Business Administration
Mock Exam
Course Introduction
Business Administration is a comprehensive course designed to introduce students to the fundamental principles and practices underlying the operation and management of businesses. The curriculum covers core areas such as management, marketing, finance, human resources, operations, and organizational behavior. Students will learn to analyze business problems, develop strategic solutions, and apply critical thinking skills in diverse business contexts. Emphasizing both theory and real-world application, the course prepares students for leadership roles by fostering effective communication, decision-making, and teamwork abilities necessary for success in the dynamic world of business.
Recommended Textbook
Organization Theory and Design 2nd canadian Edition by Richard L. Daft
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Page 2
Chapter 1: Organizations and Organizational Theory
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Sample Questions
Q1) Define an open system. Describe and illustrate the open system in action.
Answer: An open system must interact with its environment to survive. It cannot seal itself off. Individuals, Earth, and Air Canada are all examples of open systems.
Q2) For much of the 20th century, organizations operated in a world that was relatively stable, but today the environment can be characterized as turbulent.
A)True
B)False
Answer: True
Q3) Which of the following integrates diverse organizational activities by looking at various constituents and what they want from the organization?
A) contextual dimensions
B) organizational culture
C) efficiency
D) stakeholder approach
Answer: D
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Chapter 2: Strategy, Organizational Design, and Effectiveness
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Sample Questions
Q1) Organizations using the differentiation strategy try to distinguish their products or services from others in the industry.
A)True
B)False
Answer: True
Q2) Some people believe that athletics is overemphasized in universities; others believe that it is underemphasized. How would you go about measuring the effectiveness of a university relative to its athletics program?
Answer: I would look at internal and external variables such as (1) the sport and academic performance of the athletes, (2) the calibre of the athletes who apply to the university, (3) the amount of monies donated to the university for research in sport, (4) the response of the university's alumni to athletic events, and (5) the future careers of the athletes. I would also weight their importance. In a research-intensive university, criterion (3) would be weighted as the most important.
Q3) Official goals address issues pertaining to corporate legitimacy.
A)True
B)False
Answer: True
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Chapter 3: Fundamentals of Organizational Structure
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Sample Questions
Q1) What are the similarities and differences between a functional structure with horizontal linkages and a divisional structure?
Answer: In a functional structure with horizontal linkages, people from different functions are brought together in a group to work on a core process. In a divisional structure, employees work in their functions even though they are grouped by what the organization produces. The former is a grouping around core processes while the latter is by product.
Q2) Divisional structure may be organized by product, services, major projects or programs, or profit centres.
A)True
B)False
Answer: True
Q3) List and explain the structural devices used to achieve vertical linkage. Answer: There are three types of vertical linkage devices. (1) Hierarchical referral can be used if an employee does not know how to solve a problem. He or she can refer the problem to the level above, and when the problem is solved it is passed down to the employee. (2) Rules and plans can be used to standardize behaviours and decisions. (3) Vertical information systems can be used to make communication up and down the hierarchy more efficient.
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Page 5
Chapter 4: The External Environment
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Sample Questions
Q1) Assessment of environmental uncertainty of an organization is based primarily on analysis of which two of the following dimensions?
A) the need for information about the environment and the need for resources from the environment
B) the number of sectors and the organization's niche
C) the extent of turbulence and the amount of available resources
D) differentiation and integration
Q2) Most e-commerce companies focus on a specific competitive niche and operate in simple but unstable environments.
A)True
B)False
Q3) Rather than establish buffer departments, a newer approach in many organizations is to drop the buffers and expose the technical core to its uncertain environment.
A)True
B)False
Q4) List and describe three organizational adaptations to environmental uncertainty.
Q5) How might an economic recession affect the design of organizations?
Q6) Explain the arguments for and against creating buffering roles.
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Chapter 5: Interorganizational Relationships
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Sample Questions
Q1) When the computer industry first reached the everyday consumer, Commodore computers were extremely popular, and the first computers ever purchased by many people. As other personal computers such as Apple and IBM entered the marketplace with word processing, database programs, and a few games, Commodore kept its focus on games. From the perspective of the population ecology model, explain what happened to these organizations over the long run, and why.
Q2) Given their flexibility, specialists are able to reallocate resources internally to adapt to a changing environment, whereas generalists are not.
A)True
B)False
Q3) The four perspectives of a framework of interorganizational relationships include resource dependency, population ecology, collaborative network, and re-engineering.
A)True
B)False
Q4) Universities, consulting firms, and professional training institutions develop norms among professional managers.
A)True
B)False
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Chapter 6: Designing Organizations for the International Environment
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Sample Questions
Q1) Which of the following is a new entity that is created when two or more separate firms come together to share development and/or production costs?
A) wholly owned subsidiaries
B) joint ventures
C) consortia
D) licensing agreements
Q2) Which of the following kinds of formal positions do organizations create to coordinate information and activities related to key customer accounts?
A) functional manager
B) transnational team
C) network coordinator
D) division network
Q3) A growing number of global consumers are rejecting the notion of homogenized products and services, and calling for greater response to local preferences.
A)True
B)False
Q4) Discuss the global matrix structure. Give an example.
