

Business Administration
Exam Questions
Course Introduction
Business Administration is a multidisciplinary course that introduces students to the fundamental principles of managing and operating organizations. It covers key topics such as management, marketing, finance, operations, human resources, and strategic planning, providing a broad understanding of how businesses function in a dynamic environment. Through theoretical frameworks and practical case studies, students develop essential skills in leadership, decision-making, problem-solving, and effective communication, preparing them for a variety of roles in the business sector or for advanced study in related fields.
Recommended Textbook
Modern Management Concepts and Skills 14th Edition by Samuel C. Certo
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21 Chapters
1890 Verified Questions
1890 Flashcards
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Page 2

Chapter 1: Principles of Modern Management: Concepts and Skills
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Sample Questions
Q1) In developing management skills, managers should keep in mind that the value of individual management skills will tend to vary from manager to manager, depending on the ________.
A) corresponding supervisor
B) specific organizational situations faced
C) amount of recognition and reward given
D) the skills of employees
E) attitudes of those involved
Answer: B
Q2) What challenges exist for women choosing careers in management?
Answer: Because women have not traditionally had the opportunity to become managers in their firms, they may lack the social and networking contacts that men have traditionally had throughout their careers. Women have also been considered to be on the "mommy track" when they have children and thus are often questioned as to what their allegiance is to in terms of the company or their families. The prevalence of sexual harassment in today's workplaces often includes women, though we are seeing a definite increase in male and same gender harassment.
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3

Chapter 2: Managers, Society, and Sustainability
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Sample Questions
Q1) Which of the following are best categorized as "outside" stakeholders of an organization?
A) Stockholders
B) Managers
C) Employees
D) Customers
E) Shareholders
Answer: D
Q2) Haroon wants to file a complaint against EatFry, a fast-food restaurant, because he was rejected in a job interview with the firm. Haroon believes that he was discriminated against because of ethnicity. Which of the following federal agencies should he approach?
A) Consumer Product Safety Commission
B) Mining Enforcement and Safety Administration
C) Occupational Safety and Health Administration
D) Environmental Protection Agency
E) Equal Employment Opportunity Commission
Answer: E
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Chapter 3: Management and Diversity
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Sample Questions
Q1) Treating an issue, person, or behavior unjustly or inequitably on the basis of stereotypes and prejudices is known as ________.
A) tokenism
B) discrimination
C) ethnocentrism
D) bicultural conflict
E) xenocentrism
Answer: B
Q2) According to Donaldson and Scannell, managers are the most effective with respect to interacting in a diverse workforce in the ________ stage.
A) conscious competition
B) conscious incompetence
C) conscious competence
D) unconscious competence
E) unconscious incompetence
Answer: D
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Chapter 4: Managing in the Global Arena
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Sample Questions
Q1) A country in which an investment is made by a foreign company is termed as a(n)
A) host country
B) parent country
C) home country
D) expatriate country
E) native country
Q2) Which of the following would not typically be included in training designed to prepare expatriates for their international assignments?
A) Culture profiles
B) Cultural adaptation
C) Logistical information
D) Application of their new job
E) Performance appraisals of employees in their current jobs
Q3) ________ are least expensive to employ for organizations that operate globally.
A) Host-country nationals
B) Expatriates
C) Third-country nationals
D) Repatriates
E) Migrant workers
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Chapter 5: Plans and Planning Tools
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Sample Questions
Q1) ________ is the key to a successful planning process.
A) Classification
B) Repetition
C) Implementation
D) Evaluation
E) Standardization
Q2) One of the organizational objectives of Valpo Industries, a pharmaceutical firm, is "to develop a new line of drugs for the treatment of life-threatening diseases such as cancer and AIDS, through the use of patented technology and processes." According to Drucker, this objective relates to ________.
A) market standing
B) innovation
C) productivity
D) profitability
E) public responsibility
Q3) Premises are the assumptions upon which alternatives to reaching organizational objectives are based.
