intro to business - Part 3
1) Managers making ethical decisions may belong to any of the three levels of moral development. Which of the following stages describes the conventional level of moral development?
(a) Following rules only when it is in one’s immediate interest
(b) Valuing rights of others and upholding absolute values and rights, regardless of the majority's opinion
(c) Sticking to rules to avoid physical punishment
(d) Living up to what is expected by people who are close to oneself
(e) Following self-chosen ethical principles even if they violate the law.
2) Direct control is the control that is exercised after the deviations from plans have occurred. Which of the following is not an underlying assumption of direct control?
(a) Performance can be measured
(b) Personal responsibility is absent
(c) The time expenditure is warranted
(d) Mistakes can be discovered in time
(e) The individual who is responsible will take corrective steps.
3) Which function of management involves filling, and keeping filled, the positions in the organization structure?
(a) Organizing
(b) Planning
(c) Staffing
(d) Controlling
(e) Leading.
4) Which of the following is not true about ‘power’?
(a) Power requires no formal position
(b) Power works both ways – downward and upward
(c) Power is derived from many sources
(d) Formal authority is a type of power
(e) Power is a narrow term compared to authority.
5) In an organization, a superior has the right to get tasks accomplished by his subordinates, but the responsibility remains with the superior. This principle which intends to eliminate the practice of “passing the buck”, is known as
(a) Authority on par with responsibility
(b) Hierarchy of authority
(c) Unity of direction
(d) Downward delegation of authority
(e) Unity of command.
6) Robert Owen was one of the prominent contributors to preclassical management thought. Which of the following did Robert Owen advocate/propose?
(a) Division of labor
(b) Legislative reforms to improve working conditions of labor
(c) Profit-sharing plan
(d) Study of management
(e) Emphasis on the importance of business skills for running a business.
7) Informal communication is also referred to as
(a) Grapevine
(b) Buzz
(c) Pipeline
(d) Noise
(e) Uproar.
8) An intervention, in Organization Development (OD) terms, is a systematic attempt to correct an organizational deficiency uncovered through diagnosis. Which of the following intervention techniques is concerned with the interpersonal relations and dynamics operating in work groups?
(a) Technostructural activity
(b) Team building
(c) Skill development
(d) Process consultation
(e) Survey feedback.
9) Why do such companies as Ford, Federal Express, Boeing, or Proctor & Gamble put together cross-functional teams?
(a) Because each member has unique knowledge that adds value to the overall decision
(b) Because it is cheaper than hiring consultants
(c) Because decisions can be reached at almost twice the speed of other decision format styles
(d) Because it diffuses risk (blame) of a wrong decision choice
(e) Because of inadequate availability of manpower.
10) Which of the following is an advantage of the functional structure?
(a) It follows principle of occupational specialization
(b) It permits growth and diversity of products and services
(c) There is better face-to-face communication with local interests
(d) There is improved environmental monitoring
(e) It improves coordination in a region.
11) Which of the following steps in the planning process involves the organization asking the question “in which environment – internal or external – will our plans operate”?
(a) Formulating supporting plans
(b) Comparing alternatives in the light of goals
(c) Considering planning premises
(d) Identifying alternatives
(e) Setting objectives or goals.
12) Sakshi Pathak is considering the following questions as she approaches a planning period: (a) What industries should we get into or out of? (b) In which businesses should the corporation invest money? Which of the following levels would be appropriate to address the questions facing Ms. Pathak?
(a) Corporate level
(b) Business level
(c) Operational level
(d) Functional level
(e) Departmental level.
13) Which of the following managers deal with the actual operations of an organization’s units?
(a) First level
(b) Top level
(c) Middle level
(d) Administrative
(e) Customer support.
14) Which of the following is/are objectives of sensitivity training?
I. It helps individuals gain insights into their behavior and helps them analyze the way they appear to others.
II. It helps individuals develop the skills necessary for diagnosing and understanding of group processes.
III. It exposes managers to theories, principles and new developments in management.
(a) Only (I) above
(b) Only (III) above
(c) Both (I) and (II) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.
15) Douglas McGregor identified two opposing perspectives (Theory X and Theory Y) that he believed typified managerial views of employees and suggested that management must start with the basic question of how managers see themselves in relation to others. Which of the following is not correct about his theory?
(a) Theory X managers view people as having an inherent dislike of work
(b) Theory X managers assume that people are self motivated and do not want to be directed
(c) Theory Y managers assume that the average person will accept, even seek, responsibility
(d) Theory Y managers view people as responsible and conscientious
(e) Theory Y managers assume that people are internally motivated to accomplish the goals and objectives.
16) Inventory is vital to organizations, as it represents considerable costs. Various methods have been developed to control inventory related costs. Which inventory control method minimizes ordering and holding costs, while avoiding stock-out costs?
(a) Mathematical model
(b) Linear programming
(c) Economic order quantity
(d) JIT inventory system
(e) Kanban.
17) Which of the following ratios tests the relationship between the sales and the various assets of a firm?
