MGT 503 Principles Of Management - 01
Vu- mock up exam
Questions and Answers
- 1.
Which level of management makes decisions about the activities such as acquiring othercompanies, investing in research and development and building new plants?
- A.
Top managers
- B.
Middle managers
- C.
First-line managers
- D.
Non-managerial employees
Correct Answer
A. Top managersExplanation
Top managers are responsible for making strategic decisions that have a long-term impact on the organization. They are involved in activities such as acquiring other companies, investing in research and development, and building new plants. These decisions require a high level of expertise and authority, which is typically possessed by top managers. Middle managers and first-line managers are more focused on implementing the decisions made by top managers and overseeing day-to-day operations. Non-managerial employees do not have the authority to make such decisions.Rate this question:
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- 2.
A supervisor is teaching an employee to use a piece of equipment safely. Which of thefollowing skills are most important for the manager?
- A.
Technical skills
- B.
Conceptual skills
- C.
Conceptual skills
- D.
Strategic skills
Correct Answer
A. Technical skillsExplanation
In order to teach an employee to use a piece of equipment safely, the supervisor needs to have strong technical skills. These skills involve having a deep understanding of how the equipment works, being familiar with its features and functions, and being able to troubleshoot any issues that may arise. Without technical skills, the supervisor would not be able to effectively teach the employee how to use the equipment safely and efficiently.Rate this question:
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- 3.
The major contribution of the Industrial Revolution was the substitution of _______ forhuman power.
- A.
Machine power
- B.
Electricity
- C.
Water power
- D.
Critical thinking
Correct Answer
A. Machine powerExplanation
During the Industrial Revolution, there was a significant shift from relying on human power to using machines. This change revolutionized various industries by increasing productivity and efficiency. Machines were able to perform tasks more quickly and with greater precision than humans, leading to the substitution of human power with machine power. This transformation marked a turning point in history and laid the foundation for modern industrialization.Rate this question:
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- 4.
All of the following are characteristics of total quality management EXCEPT:
- A.
Concern for continual improvement
- B.
Improvement in quality of everything the organization does
- C.
Intense focus on the competition
- D.
Accurate measurement
Correct Answer
C. Intense focus on the competitionExplanation
Total quality management (TQM) is a management approach that emphasizes continuous improvement, quality in all aspects of the organization, and accurate measurement. It focuses on meeting and exceeding customer expectations by constantly improving processes and products. However, TQM does not prioritize intense focus on the competition. Instead, it emphasizes internal processes and customer satisfaction rather than solely focusing on what competitors are doing. TQM aims to create a culture of quality within the organization, where employees are empowered to make improvements and deliver high-quality products and services.Rate this question:
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- 5.
For a company such as PIA, a bank would be an example of what kind of factor in itsspecific environment?
- A.
Competitor
- B.
Special-interest group
- C.
Supplier
- D.
Government agency
Correct Answer
C. SupplierExplanation
A bank would be an example of a supplier in the specific environment of a company like PIA. A supplier is an external entity that provides goods or services to a company, and in this case, a bank supplies financial services and products to PIA.Rate this question:
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- 6.
Which of the following is NOT an example of an organization’s general environment?
- A.
Economic conditions
- B.
Political conditions
- C.
Social conditions
- D.
Organization culture
Correct Answer
D. Organization cultureExplanation
Organization culture is not an example of an organization's general environment because it refers to the shared values, beliefs, and norms within an organization, which are specific to that particular organization. On the other hand, the general environment includes external factors that affect all organizations, such as economic conditions, political conditions, and social conditions.Rate this question:
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- 7.
If a company provides job-share programs, builds a day-care facility, and only usesrecycled paper, it can be termed as:
- A.
Fulfilling its social obligation
- B.
Socially aware
- C.
Socially image conscious
- D.
Socially responsive
Correct Answer
D. Socially responsiveExplanation
A company that provides job-share programs, builds a day-care facility, and uses recycled paper is considered socially responsive. This term implies that the company is actively aware of and responsive to the social needs and concerns of its employees and the wider community. By implementing these initiatives, the company demonstrates a commitment to social responsibility and sustainability, showing that it is conscious of its impact on society and actively taking steps to address it.Rate this question:
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- 8.
