PGTC 511

PRINCIPLE OF MANAGEMENTS:
IMT NOTES

MANAGEMENTS:

1. An entrepreneur into the hosiery business found out the reason his hosiery was not
selling was due to its color. What could be the best source of this information?
a) Supplier
b) Retailer
c) Competition
d) Government

2. In some countries, points of purchase displays are not allowed in retail stores. Such
differences are studied by international entrepreneurs under __________ environment.
a) Economic
b) Political
c) Cultural
d) Technological

3. Having more than 50% ownership position that provides the entrepreneur with
managerial control is called ___________.
a) Joint venture
b) Majority interest
c) Horizontal merger
d) Diversified activity merge

4. The development of a new venture based on an inventor's work often requires

________.
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a) Expertise of an entrepreneur
b) Heavy investment from financers
c) Skilled human resources
d) Highly educated staff
5. A business where an individual is both the owner and conductor of the business affairs is
called__________________.
a) Sole Proprietorship
b) Partnership
c) Corporation
d) None of the above

6. In __________________, the entrepreneur has the right to sell any assets.

a) Proprietorship
b) Partnership
c) Limited Liability Company
d) None of the given options

7. The idea and actions that explain how a firm will make its profits refers to
a) Mission
b) Goal
c) Strategy
d) Objective

8. Entrepreneurs are best as ________________

a) Managers
b) Venture capitalists
c) Planners
d) Doers

9. Entrepreneurs and ventures capitalists:

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a) Get along well
b) Are the best friends
c) Are cordial friends
d) Are in conflict

10. _________________ is one method of stimulating, and then capitalizing on, individuals
in an organization who think that something can be done differently and better.
a) Strategic Orientation
b) Capitalization
c) Intrapreneurship
d) Management

11. The _______ plan shows whether the business is economically feasible or not.
a. Financial
b. Business
c. Economic
d. Marketing

12. In which of the following, the ownership of venture is reflected by ownership of shares
of stock?
a) Partnership
b) Limited partnership
c) Corporation
d) Proprietorship

13. Entrepreneurship can best be described as:

a) a process that requires setting up a business
b) taking a significant risk in a business context
c) having a strong vision
d) a process involving innovation, new products or services, and value creation
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14. The small business ‘owner-manager’ is always the founder of the business:
a) True
b) False (A management buyout is an example of a business where the owner-manager
would probably not have been the founder)

15. Which of these statements best describes the context for entrepreneurship:
a) Entrepreneurship takes place in small businesses
b) Entrepreneurship does not take place in social enterprises
c) Entrepreneurship takes place in a wide variety of contexts
d) Entrepreneurship takes place in large businesses

16. Which of the following are described as one of the ‘Big Five’ personality traits?
a) propensity to leadership
b) need for achievement
c) extravert personality
d) tolerance of others

17. The period of business when an entrepreneur must position the venture in a market
and make necessary adjustments to assure survival is called the:
a) pre-startup stage.
b) startup stage.
c) early growth stage.
d) later growth stage.

18. Which of the following is a reason why a person might prefer to purchase a franchise
rather than open a completely new business?
a) higher failure rate.
b) increased independence.
c) ability to benefit from previous experience.
d) reduced royalty fees.
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19. MSMED stands to ___________

a) Micro, Small & Medium Enterprises Development
b) Mini, Small & Medium Enterprises Development
c) Micro, Small & Medium Entrepreneurship Development
d) Micro, Small & Medium Enterprises Department

20. Which of the following is an internal factor that influences entrepreneurs?

a) Technological Capacity
b) Social environment
c) Political environment
d) Economic condition

21. __________________ requires proper review and reconsideration of the selected

alternative before implementing it.
a) Developing possible alternatives
b) Selecting the best alternative
c) Checking the decision
d) Exploring the developed alternatives

22. Which one of the following is an economic barrier to an entrepreneur?

a) Emotional blocks
b) Labor
c) Lack of sustained motivation
d) lack of vision

23. Which of the following enterprises was found by Akio Morita?

a) Samsung
b) Apple
c) Panasonic
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d) Sony

24. ________________ can be defined as psychological features that enable an individual to

take action toward a desired goal?
a) Motive
b) Trait
c) Attitude
d) Ego

25. ___________ implies that women entrepreneurs are now economically independent and
take decisions independently.
a) Better utilization of resources
b) Improved quality life
c) Economic development
d) Employment generation

26. Financial feasibility analysis can be done by comparing ______________ with the
estimated sales figure.
a) cash flow statement
b) balance sheet
c) break-even point
d) profit and loss statement

27. Which of the following is not considered while selecting the region?
a) Law and order
b) Price of land
c) Availability of raw materials
d) Proximity to the product market

28. Which one of the following is the step involved in setting up a new enterprises?
a) Creating a business plan
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b) Making a product choice
c) Selecting the location
d) Setting up infrastructure

29. The parties involved in franchise business are ___________.

a) 1
b) 2
c) 3
d) 5

30. If someone starts a new business that is a service station, this is an example of a(n):
a) new concept/new business.
b) new concept/existing business
c) existing concept/new business.
d) existing concept/existing business.

HISTORY OF MANAGEMENT:

1. Which of these is a type 1 theorist?

a. Douglas Mc Gregor
b. Ralph Davis
c. Elton Mayo
d. Chester Barnard

2. Who proposed the four principles of scientific management?

a. Herbert Simon
b. Daniel Katz
c. Robert Kahn
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d. Frederick Taylor

3. Which of these is one of Fayol's fourteen principles of management?

a. Unity of command
b. Scientific determination
c. Cooperation of managers
d. None of the above

4. What was Ralph Davis' contribution in organisational theory?

a. Bureaucracy
b. Adhocracy
c. Rational planning
d. None of the above

5. Which theory was proposed by Douglas Mc Gregor?

a. Theory X - Theory Y
b. Bureaucracy
c. Environmental perspective
d. None of the above

6. How many years did the organisation theorists took to effectively respond to Simon's
challenge?
a. 20 years
b. 2 years
c. 10 years
d. 5 years

7. The book "The Social Psychology of Organizations"• belongs to which theorist?

a. Warren Bennis
b. Pfeffer
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c. Daniel Katz and Robert Kahn
d. Simon

8. Which of the following are 5 parts of any organisation given by Mintzberg?

a. Operating core
b. Strategic apex
c. Middle line
d. Techno - structure
e. Support staff
f. All of the above

