Application of Mintzberg's Roles to Size of Organization

question 111

Multiple Choice

Application of Mintzberg's Roles to Size of Organization
John is the CEO of a large manufacturing firm that produces construction equipment. George is the owner and operator of a small business that produces one of the key engine components for John's manufacturing firm. Both are managers; however, George has noticed some differences between his activities and the activities John performs. George spends much of his time in outwardly directed activities such as meeting with customers and potential investors. John seems to spend more of his time on activities that are directed internally, such as allocating resources to appropriate departments. George wonders what accounts for this difference, and he goes to a management consultant for input.
-The consultant tells George that the major difference between managers of large organizations and small business owners is which of the following?

• A)The manager of a large organization is more likely to be a generalist.
• B)The roles that are played by the managers are different.
• C)The proportion of time spent on each function is different.
• D)There is no difference between manager roles.

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Definitions:

Lockup Agreement

The part of the underwriting contract that specifies how long insiders must wait after an IPO before they can sell stock.

Economies of Scale

Cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

White Knight

A corporation or individual that acquires a corporation on the verge of being taken over by forces deemed undesirable by the company's board or management.

Hostile Takeover

An acquisition attempt by a company or investor to acquire another company against the wishes of the target company's management and board of directors.