1.

A value chain is the sequence of activities that begins with

raw materials.
A. Outsourcing or insourcing
B. Operations and logistics
C. Delivery of products or services
D. Supply and demand

1. A value chain is the sequence of activities that begins with

raw materials.
A. Outsourcing or insourcing
B. Operations and logistics
C. Delivery of products or services
D. Supply and demand

2. What happens when an effective value chain is created?

A. Customized products are standardized
B. A mission statement is developed
C. Profit margins are increased
D. Total quality management is not required

2. What happens when an effective value chain is created?

A. Customized products are standardized
B. A mission statement is developed
C. Profit margins are increased
D. Total quality management is not required

3. Industry and market analysis, competitor analysis, and social

analysis are examples of which step in the strategic planning
process?
A. Analysis of internal strengths and weaknesses
B. Analysis of mission, vision, and goals
C. Analysis of management implementation
D. Analysis of external opportunities and threats

3. Industry and market analysis, competitor analysis, and social

analysis are examples of which step in the strategic planning
process?
A. Analysis of internal strengths and weaknesses
B. Analysis of mission, vision, and goals
C. Analysis of management implementation
D. Analysis of external opportunities and threats

4. Skilled management, positive cash flow, and well-known

brands are examples of which component of the SWOT
analysis?
A. Opportunities
B. Weaknesses
C. Threats
D. Strengths

4. Skilled management, positive cash flow, and well-known

brands are examples of which component of the SWOT
analysis?
A. Opportunities
B. Weaknesses
C. Threats
D. Strengths

5. According to Michael Porters competitive environment

model, how can suppliers influence strategic planning?
A. Suppliers can reduce manufacturing time and increase
product quality
B. Suppliers can reduce the threat from substitute products
C. Suppliers can reduce the numbers of new entrants in the
market
D. Supplier can reduce technological, demographic, and legal
threats in the environment

5. According to Michael Porters competitive environment

model, how can suppliers influence strategic planning?
A. Suppliers can reduce manufacturing time and increase
product quality
B. Suppliers can reduce the threat from substitute products
C. Suppliers can reduce the numbers of new entrants in the
market
D. Supplier can reduce technological, demographic, and legal
threats in the environment

6. A company offers unique products in its industry to create a

competitive advantage. Which type of strategy is the company
using?
A. Standardization
B. Differentiation
C. Customization
D. Valorization

6. A company offers unique products in its industry to create a

competitive advantage. Which type of strategy is the company
using?
A. Standardization
B. Differentiation
C. Customization
D. Valorization

7. Happy Inc. is a leading provider of family entertainment and

BCD is a broadcasting company with news, cable, and
entertainment networks. Happy Inc. recently acquired BCD in
hopes of boosting its primary business of family entertainment.
Which type of corporate strategy is represented by Happy Incs
purchase of their distribution network?
A. Horizontal benchmarking
B. Strategic alliances
C. Vertical integration
D. Networking

7. Happy Inc. is a leading provider of family entertainment and

BCD is a broadcasting company with news, cable, and
entertainment networks. Happy Inc. recently acquired BCD in
hopes of boosting its primary business of family entertainment.
Which type of corporate strategy is represented by Happy Incs
purchase of their distribution network?
A. Horizontal benchmarking
B. Strategic alliances
C. Vertical integration
D. Networking

8. A local business has provided services to its customers for 40

years. The businesss mission is To give our customers the best
service in town. The owner of the business has had a longstanding dream to franchise the business and become the best
provider of its service in the U.S. What describes the owners
dream?
A. Strategic management
B. Strategic planning
C. Strategic vision
D. Strategic mission

8. A local business has provided services to its customers for 40

years. The businesss mission is To give our customers the best
service in town. The owner of the business has had a longstanding dream to franchise the business and become the best
provider of its service in the U.S. What describes the owners
dream?
A. Strategic management
B. Strategic planning
C. Strategic vision
D. Strategic mission
A set of procedures for making decisions about the

9. What is the first step of organizational strategic planning?

A. Developing a strategic mission
B. Developing external opportunities
C. Developing operational goals
D. Developing internal strengths

9. What is the first step of organizational strategic planning?

A. Developing a strategic mission
B. Developing external opportunities
C. Developing operational goals
D. Developing internal strengths