9. Match the following elements of organisation with their characteristics

1. Strategic apex ----- A. Decentralised and professional bureaucracy
2. Techno - structure ------ B. Centralised and Simple structure
3. Middle line ------ C. Dominant standardisation and machine bureaucracy
4. Support staff ------ D. Autonomy and Divisional structure
5. Operating core ------- E. Mutual adjustments and machine bureaucracy

a. 1-B, 2-C, 3-D, 4-E, 5-A

b. 1-C, 2-B, 3-E, 4-D, 5-A
c. 1-E, 2-C, 3-B, 4-A, 5-D
d. 1-B, 2-A, 3-E, 4-C, 5-D

10. State true or false

i. Simple structure is a matrix organisation.
a. True
b. False

11. Match the following structures with their respective strengths and weaknesses.
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I. Simple Structure ------ A. Flexible and limited applicability
II. Machine Bureaucracy -------- B. Performing standard activities efficiently and subunit
conflicts
III. Professional Bureaucracy------ C. Performing specialised tasks and compulsion to
follow rules
IV. Divisional Structure --------- D. functional goals override organisational goals
V. Adhocracy -------------E. Ad-hoc teams and conflicts

a. I-A, II-B, III-C, IV-D, V-E

b. I-B, II-C, III-E, IV-A, V-D
c. 1-C, II-E, III-A, IV-D, V-B
d. I-E, II-A, III-B, IV-C, V-D

12. State true or false

i. Machine bureaucracy displays strict distinction between line and staff activities.
a. True
b. False

13. Which of the following option was created to hire highly trained specialists for the
operating core?
a. Machine bureaucracy
b. Adhocracy
c. Professional bureaucracy
d. None of the above

14. ______ is a set of autonomous unit, each typically machine bureaucracies in itself,
coordinated by a central headquarter.
a. Divisional structure
b. Professional bureaucracy
c. Adhocracy
d. None of the above
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15. Which of the following company follow divisional structure?

a. Hershey Foods
b. General motors
c. Du Pont
d. All of the above

ORGANISATIONAL ENVIRONMENT:

1. What does OB stand for?

a) Organizational Business
b) Organizational Behaviour
c) Organizing Behaviour
d) Organizing Business

2. Which of these is a core underlying discipline that informs organizational behaviour?

a) Motivation
b) Sociology
c) Teamwork
d) Leadership

3. What is an academic discipline?

a) A topic that we study
b) The ability to study well
c) A set of questions
d) A field of study

4. Which academic discipline is sometimes described as the 'science of the mind'?

 PGTC 511
a) Sociology
b) Anthropology
c) Political Science
d) Psychology

5. Which academic discipline is described as 'the study of humanity'?

a) Sociology
b) Anthropology
c) Political Science
d) Psychology

6- The Hawthorne studies are of utmost significance as they form an honest and concerted
attempt to understand:
(A) The human factor
(B) Employee attitudes
(C) The workers social situations
(D)All of the above

7- The ________ leadership style is an expression of the leader’s trust in the abilities of his
subordinates.
(A) Participative
(B) Delegative
(C) Authoritarian
(D) All of the above

8- Work attitudes can be reflected in an organization through

(A) Job satisfaction
(B) Organizational commitment
(C) Both ‘A’ and ‘B’
(D) None of the above
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9- The two dimensions of leadership which emerged from the Leader Behavior Description
Questionnaire were ‘consideration’ and ‘________’
(A) Energizing
(B) Initiating structure
(C) Deliberate
(D) Commanding

10- The model(s) of Organizational Behaviour is (are):

(A) Autocratic
(B) Custodial
(C) Supportive
(D) All of the above

11- At the norming stage, the team is involved in defining ………

(A) Goals
(B) Roles
(C) Relations
(D) All of the above

12- Identify the steps involved in achieving improvement in communication within the
organization.
(A) Sending messages, Use of multiple channels, Promoting inter-group communication
(B) Simple messages, Use of multiple channels, promoting inter-group interaction
(C) Simple messages, Use of multiple channels, promoting inter-group communication
(D) Simple messages, Use of multiple methods, promoting inter-group communication

13- The philosophy that guides an organization’s policies towards its employees and
customers is an important part of
(A) Management strategy
(B) Organization behavior
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(C) Organizational culture
(D) Organization development

14- Feature(s) of Maslow’s need hierarchy theory is (are):

(A) Theory of human motives
(B) Classifies basic human needs in a hierarchy
(C)Theory of human motivation
(D) All of the above

15- What is play to some people maybe to others.

(A) Responsibility
(B) Duty
(C) Work
(D) None of the above

ORGANISATIONAL STRATEGY:

1. ________ can be defined as the determination of the basic long - term goals and
objectives of an enterprise, the adoption of courses of action and the allocation of resources
necessary for carrying out these goals..
a. Strategy
b. Strategic dimension
c. Business level strategy
d. None of the above

2. Which strategy will be used by an organisation that is in more than one line of business?
a. Business level strategy
b. Contemporary strategy
 PGTC 511
c. Corporate level strategy
d. None of the above

3. Which of the following option is a strategic dimension?

a. Innovation
b. Cost control
c. Marketing differentiation
d. Breadth
e. All of the above

4. Which strategy refers to the scope of the market to which the business caters?
a. Breadth strategy
b. Cost control
c. Innovation
d. None of the above

5. Which researcher found out the classic work on the relationship between organisation
strategy and its structure?
a. Miles and Snow
b. Michael Porter
c. Alfred Chandler
d. None of the above

6. State true or false

i. Defenders, prospectors, Analyzers and Reactors are the four types of organisation's
classified by Raymond Miles and Charles Snow.
a. True
b. False

7. Match the following strategies with their structural characteristics

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1. Defender ------------ A. High degree of formalisation
2. Analyser ------------ B. Moderately Centralised Control
3. Prospector ---------- C. Loose structure

a. 1-A,2-B,3-C
b. 1-B,2-C,3-A
c. 1-C,2-B,3-A

8. When an organisation sets out to be the low cost producer in its industry, it follows a
__________.
a. Differentiation strategy
b. Focus strategy
c. Low cost leadership strategy
d. None of the above
9. Who developed the four strategy dimension of innovation, marketing differentiation,
breadth and cost - control?
a. Danny Miller
b. Michael Porter
c. Chandler
d. Raymond Miles

10. Match the following strategic dimensions and challenges

1. Cost control ----------- A. To select the right range of products, services & customers
2. Market Differentiation ------------ B. To produce standardized products efficiently
3. Innovation ------------- C. To understand and cater to consumer preferences
4. Breadth ---------------- D. To understand and manage more products, customer types,
technologies and markets

a. 1-B,2-C,3-D,4-A
b. 1-C,2-B,3-A,4-D
c. 1-B,2-C,3-A,4-D
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d. 1-A,2-D,3-C,4-B

PLANNING:

1. What is another name for contingency planning?

a) Synergy planning
b) Ad hoc planning
c) Business level planning
d) Scenario planning

2. What is a definition of an objective?

a) A defined specified outcome to be achieved in the long-term
b) A clear set of goals to be attained given a set number of resources
c) A clearly defined and measurable outcome to be achieved over a specified timeframe
d) A set standard of performance agreed by workers and managers

3. What does the acronym SMART stand for?

a) Suitable, measurable, actionable, rewarded and timely
b) Specific, measurable, actionable, resourced and timely
c) Standardized, measurable, achievable, rewarded, and timely
d) Specific, measurable, achievable, rewarded and timely

