Business Management Test Questions
Course Introduction
Business Management is an interdisciplinary course that introduces students to the foundational principles, theories, and practices involved in effectively running organizations. Through the exploration of topics such as strategic planning, organizational structure, leadership, decision-making, marketing, operations, and human resource management, students gain an understanding of how businesses operate in both local and global environments. The course emphasizes practical skills and ethical considerations, equipping students to analyze business challenges, develop solutions, and adapt to the dynamic modern marketplace.
Recommended Textbook Management 1st Edition by Luis R. Gomez Mejia
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Page 2
Chapter 1: Management and Its Evolution
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Sample Questions
Q1) Which of the following studies suggested that the influence of the work group may be as significant as the influence of the supervisor?
A) McGregor's Theory X
B) Deming's TQM
C) Taylor's Midvale Steel studies
D) The Hawthorne studies
Answer: D
Q2) What are the three issues strongly influencing business in the twenty-first century?
Answer: The three issues strongly influencing business in the twenty-first century are the management of change, an emphasis on customer service, and the need for higher business ethics.Organizations must cope with and adapt to change on a daily basis.In addition, companies must satisfy the needs of customers to develop long-term loyalty.With highly publicized examples of unethical business conduct, organizations have recognized the need for higher ethical standards.
Q3) A key element of TQM is the focus on the customer.
A)True
B)False
Answer: True
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Chapter 2: The Culture of Management
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Sample Questions
Q1) The rules of the International Convention for the Protection of Industrial Property have enabled countries to agree on what constitutes industrial espionage.
A)True
B)False
Answer: False
Q2) Starbucks' decision to enter the Chinese market was based on
A) the present high wealth of consumers in the market.
B) the large size of the market.
C) the existence of a positive business climate.
D) the readily available needed resources.
Answer: B
Q3) When Toshiba and IBM shared the $1 billion of developing a memory chip facility to transfer to a new IBM plant in Virginia, which entry mode were the firms using?
A) Franchising
B) Licensing
C) Strategic alliance
D) Exporting
Answer: C
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4
Chapter 3: Managing Social Responsibility and Ethics
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Sample Questions
Q1) When you ask yourself whether you would be willing to be treated in the same manner, which ethical test is being used?
A) The good neighbor test
B) Personal gain test
C) Front-page test
D) Golden-rule test
Answer: D
Q2) The individualism approach to ethics reflects a ________ concern for individuals and a ________ degree of economic freedom.
A) high; low
B) low; high
C) high; high
D) low; low
Answer: C
Q3) Business ethics is the same thing as laws.
A)True
B)False
Answer: False
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Chapter 4: Managing Organizational Culture and Change
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Sample Questions
Q1) Which of the following is not true of subcultures?
A) Subcultures are not generally seen in uniform cultures.
B) Subcultures can be problematic when employees across interdependent units must work closely together.
C) In a large organization, different subcultures may be found in different parts of the organization.
D) When divisions are largely autonomous with different strategies, it may make sense for them to have subcultures.
Q2) The most obvious aspect of culture includes the espoused values.
A)True
B)False
Q3) Which type of culture is fast-paced, competitive and high risk and is typically found in rapidly changing environments with short product cycles?
A) Baseball team culture
B) Club team culture
C) Academy team culture
D) Fortress team culture
Q4) Discuss Lewin's three-step model of organizational change.
Q5) What is bottom-up change and how does it begin?
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Chapter 5: Managing the Planning Process
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Sample Questions
Q1) Telling employees they need to arrive at work between the hours of 7 and 9 and work for nine consecutive hours is an example of a A) mission.
B) procedure.
C) policy.
D) rule.
Q2) When planning is conducted by specialists without the participation of other managers, there may be a tendency A) to generate volumes of paperwork.
B) to generate formulas that are not relevant in turbulent times C) to misunderstand the logic.
D) all of the above
Q3) The planning program in which objectives are mutually set between the employee and supervisor is known as A) management by objectives.
B) management by walking around.
C) opportunistic planning.
D) cascading objectives.
Q4) What is scenario planning?
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Chapter 6: Decision Making
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Sample Questions
Q1) Which decision-making style is Randy most likely to select when completing a routine customer product order?
A) Directive style
B) Behavioral style
C) Conceptual style
D) Analytical style
Q2) The decision-making pitfall that favors programmed solutions based on what worked in the past, even though that may no longer be relevant, reflects
A) overlooking important constituencies.
B) a bias toward objective data.
C) the "if it isn't broke, don't fix it" syndrome.
D) premature evaluation.
Q3) Situations with important consequences for the organization that are poorly defined and unstructured are
A) tactical decisions.
B) programmed decisions.
C) operational decisions.
D) non-programmed decisions.
Q4) Explain the difference between optimizing and satisficing.
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Chapter 7: Strategic Management
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Sample Questions
Q1) Partners in strategic alliances can
A) learn from each other.
B) pool resources for risky projects.
C) speed up entry into new markets.
D) all of the above
Q2) The Widget Company has a dependence on a supplier, the Acme Company. This dependence increases if
A) the Widget Company has few other sources of supply.
B) the Acme Company has many other buyers.
C) the cost for the Widget Company to suppliers is high.
D) all of the above
Q3) Strategic outcomes refer to the intended results of the strategic plan.
A)True
B)False
Q4) What are the four types of diversification?
Q5) When companies decide how to compete in a market segment, they are formulating
A) corporate strategy.
B) business-level strategy.
C) diversification strategy.
D) functional-level strategy.
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Chapter 8: Entrepreneurship and Innovation
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Sample Questions
Q1) An entrepreneur's personal network can be formed through A) participation in professional societies.
