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Business100 oractice exam pt1

Total questions: 50

Worksheet time: 26mins

Name
Class
Date
1.

How are managers today different from managers in the past?

a)

Managers today are more likely to reprimand workers.

b)

Managers today emphasize teamwork.

c)

Managers in the past were less loyal to their employer.

d)

Managers in the past would use praise and gentle suggestions.

2.

One feature of a bureaucratic organization is that

a)

it encourages cooperation among different departments within the organization.

b)

employees know they are expected to follow the rules and regulations.

c)

there are very few layers of management.

d)

it is very responsive to the wants and needs of customers.

3.

The benefits of protective tariffs are

a)

they decrease the retail price of imported products.

b)

they decrease the cost imported products to the consumer (end user).

c)

they help develop friendlier trade relations with loyal trading partners. Both parties are protected.

d)

they protect domestic jobs by encouraging cost-sensitive consumers to purchase domestic products.

4.

The first step in the development of a PERT chart is

a)

estimating the time needed to complete each task.

b)

analyzing the tasks and determining the sequence in which they must be performed.

c)

assigning an estimated cost to each task.

d)

identifying the probabilities that each step in the project can be successfully completed without exceeding the estimated cost.

5.

Which statement about the impact of CAD/CAM on manufacturing is most accurate?

a)

CAD/CAM has made it possible to produce custom-designed products with little increase in costs.

b)

CAD/CAM is most useful to firms producing durable goods such as automobiles.

c)

CAD/CAM has replaced ERP as the most sophisticated resource planning technique.

d)

CAD/CAM allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks.

6.

Which statement about leadership styles is most accurate?

a)

Managers have no control over the leadership style they use.

b)

A manager should choose one style and use it consistently.

c)

Effective managers often use a variety of leadership styles.

d)

Managers should always start with an autocratic style, but can gradually switch to a more democratic approach if workers earn their trust.

7.

The Making Ethical Decisions box describes a dilemma facing a first-line manager. The dilemma revolves around what leadership issue?

a)

goal setting

b)

honesty

c)

communicating a vision

d)

embracing change

8.

What was the most important impact of the Hawthorne studies?

a)

It showed that employees could be programmed like machines to perform simple repetitive tasks, and thus led to the development of assembly lines.

b)

It showed that physical working conditions have no impact on worker productivity.

c)

It helped managers find the level of lighting associated with optimum productivity.

d)

It changed the direction of research away from Taylor’s scientific management toward the study of human-based management.

9.

9) In order to understand how to motivate the various generations, we need to understand each

generation’s preferred mode of communication. Look at the chart and fill in the blank cell.

Generation Preferred Communication Style at Work

Traditionalists: Face to face

Baby Boomers: (a)  

Gen Xers: E-mail

Millennials: Technology such as social media

10.

New developments in information technology have

a)

given firms even greater flexibility in their location decisions.

b)

reduced the impact government policies have on location decisions.

c)

caused a movement of firms back to urban areas where access to this technology is greatest.

d)

had little effect on business location decisions.

11.

Expectancy theory suggests that managers attempting to improve employee performance would be well advised to

a)

focus on setting monetary rewards for meeting the standards.

b)

make sure that all employees are expected to meet the same standards.

c)

keep salaries earned by employees confidential.

d)

set attainable performance goals.

12.

12) In the Hawthorne studies, employees were involved in the planning of the experiments. What

did this cause employees to do?

a)

A) set rather simple, easily attainable goals

b)

B) have high levels of productivity, but show disrespect for the managers in their test area

c)

C) believe that management respected their ideas, which motivated them

d)

D) become distracted and thus reduced productivity

13.

A just-in-time inventory system helps a producer reduce costs by

a)

expanding the number of suppliers available to a producer.

b)

limiting the amount of parts on hand for later use.

c)

limiting the amount of emissions into the environment.

d)

accessing the lowest-price parts at all times.

14.

Which technique would a team of workers be most likely to use if they wanted to evaluate several possible solutions to a specific problem their company needs to solve?

a)

PMI

b)

Regression analysis

c)

MBO

d)

PERT

15.

Which statement about operations management in the service sector is most accurate?

a)

Operations management in the service sector has done a good job of increasing output, but a poor job of improving quality.

b)

Operations management in the service sector is all about providing the service at the lowest cost.

c)

Operations management in the service sector has less flexibility than operations management in the manufacturing sector, because services are not technology driven.

d)

Operations management in the service sector should focus on providing customers with a good experience.

16.

Enterprise resource planning (ERP) goes beyond the capabilities of materials requirement planning (MRP) because it

a)

gives much more precise cost estimates.

b)

monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program.

c)

handles research data about more than one product at the same time.

d)

finds the critical path and computes its length.

17.