A)True
B)False
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Page 7

Chapter 6: Making Decisions
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Sample Questions
Q1) A donation of $1 million has been made to the hospital where Joe is CEO. In determining how to best allocate and utilize the funds, Joe will be making a ________ decision.
A) programmed
B) nonprogrammed
C) routine
D) scheduled
E) unscheduled
Q2) A manager's use of judgment, intuition, and creativity would most likely be classified as ________.
A) modern decision-making techniques appropriate for handling programmed decisions
B) traditional decision-making techniques appropriate for handling nonprogrammed decisions
C) traditional decision-making techniques appropriate for handling programmed decisions
D) modern decision-making techniques appropriate for handling nonprogrammed decisions
E) techniques that can be used for programmed as well as nonprogrammed decisions
Q3) What are the orientations of weak decision makers?
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Chapter 7: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Sample Questions
Q1) The Forrester Group of companies has many products, including a fertilizer manufacturing unit. While this unit has never been a source of high revenues in the past, the SBU has increasingly become an area of concern. For the last few years, this SBU has not generated enough business for the Forrester Group and the parent company does not see things changing in the future without substantial investment. In a market with low growth potential, its already low market share has declined further. Which of the following strategies is the Forrester Group likely to choose for this SBU?
A) stability
B) focus
C) retrenchment
D) growth
E) divestiture
Q2) ________ refers to the process by which firms undertake strategic and tactical actions and how competitors respond to these actions.
A) Strategic control
B) Environmental analysis
C) Competitive dynamics
D) Strategy implementation
E) SWOT analysis
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Chapter 8: Fundamentals of Organizing
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Sample Questions
Q1) In general, the closer the subordinates are in location to each other, the more of them managers can supervise effectively.
A)True
B)False
Q2) Which of the following is the most widely used basis for departmentalization?
A) customer
B) work functions
C) geography
D) matrix
E) product or service
Q3) Which of the following statements best defines a matrix departmentalization?
A) Employees reporting to only one manager
B) Permanent relationships between managers and employees
C) Employees pulled out of assigned department for the purpose of a special project
D) Managers aligning resources with company objectives
E) Employees and managers working unilaterally
Q4) Discuss the connection between the planning and organizing functions of management.
Q5) What role does division of labor play in the organizing function of management?
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Chapter 9: Responsibility, Authority, and Delegation
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Sample Questions
Q1) Sara has delegated responsibility for completing next week's employee work schedule to her employee, Emma. However, Sara needs to remember she remains ________ for completion and effectiveness of the work schedule.
A) accountable
B) responsible
C) obligated
D) effective
E) efficient
Q2) The three main types of authority that can exist within an organization are ________.
A) line authority, staff authority, and formal authority
B) staff authority, informal authority, and formal authority
C) line authority, staff authority, and functional authority
D) line authority, functional authority, and formal authority
E) formal authority, informal authority, and functional authority
Q3) The accountability concept implies that reward or punishment is dependent upon performance.
A)True
B)False
Q4) Explain the concepts of line, staff, and functional authority.
Page 11
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Chapter 10: Human Resource Management
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Sample Questions
Q1) What is the role of training in providing appropriate human resources to an organization?
Q2) Which of the following is an objective of a human resource inventory?
A) advertising a vacant organizational position in a publication whose readers are likely to be interested in filling the position
B) keeping the management up to date about the possibilities for filling a position from within
C) eliminating barriers and increasing opportunities for the purpose of increasing the utilization of underutilized and/or disadvantaged individuals
D) scouting external sources to identify prospective individuals to be employed via external recruitment
E) increasing the productivity of employees by influencing their behavior
Q3) The management inventory card, the position replacement form, and the management manpower replacement chart are three separate recordkeeping devices for a human resource inventory.
A)True
B)False
Q4) Describe the sources of human resources inside an organization.
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Chapter 11: Organizational Change: Stress, Conflict and Virtuality
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Sample Questions
Q1) Attitudes, leadership skills, and communication skills are ________.
A) structural factors
B) technological factors
C) communication factors
D) people factors
E) informative factors
Q2) "The only thing constant is change" is a very common saying. If this saying is indeed true, why then is it individuals have such difficult times accepting change?
