

Business Management
Chapter Exam Questions
Course Introduction
Business Management is a foundational course that explores the principles and practices essential to effective leadership and organization within the business environment. Students will learn about key managerial functions such as planning, organizing, leading, and controlling, as well as the decision-making processes involved in managing people, resources, and operations. The course covers topics including organizational structure, strategic planning, human resource management, motivation, communication, and ethical considerations in business. Through case studies, group work, and practical examples, students will develop critical thinking and problem-solving skills necessary for success in modern business management.
Recommended Textbook
MGMT 11th Edition by Chuck Williams
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Page 2

Chapter 1: Management
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Sample Questions
Q1) Vermpotta, a company that manufactures glassware, has its factories in developing countries where labor costs are low. The quality of the company's products manufactured at its factory in the country of Octofia has been consistently low. Antonio, the company's chief operating officer, worked out of the Octofia factory for a month to find the root cause of this problem. After much deliberation, Antonio decided that the factory needs to be moved to an industrial area in the capital of Octofia. In the context of managerial roles, which of the following decisional roles does Antonio illustrate in this scenario?
A) The disturbance handler role
B) The resource allocator role
C) The disseminator role
D) The spokesperson role
Answer: A
Q2) The management function of leading involves determining organizational goals and a means for achieving them.
A)True
B)False
Answer: False
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Chapter 2: The History of Management
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Sample Questions
Q1) Which of the following is a practical implication of the contingency approach to management?
A) Managers can develop quantitative approaches to solve organizational problems.
B) Managers need to spend more time analyzing problems before taking action to fix them.
C) Managers need to group all problems in the same category.
D) Managers can develop a universal management theory to solve all problems.
Answer: B
Q2) Temp Trove rewards the employee who completes his or her projects before the due date by giving ten percent of his or her basic pay as incentives. In this scenario, Temp Trove is rewarding the employee who is considered a(n) _____.
A) rate buster
B) soldier
C) bureaucrat
D) opinion leader
Answer: A
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Chapter 3: Organizational Environments and Cultures
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Sample Questions
Q1) Trisha is appointed as the new CEO of an automobile manufacturing company. She decides to introduce a new set of organizational policies to improve company-wide performance. According to the new policies, all employees and managers are required to be present at their desks for a minimum of eight hours each day and submit a report of all the tasks they perform through the day. In this scenario, Trisha is most likely using
A) behavioral opportunism
B) behavioral deskilling
C) behavioral conditioning
D) behavioral addition
Answer: D
Q2) Environmental complexity refers to the extent to which managers can understand or predict which environmental changes and trends will affect their businesses.
A)True
B)False
Answer: False
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Chapter 4: Ethics and Social Responsibility
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Sample Questions
Q1) Peter's friends are going to a party that serves alcohol, but Peter refuses to go because he is 15 years old and is below the legal drinking age in his country. Peter knows that he will not get caught but strongly feels that it is important to not do something that is illegal. In the context of Kohlberg's stages of moral development, Peter is at the _____ of moral development in this scenario.
A) punishment and obedience stage
B) law and order stage
C) instrumental exchange stage
D) "good boy, nice girl" stage
Q2) Which of the following is a similarity between political deviance and personal aggression?
A) Both involve the theft of company merchandise.
B) Both involve harming coworkers.
C) Both address the issue of quality of work.
D) Both aim at damaging company property.
Q3) A company must avoid communicating its code of ethics to others outside the company.
A)True
B)False
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Page 6

Chapter 5: Planning and Decision Making
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Sample Questions
Q1) Plastbolt, a company that manufactures and supplies plastic bottles, wants to acquire a smaller company. It plans to invest in two smaller plastic manufacturing companies and buy the one that it finds yields better returns. In this scenario, Plastbolt is most likely using _____.
A) reverse planning
B) options-based planning
C) time-based planning
D) rigid planning
Q2) _____ occurs when a group member must wait to share an idea because another member is presenting an idea to the group.
A) Dialectal inquiry
B) Groupthink
C) Satisficing
D) Production blocking
Q3) In the context of strategic planning, once a strategic objective has been accomplished, a new one should be chosen.
A)True
B)False
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7
Chapter 6: Organizational Strategy
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Sample Questions
Q1) Unlike a long-lasting competitive advantage, a sustainable competitive advantage is one where:
A) competitors have tried unsuccessfully to duplicate the advantage and have, for the moment, stopped trying to duplicate it.
B) organizations collect and store the resources they require while preventing their competitors from accessing those resources in order to curb competition.
C) organizations have gained an edge by using their resources to provide greater value for customers than their competitors can.
D) competitors buy a portion of an organization's market share and use it to improve their market presence, thereby increasing the longevity of their own organization.
Q2) _____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.
A) Sustainable competitive advantage
B) Comparative advantage
C) Revealed competitive advantage
D) Core competency advantage
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8

