

Principles of Management Test Bank
Course Introduction
Principles of Management introduces students to the foundational concepts and theories essential for effective organizational management. The course explores the core functions of management, including planning, organizing, leading, and controlling, while examining how these functions are applied in a dynamic business environment. Students will analyze decision-making processes, leadership styles, motivation techniques, and strategies for managing teams and resources. Through case studies and real-world examples, learners will develop practical skills and an understanding of ethical, cultural, and social considerations in modern management practices.
Recommended Textbook Management 1st Edition by Luis R. Gomez Mejia
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15 Chapters
1199 Verified Questions
1199 Flashcards
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Page 2

Chapter 1: Management and Its Evolution
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8097
Sample Questions
Q1) Niccolo Machiavelli described leadership and presented a cynical view of human nature in what classic book?
A) The Art of War
B) The Prince
C) The Wealth of Nations
D) The Principles of Scientific Management
Answer: B
Q2) Which of the following is not considered one of the key issues influencing business today?
A) An emphasis on customer service
B) Management of change
C) A strong economy
D) The need for higher business ethics
Answer: C
Q3) Discuss Adam Smith's contribution to early management thought.
Answer: Adam Smith was the first to recognize the principle of division of labor in the manufacturing environment.His work with the division of labor for pin workers was responsible for significant gains in the output of factories.This work laid the foundation of scientific management.
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Page 3

Chapter 2: The Culture of Management
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8098
Sample Questions
Q1) The upward trend in birth rates worldwide is having a significant impact on global workforces.
A)True
B)False
Answer: False
Q2) Which of the following is not considered a reason why international assignments end in failure?
A) Family problems
B) Culture shock
C) A poor benefits package
D) Lack of pre-departure cross-cultural training
Answer: C
Q3) List the seven modes of entry to foreign markets.
Answer: The seven modes of entry to foreign markets are exporting, turnkey projects, licensing, franchising, joint ventures, wholly owned subsidiaries, and strategic alliances.
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Chapter 3: Managing Social Responsibility and Ethics
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8099
Sample Questions
Q1) In recognizing the importance of having officers set examples for enlisted personnel, the U.S. military holds officers to a higher standard of conduct than other military personnel.
A)True
B)False
Answer: True
Q2) What are business ethics? Are they the same thing as laws? Explain. Answer: Business ethics provide standards or guidelines for the conduct and decision making of employees and managers.Business ethics are not the same thing as laws.Law and ethics are in agreement in some situations but not in others.For example, it is both illegal and unethical to steal merchandise from an employer, but often it is not illegal to engage in conduct that is unethical (such as taking credit for another employee's work).
Q3) The 1997 Teamsters Union strike against UPS demonstrated the power of which stakeholder group?
A) Community
B) Social activist groups
C) Employees
D) Customers
Answer: C
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Page 5

