TB ch01

Chapter 1MANAGEMENT AND ENTREPRENEURSHIP
TRUE/FALSE (Concepts)
1. A manager is responsible for achieving organizational objectives through efficient and effective
utilization of personal ability.
ANS: F
OBJ: 1-1 C
PTS: 1
DIF: Moderate
REF: p. 4
NAT: AACSB Reflective Thinking | Management Leadership Principles
2. A manager is responsible for achieving organizational objectives through efficient and effective
utilization of resources.
ANS: T
OBJ: 1-1 C
PTS: 1
DIF: Easy
REF: p. 4
3. The managers resources are human, financial, and physical.

ANS: F
OBJ: 1-1 C
PTS: 1
DIF: Moderate
REF: p. 4
4. The level of organizational performance is unrelated to how effectively and efficiently managers
utilize resources to achieve objectives.
ANS: F
OBJ: 1-1 C
PTS: 1
DIF: Easy
REF: p. 6
5. In a Wall Street Journal Gallup survey, top executives identified leadership ability as the most
important trait for successful managers.
ANS: F
OBJ: 1-1 C
PTS: 1
DIF: Moderate
REF: p. 7
6. A manager needs technical, interpersonal, and decision-making skills.

ANS: T
OBJ: 1-2 C
PTS: 1
DIF: Moderate
REF: p. 8
7. The three skills that managers need are technical, interpersonal, and analytical skills.
ANS: F
OBJ: 1-2 C
PTS: 1
DIF: Hard
REF: p. 8
8. Technical skills involve the ability to use methods and techniques to perform a task.
ANS: T
OBJ: 1-2 C
PTS: 1
DIF: Moderate
REF: p. 8
Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e
9. Interpersonal skills involve the ability to understand, communicate, and work well with individuals
and groups through developing effective relationships.
ANS: T
OBJ: 1-2 C
PTS: 1
DIF: Moderate
REF: p. 8
10. Interpersonal skills are based on strong conceptual skills.

ANS: F
OBJ: 1-2 C
PTS: 1
DIF: Easy
REF: p. 9
11. Decision-making skills are based on the ability to conceptualize situations and select alternatives to
solve problems and take advantage of opportunities.
ANS: T
OBJ: 1-2 C
PTS: 1
DIF: Easy
REF: p. 9
12. The four management functions are planning, organizing, leading, and controlling.
ANS: T
OBJ: 1-3 C
PTS: 1
DIF: Easy
REF: p. 11
13. There are three basic management functions.

ANS: F
OBJ: 1-3 C
PTS: 1
DIF: Easy
REF: p. 11
14. Planning is typically the second step in the management process.

ANS: F
OBJ: 1-3 C
PTS: 1
DIF: Easy
REF: p. 11
15. Organizing is the process of delegating and coordinating tasks and allocating resources to achieve
objectives.
ANS: T
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
16. Leading is the process of ordering employees to perform particular tasks.

ANS: F
OBJ: 1-3 C
PTS: 1
DIF: Hard
REF: p. 11
17. Controlling is the process of establishing and implementing mechanisms to ensure that objectives are
achieved.
ANS: T
OBJ: 1-3 C
PTS: 1
DIF: Easy
REF: p. 11
Chapter 1: Management and Entrepreneurship
18. The three management role categories are interpersonal, informational, and decisional roles.
ANS: T
OBJ: 1-4 C
PTS: 1
DIF: Moderate
REF: p. 12
19. The three levels of management are top managers, middle managers, and nonmanagement operative
employees.
ANS: F
OBJ: 1-5 C
PTS: 1
DIF: Easy
REF: p. 15
20. There are basically four levels of management.

ANS: F
OBJ: 1-5 C
PTS: 1
DIF: Easy
REF: p. 15
21. General, functional, and project managers perform basically the same tasks.
ANS: F
OBJ: 1-6 C
PTS: 1
DIF: Easy
REF: p. 16
22. All three levels of management use all three management skills to some degree.
ANS: T
OBJ: 1-7 C
PTS: 1
DIF: Moderate
REF: p. 17
23. Different functions, skills, and roles can be expected when managing in a for-profit organization
versus managing in a not-for-profit organization.
ANS: F
OBJ: 1-7 C
PTS: 1
DIF: Hard
REF: p. 18
24. One difference between a managers job in for-profit organizations versus not-for-profit organizations
is that the primary measure of performance in for-profit organizations is bottom-line profit.
ANS: T
OBJ: 1-7 C
PTS: 1
DIF: Moderate
REF: p. 19
25. Learning organizations have everyone engaged in identifying and solving problems, enabling change,
and continuous improvement.
ANS: T
OBJ: 1-7 C
PTS: 1
DIF: Moderate
REF: p. 19
26. Knowledge management involves everyone in an organization in sharing knowledge and applying it to
continuously improve products and processes.
ANS: T
OBJ: 1-7 C
PTS: 1
DIF: Easy
REF: p. 19
27. Intrapreneurs commonly start a new small business venture, while entrepreneurs commonly start a new
line of business within a large organization.
ANS: F
OBJ: 1-8 C
PTS: 1
DIF: Hard
REF: p. 21
NAT: AACSB Reflective Thinking | Management Creation of Value
28. A small business is defined as a company that is publicly owned and operated, with a small number of
employees and relatively low volume of sales.
ANS: F
OBJ: 1-8 C
PTS: 1
DIF: Moderate
REF: p. 21
29. Intrapreneurs commonly have more risk than entrepreneurs.

