Principles of Management
Pre-Test Questions
Course Introduction
Principles of Management introduces students to the fundamental concepts and theories that form the foundation of successful organizational leadership and administrative practices. The course covers core management functions such as planning, organizing, leading, and controlling, while exploring key topics including decision-making, motivation, team dynamics, organizational structure, and strategic management. Through case studies and real-world applications, students develop critical-thinking and problem-solving skills essential for effective management in diverse business environments.
Recommended Textbook
Understanding Business 11th Edition by William Nickels
Available Study Resources on Quizplus
25 Chapters
7941 Verified Questions
7941 Flashcards
Source URL: https://quizplus.com/study-set/2910 Page 2
Chapter 1: Taking Risks and Making Profits Within the Dynamic Business Environment
Available Study Resources on Quizplus for this Chatper
327 Verified Questions
327 Flashcards
Source URL: https://quizplus.com/quiz/167429
Sample Questions
Q1) World trade has both benefits and costs. Which of the following statements attests to this fact?
A) The U.S. economy and all businesses that participate in this economy were negatively impacted by the wars in Iraq and Afghanistan.
B) The standard of living for citizens in developing nations has significantly decreased due to globalization.
C) Economists are convinced that global job creation will never occur if our politicians support world trade.
D) Large companies and small companies agree that the green movement is a global issue. Firms are embracing opportunities to bring value to consumers by creating green products and services.
Answer: D
Q2) Nonprofit organizations are similar to businesses in that they often provide goods and services that satisfy the needs of society.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Understanding Economics and How It Affects Business
Available Study Resources on Quizplus for this Chatper
314 Verified Questions
314 Flashcards
Source URL: https://quizplus.com/quiz/57969
Sample Questions
Q1) In command economies, the government plays a major role in deciding which goods are produced and who will get them.
A)True
B)False
Answer: True
Q2) The consumer price index (CPI) measures what is happening to prices at the wholesale level.
A)True
B)False
Answer: False
Q3) Nick wants to buy a new car, and is planning to borrow the money for his purchase from a bank. He read in the newspapers that the Federal Reserve is likely to implement policies in the next few weeks that are designed to stimulate the economy. Nick would probably get a lower interest rate on his car loan if he waits until after the Fed implements its new policies.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Doing Business in Global Markets
Available Study Resources on Quizplus for this Chatper
358 Verified Questions
358 Flashcards
Source URL: https://quizplus.com/quiz/167726
Sample Questions
Q1) Having recently found sources of oil on their own land, the infant nation of Lancerland enacted a tariff on imported petroleum in order to raise money for their new government. This trade restriction is an example of a(n) ________ tariff.
A) revenue
B) protective
C) percentage
D) fixed
Answer: A
Q2) Although he is confident of success, Rhett is concerned that social, cultural and economic differences in other nations may create some problems. He believes he should adapt his approach to these differences rather than trying to force the "American way" on foreign consumers. Rhett's attitude suggests that he wants to avoid a(n) ___________ approach to business.
A) ethnocentric
B) flexible
C) ethical
D) countercultural
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Demanding Ethical and Socially Responsible Behavior
Available Study Resources on Quizplus for this Chatper
269 Verified Questions
269 Flashcards
Source URL: https://quizplus.com/quiz/167732
Sample Questions
Q1) In order to avoid insider trading, the SEC (Securities and Exchange Commission) has adopted a new rule called _____________ that requires publicly traded companies to release information to everyone in a timely manner, rather than just to a few persons.
A) Insider Trading Phenomenon
B) Regulation FD (Fair Disclosure)
C) Red Herring Regulation
D) PDI (Public Display of Information Act)
Q2) A firm's carbon footprint is:
A) the number of employees it hires in a specific community.
B) its legacy in terms of how much public good it dispersed over its lifetime.
C) the amount of carbon it releases in its effort to do business.
D) its participation in local fund-raising events.
Q3) When facing an ethical dilemma, it is often helpful to discuss the situation with your supervisor because ethical decisions will always withstand scrutiny.