10. The introduction of statistical tools to analyze the causes of

product defects is associated with which quality improvement
approach?
A. Six sigma
B. Quality Customization
C. Flexible Process
D. Customer Process

10. The introduction of statistical tools to analyze the causes of

product defects is associated with which quality improvement
approach?
A. Six sigma
B. Quality Customization
C. Flexible Process
D. Customer Process

11. What is the principal idea of reengineering?

A. To analyze system failures
B. To improve total quality in all businesses for the benefit of
producers and consumers
C. To focus on creating two-way exchanges with customers
D. To revolutionize key organizational systems and processes

11. What is the principal idea of reengineering?

A. To analyze system failures
B. To improve total quality in all businesses for the benefit of
producers and consumers
(ISO-9001)
C. To focus on creating two-way exchanges with customers
D. To revolutionize key organizational systems and
processes

12. How many defects per million are there at Six Sigma,
assuming a product or process is defect-free 99.99966% of the
time?
A. Less than 5.3
B. Less than 3.4
C. Less than 4.4
D. Less than 6.6

12. How many defects per million are there at Six Sigma,
assuming a product or process is defect-free 99.99966% of the
time?
A. Less than 5.3
B. Less than 3.4
C. Less than 4.4
D. Less than 6.6

13. What is the last step to Demings 14 points of quality

management?
A. To evaluate options provided by management
B. To take action to accomplish the transformation
C. To cease dependence on mass inspection
D. To break down barriers among departments

13. What is the last step to Demings 14 points of quality

management?
A. To evaluate options provided by management
B. To take action to accomplish the transformation
C. To cease dependence on mass inspection
D. To break down barriers among departments

15. Process checklists and project audits are components of

which management process?
A. Quality Cooperative
B. Quality Assurance
C. Quality Control
D. Quality Collaboration

15. Process checklists and project audits are components of

which management process?
A. Quality Cooperative
B. Quality Assurance
C. Quality Control
D. Quality Collaboration

16. What is the main objective of an internal quality audit?

A. To gauge the quality of human resources
B. To assess the quality of control process failures
C. To determine the quality of an organizations executive
management
D. To measure effectiveness of an organizations quality
management system

16. What is the main objective of an internal quality audit?

A. To gauge the quality of human resources
B. To assess the quality of control process failures
C. To determine the quality of an organizations executive
management
D. To measure effectiveness of an organizations quality
management system

17. A company is trying to systematically improve processes by

eliminating nonconformity of their products to product
specifications. The company believes their continuous effort to
reduce variation in their process outputs is key to their business
success
Which quality process is the company utilizing?
A. ISO 9000
B. Six Sigma
C. Reengineering
D. Continuous processing

17. A company is trying to systematically improve processes by

eliminating nonconformity of their products to product
specifications. The company believes their continuous effort to
reduce variation in their process outputs is key to their business
success
Which quality process is the company utilizing?
A. ISO 9000
B. Six Sigma
C. Reengineering
D. Continuous processing

18. Which concept entails all aspects of interaction a company

has with its customers in both sales and service-related
environments?
A. Customer relationship management
B. Customer association organization
C. Customer connection society
D. Customer liaison administration

18. Which concept entails all aspects of interaction a company

has with its customers in both sales and service-related
environments?
A. Customer relationship management
B. Customer association organization
C. Customer connection society
D. Customer liaison administration

19. Dr. Ohmae indicates that customer, corporation, and

competitors should be integrated in a strategic triangle. What
does Dr. Ohmae indicate that an organization can obtain by
doing this?
A. Time-based competition
B. Coordination of mutual adjustment
C. Sustained competitive advantage
D. Decentralization of the organization

19. Dr. Ohmae indicates that customer, corporation, and

competitors should be integrated in a strategic triangle. What
does Dr. Ohmae indicate that an organization can obtain by
doing this?
A. Time-based competition
B. Coordination of mutual adjustment
C. Sustained competitive advantage
D. Decentralization of the organization

20. What designates those who take hands-on responsibility for

creating innovation such as new ideas, products, or methods
within an organization?
A. Intrapreneur
B. Controller
C. Pacesetter
D. Franchiser