ANS: F
OBJ: 1-8 C
PTS: 1
DIF: Hard
REF: p. 21
30. Much of the creativity and innovation in society comes from entrepreneurs.
ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 22
31. Large businesses commonly acquire small businesses to gain innovations.

ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Moderate
REF: p. 22
32. Small businesses are the primary suppliers and distributors of products for large businesses.
ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 22
33. The first step to entrepreneurship is to select the new venture or the industry in which the business will
compete.
ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 23
34. Nearly half of new venture ideas stem from previous work experience.
ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Hard
REF: p. 23
35. A competitive advantage specifies how an organization offers unique customer value.
ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 23
36. A first-mover advantage specifies how an organization offers unique customer value.
ANS: F
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 23
37. A first-mover advantage refers to offering a unique customer value before competitors do so.
ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 23
38. When a company offers a unique customer value before competitors do so, its referred to as a firstmover advantage.
ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Hard
REF: p. 23
39. A business plan is a written description of a new ventureits objectives and the steps for achieving
them.
ANS: T
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 23
40. There are very few Web sites dedicated to providing information related to developing a business plan.
ANS: F
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 25
MULTIPLE CHOICE (Concepts)

1. A manager is responsible for achieving:
a. his or her objectives for the organization.
b. the objectives established by governmental leaders.
c. the organizations objectives.
d. the objectives which are common to the managers industry.
ANS: C
OBJ: 1-1 C
PTS: 1
DIF: Easy
REF: p. 4
2. A manager is responsible for achieving organizational objectives through:

a. controlling the process.
b. efficient and effective utilization of resources.
c. planning and controlling.
d. personal effort.
ANS: B
OBJ: 1-1 C
PTS: 1
DIF: Moderate
REF: p. 4
3. A manager is responsible for:

a. setting organizational objectives.
b. determining organizational needs.
c. achieving organizational objectives.
d. administering discipline in the workplace.
ANS: C
OBJ: 1-1 C
PTS: 1
DIF: Easy
REF: p. 4
4. Which of the following is the best example of being efficient?

a. doing more than others
b. doing more than in the past
c. doing things right
d. doing the right thing
ANS: C
OBJ: 1-1 C
PTS: 1
DIF: Moderate
REF: p. 4
5. Which of the following is the best example of being effective?

a. doing more than others
b. doing more than in the past
c. doing things right
d. doing the right thing
ANS: D
OBJ: 1-1 C
PTS: 1
DIF: Moderate
REF: p. 4
6. All of the following are managers resources EXCEPT:

a. human resources.
b. financial resources.
c. physical resources.
d. technical resources.
ANS: D
OBJ: 1-1 C
PTS: 1
DIF: Easy
REF: p. 4
7. The level of organizational performance is based on:

a. how effectively and efficiently managers utilize resources to achieve objectives.
b. how well efforts are coordinated.
c. the innate ability of employees.
d. how well a manager stays within the budget.
ANS: A
OBJ: 1-1 C
PTS: 1
DIF: Moderate
REF: p. 6
8. Which of the following are requisite management skills?

a. technical skills
b. interpersonal skills
c. decision-making skills
d. all of these
ANS: D
OBJ: 1-2 C
PTS: 1
DIF: Easy
REF: p. 8
9. All the following are management skills EXCEPT:

a. technical skills.
b. interpersonal skills.
c. psychological skills.
d. decision-making skills.
ANS: C
OBJ: 1-2 C
PTS: 1
DIF: Moderate
REF: p. 8
10. __________ skills involve the ability to use methods and techniques to perform a task.
a. Decision-making
b. Interpersonal
c. Technical
d. Communication
ANS: C
OBJ: 1-2 C
PTS: 1
DIF: Moderate
REF: p. 8
11. Which of the following statements is TRUE regarding technical skills?

