Business Management Test Questions
Course Introduction
Business Management introduces students to the fundamental principles and practices of managing organizations effectively in a dynamic and competitive environment. The course covers core topics such as organizational structure, leadership, strategic planning, decision-making, human resource management, marketing, operations, and financial management. Through case studies, practical examples, and interactive discussions, students develop essential skills for analyzing business challenges, formulating solutions, and implementing strategies for organizational growth and success. Emphasis is placed on ethical decision-making, global perspectives, and adapting to changing business landscapes.
Recommended Textbook MGMT 2nd Canadian Edition by Chuck Williams
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Page 2
Chapter 1: Management
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Sample Questions
Q1) After the death of her husband,Miriam McAllister became the CEO of a company that is the world's leading manufacturer of kidney dialysis machines.Even though she was not expected to,she was quick to ask company employees to develop ideas for new products that would lead to organizational growth in a changing environment.What decisional role did McAllister assume?
A) leader
B) disseminator
C) resource allocator
D) entrepreneur
Answer: D
Q2) Which types of skills tend to be equally important at all levels of management?
A) technical skills
B) human skills
C) decisional skills
D) motivation to manage
Answer: B
Q3) First-line managers are the only managers who do not supervise other managers.
A)True
B)False Answer: True
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Chapter 2: History of Management
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Sample Questions
Q1) According to Weber's bureaucratic management,people should lead by virtue of their rational-legal authority.
A)True
B)False
Answer: True
Q2) Which of the following types of systems are organizations that interact with their environments and depend on them for survival?
A) covert systems
B) open systems
C) synergistic subsystems
D) closed systems
Answer: B
Q3) What does a systems view of management allow managers to do?
A) deal with their complex work environment
B) manage employee attendance
C) communicate efficiently
D) store and retrieve all types of information
Answer: A
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4
Chapter 3: Organizational Environments and Cultures
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Sample Questions
Q1) Because external environments can be dynamic,confusing,and complex,managers use a three-step process to make sense of the changes in their external environments.Those steps are (1)environmental scanning,(2)interpreting environmental factors,and (3)acting on threats and opportunities.
A)True
B)False
Answer: True
Q2) An owner of a Canadian retail chain is analyzing the impact of the prolonged recession,the actions the company should take,and how these will affect the employees.The owner could use a cognitive map to represent this analysis.
A)True
B)False
Answer: True
Q3) What are the two types of external organizational environments?
A) general and specific
B) public and private
C) global and national
D) organizational and interpersonal
Answer: A
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Page 5
Chapter 4: Ethics and Social Responsibility
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Sample Questions
Q1) Identify and briefly describe Kohlberg's three phases of moral development.
Q2) Which of the following is the least important factor in the creation of an ethical business climate?
A) personal examples set by company management
B) official approval of the company's ethics code by government regulators
C) fair but consistent punishment of violators
D) a system that encourages whistle-blowers to report potential ethics violations
Q3) On which of the following does ethical intensity partly depend?
A) magnitude of dilemma
B) social acceptance
C) intent of the manager
D) temporal immediacy
Q4) Refer to the Narrative 4-3.Which of the following strategies did Gap initially use in response to the negative media publicity?
A) proactive
B) defensive
C) accommodative
D) reactive
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Chapter 5: Planning and Decision Making
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Sample Questions
Q1) Which statement presents a rule for effective brainstorming?
A) Limit ideas to conserve time.
B) Select an open-minded group leader.
C) Give certain people in the group the most freedom to generate ideas.
D) Allow criticism.
Q2) Briefly describe the benefits and pitfalls of planning.
Q3) As a company that manufactures janitorial cleaning supplies tries to develop more environmentally friendly products that can clean as well as its current ones,the company's manager must select among alternatives derived from oranges,parsley,lemon,or a combination of these ingredients.Which step in the rational decision-making model is this?
A) generate alternative courses of action
B) evaluate each alternative
C) compute the optimal decision
D) implement the optimal alternative
Q4) Planning can impede change,create a false sense of certainty,and lead to the detachment of planners.
A)True
B)False
Q5) Describe the management by objectives (MBO)process.
Page 7
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Chapter 6: Organizational Strategy
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Questions
Q1) Clorox Corporation controls 60 percent of the bleach market.Imagine you are an entrepreneur who is considering developing and marketing a new brand of bleach.Which one of Michael Porter's five industry forces should you be most concerned about?
A) bargaining power of buyers
B) threat of substitute products or services
C) threat of new entrants
D) character of the rivalry
Q2) Companies often choose a stability strategy when their external environment doesn't change much,or after they have struggled with periods of explosive growth.
A)True
B)False
Q3) What type of grand strategy is McDonald's using when it increases its profits in France by offering uniquely French products,such as Croque McDo,the McDonald's version of a popular French grilled sandwich?
