Business Management
Practice Questions
Course Introduction
Business Management is a comprehensive course that explores the fundamental principles and practices necessary for successfully managing organizations of all sizes. Covering topics such as organizational structure, leadership, strategic planning, operations, human resource management, and decision-making, the course equips students with critical analytical and problem-solving skills. Students gain an understanding of the dynamic business environment, learn how to formulate and implement effective business strategies, and develop the managerial competencies needed to lead teams, manage resources, and drive organizational success.
Recommended Textbook
Fundamentals of Management Essential Concepts and Applications 10th Edition by Stephen P.
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19 Chapters
2671 Verified Questions
2671 Flashcards
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Page 2
Chapter 1: Managers and Management
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) All levels of management between the supervisory level and the top level of the organization are termed ________.
A)middle managers
B)first-line managers
C)supervisors
D)team leaders
Answer: A
Q2) How do customers play a role in changing the job of the modern manager?
A)Managers are learning to think of customers as adversaries in a battle of survival.
B)Managers are inviting customers to take control of the planning and design of new products.
C)Managers are increasingly de-emphasizing customer satisfaction as a major goal.
D)Managers are increasingly including customer satisfaction as a major goal.
Answer: D
Q3) Effectiveness refers to the attainment of the organization's goals.
A)True
B)False
Answer: True
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Chapter 2: The Management Environment
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143 Flashcards
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Sample Questions
Q1) Using special language and unique terms to describe things is part of how culture is communicated.
A)True
B)False
Answer: True
Q2) What did the effect of a volcanic eruption in Iceland have on the production of Nissans in a plant in Japan illustrate?
A)how much organizations depend on their banks
B)how much organizations depend on their external environment
C)how much organizations depend on corporate culture
D)how much organizations depend on a strong brand image
Answer: B
Q3) Experts believe that in the future, income disparity between countries and individual wage earners will be eliminated.
A)True
B)False
Answer: False
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Chapter 3: Integrative Managerial Issues
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) When organizations go global, they often start by simply exporting products to one or more foreign countries.
A)True
B)False
Answer: False
Q2) There is little evidence that managers of major organizations ever fail to act responsibly and ethically.
A)True
B)False
Answer: False
Q3) About ________ of organizations of 10,000 or more employees have a written code of ethics.
A)one-third
B)half
C)70 percent
D)97 percent
Answer: D
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Page 5
Chapter 4: Foundations of Decision Making
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150 Flashcards
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Sample Questions
Q1) Which of the following is NOT a reason why managers often resort to using heuristics?
A)They seem to eliminate complexity.
B)They seem to eliminate ambiguity.
C)They save time.
D)They thoroughly explore all alternatives.
Q2) Which of the following is NOT a characteristic of a creative problem solver?
A)self confidence
B)tolerance for ambiguity
C)frustrates easily
D)accepts risks readily
Q3) Emotions and feelings ________ decision making.
A)often have no effect on
B)can improve
C)always decrease performance in
D)are more important than facts and logic in
Q4) Identifying the wrong problem is just as much a failure for a manager as identifying the right problem and failing to solve it.
A)True
B)False
Page 6
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Chapter 5: Foundations of Planning
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) This term describes an electric shaver company that carefully observes its competitor's production line to look for ways to improve its own manufacturing process.
A)trademarking
B)benchmarking
C)quality engineering
D)reverse marketing
Q2) Most managers feel that formal, top-down plans created by corporate planning departments are ________.
A)very useful
B)usually unsatisfactory
C)very detailed
D)excellent
Q3) The most drastic renewal strategy an organization can carry out is a retrenchment strategy.
A)True
B)False
Q4) In a short essay, discuss Porter's focus strategy.
Q5) In a short essay, identify criticisms of formal planning.
Q6) In a short essay, define and discuss management by objectives (MBO).
Page 7
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Chapter 6: Organization Structure
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Sample Questions
Q1) Organizational design is the process in which managers change or develop an organization's structure.
A)True
B)False
Q2) Unity of command prevents an employee from trying to follow two conflicting commands at once.
A)True
B)False
Q3) In a matrix structure, a group member will typically report to ________.
A)a project manager only
B)both a project manager and functional department head
C)a functional department head only
D)Group members are fully autonomous in a matrix structure, so they don't report to anyone.
Q4) Today's managers are moving away from formalization and trying to be this.
A)more rigorous
B)more flexible
C)more strict
D)less permissive
Q5) In a short essay, describe the characteristics of a divisional structure.
