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Principles of Management
Review your answers below.
1) _____ courses help managers gain a better understanding of motivation,

leadership, trust, employee selection, performance appraisals, and training
techniques?
a) Psychology
b) Sociology
c) Political science
d) Anthropology
Wrong! The right answer was a).
2) In general, entrepreneurs are better able than managers in a traditional

hierarchical organization to?
a) lead.
b) organize.
c) respond to a changing environment.
d) respond to a static environment.
Wrong! The right answer was c).
3) A construction supervisor site who sees an impending thunderstorm, tells

workers to go home, and secures the site is demonstrating ?
a) authority.
b) delegation.
c) accountability.
d) responsibility
4) _________ involves the delegation of decision-making and authority to lower

levels in the organization?
a) Decentralization
b) Departmentalization
c) Specialization
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d) Centralization
Failed to answer!
5) The belief that a firm’s obligation goes beyond that required by law and
economics, and includes a pursuit of long-term goals that are good for society is
known as?
a) social responsiveness.
b) ethical responsibility.
c) social responsibility.
d) social obligation
Correct!
6) The objective of TQM is to create an organization committed to continuous

_________?
a) Improvement.
b) Development
c) Struggle
d) a&b
Failed to answer!
7) The process of assigning authority and responsibility to one�s subordinates

to manage a project is called ?
a) centralization.
b) supervision.
c) delegation.
d) specialization.
8) One of the greatest effects of e-commerce is that?

a) costs will be reduced.
b) customers will be empowered.
c) employees become more powerful.
d) computers will be less important.
Failed to answer!
9) Time -and- motion study introduced by?

a) Henri Fayol
b) Fredrick W. Taylor
c) Frank and Lillian Gilberth
d) Adam Smith
Wrong! The right answer was b).
10) __________focused on the work or the job and how to do it better.?

a) Scientific management
b) Bureaucratic management
c) Classical management
d) Administrative management
Correct!
11) Strategic management entails all of the basic management functions:?

a) Planning, organizing, leading, and controlling.
b) Motivation, efficiency, authority and effectiveness.
c) Planning, bossing, controlling, and organizing.
d) Making things happen, meeting the competition, organizing the people and
leading.
12) Which of the following is not a part of strategy formulation?

a) Identifying the mission and strategic goals.
b) Conducting competitive analysis.
c) Developing specific strategies.
d) Carrying strategic plans.
Wrong! The right answer was d).
13) Planning involves two important elements: ?

a) Goals and plans.
b) Organizing and controlling.
c) Lead and plans.
d) Staffing and leading.
14) Strategic goals are concerned with :?

a) Top level managers.
b) Middle level managers.
c) First-Line Managers.
d) Non-managerial Employees.
15) Tactical goals and plans typically involve time periods of _________.?
a) 1 year.
b) 1 to 3 years.
c) 3 to 5 years.
d) More than 5 years.
16) ______________are those targets or future end results set by lower

management that address specific, measurable outcomes required from the
lower levels.?
a) Strategic goals.
b) Tactical goals.
c) Operational goals.
d) None of given options.
17) MBO was first described by _________.?
a) Peter Drucker.
b) Henry Minzberg.
c) Henri Fayol.
d) Fredrick W. Taylor.
18) A__________ is a prescribed series of related steps to be taken under

certain recurring circumstances.?
a) Procedure.
b) Plans.
c) Policy.
d) Project.
19) Tactical plans tend to be_________ specific and concrete than strategic
plans.?
a) More.
b) Less.
c) Lower.
d) None of given options
20) A mission statement is a __________declaration of the basic, unique

purpose.?
a) Narrow.
b) Broad.
c) Contracted.
d) None of given options.
21) __________ is the degree to which followers perceives someone as honest,

competent, and able to inspire?
a) Credibility
b) Trust
c) Integrity
d) Consistency
22) Women leaders tend to adopt a more ____________than men do?

