Principles of Management
Pre-Test Questions
Course Introduction
Principles of Management introduces students to the fundamental concepts, theories, and practices that form the foundation of effective management in organizations. The course covers essential topics such as planning, organizing, leading, and controlling, while exploring the roles and responsibilities of managers at various levels. Emphasis is placed on decision-making, strategic thinking, motivation, leadership, communication, and the management of change within both traditional and contemporary business environments. By understanding the core principles of management, students will be equipped to analyze organizational challenges and apply practical solutions for improved performance and efficiency.
Recommended Textbook
Contemporary Business 16th Edition by Louis
E. Boone
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17 Chapters
2631 Verified Questions
2631 Flashcards
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Page 2
Chapter 1: The Changing Face of Business
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156 Verified Questions
156 Flashcards
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Sample Questions
Q1) _____ are essential because it serves as a primary incentive for people to start companies, expand them, and provide consistently high-quality competitive goods and services.
A) Coupons
B) Profits
C) Discounts
D) Rebates
Answer: B
Q2) The concept of branding first emerged during the _____.
A) production era
B) relationship era
C) age of the industrial entrepreneur
D) marketing era
Answer: D
Q3) Participating in nonprofit programs is an example of exhibiting social responsibility.
A)True
B)False
Answer: True
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Chapter 2: Business Ethics and Social Responsibility
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183 Verified Questions
183 Flashcards
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Sample Questions
Q1) Describe the factors that influence an individual's business ethics.
Answer: An individual's business ethics is shaped by a huge number of factors. Experiences help shape responses to different situations. A person's family, educational, cultural, and religious backgrounds also can play a role, as can the environment within the firm. Ethical climate of the company also plays a role.
Q2) Sexual harassment is divided into two categories: pressure to comply with unwelcome advances for job security and a hostile work environment.
A)True
B)False
Answer: True
Q3) Why is ethical leadership so important?
Answer: Without supervisors and managers demonstrating ethical behavior, employees are not as likely to follow a set of ethical standards. An important way for business leaders to demonstrate ethical behavior is to admit when they are wrong and correct their organization's mistakes. Companies where managers set good examples have fewer incidences of unethical behavior, and employees report higher levels of satisfaction.
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Chapter 3: Economic Challenges Facing Contemporary Business
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179 Verified Questions
179 Flashcards
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Sample Questions
Q1) The government of Oaksland, a less-developed country, has been spending the revenue generated from taxes and fees on infrastructural development, health care, and public utilities. Its expenditure has exceeded its revenue. This condition referred to as a _____.
A) trade surplus
B) positive balance of payment
C) break-even point
D) budget deficit
Answer: D
Q2) If buyers' incomes increase, the demand curve will shift to the _____ and the prices will _____.
A) right; rise
B) left; fall
C) right; fall
D) left; rise
Answer: A
Q3) In a mixed economy, private firms do not compete with public enterprises.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Competing in World Markets
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) A nation's exchange rate is the rate at which a nation's currency can be exchanged for the currencies of other nations.
A)True
B)False
Q2) A country's trade balance is determined by comparing the total amount of its exports to its imports.
A)True
B)False
Q3) Countries with heavy debt burdens often avoid making countertrades.
A)True
B)False
Q4) A country's exchange rate is based on _____.
A) the rate at which its currency can be exchanged for currencies of other countries
B) the number of foreign banks it has
C) tariffs and related trade restrictions
D) the relationship between its imports and exports
Q5) The currency of all EU countries is the euro.
A)True
B)False
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Chapter 5: Forms of Business Ownership and Organization
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) Jose is a stockholder in a software consulting firm. He gets a share of the earnings of the firm, on which he has to pay taxes. Moreover, the firm pays taxes on its earnings. As an individual, Jose is not legally liable to pay off the debts that might be incurred by the firm. In this scenario, the software consulting firm can be regarded as a _____.
A) sole proprietorship
B) partnership
C) corporation
D) franchise
Q2) Which of the following is an advantage of a home-based business?
