Principles of Management Objective Exam Review

Which of the following is a problem associated with scientific management theory:

A) Workers get so absorbed in their work that they overlook timelines. B) Workers might intentionally underperform so that their performance is evaluated against a low standard. C) Workers have to be organized on the basis of shared values. D) Workers must spread their efforts across too broad a range of tasks. B

A mission statement can be thought of as the __________ of the business strategy.

"Why".

Which of the following is a financial risk that managers of global businesses must be aware of:

A) The challenge of hiring the right employees. B) A lack of technology in developing markets. C) The impact of currency exchange rates. D) Political issues between countries. C

Which of the following is one way to make it easier to have conversations about employee compensation:

A) Use vague language rather than specific facts. B) Keep conversations one-on-one. C) Remove emotion from the conversations. D) Have a set structure for raises and bonuses. D

What is an example of a broad goal that management might develop for a business?

Reduce operating expenses.

A primary activity of the directing function of management is

Initiating action.

In which section of the business plan would you find evidence of customer interest in a new product?

Market analysis.

Wanda feels uncomfortable discussing compensation with her employees, so she tries to bring it up as infrequently as possible. What is a possible consequence of doing so?

Wanda's employees will come to inaccurate conclusions about their pay.

Axile Unlimited is the leader in its market, but two of its competitors just merged to form a larger company. Where would the competitors' merger fall in Axile's organizational SWOT?

Threats.

Many experts believe that providing too much detail in the work breakdown structure (WBS) work packages often causes the project manager to

Micromanage the project.

Liz has two employees that report to her. She is one of several managers with staffs of similar size. Liz's organization has a

Narrow span of control.

The XRT Company wants to increase its sales by 15%. Is this a SMART goal?

No. The goal is not time bound.

What is a factor that a growing business might consider when determining hiring needs?

Employee to customer ratios.

What are the 5 functions of management?

Planning Organizing Staffing Directing Controlling

Which of the following is an activity that is conducted during the closing phase of a project:

A) Identifying stakeholders. B) Obtaining resources. C) Determining deliverables. D) Archiving documents. D

What is the focus of quality assurance?

Developing processes to prevent product defects.

Which of the following is a situation indicating a problem with product durability:

A) A customer returns a software package because it does not work with her/his computer. B) A customer complains to a restaurant server that his/her steak is too rare. C) A customer complains that her/his new cell-phone battery quit working after one week. D) A customer returns a recently-purchased sweater because it is the wrong size. C

Which of the following businesses is most likely to require a different management plan than the other businesses described:

A) A jewelry store selling fine watches and jewelry. B) A bookstore with one storefront. C) A small bakery making custom cakes. D) A clothing store franchise with 10 locations. D

Which of the following is a tool that defines the business's purpose and guides its organizational decision-making:

A) Balance sheet. B) Mission statement. C) Mind map. D) Program-of-work document. B

Which of the following is an activity associated with the closing phase of a project:

A) Developing a production schedule for team members. B) Determining the appropriate computer technology needs. C) Obtaining funds, equipment, and supplies for the project. D) Holding a team meeting to evaluate the project's successes and mistakes. D

Which of the following has a negative effect on an understaffed business:

A) Higher property taxes B) Fewer premiums C) Increased errors D) Decreased turnover C

Which of the following statements describes how a human resources organizational plan benefits employees:

A) It helps them understand their roles within the company. B) It grants them the authority to perform their jobs. C) It lists their qualifications and work experience. D) It illustrates how the company handles employee promotions. A

Which of the following statements is true regarding business plans:

A) Lending institutions do not usually require loan applicants to submit a business plan. B) The operating plan details information regarding the business's services. C) A corporation is the only legal form of business ownership that should develop a business plan. D) Owners often use business plans as a tool to help them achieve their objectives. D

Which of the following is an example of a conflict of interest that might make it difficult for a manager to be ethical:

A) Making a decision about an employee who is a friend. B) Working with people from different cultures. C) Promoting an employee who has seniority. D) Organizing an event for all business employees. A

Which of the following is a main factor that businesses consider when staffing the company:

A) Performance evaluation. B) Employee compensation. C) Orientation procedure. D) Advancement opportunity. B

Which of the following is a psychographic characteristic that businesses often use to identify market segments:

A) Quality of health. B) Number of family members. C) Style of living. D) Type of dinning table. C

Which of the following is the first step in the control process:

A) Take corrective action. B) Compare performance to standards. C) Measure performance. D) Set performance standards. D

Which of the following is an internal weakness that a business might detect by conducting a SWOT analysis:

A) Taxation rate B) New competitors C) Technological obsolescence D) Economic trends C

Which of the following is a true statement about project planning:

A) With a project plan, you can mentally walk through your project from start to finish. B) You should not involve others in the planning process. C) You should never develop a custom-made plan for your project. D) Through project planning, you can evaluate what you have accomplished. A

When analyzing market potential, a business must consider the market's interest level in the product and the market's

Ability to buy.

The function of managerial control involves comparing what was planned with the

Actual results.

Corporate social responsibility refers to a company's willingness to

Adopt practices that benefit society.

What management theory focuses on understanding employee motivation, conflict, expectations, and group dynamics?

Behavioral management theory.

An effective mission statement should effectively reflect the business's

Core values.

A business manager who helps an employee decide when and where products should be delivered performs which management function?

Directing.

A production supervisor provides a new line worker with information about how to assemble an item. What management function is the production supervisor performing?

Directing.

An important aspect of the organizing function of management involves.

Establishing levels of authority.

The final deliverable of your project is choosing a name for your company's new product. Which of the following tasks is most likely outside the project's scope:

Generating potential names for future products.

Businesses usually analyze market potential for a certain product by considering total demand in a specific

Geographical area.

When the Green Company selected its target market, it decided to ignore the segment differences and generate appeal with one offer. The company is using __________ marketing.

Mass.

A job description starts: "We are seeking a bright, talented self-starter with a salesman's mentality and 3-5 years of experience." What is a potential problem with this opening sentence?

It includes discriminatory language.

Setting the overall goals for a business, guiding the activities of the business, and keeping the business moving toward its goals are part of the role of

Managers.

The owners of the IHM Company are determining if they should structure the new business by product line or by departmental functions. The owners are performing an activity associated with the __________ management function.

Organizing.

One way that a business can learn about its competitors' activities is by

Reviewing secondary data.

What project-management activity involves determining when project tasks should be performed?

Scheduling.

An important criterion to consider when identifying market segments is the __________ of the market.

Size.

A job profile for an account manager includes the following sentence: "The ideal candidate must be an excellent communicator." This part of the job profile is focused on

Skills.

Why is it important for a business to identify its product's competitive advantage?

To develop an appropriate marketing strategy.

Serena is determining the specific activities needed to carry out a year-long advertising campaign. Serena is engaged in __________ planning.

Tactical.

Staffing is important because human resources are

The organization's most valuable assets.

What is the primary purpose of managerial planning?

To prepare for the future.