Q3) The probability of organizational survival and growth declines when ________.
A) visibility is low
B) credibility is high
C) accountability is high
D) mobility is low
E) stability is low
Q4) Briefly explain the dynamics of organizational change and stability.
Q5) Briefly describe the four strategies used to manage conflicts.
Q6) Explain the concept of grid organizational development (grid OD).
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Q7) What value does Organizational Development (OD) bring to companies and management?

Chapter 12: Influencing and Communication
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Sample Questions
Q1) Employee A passes information to everyone else on the grapevine. This pattern is known as the ________.
A) gossip grapevine
B) cluster grapevine
C) single-strand grapevine
D) probability grapevine
E) serial grapevine
Q2) Which of the following is one of the primary managing activities?
A) building corporate culture
B) reducing conflicts
C) eliminating workplace stress
D) creating norms
E) maintaining work-life balance
Q3) How can managers promote formal organizational communication?
A) by listening attentively to messages that come through formal channels
B) by eliminating informal communication channels in the organization
C) by instituting a circular pattern of organizational communication
D) by strictly regulating employee access to formal communication channels
E) by using low involvement channels instead of high involvement channels
Q4) What is the importance of lateral communication in an organization?
Page 14
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Chapter 13: Leadership
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Sample Questions
Q1) What are the major forces in a situation that influence a manager's determination of how to make decisions? Explain briefly.
Q2) Derek Bonnell is the editor of a leading magazine. He rarely exerts positional powers and remains friendly with his subordinates. He also takes care to accommodate the personal needs of his subordinates as far as possible. Derek is a(n) ________.
A) supportive leader
B) accommodating leader
C) participative leader
D) directive leader
E) achievement-oriented leader
Q3) If the time available to come to a decision on a problem is very limited, it is most likely that ________.
A) the manager will leave the subordinates to make the decision
B) the skills of the subordinates will be effectively used
C) the level of confidence the manager has in followers will be high
D) the skills of the manager as a decision maker will play a secondary role
E) the manager will take a boss-centered approach to leadership
Q4) Compare and contrast the life cycle theory of leadership with Fiedler's model.
Q5) Explain the Vroom-Yetton-Jago model of leadership.
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Chapter 14: Motivation
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Sample Questions
Q1) Which of the following is an example of an extrinsic reward?
A) personal satisfaction of helping a peer
B) providing an opportunity for advancement
C) getting a salary increment
D) giving an employee a challenging responsibility
E) a sense of achievement when an employee's performance rating increases
Q2) According to Maslow, if an individual is driven to get respect from others, the person is being motivated by the ________.
A) self-actualization needs
B) esteem needs
C) social needs
D) security needs
E) physiological needs
Q3) Behavior modification is a program that focuses on managing human activity by controlling the consequences of performing that activity, such as rewards and punishments.
A)True
B)False
Q4) What is flextime? What are the advantages and disadvantages of using flextime?
Q5) Briefly explain Likert's management systems.
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Chapter 15: Groups and Teams
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Sample Questions
Q1) What steps can management take to help prevent "groupthink" from occurring in formal groups?
Q2) Which of the following is a purely procedural step that could be taken to increase the probability that a committee will be successful?
A) rephrasing ideas already expressed
B) specifying the authority of the committee
C) bringing all members into active participation
D) stimulating further thought by members
E) keeping the goals of the group flexible
Q3) Identify the most mature stage of the formal group development process.
A) decision making
B) acceptance
C) group solidarity
D) communication
E) group control
Q4) Define a committee. List the four major reasons for establishing committees within an organization.
Q5) List the six task-related steps that help managers build effective work teams.
Q6) Discuss the significant differences that exist between a group and a team.
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Chapter 16: Managing Organization Culture
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Sample Questions
Q1) ________ is not established at once by a manager, but evolves slowly over time.
A) Corporate governance
B) Organizational ecology
C) Organizational space
D) Corporate behavior
E) Organization culture
Q2) ________ refers to a formal activity conducted on important organizational occasions.
