Business Management Test Bank
Course Introduction
Business Management is an interdisciplinary course that explores the principles, practices, and processes essential for effectively managing organizations in a dynamic global environment. Students learn about key areas such as leadership, organizational behavior, strategic planning, operations, marketing, and financial management. Emphasis is placed on developing problem-solving, decision-making, and communication skills necessary to oversee projects, lead teams, and adapt to rapid changes in the business landscape. Through real-world case studies and interactive assignments, students gain practical insights into managing resources, fostering innovation, and achieving organizational goals ethically and efficiently.
Recommended Textbook Management 8th Edition by Richard
L. Daft
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21 Chapters
3481 Verified Questions
3481 Flashcards
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Page 2
Chapter 1: Managing in Turbulent Times
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174 Verified Questions
174 Flashcards
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Sample Questions
Q1) When senior managers at Gap, Inc. decided to become the number one service-quality clothing company in the world, they were engaging in the management function of
A) planning.
B) organizing.
C) leading.
D) controlling.
E) dreaming.
Answer: A
Q2) When Jared Andersen of CommuniCom, Inc. created smaller, more independent maintenance units, he was performing the function of A) controlling.
B) human relations skills.
C) leading.
D) organizing.
E) resourcing.
Answer: D
Q3) The degree to which the organization achieves a stated goal is called ____________________.
Answer: effectiveness
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Chapter 2: The Evolution of Management Thinking
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179 Flashcards
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Sample Questions
Q1) According to Unlocking Innovative Solutions Through Technology in Chapter 2, railroads had a similar effect on the economy about 150 years ago as the Internet is having today.
A)True
B)False
Answer: True
Q2) The assembly line is most consistent with which of the following general principles of management?
A) Unity of command
B) Division of work
C) Unity of direction
D) Scalar chain
E) Quality management
Answer: C
Q3) Outputs, from a systems theory viewpoint, are the material, human, financial, or information resources used to produce goods and services.
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Environment and Corporate Culture
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167 Verified Questions
167 Flashcards
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Sample Questions
Q1) Which of these is a part of an organization's internal environment?
A) Its customers
B) Its salespeople
C) The consumer price index
D) Its suppliers
E) Its competitors
Answer: B
Q2) Which of the following best describes Music Hits culture?
A) Clan culture
B) Achievement culture
C) Consistency culture
D) Adaptability culture
E) None of these
Answer: D
Q3) A slogan is a phrase or a sentence that concisely communicates a key corporate
Answer: value
Q4) Organizations with internal focuses and consistency orientations for a stable environment should create a(n) ____________________ culture.
Answer: consistency
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Chapter 4: Managing in a Global Environment
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192 Verified Questions
192 Flashcards
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Sample Questions
Q1) LDC's are less developed countries and tend to be found in the Southern Hemisphere including Africa, Asia and South America.
A)True
B)False
Q2) Language, values, religion, and education all describe which dimension in the international environment?
A) Economic
B) Legal
C) Political
D) Sociocultural
E) Technological
Q3) Culture shock refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it.
A)True
B)False
Q4) In Mexico, employees often do not understand participatory decision making.
A)True
B)False
Q5) List three examples of a country's infrastructure.
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Chapter 5: Ethics and Social Responsibility
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178 Verified Questions
178 Flashcards
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Sample Questions
Q1) __________________________ is a phrase used to evaluate a company's commitment to environmental responsibility.
Q2) List the four responsibilities of corporate social performance.
Q3) The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as ____________________ approach.
Q4) Monitoring the Internet to maintain the company's ethical climate and workplace productivity could be considered part of an individualistic approach.
A)True
B)False
Q5) The ____________________ approach in shades of green represents a growing awareness of and sensitivity to environmental concerns.
Q6) Ethics training programs are an important supplement to a written code of ethics. A)True
B)False
Q7) List the four approaches that are used to describe values for guiding ethical decision making. Briefly describe each.
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Page 7
Chapter 6: Managing Small Business Start-Ups
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) List and briefly describe the stages of growth for an entrepreneurial company.
Q2) Advances in technology, given the high cost, inhibits small companies to compete in a global economy.
A)True
B)False
Q3) Social entrepreneurs have a primary goal of improving society rather than maximizing profits.
A)True
B)False
Q4) By ______________________________, an entrepreneur has the advantage to develop and design the business in his/her own way.
Q5) What is a business incubator? How can it help a business?
Q6) According to the Small Business Administration, small businesses employ more than 90 percent of the private workforce in the United States and are responsible for 85 percent of all business innovations.
A)True
B)False
Q7) Define a corporation and briefly discuss the primary advantages and disadvantages of forming a corporation.
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Chapter 7: Managerial Planning and Goal Setting
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151 Verified Questions
151 Flashcards
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Sample Questions
Q1) In what ways do plans and goals benefit an organization?
Q2) Briefly define the characteristics of an effective goal.
Q3) A project is an example of a
A) policy.
B) standing plan.
