Business Management Practice Questions
Course Introduction
Business Management is an interdisciplinary course that explores the fundamental principles, functions, and practices of effectively managing organizations. Students will examine key topics such as planning, organizing, leading, and controlling resources to achieve organizational goals. The course covers areas including strategic decision-making, human resource management, marketing, operations, and financial management. Emphasis is placed on developing critical thinking, problem-solving, and leadership skills necessary to navigate the challenges of contemporary business environments. Through case studies, practical projects, and collaborative exercises, students gain a comprehensive understanding of how managers operate and drive organizational success.
Recommended Textbook
Essentials of Contemporary Management 7th Edition by Gareth JonesS
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Page 2
Chapter 1: The Management Process Today
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Sample Questions
Q1) Which of the following is true of middle managers?
A) They decide how the different departments should interact.
B) They are responsible for daily supervision of the nonmanagerial employees.
C) They develop skills and know-how so that the organization is efficient and effective.
D) They are responsible for the performance of all departments.
Answer: C
Q2) The creation of a new vision for a struggling company based on a new approach to planning and organizing to make better use of a company's resources and allow it to survive and prosper is ________ management.
A) performance
B) total quality
C) turnaround
D) impression
Answer: C
Q3) The outcome of organizing is the creation of a strategy.
A)True
B)False
Answer: False
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3
Chapter 2: Values, Attitudes, Emotions, and Culture: the
Manager As a Person
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Sample Questions
Q1) Unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group are known as ________.
A) norms
B) goals
C) values
D) ideologies
E) rules
Answer: A
Q2) The personal characteristics of the founders of an organization have an important role in the creation of the organization's culture.
A)True
B)False
Answer: True
Q3) Emotional intelligence concerns understanding and managing the moods and emotions of others but not oneself.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Managing Ethics and Diversity
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Sample Questions
Q1) What is the extent of the ethics ombudsman's authority in monitoring ethical practices and procedures?
A) Within the branch office
B) Within operations departments
C) Within the administrative circle
D) Within the entire organization
Answer: D
Q2) Taking quick action to correct inequalities and curtailing discriminatory behavior would be the duty of a manager in a ________ role.
A) leader
B) disturbance handler
C) negotiator
D) liaison
Answer: B
Q3) The term "diversity" refers to differences in gender and age, but not to those in sexual orientation.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Managing in the Global Environment
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Sample Questions
Q1) Norms that are central to the functioning of a society and whose violation brings serious retribution are known as ________.
A) sanctions
B) folkways
C) mores
D) rituals
Q2) What are technological forces? Explain their implications for managers and organizations.
Q3) Customers are the most important group in the success of any company. Discuss the various types of customers that exist for Dell Computer and discuss how Dell needs to respond differently to the needs of its different customer groups if it is to be successful.
Q4) A society that emphasizes "living for the moment" is said to have ________.
A) high power avoidance
B) low power avoidance
C) long-term orientation
D) short-term orientation
Q5) What is a tariff? Explain the reason for removing tariffs and the effects of governments raising tariff barriers.
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Chapter 5: Decision Making, Learning, Creativity, and Entrepreneurship
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Sample Questions
Q1) The main reason for the loss of productivity in brainstorming is ________.
A) complex mental models
B) groupthink
C) production blocking
D) bounded rationality
Q2) Dale, a manager, is assessing possible alternatives for the solution of a quality problem in his department. As Dale does so, he attempts to determine if a possible alternative will threaten other company projects. Which of the following criteria of decision-making is being implemented by Dale?
A) Economic feasibility
B) Practicality
C) Legality
D) Ethicalness
Q3) At the heart of organizational learning is ________.
A) devil's advocacy
B) risk-taking
C) satisficing
D) creativity
Q4) Explain the different ways by which organizations can promote intrapreneurship.
Q5) Define groupthink. Explain a technique that counteracts groupthink.
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Chapter 6: Planning, Strategy, and Competitive Advantage
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Sample Questions
Q1) When only one central, guiding plan is put into operation to achieve an organizational goal, the organization is experiencing ________.
A) accuracy
B) flexibility
C) unity
D) continuity
Q2) What is the major advantage of a multidomestic strategy?
A) The ability to gain market share or charge higher prices for customized product offerings and marketing approaches to local conditions
B) The significant cost savings associated with not having to customize products and marketing approaches to different national conditions
C) The high-quality skills of foreign manufacturers and the specialized knowledge of foreign managers about the needs of local customers
D) The reduced level of risk owing to the managers' full control over all aspects of their foreign subsidiary's operations
Q3) Explain a SWOT analysis. Describe briefly the steps involved in a SWOT analysis.
Q4) Give the four major reasons why planning is important.
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8
Chapter 7: Designing Organizational Structure
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Sample Questions
Q1) The degree to which a job design gives a worker the freedom to schedule his/her tasks and to decide how to carry them out is known as the task identity.
A)True
B)False
Q2) Alkyl, Ltd., one of the leading shoe manufacturers, enters into a contract with Blinx-a foreign manufacturer-to only manufacture its shoes. In this scenario, Alkyl, Ltd. is following the ________ strategy.
A) franchising
B) licensing
C) green field venturing
D) outsourcing
Q3) An organization whose members are linked by computers, email, computer-aided design systems, videoconferencing, and cloud-based software is a ________ organization.
