Business Administration
Chapter Exam Questions
Course Introduction
Business Administration is a comprehensive course that introduces students to the fundamental principles and practices necessary for success in the modern business world. Covering key areas such as management, marketing, finance, accounting, human resources, and entrepreneurship, this course provides a broad overview of how organizations operate and make strategic decisions. Through case studies, interactive projects, and real-world applications, students gain the analytical, leadership, and problem-solving skills essential for navigating and thriving in diverse business environments.
Recommended Textbook
Essentials of Management 9th Edition by Andrew J. DuBrin
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Page 2
Chapter 1: The Managers Job
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Q1) According to the historically important work of Alfred D. Chandler, when choosing an organization structure, managers should first
A) study what the competition is doing.
B) be aware of the strategy.
C) draw a hundred boxes to choose from.
D) look for the least expensive structure.
Answer: B
Q2) The team leader is a strong disciplinarian who exerts more control than the traditional supervisor.
A)True
B)False
Answer: False
Q3) Which function of management is most involved with energizing, directing, activating, and persuading others?
A) leading
B) controlling
C) planning
D) organizing and staffing
Answer: A
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Chapter 2: International Management and Cultural Diversity
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Q1) The World Trade Organization
A) imposes tariffs on countries with a history of human rights violations.
B) liberalizes trade among many nations throughout the world.
C) lowers trade barriers and tariffs for developing countries.
D) increases trade barriers and tariffs for industrialized countries.
Answer: B
Q2) A country's balance of trade is
A) the trade deficit..
B) a trade surplus.
C) the difference between exports and imports in both goods and services.
D) the lowering of the value of currency
Answer: C
Q3) A big boost to international trade in recent years is that international laws have been quite successful in stopping unauthorized copies of products.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Ethics and Social Responsibility
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Sample Questions
Q1) Which one of the following questions is not asked in six-question ethics test?
A) How does it smell?
B) Who gets hurt?
C) What can we possibly get away with?
D) Would you tell your child (or young relative) to do it?
Answer: C
Q2) Whether to use corporate resources for personal use is an ethical dilemma that falls into a gray area for many people.
A)True
B)False
Answer: True
Q3) Are values closely related to ethics? Explain
Answer: Values are closely related to ethics. Values can be considered clear statements of what is critically important. Ethics become the vehicle for converting values into actions, or doing the right thing. A person's values also influence which kind of behaviors he or she believes are ethical.
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Chapter 4: Essentials of Planning
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Q1) Several laptops were stolen from an office by a group of people pretending to be part of the cleaning company. Every laptop stolen contained sensitive client data. After the theft, all clients had to be notified that their personal information may have been compromised. The breach of security prompted 25 percent of the company's clients to close their accounts.
1. What are policies and rules?
2. Could policies and rules have prevented this situation? Explain
Q2) Management by objectives (MBO) includes
A) reviewing group members' proposals.
B) creating action plans to achieve objectives.
C) establishing unit objectives.
D) all of the choices.
Q3) The major thrust of business strategy is to achieve a high level of operational effectiveness and efficiency.
A)True
B)False
Q4) A firm's strategy is a master plan for achieving its goals and objectives.
A)True
B)False
Q5) Using the planning model, how would you plan an event for 500 people.
Page 6
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Chapter 5: Problem Solving and Decision Making
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Q1) The ability to supply managers with high-quality information forms the major justification for information systems.
A)True
B)False
Q2) The effective decision maker attempts to minimize hunches and intuition in the process of making a decision.
A)True
B)False
Q3) The flow experience refers to
A) the ultimate involvement in work
B) a condition of heightened focus, productivity, and happiness.
C) both a & b
D) a design that allows for the flow of ideas, such as common meeting areas.
Q4) A research study showed that with respect to work creativity, encouragement from family and friends
A) had zero impact.
B) resulted in interference.
C) made a contribution.
D) made a contribution providing that the supervisor gave little encouragement.
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Chapter 6: Quantitative Techniques for Planning and Decision Making
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Q1) To speed up the completion of a project, the manager should attempt to give top priority to all activities not on the critical path.
A)True B)False
Q2) Explain the basics of a just-in-time (JIT) inventory system.