A) Greater visibility to customers
B) Lower costs
C) Less flexibility
D) Isolation
Q3) In exchange for an ownership share, small businesses receive financing from a group of investors known as _____,
A) microloan investors
B) franchisors
C) Small Business Investment Companies
D) venture capitalists
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Page 7
Chapter 6: Starting Your Own Business: the Entrepreneurship Alternative
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) Information technology can help entrepreneurs in all of the following ways EXCEPT:
A) provide improved customer service.
B) guarantee financial success.
C) work quickly and efficiently.
D) increase sales.
Q2) Describe the differences between entrepreneurs and small-business owners and managers.
Q3) Elon Musk, founder of PayPal, and CEO of Tesla Motors, Solar City, and SpaceX, is a serial entrepreneur.
A)True
B)False
Q4) Obtaining financing for an existing business is easier than it is for most start-up companies.
A)True
B)False
Q5) Discuss the four motives frequently cited as major reasons why people become entrepreneurs.
Q6) Explain the difference between debt financing and equity financing.
Q7) List the eight major characteristics of an entrepreneur.
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Chapter 7: Management, Leadership, and the Internal Organization
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194 Verified Questions
194 Flashcards
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Sample Questions
Q1) Karl is a member of his firm's strategic planning team. He has identified several untapped markets that exist in other countries. In a SWOT analysis, his observation should be listed as a(n) _____.
A) opportunity
B) weakness
C) strength
D) threat
Q2) Daniel is working on a project where he needs to anticipate future events and conditions, as well as avoid costly mistakes. Daniel is engaged in the _____ managerial function.
A) controlling
B) planning
C) organizing
D) directing
Q3) Provide examples of tools managers might use to reinforce corporate culture.
Q4) Democratic leaders _____.
A) are always the most effective leaders
B) let people know only what they need to know to do their jobs
C) involve their subordinates in the decision-making process
D) leave all decisions to their subordinates
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Chapter 8: Human Resource Management: From
Recruitment to Labor Relations
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) A union that represents a single community in a specific area is an example of a(n)
A) local union
B) international union
C) national union
D) free union
Q2) Which of the following management functions is most likely to be responsible for planning for staffing needs, recruiting and hiring workers, providing for training and evaluating performance, determining compensation and benefits, and overseeing employee separation?
A) Human resource management
B) Human asset accounting
C) Research and Development (R&D)
D) Change management
Q3) Union contracts typically cover a time period of _____.
A) less than one year
B) two to three years
C) five years
D) more than five years
Q4) What types of employee benefits are mandated by law?
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Chapter 9: Top Performance Through Empowerment,
Teamwork, and Communication
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146 Verified Questions
146 Flashcards
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Sample Questions
Q1) Calder is listening to a voice message left by his manager, but he cannot understand most of it due to his manager's cell phone breaking up. Calder calls back his manager for the complete message since he cannot effectively communicate with this type of
A) grapevine
B) noise
C) nonverbal communication
D) conflict
Q2) Team norms are usually _____ and _____ standards of behavior.
A) formal; written
B) informal; written
C) formal; unwritten
D) informal; unwritten
Q3) Flexibility is the primary advantage of virtual teams.
A)True
B)False
Q4) Communication is the key to the success of cross-functional teams..
A)True
B)False
Q5) What are the advantages and drawbacks of virtual teams?
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Chapter 10: Production and Operations Management
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166 Flashcards
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Sample Questions
Q1) A(n) _____ groups machinery and equipment according to their functions.
A)process layout
B)LEED certification
C)Gantt chart
D)PERT chart
E)Inventory control
F)ISO
G)critical path
H)Computer-integrated manufacturing
I)Utility
J)perpetual inventory
K)Materials requirement planning
L)standardization
M)Routing
N)assembly line
O)robot
P)just-in-time
Q)benchmarking
R)synthetic production system
S)make, buy, or lease decision
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Page 12
Chapter 11: Customer-Driven Marketing
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156 Verified Questions
156 Flashcards
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Sample Questions
Q1) _____ strategy effectively blends advertising, personal selling, sales promotion, and public relations to achieve its goals of informing, persuading, and influencing purchase decisions.