20. What designates those who take hands-on responsibility for

creating innovation such as new ideas, products, or methods
within an organization?
A. Intrapreneur
B. Controller
C. Pacesetter
D. Franchiser

21. Why is innovation an important element of

entrepreneurship?
A. Creates unique and different products or services
B. Allows the company to meet industry benchmarks
C. Buffers the impact of changes in the legal environment
D. Reduces marketing costs for the company

21. Why is innovation an important element of

entrepreneurship?
A. Creates unique and different products or services
B. Allows the company to meet industry benchmarks
C. Buffers the impact of changes in the legal environment
D. Reduces marketing costs for the company

22. Most successful entrepreneurs exhibit certain

characteristics. Some entrepreneurs are open-minded, able to
learn quickly, and skilled at conceptualizing. Which
entrepreneurial personality trait is this?
A. Tolerance of risk, ambiguity, and uncertainty
B. Opportunity obsession
C. Competitive intelligence
D. Creativity, self-reliance, and ability to adapt

22. Most successful entrepreneurs exhibit certain

characteristics. Some entrepreneurs are open-minded, able to
learn quickly, and skilled at conceptualizing. Which
entrepreneurial personality trait is this?
A. Tolerance of risk, ambiguity, and uncertainty
B. Opportunity obsession
C. Competitive intelligence
D. Creativity, self-reliance, and ability to adapt

23. Which personality characteristics are believed to contribute

to an entrepreneurs success?
A. Motivation to delegate
B. Status quo obsession
C. Determination
D. Risk aversion

23. Which personality characteristics are believed to contribute

to an entrepreneurs success?
A. Motivation to delegate
B. Status quo obsession
C. Determination
D. Risk aversion

24. Why would an entrepreneurial business choose to use its

own resources versus seeking outside resources in financing a
business venture?
A. To go public
B. To maintain control
C. To spread the risk
D. To fuel large growth

24. Why would an entrepreneurial business choose to use its

own resources versus seeking outside resources in financing a
business venture?
A. To go public
B. To maintain control
C. To spread the risk
D. To fuel large growth

25. Which activity should management use to encourage

entrepreneurial within an organization?
A. Encourage employee to work on informal job assignments
B. Provide employee extra training opportunities
C. Allow employees to form a union
D. Motivate employees by giving extra time off

25. Which activity should management use to encourage

entrepreneurial within an organization?
A. Encourage employee to work on informal job
assignments
B. Provide employee extra training opportunities
C. Allow employees to form a union
D. Motivate employees by giving extra time off

26. What can managers do to encourage useful conflict during a

meeting to lessen inhibition about disagreeing and make the
conflict less personal?
A. Provide a devils advocate
B. Involve others in collaboration
C. Promote affective conflict
D. Evaluate leadership style

26. What can managers do to encourage useful conflict during a

meeting to lessen inhibition about disagreeing and make the
conflict less personal?
A. Provide a devils advocate
B. Involve others in collaboration
C. Promote affective conflict
D. Evaluate leadership style

27. Why is consideration of intentions important in conflict

situations?
A. People tend to think before they act in some situations
B. Selfish intentions of people often leads to poor decision
making
C. People respond based on their interpretation of others
intentions
D. People have habitual patterns of response to conflict
situations

27. Why is consideration of intentions important in conflict

situations?
A. People tend to think before they act in some situations
B. Selfish intentions of people often leads to poor decision
making
C. People respond based on their interpretation of
others intentions
D. People have habitual patterns of response to conflict
situations

28. What describes dimensions of conflict-handling intentions?

A. Comparatively and associativity
B. Collaboration and aggressiveness
C. Cooperativeness and assertiveness
D. Competitiveness and acquiescence

28. What describes dimensions of conflict-handling

intentions?
A. Comparatively and associativity
B. Collaboration and

Confidence
aggressivenessaggressiveness

C. Cooperativeness and assertiveness

D. Competitiveness and acquiescence

29. A supervisor assigned office space to three new employees.

The employees were upset by the offices they were given. The
first had a large office but wanted a window, the second had a
new computer but wanted room for some plants, and the third
had a window but needed high-speed computing to perform the
job well. which conflict resolution technique can the supervisor
use to create a win-win solution for these employees?
A. Problem solving
B. Altering the human variables
C. Expansion of resources
D. Authoritative command

