Organizational Behaviour
Chapter Exam Questions
Course Introduction
Organizational Behaviour explores the dynamics of individuals, groups, and structures within organizational settings, focusing on how these factors influence behavior and performance. The course examines key concepts such as motivation, leadership, team dynamics, communication, power, culture, and change management. Through theoretical frameworks, case studies, and practical applications, students gain an understanding of how to analyze and improve workplace effectiveness, employee satisfaction, and organizational outcomes. The goal is to equip students with insights and skills to manage and thrive within diverse organizational environments.
Recommended Textbook
Contemporary Business 2nd Canadian Edition by Louis E. Boone
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Chapter 1: The Changing Face of Business
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Sample Questions
Q1) ______ is NOT a criteria for making the list of Fortune's most admired companies.
A) People management
B) Social responsibility
C) Quality management
D) All of the above are part of Fortune's criteria.
Answer: A
Q2) Not-for-profit organizations are commonly exempt from federal, provincial, and local taxes.
A)True
B)False
Answer: True
Q3) The right to profit means the ______.
A) risk taker is guaranteed the right to all profits (after taxes) that are earned by the business
B) right to go into or out of business at any point and for any reason
C) government will guarantee a profit
D) right to all benefits resulting from the ownership of property
Answer: A
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Chapter 2: Business Ethics and Social Responsibility
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Sample Questions
Q1) Sexual harassment is divided into two categories: pressure to comply with unwelcome advances for job security and a hostile work environment.
A)True
B)False
Answer: True
Q2) Businesses exercise social responsibility for all of the following reasons EXCEPT ___.
A) stakeholders expect it
B) profits are guaranteed
C) the company's image is enhanced
D) management believes it is the ethical course of action
Answer: B
Q3) Lauren complained to her employer about a sexually explicit calendar hanging on her co-worker's wall. Her employer must ask the co-worker to remove the calendar in order to avoid a claim of sexual harassment.
A)True
B)False
Answer: True
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Chapter 3: Economic Challenges Facing Contemporary Business
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Sample Questions
Q1) When a manager tries to predict prices and quantities that will be sold, he or she is dealing with microeconomics.
A)True
B)False
Answer: True
Q2) Assume the number of new home buyers suddenly increases. The demand curve for homes will likely shift upward and to the right.
A)True
B)False
Answer: True
Q3) Forces of nature, such as a hurricane, can affect the supply curve.
A)True
B)False
Answer: True
Q4) What is fiscal policy? How does fiscal policy affect economic conditions?
Answer: Fiscal policy deals with taxing and spending decisions made by the government. Generally, increases in taxes or decreases in spending will tend to reduce inflation and slow economic growth. Increases in spending or decreases in taxes often have the opposite effect.
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Chapter 4: Competing in World Markets
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Sample Questions
Q1) Along with transportation and energy facilities, access to the Internet is part of a nation's infrastructure.
A)True
B)False
Q2) The objective of an import quota is to ______.
A) prevent dumping
B) raise revenue for the government
C) protect domestic industries
D) ban the importation of certain goods
Q3) One strategy for entering international market is by franchising.
A)True
B)False
Q4) When McDonald's franchises into foreign countries, they are engaging in direct international investment.
A)True
B)False
Q5) Much of Canada's trade with the United States is resource-based.
A)True
B)False
Q6) Mention and explain at least two effects of international trade restrictions.
Page 6
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Chapter 5: Forms of Business Ownership and Organization
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Sample Questions
Q1) A(n) ______ is a type of business owned by only a few shareholders and the shares are generally unavailable to outsiders.
A)sole proprietorship
B)small business
C)corporation
D)merger
E)acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)closed corporation
M)preferred stock
N)franchising
Q2) Majority women-owned small and medium-sized enterprises produce annual commercial revenues of more than $72 billion.
A)True
B)False
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Page 7
Chapter 6: Starting Your Own Business: the
Entrepreneurship Alternative
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Sample Questions
Q1) Globalization has a negative impact on opportunities for entrepreneurs' success, due to global competition.
A)True
B)False
Q2) There is very little the government can do to encourage entrepreneurship.
A)True
B)False
Q3) The process of promoting an innovation within the structure of an existing organization is referred to as
A) intrapreneurship.