According to Maslow's hierarchy of needs theory, which issue represents a lower-order need?

a)

the need to locate your business in an area with a low crime rate

b)

the need for a promotion at work

c)

the need for a mentor to help you ascend within the company

d)

the need for a challenging project at work

18.

According to the Adapting to Change box, “Does the Rise of AI Mean the End of Managers,” what function of management is best suited for artificial intelligence to take over?

a)

administrative tasks such as updating spreadsheets

b)

strategic planning tasks like setting long-range goals

c)

recruiting tasks such as combing through resumes

d)

contingency planning tasks like developing crisis plans

19.

A benefit of CAD is

a)

it permits customization without a significant increase in price.

b)

it produces a higher quality product, which allows the manufacturer to charge more.

c)

it saves on materials costs.

d)

it basically eliminates the need for human intervention

20.

Which practice would fail to result in more open communication?

a)

developing opportunities for employees to offer open-ended responses to internal surveys

b)

using a passive voice when managers communicate with employees

c)

providing opportunities such as company picnics and open lunchrooms that promote active communication among employees and management

d)

providing training for improving listening skills

21.

The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm’s

a)

stakeholders.

b)

social environment.

c)

economic environment.

d)

market makers.

22.

According to Herzberg, job-related factors that motivated workers to work harder and more productively had one thing in common

a)

they allowed more productive employees to receive higher compensation.

b)

they focused on making the jobs performed by employees simpler to accomplish.

c)

they were related to job content.

d)

they were easy to explain and easy to measure.

23.

If global trade experts predict that the value of the dollar will soon fall, it will result in

a)

prices of imported goods rising, but prices of U.S. goods sold overseas falling.

b)

both the prices of imported goods rising and prices of U.S. goods sold overseas rising, as well.

c)

prices of imported goods falling and prices of U.S. goods sold overseas falling, as well.

d)

prices of imported goods falling, but prices of U.S. goods sold overseas rising.

24.

Someday, ____ could revolutionize the production of many items. For now, however, it is mostly used to create prototypes and molds.

a)

JIT

b)

lean manufacturing

c)
3D printing
d)

CAM

25.

Autocratic leadership is likely to be effective when

a)

the organization faces an emergency situation.

b)

subordinates are highly trained professionals.

c)

workers enjoy expressing their opinions and having a say in what is done.

d)

the manager is uncertain about the best strategy to pursue.

26.

According to Herzberg, which group of motivational factors would give employees the most satisfaction?

a)

Job security, Pay, Friendly boss, Interesting work

b)

Status, Interesting work, Peer relations, Earned recognition

c)

Pay, Friendly boss, Safe conditions, Growth opportunity

d)

A) B B) D C) C D) A

27.

A firm that is certified as meeting both ISO 9001 and ISO 14001 standards has demonstrated

a)

world-class management of both quality and environmental standards.

b)

sound financial and marketing practices.

c)

ethical treatment of both customers and employees.

d)

that its recruitment and training programs for employees protect and promote basic human rights.

28.

What statement reflects Weber’s view of a bureaucratic organization?

a)

Departments communicate with each other on a regular basis.

b)

Employees follow strict rules and regulations.

c)

Customer satisfaction is the number one priority.

d)

First-line workers are empowered to respond to the needs of customers.

29.

What statement reflects a clear performance standard?

a)

Decrease the number of products rejected due to manufacturing defects by 10% over the next 6 months.

b)

Make assistants more efficient.

c)

Bring about a significant improvement in the morale of all workers.

d)

Completely eliminate all customer complaints.

30.

Which question would be a concern addressed in a strategic plan?

a)

Which specific jobs should be assigned to each employee?

b)

How much output should be produced this week in a given production facility?

c)

Which computer software package should the firm’s human resources office use to manage the payroll?

d)

Should the firm make a long-term commitment to expand into new markets?

31.

Which position would be classified as a staff position?

a)

an attorney in the legal department of a manufacturing corporation

b)

a sales manager for a chain of clothing stores

c)

the chief executive officer of a small corporation

d)

an assembly-line worker for a major auto manufacturer

32.

In a just-in-time inventory system, suppliers

a)

have a great deal of flexibility in determining when to make deliveries.

b)

enjoy much lower delivery costs.

c)

are usually connected electronically so they know what will be needed and when.

d)

deliver materials and parts in large quantities only a few times a year.

33.

The purpose of determining the critical path on a PERT network is to

a)

establish a delivery schedule for a just-in-time inventory control program.

b)

estimate a payment schedule so that a budget can be established.

c)

identify the sequence of tasks that takes the longest to complete.

d)

find the sequence of events that is the most expensive to complete.

34.

Which qualities best summarize the type of leader future organizations are likely to need?

a)

maintain a strong track record of focusing on the accomplishment of financial objectives

b)

supply a vision, establish corporate values, and promote corporate ethics

c)

effectively use autocratic techniques to grow the company

d)

provide the sense of stability and orderliness the organization needs to withstand the challenges posed by a changing environment

35.