If a company is paying minimum wages, when necessary, and applying the minimumstandard to laws, such as affirmative action, it would be said to have fulfilled its:
- A.
Social obligation
- B.
Social responsibility
- C.
Social responsiveness
- D.
Social expectation
Correct Answer
A. Social obligationExplanation
The correct answer is social obligation. This is because a company that pays minimum wages and follows the minimum standards required by laws, such as affirmative action, is fulfilling its basic responsibilities towards society. By paying fair wages and adhering to legal requirements, the company is meeting its social obligation to provide a minimum level of support and fairness to its employees and society as a whole.Rate this question:
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- 9.
Which of the following describes a global marketplace?
- A.
The entire world is a marketplace
- B.
National borders are irrelevant
- C.
The potential for organizations to grow expands dramatically
- D.
All of the given options
Correct Answer
D. All of the given optionsExplanation
A global marketplace refers to a situation where the entire world is seen as a marketplace, where national borders are irrelevant, and organizations have the potential to grow dramatically. In this context, all of the given options accurately describe a global marketplace.Rate this question:
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- 10.
Which one of the following items best reflects the dimension of different cultures thatexemplifies the extent to which individuals expect a hierarchical structure?
- A.
Uncertainty avoidance
- B.
Power distance
- C.
Masculinity/femininity
- D.
Long-term/short-term orientation
Correct Answer
B. Power distanceExplanation
Power distance is the dimension of different cultures that exemplifies the extent to which individuals expect a hierarchical structure. It refers to the degree to which people in a society accept and expect power and authority to be distributed unequally. In cultures with high power distance, there is a strong emphasis on hierarchy and individuals accept and respect authority figures. In contrast, cultures with low power distance value equality and have a more egalitarian approach to authority. Therefore, power distance is the best reflection of the extent to which individuals expect a hierarchical structure in different cultures.Rate this question:
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- 11.
Attempting to understand the signs of some problem comes under which of the followingstage?
- A.
Scanning stage
- B.
Categorization stage
- C.
Diagnosis stage
- D.
Implementation stage
Correct Answer
B. Categorization stageExplanation
The categorization stage involves organizing and classifying information into different categories or groups. In the context of understanding the signs of a problem, this stage would involve identifying and categorizing the signs or symptoms of the problem. This helps in organizing the information and making it easier to analyze and diagnose the problem accurately. Therefore, attempting to understand the signs of some problem falls under the categorization stage.Rate this question:
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- 12.
Which of the following is NOT a valid assumption about rationality?
- A.
The problem is clear and unambiguous
- B.
Preferences are constantly changing
- C.
A single well-defined goal is to be achieved
- D.
Preferences are clear
Correct Answer
B. Preferences are constantly changingExplanation
The correct answer is "Preferences are constantly changing." This assumption implies that individuals' preferences are not stable and can fluctuate over time. However, rationality assumes that individuals make decisions based on their consistent and stable preferences. Therefore, the assumption that preferences are constantly changing contradicts the concept of rationality.Rate this question:
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- 13.
Lower-level managers typically confront what type of decision making?
- A.
Unique
- B.
Non-routine
- C.
Programmed
- D.
Non-programmed
Correct Answer
C. ProgrammedExplanation
Lower-level managers typically confront programmed decision making. Programmed decisions are routine and repetitive decisions that can be made using established rules, procedures, and policies. These decisions are usually made in response to recurring situations and do not require much creativity or judgment. Lower-level managers often handle day-to-day operational decisions that can be standardized and automated, such as scheduling, inventory management, and quality control. These decisions can be programmed because they follow predetermined guidelines and do not involve unique or non-routine situations.Rate this question:
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- 14.
The people at the bottom of the organization generally deal with repetitive and familiarproblems such as workers who are late or machinery that breaks down. As a result, most ofthe decisions made by first line supervisors are:
- A.
Ill-structured decisions
- B.
Novel decisions
- C.
Programmed decisions
- D.
Non-programmed decisions
Correct Answer
C. Programmed decisionsExplanation
First line supervisors in an organization are responsible for handling repetitive and familiar problems such as late workers or machinery breakdowns. These types of problems are usually encountered frequently and have established procedures or guidelines for resolving them. Therefore, the decisions made by first line supervisors in these situations are programmed decisions, as they follow a predetermined set of rules or protocols to address these issues efficiently and effectively.Rate this question:
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- 15.
