Business Administration Exam Practice Tests
Course Introduction
Business Administration is a multifaceted course that introduces students to the core principles, theories, and practical applications of managing organizations. Covering topics like management, marketing, finance, human resources, and operations, the course provides a comprehensive overview of how businesses operate in a dynamic global environment. Students learn essential skills in decision-making, strategic planning, leadership, and organizational communication, preparing them for diverse careers in business and for advanced study in management-related fields. The course also emphasizes ethical practices and the importance of adaptability in todays competitive marketplace.
Recommended Textbook
Contemporary Management 9th Edition by Gareth Jones
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18 Chapters
1987 Verified Questions
1987 Flashcards
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Page 2
Chapter 1: Managers and Managing
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Sample Questions
Q1) An outcome of the controlling function should be the ability to measure the organization's performance accurately.
A)True
B)False
Answer: True
Q2) Employees involved in total quality management (TQM) are responsible for finding new and better ways to perform their jobs.
A)True
B)False
Answer: True
Q3) The amount of time that managers spend planning and organizing resources decreases as they ascend the hierarchy within the organization.
A)True
B)False
Answer: False
Q4) Restructuring boosts the morale of employees.
A)True
B)False Answer: False
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Chapter 2: The Evolution of Management
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Sample Questions
Q1) Authority gives managers the right to direct and control their subordinates' behavior to achieve organizational goals.
A)True
B)False
Answer: True
Q2) Which of the following is true of rules?
A) They are mandatory instructions.
B) They are unwritten expectations of behavior.
C) They are informal codes of conduct.
D) They focus more on creating goals rather than achieving them.
E) They are suggestions about best practices.
Answer: A
Q3) When authority is centralized, only managers at the top of the organization make important decisions.
A)True
B)False
Answer: True
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Chapter 3: Values, Attitudes, Emotions, and Culture: The
Manager As a Person
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Sample Questions
Q1) A(n) _____ value is a personal conviction about desired modes of conduct or ways of behaving.
A) terminal
B) strategic
C) nominal
D) extrinsic
E) instrumental
Answer: E
Q2) People with an internal locus of control _____.
A) believe that outside forces are responsible for events in their life
B) do not make attempts to solve problems or change situations
C) tend to be highly unethical and unhelpful
D) believe that they are responsible for their own fate
E) believe that their actions make no difference to the events around them
Answer: D
Q3) Effective managers need to have a high external locus of control.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Ethics and Social Responsibility
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105 Flashcards
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Sample Questions
Q1) The people and groups affected by how a company and its managers behave are called its stakeholders.
A)True
B)False
Q2) After a lengthy investigation, Larry lost his license to practice law on charges of accepting bribes. In all likelihood, Larry probably violated his _____.
A) environmental ethics
B) occupational ethics
C) individual ethics
D) organizational ethics
E) governmental ethics
Q3) Applying the practical rule to analyze a business decision ensures that managers are taking into account the interests of all stakeholders.
A)True
B)False
Q4) Absolute rules exist to determine how individuals should behave in every situation.
A)True
B)False
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Page 6
Chapter 5: Managing Diverse Employees in a Multicultural Environment
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Sample Questions
Q1) Which of the following is true of the salience effect?
A)
The salience effect leads some people to perceive women less positively than they perceive white men.
B)
Salient individuals are less often the object of attention than are other members of a work group.
C)
Individuals who are salient are often perceived to be primarily responsible for outcomes.
D)
Salient individuals are evaluated in a more balanced manner unlike other individuals who are evaluated more extremely in either a positive or a negative direction.
E)
While social status is related to bias, salience is related to stereotyping.
Q2) The disparity between the representation of women and that of men in the workforce is extremely high.
A)True
B)False
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Chapter 6: Managing in the Global Environment
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Sample Questions
Q1) Which of the following is true about mores?
A) They do not bring about serious retribution when violated.
B) They are often enacted into laws.
C) They are identical across all societies.
D) They concern routine social conventions of everyday life.
E) They comprise the body of folklore handed down over generations.
Q2) Societies that have a nurturing orientation, according to Hofstede, value personal relationships highly.
A)True
B)False
Q3) Superstitions are unwritten, informal codes of conduct that prescribe appropriate behavior in particular situations and are considered important by most members of a group or organization.