B) innovation.
C) financing.
D) creativity, energy and excitement.
Q4) Entrepreneurs enjoy guaranteed job security because no one can fire them.
A)True
B)False
Q5) About 35 percent of large firms do set aside funds to support intrapreneurship.
A)True
B)False
Q6) Describe the differences between entrepreneurs and small-business managers. Page 8
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Page 9
Chapter 7: Management, Leadership, and the Internal Organization
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Sample Questions
Q1) Heather is faced with making a decision about where to locate a store. She has researched the advantages and disadvantages of a downtown location, a mall location, and a suburban location in a strip mall. What should Heather do now?
A) Follow up on the effectiveness of the decision.
B) Develop potential courses of action.
C) Delay making a decision.
D) Select and implement one of her choices.
Q2) Marcus believes in empowering the employees in his department. Most likely, Marcus is a(n) ______ leader.
A) autocratic
B) independent
C) task-oriented
D) democratic
Q3) Mission statements are guideposts by which managers define the organization's desired performance.
A)True
B)False
Q4) Describe each of the management functions.
Q5) Compare the four types of organizational structures.
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Chapter 8: Human Resource Management: From
Recruitment to Labour Relations
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Sample Questions
Q1) Compare on-the-job and off-the-job employee training programs. List examples of each.
Q2) An interviewer may NOT ask job applicants about any of the following EXCEPT
A) marital status.
B) past professional experience.
C) criminal record.
D) medical history.
Q3) Not-for-profit organizations avoid performance appraisals since they are focused on corporate philanthropy.
A)True
B)False
Q4) A complaint that management is violating a provision of a union contract often results in ______.
A) the filing of a grievance
B) a strike
C) mediation
D) a work slowdown
Q5) Motivation leads to goal-directed behaviour.
A)True
B)False
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Chapter 9: Top Performance Through Empowerment,
Teamwork, and Communication
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Sample Questions
Q1) Jahn is a member of a semi-permanent team that performs the day-to-day functions of the organization. Jahn is a member of a(n) ______ team.
A) self-managed
B) work
C) problem-solving
D) cross-functional
Q2) This type of conflict refers to the emotional reactions when disagreements become personal instead of remaining professional.
A) external
B) internal
C) affective
D) cognitive
Q3) Distinguish between negative and positive team norms.
Q4) Giving employees responsibility and authority to make decisions about their work is called ______.
A) empowerment
B) communication
C) teamwork
D) top-down management
Page 12
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Chapter 10: Production and Operations Management
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Sample Questions
Q1) The decision to make, buy, or lease sometimes hinges on the availability of outside suppliers that can dependably meet a firm's standards for quality and quantity.
A)True
B)False
Q2) The ISO 14000 standards help organizations to ensure that their products and services are of high quality.
A)True
B)False
Q3) Yusted's company uses a computer to control its production process. The computer transmits signals to machines for performing the appropriate steps in the correct order. This is an example of ______.
A) computer-aided design
B) computer-aided manufacturing
C) flexible manufacturing
D) computer-integrated manufacturing
Q4) The production process is applicable for not-for-profit organizations.
A)True
B)False
Q5) Discuss computer-aided design and computer-aided manufacturing.
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Chapter 11: Customer-Driven Marketing
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Sample Questions
Q1) A sporting goods store that sells fishing licences at the start of each sport fishing season is creating ______ utility.
A) time
B) form
C) ownership
D) place
Q2) Miguel scans his "preferred card" at a grocery store, the list of items is computed, and the store can offer coupons that are personalized to customer preferences. This is an example of ______.
A) consumer behaviour
B) affinity program
C) frequency marketing
D) product-related segmentation
Q3) Why is pricing strategy considered to be one of the most difficult areas of marketing decision making?
Q4) Describe some of the ways businesses are using relationship marketing to achieve corporate goals.
Q5) Outline the main interpersonal determinants of consumer behaviour.
Q6) Why are marketing strategies important for not-for-profit organizations?
Page 14
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Chapter 12: Product and Distribution Strategies
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Sample Questions
Q1) Describe the three levels of brand loyalty.
Q2) When Kroger's grocery store puts its own line of detergent on the shelf next to Tide, the store is promoting its ______ brand.