Page 8
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Chapter 7: Managing Human Resources
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Sample Questions
Q1) Job training in the United States has been significantly impacted by advances in information technology.
A)True
B)False
Q2) Employment planning includes two steps: assessing current human resources needs and developing a plan to meet those needs.
A)True
B)False
Q3) In an assessment center, an applicant for an engineering job might ________.
A)be interviewed by her prospective boss
B)take technical written tests
C)be interviewed by fellow employees
D)be given an engineering problem to solve
Q4) In a short essay, discuss the performance-simulation test as a selection device for HRM.
Q5) Companies find that it is impossible to stop giving employee pensions.In fact, the number of employees on pension plans has risen over the last twenty years.
A)True
B)False
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Chapter 8: Managing Change and Innovation
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153 Verified Questions
153 Flashcards
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Sample Questions
Q1) In a short essay, discuss ways that managers can help to reduce stress for their employees that originates outside of the workplace.
Q2) Stress from an employee's personal life can best be helped by this.
A)job redesign
B)MBO
C)employee assistance programs
D)performance planning programs
Q3) In process consultation, ________ observe and analyze an organization to find ways to improve interpersonal processes.
A)outside consultants
B)top-level managers
C)ordinary employees
D)company efficiency specialists
Q4) Stress in the workplace is an adverse reaction that people have in response to ________.
A)lack of ambition
B)demands, constraints, and opportunities
C)having too much confidence in oneself
D)too much ambition
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Chapter 9: Foundations of Individual Behavior
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151 Flashcards
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Sample Questions
Q1) Taking a job in a repressive country that you disapprove of politically might cause discomfort from dissonance unless ________.
A)the job suits you well
B)the job offers enormous pay
C)the job offers little pay
D)the job does not suit you well
Q2) One of the challenges in understanding organizational behavior is that it addresses issues that aren't obvious.
A)True
B)False
Q3) According to Holland's social scale, becoming a lawyer would be a good job match for someone with this personality type.
A)realistic
B)investigative
C)conventional
D)enterprising
Q4) Negative reinforcement is the withdrawal of something unpleasant.
A)True
B)False
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Chapter 10: Understanding Groups and Managing Work Teams
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151 Flashcards
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Sample Questions
Q1) Which of the following should a team try to completely eliminate, if possible?
A)conflict
B)disagreement
C)social loafing
D)individual accountability
Q2) Which of the following identifies the most common reason for a manager deciding not to assemble a team?
A)when the task can be better completed by an individual than a group
B)when the task is highly complex
C)when the task is ill-defined
D)when the task is thankless
Q3) In a brief essay, discuss how managers can use selection to shape team behavior.
Q4) Which of the following would a self-managed work team be LEAST likely to do?
A)select all projects it works on
B)make decisions
C)implement decisions it makes D)assign tasks
Q5) In a short essay, discuss the first stage of group development.
Page 12
Q6) In a short essay, discuss how the work of Solomon Asch might affect managerial behavior.
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Chapter 11: Motivating and Rewarding Employees
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156 Flashcards
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Sample Questions
Q1) In a short essay, list and discuss the three-needs theory according to David McClelland.Then identify which of these needs has been studied most extensively and discuss the findings of this research.
Q2) In McGregor's theory of motivation, managers with a Theory Y view of life think people need to be given the freedom to make their own choices.
A)True
B)False
Q3) McGregor holds the opinion that managers are less successful when they adopt a Theory Y view of human nature.
A)True
B)False
Q4) According to expectancy theory, managers should give all workers the same rewards.
A)True
B)False
Q5) Motivation is a drive that some people have and others don't have.
A)True
B)False
Q6) In a short essay, list and discuss how Maslow's hierarchy of needs theory works.
Page 14
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Chapter 12: Leadership and Trust
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Sample Questions
Q1) Path-goal theory states that a directive leadership style works best when tasks are ambiguous.
A)True
B)False
Q2) A leader who ranks 9,9 in the Managerial Grid would have more concern for people than production.
A)True
B)False
Q3) In the Ohio State studies, ________ refers to how much mutual trust exists between employees and leaders.
A)consideration of limitations
B)consideration
C)initiating structure
D)initiating ideas
Q4) In the Ohio State studies, ________ refers to how strict a leader's standards are.
A)independent dimensions
B)comprehensive structure
C)initiating structure
D)consideration
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Chapter 13: Managing 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) Reading a movie script allows you to perceive ________ forms of communication.