A)True
B)False
Q4) Explain the difference between a compliance-based ethics code and an integrity-based ethics code.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: How to Form a Business
Available Study Resources on Quizplus for this Chatper
347 Verified Questions
347 Flashcards
Source URL: https://quizplus.com/quiz/167730
Sample Questions
Q1) Joe Jackson operates a sole proprietorship, but he is in poor health and may be unable to continue running the business. If Joe becomes incapacitated, his business:
A) automatically continues under new management as a sole proprietorship.
B) automatically converts into a public corporation with stock sold to interested investors.
C) ceases to exist unless sold or taken over by Joe's heirs.
D) becomes the property of the most senior employee who wishes to continue operating the firm.
Q2) In a general partnership, all partners share in management of the business and in the liability for the firm's debts.
A)True
B)False
Q3) Stockholders in a corporation exert a significant degree of control over the company's daily operations.
A)True B)False
Q4) Describe and differentiate between the three types of corporate mergers. Give an example of each type.
To view all questions and flashcards with answers, click on the resource link above.
7
Chapter 6: Entrepreneurship and Starting a Small Business
Available Study Resources on Quizplus for this Chatper
316 Verified Questions
316 Flashcards
Source URL: https://quizplus.com/quiz/167733
Sample Questions
Q1) Although corporate managers often exhibit the skills required of successful entrepreneurs, they seldom have the desire to give up the perks and fringe benefits of corporate life and start their own business.
A)True
B)False
Q2) An entrepreneurial team is a group of experienced managers who share the same skills and abilities.
A)True
B)False
Q3) The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called:
A) the Small Business Council of Volunteers.
B) Partners in Service and Economic Progress.
C) Small Business Counselors Incorporated.
D) the Service Corps of Retired Executives.
Q4) Entrepreneurship is another name for management.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Management and Leadership
Available Study Resources on Quizplus for this Chatper
285 Verified Questions
285 Flashcards
Source URL: https://quizplus.com/quiz/57964
Sample Questions
Q1) As a middle manager for her firm, Tori just finished comparing the results of a promotional campaign with the outcome expectations. The next step in the control process is:
A) monitor and record actual performance.
B) set up contingency plans.
C) communicate results and deviations with management and employees involved.
D) establish discipline committees to decide on dismissals.
Q2) Beth has spent the last two hours going over some consumer surveys to see how well her company is achieving its goal of improving customer satisfaction. Beth's efforts are an example of the controlling function of management.
A)True
B)False
Q3) Managers in progressive organizations tend to emphasize teamwork and cooperation rather than discipline and giving orders.
A)True
B)False
Q4) Managers must lead by doing, not just by saying.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Structuring Organizations for Todays
Challenges
Available Study Resources on Quizplus for this Chatper
369 Verified Questions
369 Flashcards
Source URL: https://quizplus.com/quiz/57963
Sample Questions
Q1) A ____________ organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor
A) matrix
B) cross-functional
C) line
D) line-and-staff
Q2) A tall organization structure consists of multiple levels of management.
A)True
B)False
Q3) Carlos is the person to see in the welding department if you are a new employee. While he is not a manager, he is the person that most of the others in the department look to for advice and assistance. Carlos is an important member of the firm's:
A) supervisory management.
B) participatory control.
C) informal organization.
D) closet cabinet.
Q4) Describe two major issues that are important in organizational design.
Q5) Discuss Max Weber's views on organization theory.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Production and Operations Management
Available Study Resources on Quizplus for this Chatper
326 Verified Questions
326 Flashcards
Source URL: https://quizplus.com/quiz/167727
Sample Questions
Q1) The production of a bridge, ship, or large airplane usually involves a variable-position facility layout.
A)True
B)False
Q2) Service organizations find it difficult to provide outstanding service every time because the process is so labor intensive.
A)True
B)False
Q3) So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles.
A)True
B)False
Q4) Recent research suggests that the best way to maintain consistently high quality in the production process is to give a group of specialists in a separate quality control department the authority to inspect each product at the end of the production process.
A)True
B)False
Q5) What are the ISO 9000 and ISO 14000 standards? Why are they important?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Motivating Employees
Available Study Resources on Quizplus for this Chatper
374 Verified Questions
374 Flashcards
Source URL: https://quizplus.com/quiz/136818
Sample Questions
Q1) Feedback enhances worker motivation by giving employees a feeling of achievement and recognition.