29. A supervisor assigned office space to three new employees.

The employees were upset by the offices they were given. The
first had a large office but wanted a window, the second had a
new computer but wanted room for some plants, and the third
had a window but needed high-speed computing to perform the
job well. which conflict resolution technique can the supervisor
use to create a win-win solution for these employees?
A. Problem solving
B. Altering the human variables
C. Expansion of resources
D. Authoritative command

30. A corporation is experiencing dysfunction in their work

teams. The team leader plans to realign work groups based on
employees work location, and also to alter rules and
regulations in the groups and make additional changes to
shake things up a bit. which conflict-stimulation technique is
the team leader applying?
A. Avoidance
B. Restructuring the organization
C. Knowledge management
D. Communication

30. A corporation is experiencing dysfunction in their work

teams. The team leader plans to realign work groups based on
employees work location, and also to alter rules and
regulations in the groups and make additional changes to
shake things up a bit. which conflict-stimulation technique is
the team leader applying?
A. Avoidance
B. Restructuring the organization
C. Knowledge management
D. Communication

31. Which type of control system is being implemented when

management uses prices, profit centers, and exchange
relationships as a control?
A. Dynamic control
B. Clan control
C. Bureaucratic control
D. Market control

31. Which type of control system is being implemented when

management uses prices, profit centers, and exchange
relationships as a control?
A. Dynamic control
B. Clan control
C. Bureaucratic control
D. Market control

32. What is the fourth step of the control process which ensures
that operations are adjusted to achieve planned results?
A. Measuring performance
B. Comparing performance against standards
C. Taking corrective action
D. Setting performance standards

32. What is the fourth step of the control process which ensures
that operations are adjusted to achieve planned results?
A. Measuring performance
B. Comparing performance against standards
C. Taking corrective action
D. Setting performance standards

33. A corporation recently disbanded its flex time schedule for

employees and now requires that all employees work 9 to 6
Monday thru Friday. The employees banded together in
opposition of the change. What were the employees of the
corporation experiencing?
A. Abilene paradox
B. Timing
C. Peer pressure
D. Apathy

33. A corporation recently disbanded its flex time schedule for

employees and now requires that all employees work 9 to 6
Monday thru Friday. The employees banded together in
opposition of the change. What were the employees of the
corporation experiencing?
A. Abilene paradox
B. Timing
C. Peer pressure
D. Apathy

34. The manager of the human resources department at a

corporation agreed to authorize one-hour lunch breaks for all
employees of the organization as long as the production
manager agreed to shorten the morning and afternoon breaks
of all employees to 15 minutes. Which approach were the
mangers using to enlist cooperation for the change?
A. Negotiation and reward
B. Participation and involvement
C. Education and communication
D. Facilitation and support

34. The manager of the human resources department at a

corporation agreed to authorize one-hour lunch breaks for all
employees of the organization as long as the production
manager agreed to shorten the morning and afternoon breaks
of all employees to 15 minutes. Which approach were the
mangers using to enlist cooperation for the change?
A. Negotiation and reward
B. Participation and involvement
C. Education and communication
D. Facilitation and support

35. A corporation offers concrete incentives such as higher

wages for cooperation with change. Which strategy is the
corporation using to overcome resistance to change?
A. Education and communication
B. Negotiation and reward
C. Participation and involvement
D. Facilitation and support

35. A corporation offers concrete incentives such as higher

wages for cooperation with change. Which strategy is the
corporation using to overcome resistance to change?
A. Education and communication
B. Negotiation and reward
C. Participation and involvement
D. Facilitation and support

36. During a final job interview, the hiring manager asks

candidate about age and national origin. Some of the rejected
candidates suspect they did not get the job because of their
age. Which law covers this type of discrimination?
A. Employment without boundaries (EWB)
B. Equal employment Opportunity (EEO)
C. Fair Hiring of Employees Act (FHEA)
D. Americans with Disabilities Act (ADA)

36. During a final job interview, the hiring manager asks

candidate about age and national origin. Some of the rejected
candidates suspect they did not get the job because of their
age. Which law covers this type of discrimination?
A. Employment without boundaries (EWB)
B. Equal employment Opportunity (EEO)
C. Fair Hiring of Employees Act (FHEA)
D. Americans with Disabilities Act (ADA)