A) growth
B) decline
C) retrenchment/recovery
D) repositioning
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Page 8
Chapter 7: Innovation and Change
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Sample Questions
Q1) What specific technique for dealing with resistance to change did Morgan use to convince the Asian suppliers that it was in their best interest to adopt the Develop Sources process?
A) coercion
B) top management support
C) education and communication
D) direction
Q2) Refer to the narrative.Elixir,Gore's acoustic guitar string,is coated with a thin layer of plastic that avoids the accumulation of dust,microscopic layers of skin (from musicians' fingers),and dirt and oil,all of which affect musical quality and sound.What process did Gore employees use to develop Elixir?
A) transitional innovation
B) compression design
C) dominant design
D) incremental change
Q3) According to Kurt Lewin,managing organizational change is a simple process that requires organizational dialogue,change intervention,and reformatting.
A)True
B)False
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Page 9
Chapter 8: Global Management
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Sample Questions
Q1) Which of the following countries has the largest foreign direct investment in Canada?
A) China
B) Scotland
C) Mexico
D) United Kingdom
Q2) Which trade agreement represented the most significant change to the regulations governing global trade during the 1990s?
A) Maastricht Treaty of Europe
B) North American Free Trade Agreement
C) General Agreement on Tariffs and Trade
D) Mercosur
Q3) The signing of which of the following created a regional trading zone?
A) the Maastricht Treaty
B) the Pact for Free Trade Agreement
C) the Global Agreement for Transactional Trading
D) the South-East Asia Pact
Q4) During the 1990s,trade agreements were developed on the worldwide and regional levels.Briefly describe a regional trade agreement and a worldwide trade agreement.
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Page 10
Chapter 9: Designing Adaptive Organizations
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Sample Questions
Q1) Job enlargement and job enrichment mean essentially the same thing.
A)True
B)False
Q2) Cross-departmental coordination tends to be very easy in organizations with functional departmentalization.
A)True
B)False
Q3) Refer to the Narrative 9-1.One cause of the precipitous drop in the value of Yahoo's stock was the company's inability to subdivide work and workers into separate organizational units responsible for completing particular tasks.That caused Yahoo trouble.For example,the company had no sales unit to cultivate and call on advertising customers.Which of the following had Yahoo decided NOT to engage in?
A) decentralization
B) cultural rigidity
C) the appropriate change of command
D) departmentalization
Q4) Define authority.List the four dimensions by which it has traditionally been characterized in organizations.
Q5) What is job specialization? Briefly explain its advantages and disadvantages.
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Chapter 10: Leading Teams
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Sample Questions
Q1) What is the term for the extent to which team members are attracted to a team and motivated to remain with it?
A) accommodation
B) synergy
C) autonomy
D) cohesiveness
Q2) Which of the following is a factor that companies should carefully manage in order to increase the likelihood that teams will succeed?
A) the development of formalized rules and regulations
B) bureaucratic immunity
C) administrative reciprocity
D) the use of synergy
Q3) When are teams typically required?
A) when tasks are simple
B) when tasks require multiple perspectives
C) when synergy will complicate the problem solution process
D) when the company has very limited resources
Q4) What are project teams? List the advantages associated with their usage.
Q5) How does a team's size influence its performance?
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Chapter 11: Managing Human Resource Systems
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Sample Questions
Q1) Which of the following activities provides opportunities for employees to develop the job-specific skills,experience,and knowledge they need to do their jobs or improve their performance?
A) supervising
B) directing
C) training
D) mentoring
Q2) What is a key benefit derived from Internet recruiting?
A) Internet recruiting targets specific age groups.
B) The Internet allows companies to quickly reach large numbers of people.
C) The company that is recruiting will receive applications only from qualified people.
D) Internet recruiting targets potential applicants that are college or university educated.
Q3) What is the primary advantage of the structured interview?
A) the amount of background information it reveals
B) its ability to substitute for biodata
C) all applicants are asked the same questions
D) its validity
Q4) List and briefly define the three basic kinds of compensation decisions.
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Chapter 12: Managing Individuals and a Diverse Workforce
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Q1) What should organizations do to make sure that people with disabilities have the same opportunities as everyone else?
A) Organizations should make only desk jobs available for employees with disabilities.
B) Organizations should provide assistive technology.
C) Organizations should actively avoid recruiting workers with disabilities.
D) Organizations should not acknowledge the disabilities that employees may have.
Q2) What is the term for a situation in organizations when there are a variety of demographic,cultural,and personal differences among the people who work there and the customers who do business there?
A) cultural advantage
B) affirmative differentiation
C) diversity
D) acculturation
Q3) Briefly identify and provide an example of the likely content for each of the two basic types of diversity training programs.
