Management Final Exam Practice

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
Learn about Our Editorial Process
| By Glencolborn
G
Glencolborn
Community Contributor
Quizzes Created: 2 | Total Attempts: 3,081
Questions: 138 | Attempts: 2,122

SettingsSettingsSettings
Management Final Exam Practice - Quiz

This exam will randomly generate 40 questions out of the 133 question available on the Exams 1 through 4. Enter your name and click start to being. Come back to this url to take another test. The url is: https://www.proprofs.com/quiz-school/story.php?title=exams-14-questions


Questions and Answers
  • 1. 

    Lynne is responsible for training in a South Brunswick School District. Her job requirements are not associated with any particular management specialty. Lynne is working in what functional area? A) Operations B) Finance C) Production D) Marketing E) Administration

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    Lynne is working in the functional area of Administration. This is because her job responsibilities are related to training, which is typically associated with the administrative function of an organization.

    Rate this question:

  • 2. 

    Leading involves each of the following EXCEPT A) understanding individual and interpersonal processes. B) motivating and influencing others. C) technical understanding and control. D) interpersonal relations and communication. E) managing work groups and teams.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    C.
    Explanation
    The correct answer is C) technical understanding and control. Leading involves understanding individual and interpersonal processes, motivating and influencing others, interpersonal relations and communication, and managing work groups and teams. However, it does not necessarily require technical understanding and control, as these skills are more closely related to the role of a manager or supervisor rather than a leader.

    Rate this question:

  • 3. 

    Aviation officers in the Army know how to fly and manage people. Flying is one of their ____ skills. A) human B) organizational C) conceptual D) technical E) None of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    D.
    Explanation
    The correct answer is D) technical. Aviation officers in the Army are trained in the technical skills required for flying an aircraft. This includes knowledge of flight controls, navigation systems, and emergency procedures. Additionally, they are also responsible for managing the technical aspects of operating an aircraft, such as maintenance and inspections.

    Rate this question:

  • 4. 

    The top managers of a company are most likely to need ____ skills. A) technical B) interpersonal C) conceptual D) diagnostic E) analytic

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    C.
    Explanation
    The top managers of a company are most likely to need conceptual skills. Conceptual skills refer to the ability to think abstractly, understand complex situations, and see the big picture. Top managers are responsible for setting the overall direction and strategy of the company, making decisions that affect the entire organization. They need to be able to analyze and understand complex problems, identify trends and patterns, and develop innovative solutions. Interpersonal skills are important for building relationships and collaborating with others, but conceptual skills are crucial for top managers to effectively lead and make strategic decisions.

    Rate this question:

  • 5. 

    Interpersonal skills enable managers A) to take an overall view of how the parts of the organization interrelate and to think strategically. B) to solve detailed problems for their subordinates. C) to understand and interact effectively with others in the organization. D) to diagnose organizational problems correctly. E) None of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    C.
    Explanation
    Interpersonal skills enable managers to understand and interact effectively with others in the organization. This means that managers with strong interpersonal skills are able to communicate, collaborate, and build relationships with their team members, colleagues, and other stakeholders. By doing so, they can create a positive work environment, resolve conflicts, motivate their employees, and foster teamwork. These skills are crucial for managers to establish trust and credibility, as well as to effectively lead and manage their teams.

    Rate this question:

  • 6. 

    What was Henri Fayol attempting to do when he developed his principles of management? A) Provide managers with an exhaustive list of management principles that were not to be violated B) Develop the foundation for contemporary organization theory C) Specify four basic functions in which managers should engage D) Systematize the practice of management by giving managers guidelines he had found useful E) Propose a theory about subordinates' acceptance of authority

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    D.
    Explanation
    Henri Fayol was attempting to systematize the practice of management by giving managers guidelines he had found useful when he developed his principles of management.

    Rate this question:

  • 7. 

