Business Management Practice Exam
Course Introduction
Business Management is an interdisciplinary course that introduces students to the fundamental principles and practices involved in running and organizing a business. The course covers key topics such as organizational structure, leadership, strategic planning, human resource management, marketing, financial management, operations, and decision-making. Students will learn how managers coordinate resources, motivate teams, analyze business environments, and implement strategies to achieve organizational objectives. Through case studies, group projects, and real-world scenarios, students will develop analytical, problem-solving, and communication skills essential for effective management in a dynamic and competitive business environment.
Recommended Textbook
Management 7th Edition by Angelo Kinicki
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Page 2
Chapter 1: The Exceptional Manager: What You Do, How You
Do It
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147 Verified Questions
147 Flashcards
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Sample Questions
Q1) Using state-of-the-art computer software and hardware to help people work better together is known as ____.
A) a strategy database
B) collaborative computing
C) a knowledge base
D) a wisdom system
E) knowledge management
Answer: B
Q2) Maria, the public relations manager of a local library, is meeting with the news media regarding a new reading program for children. Maria is performing the _______ role.
A) spokesperson
B) disseminator
C) liaison
D) entrepreneur
E) figurehead
Answer: A
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Page 3
Chapter 2: Management Theory: Essential Background for the
Successful Manager
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Sample Questions
Q1) Gary Hamel of the Management Innovation Lab suggests that core beliefs about an organization can be rooted out by repeatedly asking the right questions, such as, "Is this a belief worth challenging?" or "Is this belief universally valid?"
A)True
B)False
Answer: True
Q2) Jeffrey Pfeffer and Robert Sutton believed that evidence-based management is based on the belief that facing the hard facts about what works and having to accept the nonsense that passes for sound advice will help organizations perform better.
A)True
B)False
Answer: False
Q3) Supporters of evidence-based management would say there are many really new ideas.
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Managers Changing Work Environment and
Ethical Responsibilities: Doing the Right Thing
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Sample Questions
Q1) The board of directors of a corporation is responsible to see that the company is being run according to the employees' interests.
A)True
B)False
Answer: False
Q2) Companies screen out dishonest, irresponsible workers after they are hired by checking employees' résumé and references.
A)True
B)False
Answer: True
Q3) Associations that are utilized by government agencies to monitor manufacturing and agricultural needs and developments are known as government regulators.
A)True
B)False
Answer: False
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Chapter 4: Global Management: Managing Across Borders
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Sample Questions
Q1) Roberto, the vice president of marketing, is talking to Francis, a sales manager in a foreign office, about several local situations that Francis's reps are facing in their territory. Roberto tells Francis that he believes there are differences and similarities between home and foreign personnel and practices, and that Francis should use whatever techniques are most effective. Trey is an example of a(n) ____ manager.
A) parochial
B) ethnocentric
C) global
D) geocentric
E) polycentric
Q2) Peter Agnefjäll, president and CEO of the IKEA Group, spends plenty of time with IKEA employees at all levels. This is an example of individualism/collectivism, which refers to the amount of time the managers, especially upper and middle management, spend with their employees.
A)True
B)False
Q3) Describe the five benefits for companies of expanding internationally. Give an example of each benefit.
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Chapter 5: Planning: The Foundation of Successful Management
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Sample Questions
Q1) The top management of Tasty Foods, a food distribution company, has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years. Greg, a division manager for Tasty Foods, has looked at his resources, and decided how his division can contribute to the two strategic goals set by upper management. These types of objectives set by Greg are _____.
A) vision statements
B) management guidelines
C) codes of ethics
D) tactical goals
E) operational goals
Q2) Getting a college degree is not only a big goal, it's a hard goal-difficult, stressful, expensive, and time-consuming.
A)True
B)False
Q3) Tactical planning is a type of operational planning done by upper management.
A)True
B)False
Q4) Contrast strategic, tactical, and operational planning.
Q5) Discuss the four-step process of MBO.
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Chapter 6: Strategic Management: How Exceptional Managers
Realize a Grand Design
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Sample Questions
Q1) A 2013 survey found that the use of mission and vision statements is popular among managers.