Q4) What is organizational plurality? Define the paradigm for managing diversity with which it is associated.
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14
Chapter 13: Motivation
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Sample Questions
Q1) Refer to the Narrative 13-2.Which of the following is Wegmans using by offering scholarship bonuses for part-time workers?
A) over-rewarding
B) positive reinforcement
C) positive extinction
D) under-rewarding
Q2) David Dworkin is the founder of a small Atlanta-based chain of retail stores called Swoozies.The chain targets affluent women and carries eclectic lines of wrapping paper,stationery,invitations,and gifts.Dworkin had expressed a strong need to expand Swoozies nationwide.According to McClelland's Learned Needs Theory,what did Dworkin have a need for?
A) achievement
B) esteem
C) growth
D) self-actualization
Q3) The four kinds of reinforcement contingencies are positive reinforcement,negative reinforcement,punishment,and extinction.
A)True
B)False
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Page 15
Chapter 14: Leadership
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Sample Questions
Q1) As a leader behaviour,initiating structure is the degree to which a leader structures the roles of followers by setting goals,giving directions,setting deadlines,and assigning tasks.
A)True
B)False
Q2) Briefly explain the difference between transformational and transactional leadership.
Q3) Refer to the Narrative 14-3.Beane's subordinates respect the general manager's abilities,trust him to do what is best for the team,and like him as a person.In terms of situational favourableness,which of the following influences Beane's leadership ability?
A) strong position power
B) empowerment
C) low task structure
D) good leader-member relations
Q4) Define leadership and management.Explain how leaders and managers approach their jobs differently.
Q5) What are the assumptions of Fiedler's contingency theory? What needs to be done in order to make this theory practical for use in the workplace?
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Chapter 15: Managing Communication
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Sample Questions
Q1) Distinguish between coaching and counselling.
Q2) According to attribution theory,what are the two general reasons,or attributions,we use to explain people's behaviour?
A) formalized and non-formalized attributions
B) self-serving and defensive attributions
C) objective and subjective attributions
D) internal and external attributions
Q3) Assume that you have just accepted your first job upon graduation from college.You are working as the supervisor of a group of manufacturing workers in a company that has had some financial problems.Workers have complained about being unfairly blamed for financial losses associated with the production process,and your predecessor quit as a result of grievances filed against him by his subordinates.Explain how you can use your understanding of attribution theory to be more effective in your personal perception of the causes of problems in your work unit,and in your personal communications about those problems to your new subordinates.
Q4) Jargon is a form of noise that interferes with communication in the workplace.
A)True
B)False
Q5) Briefly differentiate between active listening and empathetic listening.
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Chapter 16: Control
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Sample Questions
Q1) Which of the following controls tends to be relied upon by organizations that are highly resistant to change and slow to respond to customers and competitors?
A) behaviour
B) bureaucratic
C) subjective
D) normative
Q2) Which of the following would managers use when implementing the financial perspective?
A) financial ratios
B) customer defections
C) employee turnover
D) value analyses
Q3) What question do managers ask for the internal perspective of the balanced scorecard?
A) At what must we excel?
B) How do we provide value to our stakeholders?
C) What is the bottom line?
D) How important is customer satisfaction?
Q4) Identify and briefly define the three basic control methods.
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Chapter 17: Managing Information in a Global World
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Sample Questions
Q1) What are the three kinds of information technology used by executives,managers,and workers inside a company to access and share information?
A) executive information systems, portals, and intranets
B) local area networks, extranets, and management information systems
C) intranets, local area networks, and portals
D) expert systems, decision support system, and virtual private networks
Q2) Which of the following is an example of a security problem that may threaten data and data networks?
A) screen printing
B) phishing
C) mouse flashing
D) mob flashing
Q3) What is the goal of an executive information system (EIS)?
A) to replace the need for intuition in decision making
B) to create a link among authorized data and network users
C) to protect organizational data from hackers
D) to provide accurate, complete, relevant, and timely information to managers
Q4) What are intranets? List four reasons why they are so popular.
Q5) What is first-mover advantage?
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Chapter 18: Managing Service and Manufacturing Operations
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Sample Questions
Q1) Briefly explain the difference between ISO 9000 certification and the ISO 14000 certification.
Q2) A purchasing manager chooses to procure 95 percent of the main raw material the company needs from one supplier.The supplier knows the company's products extremely well,is always friendly and professional to deal with,and if anything goes wrong,takes care of the problem right away.What does the purchasing manager value most in the supplier?
A) empathy
B) level of assurance
C) the supplier's prices
D) the supplier's friendliness
Q3) Studies clearly show that customers care more about responsiveness than anything else when buying services.
A)True
B)False
Q4) The first step in the service-profit chain is external service quality or the quality of treatment that employees receive from a company's internal service providers.
A)True
B)False
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