A) tall
B) complex
C) flat
D) boundaryless
Q4) Describe the matrix structure and the concept of the "two-boss employees."
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Chapter 8: Control, Change, and Entrepreneurship
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Sample Questions
Q1) Brennan Manufacturing monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Brennan Manufacturing is using ________ control.
A) feedforward
B) concurrent
C) MBO
D) feedback
Q2) The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is ________ control.
A) feedforward
B) MBO
C) feedback
D) concurrent
Q3) Management by objectives (MBO) is one way that managers can use to evaluate the performance of subordinates. Discuss the steps involved in using this technique.
Q4) How does organizational culture help managers exert control over subordinates?
Q5) List the common problems entrepreneurs have in managing their organizations.
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Chapter 9: Motivation
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Sample Questions
Q1) Jennifer perceives that though she works harder than her coworker Kelly, she is paid the same. This is an example of ________.
A) the valence effect
B) extinction
C) negative reinforcement
D) underpayment inequity
Q2) People experiencing overpayment inequity are most likely to ________.
A) raise their perceptions of their own inputs
B) ask for a raise
C) work slower
D) be absent more
Q3) Psychologist David McClelland extensively researched the needs for achievement, affiliation, and power. Give an account of these needs and their influence in the workplace.
Q4) In Herzberg's theory, needs that are related to the physical and psychological context in which the work is performed are known as motivator needs.
A)True
B)False
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Chapter 10: Leaders and Leadership
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Sample Questions
Q1) Which of the following best describes relationship-oriented leaders?
A) Leaders whose primary concern is to develop good relationships with their subordinates and to be liked by them
B) Leaders whose primary concern is to ensure that subordinates perform at a high level
C) Leaders whose primary concern is to develop a team that is above the rest
D) Leaders whose primary concern is to ensure that teams work independently
Q2) According to the trait model, the attribute of leadership that helps managers avoid acting selfishly, control their feelings, and admit when they have made a mistake is
A) dominance
B) honesty
C) maturity
D) tolerance for stress
Q3) Transformational leaders do not engage in transactional leadership.
A)True
B)False
Q4) Name and explain at least three ways that emotional intelligence can increase leader effectiveness.
Q5) Explain with examples what the "behavior model" of leadership is.
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Chapter 11: Effective Team Management
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Sample Questions
Q1) Joanna, a manager, is responsible for organizing a team for the development of a new product. To be successful in creating synergy in the team, Joanna's top priority should be to ________.
A) choose members of the most diverse backgrounds possible B) supervise the group closely
C) bring in members with complementary skills relevant to the work
D) choose members who have worked together previously without any problems
Q2) A group of employees at Swift Motors has initiated a marathon run with the aim of raising funds for the maintenance of a children's park in Chicago. This group can be defined as a(n) ________ group.
A) virtual
B) formal
C) command
D) interest
Q3) As group cohesiveness increases, ________.
A) participation of members decreases
B) members share more information
C) members are less open with each other
D) communication effectiveness declines
Q4) Explain the reasons why group members need to conform to norms.
Page 13
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Chapter 12: Building and Managing Human Resources
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Sample Questions
Q1) Steffie has requested a week's leave to be with her mother, who is very ill. Her manager refuses to grant her the leave even though Steffie is aware that this would result in a loss of pay and she is agreeable to it. If her manager does not grant Steffie leave, the employer is violating ________.
A) the Age Discrimination in Employment Act
B) Title VII of the 1964 Civil Rights Act
C) the Family and Medical Leave Act
D) the Equal Pay Act
Q2) The degree to which a test measures what it is supposed to measure is known as the reliability of the test.
A)True
B)False
Q3) Feedback from a performance appraisal system can serve a developmental purpose for managers.
A)True
B)False
Q4) Write a note on the components of performance appraisal and feedback and pay and benefits to the employees.
Q5) Describe collective bargaining.
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Chapter 13: Communication and Information Technology Management
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Sample Questions
Q1) The process in which the receiver interprets and tries to make sense of the message is known as ________.
A) encoding
B) scrambling
C) feedback
D) decoding
Q2) The feedback phase of the communication process is initiated by the original sender (who becomes a receiver).
A)True
B)False
Q3) Briefly explain the role of nonverbal communication in the communication process.
Q4) Discuss the meaning of a "decision support system."
Q5) Which of the following factors helps determine the quality of information?
A) Profitability
B) Accuracy
C) Variety
D) Consistency
Q6) Discuss the four factors that determine how useful information is to a manager.
Q7) What are some of the forms of e-mail abuse? What can managers do to avoid this?
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Chapter 14: Operations Management: Managing Vital
Operations and
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Sample Questions
Q1) The radical redesign of the way work is done in order to achieve dramatic improvements in critical measures of performance is known as ________.
A) continuous improvement
B) kanban
C) kaizen
D) process reengineering
Q2) Describe a just-in-time (JIT) inventory system.
Q3) Discuss the link between customer responsiveness and an organization's production system.
Q4) Under a JIT inventory system, parts and supplies arrive at the organization
A) prior to work-scheduling
B) two weeks prior to being needed
C) when needed
D) twice a week
Q5) Describe what is meant by flexible manufacturing systems. Discuss how flexible manufacturing systems can improve an organization's responsiveness to customers.
Q6) Explain improving efficiency and the factors that help enhance this process.
Q7) Describe the products that most customers prefer.
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