a. Managers need only skills regarding people; subordinates do all the technical work.
b. Most employees are promoted to their first management position primarily because of
their technical skills.
c. Technical skills are used mostly by top management.
d. Technical skills are used mostly by middle management.
ANS: B
OBJ: 1-2 C
PTS: 1
DIF: Hard
REF: p. 8
12. __________ skills involve the ability to understand, communicate, and work well with individuals and
groups through developing effective relationships.
a. Interpersonal
b. Decision-making
c. Technical
d. Team-building
ANS: A
OBJ: 1-2 C
PTS: 1
DIF: Easy
REF: p. 8
13. The ability to conceptualize situations and select alternatives to solve problems and take advantage of
opportunities is:
a. technical skills.
b. interpersonal skills.
c. decision-making skills.
d. the classical decision-making model.
ANS: C
OBJ: 1-2 C
PTS: 1
DIF: Moderate
REF: p. 9
14. According to Ghiselli, the number-one trait that contributes to successful management is:
a. intelligence.
b. self-assurance.
c. decisiveness.
d. supervisory ability.
ANS: D
OBJ: 1-2 C
PTS: 1
DIF: Moderate
REF: p. 10
15. The four management functions are:

a. planning, organizing, supervising, and controlling.
b. planning, organizing, leading, and feedback.
c. planning, directing, leading, and controlling.
d. planning, organizing, leading, and controlling.
ANS: D
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
16. __________ is the process of setting objectives and determining in advance exactly how the objectives
will be met.
a. Organizing
b. Leading
c. Controlling
d. Planning
ANS: D
OBJ: 1-3 C
PTS: 1
DIF: Hard
REF: p. 11
17. __________ is the process of delegating and coordinating tasks and allocating resources to achieve
objectives.
a. Organizing
b. Planning
c. Controlling
d. Leading
ANS: A
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
18. The management function of __________ involves delegating and coordinating tasks and allocating
resources to achieve objectives.
a. controlling
b. organizing
c. leading
d. planning
ANS: B
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
19. An important part of __________ is staffing.

a. planning
b. controlling
c. leading
d. organizing
ANS: D
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
20. __________ is the process of influencing employees to work toward achieving objectives.
a. Organizing
b. Controlling
c. Planning
d. Leading
ANS: D
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
21. The management function of __________ involves influencing employees to work toward achieving
objectives.
a. planning
b. organizing
c. leading
d. controlling
ANS: C
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
22. __________ is the process of establishing and implementing mechanisms to ensure that objectives are
achieved.
a. Leading
b. Planning
c. Controlling
d. Organizing
ANS: C
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
23. The management function of __________ involves establishing and implementing mechanisms to
ensure that objectives are achieved.
a. controlling
b. leading
c. organizing
d. planning
ANS: A
OBJ: 1-3 C
PTS: 1
DIF: Moderate
REF: p. 11
10
24. A management role is:

a. based on the managers supervisor ability.
b. a set of expectations of how one will behave in a given situation.
c. performed by top management only.
d. performed by middle management only.
ANS: B
OBJ: 1-4 C
PTS: 1
DIF: Hard
REF: p. 12
25. All of the following are management role categories EXCEPT:

a. interpersonal roles.
b. informational roles.
c. decisional roles.
d. technical roles.
ANS: D
OBJ: 1-4 C
PTS: 1
DIF: Moderate
REF: p. 12
26. The three management role categories are:

a. interpersonal roles, informational roles, and decisional roles.
b. interpersonal roles, operational roles, and decisional roles.
c. interpersonal roles, informational roles, and operational roles.
d. external roles, informational roles, and decisional roles.
ANS: A
OBJ: 1-4 C
PTS: 1
DIF: Moderate
REF: p. 12
27. Which of the following is an example of a managerial interpersonal role?

a. figurehead
b. disseminator
c. disturbance handler
d. negotiator
ANS: A
OBJ: 1-4 C
PTS: 1
DIF: Hard
REF: p. 12
28. In training others, one is performing a __________ role.

a. leader
b. liaison
c. figurehead
d. spokesperson
ANS: A
OBJ: 1-4 C
PTS: 1
DIF: Hard
REF: p. 12
29. Which of the following is an example of a managerial informational role?

a. leader
b. liaison
c. monitor
d. negotiator
ANS: C
OBJ: 1-4 C
PTS: 1
DIF: Hard
REF: p. 13
30. Which of the following is an example of a managerial decisional role?

a. leader
b. spokesperson
c. monitor
d. negotiator
ANS: D
OBJ: 1-4 C
PTS: 1
DIF: Hard
REF: p. 13
31. There are __________ levels of management.