A)True
B)False
Q2) Ruth Eday is sorry she ever hired Helen Highwater since Helen's work is sloppy and often late. Moreover, she doesn't get along well with most of the other employees and frequently initiates arguments. According to reinforcement theory, the only effective way for Ruth to deal with Helen's behavior is to wait for Helen to do something good, and then praise and reward her for the result.
A)True
B)False
Q3) Herzberg used the term hygiene factor to refer to an element of job content that was most important as a source of worker motivation.
A)True
B)False
Q4) Job simplification is an effective strategy for managers who want to achieve job enrichment.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Human Resource Management: Finding and
Keeping the Best Employees
Available Study Resources on Quizplus for this Chatper
437 Verified Questions
437 Flashcards
Source URL: https://quizplus.com/quiz/57960
Sample Questions
Q1) Which of the following statements about contingent workers is most accurate?
A) More than 75 percent of contingent workers are employed in office-clerical work.
B) The number of contingent workers in the U.S. has steadily declined over the past decade.
C) U.S. labor laws require firms to offer contingent employees the same wages and benefits as other employees performing similar work.
D) Companies will rely on contingent workers in an uncertain economy.
Q2) When managing your human resources, _____________ is the process of deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization.
A) interviewing
B) applicant analysis
C) performance appraisal
D) selection
Q3) Though temporary workers are employed in most sectors of the economy, almost none have been hired to fill manufacturing jobs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Dealing With Union and Employeemanagement Issues
Available Study Resources on Quizplus for this Chatper
302 Verified Questions
302 Flashcards
Source URL: https://quizplus.com/quiz/57959
Sample Questions
Q1) The primary purpose of collective bargaining is to:
A) ensure worker participation in setting the goals and objectives of the company.
B) establish and communicate clear guidelines for performance appraisals.
C) limit the authority of management to set job categories and direct worker activities.
D) negotiate a labor-management agreement that both the union and management are willing to accept.
Q2) The Norris-LaGuardia Act made it more difficult for unions to legally recruit new members.
A)True
B)False
Q3) Membership in labor unions has grown steadily over the past 50 years. A)True
B)False
Q4) The first national labor organization, the Knights of Labor, sought to gain enough political power to restructure the entire U.S. economy.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Marketing: Helping Buyers Buy
Available Study Resources on Quizplus for this Chatper
252 Verified Questions
252 Flashcards
Source URL: https://quizplus.com/quiz/167737
Sample Questions
Q1) The marketing efforts at Rotary Enterprises place a great deal of emphasis on marketing goods that will earn the firm a profit. This focus on profit orientation shows that Rotary has not yet adopted the marketing concept that emphasizes a customer orientation rather than a profit orientation.
A)True
B)False
Q2) A firm's marketing mix refers to the combination of:
A) goods the firm offers to different market segments.
B) advertising media the firm utilizes to promote its products.
C) strategies regarding product, price, place, and promotion.
D) people directly involved in making marketing decisions.
Q3) The fact that ShapeUP is designed to appeal to women of a certain age, education and income level, means that Callie is using:
A) demographic segmentation.
B) psychographic segmentation.
C) volume segmentation.
D) geographic segmentation
Q4) Describe the steps involved in conducting marketing research.
Q5) Identify and discuss the four eras of the evolution of marketing.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Developing and Pricing Goods and Services
Available Study Resources on Quizplus for this Chatper
357 Verified Questions
357 Flashcards
Source URL: https://quizplus.com/quiz/167249
Sample Questions
Q1) In the new-product development process, product analysis is completed prior to the product screening stage.
A)True
B)False
Q2) Textbook publishers use a packaging strategy known as ______________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.
A) proformatting
B) bartering
C) bundling
D) trademarketing
Q3) When people consider purchasing a good, they:
A) are responding to the market forces of supply and demand.
B) are most influenced by the price of the product or service.
C) will not consider goods that require them to make a special effort to purchase.
D) may evaluate and compare a variety of factors.
Q4) Discuss the role of packaging in a firm's total product offer.