According to the Reaching Beyond Our Borders box, Tesla was able to do the impossible feat of

a)

opening up a new auto plant in China in less than 18 months.

b)

building an electric bicycle that can be recharged on solar power.

c)

sending the first U.S. citizen to the moon.

d)

building over 1 million vehicles each year.

36.

Which factor helps determine a manager’s span of control?

a)

method of accounting for production

b)

the number of global competitors

c)

the level of standardization of the work to be done

d)

form of business ownership

37.

According to Herzberg, the difference between motivators and hygiene factors is

a)

hygiene factors make employees more enthusiastic about the work itself, whereas motivators make employees enthusiastic about their next day off.

b)

motivators relate to job satisfaction, while hygiene factors have little effect on employee motivation.

c)

motivators cause persons to work smarter, while hygiene factors cause people to work harder.

d)

hygiene factors develop more loyalty from workers, while motivators make workers enthusiastic about moving on to a different company.

38.

When are economies of scale most achievable?

a)

when a firm purchases supplies and raw materials in large quantities.

b)

when front-line workers are empowered to make decisions.

c)

when production output remains steady.

d)

when a firm reduces its average cost of production as it produces more.

39.

Which statement best reflects the approach state and local governments take to influence the location decisions of businesses?

a)

State and local governments often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid.

b)

State and local governments try to avoid competition with other areas, because such competition usually backfires and creates ill will.

c)

State and local governments work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area.

d)

State and local governments no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results.

40.

40) One difference between managers and leaders is that

a)

A) managers are found in businesses while leaders operate in nonprofit organizations.

b)

B) managers use an autocratic approach while leaders embrace a democratic style.

c)

C) all employees can manage, but only top managers can lead.

d)

D) managers work to achieve stability while leaders embrace change.

41.

41) Which action is an important aspect of operations management?

a)

A) choosing the best location for a firm’s facilities

b)

B) developing the best advertising strategy to promote a firm’s products

c)

C) deciding whether to pay a dividend to the firm’s stockholders

d)

D) determining the best means of financing the firm’s operations

42.

42) The proven success of job specialization lies in the fact that

a)

A) it adds efficiency to the business’s operation by identifying tasks that some do better

than others.

b)

B) it leads to group think.

c)

C) it avoids the pitfalls of division of labor, where workers become removed from thinking conceptually about the business.

d)

D) it is a detractor to others who are thinking about entering your industry because it

successfully creates barriers to entry.

43.

In today's competitive environment, cost containment is extremely important to survival. What tends to increase efficiency in the production and distribution of goods?

a)

self-managed teams

b)

real-time data

c)

matrix restructuring

d)

tablets

44.

In a company in which an effective vision has been provided, A) there is no need for tactical planning. B) the economic and competitive environments tend to be much more predictable. C) employees are likely to have a sense of purpose and a common set of values. D) goals and objectives are no longer needed.

a)

there is no need for tactical planning.

b)

the economic and competitive environments tend to be much more predictable.

c)

employees are likely to have a sense of purpose and a common set of values.

d)

goals and objectives are no longer needed.

45.

Efficiency means

a)

producing the desired result.

b)

the amount of output you generate given the amount of input.

c)

the buying and selling of goods using the most amount of resources.

d)

producing goods and services using the least amount of resources.

46.

A company becomes lean by____its capacity to produce high-quality goods, while___its need for resources.

a)

increasing

decreasing

b)

investigating decreasing

c)

investigating

increasing

d)

increasing

planning

47.

The main idea in the Making Ethical Decisions box “Loyaltyloyalty or Profitability?” indicates

a)

that the goal of finding the lowest cost location should never be overshadowed by other concerns if the firm is to remain loyal to its stockholders.

b)

that many locations do not meet ISO 14001 standards.

c)

a need for firms to place a higher level of importance on time-to-market when choosing facilities locations.

d)

a need for firms to consider the economic impact of their existence and/or departure from a particular location.

48.

The surrounding factors that either help or hinder the development of businesses are referred to as

a)

the factors of production.

b)

the circular economy.

c)

economics.

d)

the business environment.

49.

According to Herzberg's views, which strategy would be most likely to result in a higher level of worker motivation?

a)

providing workers with ergonomic seating

b)

using time-motion studies to find the most efficient techniques for employees to use

c)

giving employees more responsibility in decision making

d)

posting a listing of work rules and policies

50.

In some countries it is customary to pay government officials to secure necessary business contracts and permits. American businesses must follow U.S. law and cannot make these payments according to the

a)

Foreign Antitrust Act

b)

Foreign Corrupt Practices Act

c)

Multinational Collusion Law

d)

World Trade Organization's code of ethic