a. two
b. three
c. four
d. five
ANS: B
OBJ: 1-5 C
PTS: 1
DIF: Easy
REF: p. 15
32. The three levels of management are:

a. top managers, middle managers, and nonmanagement operative employees.
b. top managers, middle managers, and first-line managers.
c. executives, middle managers, and nonmanagement operative employees.
d. executives, middle managers, and first-line managers.
ANS: B
OBJ: 1-5 C
PTS: 1
DIF: Moderate
REF: p. 15
33. The three types of managers are:

a. general managers, functional managers, and project managers.
b. general managers, functional managers, and specific managers.
c. functional managers, project managers, and specific managers.
d. functional managers, project managers, and staff managers.
ANS: A
OBJ: 1-6 C
PTS: 1
DIF: Moderate
REF: p. 16
34. Which of the following is NOT a type of manager?

a. general manager
b. functional manager
c. project manager
d. conceptual manager
ANS: D
OBJ: 1-6 C
PTS: 1
DIF: Moderate
REF: p. 16
11
12
35. A general manager:

a. coordinates employees and other resources across several functional departments to
accomplish a specific task.
b. supervises the activities of several departments that perform different activities.
c. supervises activities in areas such as marketing, operations/production,
finance/accounting, and human resources/personnel management.
d. is another name for top management.
ANS: B
OBJ: 1-6 C
PTS: 1
DIF: Moderate
REF: p. 16
36. Middle managers are:

a. general managers.
b. functional managers.
c. project managers.
d. both general and functional managers.
ANS: D
OBJ: 1-6 C
PTS: 1
DIF: Moderate
REF: p. 16
37. A functional manager:

a. coordinates employees and other resources across several functional departments to
accomplish a specific task.
b. supervises the activities of several departments that perform different activities.
c. supervises activities in areas such as marketing, operations/production,
finance/accounting, and human resources/personnel management.
d. supervises nonmanagement operative employees only.
ANS: C
OBJ: 1-6 C
PTS: 1
DIF: Moderate
REF: p. 16
38. Which of the following statements is TRUE regarding the primary management skills needed by toplevel managers?
a. They have a greater need for technical and decision-making skills.
b. They have a greater need for technical and interpersonal skills.
c. They have a greater need for decision-making and interpersonal skills.
d. They tend to have a balanced need for technical, interpersonal, and decision-making skills.
ANS: C
OBJ: 1-7 C
PTS: 1
DIF: Moderate
REF: p. 17
39. The hierarchy of skills managers need, starting with first-line managers, is:
a. technical skills, decision-making skills, and interpersonal skills.
b. interpersonal skills, technical skills, and decision-making skills.
c. technical skills, interpersonal skills, and decision-making skills.
d. interpersonal skills, decision-making skills, and technical skills.
ANS: C
OBJ: 1-7 C
PTS: 1
DIF: Hard
REF: p. 17
13
40. In comparison to top and middle managers, first-line managers spend more time __________ and
__________.
a. planning; organizing
b. leading; controlling
c. organizing; controlling
d. planning; leading
ANS: B
OBJ: 1-7 C
PTS: 1
DIF: Moderate
REF: p. 17
41. __________ involves everyone in an organization in sharing knowledge and applying it to

continuously improve products and processes.
a. Learning
b. Quality
c. Knowledge management
d. Diversity
ANS: C
OBJ: 1-7 C
PTS: 1
DIF: Easy
REF: p. 19
42. __________ commonly start a new small business venture.

a. Venture capitalists
b. Entrepreneurs
c. Intrapreneurs
d. Extrapreneurs
ANS: B
OBJ: 1-8 C
PTS: 1
DIF: Moderate
REF: p. 21
43. __________ commonly start a new line of business within a large organization.
a. Venture capitalists
b. Entrepreneurs
c. Intrapreneurs
d. Extrapreneurs
ANS: C
OBJ: 1-8 C
PTS: 1
DIF: Moderate
REF: p. 21
44. A business that is independently owned and operated, with a small number of employees and relatively
low volume of sales is a:
a. small business.
b. medium business.
c. large business.
d. joint venture.
ANS: A
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 21
14
45. The major contributions that entrepreneurs make to society include all of the following EXCEPT:
a. innovation.
b. job creation.
c. support of large businesses.
d. economic stability.
ANS: D
OBJ: 1-8 C
PTS: 1
DIF: Moderate
REF: p. 22
46. A first-mover advantage refers to:

a. offering unique customer value.
b. offering a unique customer value before competitors do so.
c. writing down the objectives and steps for achieving a new venture.
d. leaving an industry or product line before sales drop.
ANS: B
OBJ: 1-8 C
PTS: 1
DIF: Moderate
REF: p. 23
47. A(n) __________ is a written description of a new ventureits objectives and the steps for achieving
them.
a. executive summary
b. direct investment
c. business plan
d. none of these
ANS: C
OBJ: 1-8 C
PTS: 1
DIF: Moderate
REF: p. 23
48. Which of the following sections of a business plan is commonly presented first, though it is usually
written after the rest of the business plan has been completed?
a. Executive Summary
b. Operations
c. Marketing
d. Introduction
ANS: A
OBJ: 1-8 C
PTS: 1
DIF: Easy
REF: p. 24
LEARNING OUTCOMES (Concepts)

1. Describe a managers responsibility.
ANS:
A manager is responsible for achieving organizational objectives through efficient and effective use of
resources. Efficient means doing things right, and effective means doing the right thing. The managers
resources include human, financial, physical, and informational resources.
PTS: 1
OBJ: LO 1-1 C
15
2. List and explain the three management skills.

ANS:
The three management skills are technical, interpersonal, and decision-making skills. Technical skills
involve the ability to use methods and techniques to perform a task. Interpersonal skills involve the
ability to understand, communicate, and work well with individuals and groups through developing
effective relationships. Decision-making skills are based on the ability to conceptualize situations and
select alternatives to solve problems and take advantage of opportunities.
PTS: 1
OBJ: LO 1-2 C
3. List and explain the four management functions.
ANS:
The four management functions are planning, organizing, leading, and controlling. Planning is the
process of setting objectives and determining in advance exactly how the objectives will be met.
Organizing is the process of delegating and coordinating tasks and allocating resources to achieve
objectives. Leading is the process of influencing employees to work toward achieving objectives.
Controlling is the process of establishing and implementing mechanisms to ensure that the
organization achieves its objectives.
PTS: 1
OBJ: LO 1-3 C
4. Identify the three management role categories.
ANS:
Managers play the interpersonal role when they act as figurehead, leader, or liaison. Managers play the
informational role when they act as monitor, disseminator, or spokesperson. Managers play the
decisional role when they act as entrepreneur, disturbance handler, resource allocator, or negotiator.
PTS: 1
OBJ: LO 1-4 C
5. List the hierarchy of management levels.
ANS:
The three hierarchy levels are top managers (e.g., operations executive), middle managers (e.g.,
marketing manager), and first-line managers (e.g., accounting supervisor).
PTS: 1
OBJ: LO 1-5 C
16
6. Describe the three different types of managers.

ANS:
A general manager supervises the activities of several departments or units that perform different
activities. Functional managers supervise related activities such as marketing, operations, finance, and
human resources management. A project manager coordinates employees and other resources across
several functional departments to accomplish a specific task.
PTS: 1
OBJ: LO 1-6 C
7. Describe the differences among management levels in terms of skills needed and functions performed.
ANS:
Top managers have a greater need for conceptual and decision-making skills than first-line managers
do. Middle managers have a need for all three skills. First-line managers have a greater need for
technical skills than top managers.
PTS: 1
OBJ: LO 1-7 C
8. Explain the difference between an entrepreneur and an intrapreneur.
ANS:
Entrepreneurs commonly start a new small business venture. Intrapreneurs commonly start a new line
of business within a large organization, or they tend to run a small business within a large organization.
PTS: 1
OBJ: LO 1-8 C
REVIEW QUESTIONS (Concepts)
1. What are a managers resources?
ANS:
The managers resources are human, financial, physical, and informational.
PTS: 1
OBJ: RQ 1-1 C
2. What are the three management skills?
ANS:
Management skills include technical, interpersonal, and decision-making skills.
PTS: 1
OBJ: RQ 1-2 C
17
3. What are the four functions of management?

ANS:
The four functions of management include planning, organizing, leading, and controlling.
PTS: 1
OBJ: RQ 1-3 C
4. What are the three management role categories?
ANS:
The three management role categories include interpersonal, informational, and decisional roles.
PTS: 1
OBJ: RQ 1-4 C
5. What are the three levels of management?
ANS:
The three levels of management are top managers, middle managers, and first-line managers.
PTS: 1
OBJ: RQ 1-5 C
6. What are the three types of managers?
ANS:
The three types of managers are general managers, functional managers, and project managers.
PTS: 1
OBJ: RQ 1-6 C
7. What is a new venture, and who starts it?
ANS:
A new venture is a new business or a new line of business. Entrepreneurs commonly start a new small
business venture. Intrapreneurs commonly start a new line of business within a large organization.
PTS: 1
OBJ: RQ 1-8 C
8. How do you define small business?
ANS:
A small business is a business that is independently owned and operated, with a small number of
employees and relatively low volume of sales.
PTS: 1
OBJ: RQ 1-8 C
18
9. What are competitive and first-mover advantages?

