Business Management Exam Bank
Course Introduction
Business Management is a comprehensive course that introduces students to the fundamental principles and practices essential for effectively managing organizations. Covering topics such as organizational structures, leadership, strategic planning, decision-making, human resource management, and marketing, the course provides a broad understanding of how businesses operate in competitive environments. Students will analyze real-world case studies, explore modern management tools, and develop problem-solving skills necessary to drive organizational success and innovation. Through practical assignments and collaborative projects, learners gain valuable insight into the roles and responsibilities of managers in a variety of business contexts.
Recommended Textbook Fundamentals of Management 8th Edition by
Stephen P. Robbins
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Page 2
Chapter 1: Managers and Management
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Sample Questions
Q1) A goal of efficiency is to minimize output costs while maximizing input costs.
A)True
B)False
Answer: False
Q2) Good management strives for ________.
A)low efficiency and high effectiveness
B)high efficiency and low effectiveness
C)high efficiency and high effectiveness
D)moderate efficiency and moderate effectiveness
Answer: C
Q3) Understanding building codes would be considered a(n)________ skill for a building contractor.
A)interpersonal
B)technical
C)conceptual
D)political
Answer: B
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Page 3
Chapter 2: The Management Environment
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Sample Questions
Q1) The market crash in 2008 was largely a result of ________ the free market system. A)newfound confidence in B)indifference toward C)new curiosity in D)an erosion of trust in
Answer: D
Q2) In a short essay, describe the parameters in an environmental uncertainty matrix. Answer: The horizontal axis of the matrix identifies how much change there is in the organization's environment.If change is minimal, the organization exists in a stable environment and doesn't need to worry about new technologies or strong competitors suddenly appearing.In contrast, in a dynamic environment, technological breakthroughs and new rivals do appear frequently.The matrix's vertical axis measures complexity-the number of components that the organization must deal with in its environment.A simple organization has few rivals, suppliers, competitors, and agencies to deal with.A complex organization has many of these components to deal with.
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4
Chapter 3: Integrative Managerial Issues
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Sample Questions
Q1) Managers should expect contingent workers and core employees to be equally committed to the organization's goals.
A)True
B)False
Answer: False
Q2) Hofstede based his ratings on the traits of people of different nationalities with whom he was personally acquainted.
A)True
B)False
Answer: False
Q3) In Denmark Jana met people who marveled about the ability of Americans to be so "bold" and flexible when it came to making decisions about the future, while the Danish tended to rely on rules when facing uncertainty.How would you characterize this trait that Americans appear to have?
A)low uncertainty avoidance
B)high uncertainty avoidance
C)high power distance
D)individualistic
Answer: A
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Page 5
Chapter 4: Foundations of Decision Making
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Sample Questions
Q1) Implementing a procedure requires more judgment and interpretation than implementing a policy.
A)True
B)False
Q2) Which of the following is NOT a way in which intuition guides people who are making decisions?
A)Intuition provides ethics and values guidelines.
B)Intuition provides a formal analysis method.
C)Intuition provides experiences to draw from.
D)Intuition draws on knowledge, skills, and training.
Q3) Two major advantages of electronic meetings are anonymity and honesty.
A)True
B)False
Q4) Which of the following would be a fairly objective criterion by which a bicycle buyer could assess different bike models?
A)handling
B)weight
C)quality of craftsmanship
D)style
Q5) In a short essay, discuss bounded rationality and satisficing.
Page 6
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Chapter 5: Foundations of Planning
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Sample Questions
Q1) In a short essay, compare strategic plans and tactical plans.
Q2) A six-month plan qualifies as a short-term plan.
A)True
B)False
Q3) A mission statement does NOT include which of the following?
A)the customers of a company
B)strategy for success
C)why the company is in business and what it hopes to accomplish
D)the company's basic beliefs
Q4) Planning gives organizations a way to deal with change that ________.
A)eliminates all uncertainty
B)reduces uncertainty
C)reduces certainty
D)increases ambiguity
Q5) An organization that fails to plan will find it hard to assess progress.
A)True
B)False
Q6) In a short essay, identify criticisms of formal planning.
Q7) In a short essay, discuss Porter's focus strategy.
Q8) In a short essay, discuss Porter's differentiation strategy.
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Chapter 6: Organizational Structure and Design
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Sample Questions
Q1) Unity of command prevents an employee from trying to follow two conflicting commands at once.
A)True
B)False
Q2) All of the following are part of the process of organizational design EXCEPT
A)deciding how specialized jobs should be
B)determining rules for employee behavior
C)determining the level at which decisions are made
D)determining goals for the organization
Q3) A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating ________.