(a) Activity ratio
(b) Current ratio
(c) Inventory turnover ratio
(d) Return on investment ratio
(e) Debt ratio
18) Which model/theory of leadership does Kavita Ramakrishnan use, when she determines the effectiveness of decisions as measured by group performance/participation; quality and acceptance?
(a) House's Path-Goal Theory
(b) Fiedler’s Contingency approach
(c) Blake and Mouton's Managerial Grid
(d) Hersey and Blanchard's Situational Leadership Model
(e) Vroom and Yetton's Normative Decision Model.
19) The bargaining power of buyers, as described by Porter, is high when
(a) There are only a few players in the industry
(b) Their purchases form a large chunk of the sellers’ total sales
(c) There are no substitutes for products being purchased
(d) Products or services are critical to the buyer’s business
(e) There are great differences in products, in terms of features, manufactured by various suppliers.
20) Performance appraisals are important in an organization because they
I. Provide systematic judgements to support promotions.
II. Provide a basis for coaching.
III. Provide a basis for counseling.
IV. Let subordinates know where they stand with the boss.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (IV) above
(d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
21) Managers at all three levels of management require different kinds of skills to perform the functions associated with their jobs. A major difference in skill requirements between middle level and top-level managers is that
(a) Top managers must generally be more skilled than middle managers in every respect
(b) Top managers require better interpersonal skills but less conceptual skills than middle managers
(c) Top managers generally require better technical and interpersonal skills than middle managers
(d) Top managers generally require higher level conceptual skills but less technical skills than middle managers
(e) Middle managers require better technical and conceptual skills than top managers.
22) The behavioral approach of management thoughts can be classified into
I. Bureaucratic management.
II. Group influences.
III. Hawthorne studies.
IV. Contingency theory.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (II) and (III) above
(d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
23) By studying the various approaches to management analysis, we can understand the concept of management and have a better understanding of managerial functions. Which approach to management emphasizes managing people by understanding their individual psychological needs?
(a) Empirical approach
(b) Decision theory approach
(c) Management science approach
(d) Interpersonal behavior approach
(e) Contingency approach.
24) Immoral management not only ignores ethical concerns, but also actively opposes ethical behavior. Organizations with immoral management is/are characterized by
I. Total concern for company profits only.
II. Laws are regarded as hurdles to be removed.
III. Less inclination to minimize expenditure.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (I) and (III) above
(e) All (I), (II) and (III) above.
25) The communication process is made up of various components. Which of the following is the actual physical product from the source?
(a) Feedback
(b) Filter
(c) Message
(d) Channel
(e) Understanding.
(a) Following rules only when it is in one’s immediate interest
(b) Valuing rights of others and upholding absolute values and rights, regardless of the majority's opinion
(c) Sticking to rules to avoid physical punishment
(d) Living up to what is expected by people who are close to oneself
(e) Following self-chosen ethical principles even if they violate the law.
2) Direct control is the control that is exercised after the deviations from plans have occurred. Which of the following is not an underlying assumption of direct control?
(a) Performance can be measured
(b) Personal responsibility is absent
(c) The time expenditure is warranted
(d) Mistakes can be discovered in time
(e) The individual who is responsible will take corrective steps.
3) Which function of management involves filling, and keeping filled, the positions in the organization structure?
(a) Organizing
(b) Planning
(c) Staffing
(d) Controlling
(e) Leading.
4) Which of the following is not true about ‘power’?
(a) Power requires no formal position
(b) Power works both ways – downward and upward
(c) Power is derived from many sources
(d) Formal authority is a type of power
(e) Power is a narrow term compared to authority.
5) In an organization, a superior has the right to get tasks accomplished by his subordinates, but the responsibility remains with the superior. This principle which intends to eliminate the practice of “passing the buck”, is known as
(a) Authority on par with responsibility
(b) Hierarchy of authority
(c) Unity of direction
(d) Downward delegation of authority
(e) Unity of command.
6) Robert Owen was one of the prominent contributors to preclassical management thought. Which of the following did Robert Owen advocate/propose?
(a) Division of labor
(b) Legislative reforms to improve working conditions of labor
(c) Profit-sharing plan
(d) Study of management
(e) Emphasis on the importance of business skills for running a business.
7) Informal communication is also referred to as
(a) Grapevine
(b) Buzz
(c) Pipeline
(d) Noise
(e) Uproar.
8) An intervention, in Organization Development (OD) terms, is a systematic attempt to correct an organizational deficiency uncovered through diagnosis. Which of the following intervention techniques is concerned with the interpersonal relations and dynamics operating in work groups?
(a) Technostructural activity
(b) Team building
(c) Skill development
(d) Process consultation
(e) Survey feedback.
9) Why do such companies as Ford, Federal Express, Boeing, or Proctor & Gamble put together cross-functional teams?
(a) Because each member has unique knowledge that adds value to the overall decision
(b) Because it is cheaper than hiring consultants
(c) Because decisions can be reached at almost twice the speed of other decision format styles
(d) Because it diffuses risk (blame) of a wrong decision choice
(e) Because of inadequate availability of manpower.