Q5) What is a brand? What is a brand name? What is meant by brand equity?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Distributing Products
Available Study Resources on Quizplus for this Chatper
315 Verified Questions
315 Flashcards
Source URL: https://quizplus.com/quiz/167740
Sample Questions
Q1) A sales agent is an agent who represents the interests of the consumer in a particular territory when negotiating terms of purchases made directly from a producer.
A)True
B)False
Q2) Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco to florists thousands of miles away in cities such as New York, Boston, and Philadelphia. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Marcia to use would be:
A) railroads.
B) trucks.
C) air.
D) ships.
Q3) Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Using Effective Promotions
Available Study Resources on Quizplus for this Chatper
267 Verified Questions
267 Flashcards
Source URL: https://quizplus.com/quiz/167478
Sample Questions
Q1) A recent study reveals that regardless of the product or target market, mobile media is not a promotion mix tool that works efficiently.
A)True
B)False
Q2) ___________ encourages people to tell other people about goods or services they have enjoyed.
A) Personal selling
B) Publicity
C) A trade show
D) Word-of-mouth promotion
Q3) Effective use of public relations includes an evaluation of public attitudes and the execution of a program to earn public acceptance.
A)True
B)False
Q4) Integrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strategy.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Understanding Accounting and Financial Information
Available Study Resources on Quizplus for this Chatper
366 Verified Questions
366 Flashcards
Source URL: https://quizplus.com/quiz/167745
Sample Questions
Q1) Accounting provides information about the financial condition and operating performance of a firm.
A)True
B)False
Q2) Peak Performance Sporting Goods Company continues to perform well in spite of an economic recession. Company executives credit this to the strong partnerships it enjoys with category killer and large discount chains. Last week Peak Performance reported basic EPS [earnings per share] = $.80/share. If the firm has 4,000,000 shares outstanding, <u>net income after taxes</u> for the same period = ______.
A) $80,000
B) $5,000,000
C) $3,200,000
D) $32,000
Q3) As the burden of taxes grows, the role of the auditor becomes increasingly important to the organization.
A)True
B)False
Q4) What is ratio analysis? Explain the four different types of ratios and how each is used.
19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Financial Management
Available Study Resources on Quizplus for this Chatper
300 Verified Questions
300 Flashcards
Source URL: https://quizplus.com/quiz/57953
Sample Questions
Q1) Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company whose product produces lush green foliage needs serious funding. The handful of seed scientists that own the company are seeking ____________, but understand that they will relinquish a sizeable share of ownership in order to obtain the funds
A) debenture capital
B) international line of credit
C) leverage
D) venture capital
Q2) The operating (master) budget identifies the funds (and the allocation of those funds) required to operate a business at a projected level of revenue.
A)True
B)False
Q3) Acquiring funds through debt financing enhances the firm's ability to increase profits.
A)True
B)False
Q4) Identify and describe three types of short-term financing.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Using Securities Markets for Financing and Investing Opportunities
Available Study Resources on Quizplus for this Chatper
410 Verified Questions
410 Flashcards
Source URL: https://quizplus.com/quiz/167484
Sample Questions
Q1) Corporate management decisions are influenced by the desire to keep stockholders happy.
A)True
B)False
Q2) In a secondary market sale of stock, the proceeds go to the investor selling the stock, not to the corporation.
A)True
B)False
Q3) U.S. government bonds are considered a secure investment because:
A) the interest rates are protected from inflation and tied to the consumer price index.
B) they are backed by the full faith and credit of the federal government.
C) the interest rates are higher than for corporate bonds of equal duration.
D) if they are lost or stolen the federal government promises to replace them when the proof of purchase is provided.
Q4) Stock certificates identify per share dividends, expressed as a percentage of par value.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Money, Financial Institutions, and the Federal Reserve
Available Study Resources on Quizplus for this Chatper
312 Verified Questions
312 Flashcards
Source URL: https://quizplus.com/quiz/167748
Sample Questions
Q1) Which of the following can include an embedded radio-frequency antenna that allows the holder to access secure areas in buildings or buy gas with the swipe of a card?
A) smart cards
B) direct deposit cards
C) e-cards
D) check conversion cards
Q2) __________ are nonprofit, member-owned financial cooperatives that offer a full variety of banking services such as accepting deposits and making loans
A) Mutual thrift associations
B) Credit unions
C) Commercial banks
D) Mutual fund companies
Q3) Commercial and consumer finance companies specialize in making low-interest loans to individuals and businesses with strong credit ratings.
