Principles of Management Test Questions
Course Introduction
Principles of Management introduces students to the foundational concepts and theories that guide effective management practices in organizations. The course covers essential functions such as planning, organizing, leading, and controlling, while exploring the roles and responsibilities of managers in various organizational settings. Through real-world case studies and discussions, students gain insights into decision-making, strategic thinking, team dynamics, and the impact of external environments on managerial processes. Emphasis is placed on ethical considerations, communication skills, and the development of leadership abilities needed to successfully manage people and resources in a dynamic, globalized workplace.
Recommended Textbook
Contemporary Business 2nd Canadian Edition by Louis E. Boone
Available Study Resources on Quizplus
17 Chapters
3207 Verified Questions
3207 Flashcards
Source URL: https://quizplus.com/study-set/3988 Page 2
Chapter 1: The Changing Face of Business
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/80098
Sample Questions
Q1) Since smaller companies are more flexible than larger companies, they are able
A) to change their products and process quickly than larger companies.
B) to employ the most competent employees.
C) to raise more funds for the operations.
D) to use improved technology in their operations.
Answer: A
Q2) Today, workers are much less likely to remain with the same employer throughout their entire careers.
A)True
B)False
Answer: True
Q3) In order to remain viable, not-for-profit organizations need to focus on profits even more than the public service they provide.
A)True
B)False
Answer: False
Q4) Canada functions under the private enterprise system.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Business Ethics and Social Responsibility
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/80099
Sample Questions
Q1) Ethical ___ charges each employee personally to uphold the company's core values and be willing to base their actions on them.
A) leadership
B) awareness
C) action
D) reasoning
Answer: A
Q2) ___ investigate suspicions of unethical or illegal behaviours by publicly traded companies in order to protect investors.
A) Stock market regulators
B) Provincial securities regulators
C) Company lawyers
D) Shareholders
Answer: B
Q3) Although social responsibility in a business is commendable, most companies are NOT judged by their interactions within the community.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Economic Challenges Facing Contemporary Business
Available Study Resources on Quizplus for this Chatper
220 Verified Questions
220 Flashcards
Source URL: https://quizplus.com/quiz/80100
Sample Questions
Q1) If the price of Coke decreases and that of Pepsi stays the same, the demand curve for Pepsi will shift to the ______ and the price will ______.
A) right; fall
B) right; rise
C) left; fall
D) left; rise
Answer: C
Q2) A shortage will occur when ______.
A) production quantities are rising
B) prices are falling
C) prices are below the equilibrium point
D) the demand curve is shifting to the left
Answer: C
Q3) The business cycle provides an indication of economic health of an economy.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Competing in World Markets
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/80101
Sample Questions
Q1) Explain at least three nontariff barriers and their impact on international trade.
Q2) By allowing a company to purchase another existing firm in the host country, a(n) ______ permits a largely domestic business to gain an international presence very quickly.
A) acquisition
B) foreign licensing agreement
C) joint venture
D) countertrade
Q3) Allison, a Canadian citizen, travels to Europe and spends $2,000 on souvenirs. She is contributing to the ______.
A) Canadian trade surplus
B) Canadian balance of payments deficit
C) Canadian balance of payments surplus
D) growing exchange rate
Q4) A country's trade balance is determined by comparing the total amount of its exports to its imports.
A)True
B)False
Q5) Why have Canadian firms become increasingly focused on international business?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Forms of Business Ownership and Organization
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/80102
Sample Questions
Q1) During a(n) ______, two or more firms combine to form one company.
A)sole proprietorship
B)small business
C)corporation
D)merger
E)acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)closed corporation
M)preferred stock
N)franchising
Q2) A corporation's assets and liabilities are separate from those of its owners.
A)True
B)False
Q3) Compare and contrast the three forms of business ownership.
Q4) Explain how small businesses create new industries.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Starting Your Own Business: the Entrepreneurship Alternative
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/80103
Sample Questions
Q1) Kayla is opening a home health care business that she knows will do well in her community based on prior research. Although she must repay borrowed funds, Kayla chooses ______ to maintain complete control over the business without having to answer to investors or partners.
A) debt financing
B) venture financing
C) sole proprietor financing
D) equity financing
Q2) Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.