4. Which of the following is not a recognised type of plan?

a) Business
b) Succession
c) Ad hoc
d) Financial

5. To what time-frame do strategic plans relate?

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a) Long-term
b) Medium-term
c) Short-term
d) Unspecified time it takes to achieve an aim

6. Which is not a recognised form of business continuity planning?

a) Contingency planning
b) Scenario planning
c) Financial planning
d) Building planning

7. What is the definition of a scenario in scenario planning?

a) An imagined sequence of future events
b) An unpredictable event
c) A planned for event
d) An unplanned for event

8. What is a succession plan?

a) Dismissing an employee for a more favourable employee
b) A formal process of planning to fill a role that will become vacant
c) A vote of no confidence in a board member
d) The formal process of acquiring a new staff member

9. 'There is no discernible link between planning and performance'. Who is this position
held by?
a) Michael Porter
b) Milton Friedman
c) Gary Hamel
d) Henry Mintzberg
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10. What one of the following is not a key management skill in planning?
a) Conceptual skills
b) Analytical skills
c) IT and computing skills
d) Communication skills

DECISION MAKING:

1 Information is
a. Data
b. Processed Data
c. Manipulated input
d. Computer output

2 Data by itself is not useful unless

a. It is massive
b. It is processed to obtain information
c. It is collected from diverse sources
d. It is properly stated

3 For taking decisions data must be

a Very accurate
b Massive
c Processed correctly
d Collected from

4 Operational information is needed for

a Day to day operations
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b Meet government requirements
c Long range planning
d Short range planning

5 Operational information is required by

a Middle managers
b Line managers
c Top managers
d All workers

6 Statutory information is needed for

a Day to day operations
b Meet government requirements
c Long range planning
d Short range planning

7 In motor car manufacturing the following type of information is strategic

a Decision on introducing a new model
b Scheduling production
c Assessing competitor car
d Computing sales tax collected

8 In motor car manufacturing the following type of information is tactical

a Decision on introducing a new model
b Scheduling production
c Assessing competitor car
d Computing sales tax collected

9 In motor car manufacturing the following type of information is operational

a Decision on introducing a new model
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b Scheduling production
c Assessing competitor car
d Computing sales tax collected

10 In motor car manufacturing the following type of information is statutory

a Decision on introducing a new model
b Scheduling production
c Assessing competitor car
d Computing sales tax collected

11 In a hospital information system the following type of information is strategic

a Opening a new children’s ward
b Data on births and deaths
c Preparing patients’ bill
d Buying an expensive diagnostic system such as CAT scan

12 In a hospital information system the following type of information is tactical

a Opening a new children’s’ ward
b Data on births and deaths
c Preparing patients’ bill
d Buying an expensive diagnostic system such as CAT scan
 PGTC 511

DESIGNING ADAPTIVE ORGANISATIONS:

1. Functional Departmentalization is the most common organizational structure

A. True
B. False

2. Duplication of resources is a disadvantage in which type of departmentalization?

A. Product
B. Geographic
C. Customer
D. All of the above

3. One of the advantages of virtual organizations is NOT

A. Let companies share costs
B. Requires tremendous management skills
C. Fast and flexible
D. Being the best should provide better products
E. None of the above

4. Three factors in interorganizational are reengineering, empowerment, and behavioral

informality
A. True
B. False

5. The primary goal in the Job Characteristic Model is

A. High growth satisfaction
B. Internal motivation
C. High work effectiveness
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D. High general job satisfaction

6. Benefits of job specialization are

A. Can be taught fast
B. Improved efficiency
C. Reduced quality control costs
D. Learn speed and production faster
E. All of the above

7. Job Rotation is increasing the number of different tasks a worker performs

A. True
B. False

8. One structure that Organizational Authority deals with

A. Chain of Command
B. Line vs. Employee
C. Decentralization
D. None of the above

9. Decentralization of Authority is the location of most authority at the upper levels of the
organization
A. True
B. False

ORGANISATIONAL DESIGN AND STRUCTURE:

1. Restricted view of organizational goals is represented by deploying a

Vertical Structure
Divisional Structure
Horizontal Structure
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Functional Structure

2 Shared task decisioning is encouraged at

Linear structure
Vertical structure
Horizontal structure
Compound structure

3: Managers not having control over many activities is a drawback of

Matrix Structure
Network Structure
Vertical Structure
Horizontal Structure

4: Specialized task decisioning takes place at

Computed structure
Vertical structure
Complex structure
Horizontal structure

5: An organization designed for efficiency, emphasizes on

Centralization
Horizontal communication
Decentralization
Vertical communication

6. To achieve vertical linkages, first vertical device is

Management information system
Plans
Rules
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Hierarchical Referral

7: When an organization have a matrix structure, it needs to have

Technical expertise
Product innovation
Effectiveness
Both A and B

8: A device named task force is an effective horizontal linkage for

Temporary issues
Permanent issues
Complex issues
Simpler issues

9: An organization that emphasizes vertical communication and control, is designed for

Efficiency
Learning
Adaptation
Innovation

10: A contemporary learning organization designed for adaptation, emphasizes on

Horizontal communication
Vertical communication
Centralization
Decentralization
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****LEADERSHIP:

1. According to the Five Factor model, 'extraversion' as a personality type is characterized

by what type of people?
a) Good natured
b) Calm and self-confident
c) Sensitive and curious
d) Assertive and sociable

2. What does situational theory of leadership emphasize?

a) Personality traits
b) Events
c) Environment
d) Political situation

3. What do you call a style of leadership that takes account of others' views, opinions and
ideas?
a) Laissez-faire
b) People-oriented
c) Democratic
d) Autocratic

4. How can you describe the thinking and outlook of transformational leaders?
a) Strategic
b) Operational
c) Functional
d) Developmental
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5. According to Lewin, Lappet and White's 1939 experiment, which form of leadership
produced the most work from participants?
a) Laissez-faire
b) Democratic
c) Authoritarian
d) A mix of laissez-faire and democratic

6. What are the two main dimensions of the Ohio Studies into leadership?
a) Starting position and end position
b) Initial environment and changed environment
c) Organisational structure and conditioning
d) Initiating structure and considerations

7. Who of the following is a leading writer on contingency theory of leadership?

a) Rosabeth Kanter
b) Joan Woodward
c) Resins Likert
d) Fred Fiedler

8. Which one of the following political leaders could not be termed a 'transformational'
leader?
a) Margaret Thatcher
b) Mikhail Gorbachevian
c) Nelson Mandela
d) Bill Clinton

9. What are the key characteristics of transactional leaders?

a) Guiding, mentoring and motivating
b) Guiding, commanding and motivating
c) Guiding, demonstrating and motivating
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d) Guiding, mentoring and demonstrating

10. What is the term for power derived from status or position in an organisation?
a) Referent
b) Expert
c) Reward
d) Legitimate

****CONTROL:

1- ______ is a process of influencing people.

 Motivation
 Leadership
 Delegation
 Controlling

2- The following is (are) the element(s) of control

 Authority and knowledge

 Guidance and direction
 Constraint and restraint
 All of the above

3- Which type of strategies do professional managers help organizations in chalking out?

