Business Administration
Review Questions
Course Introduction
Business Administration is an interdisciplinary course designed to provide students with a comprehensive understanding of the fundamental principles and practices that drive modern organizations. The course covers key topics such as management, marketing, finance, accounting, human resources, operations, and business strategy. Through theoretical frameworks and practical applications, students develop critical skills in leadership, decision-making, communication, and problem-solving. By analyzing real-world business scenarios, students gain insights into how organizations operate, adapt to market changes, and create value in a dynamic global environment. This course lays the foundation for pursuing advanced business studies and equips learners for diverse career opportunities in the corporate, nonprofit, and entrepreneurial sectors.
Recommended Textbook
Organization Theory and Design 2nd canadian Edition by Richard L. Daft
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13 Chapters
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Page 2
Chapter 1: Organizations and Organizational Theory
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Sample Questions
Q1) John Black, a management consultant, successfully implemented an MBO program on his first consulting job. He now recommends MBO to all his clients. In so doing, what aspect of organizational design would the textbook say he is ignoring?
A) the latest techniques for solving problems
B) the principles of contingency theory
C) the external environment of the organization
D) the internal environment of the organization
Answer: B
Q2) Which term refers to the degree to which organizational tasks are subdivided into separate jobs?
A) formalization
B) specialization
C) professionalism
D) centralization
Answer: B
Q3) In the transformation process, "output" deals with financial resources.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Strategy, Organizational Design, and Effectiveness
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Sample Questions
Q1) Operative goals refer to the formally stated definition of business scope and outcomes the organization is trying to achieve.
A)True
B)False
Answer: False
Q2) What is the difference between a goal and a strategy? Give an example that illustrates each.
Answer: A strategy is a plan for an organization to compete in its chosen environment to achieve its goals. Strategies define how an organization will accomplish its goals, i.e., where the organization wants to go. A goal for a nonprofit organization might be to increase its income sources by 15% and the strategy to achieve that goal might include applying to many foundations, creating partnerships with for-profit organizations, starting a social enterprise, and so on.
Q3) Official goals represent the reason for an organization's existence and the outcomes it seeks to achieve.
A)True
B)False
Answer: True
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Chapter 3: Fundamentals of Organizational Structure
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Sample Questions
Q1) Which of the following is made up of organizationally or geographically dispersed members who are linked primarily through advanced information and communications technologies?
A) virtual teams
B) task forces
C) full-time integrators
D) information systems
Answer: A
Q2) How can rules and plans serve as an information-linking mechanism in organizations?
Answer: Rules and plans provide scripted guidance to employees about how to respond to situations so they do not have to communicate directly with their manager. Rules and plans enable coordination by providing standard operating procedures that everyone knows to follow without having to ask others for guidance.
Q3) A weakness of the functional structure is that it results in a slow response time to environmental change.
A)True
B)False
Answer: True
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Chapter 4: The External Environment
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Sample Questions
Q1) Which of the following is likely in organizations characterized by very simple and stable environments?
A) almost no managers are assigned to integration roles
B) many departments are added
C) there is formal, centralized authority
D) there is extensive planning, forecasting and high-speed responses
Q2) Bobby Barista is a researcher in the R&D department at 3M. Part of her job is to read technical and scientific journals, and to attend conferences to find out what new developments are occurring. What sort of role is she carrying out in this part of her job?
A) buffering
B) maintenance
C) boundary spanning
D) managerial
Q3) As the complexity in the external environment increases, so does the number of positions and departments within the organization, which in turn increases internal complexity.
A)True
B)False
Q4) Explain the arguments for and against creating buffering roles.
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Chapter 5: Interorganizational Relationships
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Sample Questions
Q1) Which of the following is one example of mimetic force?
A) re-engineering
B) accounting standards
C) pollution controls
D) consultant training
Q2) Discuss how the adversarial versus partnership orientations work among students in class. What carryover from the classroom settings at your university will help or hinder interorganizational relationships you may be managing in the future?
Q3) Does the desire for legitimacy result in organizations being more similar or being more different? Take a position, and defend your position.
Q4) Which of the following are organizations trying to gain when they become influenced by mimetic, coercive, or normative forces in the institutional environment??
A) greater profit
B) greater market share
C) greater resource dependency
D) greater legitimacy
Q5) What is an organizational ecosystem? How does this concept impact the changing role of management?
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Chapter 6: Designing Organizations for the International Environment
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Sample Questions
Q1) The globalization strategy means that product design, manufacturing, and marketing strategy are standardized throughout the world, whereas a multidomestic strategy means that competition in each country is handled independently of competition in other countries.
A)True
B)False
Q2) An organization in the second stage of international evolution (international stage) will usually have a domestic structure with an export department.
A)True
B)False
Q3) Discuss the global geographical structure.
Q4) Discuss each of the motivations for global expansion.
Q5) In what stage of the international evolution of a company are the worldwide geographic or product structures most likely to appear?
A) domestic
B) international
C) multinational
D) global
Q6) Discuss the global matrix structure. Give an example.