    In systems theory, the raw materials, human resources, and financial resources of an organization are examples of A) inputs. B) feedback loops. C) transformation processes. D) outputs. E) sources of error.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    A.
    Explanation
    The raw materials, human resources, and financial resources of an organization are examples of inputs. Inputs are the resources or materials that are used by an organization to produce goods or services. In this case, these resources are used as inputs in the transformation process to create the desired outputs.

    Rate this question:

  • 8. 

    Sweden's Hexagon acquired Intergraph. Hexagon is attempting to produce more with the two subsystems working together than they would alone. This is an example of A) entropy. B) feedback loops. C) transformation processes. D) inputs. E) synergy.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    The correct answer is E) synergy. Synergy refers to the combined effect or cooperation of multiple elements, resulting in a greater outcome than the sum of their individual effects. In this case, Hexagon is acquiring Intergraph in order to utilize the strengths and capabilities of both companies' subsystems, with the goal of achieving a higher level of productivity and efficiency than they would have achieved separately. This aligns with the concept of synergy, as they are seeking to produce more by working together.

    Rate this question:

  • 9. 

    Emilio says, "Employees and situations are unique. Sometimes I get good results by trying one approach, sometimes I decide to do something completely different." Emilio is using which of the following? A) Systems theory B) Administrative management C) Indecisive management D) Theory X E) The contingency perspective

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    Emilio is using the contingency perspective. This perspective recognizes that there is no one-size-fits-all approach to management and that different situations require different approaches. Emilio acknowledges that employees and situations are unique and that he adapts his approach accordingly, sometimes trying one approach and sometimes doing something completely different. This aligns with the principles of the contingency perspective, which emphasizes the importance of adapting management practices to fit the specific circumstances.

    Rate this question:

  • 10. 

    The ____ environment of a business that manufactures top-of-the-line cabinets includes computer-assisted design software that helps to convert wood and people's ideas into lovely, functional cabinets. A) legal B) sociocultural C) technological D) political E) economic

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    C.
    Explanation
    The correct answer is C) technological. The use of computer-assisted design software in the manufacturing process indicates the presence of technological advancements in the business environment. This software helps in converting wood and ideas into functional cabinets, highlighting the role of technology in the manufacturing process.

    Rate this question:

  • 11. 

    Investors were worried about the stock market when unemployment was 10%, companies were slow to invest, and government debt was still increasing. These are aspects of which environment? A) Legal B) Sociocultural C) Technological D) Political E) Economic

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    Economic. The given aspects of high unemployment, slow investment, and increasing government debt are all indicators of the economic environment. They reflect the state of the economy and its impact on investors' concerns about the stock market.

    Rate this question:

  • 12. 

    For a company such as Johnson & Johnson that makes personal care products, medications, and medical supplies, which of the following would be considered as customers? A) Hospitals B) Pharmacies C) Families D) Doctors E) All of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    All of these. Johnson & Johnson serves a wide range of customers, including hospitals, pharmacies, families, and doctors. As a company that produces personal care products, medications, and medical supplies, it is essential for Johnson & Johnson to cater to the needs of various customer groups. Hospitals and pharmacies purchase their products for use in patient care, families buy their personal care products for everyday use, and doctors recommend and prescribe their medications to patients. Therefore, all of these options can be considered as customers for Johnson & Johnson.

    Rate this question:

  • 13. 

    Which of the following is an example of an owner of a business? A) Individual investors who buy stock in that business B) Partners C) People who have legal property rights to that business D) Individuals who finance and start up a new business E) All of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    The correct answer is E) All of these. This is because all of the options mentioned - individual investors who buy stock in the business, partners, people who have legal property rights to the business, and individuals who finance and start up a new business - can be considered owners of a business in different capacities.

    Rate this question:

  • 14. 

    Wine produced in California and sold in France is an example of A) importing/exporting. B) licensing. C) a joint venture/strategic alliance. D) direct investment. E) global outsourcing.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    A.
    Explanation
    Wine produced in California and sold in France is an example of exporting. Exporting refers to the act of selling goods or services produced in one country to another country. In this case, the wine produced in California is being sold in France, indicating that it is being exported from the United States to France.