 PGTC 511

 Corporate
 Multi-disciplinary
 Both (A) and (B)
 None of the above

4- Limitation of control is (are)

 External factors
 Fixing of responsibility
 Internal factors
 Both (A) and (B)

5- MBO was invented by ________.

 Peter Drucker
 Koontz & O ‘Donell
 Henry Fayol
 None of the above

6- The relationship(s) for selecting the span of control would be:

 One to one
 Cross relationship
 Direct group
 All of the above

7- Management is said to be the combination of three factors, arts, science and the third is

 Profession
 Authority
 Communication
 None of the above
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8- One of the popular forecast is

 Technological
 Economic
 Demand
 None of the above

9- Events are occurrences designed for ________ interests.

 Marketing
 Customer
 Both (A) and (B)
 Company

10- Limitation(s) of business planning is (are)

 Time Consuming
 Expensive device
 Heavy cost of planning
 All of the above

***CONTROLLING TECHNIQUE:

1. An entrepreneur into the hosiery business found out the reason his hosiery was not
selling was due to its color. What could be the best source of this information?

a) Supplier
b) Retailer
c) Competition
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d) Government

2. In some countries, points of purchase displays are not allowed in retail stores. Such
differences are studied by international entrepreneurs under __________ environment.
a) Economic
b) Political
c) Cultural
d) Technological

3. Having more than 50% ownership position that provides the entrepreneur with
managerial control is called ___________.
a) Joint venture
b) Majority interest
c) Horizontal merge
d) Diversified activity merge

4. The development of a new venture based on an inventor's work often requires

________.
a) Expertise of an entrepreneur
b) Heavy investment from financers
c) Skilled human resources
d) Highly educated staff

5. A business where an individual is both the owner and conductor of the business affairs is
called__________________.
a) Sole Proprietorship
b) Partnership
c) Corporation
d) None of the above
 PGTC 511
6. In __________________, the entrepreneur has the right to sell any assets.
a) Proprietorship
b) Partnership
c) Limited Liability Company
d) None of the given options

7. The idea and actions that explain how a firm will make its profits refers to
a) Mission
b) Goal
c) Strategy
d) Objective

8. Entrepreneurs are best as ________________

a) Managers
b) Venture capitalists
c) Planners
d) Doers

9. Entrepreneurs and ventures capitalists:

a) Get along well
b) Are the best friends
c) Are cordial friends
d) Are in conflict

10. _________________ is one method of stimulating, and then capitalizing on, individuals
in an organization who think that something can be done differently and better.
a) Strategic Orientation
b) Capitalization
c) Intrapreneurship
d) Management
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11. The _______ plan shows whether the business is economically feasible or not.
a. Financial
b. Business
c. Economic
d. Marketing

12. In which of the following, the ownership of venture is reflected by ownership of shares
of stock?
a) Partnership
b) Limited partnership
c) Corporation
d) Proprietorship

13. Entrepreneurship can best be described as:

a) a process that requires setting up a business
b) taking a significant risk in a business context
c) having a strong vision
d) a process involving innovation, new products or services, and value creation

14. The small business ‘owner-manager’ is always the founder of the business:
a) True
b) False (A management buyout is an example of a business where the owner-manager
would probably not have been the founder)

15. Which of these statements best describes the context for entrepreneurship:
a) Entrepreneurship takes place in small businesses
b) Entrepreneurship does not take place in social enterprises
c) Entrepreneurship takes place in a wide variety of contexts
d) Entrepreneurship takes place in large businesses
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***BUSINESS ETHICS:

1. The three major types of ethical issues include except?

Communication issues
Systematic issues
Corporate issues
Individual issues

2. Which of the following refers to the reasoning process by which human behaviors,
institutions, or policies are judged to be in accordance or notwith
moral standards?
Moral reasoning
Moral duty
Moral justice
None of the above

3. The principle of categorical imperative is given by

James Mill
Herbert Spencer
Jeremy Bentham
Immanuel Kant

4. Which kind of theory Utilitarianism has?

Ethical
Conceptual
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Behavioral
None of the above

5. In which year Justice Department charged the accounting firm of Arthur Andersen for
obstruction of justice?
2000
2001
2002
2003

6. The main purpose of business ethics is to?

understanding ethical uncertainties
principles and concepts
Application of practices
All of the above

7. The contributive principle of distributive justice measured the contributions in terms of:
Economic quality
Minimum standard of living
Work effort
Opportunity

8. An acquired disposition that is a valuable part of a morally good person, exhibited in the
person's habitual behavior is known as?
Moral responsibility
Moral ethics
Moral virtue
None of the above

9. Which one of the following is not considered as category of issues involving justice?
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Distributive justice
Retributive justice
Compulsory justice
Compensatory justice

10. Utilitarianism suggests that it is ethical to make decisions based on:

Moral virtues
Common decency
What is best for most people.
None of the given

11. Which one of the following is the right order for three stages of moral development?
Principled morality, conventional morality and selfish
Conventional morality, Principled morality and selfish
Selfish, Conventional morality and Principled morality
None of the above

12. Which of the following choices does NOT describe a situation that is covered by the
concept of rights?
The absence of prohibitions against an activity
The authorization to do something to secure one's interests
The necessity of doing something required by authority
The existence of prohibitions on others to enable individuals to pursue an activity

13. Right action comes to be defined in terms of moral principles chosen because of their
logical comprehensiveness, universality, and consistency is known as?
Interpersonal Concordance Orientation
Universal Ethical Principles Orientation
Social Contract Orientation
Law and Order Orientation
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14. “Principle of Utility” as a method was the idea of:

James Mill
Herbert Spencer
Jeremy Bentham
Kant

***CORPORATE SOCIAL RESPONSIBILITY:

1. All definitions of Corporate Social Responsibility recognize that:

a) companies have a responsibility for their impact on society and environment.
b) the natural environment should be the main focus of CSR activities.
c) business ethics is a complex issue.
d) companies must pay equal attention to business ethics and sustainability.

2. Who said that the "only one social responsibility of business is to increase profits"?
a) Edward Freeman
b) Milton Friedman
c) Michael Porter
d) Michael Freeman

3. What is the main characteristic of the stakeholder approach?

a) The idea that many different groups have a legitimate interest in the corporation
b) It is a critical perspective on corporations and business.
c) A focus on social and environmental responsibilities of a corporation.
d) The assumption that shareholders are not the main stakeholders in the corporation.
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4. What are the four generic strategies of social responsiveness?
a) Proaction, Defensive, Reinvestment, Reaction
b) Reaction, Defence, Reinvestment, Proaction
c) Reaction, Defence, Investment, Withdrawal
d) Reaction, Defence, Accommodation, Proaction

5. Michael Porter and Mark Kramer said that:

a) Social responsibility does not matter for firm strategies.
b) Socially responsible firms act against the interests of shareholders.
c) Social responsibility can help firms to discover future business opportunities.
d) Social responsibility is a long-term investment in a company's advertising and public
relations.