37. After a major budget increase, a company finds itself in a

position to hire 50 new employees. How can strategic human
resource planning benefit the company in this situation?
A. By initiating termination interviews to release unproductive
employees
B. By organizing staffing needs and looking for people with the
right skills
C. By coordinating companywide continuing education
D. By providing annual reviews of staff performance

37. After a major budget increase, a company finds itself in a

position to hire 50 new employees. How can strategic human
resource planning benefit the company in this situation?
A. By initiating termination interviews to release unproductive
employees
B. By organizing staffing needs and looking for people
with the right skills
C. By coordinating companywide continuing education
D. By providing annual reviews of staff performance

38. In the five dimensions of Hackman and Oldhams model of

job design, what does autonomy describe?
A. Important and positive impact on the lives of others
B. Information about job performance
C. Independence and discretion in making decisions
D. Different job activities involving several skills and talents

38. In the five dimensions of Hackman and Oldhams model of

job design, what does autonomy describe?
A. Important and positive impact on the lives of others
B. Information about job performance
C. Independence and discretion in making decisions
D. Different job activities involving several skills and talents

39. A store that has had a high rate of employee theft wants to
use an employee section technique to hire new employees who
are less likely to steal from them. Which type of employee
selection instrument is most appropriate in this situation?
A. Personality test
B. Validity test
C. Reliability test
D. Integrity test

39. A store that has had a high rate of employee theft wants to
use an employee section technique to hire new employees who
are less likely to steal from them. Which type of employee
selection instrument is most appropriate in this situation?
A. Personality test
B. Validity test
C. Reliability test
D. Integrity test

40. When selecting an organizational structure, which key

elements should be considered?
A. Diversity and dynamics
B. Job specification and segmentation
C. Economics and ethics
D. Differentiation and integration

40. When selecting an organizational structure, which key

elements should be considered?
A. Diversity and dynamics
B. Job specification and segmentation
C. Economics and ethics
D. Differentiation and integration

41. Which is the best way to succeed in a matrix organization

structure?
A. Top-down communication
B. Centralized decision making
C. Unity of command
D. Collaboration

41. Which is the best way to succeed in a matrix organization

structure?
A. Top-down communication
B. Centralized decision making
C. Unity of command
D. Collaboration

42. What is a reason to create a boundary less organizational

structure?
A. To limit the amount of collaboration
B. To allow for the delegation of tasks
C. To differentiate position titles
D. To make information available as needed

42. What is a reason to create a boundary less organizational

structure?
A. To limit the amount of collaboration
B. To allow for the delegation of tasks
C. To differentiate position titles
D. To make information available as needed

43. Four smalls, independent organizations each with its own

type of expertise, plan to work together for six months for the
sole purpose of developing a new product that will help each of
them improve their ability to compete with large corporations.
Which type of organization does their relationship characterize?
A. Bureaucratic organization
B. Virtual organization
C. Functional organization
D. Matrix organization

43. Four smalls, independent organizations each with its own

type of expertise, plan to work together for six months for the
sole purpose of developing a new product that will help each of
them improve their ability to compete with large corporations.
Which type of organization does their relationship characterize?
A. Bureaucratic organization
B. Virtual organization
C. Functional organization
D. Matrix organization

44. Which formal structure allows job holders to have a broad

responsibilities, accommodates decentralized and informal
decision making, and values expertise?
A. Organic
B. Flexible
C. Modern
D. Mechanistic

44. Which formal structure allows job holders to have a broad

responsibilities, accommodates decentralized and informal
decision making, and values expertise?
A. Organic
B. Flexible
C. Modern
D. Mechanistic

45. One manager is responsible for all functional areas allowing

the company to sell Product A, and another manager is
responsible for all functional areas that allow the company to
sell Product B. Which type of design this corporation use?
A. Divisional
B. Virtual
C. Horizontal
D. Network

45. One manager is responsible for all functional areas allowing

the company to sell Product A, and another manager is
responsible for all functional areas that allow the company to
sell Product B. Which type of design this corporation use?
A. Divisional
B. Virtual
C. Horizontal
D. Network