A) Promotional
B) Distribution
C) Pricing
D) Product
Q2) Describe the sources of marketing research data.
Q3) Gender is an example of a factor in demographic segmentation.
A)True
B)False
Q4) The Custom Foot is a shoe store chain that manufactures shoes and allows customers to design a unique product by selecting from the type of leather, color, design, and size. This is an example of _____.
A) standardization
B) adaptation
C) organization marketing
D) mass customization
Q5) Explain how a company might decide on a marketing mix for an international company.
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Chapter 12: Product and Distribution Strategies
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) Explain the relationship between a company's product line and product mix.
Q2) E-readers were introduced with great success. Additional companies have entered the market and sales have continued steadily. E-readers are an example of a product in the _____ stage of the product life cycle.
A) growth
B) introduction
C) maturity
D) decline
Q3) Products purchased only after the consumer has compared competing products in competing stores on the basis of price, quality, style, and color would be classified as _____.
A) business products
B) shopping products
C) specialty products
D) convenience products
Q4) Logistics is the process of coordinating the flow of goods, services, and information among all members of the supply chain.
A)True
B)False
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Chapter 13: Promotion and Pricing Strategies
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157 Verified Questions
157 Flashcards
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Sample Questions
Q1) Advertising is a global activity.
A)True
B)False
Q2) In the movie, The Social Network, the actor portraying Mark Zuckerberg was featured wearing products by Gap and the North Face. This form of promotion is known as
A) trade promotion
B) institutional advertising
C) creative selling
D) product placement
Q3) A promotional mix often incorporates more personal selling components than nonpersonal selling components.
A)True
B)False
Q4) Penetration pricing is often used when there are no close competitors and none are expected to enter the market for some time.
A)True
B)False
Q5) Describe the relationship between price and quality.
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Chapter 14: Using Technology to Manage Information
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) Executive support systems are computer programs that imitate human thinking through complicated sets of "if-then" rules.
A)True
B)False
Q2) Cloud-computing services often make off-site backup more complicated.
A)True
B)False
Q3) Bill is sitting at his computer preparing a new sales brochure. The brochure combines high-quality type, graphics, and photographs. What type of software is Bill likely using to create the brochure?
A) word processing program
B) desktop publishing program
C) presentation graphics program
D) spreadsheet program
Q4) One basic form of disaster prevention is routinely backing up software and data.
A)True
B)False
Q5) An expert system is a computer program that imitates human thinking.
A)True
B)False
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Chapter 15: Understanding Accounting and Financial Statements
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) Which of the following was established in 1973 to promote worldwide consistency in financial reporting practices?
A) FASB
B) IASC
C) The World Bank
D) GAAP
Q2) Monica is involved in obtaining new funds to run and expand the business. She is engaged in an investing activity.
A)True
B)False
Q3) To provide reliable, consistent, and unbiased information to decision makers, accountants follow guidelines, or standards, known as _____.
A) the accounting process
B) the accounting system
C) generally accepted accounting principles (GAAP)
D) Financial Accounting Standards Board (FASB)
Q4) The right side of the balance sheet lists claims against assets.
A)True
B)False
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Chapter 16: The Financial System
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163 Verified Questions
163 Flashcards
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Sample Questions
Q1) Explain what a credit union is and give an example of one.
Q2) Funds can be transferred between savers and users in two ways:_____________.
A) individually and collectively
B) in person and electronically
C) directly and indirectly
D) free and with user charges
Q3) The _____ order is called instructs the broker to obtain the best possible price-the highest price when selling and the lowest price when buying.
A) fast
B) stock
C) market
D) limit
Q4) Most nations do not have a central bank similar to the U.S. Federal Reserve.
A)True
B)False
Q5) All of the following are included in M1 EXCEPT ________.
A) money market mutual funds
B) total value of coins
C) checking accounts
D) currency in circulation
Page 18
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Chapter 17: Financial Management
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99 Flashcards
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Sample Questions
Q1) _____ raise money from wealthy individuals and institutional investors, and invest these funds in small, start-up companies.
A)Venture capitalists
B)private placements
C)factoring
D)capital investment analysis
E)debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds
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Page 19