    Rate this question:

  • 15. 

    When Sikorsky and Boeing agreed to produce a new helicopter for the Department of Defense, it was an example of A) licensing. B) a strategic alliance. C) exporting. D) importing. E) maquiladoras.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    The correct answer is B) a strategic alliance. This is because Sikorsky and Boeing agreed to collaborate and work together to produce a new helicopter for the Department of Defense. A strategic alliance refers to a partnership between two or more companies who come together to achieve a common goal or objective. In this case, Sikorsky and Boeing formed a strategic alliance to meet the needs of the Department of Defense by jointly developing and manufacturing a new helicopter.

    Rate this question:

  • 16. 

    The US Commerce Department has limited the amount of textiles that can be imported from China. This is an example of a(n) A) quota. B) strategic alliance. C) joint venture. D) franchise agreement. E) export restraint agreement.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    A.
    Explanation
    The correct answer is A) quota. A quota is a restriction on the quantity of goods that can be imported or exported. In this case, the US Commerce Department has limited the amount of textiles that can be imported from China, which aligns with the definition of a quota.

    Rate this question:

  • 17. 

    Which of the following represents an economic community? A) North American Free Trade Agreement (NAFTA) B) North Atlantic Treaty Organization (NATO) C) United Nations (UN) D) International Monetary Fund (IMF) E) All of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    A.
    Explanation
    An economic community refers to a group of countries that have agreed to promote economic integration and cooperation. The North American Free Trade Agreement (NAFTA) represents an economic community as it is an agreement between the United States, Canada, and Mexico to eliminate trade barriers and promote economic cooperation. The other options, North Atlantic Treaty Organization (NATO), United Nations (UN), and International Monetary Fund (IMF), do not specifically focus on economic integration and cooperation, making them not representative of an economic community. Therefore, the correct answer is A) North American Free Trade Agreement (NAFTA).

    Rate this question:

  • 18. 

    Managing organizational culture is likely to become more difficult when A) the firm has recently undergone a merger. B) management has no clear idea of the desired culture. C) the firm has recently suffered from poor performance. D) All of these. E) Only when "the firm has recently undergone a merger" and "management has no clear idea of the desired culture."

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    Managing organizational culture is likely to become more difficult when the firm has recently undergone a merger, management has no clear idea of the desired culture, or the firm has recently suffered from poor performance. This is because a merger can lead to clashes between different cultures and values, making it challenging to establish a unified culture. Additionally, if management does not have a clear idea of the desired culture, it becomes difficult to align employees and implement necessary changes. Poor performance can also create a negative culture and make it harder to motivate employees and drive positive change.

    Rate this question:

  • 19. 

    Abercrombie sells clothing for "tween" girls who are no longer little girls, but not quite teens either. Abercrombie and Fitch is the clothing line for older people. Abercrombie uses a(n) ____ strategy. A) focus B) diversification C) unrelated diversification D) differentiation E) BCG

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    A.
    Explanation
    A) focus. Abercrombie uses a focus strategy by targeting a specific market segment, which is "tween" girls. They cater to the needs and preferences of this specific group, who are transitioning from being little girls to becoming teenagers. This allows Abercrombie to differentiate themselves from other clothing brands and create a unique and tailored offering for their target customers.

    Rate this question:

  • 20. 

    A(n) ____ strategy concentrates on increasing sales revenues, through the ability to charge premium prices for value-added products, while still maintaining an appeal for most customers. A) differentiation B) overall cost leadership C) focus D) corporate-level E) product life cycle

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    A.
    Explanation
    A differentiation strategy concentrates on increasing sales revenues, through the ability to charge premium prices for value-added products, while still maintaining an appeal for most customers.

    Rate this question:

  • 21. 