a) Autocratic
b) Democratic
c) Directive
d) None of above mentioned
23) __________leadership is described as going beyond charisma with the

ability to create and articulate a realistic, credible, attractive vision of the future
for an organization or organizational unit that grows out of and improves on the
present?
a) Charismatic
b) Transformational
c) Visionary
d) None of above mentioned
24) ___________studied three leadership styles: autocratic, democratic, and

laissez-faire?
a) Ohio State Studies
b) University of Michigan Studies
c) University of Iowa Studies
d) Hawthorne studies
Correct!
25) When a divisional structure is superimposed over a functional structure, the

type of structure that results is called a _________organization?
a) functional
b) divisional
c) matrix
d) product
1) The Great China Wall built in the time period of __________ years?
a) 952 Years
b) 954 Years
c) 956 Years
d) 958 Years
2) One of the classic books on economic philosophy was written by Adam

Smith, an eighteenth-century professor at Glasgow, Scotland in
_______________?
a) 1756
b) 1766
c) 1776
d) 1786
3) A ____________ is someone who works with and through other people by

coordinating their work activities in order to accomplish organizational goals?
a) Planner
b) Manager
c) Coordinator
d) Entrepreneur
4) ________________ is the process of coordinating and integrating work

activities so that they are completed efficiently and effectively with and through
other people?
a) Planning
b) Entrepreneurship
c) Leading
d) Management
5) Which of the following is not a function of managers?

a) Planning
b) Organizing
c) Leading
d) Controlling
e) None of the above.
Wrong! The right answer was e).
6) A ____________ is an organized set of behaviors that is associated with a

particular office or position?
a) Function
b) Role
c) Performance
d) All of the above
7) The ___________ builds relationships with employees and communicates

with, motivates, and coaches them?
a) Leader
b) Monitor
c) Manager
d) Negotiator
8) Effectiveness is often described as?

a) Maximum output with minimum input.
b) Doing the right things
c) Work done on time

d) None of the above
9) Controlling means:?
a) Determining what tasks are to be done
b) the process of defining goals
c) influencing individuals or teams
d) Comparing actual work to standard work.
10) Supervisors are called:?

a) First line managers
b) Middle managers
c) Top managers
d) None of the above.
Correct!
11) ______________is known as the �father� of scientific management?

a) Max Weber
b) Henri Fayol
c) Henry L. Gantt
d) Frederick W. Taylor
12) Max Weber was a ______________ sociologist?

a) French
b) Russian
c) American
d) German
13) ___________________developed theory X and theory Y about the

assumptions managers make about workers?
a) Henri Fayol
b) Abraham Maslow
c) Hugo Munsterberg
d) Douglas McGregor
Correct!
14) ___________________-is the function or field of expertise that is primarily

responsible for the production and delivery of an organization�s products and
services?
a) Management information systems
b) Entrepreneurship
c) Operations Management
d) Total Quality Management
Correct!
15) William Ouchi�s Theory Z combines positive aspects of

_________________management?
a) American and Chinese
b) French and Japanese
c) American and French
d) American and Japanese
16) ___________________is an agreement among the Mexican, Canadian,

and U.S. governments?
a) ASEAN
b) SAARC
c) EU
d) NAFTA
17) _______________ is the possibility that a chosen action could lead to

losses rather than the intended results?
a) Risk
b) Certainty
c) Uncertainty
18) Two prominent Bureaucratic-management theorists

are___________________?
a) Douglas McGregor and Max Weber
b) Max Weber and Abraham Maslow
c) Abraham Maslow and Henri Fayol
d) Henri Fayol and Max Weber
19) The primary motivation for the creation of the EU was to allow these nations
to reassert their position against_____________________?
a) United States and China
b) United States and Japan
c) United States and Russia
d) China and Japan
20) ____________________ is not a member of EU?

a) Finland
b) Spain
c) Turkey
d) Luxembourg
21) _________________ are large-scale action plans for interacting the

environment in order to achieve long-term goals?
a) Strategies.
b) Decisions
c) Programs
22) Conducting competitive analysis is a part of strategy _____________ ?

a) Implementation
b) Formulation
c) Identification
d) Evaluation
Correct!
23) Strategic management is the set of managerial decisions and ___________

?
a) Plans
b) Goals
c) Processes
d) Actions
24) The strategic management process is an ____________ process?

