Chapter 1 Organizations and Organizational Effectiveness
1) Studying organizations is relatively easy because they are tangible. That is, we can see and touch them. F
2) One of the difficulties in studying organizations is that they are intangible. In other words, we cannot touch or see them. T
3) Entrepreneurship is the process by which people recognize opportunities to structure organizations more efficiently. F
4) Amazon.com was created to satisfy the need to buy books over the Internet. T
5) The degree of specialization in small companies tends to be lower than that of large companies. T
6) Transaction costs are the costs associated with negotiating, monitoring, and governing exchanges between people. T
7) The environment in which an organization operates is a major source of uncertainty. T
8) One reason that organizations exist is so that they can exert power and control. T
9) One reason for starting an organization is to create jobs for individuals. F
10) Economies of scope are cost savings achieved when an organization manufactures products in large volumes. F
11) Economies of scale are cost savings achieved when an organization manufactures products in large volumes. T
12) Transaction costs are the costs associated with negotiating, monitoring, and governing exchanges between people. T
13) Organizational structure is used to control and coordinate people's actions. F
14) Organizational theory is primarily concerned with how an organization can outperform its competitors. F
15) Organizations that operate in the same environment will always have similar organizational cultures. F
16) Organizational structure can be shaped by organizational culture. T
17) The external resource approach evaluates an organization's ability to obtain scarce resources.T
18) The internal systems approach considers corporate culture. T
19) The internal systems approach evaluates an organization's ability