    Using the BCG matrix, SBUs are classified on the basis of A) market growth rate and cash generation potential. B) market share and market growth rate. C) competitive advantage and financial strength. D) a strategic business unit and product life cycle. E) None of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    The correct answer is B) market share and market growth rate. The BCG matrix is a strategic tool used to evaluate and classify a company's portfolio of strategic business units (SBUs). It categorizes SBUs into four quadrants: stars, cash cows, question marks, and dogs. Market share and market growth rate are the two factors used to determine the position of an SBU in the matrix. Market share represents the SBU's relative market dominance, while market growth rate indicates the attractiveness and potential of the market in which the SBU operates.

    Rate this question:

  • 22. 

    Extra funds should be channeled to the ____, which is a product with a high share of a fast-growing market. A) star B) cash cow C) differentiator D) profitable product E) question mark

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    A.
    Explanation
    The correct answer is A) star. A star is a product that has a high market share in a fast-growing market. It is considered to be a high-potential product that can generate significant profits in the future. Therefore, it makes sense to allocate extra funds to support and further develop this product in order to maximize its growth and profitability.

    Rate this question:

  • 23. 

    The GE business screen is an expansion of the ideas from A) the product life cycle. B) the industry attractiveness matrix. C) the generic strategy approach. D) Porter's competitive strategies. E) the BCG matrix.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    The correct answer is E) the BCG matrix. The GE business screen is a strategic tool that helps businesses analyze their portfolio of products or business units. It is an expansion of the BCG matrix, which categorizes products or business units into four quadrants based on their market growth rate and market share. The GE business screen adds additional dimensions such as industry attractiveness and competitive strength to provide a more comprehensive analysis.

    Rate this question:

  • 24. 

    In the GE Business Screen matrix, all of the following are characteristics of the attractiveness of the industry EXCEPT A) market growth. B) market size. C) product quality. D) competitive intensity. E) capital requirements.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    C.
    Explanation
    The GE Business Screen matrix is a tool used to evaluate the attractiveness of different industries. It considers factors such as market growth, market size, competitive intensity, and capital requirements. However, it does not specifically consider product quality as a characteristic of industry attractiveness. Therefore, the correct answer is C) product quality.

    Rate this question:

  • 25. 

    Investors went crazy for the IPO of Tesla, an electric car maker. Tesla has a competitive position of medium and the industry attractiveness is high. According to GE's Business Screen, Tesla is a(n) A) average business. B) question mark. C) loser. D) star. E) winner.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    According to GE's Business Screen, Tesla has a competitive position of medium and the industry attractiveness is high. This combination suggests that Tesla is a "star" in the business screen framework. "Stars" are businesses that have a strong competitive position in an attractive industry, indicating high growth potential and future success.

    Rate this question:

  • 26. 

    During the recession shipping, air cargo, and trucking companies scaled back. When the economy picked back up there were transportation delays everywhere. Companies needed A) standard operating procedures. B) contingency plans. C) regulations. D) rules. E) standing plans.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    During the recession, many transportation companies scaled back their operations, resulting in a decrease in capacity. When the economy picked back up, there was a sudden increase in demand for transportation services, leading to delays. In order to address these delays and ensure smooth operations, companies would need contingency plans. These plans would outline alternative courses of action to be taken in case of unexpected events or disruptions in the transportation system, helping companies to mitigate delays and maintain efficiency.

    Rate this question:

  • 27. 

    For a major project for his employer, Jason wants to choose the management consulting team that will give his employer the best outcome. Which decision criteria should Jason use to maximize effectiveness? A) He should choose the team with the lowest expenses. B) He should choose the team that can complete the project the quickest. C) He should choose the team that has the most knowledge and experience. D) Can't decide¾None of these criteria are likely to lead to effectiveness. E) Can't decide¾Jason needs to know which criteria are most important to his employer.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    Jason should choose the team that has the most knowledge and experience. This is because a management consulting team with extensive knowledge and experience is more likely to provide effective solutions and strategies for the major project. Choosing a team based on lowest expenses or quickest completion may not necessarily lead to the best outcome. Additionally, Jason needs to consider the criteria that are most important to his employer, as their priorities and preferences may influence the decision-making process.