A)True
B)False
Q2) The Johnsons have owned a farm, Johnson Family Holdings Incorporated, for over 150 years. Al Johnson, president of Johnson Family Holdings, purchased a trucking company, shipping products for other farmers and businesses in their area. Later he opened a small store that carries a variety of products, and he even operates a small used auto dealership near the farm. This is an example of unrelated diversification.
A)True
B)False
Q3) Define and describe a trend analysis. Give an example.
Q4) A forecast is a(n) _____.
A) glimpse of what just happened
B) execution of strategy and making adjustments
C) projection for the future
D) analysis of the past
E) plan for implementing strategic plans
Q5) Summarize the three sources strategic position emerges from.
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Chapter 7: Individual and Group Decision Making: How Managers
Make Things Happen
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Sample Questions
Q1) Roberta, the HR manager, is considering if she should use a group to develop a plan to improve on the present diversity plan. The goal is to increase the diversity of their workforce. Summarize the advantages and disadvantages of using group decision making in this situation.
Q2) Anne, the department manager, has a good working relationship with her employees, believing in an open door policy, and she encourages the open exchange of opinions in her department. Anne utilizes the directive style of management.
A)True
B)False
Q3) The rational model of decision making explains how managers should make decisions.
A)True
B)False
Q4) Research has found that groups tend to make higher-quality decisions than when any individual acts alone.
A)True
B)False
Q5) Summarize some of the hindrances to perfectly rational decision making.
Page 9
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Chapter 8: Organizational Culture, Structure, and Design:
Building Blocks of the Organization
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Sample Questions
Q1) During a meeting, Tammy, the branch manager, was pointing to the corporate organization chart on the wall. Tammy remarked that "These people provide advice, recommendations, and research for us, and they are indicated with a dotted line. Jim, our CEO, and the vice presidents of our organization are up here, indicated on the organization chart by a solid line vertical line." The employees indicated on the organization chart by a solid line are ____, and those indicated by a dotted line are
A) line managers; temporary personnel
B) line managers; personnel in training
C) staff personnel; vital personnel
D) line managers; part-time personnel
E) line managers; staff personnel
Q2) The formal and informal marketing systems of goods, services, and ideas, along with the customer relationships, that an organization sells are known as its organizational structure.
A)True
B)False
Q3) Summarize organizational culture. Give an example of a company and describe its culture.
Q4) Define span of control. Contrast the two kinds of spans of control.
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Chapter 9: Human Resource Management: Getting the
Right People for Managerial Success
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Sample Questions
Q1) Stock options are found not to induce employees to be more productive or to attract or retain top performers.
A)True
B)False
Q2) Depending on preparation, the forced ranking performance review system may have negative effects on morale, productivity, and loyalty or it may encourage managers to identify and remove poor performers.
A)True
B)False
Q3) Google's treatment of its employees is indicative of its belief that its biggest competitive advantage lies in its personnel department.
A)True
B)False
Q4) An assessment center is typically used to assess physical capabilities of skilled labor candidates.
A)True
B)False
Q5) Give the advantages and disadvantages of internal and external recruiting.
Q6) Explain the three types of dismissals.
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Chapter 10: Organizational Change and Innovation: Lifelong
Challenges for the Exceptional Manager
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Sample Questions
Q1) Describe the three factors that companies can use to encourage innovation.
Q2) An example of an inside force for organizational change is secondhand shops suffering from a recession-induced decline in thrift store donations, even as consumer demand for used goods went through the roof.
A)True
B)False
Q3) The increasing diversity of the American workforce is an example of a(n) ______ force for change.
A) market
B) demographic
C) social and political
D) political
E) economic
Q4) What are two myths about innovation?
Q5) To carry out the diagnosis, OD consultants or managers use some combination of questionnaires, surveys, interviews, meetings, records, and direct observation to ascertain people's attitudes and to identify problem areas.
A)True
B)False
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Chapter 11: Managing Individual Differences and Behavior:
Supervising People As People
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Sample Questions
Q1) Define the Pygmalion effect. Explain how could it be used in a positive way by managers.