10) Which of the following is an advantage of the functional structure?
(a) It follows principle of occupational specialization
(b) It permits growth and diversity of products and services
(c) There is better face-to-face communication with local interests
(d) There is improved environmental monitoring
(e) It improves coordination in a region.
11) Which of the following steps in the planning process involves the organization asking the question “in which environment – internal or external – will our plans operate”?
(a) Formulating supporting plans
(b) Comparing alternatives in the light of goals
(c) Considering planning premises
(d) Identifying alternatives
(e) Setting objectives or goals.
12) Sakshi Pathak is considering the following questions as she approaches a planning period: (a) What industries should we get into or out of? (b) In which businesses should the corporation invest money? Which of the following levels would be appropriate to address the questions facing Ms. Pathak?
(a) Corporate level
(b) Business level
(c) Operational level
(d) Functional level
(e) Departmental level.
13) Which of the following managers deal with the actual operations of an organization’s units?
(a) First level
(b) Top level
(c) Middle level
(d) Administrative
(e) Customer support.
14) Which of the following is/are objectives of sensitivity training?
I. It helps individuals gain insights into their behavior and helps them analyze the way they appear to others.
II. It helps individuals develop the skills necessary for diagnosing and understanding of group processes.
III. It exposes managers to theories, principles and new developments in management.
(a) Only (I) above
(b) Only (III) above
(c) Both (I) and (II) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.
15) Douglas McGregor identified two opposing perspectives (Theory X and Theory Y) that he believed typified managerial views of employees and suggested that management must start with the basic question of how managers see themselves in relation to others. Which of the following is not correct about his theory?
(a) Theory X managers view people as having an inherent dislike of work
(b) Theory X managers assume that people are self motivated and do not want to be directed
(c) Theory Y managers assume that the average person will accept, even seek, responsibility
(d) Theory Y managers view people as responsible and conscientious
(e) Theory Y managers assume that people are internally motivated to accomplish the goals and objectives.
16) Inventory is vital to organizations, as it represents considerable costs. Various methods have been developed to control inventory related costs. Which inventory control method minimizes ordering and holding costs, while avoiding stock-out costs?
(a) Mathematical model
(b) Linear programming
(c) Economic order quantity
(d) JIT inventory system
(e) Kanban.
17) Which of the following ratios tests the relationship between the sales and the various assets of a firm?
(a) Activity ratio
(b) Current ratio
(c) Inventory turnover ratio
(d) Return on investment ratio
(e) Debt ratio
18) Which model/theory of leadership does Kavita Ramakrishnan use, when she determines the effectiveness of decisions as measured by group performance/participation; quality and acceptance?
(a) House's Path-Goal Theory
(b) Fiedler’s Contingency approach
(c) Blake and Mouton's Managerial Grid
(d) Hersey and Blanchard's Situational Leadership Model
(e) Vroom and Yetton's Normative Decision Model.
19) The bargaining power of buyers, as described by Porter, is high when
(a) There are only a few players in the industry
(b) Their purchases form a large chunk of the sellers’ total sales
(c) There are no substitutes for products being purchased
(d) Products or services are critical to the buyer’s business
(e) There are great differences in products, in terms of features, manufactured by various suppliers.
20) Performance appraisals are important in an organization because they
I. Provide systematic judgements to support promotions.
II. Provide a basis for coaching.
III. Provide a basis for counseling.
IV. Let subordinates know where they stand with the boss.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (IV) above
(d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
21) Managers at all three levels of management require different kinds of skills to perform the functions associated with their jobs. A major difference in skill requirements between middle level and top-level managers is that
(a) Top managers must generally be more skilled than middle managers in every respect
(b) Top managers require better interpersonal skills but less conceptual skills than middle managers
(c) Top managers generally require better technical and interpersonal skills than middle managers
(d) Top managers generally require higher level conceptual skills but less technical skills than middle managers
(e) Middle managers require better technical and conceptual skills than top managers.
22) The behavioral approach of management thoughts can be classified into
I. Bureaucratic management.
II. Group influences.
III. Hawthorne studies.
IV. Contingency theory.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (II) and (III) above
(d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
23) By studying the various approaches to management analysis, we can understand the concept of management and have a better understanding of managerial functions. Which approach to management emphasizes managing people by understanding their individual psychological needs?
(a) Empirical approach
(b) Decision theory approach
(c) Management science approach
(d) Interpersonal behavior approach
(e) Contingency approach.
24) Immoral management not only ignores ethical concerns, but also actively opposes ethical behavior. Organizations with immoral management is/are characterized by
I. Total concern for company profits only.
II. Laws are regarded as hurdles to be removed.
III. Less inclination to minimize expenditure.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (I) and (III) above
(e) All (I), (II) and (III) above.
25) The communication process is made up of various components. Which of the following is the actual physical product from the source?
(a) Feedback
(b) Filter
(c) Message
(d) Channel
(e) Understanding.