Business Administration
Mock Exam
Course Introduction
Business Administration is a multidisciplinary field that prepares students to plan, organize, direct, and control the operations of organizations in both the public and private sectors. The course covers fundamental topics such as management principles, organizational behavior, marketing, accounting, finance, human resources, and strategic decision-making. Students develop problem-solving, leadership, and communication skills essential for effective management and learn to apply analytical tools to real-world business scenarios. By the end of the course, participants gain a strong foundation to pursue careers in business, entrepreneurship, or further specialized studies.
Recommended Textbook
Modern Management Concepts and Skills 14th Edition by Samuel C. Certo
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Page 2
Chapter 1: Principles of Modern Management: Concepts and Skills
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Q1) Which of the following situations best demonstrates an error made during the organizing stage of management?
A) LMN Tree has embarked on a new long-term project. Though the project is progressing, employees feel that there were many better ways to achieve the desired result.
B) Vista International took on a project at short notice and wasn't able to go into details of the strategy. As a result, some departments have clear objectives, while others do not.
C) The project team at Walton's is dissatisfied with the functioning of the department, but has no communication system through which they can convey their concerns to the management.
D) Though DLB's projects are usually very similar, employees have no way of comparing performance as there are no set standards.
E) Two teams at Crimson Blue had been working separately on a project for three weeks before they discovered that there was a lot of duplicated effort.
Answer: E
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Chapter 2: Managers, Society, and Sustainability
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Q1) PepsiCo, a food and beverage manufacturer, began measuring the footprint of carbon emissions of its orange juice brand, Tropicana, in an effort to become more sustainable. Which of the following areas does this study focus on?
A) the economy
B) the environment
C) the society
D) the performance
E) the business
Answer: B
Q2) When Mohawk Home Company develops a new line of all natural fiber rugs, the company could be said to be ________.
A) socially redundant
B) socially respectful
C) socially responsible
D) socially obligated
E) socially normed
Answer: C
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Page 4
Chapter 3: Management and Diversity
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Q1) Which of the following is true regarding the assimilation approach?
A) It advocates incorporating changes into organization culture based on the cultures of new employees.
B) It gathers the best from differing cultures and accepts a variety of viewpoints.
C) It promotes creativity in the organization by encouraging employees to share their individual cultures and world views.
D) It creates a homogeneous culture that suppresses the creativity and diversity of views that could benefit the organization.
E) It addresses past injustices experienced by a particular group by developing policies to create a more equitable set of conditions.
Answer: D
Q2) Role conflict refers to the situation in which a person has too many expectations to comfortably fulfill.
A)True
B)False
Answer: False
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Chapter 4: Managing in the Global Arena
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Q1) A multinational corporation is a company that is primarily based in one country but has continuing transactions in other countries.
A)True
B)False
Q2) An organization with significant operations in more than one country is known as a/an ________.
A) international organization
B) domestic organization
C) multinational organization
D) transnational organization
E) global organization
Q3) International management is the performance of management activities across national borders.
A)True
B)False
Q4) Discuss the value Hofstede's cultural dimensions offer to management of multinational organizations.
Q5) What are challenges managers face with the controlling function when managing across multiple countries?
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Chapter 5: Plans and Planning Tools
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Q1) Which of the following is NOT one of the key areas in which Drucker advised managers to set management system objectives?
A) market standing
B) profitability
C) government regulation
D) innovation
E) public responsibility
Q2) Alisa is trying to determine how to get her employees more involved in the company's plans and goals. Which of the following actions could she take as she begins identifying the goals for her department for the upcoming year?
A) Tell employees which goals they will be working on
B) Have employees determine goals for the department
C) Assign goals randomly to employees
D) Work collectively with employees on planning the goals for the department
E) Let upper management set all departmental goals
Q3) A potential disadvantage of planning is that it can take up too much managerial time.
A)True
B)False
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Page 7
Chapter 6: Making Decisions
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Q1) Which of the following is a traditional technique for managers to use when handling a programmed decision?
A) judgment
B) rules of thumb
C) habit
D) intuition
E) training
Q2) Managers know employees are more likely to be committed to a decision reached through consensus.
A)True
B)False
Q3) Jack works at an advertising agency and leads a team of 8 graphic designers. Whenever he has to make a decision, he does so by himself and rarely asks his team members for their suggestions or inputs. Which of the following orientations does Jack have?
A) ideal
B) exploitative
C) receptive
D) hoarding
E) marketing-oriented
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Chapter 7: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Q1) GenEx Group manufactures a variety of products for different markets. One of its SBUs, GenEx Textiles, is one of its leading revenue generators. GenEx Textiles is the leading player in the market for textiles. However, the parent company has realized that growth prospects in the textile industry is limited. The company has already exploited the market to the fullest and sustained growth in the future is unlikely. In fact, a substantial amount of the revenue generated from this textile business is used to fund other SBUs of the parent company. GenEx Textiles is an example of a ________ for the GenEx Group.
A) star
B) dog
C) cash cow
D) question mark
E) cost-leader
Q2) An SBU with a large market share of a low-growth market is a ________.