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Chapter 7: Manufacturing and Service Technologies
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Sample Questions
Q1) Job simplification means that jobs are made less difficult and with fewer tasks.
A)True
B)False
Q2) Which of the following means that the job provides greater responsibility, recognition, and opportunities for growth and development?
A) job enrichment
B) job rotation
C) job design
D) job simplification
Q3) 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
Q4) An integrated information network refers to a computerized system with a common database linking all areas of the organization such as accounting, inventory control, design, marketing, production, etc.
A)True
B)False
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Chapter 8: Information Technology and Control
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Sample Questions
Q1) Which of the following is a highly ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts?
A) benchmarking
B) the balanced scorecard
C) knowledge management
D) Six Sigma
Q2) The MIS is supported by the organization's transaction processing systems and by organizational databases.
A)True
B)False
Q3) Which of the following is (are) defined as the formal routines, reports, and procedures that use information to maintain or alter patterns in organizational activities?
A) management control systems
B) management information systems
C) decision support systems
D) feedback control systems
Q4) Describe each subsystem of management control systems.
Q5) Discuss the balanced scorecard.
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Chapter 9: Organization Size, Life Cycle, and Decline
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Sample Questions
Q1) Describe the incident command system.
Q2) Traditional authority refers to control coming from the exemplary character of an individual and the aura he or she creates.
A)True
B)False
Q3) In the incident command system, who or what ensures all activities that occur are appropriate?
A) clan control
B) the professional partnership
C) the incident commander
D) bureaucratic control
Q4) Which of the following is the primary reason the CEO of a large company such as Tim Hortons would push decisions as far down the hierarchy as he or she can?
A) to develop managers
B) to make decisions more quickly
C) to appear more Canadian and thereby increase sales
D) to save himself or herself the trouble of making these decisions
Q5) Describe the differences between large and small organizations.
Q6) Discuss the approaches to reducing bureaucracy.
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Chapter 10: Organizational Culture and Ethical Values
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Sample Questions
Q1) A strong organizational culture is a primary characteristic of a learning organization.
A)True
B)False
Q2) Why did Citigroup implement a statement of cultural and ethical values after being stung by a series of scandals?
A) A formal statement of the company's values relates to the unobservable but important organizational culture.
B) A formal statement of values can serve as a fundamental organizational document that defines what the organization stands for.
C) A formal statement addresses ethical values rather than specific behaviours.
D) A formal statement is often part of a larger mission statement and therefore is taken for granted.
Q3) What is the major force that shapes managerial ethics?
A) organizational culture
B) external shareholders
C) peers
D) legal systems
Q4) List and describe the three values incorporated into a strong adaptive culture.
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Chapter 11: Innovation and Change
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Sample Questions
Q1) Administrative innovation can be extremely difficult in organizations that have an organic technical core.
A)True
B)False
Q2) Venture teams are large groups of employees dedicated to coming up with new ideas for improved organizational structure.
A)True
B)False
Q3) What term is used for the adoption of an idea or behaviour new to the company's industry, market, or general environment?
A) the ambidextrous approach
B) the dual-core approach
C) strategy and structure change
D) organizational innovation
Q4) A middle-level manager is interested in product innovation, and you know that he is under pressure to bring about this innovation in order to help the firm achieve competitive advantage. What recommendations would you give him?
Q5) Discuss the stages of change-commitment process.
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Chapter 12: Decision-Making Processes
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Sample Questions
Q1) Which of the following is the stage in which alternative courses of action are considered and one is chosen and implemented?
A) the first three steps of the rational approach, called problem recognition
B) the last four steps of the rational approach, called problem solution
C) programmed decision
D) bounded rationality
Q2) When Tanya Smith, CEO of Food Lion, reads Modern Grocer, visits other grocery stores to compare prices, and reviews daily sales figures, which step of the rational approach is she is engaging in?
A) monitoring the decision environment
B) defining the decision problem
C) specifying decision objectives
D) diagnosing the problem
Q3) What does the garbage can model show?
A) how poor inputs into decision making result in poor decisions
B) how decisions can be made in mechanistic organizations
C) four streams of events that influence decision making
D) decision making in a stable environment
Q4) List and describe the steps of the rational approach to decision making.
Q5) What is a problemistic search? What is its role in decision making?
Page 14
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Chapter 13: Conflict, Power, and Politics
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Sample Questions
Q1) The advantage of intergroup consultation is that individuals become submerged in the values, attitudes, problems, and goals of the other department.
A)True
B)False
Q2) Network centrality means that managers have access to information and people who are critical to the company's success, and thereby increase their power base.
A)True
B)False
Q3) Describe the conditions under which a rational model of behaviour might work. How does the rational model compare to the political model?
Q4) Which of the following attributes, that often generate intergroup conflict, relates to organizational departments with different outcome expectations?
A) differentiation
B) task interdependence
C) goal incompatibility
D) personality
Q5) What political tactics are recommended for using power?
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Page 15