group source of control because it involves members of a group (in this case, classmates) regulating the behavior of other members within the same group without involving formal organizational structures or authorities.

Question 6

The formal rules and procedures for preventing or correcting deviations from plans and for achieving desired goals are also known as a(n) __________ controls.

Accepted Answer

Organizational controls are formal rules and procedures designed to prevent or correct deviations from plans and to achieve desired goals within an organization.

Question 7

A(n) __________ control refers to the norms and values that team members share and maintain through rewards and punishments.

Accepted Answer

Group control refers to the mechanisms by which norms and values within a team are maintained, often through a system of rewards and punishments, reflecting the collective behavior and expectations of the group.

Question 8

__________ control consists of the guiding mechanisms that operate consciously and unconsciously within each person.

Accepted Answer

Individual self-control refers to the internal guiding mechanisms, both conscious and unconscious, that help individuals regulate their behavior and actions.

Question 9

To be effective, control systems should be __________.

Accepted Answer

Effective control systems need to be acceptable to those who use them, objective in their measurement and evaluation, and complete in their coverage of the activities they are designed to control.

Question 10

A(n) __________ control is impartial and cannot be manipulated by employees for personal gain.

Accepted Answer

Objective controls are designed to be impartial and are based on measurable outcomes that cannot be easily manipulated by employees, ensuring fairness and integrity in the evaluation process.

Question 11

__________ controls are recognized as necessary and appropriate.

Accepted Answer

The answer of __________ controls are recognized as necessary and...

Question 12

Dylan Wymann is the CEO of the DMW Corporation. At the annual banquet, Wymann praised the supervisor of the marketing division for minimizing costs through reducing errors at work. Wymann said the marketing department completely met all its projected goals by providing objective rules that were applied in a timely manner. Thus, only the __________ criterion for effective control systems was not mentioned.

Accepted Answer

The answer of Dylan Wymann is the CEO of the...

Question 13

One way to assess the amount of needed formal organizational controls is to examine __________.

Accepted Answer

Examining the costs and benefits of implementing formal organizational controls helps in assessing their necessity. This approach ensures that the controls are not only effective but also efficient, avoiding unnecessary expenditure or overly restrictive measures that could hinder organizational performance.

Question 14

At PepsiCo, employees cannot accept a gift, favor, or special treatment from an individual or corporation which conducts or seeks to conduct business with PepsiCo, unless:

Accepted Answer

All of the options listed are conditions under which an employee at PepsiCo could accept a gift or favor without violating the company's policy on conflicts of interest or ethical standards. These conditions ensure that any acceptance of a gift does not compromise the employee's objectivity, the company's integrity, or its reputation.

Question 15

Giving gifts to ______________ and employees is highly regulated and often prohibited at PepsiCo.

Accepted Answer

Gifts to government officials are highly regulated and often prohibited at PepsiCo to avoid conflicts of interest and comply with anti-bribery laws.

Question 16

Cost-benefit analysis suggests that __________.

Accepted Answer

Cost-benefit analysis often shows that beyond a certain point, the effectiveness of controls declines with further increases in control, due to increasing costs and diminishing returns on additional control measures.

Question 17

One way to develop effective, formal organizational controls is to use a cost-benefit analysis. A cost-benefit analysis addresses each of the following questions except __________.

Accepted Answer

Cost-benefit analysis focuses on evaluating the financial implications of implementing control systems, including the costs and benefits of different alternatives, rather than assessing competitors' potential actions.

Question 18

The component(s) of internal control include:

Accepted Answer

All of the choices listed (risk assessment, information and communication, and monitoring) are components of internal control systems. These elements work together to help organizations achieve their objectives related to operations, reporting, and compliance.

Question 19

After calculating the savings and expenditures related to the implementation of a new computer assembly machine, Murdock Construction Company realized that after a certain point adding any more machines would actually result in a decrease in profitability. Murdock Construction probably made this determination using a(n) __________.

Accepted Answer

A cost-benefit analysis is used to evaluate the financial implications of decisions, such as the implementation of new machinery, by comparing the costs and benefits associated with the decision. In this case, Murdock Construction Company likely used a cost-benefit analysis to determine that beyond a certain point, the costs of adding more machines outweigh the benefits, leading to a decrease in profitability.

Question 20

The __________ is a process for detecting and eliminating or reducing deviations from an organization's established standards.

Accepted Answer

The corrective control model is designed to identify and correct deviations from set standards within an organization, ensuring that operations align with established goals and objectives.

Quiz 10: Achieving Organizational Control