Chapter 4: Managing Organizational Culture and Change
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8100
Sample Questions
Q1) The Marine Corps boot camps are an example of A) metamorphosis.
B) organizational culture.
C) socialization.
D) employee self-management.
Q2) Which of the following is not one of the three stages of socialization?
A) Prearrival
B) Metamorphosis
C) Orientation
D) Encounter
Q3) What are the three aspects of an organization's culture?
Q4) Mark is a risk taker who enjoys being a free agent rather than committing to one employer. Which type of organizational culture is the best fit for him?
A) Baseball team culture
B) Club team culture
C) Academy team culture
D) Fortress team culture
Q5) Discuss a strong versus weak culture.
Q6) What is a change agent?
Q7) What are the key functions performed by culture?
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Chapter 5: Managing the Planning Process
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8101
Sample Questions
Q1) Worthwhile objectives that allow managers to determine whether key outcomes are being reached include which of the following?
A) Profitability targets such as ROI
B) Quality goals such as percentage of rejects
C) Innovation outcomes such as number of patents
D) all of the above
Q2) When Detroit's Big Three continued their investment in SUVs in the early 2000s, they experienced which of the following pitfalls of planning?
A) Extensive bureaucratization
B) Plans imposed from above
C) Inflexible adherence to objectives and processes
D) Planning as a self-contained activity
Q3) Planning can help managers deal with uncertainty by anticipating what may happen in the future.
A)True
B)False
Q4) What are four elements of the formal planning process?
Q5) What is planning?
Q6) What is MBO? What are the key steps of the MBO cycle?
Page 7
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Chapter 6: Decision Making
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8102
Sample Questions
Q1) Former President Richard Nixon's cover-up in the Watergate break-in that eventually led to his resignation is an example of
A) escalation of commitment.
B) the illusion of control.
C) intuition.
D) groupthink.
Q2) Discuss some techniques to stimulate creativity in group decision making.
Q3) ________ involves selecting the first alternative solution that meets a minimum criterion while ________ involves selecting the best alternative from among multiple criteria.
A) Optimizing; high acceptance
B) Optimizing; satisficing
C) Satisficing; optimizing
D) Satisficing; high acceptance
Q4) Which of the following reflects a crisis situation?
A) A highly ambiguous circumstance in which causes and effects are not known
B) A rare and extraordinary event that can threaten the survival of the organization
C) A surprise to organizational members
D) all of the above
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Chapter 7: Strategic Management
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8103
Sample Questions
Q1) Porter's value-chain analysis attempts to identify
A) primary activities of the firm.
B) the competitive advantage of the firm.
C) support activities of the firm.
D) the value-added of each activity.
Q2) Which of the following is not an approach for organizations to examine their capabilities?
A) Functional analysis
B) Benchmarking
C) Five forces analysis
D) Value-chain analysis
Q3) Maytag's focus on product reliability suggests the firm has chosen a
A) low cost strategy.
B) portfolio strategy.
C) corporate-level strategy.
D) differentiation strategy.
Q4) Strategic outcomes refer to the intended results of the strategic plan.
A)True
B)False
Q5) What is conglomerate diversification? What are its advantages and disadvantages?
Page 9
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Chapter 8: Entrepreneurship and Innovation
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8104
Sample Questions
Q1) Equity financing requires collateral.
A)True
B)False
Q2) Entrepreneurship
A) creates jobs.
B) stimulates innovation.
C) provides opportunities for diverse people in society.
D) all of the above
Q3) Which of the following is a reality of entrepreneurship?
A) Entrepreneurs are born, not made.
B) It is necessary to have access to money to become an entrepreneur.
C) Most entrepreneurs are not young people under 30 years of age.
D) Entrepreneurs become successful on their first venture.
Q4) What is the process of creating a business enterprise capable of entering new or established markets by deploying resources and people in a unique way to develop a new organization?
A) Strategic management
B) Entrepreneurship
C) Partnership
D) Innovation