A)True
B)False
Q4) According to Hofstede, a national culture with a long-term orientation rests on values such as thrift and persistence in achieving goals.
A)True
B)False
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Chapter 7: Decision Making, Learning, Creativity, and Entrepreneurship
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Sample Questions
Q1) When a group of managers makes a decision, the probability that the decision will be implemented successfully decreases.
A)True
B)False
Q2) Decision making in response to opportunities occurs when managers search for ways to improve organizational performance to benefit customers, employees, and other stakeholder groups.
A)True
B)False
Q3) _____ refers to the loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming.
A) Production blocking
B) Satisficing
C) Nonprogrammed decision making
D) Systematic error
E) Illusion of control
Q4) What is the difference between entrepreneurs and intrapreneurs?
Q5) What is a learning organization? List Peter Senge's five principles for creating a learning organization.
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Chapter
8:
The Manager As a Planner and a Strategist
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Sample Questions
Q1) In performing a SWOT analysis, a furniture company realized that the number of competing firms in its industry was increasing. The company would classify this as a(n)
A) strength
B) weakness
C) opportunity
D) threat
E) advantage
Q2) The duration over which a plan is intended to be applied or endured is called
_____.
A) an event compass
B) goal duration
C) plan endurance
D) target visibility
E) a time horizon
Q3) The final step in the planning process of an organization is to determine the organization's mission and goals.
A)True
B)False
Q4) Discuss the five steps involved in implementing an organizational strategy.
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Chapter 9: Value Chain Management: Functional
Strategies for Competitive Advantage
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Sample Questions
Q1) In order to design for ease of production, a company should:
A) adopt a challenging quality goal.
B) design products that have fewer component parts.
C) increase the average number of customer queries solved per day.
D) decrease the number of employees performing a particular task.
E) create an additional product to be supplied with a main product.
Q2) The implementation of customer relationship management (CRM) is a method of improving an organization's _____.
A) inventory
B) organizational structure
C) responsiveness to customers
D) product development plan
E) facility layout
Q3) Which of the following is true about the members of a self-managed team?
A) They learn a single task and are posted at a single job.
B) They require multiple supervisors to monitor them.
C) They are responsible for escalating company's costs.
D) They assume the responsibilities of first-line managers.
E) They create a taller organizational hierarchy, thereby increasing efficiency.
Q4) What are the requirements for a cross-functional team to be successful?
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Chapter 10: Managing Organizational Structure and Culture
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Sample Questions
Q1) A _____ strategy that is aimed at driving down expenditures in all functions usually fares best in a more _____ structure with more conservative norms.
A) differentiation; flexible
B) differentiation; stable
C) low-cost; formal
D) low-cost; informal
E) low-cost; organic
Q2) A cross-functional team refers to a(n):
A) group of employees who specialize in all the tasks required to produce the end product.
B) organizational structure in which each kind of customer is served by a self-contained division.
C) group of managers brought together from different departments to perform organizational tasks.
D) organizational structure in which each region of a country or area of the world is served by a self-contained division.
E) organizational structure in which each product line or business is handled by a self-contained division.
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12
Chapter 11: Organizational Control and Change
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Sample Questions
Q1) The operating margin is calculated by dividing a company's operating profit by sales revenues.
A)True
B)False
Q2) When is an organization in a state of inertia?
A) When it increases the forces for change
B) When it reduces resistance to change
C) When the forces are evenly balanced
D) When the two opposing forces increase together
E) When the two opposing forces decrease together
Q3) Financial information provides managers with all the information required to measure the four building blocks of competitive advantage.
A)True
B)False
Q4) At the input stage, managers use feedback control to anticipate problems before they arise.
A)True
B)False
Q5) Describe Lewin's Force-Field Theory.
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Chapter 12: Human Resource Management
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Sample Questions
Q1) Promising employees are required to undergo various training programs that focus on the skills required to become an effective manager in their respective fields in the future. This is called development.
A)True
B)False
Q2) A subjective appraisal is an appraisal that is based on perceptions of traits, behaviors, or results.
A)True
B)False
Q3) Managers determine the potential of job applicants in performing particular jobs by evaluating their qualifications and previous job experience. This process is called
A) interviewing
B) selection
C) 360-degree appraisal
D) validating
E) reference-checking
Q4) Discuss how performance appraisal and feedback contribute to the effective management of human resources within an organization.