C) procedure.
D) single-use plan.
E) rule.
Q4) The act of determining the organization goals and the means for achieving them is called goal setting.
A)True
B)False
Q5) Which of these define boundaries within which to make a decision?
A) Programs
B) Policies
C) Rules
D) Procedures
E) Project
Q6) The act of determining the organization's goals and the means for achieving them is referred to as ____________________.
Page 9
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Chapter 8: Strategy Formulation and Implementation
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162 Verified Questions
162 Flashcards
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Sample Questions
Q1) __________ means selling off a business unit for the cash value of the assets, thus terminating its existence.
A) Diversification
B) Transnational strategy
C) Synergy
D) Divestiture
E) Liquidation
Q2) A strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries is referred to as a
A) domestic strategy.
B) global strategy.
C) transnational strategy.
D) multidomestic strategy.
E) region design strategy.
Q3) Strategy implementation involves the planning and decision making that lead to the establishment of the firm's goals.
A)True
B)False
Q4) When a company goes global, it is difficult to implement strategies. Explain.
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Chapter 9: Managerial Decision Making
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153 Verified Questions
153 Flashcards
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Sample Questions
Q1) Explain the four underlying assumptions of the administrative model.
Q2) Nonprogrammed decisions are made in response to situations that are A) unique.
B) unstructured.
C) important to the organization.
D) all of these
E) unique and important to the organization.
Q3) Tyke, a production manager at Kristal's Kites, recently chose to schedule his workers to work overtime. His alternative was to hire more workers. He is now monitoring the consequences of his choice. This is an example of A) planning.
B) decision-making.
C) organizing.
D) controlling.
E) leading.
Q4) ____________________ represents a quick apprehension of a decision situation based on past experience but without conscious thought.
Q5) The ____________________ model of decision making is based on economic assumptions.
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Chapter 10: Designing Adaptive Organizations
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Sample Questions
Q1) The visual representation of an organization's structure is called the
Q2) The functional structure offers a way to decentralize decision making and provide direction from the teams in the field.
A)True
B)False
Q3) Global companies often use a __________ structure to achieve simultaneous coordination of products across countries.
A) functional
B) divisional
C) matrix
D) product-based
E) process-based
Q4) __________ happens as organizations grow.
A) Positions and departments are deleted
B) Management layers are eliminated to save cost
C) Managers have to find ways to tie different departments
D) Top management becomes more autocratic
E) None of these
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Chapter 11: Managing Change and Innovation
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) To overcome the resistance to the new system, Kandi can use any of the following techniques, EXCEPT
A) education and communication.
B) participation in designing the system.
C) negotiation.
D) coercion.
E) all of these can be used.
Q2) The generation of novel ideas that may meet perceived needs or respond to opportunities for the organization is called
A) a search initiative.
B) creativity.
C) an ideal champion.
D) a great idea.
E) strategic analysis.
Q3) A _________________________ is a change in the organization's product or service outputs.
Q4) Describe the three distinct stages for achieving behavioral and attitudinal change in an organization.
Q5) List the four reasons why employees tend to resist change.
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Chapter 12: Human Resource Management
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162 Verified Questions
162 Flashcards
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Sample Questions
Q1) With the matching model, human resource specialists exploit the newly hired employees.
A)True
B)False
Q2) One of the fastest-growing approaches to recruiting today is the use of the Internet.
A)True
B)False
Q3) Validity is the relationship between an applicant's score on a selection device and his or her future job performance.
A)True
B)False
Q4) A(n) _________________________ is an interview conducted with departing employees to determine why they are leaving.
Q5) Personal capital refers to the economic value of the knowledge, experience, skills, and capabilities of employees.
A)True
B)False
Q6) Define discrimination and affirmative action.
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Chapter 13: Meeting the Challenge of Diversity
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126 Verified Questions
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Sample Questions
Q1) Juan's Waffles recently held a series of focus groups to gather information on employee perceptions of women and minorities in the workplace. In particular, Juan's was interested in learning about the myths, values, and beliefs that currently exist in their organization. This is an example of
A) sensitivity training.
B) building a corporate culture that values diversity.
C) changing the current organizational design.
D) changing the current organizational structure.
E) none of these.
Q2) Pluralism means an organization accommodates several subcultures, including employees who would otherwise feel isolated and ignored.
A)True
B)False
Q3) What are the steps in implementing a change to develop a truly diverse workplace?
Q4) _________________________ refers to government-mandated programs that focus on providing opportunities to women and members of minority groups who previously experienced discrimination.
Q5) Asian and Arab countries are examples of _________________________ cultures.
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Chapter 14: Dynamics of Behavior in Organizations
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) According to Jung, which of these styles avoids specifics, decentralizes decision-making and develops few rules and regulations?
A) Intuitive-feeling
B) Sensation-thinking
C) Intuitive-thinking
D) Sensation-feeling
E) None of these.
Q2) __________ is the belief that power and status differences should exist within the organization.