a) eight-step
b) eleven-step
c) eighteen-step
Correct!
25) The ___________ can promote or hinder an organization�s strategic

actions?
a) Environment
b) Culture
c) Atmosphere
Correct!
26) A mission statement is a __________ declaration of the basic, unique

purpose and scope of operations that distinguishes the organization from others
of this type?
a) Broad
b) Detailed
c) Narrow
d) a & b both
27) For managers, a mission statement can be a benchmark against which to

_____________ success?
a) Discloses
b) Evaluates
c) Shows
d) None of above
28) ___________ term plans are those that extend beyond three years?
a) Long
b) Short
c) Mid
d) None of above
29) Strategic plans typically involve the periods of _______ years or more?
a) 5
b) 10
c) 15
d) 20
30) MBO makes objectives ____________ through the process by which they
cascade down through the organization?
a) Operational
b) Managerial
c) Functional
1) Corporate-level strategy is developed by____________________?

a) Top-level management
b) Middle-level management
c) Board of directors
d) Both a & c
2) Small businesses have fewer than _________ employees?

a) 50
b) 100
c) 150
d) 200
3) Which of the following is/are an element(s) of organizational structure?

a) Job design
b) Departmentalization
c) Vertical coordination
d) All of the above
4) Employees who work in a ____________, report to two �bosses,�?

a) Functional structure
b) Divisional structure
c) Matrix organization
d) Hybrid structure
5) _____________entails selling or dissolving an entire organization?

a) Liquidation
b) Bankruptcy
c) Harvest
d) Divestiture
6) The process structure is sometimes called the ______________?

a) Vertical organization
b) Horizontal organization
c) Networked structure
d) Virtual corporation
7) ___________ is the second function of management?

a) Organizing
b) Planning
c) Leading
d) Controlling
8) Which of the following is not a part of entrepreneurial process?

a) Exploring the entrepreneurial context
b) Starting the venture
c) Managing the venture

9) Horizontal coordination is the linking of activities across departments

at____________ levels?
a) Similar
b) Upper
c) Lower
d) Different
10) _____________are divisions, set up to service particular types of clients or

customers?
a) Customer divisions
b) Geographic divisions
c) Product divisions
Correct!
11) McClelland presented ______________ theory?

a) Acquired � needs theory
b) Motivation hygiene theory
c) ERG theory
12) The practice of periodical shifting workers through a set of jobs in a planned
vsequence is called _________ ?
a) Job rotation
b) Job enlargement
c) Job enrichment
d) Job depth
Correct!
13) Five levels of need are not always present, it is a____________ point of the
Maslow�s theory?
a) Weak
b) Strong
c) Good
d) None of above
14) An internal state that makes certain outcomes appear attractive is called
__________ ?
a) Motivation
b) Need
c) Satisfaction
Correct!
15) Frederick Hertzberg�s theory states that there are only____________

categories of needs?
a) One
b) Two
c) Three
d) Four
16) According to Maslow�s theory, Order of needs and hierarchy may not be
the_______________ for all employees?
a) Same
b) Equal
c) Effective
d) Impressive
17) ______________is the extent to which the worker sees the job output as
having an important impact on others?
a) Skill variety
b) Task significance
c) Autonomy
d) Task identity
18) ____________ is a measure of intensity or drive?

a) Quality
b) Efficiency
c) Loyalty
d) Effort
Failed to answer!
19) In ERG theory Maslow�s social need is called___________?

a) Existence needs
b) Growth needs
c) Related needs
20) Which of the following is not the purpose of job rotation?

a) Combat boredom
b) Cross training
c) Employee satisfaction
d) Employee development
21) Conceptual skills relate to a manager�s ability to:?
a) Take a strategic view of how the part of the organization function.