A)line authority
B)staff delegation
C)provisional accountability
D)responsibility
Q4) Grouping jobs on the basis of major product areas is termed customer departmentalization.
A)True
B)False
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Chapter 7: Managing Human Resources
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Sample Questions
Q1) Which form of on-the-job training might have a trainee working with a single mentor from the organization?
A)vestibule training
B)simulation exercises
C)understudy assignments
D)job rotation
Q2) To respond to a candidate for the executive position who wants to know more about the job, Frances is likely to send which of the following?
A)job analysis
B)job description
C)job title
D)human resource inventory
Q3) In a short essay, discuss on-the-job training methods.
Q4) Health insurance is an example of which of the following?
A)compensation
B)employee benefit
C)salary
D)wages
Q5) In a short essay, discuss off-the-job training methods.
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Chapter 8: Managing Change and Innovation
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Sample Questions
Q1) A stressor is defined as ________.
A)a personal or job-related factor that causes stress
B)a person who causes stress
C)an attitude that causes stress
D)an emotion that causes stress
Q2) Which of the following is an example of a structural organizational change?
A)changing employee attitudes
B)changing work practices
C)purchasing new work equipment
D)changing managerial span of control
Q3) The primary goal of the OD method called teambuilding is to ________.
A)increase efficiency
B)increase trust and openness
C)identify troublemakers
D)play games such as volleyball to build morale
Q4) An employee who feels unsettled because he is not sure what his responsibilities are is experiencing role overload stress.
A)True
B)False
Q5) In a short essay, explain the three types of organizational change.
Page 10
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Chapter 9: Foundations of Individual Behavior
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Sample Questions
Q1) A person rating high on the investigative personality type would have the best match with which job?
A)nurse
B)mechanic
C)reporter
D)counselor
Q2) Any relatively permanent change in behavior that occurs as a result of experience is known as ________.
A)reflex
B)learning
C)instinctual behavior
D)intrinsic behavior
Q3) In everyday parlance, the term attitude refers only to the ________ component of attitude.
A)cognitive
B)informational
C)behavioral
D)affective
Q4) In a short essay, define learning and then explain operant conditioning.
Q5) Define organizational behavior and describe its goals.
11
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Chapter 10: Understanding Groups and Managing Work Teams
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Sample Questions
Q1) Members of an organization typically ________ the status of other organizational members.
A)agree about
B)disagree about
C)cannot recognize
D)refuse to recognize
Q2) These are the Big Five personality traits that seem to have the greatest influence on team performance.
A)conscientiousness and openness to experience
B)agreeableness and emotional stability
C)emotional stability and extraversion
D)extraversion and conscientiousness
Q3) Teams composed of individuals from the same department or functional area are called ________.
A)cross-functional teams
B)self-managed work teams
C)problem-solving teams
D)virtual teams
Q4) In a short essay, discuss how social loafing can affect a team and how it can be combatted.
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Chapter 11: Motivating and Rewarding Employees
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Sample Questions
Q1) Maslow states that people can no longer be motivated by a given need if it is largely taken care of.
A)True
B)False
Q2) In Maslow's system, a person takes care of social needs before worrying about personal safety.
A)True
B)False
Q3) The integrated model for motivation (Exhibit 11-9, page 285)features the following basic sequence.
A)effort performance rewards individual goals
B)effort equity goals needs
C)needs factors extrinsic factors individual goals
D)needs goals individual effort organizational goals
Q4) Maslow's hierarchical model ________.
A)has been validated by a number of studies
B)has never been validated by studies
C)has been validated by empirical studies
D)has been invalidated by intuitive means
Q5) In a short essay, describe and discuss the job characteristics model.
Page 13
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Chapter 12: Leadership and Trust
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Sample Questions
Q1) Since charisma is an inborn trait, no efforts have ever been made to train people to be charismatic.
A)True
B)False
Q2) Experts state that 85 percent of all managers are not natural team leaders.
A)True
B)False
Q3) A(n)________ leader in path-goal theory gives specific guidance in performing tasks.
A)directive
B)achievement-oriented
C)participative
D)supportive
Q4) What does Fiedler's least-preferred coworker questionnaire measure?
A)the most common leadership style among all leaders
B)leadership style of respondents who took the test
C)the most effective leadership style
D)the least effective leadership style
Q5) In a short essay, discuss how emotional intelligence (EI)affects leadership.
Q6) In a short essay, describe the basics of situational leadership theory (SLT).
Page 14
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Chapter 13: Communication and Information
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Sample Questions
Q1) Filtering refers to how a listener hears only what he or she wants to hear.
A)True
B)False
Q2) U.S.managers tend to rely on this style of communication.
A)formal and written
B)informal and unwritten
C)verbal and informal
D)verbal and formal
Q3) A manager who is trying to sound conciliatory should make sure that ________.