A) Extroversion
B) Machiavellianism
C) Authoritarianism
D) Perceptual distortion
E) Locus of control
Q3) The concepts and principles of OB are important to managers because in every organization human being ultimately make the decision that controls how the organization will acquire and use resources.
A)True
B)False
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Page 16
Chapter 15: Leadership
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) ______________________________ is the extent to which the leader is task oriented and directs subordinate work activities toward goal attainment.
Q2) According to the path-goal theory, __________ occurs when leaders set clear and challenging goals for subordinates.
A) achievement-oriented leadership
B) supportive leadership
C) directive leadership
D) participative leadership
E) concern for production
Q3) Recently, Collie Care was attempting to hire a middle manager. They were looking for an intelligent, active, and creative individual. Which approach to leadership was Collie using?
A) The contingency approach
B) The situational approach
C) The trait approach
D) The behavioral approach
E) The substitute approach
Q4) Power that stems from the authority to punish or recommend punishment is called
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Chapter 16: Motivation
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182 Verified Questions
182 Flashcards
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Sample Questions
Q1) Which of the following techniques reduces the likelihood that behavior will be repeated?
A) Positive reinforcement
B) Negative reinforcement
C) Extinction
D) Reward enhancement
E) All of these
Q2) The ________________________________________ rewards employees at specified time intervals.
Q3) The variable-ratio schedule is based on a random number of desired behaviors.
A)True
B)False
Q4) _________________________ is the application of motivational theories to the structure of work for improving productivity and satisfaction.
Q5) In goal-setting theory, goal acceptance means that employees have to "buy into" the goals and be committed to them.
A)True
B)False
Q6) Describe the four elements that enable employees to become empowered.
Page 18
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Chapter 17: Communication
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) Messages that are designed to share information among teams and departments that can help the organization change, grow, and improve are called
Q2) The grapevine is an important means of communication that exists in companies. Most of the information passed through the grapevine is
A) personal information.
B) vicious gossip.
C) business-related.
D) destructive because it is not accurate.
E) none of these.
Q3) When verbal and nonverbal messages are contradictory, the receiver usually will give more weight to behavioral actions than to verbal messages.
A)True
B)False
Q4) Communication is defined as the process by which information is exchanged and understood by two or more people.
A)True
B)False
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Page 19
Chapter 18: Teamwork
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Sample Questions
Q1) Social facilitation is the tendency for the presence of others to influence an individual's motivation and performance.
A)True
B)False
Q2) An accommodating style to handle conflict involves a high degree of assertiveness and a low degree of cooperation.
A)True
B)False
Q3) A(n) ________________ is a unit of two or more people who interact and coordinate their work to accomplish a specific goal.
Q4) Which of these pertains to the team's ability to meet the personal needs of its members?
A) Cohesiveness
B) Satisfaction
C) Commitment
D) Leadership
E) Norms
Q5) The manager to whom a team and team leaders report is referred to as the ____________________ leader.
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Chapter 19: Managerial and Quality Control
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Sample Questions
Q1) __________ is the process of measuring your organizational process against the best in the industry.
A) Outsourcing
B) Continuous improvement
C) Environmental analysis
D) Benchmarking
E) Competitive measurement
Q2) The firm's financial performance for a given time period is shown on the ______________________________.
Q3) Which of the following elements is usually associated with bureaucratic control?
A) Technology
B) Peer groups
C) Corporate culture
D) Self-control
E) All of these
Q4) A(n) _________________________ lists forecasted and actual revenues of the organization.
Q5) An expense budget lists forecasted and actual revenues of the organization.
A)True
B)False
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Chapter 20: Information Technology and E-Business
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Sample Questions
Q1) Wiki is a Web site that allows anyone with access, inside or outside the organization, to create, share, and edit content through a simple, browser-based user interface.
A)True
B)False
Q2) _____________________________________________ are management information systems to facilitate strategic decision making at the highest level of management.
Q3) A Blog is a Web log that allows individuals to post opinions and ideas.
A)True
B)False
Q4) A software that displays documents on more than one users screen and allows all users to see changes or comments as they are made by one person is called groupware.
A)True
B)False
Q5) A networked information system that collects, processes, and provides information about an organization's entire enterprise, from identification of customer needs and receipt of orders to distribution of products and receipt of payments is called a(n)
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Chapter 21: Operations and Value Chain Management
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Sample Questions
Q1) The fixed-position layout is one in which the equipment remains in one location and the products are brought to it.
A)True
B)False
Q2) The heart of Muli's idea is
A) machines
B) technology
C) process
D) employee involvement
E) none of these
Q3) How will Muli's workers improve productivity?
A) by increasing the amount of output using the same amount of inputs
B) by decreasing the number in inputs require to produce the output
C) by focusing on the validity of the process
D) none of these
E) by increasing the amount of output using the same amount of inputs and/or decreasing the number in inputs require to produce the output
Q4) Increased ________________________________________ simply means that managers do a better job of running the business.
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