Business Exam

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Question 1

1. Which of the following would be classified as opportunities for an organization?

government regulation of the organization’s services

highly unionized workers in the organization’s industry

new competitors

stronger demand for the organization’s services

economy fluctuations

2 points

Question 2

1. What are an organization’s specialists in law, accounting, and human resource management commonly called?

profit centers

cost centers

staff members

line members

unit managers

2 points

Question 3

1. Which of the following is NOT considered an organizational strength?

strong market position

dedicated work force

changing consumer tastes

technical expertise

recognized customer relation management

2 points

Question 4

1. According to Maslow’s model, a set of needs will be a motivator until which of the following occurs?

The needs are satisfied.

New needs are identified.

The person becomes self-motivated.

A supervisor changes the work.

The needs are replaced by hygiene factors.

2 points

Question 5

1. Which part of the management of an organization would be MOST involved with strategic leadership?

the top level of management

the supervisory level of management

the advisory level of management

the auxiliary level of management

all levels of management

2 points

Question 6

1. When conducting a SWOT analysis of an organization, which question can help management brainstorm for the weaknesses section of the analysis?

What external changes present interesting possibilities?

What aspect of the organization’s vision can be altered?

What necessary skills do the organization’s employees currently lack?

What does the organization offer that makes it stand out from other organizations?

What external economic forces can affect the organization’s bottom line?

2 points

Question 7

1. Which of the following BEST describes functional strategy?

a strategy for determining the firm’s overall attitude toward growth and the way it will manage its businesses or product lines

a strategy at the business-unit or product-line level that focuses on improving a firm’s competitive position

a strategy by which managers in specific areas decide how best to achieve corporate goals through productivity

a strategy that assists first-line managers in making day-to-day decisions about motivating employees

a strategy that integrates an organization’s marketing goals into a cohesive whole by focusing on the ideal product mix to achieve maximum profit potential

2 points

Question 8

1. Recent corporate scandals at firms like Enron have brought increased attention to what area of leadership?

virtual leadership

ethical leadership

strategic leadership

employee-focused leadership

charismatic leadership

2 points

Question 9

1. What was a major problem with the trait approach to leadership?

The results were too innovative and thus were not taken seriously at the time.

The results were too inconsistent and thus not very practical.

The results were not very inspiring and thus ignored.

The results were found to be too pessimistic and thus were dismissed as useless.

The results were too worshipful of certain leaders and thus were dismissed as irrelevant.

2 points

Question 10

1. Which of the following BEST describes scientific management?

a theory of motivation holding that job satisfaction depends on two factors, hygiene and motivation

a theory of motivation holding that people are motivated to work toward rewards that they want and that they have a reasonable chance of obtaining

a theory of motivation holding that people evaluate their treatment by the organization relative to the treatment of others

a theory of motivation holding that managers should analyze jobs to find the most efficient methods and use money as a primary motivator

a theory of motivation that people will work more productively as long as they receive some kind of attention from management

2 points

Question 11

1. Michelle has been working at AdCo for five years. The company recently hired a new college graduate to work in a position very similar to Michelle’s position. In a casual conversation with the new hire, Michelle discovers that the new employee is making $4,000 more annually than she is. What might Michelle’s reaction be?

Michelle may feel that the psychological contract has been broken.

Michelle may feel that her job description no longer applies.

Michelle may feel that her supervisor is not empathetic.

Michelle may feel that her person-job fit cannot be improved.

Michelle may feel that she has benefitted from the Hawthorne effect.

2 points

Question 12

1. Which factor plays a key role in determining an organization’s structure?

competition and technology

location and life-cycle stage

profitability and leverage

research and development

mission and strategy

2 points

Question 13

1. What is the Hawthorne effect?

the belief that employees are motivated by money alone

the conclusion that workers are more productive if management pays attention to them

the determination that the level of lighting in a workplace has no effect on productivity

the theory that workers are more productive if their jobs are analyzed closely

the unspoken agreement between the employee and the employer

2 points

Question 14

1. Which of the following is the set of expectations held by employees and the organization regarding what the employee will contribute and what he or she will receive?

psychological contract

nondisclosure agreement

job satisfaction

mutual commitment

self expression

2 points

Question 15

1. Which of the following managers are directly responsible for getting products from producers to consumers?

human resource managers

public relations managers

information managers

marketing managers

financial managers

2 points

Question 16

1. Which of the following theories focuses on people evaluating their treatment by the organization relative to the treatment of others?

equity theory

hierarchy of needs

expectancy theory

goal-setting theory

X and Y theory

2 points

Question 17

1. What do managers do when the “job” of a firm is broken down into smaller jobs?

fragment the task

specialize the job

respond to the job

assign the task

control the job

2 points

Question 18

1. Doreen Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of what function of the management process?






2 points

Question 19

1. Which variable of SWOT analysis identifies changing consumer tastes, hostile takeover offers, and new government regulations?




internal factors


2 points

Question 20

1. Which of the following refers to a person’s ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present situation?

human relations skills

decision-making skills

conceptual skills

production skills

technical skills

2 points

Question 21

1. With relatively few layers of managers, what do decentralized organizations tend to reflect?

tall organizational structure

short organizational structure

flat organizational structure

elliptical organizational structure

triangular organizational structure

2 points

Question 22

1. Which of the following might you, as a manager, expect to see in an employee who has a low degree of conscientiousness?

a tendency to be unprepared at meetings

an inability to work in a team setting

a tendency toward mood swings

a high level of comfort with other people

an ability to meet deadlines without fail

2 points

Question 23

1. Which of the following BEST describes the effects of leadership neutralizers in an organization?

They tend to make leader behavior ineffective.