    Rate this question:

  • 28. 

    The best alternative is the most ____ alternative A) efficient B) controllable C) profitable D) effective E) valid

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    D.
    Explanation
    The best alternative is the most effective alternative. This means that out of all the options, the one that is most likely to achieve the desired outcome or result is considered the best alternative. Efficiency, controllability, profitability, and validity are all important factors, but effectiveness is the ultimate measure of success in this context.

    Rate this question:

  • 29. 

    Which of the following decision-making models is a prescriptive model? A) Behavioral B) Classical C) Administrative D) Bureaucratic E) Probabilistic

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    The correct answer is B) Classical. The classical decision-making model is a prescriptive model because it provides a step-by-step approach for making rational decisions. It assumes that decision-makers have complete information, can evaluate all alternatives, and will choose the option with the highest utility. This model is based on the idea of maximizing outcomes and is often used in situations where there is a clear and well-defined problem.

    Rate this question:

  • 30. 

    Amazon, maker of Kindle, could choose a touch screen which increases glare or non-touch screen for better viewing. They were in which step of the rational decision making model? A) Develop a set of rational alternatives B) Evaluate the possible alternatives C) Consult with other decision-makers D) Recognize and define the decision situation E) Evaluate decision effectiveness

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    The correct answer is A) Develop a set of rational alternatives. In this step of the rational decision-making model, Amazon is considering the different options they have for the type of screen to use in their Kindle. They are weighing the pros and cons of a touch screen that may increase glare versus a non-touch screen for better viewing. This step involves brainstorming and generating a range of possible alternatives before evaluating them.

    Rate this question:

  • 31. 

    Tim knows he deserves a raise. He talks with HR about his outstanding performance. HR describes what a bad year the company is having and that there is no money for raises. Tim's raise failed the test for ____. A) consequences B) bounded rationality C) satisficing D) escalation of commitment E) feasibility

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    Tim's raise failed the test for feasibility. The HR explained that the company is having a bad year and there is no money for raises, indicating that giving Tim a raise is not feasible at the moment.

    Rate this question:

  • 32. 

    Which of the following decision-making models is based on the belief that human behavior is often imperfect? A) Rational B) Emotional C) Classical D) Behavioral E) Sequential

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    D.
    Explanation
    The correct answer is D) Behavioral. The behavioral decision-making model is based on the belief that human behavior is often imperfect. This model recognizes that individuals may not always make rational decisions and instead may be influenced by biases, emotions, and other factors that can lead to imperfect decision-making. This model takes into account the cognitive and psychological aspects of decision-making and acknowledges that individuals may not always act in a rational or logical manner.

    Rate this question:

  • 33. 

    Herbert Simon noted that managers generally fail to make rational decisions because they are limited by their own values, skills, habits, and unconscious reflexes as well as by incomplete information. What name did Simon give this phenomenon? A) Satisficing B) Bounded rationality C) Brainstorming D) Rational decision making E) Decision framing

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    B) Bounded rationality

    Rate this question:

  • 34. 

    Tony Hayward, former CEO of BP, made statements and decisions about vacations during the oil spill that led to him stepping down as CEO. His innate belief without conscious consideration that attending a polo match during the crises was ok shows he used A) escalation of commitment. B) classical decision making. C) satisficing. D) means-end inversion. E) bad intuition.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    The correct answer is E) bad intuition.

    Rate this question:

  • 35. 

    One advantage of group decision making is A) groupthink. B) compromise. C) diversity of members' backgrounds. D) lowered cost of decision making. E) ability of a strong individual to direct the group.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    C.
    Explanation
    One advantage of group decision making is the diversity of members' backgrounds. When a group is composed of individuals with different backgrounds, experiences, and perspectives, it can lead to more comprehensive and well-rounded decision making. This diversity allows for a wider range of ideas and considerations to be brought to the table, ultimately leading to better decision outcomes.

