Archives: Quiz

In a typical matrix structure, several satellite organizations are bee-hived around a core firm. Managers should arbitrate decisions when employees cannot resolve their differences alone. Answer: TRUE When employees cannot resolve their differences through mediation, arbitration seems to work best […]

People who learn to empathize with others are less likely to engage in fundamental attribution errors. When an organization’s culture changes, it shifts from one unified condition to a new unified condition with only temporary ambiguity during the transition. Answer: […]

The best way to manage resistance to change among those who will clearly lose out from the change is to introduce coercion practices. According to research, although telecommuting significantly increases employee stress and reduces productivity and job satisfaction, it makes […]

Emotions are communications to ourselves, which serve to put us in a state of readiness. The fundamental attribution error would cause a supervisor to believe that an employee’s lateness is due to factors beyond the employee’s control rather than to […]

Learned capabilities refer to the skills and knowledge that one has actually acquired. In negotiations, information is the cornerstone of effective value creation. Answer: TRUE In negotiations, information is the cornerstone of effective value creation. Feelings of procedural injustice produce […]

Resource scarcity is a potential source of conflict in organizations. According to four-drive theory, social norms, past experience, and personal values translate emotional signals into goal-directed effort. Answer: TRUE Drives produce emotions; our self-concept, social norms, and past experience translate […]

In the achievement-oriented leadership style, leaders expect employees to perform at an optimal level and set subordinate goals. Workforce diversity potentially improves decision making and team performance on complex tasks. Answer: TRUE Diversity is an advantage because it provides diverse […]

Multisource feedback tends to provide more complete and accurate information than feedback from a supervisor alone. High performance work practices build human capital, which improves performance as employees develop skills and knowledge to perform the work. Answer: TRUE High performance […]

Some team-building interventions clarify the team’s performance goals and increase the team’s motivation to accomplish these goals. People with strong Machiavellian values are more likely to engage in organizational politics. Answer: TRUE People with high Machiavellian values seldom trust coworkers […]

Creative ideas can emerge when asking people unfamiliar with the problem to explore the problem with you. Companies can be centralized in some parts of the organization and decentralized in other parts. Answer: TRUE The optimal level of centralization or […]

A significant discovery in equity theory research is that people tend to keep one specific comparison other throughout their working lives. Shared leadership is the view that anyone in the organization may be a leader in various ways and at […]

A company without default risk can issue a ten-year FRN at LIBOR. The coupon is paid and reset semiannually. It is certain that the issuer will never have default risk and will always be able to borrow at LIBOR. The […]

When making an internal or external attribution about a person’s behavior, we tend to look at whether the person has acted this way in the past and in other situations and whether other people have acted similarly in the same […]

Consider Company A with a zero earnings retention ratio and a real growth rate in earnings of %. In an inflationary environment, the company can only pass inflation through its earnings at a flow-through rate of %. So if I […]

When contemplating a career, we compare our images of that job with our current and desired images of ourselves. Relationship conflict focuses on the other party as the source of conflict. Answer: TRUE Relationship conflict focuses on the other party […]

Leadership is the ability to influence, motivate, and enable others to contribute to organizational effectiveness. Emotional dissonance occurs when two or more people with notable differences in emotional intelligence interact with each other. Answer: FALSE Emotional labor creates conflict between […]

A company without default risk can issue a five-year dollar FRN at LIBOR. The coupon is paid and reset semiannually. It is certain that the issuer will never have default risk and will always be able to borrow at LIBOR. […]

You hold a bond with a duration of 17. Its yield is 6% while the cash (one-year) rate is 4%. You expect yields to move down by 10 basis points over the year. a. Give a rough estimate of your […]

In 1990, the French bank, BNP, issued exchangeable bonds denominated in French francs (FF). These are bonds issued for FF 100 on April 1, 1990, with an annual coupon of FF 5, plus an exchange right. The bonds can be […]

Let’s assume that you are a U.S. investor who wants to invest $10,000 in gold. The current price of gold is $400, and you expect it to go up by 10% in the very short-term. You consider buying shares of […]

A German corporation finalized a sale to a Thai client on April 15. The German corporation will deliver some gardening equipment on May 31 and will be paid 345 million baht on June 30. The current spot exchange rate is […]

You are a Swedish investor owning a portfolio of Swedish and American stocks. Their respective benchmarks are the OMX index and the S&P index. There have been no movements during the year (cash flows, sales, or purchase). Dividends of SKr […]

The Japanese stock market has a sigma of 18%, when computed in yen. The U.S. stock market has a sigma of 17% in US$ and the US exchange rate has a sigma of 6%. The correlation between the Japanese stock […]

Continuance commitment motivates employees to increase their work effort beyond expectations. Job satisfaction represents a person’s evaluation of his or her job and work context. Answer: TRUE Job satisfaction is a person’s evaluation of his or her job and work […]

You wish to establish the theoretical futures price on a Euribor contract quoted on the London International Financial Futures Exchange (LIFFE) in London. The futures contract is for a 90-day Euribor rate at expiration of the futures contract. You look […]

You are a foreign exchange dealer. You see the following quote on your Reuter’s screen: a. The spot exchange rate of the Swedish krona is equal to 5.7 per U.S. dollar. The three-month interest rates are 12% in and 8% […]

A _______________ offers its merchandise in the comfort of a consumer’s home. A.General merchandise retailer B.Supermarket C.Food retailer D.Speciality store E.Catalog retailer Catalog retailers offer their merchandise in the comfort of a consumer’s home using a printed or online catalog. […]