6. Which of the following is NOT an example of a genuine business innovation?

a) Development of less polluting fuel
b) Investment in alternative energy sources
c) New product targeted at low-income customers
d) Charitable donation to an ecological organization

7. Opportunities for social innovation are greatest when:

a) CSR is aligned with a firm's core skills and capabilities.
b) CSR spending of a firm is larger than that of its competitors.
c) CSR is pursued by a firm to improve its reputation.
d) CSR is pursued by a firm to enhance human capital.

8. What are the three levels of innovation?

a) New product creation, new market creation, leadership
b) In-market innovation, new market creation, leadership
c) New product creation, new market creation, new reputation
d) New product creation, new market creation, pioneering
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9. Which of the following is an example of new market creation?

a) Development of a low-emission fuel for motorbikes by an oil company.
b) Development of a cheaper drug by a pharmaceutical company.
c) Design of an environmentally friendly building by a construction company.
d) Creation of microfinance services to poor creditors by a bank.

10. What is a key obstacle to the success of non-traditional partnerships?

a) Lack of investment by a multinational firm
b) Lack of trust between partners
c) Lack of expertise within a multinational firm
d) Lack of government support

1. Leaders with this trait admit mistakes because they view them as learning opportunities
rather than as refutations of their leadership capabilities
1. Honesty
2. Emotional stability
3. Self confidence
4. Integrity

2. …………..is characterized by simple, easy to learn steps, low variety, and high repetition
1. Job consistency
2. Job specialization
3. Task reengineering
4. Standardization

3. When work and workers are divided into separate units responsible for particular type
of customers is called
1. Product departmentalization
2. Customer departmentalization
3. Regional departmentalization
4. Financial departmentalization
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4. You are the owner of an electronic goods showroom. You are on a mission to reduce
power bill. What will you do on priority?
1. Use CFL LIGHTS
2. USE LED LIGHTS
3. USE TUNGSTEN FILAMENT BULBS
4. NONE

5. It helps in minimizing the chances of sub optimization..

1. Waste prevention and reduction
2. Waste disposal
3. Balanced scorecard
4. Waste treatment

6…………is a control method that encourages managers to look beyond traditional

measures to evaluate four different perspectives on company importance.
1. Optimization
2. Customer churn
3. Balanced scorecard
4. Customer defection

7. Which of the following step is similar to the planning process

1. Avoiding control loss
2. Comparing actual performance to standards
3. Establishing standards of performance
4. Taking corrective action

8. These skills are equally important at all levels of management

1. Technical skills
2. Conceptual skills
3. Human skills
4. Motivation to manage

9. Control helps to
1. Take the mid-course corrective action
2. Increase cycle time
3. Reduce quality
4. All
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10. As a consequence of the industrial revolution and its emphasis on specialization,
institutions providing higher education developed strict departments that contained
specialized function.
This organizational structure was perceived as a way to enhance the accumulation and
dissemination of knowledge. Institutions providing higher education have traditionally
used…………….
1. Reengineering
2. Functionalization
3. Departmentalization
4. Functional empowerment

11. This type of control focuses on observing and measuring worker behavior or output
1. Objective
2. Normative
3. Bureaucratic
4. concertive

1. New technology results in new goods and services, and it can also
A. Lower the quality of existing products
B. Lower the available level of customer service.
C. Reduce Prices through new production and distribution Methods
D. Bring back products that were considered obsolete.
Ans C
2. Which of the following is not part of the external marketing environment?
A. Political
B. Legal
C. Product
D. Sociocultural

3. Toyota’s prius and honda’s hybrid civic are examples of technological products inspired
by:
A. Style considerations in the Japanese automobile industry
B. Social pressure to develop more fuel- efficient vehicles with fewer dangerous emissions
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C. The desire of many engineers to simply make interesting products
D. The Realization that Japanese people did not need large. High speed cars.

4. Which of the following is not an external of the marketing mix:

A. Product
B. Targeting
C. Place
D. Promotion

5. With respect to consumer behaviour , one is friends and relatives could be considered
a/an:
A. Impersonal influence
B. Reference group influence
C. Perceptual Influence
D. Institutional influence

6. The purchasing strategy is based on collaboration in research and development...this is

called:
A. Bargainer
B. Clockwiser
C. Adaptor
D. Updater

7. .The phenomenon that customers are happy to work with companies and organizations
to solve problem is referred as:
A. Crowdsourcing
B. Communication sourcing
C. Customer co- Creation
D. Mass-sourcing
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8. …………….is the process by which we acquire new knowledge and skills, attitudes and
values, through study and experience, or by modelling others behaviour (e.g, parents,
friends):
A. Learning
B. Memory
C. Evaluation
D. Motivation

9. In order for exchange to occur:-

A. A Complex societal system must be involved
B. Organized marketing activities must also occur.
C. A Profit oriented organization must be involved
D. Each Party must have something of value to the other party.

10. Which is NOT classified in buy classes?

A. New Task
B. Information Gathering
C. Modified Rebuy
D. Straight Rebuy

11. When customer expectations product quality and value bases price are met or
exceeded….is created.
A. Customer Satisfaction
B. Planning Excellence
C. A Quality Rift
D. A Value Line

12. …………….is the collection and interpretation of information about forces , events and
relationships that may affect the organization:
A. Environmental Scanning
B. Stakeholder Analysis
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C. Market Sampling
D. Opportunity Analysis

13 The quadrant of the boston consulting group (BCG) matrix that represents both a high
market share and a high rate of market growth includes the:
A. Cash Cows
B. Question Marks
C. Stars
D. Dogs

14. The external environment:

A. Can be controlled in much the same manner as the internal marketing Mix.
B. Does not change over time
C. Does not have an impact on Fortune 500 Companies
D. Must be continually monitored by marketing managers

15 To evaluate an organization’s strategic business units ( SBU ) , the boston consulting

group developed a portfolio performance framework that characterizes some of the SBUs
as:
A. Question marks
B. Quick Winners
C. Charging Bulls
D. Cash Outs

16. Which of the following consumer buying behaviours requires the least effect?
A. High involvement buying situation
B. New Buying Situation
C. Routine Buying
D. Impulsive Buying
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17. The process of deliberative selection of an offering from amongst a repertoire
alternatives is called:
A. Memorising
B. Learning
C. Picking
D. Influencing

18. A marketing philosophy summarized by the phrase a stronger focus on social and
ethical concerns in marketing is characteristic of the ……..._____ period.
A. Production
B. Sales
C. Marketing
D. Societal Marketing

19. Which of the following is not part of the consumer proposition acquisition process?
A. Motive Development
B. Information Gathering
C. Proposition Evaluation
D. Perception

20. Which of the following elements is not part of porter’s five forces model for industry
Competitiveness?
A. Threat of Substitutes
B. Threat of Suppliers
C. Power Of Buyers
D. Threat from Government