    Rate this question:

  • 36. 

    When Donald Rumsfeld was Secretary of Defense, he was a very strong-willed manager. He was often able to persuade generals and admirals to do what he thought was best. Which disadvantage of group decision making was that group experiencing? A) Diversity of background B) Compromise C) Groupthink D) Domination by one member E) Time required to get a decision

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    D.
    Explanation
    The group in this scenario was experiencing the disadvantage of domination by one member. Donald Rumsfeld, as the Secretary of Defense, had a strong-willed personality and was able to persuade the generals and admirals to follow his decisions. This domination by one member can limit the input and perspectives of other group members, potentially leading to a lack of diverse viewpoints and a less effective decision-making process.

    Rate this question:

  • 37. 

    Jacques Torres is founder, CEO, and owner of Jacques Torres Chocolate in Brooklyn NY. He is a(n) A) intrapreneur. B) entrepreneur. C) franchisee. D) lease holder. E) professional manager. Points Earned:     2.0/2.0

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    Jacques Torres is the founder, CEO, and owner of Jacques Torres Chocolate, indicating that he started and runs his own business. Therefore, the correct answer is B) entrepreneur.

    Rate this question:

  • 38. 

    Which of the following activities is essential to the role of entrepreneur? A) Assuming the risks of operating a business B) Active involvement in operating the business C) Being one's own boss D) Starting a new business venture E) All of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    All of these activities are essential to the role of an entrepreneur. Assuming the risks of operating a business is crucial as entrepreneurs often invest their own money and resources into their ventures. Active involvement in operating the business is necessary for entrepreneurs to make key decisions and drive the success of their business. Being one's own boss is a defining characteristic of entrepreneurship, as entrepreneurs have the freedom to set their own goals and strategies. Starting a new business venture is the very essence of being an entrepreneur, as it involves identifying opportunities and taking the initiative to create a new enterprise.

    Rate this question:

  • 39. 

    Which of these is a correct comparison of large and small businesses? A) Big businesses create more new jobs than small businesses. B) Big businesses are less efficient at producing and delivering specialty products than small businesses. C) Small businesses show consistently lower profit margins than big businesses. D) Big businesses outnumber small businesses by a wide margin. E) Small business formations are on the decline, but the rate for big businesses is increasing.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
  • 40. 

    Which of the following is a strategic challenge that faces a small business? A) Emphasizing distinctive competencies B) Writing a business plan C) Finding a niche market D) Raising capital E) All of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    A strategic challenge that faces a small business is finding a niche market. Small businesses often struggle with identifying and targeting a specific market segment that they can effectively serve and differentiate themselves from competitors. This is crucial for their success as it allows them to focus their resources and efforts on meeting the unique needs and preferences of their target customers. Emphasizing distinctive competencies, writing a business plan, and raising capital are also important challenges for small businesses, but finding a niche market is a fundamental strategic challenge that underlies these other challenges.

    Rate this question:

  • 41. 

    Which of the following is an example of a company that has identified a new market? A) Lonnie Johnson develops the Super Soaker, the world's most successful water gun. B) Low-dose Bayer aspirin introduced into the Chinese market. C) Coca-Cola introduces another low calorie soft drink. D) Kroger supermarkets add a new line of cosmetics for teens to its shelves. E) Purina introduces a new package design for its dog food.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
  • 42. 

    In times of economic prosperity, small firms are the first to hire additional workers and big firms are last. In times of economic downswings, small firms are the first to eliminate workers and big firms are last. This reflects which attribute of small firms as compared to large firms? A) Increased innovation B) Increased flexibility C) Higher susceptibility to lawsuits D) Economies of scale E) All of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    E) All of these.