46. Which entities protect the rights of employees and potential

employees from discrimination in the workplace?
A. Fair Labor Standards and Worker Adjustment and Retraining
Notification
B. National Labor Relations and Labor Management Relations
C. Labor Management Reporting and Disclosure and Labor
Management Relations
D. Equal Employment Opportunity and Affirmative Action

46. Which entities protect the rights of employees and potential

employees from discrimination in the workplace?
A. Fair Labor Standards and Worker Adjustment and Retraining
Notification
B. National Labor Relations and Labor Management Relations
C. Labor Management Reporting and Disclosure and Labor
Management Relations
D. Equal Employment Opportunity and Affirmative Action

47. During an international executive meeting, an executive

used a word that did not translate into English. What type of
cross-cultural communication barrier is this?
A. Barrier caused by semantics
B. Barrier caused by tone differences
C. Barrier caused by word association
D. Barrier caused by differences among perceptions

47. During an international executive meeting, an executive

used a word that did not translate into English. What type of
cross-cultural communication barrier is this?
A. Barrier caused by semantics
B. Barrier caused by tone differences
C. Barrier caused by word association
D. Barrier caused by differences among perceptions

48. A younger employee becomes irritated by the sound of an

older employees voice and finds it difficult to work on projects
with the older employee. This has cause conflict in the
department. What is the source of conflict between the older
and younger employees?

A. Differing values
B. Structure
C. Communication
D. Personal variables

48. A younger employee becomes irritated by the sound of an

older employees voice and finds it difficult to work on projects
with the older employee. This has cause conflict in the
department. What is the source of conflict between the older
and younger employees?

A. Differing values
B. Structure
C. Communication
D. Personal variables

49. In which situation does religious preference inappropriately

affect decision making?
A. Management approves a religious endorsement that makes
claims the company supports
B. A publicly-held company has a policy limiting financial
donations to one religious group
C. Management provides two religious holidays per year for
every employee regardless of religious affiliation
D. A member of a particular religion starts a business that
benefits members of the religion in the area

49. In which situation does religious preference inappropriately

affect decision making?
A. Management approves a religious endorsement that makes
claims the company supports
B. A publicly-held company has a policy limiting financial
donations to one religious group
C. Management provides two religious holidays per year for
every employee regardless of religious affiliation
D. A member of a particular religion starts a business that
benefits members of the religion in the area

50. A visually-impaired person has been hired to work in the

human resources department of a small company. Which
workplace accommodations would be reasonable in this
situation?
A. The company will provide an interpreter for all face-to-face
interviews
B. The company will purchase a Braille reader and convert
company documents to Braille
C. The company will hire a person to read all documents for the
visually-impaired person
D. The company will purchase a large computer screen and a
Braille keyboard

50. A visually-impaired person has been hired to work in the

human resources department of a small company. Which
workplace accommodations would be reasonable in this
situation?
A. The company will provide an interpreter for all face-to-face
interviews
B. The company will purchase a Braille reader and convert
company documents to Braille
C. The company will hire a person to read all documents for the
visually-impaired person
D. The company will purchase a large computer screen
and a Braille keyboard

51. What is a common component of effective diversity training

programs?
A. Identifying informal networks
B. Building awareness
C. Revealing concerns
D. Completing a skills inventory

51. What is a common component of effective diversity training

programs?
A. Identifying informal networks
B. Building awareness
C. Revealing concerns
D. Completing a skills inventory

52. What denotes skills or expertise in an activity that

constitutes the roots of competitiveness in an organization?

Answer: Core Competencies

1. Strategic Managers
Top-level
Tactical Managers Middle-level
Operational Mgrs. Frontline
2. Steps of Planning:
1.
2.
3.
4.
5.
6.

Establishment of Mission, Vision, and Goals

Analysis of External Opportunities Threats
Analysis of Internal Strengths/ Weaknesses
SWOT Analysis, Strategy formulation
Strategy Implementation
Strategic Co

Examples of S

Skilled management, positive cash

flow, well- known brands

Examples of W

Lack of spare production capacity,

absence of reliable suppliers

Examples of O

New technology, market niche

Examples of T

The possibility competitors might

enter the underserved niche.