Which of the following allows for instantaneous information designed to improve the
management process?
A) Mass customization
B) Global exchange software
C) Collaboration software
D) Enterprise resource planning
E) Shared activity planning
When conducting market research, what type of data is used when existing data is
unavailable or inadequate?
A) Secondary
B) Demographical
C) Global
D) Psychographic
E) Primary
When making decisions about production and allocation, which type of system depends
on individual producers and consumers to create a combination of supply and demand?
A) Planned economy
B) Communism
C) Private economy
D) Market economy
E) Socialism
When making a purchase decision, decisions that include logical evaluation, cost, and
quality are what type of decisions?
A) Evoked
B) Rational
C) Comparison
D) Consideration set
E) Emotional
Which of the following BEST describes a positive trade balance?
A) The economic condition in which a country’s exports exceed its imports
B) The economic condition in which a country’s imports exceed its exports
C) The economic condition in which a country’s inflow of money exceeds its outflow
D) The economic condition in which a country’s outflow of money exceeds its inflow
E) The economic condition in which a country’s natural resources exceed its human
resources
Ford, an American car company, purchased Volvo, which is based in Sweden. What is
this an example of?
A) A multinational firm
B) An independent agency
C) A licensing arrangement
D) A foreign direct investment
E) A strategic alliance
What is the main organizational characteristic of decentralized firms?
A) Flat
B) Tall
C) Diverse
D) Multi-layered
E) Matrix
In interviews with two leadership applicants, a manager tried to determine each person’s
knowledge of the industry, level of energy, and level of self-esteem. With which of the
following concepts of leadership is the manager MOST concerned here?
A) Charismatic leadership
B) Behavioral leadership
C) Situational leadership
D) Trait-based leadership
E) Transformational leadership
Which of the following represents the sales volume where total costs equal total
revenue?
A) Fixed costs
B) Pricing analysis
C) Skimming
D) Variable costs
E) Breakeven
What are an organization’s specialists in law, accounting, and human resource
management commonly called?
A) Profit centers
B) Cost centers
C) Staff members
D) Line members
E) Unit managers
What resources does a sole proprietorship primarily depend on?
A) The corporation
B) Foreign investors
C) Capital markets
D) Those of the owner
E) A committed clientele
Which refers to compensation other than wages and salaries and other incentive pay
offered by a firm to its workers?
A) Profit-sharing
B) Gainsharing
C) Benefits
D) Pay-for-knowledge
E) Variable
Which description identifies the controlling function of the management process?
A) Guiding and motivating employees to meet organizational objectives
B) Determining how to arrange a firm’s resources into a coherent structure
C) Scanning the business environment for threats and opportunities
D) Monitoring a firm’s performance to ensure that it is meeting its goals
E) Determining what an organization needs to do and how best to get it done
Which of the following occurs when two firms combine to create a new company?
A) Acquisition
B) Takeover
C) Venture
D) Divestiture
E) Merger
Which of the following can effectively, but unintentionally, change the formal structure
of an organization?
A) Everyday social interaction of employees
B) Suppliers and vendors
C) Market conditions
D) Members of the Board of Directors
E) Intrapreneuring
Which statement is true regarding charismatic leadership?
A) Charismatic leadership ideas are unpopular among contemporary managers.
B) Many studies have successfully assessed the impact of charismatic leadership.
C) Charismatic leadership is recognized as the most important approach to leadership.
D) Dependence on charismatic leadership can raise serious ethical concerns.
E) Taking over a leadership role from a charismatic leader is often easier than following
a leader lacking in charisma.
Which of the following represents the use of online displays of products, allowing
customers instant access to information and purchasing options?
A) Cybermalls
B) Virtual storefronts
C) E-catalogs
D) Video retailing
E) Electronic storefronts
What is used to provide privacy protection on a wireless wide area network?
A) WiMax
B) Groupware
C) Firewalls
D) Data warehousing
E) Data mining
Which of the following terms refers to finding the most effective techniques for
communicating information about and selling a product?
A) Market share
B) Advertising
C) Promotion
D) Profit management
E) Customer relations
Which of the following BEST describes task-focused leader behavior?
A) Concentration on how tasks should be performed
B) Concentration on which tasks should be performed
C) Concentration on why tasks should be performed
D) Concentration on who should perform which tasks
E) Concentration on when tasks should be performed
What type of skills are needed to understand and work well with people in the
workplace?
A) Human relations skills
B) Technical skills
C) Conceptual skills
D) Motor skills
E) Decision-making skills
Which Act regulated the minimum wage and overtime payable to employees?
A) ERISA
B) Wagner Act
C) Fair Labor Standards Act
D) Taft-Hartley Act
E) Civil Rights Act of 1964
Which of the following BEST describes ISO 14000?
A) The concept that all employees are valuable contributors to a firm’s business and
should be entrusted with decisions regarding their work
B) A certification program attesting to the fact that a factory, laboratory, or office has
improved environmental performance
C) A certification program attesting to the fact that a factory, laboratory, or office has
met the quality management standards of the International Organization for
Standardization
D) A standardized method of evaluating a company’s greenhouse gas emissions
E) A certification program attesting to the fact that a factory, laboratory, or office is
operating under free-trade principles
When conducting a performance appraisal that uses output as a basis for appraisal, what
type of method is being used?
A) Objective
B) Judgmental
C) Ranking
D) Comparison
E) Rating
Which of the following is being practiced when employees can determine how to
accomplish their jobs and results in increased commitment to organizational goals?
A) Social learning
B) Participative management
C) Management by objectives
D) Job enrichment
E) Positive reinforcement
Which of the following allows after-hours trading and protects traders’ anonymity?
A) National Association of Securities Dealers Automated Quotation (NASDAQ)
B) New York Stock Exchange (NYSE)
C) Electronic Communication Networks (ECNs)
D) Standard & Poor’s 500
E) Mutual funds
When a bank’s assets are sold to settle debt during a bank failure, what happens to the
resulting gain?
A) Remaining funds are added to the insurance deposit funds.
B) Remaining funds are deducted to those paid by the insurance deposit funds.
C) Remaining funds are used to buy and consolidate smaller banks.
D) Remaining funds are dispersed to depositors to help offset losses.
E) Remaining funds are returned to the bank to aid in recovery.
Which of the following is the combination of traits used to identify consumers and act
as a common segmentation tool?
A) Psychographic variables
B) Behavioral variables
C) Marketing variables
D) Geo-demographic variables
E) Primary variables
When must an employer have a written affirmative action plan that details how
underused groups will be pursued?
A) When the employer applies for a loan
B) When the employer wants to issue stock
C) When the employer holds government contracts
D) When the employer expands operations internationally
E) When the employer is privately held
What is the advantage of utilizing focus groups for research?
A) They easily generate comparison data with competitors’ products.
B) They offer fact based information on products.
C) They are more structured and are easier to analyze.
D) They allow for more in-depth discussion on complex issues.
E) They are less costly and time consuming.