    Rate this question:

  • 43. 

    Which of the following best describes "crossovers from big business," a term your text uses to describe an important trend in business start-ups? A) Small businesses capitalize on innovations developed at large businesses. B) Workers leave employment at big corporations to found their own businesses. C) Small businesses contribute significantly to the operation of large businesses. D) Small businesses receive financial capital from large businesses. E) None of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    B) Workers leave employment at big corporations to found their own businesses.

    Rate this question:

  • 44. 

    Which of the following pieces of advice is likely to lead to entrepreneurial success, according to your text? A) Be flexible in order to take advantage of changing opportunities. B) Work for someone else in your desired field before starting your own business, in order to gain experience and skills. C) Make the new venture your full-time job and devote significant amounts of time to hands-on management. D) Have enough money to operate for at least six months to one year without any profit. E) All of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    The correct answer is E) All of these. The text suggests that being flexible, gaining experience, devoting significant time to management, and having enough financial resources are all important factors for entrepreneurial success.

    Rate this question:

  • 45. 

    An assembly operation includes four different jobs. Bob spends three weeks on each of these jobs and then starts the cycle over again with the first job of the operation. This is an example of job A) specialization. B) rotation. C) enlargement. D) enrichment. E) delegation.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    B) rotation.

    This is an example of job rotation because Bob spends three weeks on each of the four different jobs in a cyclical manner. He rotates through the jobs, completing each one before moving on to the next.

    Rate this question:

  • 46. 

    All of the following are bases for departmentalization EXCEPT A) functional. B) product. C) location. D) customer. E) competition.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    The correct answer is E) competition. Departmentalization refers to the process of dividing an organization into different departments or units based on certain criteria. Functional, product, location, and customer are all common bases for departmentalization. However, competition is not typically used as a basis for departmentalization.

    Rate this question:

  • 47. 

    Gore Associates has separate plants for making camping gear, uniforms, and dental floss. It uses ____ departmentalization. A) functional B) product C) divisional D) customer E) specialization

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    Gore Associates has separate plants for making camping gear, uniforms, and dental floss, indicating that it uses product departmentalization. This means that the company organizes its activities and resources based on the different products it produces. Each product has its own separate plant, allowing for a more focused and efficient production process.

    Rate this question:

  • 48. 

    First City Bank makes loans through the consumer, agricultural, and commercial departments. Based on this information, we know that the bank is organized, at least in part, on the basis of A) function. B) specialization. C) divisions. D) location. E) customer.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    E.
    Explanation
    The correct answer is A) function. This is because the bank is organized based on the different departments or functions it has, such as consumer, agricultural, and commercial departments. Each department specializes in providing loans for different purposes, indicating that the bank is organized on the basis of function.

    Rate this question:

  • 49. 

    An organization where power and control are kept at the top levels of management is A) specialized. B) centralized. C) decentralized. D) departmentalized. E) None of these.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    B.
    Explanation
    The correct answer is B) centralized. In a centralized organization, power and control are concentrated at the top levels of management. Decisions and authority flow from the top down, with little autonomy or decision-making power given to lower-level employees. This type of structure allows for clear direction and coordination, but can result in slow decision-making and limited innovation.

    Rate this question:

  • 50. 

    The process of linking together the activities of the various parts of an organization to promote harmonious movement toward organizational goals is called A) centralization. B) specialization. C) decentralization. D) coordination. E) delegation.

    • A.

    • B.

    • C.

    • D.

    • E.

    Correct Answer
    D.
    Explanation
    The correct answer is D) coordination. Coordination refers to the process of ensuring that the activities of different parts of an organization are aligned and working together towards achieving the organization's goals. It involves linking together various activities, departments, and individuals in order to promote harmonious movement and avoid conflicts or duplication of efforts. Coordination is essential for effective organizational functioning and achieving desired outcomes.

    Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Jul 05, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 22, 2012
    Quiz Created by
    Glencolborn
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.