Q3) Suppose a small-business owner wants to repaint the walls inside the office. The office manager suggests buying a premium brand of paint because such paint stays fresher looking longer and does not chip as readily. What would a data-driven manager say?
Q4) CEO Maria is so convinced that company sales will triple, that she commits the company to lavish new expenses without making contingency plans if the sales growth does not take place. Maria might be falling into the A) prudence trap. B) overconfidence trap. C) recallability trap.
D) subjective thinking trap.
Q5) Time-series analysis is an historical approach to making forecasts. A)True B)False
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Chapter 7: Job Design and Work Schedules
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Q1) According to the contemporary view of jobs, the competent worker strictly follows his or her job description.
A)True
B)False
Q2) In the job characteristics model, the task dimension of autonomy leads to A) skill variety.
B) a feeling of meaningfulness.
C) a feeling of responsibility for work outcomes.
D) job satisfaction.
Q3) Contingent workers
A) share jobs with other employees.
B) are only hired when they are needed.
C) always work less than 40 hours per week.
D) work for more than one employer at a time.
Q4) Which of the following is the least effective method for preventing cumulative trauma disorder?
A) use the computer mouse whenever possible
B) rotate jobs to reduce repetitive hand and body movements
C) install equipment that minimizes awkward hand and body movements
D) use voice recognition systems as a substitute for keyboarding
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Chapter 8: Organization Structure, Culture, and Change
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Q1) A recommended technique for gaining support for change is to
A) discuss and negotiate sensitive issues.
B) figure out what to do as one goes along.
C) discourage worker participation in the changes.
D) avoid discussion about financial consequences.
Q2) The presentation of compelling reasons for change will often create a sense of urgency.
A)True
B)False
Q3) A perspective on national culture is that the introduction of values from another society into a retail business can be a competitive advantage.
A)True
B)False
Q4) Flexible organization structures, such as project and matrix structures, are the most likely to be found in
A) high-technology firms.
B) lumber mills.
C) pasta factories.
D) poultry processing plants.
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Chapter 9: Staffing and Human Resource Management
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Q1) Performance, as measured in performance evaluation systems, appears to have the three following components:
A) task performance, interpersonal performance, and mental performance
B) task performance, citizenship performance, and counterproductive performance
C) past performance, present performance, and future performance
D) performance related to customers, the manager, and coworkers
Q2) A forced ranking system of performance evaluation allows the manager to place all employees into one or two categories such as "outstanding" or "substandard."
A)True
B)False
Q3) The 360-degree performance appraisal offers the advantage of the person being rated receiving multiple opinions and viewpoints.
A)True
B)False
Q4) When the human resources group in helps build high-performance work practices, the group is contributing to business strategy.
A)True
B)False
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Chapter 10: Leadership
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Q1) Management focuses on
A) continuous improvement of the status quo.
B) change that compels a group to innovate.
C) eliciting cooperation and teamwork.
D) having a vision
Q2) A problem noted with mentoring others is that it tends to have a negative effect on the manager's own leadership effectiveness.
A)True
B)False
Q3) Research results associated with empowerment varied with the country and culture. A)True
B)False
Q4) Charismatic leaders are able to A) inspire others.
B) intimidate group members.
C) get coworkers to support each other.
D) get group members to compete against one another.
Q5) Describe what a manager must do to become a transformational and charismatic leader.
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Chapter 11: Motivation
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Q1) Decreased job security caused by downsizing and outsourcing and global outsourcing, along with reduced benefits, are contributors to lowers= engagement by employees.
A)True
B)False
Q2) A recommended way for a manager to motivate through pride is to
A) offer financial incentives for displays of pride.
B) celebrate attaining small goals as much as attaining the major goal.
C) celebrate attaining the major goal, and pay little attention to small goals.
D) distribute T-shirts, hats, and cups that read, "I am proud."
Q3) The motivational idea behind enabling employees to own company stock is that if the stock goes down in value, employees can purchase a bargain.
A)True
B)False
Q4) A potential problem with relying on goals to motivate workers is that A) they might use unethical means to attain goals.
B) they might receive praise from a supervisor.
C) they might receive a sense of satisfaction from a job well done.
D) it might lead to turnover.
Q5) Explain how goal theory can be used to motivate people on the job.