A)verbal, body language, and verbal intonation as
B)only verbal
C)only nonverbal
D)both verbal and nonverbal
Q3) In a short essay, explain the ways that groups can "meet" through technology to communicate and share information.
Q4) Which of the following best expresses the philosophy of a learning culture within an organization?
A)Knowledge is a resource.
B)Knowledge is a weapon.
C)Knowledge is better than power.
D)Learning is easy.
Q5) In a short essay, describe four of the eight recommended methods for developing active listening skills.
Q6) In a short essay, explain how gender can affect communication.
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Q7) In a short essay, discuss the two best-known types of nonverbal communication.
Chapter 14: Foundations of Control
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Sample Questions
Q1) A car company that puts more effort into measuring quality than total units sold most likely wants to excel at ________.
A)customer satisfaction
B)efficiency
C)employee satisfaction
D)cost per unit
Q2) These forms of performance measurement provide the best and most immediate forms of feedback.
A)oral report and written report
B)written report and statistical report
C)MBWA and oral report
D)statistical report and MBWA
Q3) The value of the control function lies in three areas: planning, organizing, and motivating.
A)True
B)False
Q4) The control process is a two-step process that measures and compares.
A)True
B)False
Q5) In a short essay, describe the second step in the control process.
Page 17
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Chapter 15: Operations Management
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153 Flashcards
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Sample Questions
Q1) Managers in the United States today see this as the path to establishing and maintaining global leadership.
A)reducing costs
B)increasing production
C)operations management
D)scientific management
Q2) All of the following are characteristics of value chain management EXCEPT ________.
A)it is externally oriented
B)it focuses on both incoming materials and outgoing products and services
C)it is efficiency oriented
D)it is effectiveness oriented
Q3) You would expect a highly developed country like ________ to have a predominantly ________ economy.
A)France; manufacturing
B)France; service
C)Vietnam; service
D)the United Kingdom; manufacturing
Q4) In a short essay, explain what a value chain is.
Q5) In a short essay, define and describe operations management.
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Chapter 16 : History Module
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105 Flashcards
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Sample Questions
Q1) An entrepreneurial venture whose goal is to create humorous video games would be likely to be ________.
A)very organic in structure
B)highly centralized
C)fairly mechanistic in structure
D)very mechanist in structure
Q2) This type of work team has the most autonomy.
A)cross-functional
B)problem solving
C)self-directed
D)virtual
Q3) This type of business plan is a step down from the most complete type of business plan.
A)summary business plan
B)full business plan
C)executive summary
D)synopsis-type plan
Q4) The more proactive you are, the more likely you are to be an entrepreneur.
A)True
B)False
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Chapter 17: Quantitative Module
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135 Flashcards
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Sample Questions
Q1) In a short essay, identify the principles of management identified by Henri Fayol that are most important for the satisfaction and welfare of employees.
Q2) 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
Q3) From the Hawthorne studies' results, you might predict that the performance of a poor performing individual might ________ when he or she joins a high performing group.
A)increase
B)decrease
C)not change
D)become erratic
Q4) The Industrial Revolution began in the seventeenth century.
A)True
B)False
Q5) In a short essay, discuss scientific management.
Q6) In a short essay, describe the Hawthorne studies and how they were interpreted.
Page 20
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Chapter 18: Career Module
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Sample Questions
Q1) Decision trees are unreliable for making pricing decisions.
A)True
B)False
Q2) Liquidity is a measure of an organization's ability to access cash to meet its debt obligations.
A)True
B)False
Q3) In a short essay, explain the type of strategy that a pessimistic manager would take for his company.
Q4) A manager uses break-even analysis to find out how many units of a product he needs to sell to make a profit of zero.
A)True
B)False
Q5) In a short essay, explain how managers can use current value for making organizational decisions.
Q6) The break-even point is computed by the formula BE = [TFC/(P - VC)].
A)True
B)False
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Chapter 19: Entrepreneurship Module
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Sample Questions
Q1) A college degree ________.
A)is valuable for status only
B)has educational, but not financial, value
C)has both educational and financial value
D)has financial value only
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) The secret to job success is identifying your competitive advantage and developing it to the fullest.
A)True
B)False
Q4) Today, the organization-not the individual-is responsible for the employee's career development.
A)True
B)False
Q5) Explain how the idea of a career has changed over recent decades.
Page 22
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