A)True
B)False
Q3) Although entrepreneurs can reap huge profits, job seekers would be better off looking to large corporations for employment opportunities.
A)True
B)False
Q4) About 35 percent of large firms do set aside funds to support intrapreneurship.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Management, Leadership, and the Internal Organization
Available Study Resources on Quizplus for this Chatper
202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/80104
Sample Questions
Q1) Distinguish among autocratic, democratic, and free-rein leadership.
Q2) Damien is working on a project where he needs to anticipate future events and conditions, as well as avoid costly mistakes. Damien is engaged in the ______ managerial function.
A) controlling
B) planning
C) organizing
D) directing
Q3) A willingness to experiment is usually too risky for effective leadership.
A)True
B)False
Q4) Describe competitive differentiation. Provide possible examples of competitive differentiation.
Q5) Kiki strongly believes that college students need credit counselling, so she begins a not-for-profit organization devoted to this need. Kiki is exhibiting ______.
A) strategic planning
B) the organizing function of management
C) vision
D) strategic management
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Human Resource Management: From
Recruitment to Labour Relations
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/80105
Sample Questions
Q1) Cesar Chavez and the United Farm Workers Union used a ______ to encourage the public NOT to buy grapes grown with pesticides.
A) strike
B) walkout
C) lockout
D) boycott
Q2) Flextime is a scheduling system that allows employees to select the day of the week on which they will work.
A)True
B)False
Q3) Explain Maslow's hierarchy of needs and how an individual is motivated at each level.
Q4) Federal labour legislation requires that firms provide employees with health insurance and childcare facilities.
A)True
B)False
Q5) Theory Y managers believe that workers avoid work when possible.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Top Performance Through Empowerment,
Teamwork, and Communication
Available Study Resources on Quizplus for this Chatper
189 Verified Questions
189 Flashcards
Source URL: https://quizplus.com/quiz/80106
Sample Questions
Q1) Evan 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. Evan calls back his manager for the complete message since he CANNOT effectively communicate with this type of
A) conflict
B) grapevine
C) noise
D) nonverbal communication
Q2) ______ percent of the typical manager's day is spent engaged in communications.
A) Less than 25
B) About 50
C) About 75
D) More than 75
Q3) Lisa works for an advertising agency and has presented her client with ideas for new commercials. After the presentation Lisa asks for ______ to determine if the clients correctly understood her message.
A) a channel
B) a decoded message
C) less noise
D) feedback
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Production and Operations Management
Available Study Resources on Quizplus for this Chatper
203 Verified Questions
203 Flashcards
Source URL: https://quizplus.com/quiz/80107
Sample Questions
Q1) Florida Fixtures uses a computer system that controls the entire production function from designing products to ordering raw materials. What kind of production system is Florida Fixtures using?
A) flexible manufacturing system
B) computer-aided design
C) computer-integrated manufacturing
D) computer-aided manufacturing
Q2) A production system that reduces a raw material to its component parts in order to extract one or more marketable products is a(n) ______ production system.
A) synthetic
B) intermittent
C) analytic
D) flexible
Q3) John & Co. uses ______ software to develop a real product and display it in three-dimensional graphics.
A) computer-aided manufacturing
B) application
C) computer-aided design
D) operations
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Customer-Driven Marketing
Available Study Resources on Quizplus for this Chatper
202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/80108
Sample Questions
Q1) Desmond is developing several different marketing strategies based on target markets that differ in terms of lifestyles. He is segmenting the overall market by ______.
A) demographics
B) end-use
C) psychographics
D) product
Q2) Which of the following is the first step in developing a marketing strategy?
A) Identify a target market.
B) Develop the right product.
C) Decide how to promote the product.
D) Implement the appropriate distribution system.
Q3) Personal determinants in the buying decision include all of the following EXCEPT ______.
A) needs and motives
B) perception and attitudes
C) learning and self-concept
D) cultural experiences
Q4) Define 'consumer behaviour'.
Q5) Describe the consumer market segmentations.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Product and Distribution Strategies
Available Study Resources on Quizplus for this Chatper
222 Verified Questions
222 Flashcards
Source URL: https://quizplus.com/quiz/80109
Sample Questions
Q1) Consumer products are usually classified as ______.