21. An imbalance between a consumer’s actual and desired state in which recognition that
a gap or problem needs resolving is called:
A. Motive Development
B. An Attitude
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C, A Self- Concept
D. Product Evaluation

22. ……………..is the simplest model of consumer buying behaviour to understand ,

stressing how the consumer goes through six key stage in the acquisition process:
A. Memory
B. Theory of planned Behaviour
C. Maslow Hierarchy of need
D. Consumer Acquisition Model

23. The consumer goods perspective of marketing assumes there are comparatively few
suppliers within a particular industry , all …………..:
A. Quality of service
B. Aggregated Demand
C. Supply Chain
D. Procurement Process

24. A firm has decided to after its pricing and promotional strategies in response to slower
than Expected growth and declining personal incomes. The firm is responding to changes
in it’s:
A. Socio- Cultural Environment
B. Political Environment
C. Economic Environment
D. Competitive Environment

25. Needs are hidden, our subject is unaware of his or her need. This is referred to us:
A. Passive
B. Esteem
C. Latent
D. Picking
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26. The history of marketing, when did the production period end?
A. 1800
B. 1900
C. 1920
D. After Second World War

27. Tobacco advertising is now virtually banned in all marketing communication forms in
many countries around the world. This can be explained as an influences of:
A. Technological Environment
B. Legal
C. Ecological
D. Economic
Ans B
28. .There are ………..main types of buyer-seller exchanges in marketing.
A. Five
B. Four
C. Six
D. Three

29. The terms marketing mix describes:

A. A Composite Analysis of all Environmental factors inside and outside the firm.
B. A Series of business decisions that aid in selling a product
C. The Relationship between a firm’s marketing strength and its business weaknesses
D. A blending of strategic elements to satisfy specific target markets

30. According to the marketing and sales standards setting body (MSSSB). Which of the
following is not a marketing function?
A. Promote Marketing Intelligence
B. Develop sales tactics
C. Develop the customer proposition
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D. Work with other business functions and third part

31. The differentiation of a firm’s products or services to promote environmental

responsibility is referred to as:
A. Social branding
B. Eco- branding
C. Me-too branding
D. Brand personality

32. Which of the factors in the external environment for influencing society?
A. Socio- cultural Environment
B. Competitive Environment
C. Economic Environment
D. Legal Environment

33. Newsletter, catalogues, and invitations to organizations sponsored events are most
closely associated with the marketing mix activity of:
A. Pricing
B. Distribution
C, Product Development
D. Promotion

34. Which of the following is not a component of market orientation?

A. Customer Orientation
B. Profitability Orientation
C. Marketing Orientation
D. Competitor Orientation

35. Which of the following characteristics would usually make a market less competitive?
A. High barriers to entry
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B. Lots of potential substitutes exist
C. Strong bargaining power among buyers
D. Strong Bargaining power among Suppliers

36. The key term in the American marketing Association definition of marketing is:
A. Process
B. Value
C. Sales
D. Products

37. The term marketing refers to:

A. New product concepts and improvements
B. Advertising and promotion activities
C. A Philosophy that stresses customer value and satisfaction
D. Planning sales campaigns

38. A further 3ps are incorporated into the marketing mix?

A. Physical Evidence, Process and price
B. Process people and Promotion
C. Physical Evidence, People and Production
D. Physical Evidence, Process and People.

39. The six dimensions usually considered to constitute the external marketing environment
include all of the following except.:
A. Political Considerations
B. Suppliers
C. Socio- Cultural Aspects
D. Economic Issues

40. A critical marketing perspective is the process of determining.

 PGTC 511
A. The value of a product, person, or idea.
B. How places compete with each other
C. The worth and impact of marketing activities
D. Which type of promotional strategy works best

41. Social grade is a means of classifying the population by:

A. Needs
B. Occupation
C. Lifestyle
D. Personality

42. Opinions can be referred to as cognitive and:

A. Are a measure of the emotional content of the opinion
B. Deal with the Aesthetic content of the opinion
C. Are held limited conviction since an underlying attributes on an issue is not formed.
D. Measure the speed with which one learns about other’s opinions

43. Providing free samples of perfumes (scent) in magazines is an example of which of the
following:
A. Classical Conditioning
B. Operant Conditioning
C. Social Learning
D. Behavioural Learning

44. The process of collecting information about the external marketing environment is:
A. Environmental Management
B. Environmental Scanning
C. Marketing Management
D. Marketing Research
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45. Marketing managers cannot control ……….but they can at times influences it:
A. Where Advertising is Placed
B. How products or services are delivered
C. The External Environment
D. How Products are Priced

46. The differentiation of a firm’s products or services is underlined to promote

environmental responsibility:
A. Eco- Efficiency
B. Eco- Branding
C. Beyond Compliance Leadership
D. Environmental cost leadership

47. The way in which the product is delivered to meet the customer's’ needs refers to:
A. New product concept and improvement
B. Selling
C. Advertising and Promotion Activities.
D. Place or Distribution Activities

48. In relationship marketing hires focus on…...relationships with ___________________:

A. Short term, customers and Suppliers
B. Long term, customers and Suppliers
C. Short term, customers
D. Long term, customers

49. A market orientation recognises that:

A. Price is the most infective vehicle for customers
B. Market intelligence relating to current and future customers needs an important
C. Selling and marketing are essentially the same thing
D. Sales depend personality on a aggressive sides force
 PGTC 511

50. Which skills and capabilities will marketers need to increasingly have:
A. Market Research
B. Digital and social media marketing
C. Strategic Marketing
D. Sales

**Some Important Questions**

Q1 ____________ is the process of choosing a solution from available alternatives.

 Decision making
 Problem identification
 Heuristics
 Multivariable selection

Q2 What type of planning would be used to create the festivities necessary to celebrate the
100-year anniversary of a furniture manufacturer?

 Single-use plan
 Contingency plan
 Scenario plan
 Standing plan

Q3 According to Kohlberg's model of moral development, people at the expectations. make

decisions that conform to societal
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 Unconventional level
 Preconventional level
 Conventional level
 Postconventional level

Q4 Hot Topic is a fast-growing clothing chain targeted to the alternative teen demographic.
Hot Topic's CEO Betsy McLaughlin relies on her employees to locate new trends.
McLaughlin almost daily consults with her employees for suggestions on what the stores
should carry. She relies on their input before making inventory decisions. McLaughlin uses
the__ style of management.

 Achievement-oriented
 Autonomous
 Directive
 Participative

Q5 Which of the following is a viable strategy for changing organizational culture?

 Allow employees to personalize their offices

 Use behavioral substitution and behavioral addition
 Eliminate the company dress code
 All of these

Q6 Relatively stable characteristics such as abilities, psychological motives, or consistent

patterns of behavior. form the basis for the of leadership-

 Situational theory
 Behavioral theory
 Trait theory
 Expectancy theory

Q7 Kraft Foods has created five global product divisions (beverages, snacks, cheese and
dairy, convenience meals, and grocery) and two marketing divisions (one for North
 PGTC 511
America and the other for everything else). According to the systems approach to
management, these seven divisions are examples of —

 Work units
 Functional systems
 Closed systems
 Subsystems

Q8 Typical responsibilities for include setting objectives consistent with organizational

goals and then planning and implementing the subunit strategies for achieving these goals.