Q5) Discuss the national value systems.
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Chapter 7: Manufacturing and Service Technologies
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Q1) Research suggests that FMS can become a competitive burden, rather than a competitive advantage, unless organizational structures and management processes are redesigned to take advantage of the new technology.
A)True
B)False
Q2) When work does not flow between units and each unit works independently, the units are said to have which of the following types of interdependence?
A) pooled interdependence
B) grouped interdependence
C) sequential interdependence
D) high interdependence
Q3) What are the three subcomponents of computer-integrated manufacturing?
A) CAD, CAM, and integration information network
B) people, hardware, and software
C) information, computers, and procedures
D) CIM, ADC, and software
Q4) Sociotechnical systems design requires detailed design specifications.
A)True
B)False
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Chapter 8: Information Technology and Control
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Q1) Effective control systems involve the use of feedback to determine whether organizational performance meets established standards to help the organization attain its goals.
A)True
B)False
Q2) What software uses sophisticated decision-making processes to search raw data for patterns and relationships that may be significant?
A) search algorithms
B) data mining
C) analytical
D) decision support systems
Q3) Enterprise resource planning can integrate key management processes by integrating order processing, product design, purchasing, inventory, distribution, and other areas of organizational activity.
A)True
B)False
Q4) Describe how interorganizational relationships can be affected by technology in business today.
Q5) Describe ERP systems.
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Chapter 9: Organization Size, Life Cycle, and Decline
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Q1) Increased training can substitute for bureaucratic rules and procedures.
A)True
B)False
Q2) Despite the increasing size of many companies, the economic vitality of North America is tied to small and mid-sized businesses.
A)True
B)False
Q3) Traditional authority refers to control coming from the exemplary character of an individual and the aura he or she creates.
A)True
B)False
Q4) There are ten stages of life cycle development an organization must generally go through in order to reach the final stage when rewards are personal and aimed at those who contribute to organizational success.
A)True
B)False
Q5) Weber's prediction of the triumph of bureaucracy proved accurate.
A)True
B)False
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Chapter 10: Organizational Culture and Ethical Values
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Q1) Which term is used to refer to the degree of agreement among members of an organization about the importance of specific values?
A) adaptability
B) culture strength
C) internal integration
D) social responsibility
Q2) In a mission culture, managers shape behaviour by envisioning and communicating a desired future state for the organization.
A)True
B)False
Q3) What does the mission culture put major emphasis on?
A) the external environment through flexibility and change to meet customer needs
B) a shared vision of organizational purpose
C) the involvement and participation of the organization's members
D) the internal environment and a consistency orientation for a stable environment
Q4) What is Bakan's main argument about corporations? What is your view and why?
Q5) Discuss culture strength and organizational subcultures.
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Page 12
Chapter 11: Innovation and Change
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Sample Questions
Q1) Explain why a change in technology, structures and systems, products and services, or people will affect the other elements. Provide an example of change in one of these elements and how it will affect the other elements.
Q2) The manager of R&D for PlasticWare, a kitchen products company, said that only 10 percent of its new products ever make a profit. He said that the industry average is 15 percent, but one company in the industry has a success rate of 90 percent. What advice would you give PlasticWare concerning organizational structure?
Q3) What are the key components of organizational design that contribute to successful new product innovation?
A) specialization, boundary spanning, and horizontal coordination
B) formalization, hierarchy, and organic structure
C) specialization, formalization, and standardization
D) dual-core processes, top management support, and incremental change
Q4) Discuss what organizations can do to achieve competitive advantage.
Q5) A switching structure is one that switches back and forth as needed between product and matrix in form.
A)True
B)False
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Chapter 12: Decision-Making Processes
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Q1) Which type of organizational decision making is being used by a company that uses a computerized system extensively in its production process from the design stage through the automatic ordering of raw materials through preparation for delivery?
A) garbage can
B) incremental process
C) Carnegie
D) management science
Q2) List and describe the steps of the rational approach to decision making.
Q3) What do managers employ when using intuitive decision making?
A) logic
B) judgment
C) explicit reasoning
D) a systematic approach
Q4) Based on the fact that the management science approach uses quantitative data, which are not rich, discuss limitations of the approach for organizational decision making.
Q5) Discuss three special decisions circumstances that managers need to be concerned about today.
Q6) Discuss the four cells of the contingency framework.
Page 14
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Chapter 13: Conflict, Power, and Politics
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Q1) Why do people have authority in an organization?
A) because of the positions they hold
B) because of skill and knowledge they possess
C) because of personal characteristics
D) because of resources they control
Q2) Where does legitimate power come from?
A) the positions in the organization
B) skill and knowledge
C) personal characteristics
D) resources controlled by managers
Q3) Members of the marketing department have become aware that manufacturing is inflating its expense forms. If marketing decides to report manufacturing to the vice president, it will need to proceed with care. What recommendations would you give to marketing, on the basis of your reading of the chapter on power and politics?
Q4) One of the three primary domains of political activity is structural change.
A)True
B)False
Q5) Contrast three tactics for enhancing collaboration with three tactics for increasing power.
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