A) individual
B) private
C) manufacturer
D) family
Q3) Jan takes her car to Oil Express for an oil change. This is an example of a(n) ______.
A) consumer service
B) specialty product
C) convenience product
D) business service
Q4) The major goal of logistics management is to improve the speed at which goods, services, and information flow through the supply chain.
A)True
B)False
Q5) Define 'marketing intermediary' and explain its importance to an organization.
Q6) Differentiate between business products and consumer products, with examples.
Page 15
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Chapter 13: Promotion and Pricing Strategies
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Sample Questions
Q1) Shannon sells furniture, and a couple in her store tells her they're impressed with a particular living room couch. Shannon should ______.
A) show them a more expensive model
B) persuade them to buy furniture for their entire home
C) point out less-than-stellar aspects of the model
D) attempt to close the sale
Q2) Total cost is the sum of total variable costs and total fixed costs.
A)True
B)False
Q3) Jamal, the service manager for a local Ford dealer, makes a point of sending out letters to all customers asking whether or NOT they are satisfied with their purchase. Jamal is conducting a follow-up.
A)True
B)False
Q4) Profitability objectives are among the most common goals that are stated in most firm's strategic plans.
A)True
B)False
Q5) Differentiate between a pushing and a pulling strategy.
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Chapter 14: Using Technology to Manage Information
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Sample Questions
Q1) Unlike viruses, worms don't need host programs to damage computer systems.
A)True
B)False
Q2) Sales of notebook computers are now exceeding sales of desktop computers.
A)True
B)False
Q3) Which of the following enables senior managers to access the firm's primary databases, often by touching the computer screen, pointing and clicking a mouse, or using voice recognition?
A) decision support system
B) executive support system
C) operational support system
D) expert systems
Q4) Identify four significant trends regarding information systems.
Q5) On-site data backup involves storing software and data in a separate physical location or online on the Internet.
A)True
B)False
Q6) Distinguish between operating systems and application software.
Q7) Briefly define Wi-Fi and locations where it can be found.
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Chapter 15: Understanding Accounting and Financial Statements
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Sample Questions
Q1) Double-entry bookkeeping refers to the process by which accounting transactions are recorded.
A)True
B)False
Q2) If a firm has a current ratio of 2.5, it means that for every $2.50 in ______ it has $1.00 in ______.
A) total assets; total liabilities
B) total assets; current liabilities
C) current assets; current liabilities
D) current assets; total liabilities
Q3) An asset turnover ratio of 2.5 means that for every $1 in assets, the firm generates ______ in sales.
A) $2.00
B) $2.50
C) $3.00
D) $0.50
Q4) The left side of the balance sheet lists claims against assets.
A)True
B)False
Q5) Explain how exchange rates affect financial statements.
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Chapter 16: The Financial System
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Sample Questions
Q1) All bonds are short-term securities issued by the Canadian Treasury and backed by the full faith and credit of the Canadian government.
A)True
B)False
Q2) Virtually all developed countries and many developing countries have stock exchanges.
A)True
B)False
Q3) Which of the following stock exchanges is the most international of all stock markets?
A) New York Stock Exchange (NYSE)
B) Toronto Stock Exchange (TSX)
C) London Stock Exchange
D) National Association of Securities Dealers Automated Quotation System (NASDAQ)
Q4) The vast majority of funds flow through direct transfers.
A)True
B)False
Q5) What are the main reasons why investors purchase common shares?
Q6) Describe the role of the Bank of Canada.
Page 19
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Chapter 17: Financial Management
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Sample Questions
Q1) What is factoring and why is it regarded as a short-term financing option?
Q2) All short-term bank loans are secured, meaning that the borrower pledges specific assets as collateral.
A)True
B)False
Q3) Most firms invest their excess cash in marketable securities which is defined as high-risk securities that either have short-term maturities or can be easily sold in the secondary market.
A)True
B)False
Q4) Define a sovereign wealth fund.
Q5) Determining when a firm will need additional funds is one of the questions that needs answering when preparing a financial plan.
A)True
B)False
Q6) There are two types of divestitures: selloffs and spinoffs. For selloffs, a new firm is created from the assets divested.
A)True
B)False
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