A) star
B) dog
C) cash cow
D) question mark
E) low-cost leader
Q3) Discuss the value of management conducting an Environmental Analysis.
Page 9
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Chapter 8: Fundamentals of Organizing
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Q1) Sabrina is a supervisor currently frustrated with the limited connections she has with the employees in her department. She has recently faced the reality decision making and job assignments are suffering for some because she does not have enough time to communicate with all employees during the day. She has examined the similarity and complexity of the actions her employees perform, as well as the amount of time the employees jobs overlap. By doing this, which of the following organizing concepts is she examining?
A) Formal structure
B) Informal structure
C) Organizational chart
D) Span of management
E) Chain of command
Q2) What is meant by the horizontal dimensioning of an organization? Also explain the terms "departments" and "departmentalizing," and list the various modes of departmentalizing an organization.
Q3) Walt is an entrepreneur who has asked to meet with you to discuss the best solution as he establishes departments for his airplane service firm. As you now prepare to meet with Walt next week, compare and contrast the different types of departmentalization and then consider examples you may offer him when you meet.
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Page 10
Chapter 9: Responsibility, Authority, and Delegation
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Q1) Responsible managers take complete charge of their work groups.
A)True
B)False
Q2) Describe the characteristics of a responsible manager and explain the method used to determine the degree of responsibility a manager possesses.
Q3) According to Barnard, in order to enhance the probability of acceptance of authority, communication channels should be ________.
A) formal
B) informal
C) lateral D) customized E) culturally fair
Q4) List guidelines managers should follow when working to make delegation effective in their organization.
Q5) The accountability concept implies that reward or punishment is dependent upon performance.
A)True
B)False
Q6) Explain the concepts of line, staff, and functional authority.
Page 11
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Chapter 10: Human Resource Management
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Q1) 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
Q2) Which of the following is a disadvantage of using performance appraisals?
A) Performance appraisals do not provide judgments systematic enough to support salary increases, promotions, or transfers.
B) Performance appraisals focus employees on short-term rewards rather than on issues that are important to the long-run success of the organization.
C) Performance appraisals place undue emphasis on critiquing individual performance rather than increasing organizational productivity and completing paperwork.
D) Individuals only tend to participate in the evaluation as they view it as a rewarding prospective.
E) Performance appraisals are not effective at telling subordinates how they are doing and of suggesting needed changes in behavior, attitudes, skills, or job knowledge.
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12
Chapter 11: Organizational Change: Stress, Conflict and Virtuality
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Q1) Contrary to popular belief, standardized jobs and procedures actually reduce stress as compared to jobs that are classified as "interesting" by allowing more room for employee creativity.
A)True
B)False
Q2) Which of the following terms refers to the process of people change?
A) organizational planning
B) organizational communication
C) institutional design
D) resource mobilization
E) organization development
Q3) Albert believes adequate organizational performance is possible by balancing the need to get good quality work done on the one hand and addressing the needs of his employees on the other. What score in the managerial grid is most closely associated with Albert's managerial style?
A) 1,1
B) 5,5
C) 1,9
D) 9,1
E) 9,9
Page 13
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Chapter 12: Influencing and Communication
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Q1) Which of the following terms best represents the capacity of people to recognize their own feelings and the feelings of others, to motivate themselves, and to manage their own feelings as well as the feelings in relationships with others?
A) consideration
B) interpersonal skills
C) compassion
D) emotional intelligence
E) assertiveness
Q2) When executives were asked to rank essential skills employees need in their jobs ________ skills ranked as number one.
A) interpersonal
B) motivational
C) oral and written communication
D) collaboration
E) planning
Q3) What is emotional intelligence? Why is it important in organizations?
Q4) Describe formal communication and explain the three basic types of formal communication.
Q5) List the major characteristics of organizational grapevine?
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Chapter 13: Leadership
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Q1) Which of the following approaches to leadership suggests successful leadership requires a unique combination of leaders, followers, and leadership circumstances?
A) the trait approach
B) the situational approach to leadership
C) transformational leadership
D) contingency approach
E) the behavioral approach
Q2) Keith is the leader of a project team designated to design new products for a firm. He conducts group meetings and discussions regularly so that all team members are aware of the work progress. Keith ensures that all members participate in the meetings and that all the key decisions regarding product design are made by the team. According to the VYJ model, Keith's style of leadership can be classified as ________.
A) GII
B) CI
C) AI
D) CII
E) AII
Q3) Explain the major findings of the OSU studies.
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Chapter 14: Motivation
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Q1) List the categories of needs identified by Alderfer in his ERG theory.
Q2) Job ________ could be equated to Vertical loading of a job while Job ________ could be equated to Horizontal loading of a job.
A) enlargement; rotation
B) enlargement; specialization
C) enrichment; rotation
D) enlargement; enrichment
E) enrichment; enlargement
Q3) According to Argyris' continuum, as individuals progress from immaturity to maturity, they ________.
