Business Management Test
Bank
Course Introduction
Business Management is a comprehensive course designed to introduce students to the fundamental principles and practices of managing organizations in various environments. The course explores key management functions such as planning, organizing, leading, and controlling, while emphasizing decision-making, strategic analysis, and effective communication. Students will study core topics including organizational structure, human resource management, operations, marketing, and financial analysis, developing an understanding of how these elements contribute to business success. Through case studies, group projects, and practical applications, learners gain insights into the challenges managers face and the skills required to lead teams and organizations in a dynamic, globalized economy.
Recommended Textbook
Management 13th Edition by Richard L. Daft
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Page 2
Chapter 1: The World of Innovative Management
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Sample Questions
Q1) __________ refer to the cognitive ability to see the organization as a whole system and the relationships among its parts.
Answer: Conceptual skills
Q2) The president of Pepsi Company is the keynote speaker at a retirement dinner for a long-time bottler. This is an example of which of the following roles?
A) Liaison
B) Figurehead
C) Negotiator
D) Leader
E) Monitor
Answer: B
Q3) The degree to which the organization achieves a stated goal is called __________.
Answer: effectiveness
Q4) Allocating resources across the organization is part of the organizing management function.
A)True
B)False Answer: True
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Chapter 2: The Evolution of Management Thinking
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Sample Questions
Q1) Discerning circles of causality is an important element of systems thinking.
A)True
B)False
Answer: True
Q2) A consultant who recommends the effectiveness of sensitivity training to every organization he serves is violating the basics of:
A) systems thinking.
B) organization development.
C) contingency view.
D) scientific management.
E) the acceptance theory of authority.
Answer: C
Q3) Henri Fayol and Charles Clinton Spaulding were significant contributors to:
A) management science.
B) the human relations movement.
C) the administrative principles approach.
D) systems thinking.
E) scientific management.
Answer: C
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Page 4
Chapter 3: The Environment and Corporate Culture
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Sample Questions
Q1) Industrial Instruments operates in an environment that requires fast response and high-risk decision making. Which type of culture may be appropriate here?
A) Consistency
B) Adaptability
C) Clan
D) Achievement
E) Involvement
Answer: B
Q2) Which of the following would be considered a visual representation of a company's corporate culture?
A) All department heads have an executive office.
B) Each department has an award plaque for "Employee of the Month."
C) All employees are dressed in professional business attire.
D) Top-level executives drive company-owned sports cars.
E) All of these are considered a visual representation of a company's corporate culture.
Answer: E
Q3) __________ links the organization with key elements in the external environment.
Answer: Boundary spanning
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Chapter 4: Managing in a Global Environment
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Sample Questions
Q1) An alliance begun in 1957 to improve economic and social conditions among its members, it has evolved into the 28-nation __________.
Q2) A foreign terrorist kidnaps your firm's marketing vice president while the vice president is in the host country. This is a harsh example of:
A) economic development.
B) political risk.
C) international law.
D) social risk.
E) none of these.
Q3) Which of the following countries ranks lowest in power distance, uncertainty avoidance, and masculinity?
A) Sweden
B) United States
C) France
D) Mexico
E) Japan
Q4) __________ means that people send and receive unspoken cues, such as tone of voice or body language, in addition to the explicit spoken words when talking with others.
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Chapter 5: Managing Ethics and Social Responsibility
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Sample Questions
Q1) Codes of ethics greatly influence and ensure ethical behavior among employees and managers.
A)True
B)False
Q2) Anygroup within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions is called a(n):
A) supplier.
B) international customer.
C) stakeholder.
D) special interest group.
E) trade association.
Q3) The __________ contends that acts are moral when they promote the individual's best long-term interests.
Q4) __________ is the individual who must make an ethical choice in an organization.
A) The symbolic leader
B) An obstructive manager
C) The defensive individual
D) The moral agent
E) An authoritarian manager
Page 7
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Chapter 6: Managing Start-Ups and New Ventures
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Sample Questions
Q1) A drawback of a sole proprietorship is:
A) the unlimited liability of the partners.
B) conflicts with partners.
C) its continued existence regardless of whether the owner lives or dies.
D) difficulty in obtaining financing.
E) the complexity and cost to keep the records required by law.
Q2) Blake, Madison and Sean started selling computer software on college campuses under the name Student Software Company. Each person contributed $1,500toward start-up costs and agreed on dividing costs and profits equally. The legal structure for the company can best be described as:
A) a proprietorship.
B) a partnership.
C) a trade alliance.