Page 13
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Chapter 12: Communication
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Q1) Organizational politics refers to
A) informal approaches to gaining power
B) advantage through means other than merit or luck.
C) both a & b
D) huddling
Q2) A manager's purpose in using strategic networking is to get help in identifying and capitalizing on new opportunities for the company.
A)True
B)False
Q3) Aspects of nonverbal communication include
A) hand and body gestures.
B) voice quality.
C) body placement.
D) all of the choices
Q4) Identify and describe seven communication barriers in the workplace.
Q5) Sending thank-you notes to people is too transparent to be an effective political tactic.
A)True
B)False
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Chapter 13: Teams, Groups, and Teamwork
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Q1) The shakedown period of group development is referred to as the ____ stage. A) forming
B) storming
C) norming
D) performing
Q2) Relationship conflict focuses on personalized, individually oriented issues.
A)True
B)False
Q3) One component of empowerment is seeing the impact of the work group's effort on other interested parties.
A)True
B)False
Q4) When a group deals with creative tasks, it is best to have a homogeneous group.
A)True
B)False
Q5) To accomplish its work, videoconferencing would be the most important for a A) top-management team.
B) cross-functional team.
C) crew.
D) virtual team.
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Chapter 14: Information Technology and E-Commerce
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Q1) The beauty of a company extranet is that anybody around the world with online access can acquire important information about a company.
A)True
B)False
Q2) An example of e-leadership would be for the team leader to
A) set up a chat room to deal with an important work issue.
B) have a luncheon buffet for team members.
C) visit workers at their home when they are ill.
D) established a forced-ranking system within the group.
Q3) The Internet facilitates globalization in part because more and more countries throughout the world have developed their telecommunications infrastructure.
A)True
B)False
Q4) Microblogging refers to
A) sending brief updates online about work activities to employees.
B) e-leadership.
C) wikis.
D) setting up a chat room.
Q5) How has the Internet enhanced globalization?
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Chapter 15: Essentials of Control
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Q1) Describe the use of cash flow to measure the financial health of a firm.
Q2) A caution about cost cutting is that it can lead to A) low morale and lower quality goods and services.
B) the image of a cheap company
C) both a & b
D) increase the cost of supplies
Q3) The EVA (economic value added) is a guide to estimating how much a company earns in comparison to A) competitive firms.
B) a stock index such as the Dow Jones industrial average.
C) the cost of capital.
D) the average return on government bonds.
Q4) The financial measure, free cash flow takes into account the idea that managers need to make capital investments to maintain or expand the company's fixed assets. A)True B)False
Q5) Information systems are widely used for computer-aided monitoring of work. A)True B)False
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Chapter 16: Managing Ineffective Performers
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Q1) Employees who believe in a just world are likely to A) think that punishment is unjust.
B) take an active role in punishing coworkers.
C) demand due process when they have been punished.
D) accept punishment when they have performed poorly.
Q2) Showing empathy for an employee stems naturally from A) giving advice.
B) imposing progressive discipline.
C) active listening
D) asking closed-end questions.
Q3) Studies of sales representatives indicated that basing compensation too much on commissions can result in counterproductive practices such as undercharging for services.
A)True
B)False
Q4) Just punishment informs employees that A) certain types of misconduct will not be tolerated.
B) they will be discharged.
C) they will be transferred.
D) they will be retrained.
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Chapter 17: Enhancing Personal Productivity and Managing
Stress
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Q1) Information technology specialist Marcy engages in true work streamlining when she A) stops working one weekends.
B) works faster than her coworkers.
C) eliminates sending a few unnecessary reports.
D) has the memory on her notebook computer upgraded.
Q2) Workers are the most likely to suffer from attention deficit trait when they
A) are bombarded with simultaneous and competing messages.
B) are tempted to visit recreational Web sites during working hours.
C) participate in a program of behavior modification.
D) work through lunch hour.
Q3) A key feature of a productivity-boosting nap is that the person naps
A) right next to the computer.
B) for about one and one-half hours.
C) during meetings, yet keeping the eyes open.
D) for a brief time period during the workday.
Q4) The office technology you choose to accomplish a task is more important than your imagination and focus in terms of achieving high productivity.
A)True
B)False
Page 19
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