ANS:
A competitive advantage specifies how an organization offers unique customer value. A first-mover
advantage offers a unique customer value before competitors do so.
PTS: 1
OBJ: RQ 1-8 C
10. What are the objectives of this book?
ANS:
The objectives of this book are to teach you the important concepts of management, to develop your
ability to apply the management concepts through critical thinking, and to develop your management
skills in your personal and professional lives.
PTS: 1
OBJ: RQ 1-8 C
APPLYING THE CONCEPTS (Applications)
1. Tammy learned to use her computer to make reports on how well her employees were performing.
This is an example of using which of the following types of management skills?
a. technical
b. interpersonal
c. decision making
ANS: A
PTS: 1
OBJ: AC 1-2 A
2. The president of NERCO Co. visualizes his company moving into a totally new market of golf
equipment. This is an example of using which of the following types of management skills?
a. technical
b. interpersonal
c. decision making
ANS: C
PTS: 1
OBJ: AC 1-2 A
3. Debbie tries to talk to each one of her employees at least once every day to make them feel their work
is appreciated. Debbie is utilizing which of the following types of management skills?
a. technical
b. interpersonal
c. decision making
ANS: B
PTS: 1
OBJ: AC 1-2 A
19
4. Jerry analyzes market data to determine which areas of the company need improvement. This is an
example of a manager using which of the following management functions?
a. planning
b. organizing
c. leading
d. controlling
ANS: D
PTS: 1
OBJ: AC 1-3 A
5. Julie decides that her employees do not work well together. She decides she will form new groups for
her employees to work within. This is an example of a manager using which of the following
management functions?
a. planning
b. organizing
c. leading
d. controlling
ANS: B
PTS: 1
OBJ: AC 1-3 A
6. Jane has stated the goals of her human resources department is to hire as many different types of
people as possible. Which of the following management functions is Jane utilizing?
a. planning
b. organizing
c. leading
d. controlling
ANS: A
PTS: 1
OBJ: AC 1-3 A
7. Terri has tried to get the employees of her human resources department to be excited about the
opportunities that diversity programs offered. Terry is using which of the following management
functions?
a. planning
b. organizing
c. leading
d. controlling
ANS: C
PTS: 1
OBJ: AC 1-3 A
8. Gillian has gone to great measures to make sure different types of people are represented in each
group. Gillian is using which of the following management functions?
a. planning
b. organizing
c. leading
d. controlling
ANS: B
PTS: 1
OBJ: AC 1-3 A
20
9. Bright Co. is now in the process of analyzing how well each employee understood the concepts in their
diversity program. Bright Co. is currently performing which of the following management functions?
a. planning
b. organizing
c. leading
d. controlling
ANS: D
PTS: 1
OBJ: AC 1-3 A
10. Debbie provides her employees with data every morning at 8:00 to help them perform their jobs more
effectively. Debbie is utilizing which of the following management roles?
a. interpersonal role
b. informational role
c. decisional role
ANS: B
PTS: 1
OBJ: AC 1-4 A
11. Latoya, a retail store manager, is discussing the terms of a new shipment of clothes from the
manufacturer. Latoya is utilizing which of the following management roles?
c. decisional role
ANS: C
PTS: 1
OBJ: AC 1-4 A
12. Claude is teaching a new employee how to use the cash register. Claude is utilizing which of the
following management roles?
c. decisional role
ANS: A
PTS: 1
OBJ: AC 1-4 A
13. Michael has the job responsibility to make sure that the store clerks provide friendly customer service.
Michael is at what level of management?
a. top
b. middle
c. first-line
ANS: C
PTS: 1
OBJ: AC 1-5 A
21
14. Sam Glass is the president of M Mart, and he has decided M Mart should expand globally to countries
all over the world. Sam is at what level of management?
a. top
b. middle
c. first-line
ANS: A
PTS: 1
OBJ: AC 1-5 A
WORK APPLICATIONS (Applications)
1. Describe the specific resources used by your present or past boss. Give the managers job title and
department.
ANS:
Answers will vary.
PTS: 1
OBJ: WA 1-1 A
2. Identify a specific manager, preferably one who is or was your boss, and explain what makes him or
her successful or unsuccessful. Give examples.
ANS:
Answers will vary.
PTS: 1
OBJ: WA 1-1 A
3. Select a manager, preferably one who is or was your boss, and state the specific management skills he
or she uses on the job.
ANS:
Answers will vary.
PTS: 1
OBJ: WA 1-2 A
4. Identify a specific manager, preferably one who is or was your boss, and give examples of how that
person performs each of the four management functions.
ANS:
Answers will vary.
PTS: 1
OBJ: WA 1-3 A
22
5. Identify a specific manager, preferably one who is or was your boss, and give examples of how that
person performs in each of the three management role categories. Be sure to identify at least one of the
three or four roles in each category.
ANS:
Answers will vary.
PTS: 1
OBJ: WA 1-4 A
6. Identify the three levels of management in a specific organization by level and title. Be sure to give the
organizations name.
ANS:
Answers will vary.
PTS: 1
OBJ: WA 1-5 A
7. Identify which type of boss you have now or have had previously. If that person is or was a functional
manager, be sure to specify the functional tasks of the department.
ANS:
Answers will vary.
PTS: 1
OBJ: WA 1-6 A
8. Does a company you work for (or one you have worked for) have a competitive advantage? If yes,
what is it? If not, how is this company the same as its competitors?
ANS:
Answers will vary.
PTS: 1
OBJ: WA 1-8 A
COMMUNICATION SKILLS (Skills)
1. Are you interested in being a manager?
ANS:
Answers will vary.
PTS: 1
OBJ: CS 1-1 S
23
2. Why is it important to take this course in management?