D) a corporation.
E) none of these.
Q3) Borrowing from family and friends is a common source of debt financing for a start-up business.
A)True
B)False
Q4) What is entrepreneurial sacrifice? Why is it an important trait?
Page 8
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Chapter 7: Planning and Global Setting
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Sample
Questions
Q1) A(n) __________ is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.
Q2) Katelynn can anticipate enjoying the advantages of MBO, which include:
A) focused manager and employee efforts on activities that will lead to goal attainment.
B) improved performance at all company levels.
C) improved employee motivation.
D) alignment of individual and departmental goals with company goals.
E) all of these.
Q3) __________ goals are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. A) Operational B) Stretch C) Strategic D) Tactical E) Bottom-up
Q4) Sales in relation to targets is an example of a balanced scorecard metric. A)True B)False
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Chapter 8: Strategy Formulation and Execution
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Sample Questions
Q1) With a(n) __________, product design and advertising are standardized throughout the world.
Q2) A globalization strategy is based on the assumption that a single global market exists for many consumer and industrial products.
A)True
B)False
Q3) Portfolio strategy, the Boston Consulting Group (BCG) matrix, and diversification are three approaches to understanding __________ strategy.
A) globalization
B) functional-level
C) corporate-level
D) business-level
E) multidomestic
Q4) Diversification is a strategy of moving into new lines of business.
A)True
B)False
Q5) __________ is the stage of strategic management that includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan.
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Chapter 9: Managerial Decision Making
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Sample Questions
Q1) Melissa is a manager at InStylez Clothing. Her job is very complex, and she feels that she does not have enough time to identify and/or process all of the information she needs to make decisions. Melissa's situation is most consistent with which of the following concepts?
A) Bounded rationality
B) The classical model of decision making
C) Satisficing
D) Brainstorming
E) Intuition
Q2) A(n) __________ occurs when organizational accomplishment is less than established goals.
A) strength
B) threat
C) diagnosis
D) opportunity
E) problem
Q3) What are the six steps in the managerial decision-making process?
Q4) A(n) __________ exists when managers see potential accomplishment that exceeds specified current goals.
Q5) Compare decision conditions of certainty, risk, uncertainty, and ambiguity.
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Chapter 10: Designing Organization Structure
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Sample Questions
Q1) Which of the following is a disadvantage of the divisional structure?
A) Lack of technical specialization due to the small size of departments within each division
B) Loss of efficiency and economies of scale
C) Duplication of resources
D) High cost of running separate divisions
E) All of these
Q2) When division of labor is extensive,:
A) employees specialize in a single task.
B) employees specialize in many tasks.
C) employees are often highly challenged.
D) employees are often inefficient.
E) jobs tend to be large.
Q3) The __________ is an unbroken line of authority that links all employees in an organization and shows who reports to whom.
Q4) Certainty in the environment is usually associated with decentralization.
A)True
B)False
Q5) __________ means that decision authority is located near the top of the organization.
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Chapter 11: Managing Change and Innovation
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176 Flashcards
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Sample Questions
Q1) Creativity refers to the generation of novel ideas that might meet perceived needs or respond to opportunities for the organization.
A)True
B)False
Q2) Two specific tools that can smooth the culture change process include organization development and training and development programs.
A)True
B)False
Q3) The second stage in Lewin's change model, __________, occurs when individuals experiment with new behavior and learn new skills to be used in the workplace.
Q4) A(n) __________is a change in the organization's product or service outputs.
Q5) A(n) __________ means incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations.
Q6) __________ means that managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation.
Q7) Describe the three innovative strategies for new products and technologies.
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Chapter 12: Managing Human Resources
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Sample Questions
Q1) __________ assess candidates on various factors considered important for the job to be performed; they include cognitive ability tests, physical ability tests, and personality tests.
Q2) An in-house training and education facility that offers broad-based learning opportunities for employees throughout their careers is known as a:
A) corporate university.
B) meta-training facility.
C) stand-and-deliver classroom.
D) learning management system.
E) content development facility.
Q3) Which of the following federal laws restricts mandatory retirement?
A) Americans with Disabilities Act
B) Civil Rights Act
C) Vocational Rehabilitation Act
D) Age Discrimination in Employment Act
E) None of these
Q4) A recruiting approach that gives applicants all pertinent and realistic information-positive and negative-about the job and the organization is called a(n)
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Chapter 13: Managing Diversity
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Sample
Questions
Q1) __________is the degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated.
Q2) __________ means that an organization accommodates several subcultures, including employees who would otherwise feel isolated and ignored.