A) expense items and capital items
B) convenience products and expense items
C) convenience products, shopping products, and specialty products
D) capital items, convenience items, and specialty products
Q2) Why is it important to consider the physical distribution of product to customers?
Q3) Which of the following is a reason why some firms skip test marketing?
A) Test marketing can alert competitors to a company's plans.
B) Test marketing is conducted only in selected regions.
C) Competitors can skew results by lowering prices or running special promotions.
D) Test marketing allows a company to determine the product's performance in full-scale production.
Q4) One advantage of Internet retailing is that adding a large product mix to a website is less costly than making room on a store's shelves.
A)True
B)False
Q5) Explain the wheel of retailing.
Q6) Describe methods used to extend life cycle of a product.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Promotion and Pricing Strategies
Available Study Resources on Quizplus for this Chatper
197 Verified Questions
197 Flashcards
Source URL: https://quizplus.com/quiz/80110
Sample Questions
Q1) Missionary selling is used for selling goods whose benefits are NOT readily apparent.
A)True
B)False
Q2) Competitive pricing focuses on ______.
A) variable pricing
B) penetration pricing
C) the marketing mix
D) skimming pricing
Q3) Assume a product costs $5 each. The variable cost per unit is currently $4, and fixed costs are $25,000. If the company can alter its production method such that variable costs fall to $3.50 and fixed costs rise to $30,000, what will happen to the breakeven point?
A) It will fall.
B) It will rise.
C) It will remain the same.
D) It will rise and fall later.
Q4) What is sales promotion? Give some examples of common sales promotion techniques.
Q5) Briefly discuss what is meant by the price-quality relationship.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Using Technology to Manage Information
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/80111
Sample Questions
Q1) Today, ______ make information access and information transmission work very smoothly.
A) specialized networks
B) gathering of data
C) implementation of information systems
D) training of employees on information systems
Q2) A large organization typically assigns responsibility for managing its information systems and related operations to an executive called the chief information officer (CIO).
A)True
B)False
Q3) Provide examples of ethical concerns regarding technology and information systems.
Q4) Application software controls the basic workings of a computer system.
A)True
B)False
Q5) A server supports applications and allows networked users to share output devices, software, and databases.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Understanding Accounting and Financial Statements
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/80112
Sample Questions
Q1) Which of the following are NOT users of accounting information within an organization?
A) managers
B) union officials
C) it personnel
D) consumer groups
Q2) Describe the purpose of budgets in a business.
Q3) Financing activities focus on providing valuable assets required to run a business.
A)True
B)False
Q4) A firm's acid-test ratio can NEVER be higher than its current ratio.
A)True
B)False
Q5) Which of the following current assets is NOT included when calculating the acid-test ratio?
A) Cash
B) Marketable securities
C) Inventory
D) Accounts receivable
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: The Financial System
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/80113
Sample Questions
Q1) One of the largest stock exchange outside the United States is the ______.
A) London stock exchange
B) New York Stock Exchange (NYSE)
C) Canadian Stock Exchange (TSX)
D) Hong Kong Stock Exchange
Q2) Which of the following are examples of municipal bonds?
A) government bonds
B) provincial government bonds issued in Ontario
C) secured bonds
D) unsecured bonds
Q3) If the Bank of Canada reduced reserve requirements, ______.
A) banks would have less money to lend businesses and consumers
B) interest rates would fall
C) inflation would decline
D) economic growth would decline
Q4) When a company offers stock for sale to the general public for the first time, it is called an initial public offering.
A)True
B)False
Q5) Describe stock markets and identify two well-known stock markets.
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Financial Management
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/80114
Sample Questions
Q1) ______ is NOT a source of short-term funding.
A) Trade credit
B) Short-term loans from financial institutions
C) Commercial paper
D) Bonds issued to investors
Q2) There are two types of divestitures: selloffs and spinoffs. For selloffs, a new firm is created from the assets divested.
A)True
B)False
Q3) Commercial paper is the least desirable financing option.
A)True
B)False
Q4) Marketable securities are ______.
A) low-risk securities that either have short maturities or can be easily sold in secondary market
B) low-risk securities that either have short maturities or cannot be easily sold in secondary market
C) high-risk securities that have short maturities
D) high-risk securities that can be easily sold in secondary market
To view all questions and flashcards with answers, click on the resource link above. Page 19