 Top managers
 First-line managers
 Team leaders
 Middle managers

Q10 In which of the following situations would a Gantt chart be appropriate to use?

 Building a bridge
 Installing a local area network for a computer system
 Rebuilding communities destroyed by natural calamities.
 All of these

Q11 McDonald's fast-food restaurants have a well-designed training program for all new
employees. Each new employee is supposed to learn how to perform standardized tasks.
Due to labor shortages in some areas, these new employees begin work as soon as they are
hired and do not receive any off-the-job training. This nonconformity to standards creates
______

 Ambiguous group norms

 Motivational grapevines
 Negative benchmarks
 Control loss
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Q12 First-line managers will most likely have to:

 Monitor the performance of corporate investments

 Encourage, monitor, and reward the performances of their employees
 Determine how to deal with long-term environmental changes
 Periodically monitor the company's organizational culture

Q13 The ______ approach to decision-making is a method in which an individual or a

subgroup is assigned the role of a critic.

 Dialectical inquiry
 Groupthink
 Devil's advocacy
 Delphi

Q14 Suppose that a Mexican car manufacturer wants to export cars to Guatemala. The
fact that the distribution of income within Guatemala is highly unequal and that about 75
percent of the population is below the poverty line would be a(n)___ component in the
manufacturer's general environment.

 Technological
 Socio-cultural
 Economic
 Political: legal

Q 15 The _____ is the set of key values, beliefs, and attitudes shared by members of an
organization.

 Industry code of ethics

 Internal environment
 Organizational culture
 Organizational strategy
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Q16 _____is the collection of activities that transform inputs into outputs that customer's
value.

 Functionalization
 Organizational structure
 Production positioning
 Organizational process

Q17 Large accounting agencies typically have separate departments that deal with
households, businesses, and governments. This allows them to better serve the needs of
their clients, by using ____ departmentalization-

 Matrix
 Product
 Customer
 Geographic

Q18 The basic control process of business begins with _____

 Either benchmarking or key stoning

 The establishment of clear standards of performance
 The comparison of actual performance to expected performance
 Problem identification

Q19 After an organization's founders are gone, the organization can use ____ to sustain its
organizational culture.

 Industry associations
 Organizational heroes
 Organizational structure
 Organizational maps

Q20 Doug has a low-paying job for a telecommunications company. Every day when he
goes home from work, Doug puts a headset, a stapler, or something similar in his lunch box
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and takes it home with him. Doug sees nothing wrong with his behavior since he feels he is
being paid less than he should. In terms of Kohlberg's stages of moral development, Doug
is operating at which level?

 Conventional
 Legally mandated
 Preconventional
 Postconventional

Q 21 According to the effective, companies go through long, simple periods of

environmental stability, followed by short, complex periods of dynamic, fundamental
environmental change, finishing with a return to environmental stability.

 Environmental change theory

 Theory of environmental dynamics
 Punctuated equilibrium theory
 Theory of resource scarcity

Q 22 According to strategic reference point theory, managers have two basic strategic
alternatives. They are ____________

 Risk-avoiding strategy and pioneering strategy

 Risk-maintenance strategy and conflict-avoidance strategy
 Risk-avoiding strategy and risk-seeking strategy
 Frontal attack strategy and guerilla strategy

Q23 In the path-goal theory of leadership, subordinate satisfaction and subordinate

performance would be examples of ____________.

 Leadership stimuli
 Subordinate contingencies
 Environmental contingencies
 Outcomes
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Q24 Which of the following is the LEAST aggressive approach likely to be used by an
advocacy group?

 Public communications
 Media advocacy
 Product boycotts
 Class action lawsuits

Q25 The last step in effective planning is to ______ .

 Maintain flexibility in planning

 Develop long-term action plans
 Develop goal commitment
 Acculturate the employees

Q26 Which of the following is a possible outcome of planning?

 Planning may lead to a mechanistic organizational chart.

 Planning may harm individual and organizational performance.
 Planning can eliminate the need for formalization.
 Planning will allow the company to know about all changes in its external
environment before they occur.

Q27 The goal of scientific management is to ______ .

 Make sure workers did not consider their work boring or repetitive
 Decreased wages for individual workers
 Eliminate conflict between workers and management
 Find the one best way to perform each task
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Q28 Mr. Jan Carlson, the former CEO of Scandinavian Airline Systems (SAS), believes the
most important role for a leader is to instill confidence in people. According to the path-
goal theory, this statement indicates that his leadership style would be _____ .

 Directive
 Achievement-oriented
 Employee-centered
 Supportive

Q29 A manager has instructed Ralph and his fellow workers to develop a daily theme
such as patience, empathy, and kindness. Each day, the workers are to try to emphasize the
theme as they work with customers, suppliers, and each other. What kind of a control
system is Ralph's manager using?

 Self-control
 Human resources control
 Non-administrative control
 Output control

Q30 _______is a tactic in which an advocacy group actively tries to convince consumers not
to purchase a company's product or service.

 Lobbying
 Public communications
 Media advocacy
 Product boycott
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Q1 According to the Chester Barnard, which of the following is an example of an
Organization?
 The four author who co- authored a principle of management textbook
 A basketball teams
 The crew working on the construction of a new church
 All of these

Q28 _____ integrity test indirectly estimate employee honest by measuring psychological
traits.
 Overt
 Psychographic-based
 Covert
 Personality-based

Q3 Henri Fayol is responsible for developing __________

 Bureaucratic management
 Administrative management
 Operations management
 Contingency management
Q4 A manufacturer of automatic locking devices shipped 20,000 devices to a car
manufacturer that was unable to use them because of a design flaw. If the manufacturer of
the devices waited until the parts were returned before determining why it created
unusable component parts, it would be using______ control.
 Feed forward
 Feedback
 Balanced
 Dynamic
Q6 The ability to perform____ increases in its importance to success as managers' rise
through the managerial
 Interpersonal skills
 Human skills
 Conceptual skills
 Informational skills
Q7 According to the S.M.A.R.T. guidelines, goals should be __________
 Aggregated
 Reliable
 Timely
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 Motivated
Q8 Caterpillar announced plans to cut its production of construction equipment due to
forecasted increases in steel prices. By discovering the problem with product inputs and
letting customers know that its output will fall short, Caterpillar used controls
 Feedforward
 Feedback
 Concurrent
 Stasis

9. A business school administrator who is determining what classes will be offered in

which rooms and who will teach each specific class is involved in which classical
management function?
 Organising
 Controlling
 Motivation
 Leading

Q10 Ethical intensity depends on all of the following EXCEPT ____

 Temporal immediacy
 Probability of effect
 Proximity of effect
 Social commitment