EDI (electronic data interchange) allows _________. A.Companies to talk to each other daily B.Customer computers to communicate directly with supplier computers C.Computers to fulfill the buying center function D.Computers to do complex product evaluation with limited human involvement E.All of […]

People who know about many different types of products, initiate discussions about and respond to others’ inquiries are called _____________. A.Opinion leaders B.Market mavens C.Influencers D.Early adopters E.Innovators Market mavens have information about many kinds of products, places to shop, […]

A fixed sum of money paid at regular intervals is a(n) __________. A.Salary B.Non financial incentive C.Intrinsic reward D.Output measure E.Incentive pay A salary is a fixed sum of money paid at regular intervals. Montgomery shops at Mango Nation, a […]

When Bob was asked to describe Sherry, he didn’t describe her by talking about her age or education; rather, his comments about her sense of humor were reflecting her ________. A.Appearance B.Personality C.Income D.Job type E.Aptitude Personal characteristics like sense […]

To use CRM, companies are ____________. A.Redesigning the internal structures to focus on internal and external relationships B.Renegotiating contracts with suppliers to cut price C.Focusing solely on internal relationships D.Focusing solely on external relationships E.Giving huge discounts to long time […]

________ represent(s) a huge segment of the population. There is some evidence that they, in their own minds, do not think they age. A.Generation X B.Generation Y C.Millennials D.Baby boomers E.The silent generation Baby boomers are born between 1946 to […]

Efficiencies in cost of labor, materials, supply chain, or other operational elements lead to ________ leadership. A.Innovative B.Product C.Price D.Service E.Personnel Efficiencies in cost of labor, materials, supply chain, or other operational elements lead to price leadership. Building a positive […]

The marketing manager is considering a new advertising campaign for Guzzle Beverages. He purchases six months of scanner data for Cruncheez Snack Foods, a company that recently ran a similar campaign. He wants to use this information to determine their […]

In the context of _____, the initial approach to a prospective customer should involve the sales representative trying to determine who has the greatest influence or authority in the purchase. A.Opening the relationship B.Handling customer objections C.Closing the sale D.Following […]

Open Sesame is a chain of Thai restaurants located in the western United States. The marketing manager has discovered that there is a growing demand for Spanish food and that Latino Americans spend more money on food away from home […]

Today many CEOs and shareholders expect to measure results of marketing efforts because ___________. A.Marketing metrics today are designed to assign specific results to specific marketing programs B.They are unrealistic in believing that all marketing is measurable C.It is easy […]

You are creating a survey for your company. The question you are currently working on asks your business-to-business customers to describe the ideal purchasing transaction. You are utilizing a(n) __________ question to collect the desired information. A.Behavioral B.Open-ended C.Observational D.Closed-ended […]

______________________ is a good reason to use radio advertising. A.It appeals to multiple senses B.It has a long shelf life C.It is high involvement D.It facilitates easy selectivity E.It has an audio only format Among other advantages, radio as a […]

Entrepreneur magazine reports that ________________ remain the highest-potential startup and growth mechanism for small-business owners, and it is an effective way to expand a distribution channel quickly and efficiently. A.Franchise organizations B.Retailer cooperatives C.Wholesaler cooperatives D.Channel captains E.Partner relationship management […]

Constantly developing the “next new thing” leads to _________ leadership. A.Convenience B.Image C.Innovative D.Price E.Personnel Constantly developing the “next new thing” leads to innovative leadership. For example, Apple. The Food and Drug Administration requires all processed-food companies to provide detailed […]

Internet advertising ______________________. A.Is decreasing in popularity B.Costs are high relative to other advertising channels C.Is more targeted D.Is harder to measure E.Is described by all of the above Internet advertising is growing and there is no indication the demand […]

_______________ is the first phase in the process cycle for CRM. A.Analysis and refinement B.Supplier interface C.Customer interaction D.Knowledge discovery E.Marketing planning The CRM process cycle begins with knowledge discovery, where data gathered is analyzed through various touchpoints. Output of […]

Marketing managers know that creating an effective retail strategy begins with knowledge of _______________. A.Merchandise assortment B. Knowledge of merchandise assortment, level of service, and the retail value proposition is required to create an effective retail strategy. _______ is a […]

Specialty goods hold a unique place in the hierarchy of product classifications in that they __________. A.Focus on price B.Focus on total value C.Are sought out by customers who are willing to search to find this particular kind of product […]

Creamy Cones manufactures prepackaged ice cream cones. It creates the cones, makes the cones, distributes the cones, and markets the cones around the country. Creamy Cones is a ________________. A.National brand B.Private-label brand C.Specialty brand D.Low-cost brand E.House brand National […]

It is not uncommon to see ________ profits in the introductory stage of the product life cycle for an industry. A.High B.No or negative C.Average D.Low E.Marginal cost In the introduction phase, sales are usually low and there are high […]

_________ have become extremely popular as two-income households often lack the time for an in-store retail experience. A.Malls B.Flea markets C.Grocery stores D.Sidewalk retailers E.Catalog retailers Two-income households often lack the time for an in-store retail experience and appreciate the […]

For years, P&G was the channel captain in every channel in which it was a member based on the clout of its extensive stable of No. 1 brands. This is an example of _______________. A.Diversification B.Horizontal integration C.Corporate VMS D.Contractual […]