Principles of Management Question Bank
Course Introduction
Principles of Management introduces students to the fundamental concepts, theories, and practices that underpin the management of organizations. The course explores key functions such as planning, organizing, leading, and controlling, highlighting how effective management contributes to organizational success. Students will examine topics including decision-making, motivation, leadership styles, strategic planning, and communication within various business environments. Emphasis is placed on applying management principles to real-world scenarios, enabling students to develop analytical and problem-solving skills essential for future managerial roles.
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) Which of the following is NOT an example of an internal force that requires organizational change?
A) Labor union demands
B) Production problems
C) New technologies
D) New company goals
Answer: C
Q2) All of the following are rights granted to citizens and to the government in a private enterprise system EXCEPT the right to _____.
A) fair competition
B) permit price discrimination
C) select from among a variety of goods and services
D) own property
Answer: B
Q3) When farmers rent land in order to increase crop production, they are acquiring capital.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Business Ethics and Social Responsibility
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183 Verified Questions
183 Flashcards
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Sample Questions
Q1) The doctrine of "the right to be heard" would be best reflected by _____.
A) product safety
B) disclosure of true annual interest rates on revolving charge accounts
C) disclosure of sodium content on labels of processed foods
D) a firm establishing a consumer appeals board
Answer: D
Q2) _____ goes beyond truthfulness.
A) Honesty
B) Loyalty
C) Integrity
D) Competence
Answer: C
Q3) There are more male victims of sexual harassment than females.
A)True
B)False
Answer: False
Q4) On-the-job ethical dilemmas are common.
A)True
B)False
Answer: True
Page 4
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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) When a manager tries to evaluate the price and the quantity of a product that will be sold, he or she is dealing with microeconomics.
A)True
B)False
Answer: True
Q2) In a pure monopoly:
A) demand and supply are regulated by the government.
B) buyers have complete control over prices.
C) barriers to prevent entry by would-be competitors are high.
D) sellers typically market homogenous products.
Answer: C
Q3) Demand and supply never affect employment.
A)True
B)False
Answer: False
Q4) The U.S. Postal Service's delivery of first-class mail is an example of a regulated monopoly.
A)True
B)False Answer: True
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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 country has a good chance of selling more of its goods abroad if it _____.
A) increases the value of its currency
B) more tourists decide to travel abroad
C) devalues its currency
D) sets high tariffs on imported goods
Q2) Although people in developing nations have lower per capita incomes than more highly developed nations, their ______represents a lucrative market for global trade.
A) technology
B) political stability
C) huge populations
D) infrastructure
Q3) Due to its highly educated workforce and low labor costs, India has a comparative advantage in software development.
A)True
B)False
Q4) A country's trade balance is determined by comparing the total amount of its exports to its imports.
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) A business plan for a small business typically contains all of the following EXCEPT
A) a statement of the company's goals
B) an executive summary
C) separate financial and marketing sections
D) a time frame for selling stock to investors
Q2) Which of the following statements regarding family-owned businesses is true?
A) Only a small percentage of family-owned businesses survive into the second or third generation.
B) Family-owned companies must submit a written agreement to the state in which it organizes.
C) All family-owned companies must be closed corporations.
D) Family-owned companies are an example of a not-for-profit corporation.
Q3) Sole proprietorship is the most common form of business ownership.
A)True
B)False
Q4) What is a business incubator?
Q5) Describe how small businesses help create new jobs.
Q6) Why are small businesses especially important to women and minorities?
Q7) Compare and contrast the three forms of business ownership.
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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) Concerning education and entrepreneurs, all of the following statements are correct EXCEPT:
A) today, many U.S. universities offer full-fledged majors in entrepreneurship.
B) a number of schools offer opportunities to intern with a start-up.
C) one has to major in business to become an entrepreneur.
D) some colleges and universities offer entrepreneurship courses outside the usual business curriculum.
Q2) Former CEO George Buckley believes that the key to supporting intrapreneurship is the willingness to _____.
A) categorize targeted employment area
B) allocate time and money
C) appoint dedicated personnel
D) pursue a degree in business management
Q3) Banks cannot research an entrepreneur's personal credit history when making lending decisions.
A)True
B)False
Q4) Explain recent demographic and economic trends that create opportunities for entrepreneurs to market new goods and services.
Page 8
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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) A single company will follow only one departmentalization scheme.
A)True
B)False
Q2) Bay Corp. has established a discount schedule for large-volume clients. This _____ will allow managers to devote more time to complex issues.
A) programmed decision
B) contingency decision
C) nonprogrammed decision
D) emergency decision
Q3) Cameron sets the deadlines for an upcoming project. This depicts _____ planning.
A) operational
B) tactical
C) strategic
D) contingency
Q4) Not-for-profit organizations generally avoid organizing through formal structures.
A)True
B)False
Q5) List the steps involved in the decision-making process.
Q6) Compare the four types of organizational structures.
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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) Approximately what percentage of workers in the U.S. private sector is unionized?
A) Less than 5 percent
B) About 6 percent
C) Between 20 percent and 30 percent
D) Over 40 percent
Q2) The basic components of goal-setting theory include all of the following EXCEPT _____.
A) goal difficulty
B) performance feedback
C) goal acceptance
D) time management
Q3) Most union contracts are 5 to 10 years in length.
A)True
B)False
Q4) Management development programs are designed to improve the skills and broaden the knowledge of current or future managers and executives.
A)True
B)False
Q5) On what factors do firms base their compensation policies?
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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) An annual report to shareholders is an example of external communication.
A)True
B)False
Q2) Define team norm and provide an example.