Chapter 7: Innovation and Change
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Q1) Arthills is a retail store that sells paintings. The entire store of Arthills is energy efficient and uses a glass ceiling to naturally light the room during the day and sensors to automatically turn the internal lighting system on during the night. This scenario best illustrates _____.
A) organizational innovation
B) corporate entropy
C) reverse engineering
D) agile development
Q2) Dominant technological designs can emerge through independent standards bodies.
A)True
B)False
Q3) The customers of Curtofan, a gaming console manufacturer, stopped purchasing its traditional hand-held gaming device after it introduced a real-time, high-end gaming device. In the context of innovation streams, which of the following concepts does this scenario best illustrate?
A) Technological singularity
B) Technological lockout
C) Technological substitution
D) Technological determinism
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Chapter 8: Global Management
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Sample Questions
Q1) Metzen Corp., a U.S.-based clothing company, plans to open a branch in Japan by sending its American employees there. Before doing so, the company educates its employees about Japan with the help of pictures, audiobooks, and video recordings to present real-world situations. In the context of preparing for an international assignment, when would this type of training be given to employees?
A) During documentary training
B) During cultural simulation
C) During field simulation
D) During adaptive screening
Q2) When conducting global business, companies should attempt to identify the two types of political risk that are workforce quality and economic uncertainty.
A)True
B)False
Q3) Unlike nontariff barriers, tariffs _____.
A) decrease the cost of exported goods
B) increase the cost of imported goods
C) are direct taxes on imported goods
D) are nontax methods of reducing the volume of imported goods
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Chapter 9: Designing Adaptive Organizations
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Sample Questions
Q1) Sannomsy, a confectionary company, uses similar conveyor belts with several interchangeable parts and the same procedure for the manufacture of all the toffees in its product line. This gives the company an advantage over its competitors in terms of consistency in quality, efficient processes, and price leadership. In the context of organizational authority, Sannomsy is most likely using _____.
A) customization
B) decentralization
C) standardization
D) adaptation
Q2) Which of the following statements is true of functional departmentalization?
A) It allows work to be done by highly qualified specialists.
B) It is likely to lead to faster decision making as companies grow.
C) It causes duplication of resources, which often results in higher costs.
D) It is a hybrid structure in which two or more forms of departmentalization are used together.
Q3) A virtual organization is an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants.
A)True
B)False
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Page 11

Chapter 10: Managing Teams
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Sample Questions
Q1) Which of the following is true of the right team size for good performance?
A) A team must be small enough to encourage minority domination.
B) A team must be small in order to gain the advantages of team decision making.
C) A team must be large so that the team can be splintered into smaller subgroups.
D) A team must be large enough to take advantage of team members' diverse skills and knowledge.
Q2) Asterisk Inc. decided to change some of its policies. Jensen, a team manager, conducted a meeting to inform his team about the management's decision. During the meeting, the majority of Jensen's team members were in favor of the policies except Sandy. As a result, Sandy decided not to voice her concerns about the policy changes fearing negative consequences. This scenario illustrates the concept of _____.
A) groupthink
B) reverse psychology
C) synergy
D) conservative bias
Q3) Intentionally doing one's work badly is an example of a negative team norm.
A)True
B)False
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Chapter 11: Managing Human Resource Systems
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Sample Questions
Q1) At Corpceton, a plastic products manufacturing company, all newly hired machine operators are assigned to senior machine operators who train the former for a few weeks. The newly hired machine operators assist the senior machine operators in their work. After the new operators complete three months of probation in the company, each of them is given their own machine to operate. In the context of training methods, this scenario best illustrates _____.
A) on-the-job training
B) sensitivity training
C) vestibule training
D) refresher training
Q2) When managers give administrative feedback, they are acting as coaches.
A)True
B)False
Q3) Companies use early retirement incentive programs (ERIPs) to increase the number of employees in an organization.
A)True
B)False
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Page 13

Chapter 12: Managing Individuals and a Diverse Workforce
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Sample Questions
Q1) In which of the following ways can companies ensure that people with disabilities have the same opportunities as everyone else?
A) Recruiting disabled candidates at least for the entry-level jobs
B) Refraining from assigning additional responsibilities to disabled employees
C) Employing people with disabilities only for jobs that do not require movement
D) Providing reasonable workplace accommodations for disabled employees
Q2) Jayden is a freelance writer. He builds a good rapport with everybody he works with. Most agencies that hire him are happy with his work and his spontaneous nature. He is very broadminded and curious. He is accepting of other people's views and beliefs. Given this information, Jayden can be best described as being _____.
A) open to experiences
B) unconscientious
C) introverted
D) emotionally volatile
Q3) In the context of age discrimination, unlike younger workers, older workers:
A) care less about the quality of their work.
B) are more likely to consume alcohol at work.
C) are less likely to quit or show up late to work.
D) tend to engage more in workplace aggression.
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Page 14