Q3) Age, race, and gender are included in the traditional model of diversity.
A)True
B)False
Q4) Mentoring programs are consistent with the 1964 Civil Rights Act, which requires the diversification of middle and upper management.
A)True
B)False
Q5) Research indicates that women and minorities are more likely than men to develop mentoring relationships.
A)True
B)False
Q6) Homogeneous top management teams tend to be broad-minded in their perspectives.
A)True
B)False
Page 15
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Chapter 14: Understanding Invidividual Behavior
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Sample Questions
Q1) Self-management is not a component of emotional intelligence.
A)True
B)False
Q2) Most differences in perception among people at work are related to how they observe sensory data.
A)True
B)False
Q3) __________ refers to the set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment.
A) Dissonance
B) Personality
C) The halo effect
D) Attitude
E) Perception
Q4) __________ is the tendency of people to absorb and express the emotions, moods, and attitudes of those around them.
Q5) Describe two biases that people commonly apply when making attributions.
Q6) List and briefly describe the Big Five personality factors.
Q7) Briefly describe the perception process.
Page 16
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Chapter 15: Leadership
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Sample Questions
Q1) The results of studies asking people to rank the desired characteristics of leaders and followers showed which of the following qualities in the top 5 for both leaders and followers?
A) Intelligent
B) Loyal
C) Inspiring
D) Competent
E) Dependable
Q2) Differentiate between a substitute and a neutralizer.
Q3) At the seminar, Beth learned of a recent study on gender differences in leadership behaviors. In which of the following areas of leadership do women score more highly than men?
A) Inspiring and motivating others
B) Developing others
C) Driving for results
D) Building relationships
E) All of these
Q4) What are the four leader styles, according to the situational model of leadership? Explain the relationship between leader style and follower readiness.
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Chapter 16: Motivating Employees
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Sample Questions
Q1) Equity theory focuses on individuals' perceptions of how fairly they are treated compared with others.
A)True
B)False
Q2) A high need for __________ often is associated with successful attainment of top levels in the organizational hierarchy, according to McClelland.
A) power
B) achievement
C) affiliation
D) success
E) expertise
Q3) The frustration-regression principle is most closely related with:
A) Maslow.
B) Herzberg.
C) McClelland.
D) Alderfer.
E) Adams.
Q4) Describe the four elements that enable employees to become empowered.
Q5) List the three needs proposed by Clayton Alderfer.
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Chapter 17: Managing Communication
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Sample Questions
Q1) When informing your staff of the date for the company picnic, a __________would be most practical and successful.
A) memo
B) telephone conversation
C) videoconference
D) face-to-face conversation
E) newspaper notice
Q2) Which of the following is the best advice for written communication that is highly important?
A) Use technology channels to distribute the message
B) Use pretentious language
C) Keep it long
D) Use jargon
E) Get a second opinion
Q3) All of the following are ways managers can improve their writing skills except:
A) writing lengthy explanations.
B) respecting the reader.
C) getting a second opinion.
D) knowing their point and getting to it.
E) writing clearly rather than impressively.
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Chapter 18: Leading Teams
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Sample Questions
Q1) The most constructive way to express a conflict is low directness-high intensity.
A)True
B)False
Q2) List and briefly describe the four primary ways of expressing conflict.
Q3) During the __________stage of team development, the major emphasis is on problem solving and accomplishing the assigned task.
A) forming B) performing C) achieving D) norming E) storming
Q4) The __________ of handling conflict reflects neither assertiveness nor cooperativeness.
Q5) __________ is the stage of team development in which individual personalities emerge, along with resulting conflicts.
Q6) Virtual and global teams are particularly prone to communication breakdowns. A)True B)False
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Chapter 19: Managing Quality and Performance
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Sample Questions
Q1) Stella, a systems manager for a large technology company, would like to get an understanding of her company's financial position with respect to assets and liabilities at the end of the fiscal year. Which of the following should she refer to?
A) Income statement
B) Activity ratio
C) Balanced scorecard
D) Balance sheet
E) None of these
Q2) In organizations that use decentralized control, self-discipline and self-control keep workers performing their jobs up to standard. Which of the following does not contribute to internal standards that provide self-control?
A) Empowerment of employees
B) Training
C) Effective socialization
D) Extrinsic rewards
E) All of these contribute to internal standards that provide self-control.
Q3) Identify and briefly describe each of the common financial ratios addressed in your text.
Q4) What is the difference between top-down budgeting and bottom-up budgeting?
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