Management And Accounting Web

Framework for Management Accounting MC Questions

Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida

Framework Main Page | Framework Discussion Questions | Graduate MA Course

(Note: Some of these questions are from the extra MC questions for MAAW's Book Chapter 1)

1. Which of the statements below is true with regard to the difference between communitarian capitalism and individualistic capitalism?

a. An individualistic system includes the profit motive, while a communitarian system excludes the profit motive.
b. An individualistic system rewards individuals on the basis of ability and performance, while communitarian system rewards individuals on the basis of need.
c. An individualistic system emphasizes competition at all levels as the key to optimizing performance, while a communitarian system places a greater emphasis on cooperation at all levels to optimize performance.
d. a and b
e. a and c

2. Which of the following statements is true?

a. Communitarian organizations tend to have fewer layers of management than individualistic organizations.
b. Employees of communitarian organizations tend to have more external mobility than employees of individualistic organizations.
c. Employees of communitarian organizations tend to be more loyal to their companies than employees of individualistic organizations.
d. a and b.
e. a and c.

3. Which of the following is (are) applicable to an economic system based on communitarian capitalism?

a. Short term profit maximization is the main objective.
b. An underlying assumption is that work mainly provides disutility.
c. The hierarchy of an organization's constituencies is: employees 1st, customers 2nd, and stockholders 3rd.
d. a and b.
e. a and c.

4. Companies that embrace the concepts and beliefs of communitarian capitalism tend to emphasize

a. long run performance, cooperation and cross training workers.
b. cooperation, specialized workers and merit ratings.
c. competition, cross training and employee empowerment.
d. Short run performance, stockholder interests and specialized workers.
e. None of these.

5. Companies that embrace the concepts and beliefs of individualistic capitalism tend to emphasize

a. cooperation, specialized workers and merit ratings.
b. competition, cross training and employee empowerment.
c. long run performance, cooperation and cross training workers.
d. Short run performance, stockholder interests and specialized workers.
e. None of these.

6. Which of the following is (are) applicable to an economic system based on individualistic capitalism?

a. Promoting competition between individuals is viewed as a way to improve efficiency.
b. Managers tend to blame the system for most of the variation in performance.
c. The assumptions of the system are inconsistent with the JIT philosophy.
d. a and b.
e. a and c.

7. Which of the following groups of assumptions is consistent with the communitarian or collectivist type management view?

a. Uneducated workforce, bottom up empowered workers, individual incentives.
b. Educated workforce, top down centralized control, group incentives.
c. Uneducated workforce, top down centralized control, individual incentives.
d. Educated workforce, bottom up empowered workers, group incentives.
e. None of the above.

8. The key difference between socialism and capitalism is the emphasis placed on

a. cooperation and teamwork.
b. long term growth.
c. property ownership.
d. the profit motive.
e. none of these.

9. Individualistic capitalism is more closely associated with which of the following?

a. state capitalism.
b. state socialism.
c. state capitalism.
d. mixed state related & private enterprise capitalism.
e. free enterprise capitalism.

10. Communitarian capitalism is more closely associated with which of the following?

a. state capitalism.
b. state socialism.
c. state capitalism.
d. mixed state related & private enterprise capitalism.
e. free enterprise capitalism.

11. McGregor described two very different management theories referred to as Theory X and Theory Y. Which of the following statements is consistent with the two types of capitalism described in Chapter 1 and McGregor's description of these theories?

a. Communitarian capitalism is more closely associated with the Theory X management attitude towards individual employees.
b. Individualistic capitalism is more closely associated with Theory Y management attitude towards individual employees.
c. Communitarian capitalism is more closely associated with the Theory Y management attitude towards individual employees.
d. Both types of capitalism are more closely associated with the Theory X management attitude towards individual employees.
e. Both types of capitalism are more closely associated with the Theory Y management attitude towards individual employees.

12. Which of the following statements is consistent with the two types of capitalism described in Chapter 1 and McGregor's description of Theory X and Theory Y?

a. Communitarian capitalism is more closely associated with the Theory X management attitude towards groups of employees.
b. Individualistic capitalism is more closely associated with the Theory X management attitude towards groups of employees.
c. Individualistic capitalism is more closely associated with the Theory Y management attitude towards groups of employees.
d. Both types of capitalism are more closely associated with the Theory X management attitude towards groups of employees.
e. Both types of capitalism are more closely associated with the Theory Y management attitude towards groups of employees.

Blake and Moulton developed a managerial grid as illustrated in the graphic below.

Managerial Grid

13. Which of the blocks in the grid would most closely fit a company embracing the concepts associated with McGregor's description of Theory X?

a. 1,1
b. 1,9
c. 9,9
d. 5,5
e. 9,1

14. Which of the blocks in the grid would most closely fit a company embracing the concepts associated with McGregor's description of Theory Y?

a. 1,1
b. 1,9
c. 9,9
d. 5,5
e. 9,1

15. Which of the blocks in the grid would most closely fit a company embracing the concepts associated with individualistic capitalism?

a. 1,1
b. 1,9
c. 9,9
d. 5,5
e. 9,1

16. Which of the blocks in the grid would most closely fit a company embracing the concepts associated with communitarian capitalism?

a. 1,1
b. 1,9
c. 9,9
d. 5,5
e. 9,1

17. Ouchi described three control mechanisms including the market, bureaucracy, and clan. Which of the statements below is more accurate.

a. A company embracing the concepts associated with communitarian capitalism would tend to use the bureaucracy control mechanism.
b. A company embracing the concepts associated with individualistic capitalism would tend to use the clan control mechanism.
c. A company embracing the concepts associated with communitarian capitalism would tend to use the clan control mechanism.
d. Both types of companies would tend to use the bureaucracy control mechanism.
e. Both types of companies would tend to use the clan control mechanism.

18. Ouchi and Jaeger discussed seven dimensions related to type A (American), J (Japanese), and Z (Modified American) organizations. Which type (or types) of organization(s) is (are) characterized by lifetime employment with very low employee turnover?

a. Type A
b. Type J
c. Type Z
d. a and c
e. b and c

19. Referring to the Ouchi and Jaeger organizational types again, which type (or types) of organization(s) is (are) characterized by individual responsibility rather than collective responsibility?

a. Type A
b. Type J
c. Type Z
d. a and c
e. b and c

20. Referring to the Ouchi and Jaeger organizational types again, which type (or types) of organization(s) is (are) characterized by specialized career paths ?

a. Type A
b. Type J
c. Type Z
d. a and c
e. b and c

21. Referring to the Ouchi and Jaeger organizational types again, which type (or types) of organization(s) is (are) characterized by a holistic concern for employees?

a. Type A
b. Type J
c. Type Z
d. a and c
e. b and c

22. Referring to the Ouchi and Jaeger organizational types again, which type (or types) of organization(s) has (or have) the characteristics completely consistent with communitarian capitalism?

a. Type A
b. Type J
c. Type Z
d. a and c
e. b and c

Framework MC Solution