Chapter 13: Motivation
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Sample Questions
Q1) Cynthia, a copy editor at a leading daily newspaper, wants one month's leave from work. Because of tight deadlines, her supervisor attempts to persuade her to cancel her leave by offering her a pay hike. However, Cynthia declines his offer. In the context of expectancy theory of motivation, this scenario best illustrates the factor of _____.
A) instrumentality
B) valence
C) reinforcement
D) affiliation
Q2) _____ says that people will be motivated at work when they perceive that they are being treated fairly.
A) Contingency theory
B) Goal-setting theory
C) Equity theory
D) Reinforcement theory
Q3) In the context of reinforcement theory, reinforcement contingencies directly affect the attractiveness of rewards.
A)True
B)False
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15

Chapter 14: Leadership
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Sample Questions
Q1) Which of the following statements is true of directive leadership?
A) It involves letting employees know precisely what is expected of them.
B) It involves being approachable and friendly to employees.
C) It involves consulting employees for their suggestions before making decisions.
D) It involves setting challenging goals and having high expectations of employees.
Q2) Will is the owner of a start-up. While hiring employees, he does not pay much attention to their previous performance records. However, he is very particular about employee attitude toward the organization. He mostly recruits outgoing people who he believes would effectively interact with customers. In the context of the Blake/Mouton leadership grid, which of the following leadership styles is Will using in this scenario?
A) The team management style
B) The country club style
C) The authority-compliance style
D) The impoverished style
Q3) Directive leadership is very similar to considerate leader behavior.
A)True
B)False
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Chapter 15: Managing Communication
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Sample Questions
Q1) In the context of communication, which of the following is a difference between encoding and decoding?
A) Unlike encoding, decoding is the process by which the receiver translates the verbal or symbolic form of a message into an understood message.
B) Encoding does not require a communication channel, whereas decoding requires a communication channel.
C) Unlike decoding, the process of encoding is immediately followed by the process of providing feedback to the sender of a message.
D) The process of encoding is affected by noise, whereas the process of decoding is not affected by noise.
Q2) When people are unsure of what to say, they tend to decrease their communication effectiveness by speaking softly. This example best illustrates _____ in nonverbal communication.
A) proxemics
B) kinesics
C) paralanguage
D) metalanguage
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17

Chapter 16: Control
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Sample Questions
Q1) The president of Krypton Inc. wants to know the company's current financial condition. The financial report that can provide this information is the _____.
A) cash flow statement
B) financial ratio report
C) balance sheet
D) income statement
Q2) Chace is a manager at Westwick Inc., an advertising company. He regularly holds meetings with his subordinates to track their work progress and address issues that they might be facing. This way, Chace tries to ensure that issues are identified early and work is completed on time. In this case, Chace is using _____.
A) feedback control
B) feedforward control
C) concurrent control
D) reactive control
Q3) Standards can be determined by listening to customers' comments and complaints.
A)True
B)False
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Chapter 17: Managing Information
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Sample Questions
Q1) Bramo Courier Services has set up an extranet website to enable its customers to place orders directly. It has also set up an intranet website to enable its employees to convey order and shipping information to the relevant departments within the firm. However, to ensure an effective and smooth exchange of information, Bramo Courier Services has to pay $100 million annually for Internet access. In this scenario, the cost that Bramo Courier Services incurs is an example of _____.
A) acquisition cost
B) processing cost
C) communication cost
D) retrieval cost
Q2) In _____, the different purchasing and ordering applications in companies interact automatically without any human input.
A) electronic data interchange
B) a corporate portal
C) collaborative decision-making software
D) an intranet
Q3) Data and information are the same as knowledge.
A)True
B)False
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Page 19

Chapter 18: Managing Service and Manufacturing Operations
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Sample Questions
Q1) Swiftspan Inc., a construction company, uses 202,500 gallons of paint a year. If the ordering cost is $32 per order and holding cost is $9 per gallon, the optimal quantity to order is _____.
A) 1,200 gallons
B) 2,400 gallons
C) 4,800 gallons
D) 3,600 gallons
Q2) According to total quality management (TQM), which of the following should be a company's primary goal?
A) Reciprocity
B) Distinctive competency
C) Participative management
D) Customer satisfaction
Q3) Which of the following is a common characteristic of quality products and quality services?
A) Reliability
B) Serviceability
C) Durability
D) Validity
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