Page 10
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Chapter 9: Managing the Structure and Design of Organizations
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8105
Sample Questions
Q1) A management strategy used to reduce the scale and scope of a business to improve its financial performance is
A) divestiture.
B) downsizing.
C) acquisition.
D) merger.
Q2) Accountability
A) means that a manager or other employees with authority and responsibility must be able to justify results to a manager at a higher level in the organizational hierarchy. B) can be reflected in periodic performance appraisals.
C) is retained by the manager even if the responsibilities are delegated to subordinates. D) all of the above
Q3) List the strategic factors that affect the choice of organization design.
Q4) The superior-subordinate authority relationship is referred to as A) the chain of command.
B) staff authority.
C) unity of command.
D) the horizontal dimension.
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Chapter 10: Human Resource Management
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8106
Sample Questions
Q1) Union membership in the United States
A) has been declining to a low of approximately 10 percent in 2011.
B) has been increasing to a high of approximately 35 percent in 2011.
C) has been steadily increasing since 1945.
D) is not influential in any industries today.
Q2) If multiple interviewers reach entirely different conclusions about each job applicant, the method does not demonstrate
A) reliability.
B) recruitment.
C) content validity.
D) empirical validity.
Q3) Two commonly used forms of cross-functional training are
A) classroom lectures and simulations.
B) team training and brainstorming.
C) virtual reality and vestibule training.
D) CAI and simulations.
Q4) Discuss the difference between external and internal equity.
Q5) Discuss the importance of reliability and validity in the selection process.
Q6) What is human resource planning? What are the steps involved in the HRP process?
Q7) Discuss the career development process.
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Chapter 11: Managing Employee Diversity
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8107
Sample Questions
Q1) Announcing a diversity program without corporate support
A) holds managers accountable for diversity.
B) sends the message the company is simply going through the motions.
C) encourages diversity networks.
D) suggests that executives have empowered line managers to take the lead in diversity management.
Q2) Studies indicate that most foreign-born immigrants
A) have a higher standard of living than do native-born Americans.
B) do not create an economic threat to those who are native born.
C) are driving the trend of offshoring.
D) are undocumented.
Q3) When First Community Bank Boston presents seminars to diverse communities and provides an 800 line for people who do not speak English well, they are attempting to reap which benefit of diversity?
A) Better market access
B) Greater creativity
C) Improved team performance
D) Global competitiveness
Q4) Who comprises the Asian American segment of the workforce? What are some of their unique challenges?
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Chapter 12: Leadership in Management
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79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/8108
Sample Questions
Q1) Which theory explains why 20 percent of CEOs at the largest U.S. companies are replaced during a given year after stock prices fall or the company fails to meet its performance goals?
A) Contingency theory
B) Reinforcement theory
C) Attribution theory
D) Path-goal theory
Q2) Which power base does not have to actually be used to exert influence?
A) Coercive
B) Legitimate
C) Referent
D) Expert
Q3) According to Theory X as proposed by Douglas McGregor
A) employees prefer to be directed or told what to do.
B) work can be enjoyed as much as rest or play.
C) given the opportunity, the average employee will eagerly accept and seek responsibility.
D) employees are capable of exercising self-control and acting independently if they are committed to achieving organizational goals.
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Page 14

Chapter 13: Managing Teams
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8109
Sample Questions
Q1) When team members have a disagreement over ideas, plans, and projects, it is referred to as
A) relationship conflict.
B) dysfunctional conflict.
C) task conflict.
D) avoidance.
Q2) What is the difference between integrative bargaining and distributive bargaining?
Q3) Social loafing takes place because individuals
A) empower team members to hire high performers.
B) can hide behind the collective effort of the team.
C) conform and want to be treated like everybody else on the team.
D) are supportive of the team goals.
Q4) What are norms?
Q5) When the only rewards are for individual performance
A) team members are likely to compete with each other for the incentive pay.
B) the employees' willingness to collaborate is undermined.
C) the team's cohesiveness is undermined.
D) all of the above
Q6) Describe the five conflict management styles.
Page 15
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Chapter 14: Managing Communication
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8110
Sample Questions
Q1) There is a high level of interactivity between the sender and receiver in
A) face-to-face communication.
B) bulletin boards.
C) electronic newsletters.
D) Facebook postings.
Q2) Memos are an example of ________ communication.
A) face-to-face
B) horizontal
C) written
D) informal
Q3) Translating the symbolic verbal, written, or visual symbols into an undistorted, clear message is
A) feedback.
B) decoding.
C) encoding.
D) noise.
Q4) Discuss the role of listening skills in the communication process.
Q5) E-mail should be considered private.
A)True
B)False
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Chapter 15: Operation and Information System Management
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/8111
Sample Questions
Q1) ________ ultimately decide what constitutes quality through ________.
A) Customers; purchasing decisions
B) Managers; operations decisions
C) Employees; quality circles
D) Managers; company and employee goals
Q2) In process reengineering, the firm is viewed as
A) a complete process.
B) an individual area supplying materials to other areas.
C) small increments of ongoing change.
D) separate and distinct processes.
Q3) The goal of a JIT system is
A) creating the firm's product in the least amount of time.
B) improving the firm's profitability.
C) creating an appropriate strategic plan.
D) developing best practices for quality improvement.
Q4) What is the advantage of an electronic kanban system over the physical card system?
Q5) What is a JIT system?
Q7) Contrast a product, process, and fixed-position layout. Page 17
Q6) What are the three basic control types that a manager can exercise?
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Page 18