A) indulge in more activities
B) have a short-term perspective
C) have casual and shallow interests
D) stay in a state of dependence
E) remain passive
Q4) Many perceive the Equity Theory as a dangerous theory and one that management absolutely must understand. What is the theory's guiding premise and why is it that management needs to be very focused on the principles of this motivation theory?
Q5) What is flextime? What are the advantages and disadvantages of using flextime?
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Chapter 15: Groups and Teams
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Q1) Which of the following is one of the major reasons to establish a committee?
A) to obtain status and social satisfaction that people might not enjoy without group membership
B) to perpetuate social and cultural values that group members consider important
C) to encourage groupthink
D) to handle routine organizational activities
E) to develop new ideas for solving existing organizational problems
Q2) List the stages of formal group development.
Q3) Groupthink is the mode of thinking group members engage in when the desire for agreement and the "we-feeling" is so dominant it overrides realistic alternative problem solutions.
A)True
B)False
Q4) Discuss the five stages of team development.
Q5) According to Homans' Model, the informal group is established to provide satisfaction and growth for its members.
A)True
B)False
Q6) What differences exist between formal and informal groups?
Page 17
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Chapter 16: Managing Organization Culture
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Q1) ________ is a set of shared values that organization members have regarding the functioning and existence of their organization.
A) Organizational space
B) Corporate governance
C) Organization culture
D) Corporate behavior
E) Organizational ecology
Q2) Briefly explain the role of organizational rewards as a cultural artifact.
Q3) ________ is an organization culture characterized by flexibility and discretion along with an external focus.
A) Bureaucracy culture
B) Market culture
C) Clan culture
D) Hierarchy culture
E) Adhocracy culture
Q4) Give a brief description of the organizational socialization process for new employees.
Q5) What is an organization subculture? What is its significance for an organization?
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Chapter 17: Controlling, Information, and Technology
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Q1) ________ is a segment of technology which uses computers and telecommunication devices that focus on the use of information in the performance of work.
A) Information technology
B) Controlling technology
C) Corporate technology
D) Strategic planning technology
E) Management technology
Q2) A/An ________ is any factor within an organization that is a barrier to organizational goal attainment, while a/an ________ is a sign a barrier does exist.
A) problem; gap
B) symptom; problem
C) problem; symptom
D) symptom; gap
E) gap; problem
Q3) Identify the methods by which managers can make controlling a successful activity.
Q4) Explain the ways an individual can be successful in increasing his or her personal power.
Q5) What are the steps in evaluating information?
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Chapter 18: Production and Control
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Q1) Which of the following is the best strategy that a company can use to improve organizational productivity?
A) Increase employee salaries and provide additional incentives to the employees.
B) Attempt to increase the bargaining power of the suppliers.
C) Automate the lengthy processes that exist in the value chain.
D) Allocate more budget to the operational activities of the firm.
E) Reduce the number of units produced per day to give more attention to product quality.
Q2) If Barb wants to involve all of her employees in quality control by asking for their ideas for judging and maintaining product quality, she should form a/an ________.
A) quality square
B) quality newspaper
C) quality group
D) quality force
E) quality circle
Q3) What are the potential pitfalls of budgets?
Q4) What is productivity and how is it important to organizations?
Q5) Briefly define the main points of strategies, systems, and processes.
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Chapter 19: Appendix 1: Managing History and Current Thinking
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Q1) Under the piece-rate system pioneered by Taylor, ________.
A) workers were paid according to the amount they produced
B) managers develop their employees' work-related skills
C) each job was reduced to the most basic movement possible
D) workers were paid more than their managers
E) managers were paid only after the workers exceeded production
Q2) A learning organization represents a specific, new fundamental way of viewing and understanding management. This type of organization also represents a new management ________.
A) shift
B) paradigm
C) alternative
D) viewpoint
E) approach
Q3) List any seven general principles of management and their defining themes as described by Fayol.
Q4) What are the steps involved in using the scientific method?
Q5) What connection exists between the managerial environment within which management functions and the system approach to management?
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Chapter 20: Management and Entrepreneurship: Handling
Start-Ups and New Ventures
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Q1) Information asymmetry refers to an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior.
A)True
B)False
Q2) The Internet allowed Netflix to offer customers a new way to rent DVDs and video games. This is an example of ________.
A) new markets
B) new raw materials
C) new methods of production
D) new methods of organizing
E) new products
Q3) Describe the four factors that influence the ability of individuals to identify opportunities.
Q4) Entrepreneurial alertness 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)True
B)False
Q5) Who is an entrepreneur?
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Chapter 21: Encouraging Creativity and Innovation
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Q1) Which of the following steps in the innovation process involves making a new idea practical?
A) inventing
B) developing
C) diffusing
D) integrating
E) monitoring
Q2) If an employee's creativity is said to increase when they are able to work without direct management directions, the employee should be offered ________ in their work.
A) control
B) organization
C) independence
D) autonomy
E) leadership
Q3) What is total quality management? Give a brief history of the evolution of total quality management and the principles behind the concept.
Q4) What is the "innovation process"? Briefly describe the different steps involved in the innovation process.
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Page 23