Q11 In Great Britain, Nestle introduced a candy bar called Yorkie with the slogan "It's not
for girls!" The resulting furor over this sexist campaign required its British managers to
spend a great deal of time in the role of
 Resource Allocators
 Entrepreneurs
 Disturbance handlers
 Liaison
Q12 One method of weighing decision criteria uses___ which is a process where each
decision is compared directly to every other criterion.
 Absolute Comparisons
 Relative Comparisons
 Valences
 Minimum Threshold Rule
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Q13 McDonald's uses a_______ strategy (a kind of grand strategy) as it increases its
profits in France by offering uniquely French products such as Croque McDo, the
McDonald's version of a popular French grilled sandwich
 Growth
 Decline
 Retrenchment/recovery
 Repositioning
Q14 When making travel plans, many tourists have selected Thomas Cook, a British tour
operation, because they perceive that no other tour company can duplicate the customer
service and satisfaction that Thomas Cook has provided over its years of operation.
Thomas Cook has apparently created a sustainable competitive advantage by using ______
resources
 Synergistic
 Valuable
 Tangible
 Non-Substitutable
Q15 While ____ emphasizes jobs and their authority relationships. ______emphasizes the
activities through which work gets done in the organization.
 Organizational Structure; Organizational Process
 Organizational Process; Organizational Structure
 Interorganizational Process; Intraorganizational Process
 Intraorganizational Process; Interorganizational Process
Q16 According to Mary Parker Follett _____ is an approach for dealing with conflict in
which one party satisfies its desires and objectives at the expense of the other party's
desires and objectives.
 Resolution
 Integration
 Domination
 Coercion
Q17 Which of the following companies is most likely operating in a dynamic environment?
 A video game manufacturer
 A bakery
 A brewery, winery, or distillery in the liquor industry
 A manufacturer of pet food
Q18 Which management theorist provides manager with a better understanding of the
effect group social interactions and employee satisfaction have on individual and group
performance?
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 Elton Mayo
 Chester Barnard
 Henry Fayol
 Max Weber
Q19 According to ____ the most effective management theory or idea depends on the kinds
of problems or situations that managers are facing at a particular time and place.
 Scientific management
 The human relations approach
 Administrative management
 The contingency approach
Q20 A(n)____ Strategy is a corporate strategy that addresses the question “How should we
compete in this industry?”
 Corporate Level
 Industry Level
 Firm Level
 Niche-specific
Q21 Mike Walker supervises operations on the chassis assembly line for a large vehicle
manufacturer. Most of his time is spent in quality control maintenance, scheduling
workers, and training new employees. Walker would be categorized as a
 First-line manager
 Top manager
 Team leader
 Group facilitator
Q22 Which of the following factors can help managers determine whether more or
different control is worthwhile?

 Regulation costs
 Customer flows
 Channelization
 Synergy
Q23 Environmental ____ is affected by environmental complexity, change and resources.
 Uncertainty
 Differentiation
 Difficulty
 Essence
24. According to Chester Barnard, which of the following is an example of an
organization?
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 The four authors who co-authored a principles of management textbook
 a basketball teams
 the crew working on the construction of a new church
 All of these
25. According to Kohlberg' s model of moral development, people at the ___ make
decisions that conform to societal expectations.
 unconventional level
 preconventional level
 conventional level
 postconventional level
26. After a year as a manager, new managers typically realize their job is:
 to be a troubleshooter
 to manage tasks
 just as they expected
 people management
27. Environmental _____ is affected by environmental complexity, change, and
resources.
 uncertainty
 differentiation
 difficulty
 essence
28. The two major approaches to corporate-level strategy are _____ .
 portfolio strategies and secondary strategies
 grand strategies and temporal strategies
 grand strategies and the portfolio strategy
 the Boston matrix strategy and the Maslow strategy
29. One of the benefits of planning is how it___.
 encourages people to work faster
 reduces employee turnover
 eliminates all discriminatory practices
 does none of these
30. _____ is a systematic process of defining problems, evaluating alternatives, and
choosing optimal solutions.
 Problem identification
 Rational decision making
 Benchmarking
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 Multivariable selection
31. In the path-goal theory of leadership, subordinate satisfaction and subordinate
performance would be examples of____ .
 leadership stimuli
 subordinate contingencies
 environmental contingencies
 outcomes
32. According to the _____ theory, companies go through long, simple periods of
environmental stability, followed by short, complex periods of dynamic, fundamental
environmental change, finishing with a return to environmental stability .
 environmental change theory
 theory of environmental dynamics
 punctuated equilibrium theory
 theory of resource scarcity
33. ______ is the measure of the intensity of competitive behavior between companies in
an industry.
 Character of culture
 Competitive barrier
 Character of the rivalry
 Benchmarked rivalries
34. Control is a cybernetic process because it___ .
 has a feedback loop
 is an intermittent process
 is the first management function
 uses automated benchmarks
35. One of the problems with many of the dot-com companies that failed in the mid-
1990s was a lower and middle management adherence to innovation and an expectation
that work would be fun while top management envisioned the company being
profitable and the elimination of unnecessary expenses. These companies lacked in
_______ their organizational cultures.
 empathy
 formalization
 consistency
 broad spans of management
36. The central concern of the job characteristics model (JCM) is _____ .
 internal motivation
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 synergy
 task identification
 time-motion studies
37. Resource similarity and ____ are factors that detennine the extent to which firms
will be in direct competition with each other.
 market commonality
 resource quality
 related diversification
 product differentiation
38. Which of the following is one of the six steps in the rational decision-making
process?
 choose a minimally acceptable alternative solution
 evaluate the effectiveness of the decision
 weight the criteria
 introduce the decision to those who will be impacted by it
39. Companies may determine standards by____ .
 benchmarking other companies
 implementing vertical loading
 using outsourcing
 taking corrective action
40. According to_____ , the most effective management theory or idea depends on the
kinds of problems or situations that managers are facing at a particular time and place.
 Scientific management
 the human relations approach
 administrative management
 the contingency approach
41. McDonald's fast-food restaurants have a well-designed training program for all new
employees. Each new employee is supposed to learn how to perform standardized tasks.
Due to labor shortages in some areas, these new employees begin as soon as they are
hired and do not receive any off-the-job training. This nonconformity to standards
creates____.
 ambiguous group norms
 motivational grapevines
 negative benchmarks
 control loss
42. Inwhich of the following situations would a Gantt chart be appropriate to use?
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 building a bridge
 installing a local area network for a computer system
 rebuilding communities destroyed by natural calamities.
 All of these
43. With ____ departmentalization, most employees report to two bosses.
 geographic
 matrix
 product
 customer
44. Top management is responsible for developing long-term _____ that make clear
how the company will serve customers and position itself against competitors in the
next two to five years.
 standing plans
 tactical plans
 operational plans
 strategic plans
45. The last step in effective planning is to______ .
 maintain flexibility in planning
 develop long-term action plans
 develop goal commitment
 acculturate the employees
46. Job specialization can result in _____ .
 high job satisfaction
 employee boredom
 low employee turnover
 complicated job designs