b) Solve detailed problems in groups.
c) Correctly evaluate organizational problems.
d) Understand and interact effectively with others in the organization.
22) Which of the following statements about middle managers is not true?
a) Middle managers coordinate the work of supervisors.
b) Middle managers implement the objectives and plans of top
management.
c) The number of middle managers in the most organizations is increasing
d) Operatives can report directly to middle managers.
Correct!
23) When the CEO of a large retail store chain decided to sell off or close some
of the locations that were not profitable, he was performing the management
function referred to as _________?
a) Leading
b) Planning
c) Controlling
d) Organizing
24) -------------- involves cultivating a learning culture where organizational

members systematically gather knowledge and share it with others to achieve
better performance?
a) Knowledge management
b) Learning Organization
c) Entrepreneurship
d) None of the given options
25) Mr. A. is a manager in a manufacturing company, he attempts to establish a

culture of quality affecting the attitudes and actions of every employee and relies
on a workforce that wants to improve quality. He focuses on establishing: ?
a) Total Quality Management
b) Knowledge management
c) Operations Management
d) Management of Information System
26) Ali is working in XYZ Company, he desires to get himself secure from
crimes, company lay offs and other adverse impacts. We can say that he fulfils
the ----------------- need?
a) Self Actualization
b) Social need
c) Esteem
d) Safety
27) In -------------- theory management assumes that employees may be

ambitious, self-motivated, and anxious to accept greater responsibility, and
exercise self-control, self-direction, autonomy and empowerment?
a) Theory Y manager
b) Theory X manager
c) Theory Z manager
d) All of the above
28) ----------- involves the products, services, and other outcomes produced by
the organization?
a) Inputs
b) Transformation process
c) Outputs
d) Feed Back
Correct!
29) ----------- is known as the father of scientific management?

a) Max Weber
b) Fredrick Winslow Taylor.
c) Peter Drucker
d) None of the given options
30) --------------- searches organization and its environment for opportunities and
initiates �improvement projects� to bring about changes?
a) Disturbance handler
b) Liaison
c) Leader
d) Entrepreneur

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www.vunew.blogspot.

Review your answers below.

1) _____ courses help managers gain a better understanding of motivation,

Wrong! The right answer was a).

2) In general, entrepreneurs are better able than managers in a traditional

Wrong! The right answer was c).

3) A construction supervisor site who sees an impending thunderstorm, tells

Wrong! The right answer was a).

4) _________ involves the delegation of decision-making and authority to lower

6) The objective of TQM is to create an organization committed to continuous

7) The process of assigning authority and responsibility to one�s subordinates

Wrong! The right answer was c).

8) One of the greatest effects of e-commerce is that?

d) computers will be less important.

9) Time -and- motion study introduced by?

Wrong! The right answer was b).

10) __________focused on the work or the job and how to do it better.?

11) Strategic management entails all of the basic management functions:?

Wrong! The right answer was a).

12) Which of the following is not a part of strategy formulation?

Wrong! The right answer was d).

13) Planning involves two important elements: ?

Wrong! The right answer was a).

14) Strategic goals are concerned with :?

Wrong! The right answer was a).

Wrong! The right answer was b).

16) ______________are those targets or future end results set by lower

Wrong! The right answer was c).

17) MBO was first described by _________.?

Wrong! The right answer was a).

18) A__________ is a prescribed series of related steps to be taken under

Wrong! The right answer was a).

Wrong! The right answer was a).

20) A mission statement is a __________declaration of the basic, unique

Wrong! The right answer was b).

21) __________ is the degree to which followers perceives someone as honest,

Wrong! The right answer was a).

22) Women leaders tend to adopt a more ____________than men do?

Wrong! The right answer was b).

23) __________leadership is described as going beyond charisma with the

Wrong! The right answer was c).

24) ___________studied three leadership styles: autocratic, democratic, and

25) When a divisional structure is superimposed over a functional structure, the

Wrong! The right answer was c).

Review your answers below.

Wrong! The right answer was c).

2) One of the classic books on economic philosophy was written by Adam

Wrong! The right answer was c).

3) A ____________ is someone who works with and through other people by

Wrong! The right answer was b).

4) ________________ is the process of coordinating and integrating work

Wrong! The right answer was d).

5) Which of the following is not a function of managers?

Wrong! The right answer was e).

6) A ____________ is an organized set of behaviors that is associated with a

Wrong! The right answer was b).

7) The ___________ builds relationships with employees and communicates

Wrong! The right answer was a).

8) Effectiveness is often described as?

c) Work done on time

Wrong! The right answer was b).

Wrong! The right answer was d).

10) Supervisors are called:?