Q3) _____ listening is the basis for effective communication.
A) Active
B) Cynical
C) Polite
D) Nonverbal
Q4) 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
Q5) List the basic steps in managing a public relations crisis.
Q7) What are some of the challenges associated with e-mail? Page 11
Q6) Explain the importance of the storming stage of team development.
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Chapter 10: Production and Operations Management
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166 Verified Questions
166 Flashcards
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Sample Questions
Q1) Explain the difference between production and manufacturing.
Q2) How can a firm best protect itself against an interruption in the supply of parts?
A) Select suppliers through a competitive bidding process.
B) Use suppliers from the city where the firm is located.
C) Maintain more than one supply source.
D) Transport the parts in its own transportation vehicles.
D
Q3) Which of the following is NOT part of the mission of ISO?
A) Enforce quality standards
B) Provide a framework for continual improvement
C) Promote international standards for business, government, and society
D) Facilitate global trade and cooperation
Q4) Which phase of production control determines the amount of all resources needed to produce a certain amount of goods and services?
A) Production planning
B) Routing
C) Dispatching
D) Scheduling
Q5) Describe PERT and how it can be used.
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Chapter 11: Customer-Driven Marketing
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156 Verified Questions
156 Flashcards
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Sample Questions
Q1) An exchange process is an activity in which two or more parties give something of value to each other to satisfy perceived needs.
A)True
B)False
Q2) Family factors have been shown to influence consumer car buying decisions. This is an example of a personal influence on consumer behavior.
A)True
B)False
Q3) Explain the three segmentation methods used by firms that offer business products.
Q4) As its ultimate goal, relationship marketing seeks to achieve customer satisfaction.
A)True
B)False
Q5) The first element of a marketing strategy is to identify a target market.
A)True
B)False
Q6) Discuss the evolution of the marketing concept through the marketing history eras. To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Product and Distribution Strategies
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) Logistics is the process of coordinating the flow of goods, services, and information among all members of the supply chain.
A)True
B)False
Q2) Which of the following statements is true of selective distribution?
A) It requires cooperation by many intermediaries, including wholesalers and retailers, to achieve maximum coverage.
B) It can reduce total marketing costs and establishes strong working relationships within the channel.
C) It can limit market coverage in a specific geographical region.
D) It suits relatively expensive specialty products.
Q3) Loop Inc., an international pizza restaurant chain, is the first company that is thought of by most people when the product category of pizzas is mentioned. This instance illustrates Loop's _____.
A) brand awareness
B) concept testing
C) brand insistence
D) test marketing
Q4) Identify and describe the major stages of the product life cycle.
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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) Marketers rarely try to combine pushing and pulling strategies in the same promotional campaign.
A)True
B)False
Q2) Andrew is allowed to purchase a reasonably priced notebook computer for graduation. He sees one at Excel Electronics for $999.99 and calls his parents to assure them the computer costs "less than a thousand." Both Andrew and Excel Electronics are using _____ to downplay the price of the computer.
A) cost-based pricing
B) personal selling
C) price fixing
D) odd pricing
Q3) Limited availability can create product prestige.
A)True
B)False
Q4) Creative selling involves a persuasive type of promotional presentation.
A)True
B)False
Q5) Describe advertising specialties.
Q6) Name the two basic types of advertising and provide examples for both.
Page 16
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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) Grid computing combines multiple small computers to create a virtual mainframe.
A)True
B)False
Q2) On-demand computing is different than utility computing.
A)True
B)False
Q3) An expert system is a computer program that imitates human thinking.
A)True
B)False
Q4) Information is the result of processed data.
A)True
B)False
Q5) A computer program that imitates human thinking is a(n) ________.
A) information interface
B) decision support system
C) enterprise resource planning system
D) expert system
Q6) Data alone are of limited value to a company.
A)True
B)False
Page 17
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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) Define GAAP and explain its purpose.
Q2) Depreciation is reported as an expense on the firm's income statement, it but does not involve any actual cash.
A)True
B)False
Q3) _____ activities provide the necessary funds to start a business and to expand it after it begins operations.
A) Selling
B) Financing
C) Operating
D) Investing
Q4) 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)
Q5) Explain the accounting equation.
Q6) Describe the purpose of budgets in a business.
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Chapter 16: The Financial System
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163 Flashcards
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Sample Questions
Q1) The vast majority of funds flow through direct transfers.
A)True
B)False
Q2) Regulation of U.S. financial markets is primarily a function of the federal government; states do not regulate them in any way.
A)True
B)False
Q3) The Federal Open Markets Committee sets policies regarding bank mergers and lending standards.
A)True
B)False
Q4) The Treasury sells bonds that mature in 2, 5, 10, and 30 years from the date of issue.
A)True
B)False
Q5) In the long run stock prices tend to follow a company's profits.
A)True
B)False
Q6) Explain what a credit union is and give an example of one.
Q7) What are financial institutions?
Page 19
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Chapter 17: Financial Management
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Sample Questions
Q1) Short-term sources of funds are loans that are repaid within one year.
A)True
B)False
Q2) Unlike private equity funds, which tend to focus on small, start-up companies, venture capital funds invest in all types of businesses, including mature ones.
A)True
B)False
Q3) Explain the concept of leverage.
Q4) All short-term bank loans are secured, meaning that the borrower pledges specific assets as collateral.
A)True
B)False
Q5) In a sense, a(n) ________ is the reverse of a merger.
A) tender offer
B) leverage buyout
C) divestiture
D) acquisition
Q6) Explain the difference between an expansion decision and a replacement decision.
Q7) Describe a disadvantage of equity capital.
Page 20
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