An increased commitment to a previous decision despite evidence that it may have beenwrong is referred to:
- A.
Economies of commitment
- B.
Escalation of commitment
- C.
Dimensional commitment
- D.
Expansion of commitment
Correct Answer
B. Escalation of commitmentExplanation
Escalation of commitment refers to the tendency to continue investing resources in a decision or course of action, even when evidence suggests that it may be wrong or ineffective. This can occur due to various reasons, such as the desire to justify past investments, fear of admitting failure, or the belief that additional resources will eventually lead to success. This behavior can be detrimental as it can lead to further losses and prevent individuals or organizations from making more rational decisions based on new information.Rate this question:
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- 16.
When managers avoid the rational decision-making model and find ways to satisfice, theyare following which of the following concept?
- A.
Jurisprudence
- B.
Bounded rationality
- C.
Least-squared exemptions
- D.
Self-motivated decisions
Correct Answer
B. Bounded rationalityExplanation
Bounded rationality refers to the concept of making decisions that are rational within the limits of available information, time, and cognitive abilities. When managers avoid the rational decision-making model and instead choose to satisfice, they are acknowledging the constraints they face and opting for a decision that is "good enough" rather than seeking the optimal solution. This concept recognizes that decision-making in real-world situations is often complex and requires managers to make judgments based on incomplete information and limited resources.Rate this question:
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- 17.
Which of the following means that you achieve the best possible balance among severalgoals?
- A.
Sacrificing
- B.
Optimizing
- C.
Satisficing
- D.
Minimizing
Correct Answer
B. OptimizingExplanation
Optimizing means achieving the best possible balance among several goals. It involves making the most effective use of resources to maximize the desired outcomes. This approach focuses on finding the optimal solution that provides the highest overall benefit, taking into account various factors and trade-offs. By optimizing, one aims to achieve the best possible outcome while considering multiple objectives and constraints.Rate this question:
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- 18.
If a group’s desire for consensus and cohesiveness overwhelms its desire to reach the bestpossible decision, it is called:
- A.
Groupthink
- B.
Group pressure
- C.
Group decision
- D.
Group dynamics
Correct Answer
A. GroupthinkExplanation
Groupthink refers to a phenomenon where a group prioritizes consensus and harmony over critical thinking and making the best decision. In this situation, the group members may suppress dissenting opinions or alternative viewpoints in order to maintain unity within the group. This can lead to flawed decision-making and a failure to consider all available information or perspectives. Groupthink can occur when there is a high level of conformity and pressure to conform within the group, resulting in a lack of independent thinking and analysis.Rate this question:
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- 19.
A form of group decision making in which a group is used to achieve a consensus of expertopinion is called:
- A.
Interacting group
- B.
Delphi technique
- C.
Nominal group
- D.
Brainstorming
Correct Answer
B. Delphi techniqueExplanation
The Delphi technique is a form of group decision making that aims to achieve a consensus of expert opinions. It involves a series of questionnaires or surveys sent to a panel of experts who provide their opinions anonymously. The responses are then compiled and shared with the group, and the process is repeated until a consensus is reached. This method allows for the experts to share their knowledge and perspectives without being influenced by others, ultimately leading to a more informed and unbiased decision-making process.Rate this question:
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- 20.
Which of the following is the process of developing assumptions on premises about thefuture that managers can use in planning or decision making?
- A.
Benchmarking
- B.
Project management
- C.
Forecasting
- D.
Scheduling
Correct Answer
C. ForecastingExplanation
Forecasting is the process of developing assumptions on premises about the future that managers can use in planning or decision making. It involves analyzing past data, trends, and patterns to make predictions and projections about future events or outcomes. By using forecasting techniques, managers can anticipate potential changes and make informed decisions to achieve their goals. Benchmarking is a process of comparing performance metrics with industry best practices, project management is the practice of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria, and scheduling involves creating a timeline or timetable for completing tasks or activities.Rate this question:
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Aug 25, 2023Quiz Edited by
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Jun 15, 2009Quiz Created by
Zubair
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