ANS:
Answers will vary. Some of the reasons may include that it is important to learn about management
because knowledge of what management is can help you to be a better employee, because this course
can help you to qualify to become a manager, and because it can help you if you become a manager.
PTS: 1
OBJ: CS 1-1 S
3. Is it more important for managers to be efficient or effective? Can you improve both at the same time?
ANS:
It is more important for managers to be effective than efficient because even if managers do the wrong
things very well, they will not be successful.
No. You really cant improve both at the same time in the sense that you have to be effective before
you can be efficient.
PTS: 1
OBJ: CS 1-1 S
4. Is management ability universal? In other words, can a good manager in one environment (e.g.,
computers) also be effective in another (e.g., banking)?
ANS:
Generally, the answer is yes. Many managers change industries throughout their careers and are
effective in more than one industry.
PTS: 1
OBJ: CS 1-1 S
5. Some people say the hard skills (technical, finance, quantitative analysis) are more important for
managers than soft skills (interpersonal), and some say the opposite is true. What is your view?
ANS:
Although it can make a good debate, it is really hard to say whether one is really more important than
the other. A truly good manager has both hard and soft skills; most people dont progress in
management without both.
PTS: 1
OBJ: CS 1-2 S
24
6. Is your college professor a manager? Why or why not?

ANS:
No. College professors are not really managers, even though they do perform the four functions of
management. Students are not employees of the college; in essence, students are customers, so your
professor is not a manager.
PTS: 1
OBJ: CS 1-5 S
7. When a good employee is promoted to management, which management level is the promotion usually
to, and how do the management skills and functions change with the job promotion?
ANS:
When an employee is promoted, it is usually to the first-line management position. The employees
technical skills are still important, but interpersonal skills and decision-making skills become more
important as a manager. The nonmanager operative employee performs mostly nonmanagement
functions. However, as a manager, the new supervisor will have to spend more time planning,
organizing, leading, and controlling.
PTS: 1
OBJ: CS 1-5 S
8. When an employee is promoted to a manager, do most organizations provide some type of training?
Should they? Why or why not?
ANS:
No. Most organizations dont provide any training when an employee is promoted to a manager.
Yes. The organization should provide some type of training for the employee. Most successful leaders
have had extensive training.
PTS: 1
OBJ: CS 1-5 S
9. Would you rather work for a small or large business?
ANS:
Answers will vary.
PTS: 1
OBJ: CS 1-8 S
10. Are you interested in being an entrepreneur?
ANS:
Answers will vary.
PTS: 1
OBJ: CS 1-8 S
25
SKILL BUILDERS (Skills)