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Chapter 13: Motivation Performance
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Sample Questions
Q1) According to _____ employees will be motivated to perform at a high level and attain their work goals to the extent that high performance and goal attainment allow them to obtain outcomes they desire.
A) Clayton Alderfer's ERG theory
B) McClelland's three-needs theory
C) Herzberg's motivator-hygiene theory
D) Victor H. Vroom's expectancy theory
E) B.F. Skinner's operant condition theory
Q2) _____ reinforcement gives people outcomes they desire when they perform organizationally functional behaviors.
A) Negative
B) Extrinsic
C) Positive
D) Intrinsic
E) Absolute
Q3) According to the expectancy theory, the term instrumentality refers to how desirable each of the outcomes available from a job or organization is to a person.
A)True
B)False
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Page 15
Chapter 14: Leadership
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Sample Questions
Q1) Coercive power is the power that comes from subordinates' and coworkers' respect, admiration, and loyalty.
A)True
B)False
Q2) Managers who effectively influence their subordinates to achieve goals without making dramatic changes are engaging in _____ leadership.
A) transactional
B) transformational
C) transient
D) instrumental
E) virtual
Q3) According to Fiedler, positional power is the amount of legitimate, reward, and coercive power a leader has by virtue of his or her rank in an organization.
A)True
B)False
Q4) Empowerment often increases workers' involvement, motivation, and commitment.
A)True
B)False
Q5) Differentiate between transformational leadership and transactional leadership.
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Chapter 15: Effective Groups and Teams
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Sample Questions
Q1) A group of machinists in a manufacturing plant who report to the same shop foreman is an example of:
A) an informal group.
B) a virtual group.
C) a cross-functional group.
D) a self-managed work group.
E) a command group.
Q2) Differentiate groups from teams and also discuss how the use of groups and teams can help an organization gain a competitive advantage.
Q3) Group identity and healthy competition are consequences of group cohesiveness.
A)True
B)False
Q4) To take advantage of the potential for synergy in groups, managers need to make sure that groups are composed of members who have complementary skills.
A)True
B)False
Q5) Shared rules of conduct that most group members follow are known as group norms.
A)True
B)False
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Chapter 16: Promoting Effective Communication
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Sample Questions
Q1) Filtering occurs when senders withhold part of a message because they think the receiver does not need the information or will not want to receive it.
A)True
B)False
Q2) In which of the following communication networks do members communicate with one another in a predetermined sequence?
A) Chain network
B) Wheel network
C) All-channel network
D) Circle network
E) Grapevine network
Q3) Douglas put together a company newsletter to talk about general topics about the company to all of the employees. This is an example of _____.
A) personal written communication
B) impersonal written communication
C) formal written communication
D) face-to-face communication
E) electronic verbal communication
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Chapter 17: Managing Conflict, Politics, and Negotiation
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Sample Questions
Q1) Discord arising from the incompatibility of goals of different individuals and their attempts to thwart each other's pursuit of objectives is known as:
A) workplace bullying.
B) social loafing.
C) organizational conflict.
D) participative behavior.
E) workplace harassment.
Q2) When conflicts are handled by accommodation, the parties to a conflict try to ignore the problem and do nothing to resolve the disagreement.
A)True
B)False
Q3) The tactics that managers use to increase their power and to use it to gain the support of others within an organization are known as:
A) negotiations.
B) political strategies.
C) status inconsistencies.
D) integrative bargains.
E) legitimate powers
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Chapter 18: Used Advanced Information Technology to Increase Performance
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Sample Questions
Q1) Cloud computing service is an example of an internal IT network.
A)True
B)False
Q2) The stage of the product life cycle in which demand, and therefore sales, for a product is least is the _____ stage.
A) embryonic
B) maturity
C) growth
D) decline
E) saturation
Q3) Which of the following is an example of a programmed decision?
A) Investing in a new type of production technology
B) Developing a new type of consumer product
C) Launching a new type of promotional campaign
D) Expanding sales into a new country
E) Refilling ink into a copier
Q4) The term data refers to raw, unsummarized facts.
A)True
B)False
Q5) List and briefly explain the different stages of a product life cycle.
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