A) Organizational storytelling
B) Organizational saga
C) Organizational myth
D) Organizational ceremony
E) Organizational identification
Q3) What aspect of organization culture is reflected in the extent to which it facilitates the achievement of organizational mission and objectives?
A) homogeneity
B) profitability
C) economy
D) diversity
E) health
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Chapter 17: Controlling, Information, and Technology
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Sample Questions
Q1) "Paralysis by analysis" is generally caused by ________.
A) information overload
B) insufficient information
C) lack of timely information
D) inappropriate information
E) data contamination
Q2) Which of the following is the last step in the controlling process?
A) comparing measured performance to standards
B) taking corrective action
C) measuring performance
D) establishing standards
E) establishing units for measuring performance
Q3) Three activities that improve IS effectiveness are managing user satisfaction, managing the IS workforce, and managing IS security.
A)True
B)False
Q4) Explain the ways an individual can be successful in increasing his or her personal power.
Q5) Identify the methods by which managers can make controlling a successful activity.
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Chapter 18: Production and Control
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Sample Questions
Q1) Which of the following statements is true of the control tools used in organizations?
A) It helps to pinpoint organizational strengths and weaknesses.
B) It is generally used during the product design stage.
C) Control tools are not used for day-to-day operations.
D) Employee control is not possible with the use of these tools.
E) These tools are used by workers more than managers.
Q2) Which of the following would be a rational justification for selecting algebraic break-even method instead of graphic break-even method?
A) Algebraic method is a quick yet accurate method of determining break-even point.
B) Graphic break-even method is less accurate when there are multiple relationships.
C) Unlike algebraic method, all critical elements cannot be shown in the graphic method.
D) Algebraic method is better suited to analyze cumulative relationships of break-even point.
E) Information such as potential profit and loss can be better studied using the algebraic method.
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Chapter 19: Appendix 1: Managing History and Current Thinking
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Sample Questions
Q1) The use of mathematical models to investigate the decision situation is typical in
A) the classical approach
B) lower-level management analysis
C) upper-level management analysis
D) management science applications
E) motion study techniques
Q2) One of the general principles of management suggested by Fayol is centralization. What is centralization?
A) Centralization is increasing the importance of the subordinate role.
B) Centralization directs that the entire organization should be moving toward a common objective.
C) Centralization is lowering the importance of the subordinate role.
D) Centralization directs that all materials and people related to a specific kind of work should be assigned to the same general location.
E) Centralization directs that the entire organization need not be moving toward a common objective.
Q3) What is the behavioral approach to management?
Q4) What are the steps involved in using the scientific method?
Page 21
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Chapter 20: Management and Entrepreneurship: Handling
Start-Ups and New Ventures
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Sample Questions
Q1) ________ involves the recognition, evaluation, and exploitation of opportunities that create social value as opposed to personal or shareholder wealth.
A) Corporate social entrepreneurship
B) Intrapreneurship
C) Intrepreneurship
D) Corporate entrepreneurship
E) Social entrepreneurship
Q2) Exploitation exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity.
A)True
B)False
Q3) ________ refers to an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment.
A) Social networking
B) Entrepreneurial opportunity
C) Entrepreneurial alertness
D) Feasibility analysis
E) Entrepreneurial risk
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Chapter 21: Encouraging Creativity and Innovation
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Sample Questions
Q1) Which of the following steps of the innovation process establishes a new idea that could help the organization be more successful?
A) developing
B) diffusing
C) inventing
D) integrating
E) monitoring
Q2) Which of the following statements best corresponds to the developing step of the innovation process?
A) Google decides to create Buzz in response to competition from Facebook and other social networking sites.
B) Google's team creates APIs for third-party applications.
C) Google releases the beta version of Buzz for usability testing.
D) Google rolls out final code complete version of Buzz for users, rid of bugs and defects.
E) Google continues to add newer features and widgets to the Buzz platform and addresses user concerns.
Q3) Briefly describe the time-pressure/creativity matrix.
Q4) How are innovation and creativity connected?
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