They tend to make leaders more charismatic.

They tend to outweigh the need for leader behavior.

They tend to make managers become effective leaders.

They tend to make leaders more neutral toward employees.

2 points

Question 24

1. Which description identifies the controlling function of the management process?

guiding and motivating employees to meet organizational objectives

determining how to arrange a firm’s resources into a coherent structure

scanning the business environment for threats and opportunities

monitoring a firm’s performance to ensure that it is meeting its goals

determining what an organization needs to do and how best to get it done

2 points

Question 25

1. Hewlett-Packard decides to move toward a more centralized structure. This is an example of which function in the management process?






2 points

Question 26

1. Which statement about organizational structure is TRUE?

Decentralized firms tend to have many layers of management.

As a company gets larger, it tends to adopt a decentralized structure.

The purpose of centralization is to make a company more responsive to a changing, complex environment.

In a centralized organization, most decision-making authority is held by lower-level managers.

Decentralized companies must change to centralized structures in response to unpredictable environments.

2 points

Question 27

1. Steve motivates employees by rewarding them with additional vacation when standards are achieved. This is an example of which function in the management process?






2 points

Question 28

1. Which of the following do organizations need in order to be effective?

more leadership than management

more management than leadership

both leadership and management

either leadership or management

neither leadership nor management

2 points

Question 29

1. What is the power to make the decisions necessary to complete a task called?






2 points

Question 30

1. What kind of organization becomes more responsive to its environment by breaking the company into more manageable units?





brand conscious

2 points

Question 31

1. Which of the following is an advantage of job specialization?

Workers can develop expertise in their jobs.

Workers will not need to be trained.

Jobs become more interesting.

Workers derive more satisfaction from their jobs.

Jobs do not need to be redefined.

2 points

Question 32

1. Which would an employee who is productive but refuses to help others or the organization be lacking in?

organizational citizenship

workplace aggression

performance behavior

personal productivity


2 points

Question 33

1. If an employee needs to feel that she is a part of a team and yet her position involves working alone, which of the following may not be right?

the pay scale

the person-job fit

the employee’s attitude

the organization’s plan

the team structure

2 points

Question 34

1. All American Burger is a nationwide fast food chain that competes with McDonald’s, Burger King, and Wendy’s. Management at All American Burger is debating whether to have a more centralized or a more decentralized organizational structure.

Which of the following decisions would likely be made by a centralized authority?

What are the procedures All American Burger should use to ensure food safety?

If All American Burger wishes to recruit current students for entry-level management positions, which colleges and universities should All American Burger choose?

How should a regional division spend the money in its advertising budget?

What special menu items should be offered in order to encourage new customers?

Should marketing focus on bringing in new customers or taking customers from the competition?

2 points

Question 35

1. Which of the following is TRUE about corporate culture?

It can direct employees’ efforts toward goals.

It is usually determined by outside forces.

It cannot be changed.

It is easy to change.

It rarely affects newcomers in an organization.

2 points

Question 36

1. In tall organizations, which feature describes the span of control?






2 points

Question 37

1. Which of the following is the name for choosing one alternative from among several options?

decision making





2 points

Question 38

1. What is MOST useful about Theory X and Theory Y?

They shed light on managers’ attitudes toward employees.

They provide a useful blueprint for taking action.

They help managers better understand employees.

They accurately depict the attitude of employees at work.

They support management decisions and plans.

2 points

Question 39

1. Which of the following works to achieve a more satisfactory fit between workers and their jobs?

job redesign

team management


participative management

person-position fitting

2 points

Question 40

1. Whereas managers focus on plans, results, and goals, what do leaders focus on?






2 points

Question 41

1. In what type of organization is decision-making authority delegated to levels of management at various points below the top?






2 points

Question 42

1. The norms of the engineering group at Acme Incorporated are so strong that there is nothing the new company leader can do to change things. What does this illustrate?

leadership charisma

leadership neutralizers

leadership substitutes

leadership mandates

leadership amplifiers

2 points

Question 43

1. Firms with what structure are structured around departments for each basic business action?

divisional structure

matrix structure

functional structure

international structure

regional structure

2 points

Question 44

1. Thomas Corp. has three basic departments: children’s books, games, and toys. What type of structure does the company have?






2 points

Question 45

1. Which term refers to the specification of jobs to be done within an organization and the ways in which those jobs relate to one another?


a mission statement

job specialization

role responsibility

organizational structure

2 points

Question 46

1. Douglas believes that his employees are self-motivated and growth-oriented. He is what type of manager?

Theory Y

Theory X



2 points

Question 47

1. What is the first step in rational decision making?

understanding who will make the decision

recognizing that a decision is necessary

identifying alternatives to the problem

choosing an alternative

implementing the alternative

2 points

Question 48

1. At Ace Products, three vice presidents report to the CEO, including the VP for Finance, the VP for Marketing, and the VP for Operations. What type of structure does Ace Products have?






2 points

Question 49

1. Tina is the most productive employee in her department. When her manager retires, Tina doesn’t apply for the job, in spite of her excellent record and the pay and prestige associated with the job. She believes that the job will go to someone who has more seniority. Based on expectancy theory, which would explain why Tina doesn’t apply for the job?

the effort-performance issue

the rewards-personal goals issue

the performance-reward issue

her personal goals

her family demands

2 points

Question 50

1. Camille Graham is a manager who works well with people and makes them feel excited about their work. What type of skills is she illustrating?

human relations skills

technical skills

accounting skills

conceptual skills

marketing skills

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