Q2) Emotional stability is the Big Five personality trait that refers to how dependable, responsible, achievement-oriented, and persistent one is.
A)True
B)False
Q3) Low self-esteem can be raised more by having the persons think of desirable characteristics they possess, rather than focusing on undesirable characteristics they do not have.
A)True
B)False
Q4) Extroversion is a stronger predictor of job performance than agreeableness.
A)True B)False
Q5) Cognitive dissonance, according to Leon Festinger, describes the psychological discomfort a person experiences between his or her cognitive attitude and incompatible behavior.
A)True B)False
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Chapter 12: Motivating Employees: Achieving Superior
Performance in the Workplace
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Sample Questions
Q1) Which of the following is a process perspective on motivation?
A) self-determination theory
B) job characteristics model
C) two-factor theory
D) goal-setting theory
E) acquired needs theory
Q2) What are the two assumptions on which fitting jobs to people is based? List two techniques for this type of job design.
Q3) A sales commission is an example of a ______ compensation plan.
A) pay-for-knowledge
B) profit-sharing
C) gainsharing
D) pay-for-performance
E) Scanlon
Q4) Job enrichment consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement.
A)True
B)False
Page 14
Q5) List and define each of the five core job characteristics.
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Chapter 13: Groups and Teams: Increasing Cooperation, Reducing Conflict
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Sample Questions
Q1) Teamwork increases costs and destructive internal competition.
A)True
B)False
Q2) What are the four types of work teams? Describe what each does and provide an example of each.
Q3) A work team may be self-managed, cross-functional, or virtual; however it cannot be all of these at the same time.
A)True
B)False
Q4) Group cohesion arises during the norming stage of team development.
A)True
B)False
Q5) More than 75% of the top 1,000 U.S. companies use some form of self-managed work teams.
A)True
B)False
Q6) An example of a maintenance role is an initiator, someone who suggests new goals or ideas.
A)True
B)False Page 15
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Page 16
Chapter 14: Power, Influence, and Leadership: From
Becoming a Manager to Becoming a Leader
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Sample Questions
Q1) Identify at least five of the influence tactics used to get people to do what you want. Is each of these a hard or soft tactic? Which one is most frequently used? Provide examples of how each might be used.
Q2) Being good at several things will be more advantageous in the long run than being excellent at one narrow specialty.
A)True
B)False
Q3) What is servant leadership? What are the characteristics of a servant leader?
Q4) Unlike other models, which presuppose stable relationships between leaders and followers, the LMX model assumes each manager-employee relationship is unique. A)True
B)False
Q5) It's critical you understand your boss-interpersonal style, leadership style, pressures, goals, expectations, and strengths and weaknesses. To discover these, what are at least four questions might you try asking him or her?
Q6) Contrast management with leadership and explain their relationship to one another using John Kotter's criteria.
Page 17
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Chapter 15: Interpersonal and Organizational
Communication: Mastering the Exchange of Information
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Sample Questions
Q1) Listening with judgment improves communication.
A)True
B)False
Q2) Noise is any disturbance that interferes with the transmission of a message and it can occur in any medium.
A)True
B)False
Q3) Encoding the message is the first step of the communication process.
A)True
B)False
Q4) Internet-based and mobile technologies used to generate interactive dialogue with members of a network are collectively known as cybertechnology.
A)True
B)False
Q5) Charles shut his eyes and shook his head when his boss announced the holiday schedule. This is an example of a channel.
A)True
B)False
Q6) What are some tips for becoming a good reader?
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Chapter 16: Control Systems and Quality Management:
Techniques for Enhancing Organizational Effectiveness
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Sample Questions
Q1) A principle of Deming management is that quality should be aimed at meeting the needs and expectations of the ultimate user.
A)True
B)False
Q2) Which of the following is not a purpose of a manager?
A) plan
B) organize
C) get people to achieve productivity and realize results
D) control
E) increase globalization
Q3) Lean Six Sigma focuses on problem solving and performance improvement, or speed with excellence of a well-defined project.
A)True
B)False
Q4) Corrective action is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
A)True
B)False
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