A)True
B)False
Q4) Compare and contrast the functions of the World Bank and the International Monetary Fund.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Managing the Marketing Mix: Product, Price,
Place and Promotion
Available Study Resources on Quizplus for this Chatper
516 Verified Questions
516 Flashcards
Source URL: https://quizplus.com/quiz/57950
Sample Questions
Q1) Delacroix Shoes produces top-quality high-fashion shoes, designed for the person concerned about style. Delacroix gives only a few preferred retailers in a given market area the right to market its product. Delacroix Shoes uses:
A) intensive distribution.
B) selective distribution.
C) exclusive distribution.
D) limited function distribution.
Q2) Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package. A)True
B)False
Q3) The purpose of __________ is to create real or perceived product differences. A) niche marketing
B) product differentiation
C) product mixing
D) target marketing
Q4) Electronic retailing is selling goods and services online to the final consumer. A)True
B)False
23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Extension: Working Within the Legal Environment
Available Study Resources on Quizplus for this Chatper
245 Verified Questions
245 Flashcards
Source URL: https://quizplus.com/quiz/167405
Sample Questions
Q1) Congress prohibited discrimination against people with physical disabilities when they enacted the Americans with Disabilities Act. This is an example of common law.
A)True
B)False
Q2) Explain two of the major U.S. antitrust laws.
Q3) Administrative agencies actually have a greater impact on businesses than courts do.
A)True
B)False
Q4) The primary objective of a tax credit is to encourage businesses to behave in certain ways. One example is offering a tax credit to automobile manufacturers for the purchase of robotics used in the manufacture of automobiles.
A)True
B)False
Q5) Laws regulating marriage and personal injury liability are part of our body of criminal law.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Extension: Using Technology to Manage Information
Available Study Resources on Quizplus for this Chatper
189 Verified Questions
189 Flashcards
Source URL: https://quizplus.com/quiz/136820
Sample Questions
Q1) The cause of almost all instability in computer systems can be traced to poorly designed hardware.
A)True
B)False
Q2) Studies have shown that all types of workers are likely to become more productive when they are allowed to telecommute.
A)True
B)False
Q3) A basic truth in management is that you can never have too much information.
A)True
B)False
Q4) The organizations that benefit the most from an intranet are the ones that:
A) publish information on the intranet that all employees can access.
B) operate the intranet over a mainframe system.
C) base the intranet interface on one of the popular web browsers.
D) develop interactive intranet applications.
Q5) Internal networking shares the resources of all computers with each networked computer.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Extension: Managing Risk
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/57972
Sample Questions
Q1) The beginning of an effective risk management strategy is a good loss-prevention program.
A)True
B)False
Q2) A characteristic of a health savings account that distinguishes it from other types of health care coverage is that it:
A) is not tax-deferred.
B) allows people to save money for medical expenses in a tax-deferred account.
C) covers only emergency procedures.
D) provides unlimited access to routine medical services (such as office visits) and minor medical tests and procedures (such as blood tests and X-rays) at no cost.
Q3) An enterprise risk management (ERM) program has a goal of defining which risks the program will manage.
A)True
B)False
Q4) Pure risk involves the chance of either a profit or a loss.
A)True
B)False
Q5) Explain the four ways of managing risk.
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Extension: Managing Personal Finances
Available Study Resources on Quizplus for this Chatper
259 Verified Questions
259 Flashcards
Source URL: https://quizplus.com/quiz/57971
Sample Questions
Q1) The best way to save money is to pay yourself first.
A)True
B)False
Q2) The earnings of a traditional individual retirement account (IRA) are:
A) taxed at the time they are earned.
B) not taxed.
C) taxed when the funds are withdrawn.
D) subject to the double taxation of all dividends.
Q3) Most financial experts believe that the stock market is likely to grow more slowly in the future than it did in the last 50 years.
A)True
B)False
Q4) Credit-card debt represents an asset on a consumer's balance sheet.
A)True
B)False
Q5) If you are in the 25 percent tax bracket and your home mortgage interest is $1,000 per month, then your after-tax mortgage interest cost is $750 per month.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27