Chapter 1The Role of Business Research

TRUE/FALSE

1. Business research attempts to provide accurate information in order to reduce uncertainty in decision-
making.
ANS: T

2. Business research is more than conducting surveys.

ANS: T

3. The term research means to search again.

ANS: T

4. A researcher needs to be objective in order to provide accurate information.

ANS: T

5. Research is restricted to for-profit organizations and should not be used by non-profit organizations.

ANS: F
Research also includes efforts that assist nonprofit organizations that exist to satisfy social needs.

6. Applied business research is conducted to address a specific business decision for a specific firm or
organization.

ANS: T

7. The procedures and techniques used by applied researchers and basic researchers differ substantially.

ANS: F
All research, whether basic or applied, involves the scientific method.

8. The scientific method used by researchers is essentially the same process in business as it is in physical
sciences.
 ANS: T

9. When ideas can be stated in researchable terms, we reach the analysis stage of the scientific method.

ANS: F
At this point, we reach the hypothesis stage of the scientific method.

11. The first stage in the decision-making process associated with the development and implementation of
a business strategy is to evaluate the available courses of action.

ANS: F
The first stage is identifying problems or opportunities.

12. Evaluation research is the formal, objective measurement and appraisal of the extent a given activity,
project, or program has achieved its objectives.

ANS: T

MULTIPLE CHOICE

1. _____ is the application of the scientific method in searching for the truth about business phenomena.
Business research c
.

ANS: C

2. All of the following are important aspects of the business research process EXCEPT:
searching for and collecting information a
.
idea and theory development b
.
analyzing data c
.
 making results publicly available d
.

ANS: D

3. Which of the following are the two types of research based on the specificity of its purpose?
basic and applied a
.

ANS: A

4. _____ is conducted to address a specific business decision for a specific firm or organization.
Applied business research d
ANS: D

5. Which type of research tries to verify a theory or to learn more about a concept and is not intended to
solve a particular business problem?
basic research b
.

ANS: B

6. Which of the following refers to the way researchers go about using knowledge and evidence to reach
objective conclusions about the real world?
scientific method c
.

ANS: C

13. When a manager decides not to do research because a decision needs to be made before the results of
the study can be analyzed, this is an example of which aspect in the determination of the need for
marketing research?
time constraints b
.
 ANS: B

14. In general, the _____ important a decision is strategically to the organization, the _____ likely that
research will be undertaken.
more; more b
.

ANS: B

COMPLETION

1. The application of the scientific method in searching for truth about business phenomena is known as
____________________.
ANS: business research

2. The two types of business research based on the specificity of its purpose are called
____________________ and ____________________.
ANS: basic, applied

3. Organizations conducting research in order to make a decision about a real situation faced in the
marketplace are conducting ____________________ research.
ANS: applied
4. Research that attempts to verify a theory but which is not intended to solve any specific business
problem is known as ____________________ research.

ANS: basic

5. The way researchers go about using knowledge and evidence to reach objective conclusions about the
real world is known as the ____________________.

ANS: scientific method