A)her voice is soft
B)she smiles when she speaks
C)her voice shows no anger
D)her voice shows no emotion
Q4) In order to be sent, a message needs to be decoded.
A)True
B)False
Q5) Electronic communication is not admissable in court, so employees don't need to worry about what they say online.
A)True
B)False
Page 15
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Chapter 14: Foundations of Control
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Sample Questions
Q1) To carry out the second step of the control process, managers at an electric shaver company need to compare the number of actual shavers sold to ________.
A)a competitor's sales totals
B)planning goals for sales totals
C)sales totals from last year
D)the number of possible shaver customers
Q2) ________ is a measure of an organization's ability to meet its current debt obligations.
A)Profitability
B)Activity
C)Leverage
D)Liquidity
Q3) This is the most informal form of performance measurement.
A)oral reports
B)written reports
C)statistical reports
D)personal observation
Q4) In a short essay, describe feedback control and give an example of its use.
Q5) In a short essay, describe the third step in the control process.
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Chapter 15: Operations Management
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Sample Questions
Q1) Deming advocated an approach in which managers never get complacent about the quality of their product.
A)True
B)False
Q2) A load chart is a ________ that schedules capacity by ________.
A)graph; activity
B)PERT; workstation
C)modified Gantt chart; workstation
D)modified Gantt chart; activity
Q3) The key to any job in a successful value chain is that it ________.
A)is well defined and easy to carry out
B)best helps the chain create customer value
C)is maximally efficient
D)saves time and money
Q4) In a short essay, define and describe operations management.
Q5) In the Six Sigma system, this is the highest level of quality.
A)Zero Sigma
B)One Sigma
C)Four Sigma
D)Six Sigma
17
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Chapter 16: Appendix: History Module
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Sample Questions
Q1) The Industrial Revolution is largely credited with ushering in the birth of ________.
A)the corporation
B)fair pay for workers
C)craftsmanship
D)fair treatment for workers
Q2) Organizational behavior studies were based purely on theoretical ideals rather than actual observation.
A)True
B)False
Q3) In a short essay, describe how the work of Abraham Maslow influenced management.
Q4) A contingency variable is a factor that can ________.
A)make an organization successful
B)destroy an organization
C)influence choice of managerial style
D)improve organizational morale
Q5) The quantitative approach to management evolved out of mathematical methods of solving military problems.
A)True
B)False
Page 18
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Chapter 17: Appendix: Entrepreneurship Module
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Sample Questions
Q1) The fourth step in the initial (pre-planning)phase of the entrepreneurial process is
A)exploring finance options
B)researching the venture's feasibility
C)pinpointing potential competitive advantages
D)identifying potential opportunities
Q2) In a short essay, explain how entrepreneurial you think you are.
Q3) Saving money by avoiding the expense of professional legal and accounting advice is often a mistake for entrepreneurs.
A)True
B)False
Q4) The classic "entrepreneurial personality" is a person who is high in self-confidence, motivation, and energy.
A)True
B)False
Q5) In a short essay, explain what an entrepreneurial venture is and how it differs from a small business.
Q6) In a short essay, describe the classic entrepreneurial personality.
Q7) In a short essay, describe how an entrepreneur is like a jazz band leader.
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Chapter 18: Appendix: Quantitative Module
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Sample Questions
Q1) A payoff matrix features strategies S1, S2, S3, and S4 and competitive strategies CA1, CA2, and CA3.In a short essay, explain how maximum regret can be calculated for an S1 strategy.
Q2) In a short essay, explain the type of strategy that a pessimistic manager would take for his company.
Q3) An optimistic manager will typically follow a maximax choice.
A)True
B)False
Q4) This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.From Bigg's point of view, the S3 maximum regret is 1.
CA1 CA2 CA3
S1 8 5 12
S2 9 14 3
S3 16 13 20
A)True
B)False
Q5) In a short essay, explain the type of strategy that an optimistic manager would take for her company.
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Chapter 19: Appendix: Career Module
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Sample Questions
Q1) Today, career development typically focuses on an individual advancing ________ on his or her own.
A)through different organizations without ever improving his or her status
B)by holding a single job in a single organization
C)by holding a series of jobs in a single organization
D)through a series of jobs for different organizations
Q2) The best way to describe success is that it is a matter of matching up opportunities, ________, and luck.
A)intelligence
B)talent
C)skill
D)preparation
Q3) This is the best time to take risks in your life.
A)when you are established
B)when you are young
C)when you are old
D)when you have something to lose
Q4) Describe what the best kind of competitive advantage to have is.
Q5) Describe how career planning was traditionally done in the workplace of the past.
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