B) actively seeking out individuals with similar interests.
C) building trust and good will.
D) all of the above
Q2) Which of the following inventions would qualify as an innovation that added value?
A) The Segway
B) Pepsi Max
C) Disposable diapers
D) all of the above
Q3) When a business with an established name and product is sold to additional owners along with the rights to distribute the product, which type of operation is created?
A) Intrapreneurship
B) Spin-off
C) Franchise
D) Partnership
Q4) What is a personal network as it pertains to an entrepreneur? How is it different from a business network?
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Page 10
Chapter 9: Managing the Structure and Design of Organizations
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Sample Questions
Q1) Which of the following is a symptom of a malfunctioning organization design?
A) The organization design focuses employees on work that uses noncritical skills rather than emphasizing the opportunity to use their strengths.
B) The organization design has too few levels in the hierarchy.
C) The organization design is too flexible to deal with changes in strategy or the environment.
D) all of the above
Q2) Which approach to departmentalization works best in small to medium-sized companies operating in somewhat stable business environments without a great deal of change and uncertainty?
A) Functional
B) Span of control
C) Divisional
D) Matrix
Q3) The "we're in this together" mentality of profit sharing is an example of a A) coordinating mechanism.
B) centralization mechanism.
C) Formalization mechanism.
D) task force.
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Chapter 10: Human Resource Management
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Sample Questions
Q1) ________ means that the selection process represents the actual activities or knowledge required to successfully perform the job.
A) Reliability
B) Recruitment
C) Content validity
D) Empirical validity
Q2) Job evaluation can address
A) strategic compensation.
B) internal equity.
C) external equity.
D) job analysis.
Q3) The most important consideration in the evaluation of training is
A) monetary measures.
B) nonmonetary measures.
C) that the evaluation criteria reflect the needs that the training was supposed to address.
D) outlining the benefits.
Q4) Discuss the career development process.
Q5) What are the phases of the training process?
Q6) How do U.S. labor unions differ from those in other countries?
Page 12
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Chapter 11: Managing Employee Diversity
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Sample Questions
Q1) The term invisible minority is used to describe
A) homosexuals.
B) people with disabilities.
C) Hispanics.
D) Asian Americans.
Q2) The perception that Asian Americans are already successful paradoxically makes some managers insensitive to their needs and problems.
A)True
B)False
Q3) What is the purpose of a diversity audit?
Q4) According to Deborah Tannen, men tend
A) to be judged by how they look and dress.
B) to engage in report talk.
C) to be indirect when making requests.
D) to ask questions to understand something.
Q5) ________ passed the toughest immigration law in the United States in 2010.
A) California
B) Arizona
C) Texas
D) Florida
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Chapter 12: Leadership in Management
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Sample Questions
Q1) Which of the following is true of path-goal theory?
A) Subordinates who are highly authoritarian prefer a directive leadership style.
B) Directive leadership improves followers' satisfaction when the tasks are ambiguous and stressful.
C) Achievement-oriented leadership increases subordinates' satisfaction and group productivity when the organization can provide rewards contingent on the performance of the group.
D) all of the above
Q2) The key point of the ________ approach is that leadership success depends on the fit between the leader's behavior and decision-making style and the requirements of the situation.
A) behavioral
B) trait
C) contingency
D) one best way
Q3) What are the three needs identified by David McClelland?
Q4) What is the liability of a charismatic leader?
Q5) What is self-leadership? What are the mechanisms to foster self-leadership in the firm?
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Chapter 13: Managing Teams
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Sample Questions
Q1) How can trust be created among team members?
Q2) When individuals blend complementary skills and talents to produce a product that is more valuable than the sum of the individual contributions, they are experiencing
A) accountability.
B) a process team.
C) cohesiveness.
D) synergy.
Q3) Relationships conflict is dysfunctional and interferes with the team's productivity while in many cases task conflict is functional and can stimulate creativity.
A)True
B)False
Q4) Which of the following is a benefit of using teams?
A) Lower costs and higher productivity
B) Quality improvements
C) Innovation
D) all of the above
Q5) Discuss functional versus dysfunctional conflict.
Q6) What is a nonconforming high performer?
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Chapter 14: Managing Communication
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Q1) What are the advantages of written communication over face-to-face communication? What are the limitations?
Q2) When the receiver focuses on the parts of the message that are most salient to his or her interests and ignores other parts that are not relevant, the receiver is experiencing A) selective perception.
B) prejudgment.
C) feedback barrier
D) receiver barrier.
Q3) To address some of the barriers to effective communication, companies should use only the richest channels of communication.
A)True
B)False
Q4) Lean communication channels
A) provide opportunities for feedback.
B) are impersonal.
C) personalize the message for the receiver.
D) all of the above
Q5) Discuss the role of listening skills in the communication process.
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Chapter 15: Operation and Information System Management
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Sample Questions
Q1) Which of the following is true concerning the measurement of performance?
A) Qualitative standards are easier to measure than quantitative standards.
B) Quantitative standards and data can be measured objectively.
C) Qualitative standards are not open to human interpretation.
D) Only quantitative data should be measured for a company to improve its performance.
Q2) Given the size of the product, an aircraft manufacturer would be most likely to use a ________ layout.
A) product
B) process
C) fixed-position
D) facilities
Q3) When the operations manager determines a minimum level of inventory then reorders inputs when this level is reached, she is using
A) fixed-interval reordering.
B) a conversion process.
C) MRP.
D) fixed-point reordering.
Q4) What are the four steps in the control process?
Q5) What are the steps that make up the quality approach according to Deming?
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