1. Youve been promoted from being an employee in one department to be the supervisor in another
department. The supervisor you are replacing did not require the group to do much work. Production is
low and has declined in recent months. That is why you got the job. As a situational manager, identify
the following:
Capability Level
Management Style
Behavior to Use
Action Taken
ANS:
1
Autocratic
High directive/Low supportive
Closely oversee the employees work. Be sure that production increases to standard levels.
Second-Best Answer
2
Consultative
High directive/High supportive
Closely oversee the employees work as you encourage them to improve performance, and get to know
them. Be sure standards are met.
PTS: 1
OBJ: S
26
2. As a supervisor you want to improve performance in your department. You have asked your
employees to think of ways to improve the department. However, you dont expect many good ideas
because in the past the group has not been very interested or enthusiastic in participating in decision
making. You have some good ideas. As a situational manager, identify the following:
Capability Level
Management Style
Behavior to Use
Action Taken
ANS:
2
Consultative
Encouragingly ask the members for their ideas. After they are finished, present your ideas and sell
them on the benefits of implementing them.
Second-Best Answer
3
Participative
Low directive/High supportive
Encouragingly ask the members for their ideas. Do not directly give your own ideas. Instead, give
some of your information and let them come to conclusions so that they feel as though the ideas are
theirs rather than yours.
PTS: 1
OBJ: S
27
3. As a supervisor you spend little time telling employees what to do and most of the time encouraging
them to do a good job. However, at the present time, your employees have fallen behind schedule on
an important project due soon. As a situational manager, identify the following:
Capability Level
Management Style
Behavior to Use
Action Taken
ANS:
2
Consultative
Oversee the employees to be sure that the deadline is met as you continue to encourage them.
Second-Best Answer
3
Participative
Continue to encourage the employees and use more directives than usual to meet the deadline.
PTS: 1
OBJ: S
4. You are discussing the delegation of a new task to one of your best employees, Pete. However, Pete is
hesitant to take on the new assignment. You are confident he can do it on his own. As a situational
manager, identify the following:
Capability Level
Management Style
Behavior to Use
Action Taken
ANS:
3
Participative
Encouragingly ask Pete what the best way is to do the task. Build up his confidence as you discuss the
delegation.
Second-Best Answer
2
Consultative
Tell Pete how to do the delegation as you encourage him to do it.
PTS: 1
OBJ: S
28
5. You have an employee, Jean, who does an excellent job on her own. You believe the job is boring to
Jean because it is too easy for her. Therefore, you have decided to delegate one of three assignments to
her, but youre not sure which one she will like best. As a situational manager, identify the following:
Capability Level
Management Style
Behavior to Use
Action Taken
ANS:
4
Empowering
Low directive/Low supportive
Explain the three tasks and let Jean select the one she wants to do.
Second-Best Answer
3
Participative
Tell Jean what the three tasks are and together supportively decide which task she should do.
PTS: 1
OBJ: S

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Chapter 1MANAGEMENT AND ENTREPRENEURSHIP

3. The managers resources are human, financial, and physical.

6. A manager needs technical, interpersonal, and decision-making skills.

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

10. Interpersonal skills are based on strong conceptual skills.

13. There are three basic management functions.

14. Planning is typically the second step in the management process.

16. Leading is the process of ordering employees to perform particular tasks.

Chapter 1: Management and Entrepreneurship

20. There are basically four levels of management.

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

29. Intrapreneurs commonly have more risk than entrepreneurs.

31. Large businesses commonly acquire small businesses to gain innovations.

Chapter 1: Management and Entrepreneurship

MULTIPLE CHOICE (Concepts)

2. A manager is responsible for achieving organizational objectives through:

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

3. A manager is responsible for:

4. Which of the following is the best example of being efficient?

5. Which of the following is the best example of being effective?

6. All of the following are managers resources EXCEPT:

7. The level of organizational performance is based on:

8. Which of the following are requisite management skills?

Chapter 1: Management and Entrepreneurship

9. All the following are management skills EXCEPT:

11. Which of the following statements is TRUE regarding technical skills?

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

15. The four management functions are:

Chapter 1: Management and Entrepreneurship

19. An important part of __________ is staffing.

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

24. A management role is:

25. All of the following are management role categories EXCEPT:

26. The three management role categories are:

27. Which of the following is an example of a managerial interpersonal role?

28. In training others, one is performing a __________ role.

29. Which of the following is an example of a managerial informational role?

Chapter 1: Management and Entrepreneurship

30. Which of the following is an example of a managerial decisional role?

31. There are __________ levels of management.

32. The three levels of management are:

33. The three types of managers are:

34. Which of the following is NOT a type of manager?

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

35. A general manager:

36. Middle managers are:

37. A functional manager:

Chapter 1: Management and Entrepreneurship

41. __________ involves everyone in an organization in sharing knowledge and applying it to

42. __________ commonly start a new small business venture.

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

46. A first-mover advantage refers to:

LEARNING OUTCOMES (Concepts)

Chapter 1: Management and Entrepreneurship

2. List and explain the three management skills.

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

6. Describe the three different types of managers.

Chapter 1: Management and Entrepreneurship

3. What are the four functions of management?

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e

9. What are competitive and first-mover advantages?

Chapter 1: Management and Entrepreneurship

Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5e