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Principle of Management – 60 MCQs

– Question 1 of 20  Which of the following is NOT a benefitof planning? A. Helps you check on your progress B. Helps you thinkahead C. Helps you cope with uncertainty D. Helps you compare yourresults to a standard  
Question 2 of 20  XYZ Company scans it environment regularly.However, it does not tend to seek opportunities outside its presentmarkets. This company would most likely be a(n): A. reactor. B.prospector. C. analyzer. D. defender.  
Question 3 of 20  A company that believes in letting otherorganizations take the risks of product development and marketingand then imitate what seems to work best is called a(n): A.reactor. B. prospector. C. analyzer. D. defender.  
Question 4 of 20  A “vision statement” is: A. a statement ofthe organization’s purpose. B. a statement of what the organizationsees in its environment. C. a statement of what the organizationwants to become. D. a statement of the organization’s reason forbeing.
 Question 5 of 20  What is the time frame of a strategicplan? A. 15 – 25 years B. 5 – 15 years C. 1 – 5 years D. 6 – 24months  
Question 6 of 20  Harley Davidson Motorcycles states that itwill improve its profit margin by 15% by ensuring continued highsales of its products for the next three years. This is a statementof Harley Davidson’s: A. operational goal. B. tactical goal. C.strategic goal. D. management objective.
 Question 7 of 20  A “SMART” goal is one that is: A.specific, maintainable, attainable, realistic, and time-bound. B.specific, measurable, attainable, results-oriented, and time-bound.C. specific, maintainable, achievement-oriented, real-time, andtargeted. D. specific, measurable, affordable, realistic, andtargeted.  
Question 8 of 20  MBO stands for: A. Management byObservation. B. Management by Objectives. C. Management byObjection. D. Management by Obligation.  
Question 9 of 20  MBO was developed by Peter Drucker in the:A. 1980s. B. 1970s. C. 1960s. D. 1950s.  
Question 10 of 20  In practicing MBO, a manager should: A.decide on goals for employees and inform them of these goalsclearly. B. let employees set their own goals. C. set objectivesjointly with employees. D. make sure goals are stated generally sothey can cover all situations that might arise.  
Question 11 of 20  Effective strategic management involves: A.only top management. B. only top and middle management. C. onlymiddle and lower management levels. D. all levels of management. 
Question 12 of 20  Bad planning usually results from all ofthese EXCEPT: A. lack of competition in the industry. B.ineffective group dynamics. C. poor assessment of an organization’scapabilities. D. information overload.  
Question 13 of 20  The most important thing a good missionstatement should express is: A. the organization’s attitude towardits employees. B. the geographical areas in which the firm willcompete. C. the firm’s basic technology. D. the firm’s purpose.
 Question 14 of 20  “SWOT” analysis is also known as: A.strategic control. B. situational analysis. C. trend analysis. D.contingency planning.  
Question 15 of 20  Karen has just completed an assessment thatindicates that her employees lack technological expertise for a newproduct line. She has engaged in analysis of her firm’s: A.strengths. B. weaknesses. C. opportunities. D. threats.  
Question 16 of 20  A vision or projection of the future iscalled a: A. trend. B. forecast. C. contingency. D. strategy. 
Question 17 of 20  The creation of alternative hypotheticalbut equally likely future conditions is called: A. contingencyplanning. B. trend analysis. C. balancing the scorecard. D.strategy formulation.  
Question 18 of 20  An organization that is offering unique,superior products or services to a wide market is pursuing astrategy of: A. cost leadership. B. differentiation. C. cost focus.D. retrenchment.  
Question 19 of 20  In the growth stage of the product lifecycle, most products are probably: A. making large profits. B.making moderate profits. C. making small profits. D. breaking even. 
Question 20 of 20  Keeping track of what competitor’s aredoing is called: A. forecasting. B. contingency planning. C.strategic control.
It looks like the choices cut off – the answer is competitiveintelligence – please let me know if this is not a choice
 
Set-2
Question 1 of 20
    

If you have to stop to think about what kind of decision needs tobe made and when, who will decide it, who needs to be consultedabout it, and who should be informed about it, you are makinga:
A. rational decision.
B. non-rational decision.
C. programmed decision.
D. nonprogrammed decision.

Question 2 of 20
    

A “directive” decision-making style reflects a person who is__________ in his value orientation and __________ in his tolerancefor ambiguity.
A. task/technical; high
B. task/technical; low
C. people/social; high
D. people/social; low

Question 3 of 20
    

A person with a conceptual decision-making style is __________ inher value orientation and __________ in her tolerance forambiguity.
A. task/technical; high
B. task/technical; low
C. people/social; high
D. people/social; low

Question 4 of 20
    

Bill is supportive of his employees and prefers to have verbalconversations rather than written memos. His style is:
A. analytical.
B. behavioral.
C. conceptual.
D. directive.

Question 5 of 20
    

Ian is very creative and prefers to look at the long-term issueswhen making a decision. He considers a wide variety of possibleactions based on an open mind about the possibilities. Sometimeshis coworkers find him indecisive because of these tendencies. Ianis probably __________ in his decision-making style.
A. analytical
B. behavioral
C. conceptual
D. directive

Question 6 of 20
    

Determining what is actually happening versus what is desirable isassociated with which stage of the rational decision makingmodel?
A. Stage 1
B. Stage 2
C. Stage 3
D. Stage 4

Question 7 of 20
    

Which stage in the rational decision making model answers what isfeasible?
A. Stage 1
B. Stage 2
C. Stage 3
D. Stage 4

Question 8 of 20
    

Managers who seek alternatives until they find one that issatisfactory but not optimal, are engaged in:
A. coalitioning.
B. incrementing.
C. satisficing.
D. intuitioning.

Question 9 of 20
    

The model that suggests that managers take small, short-term stepsto alleviate a problem is the __________ model.
A. coalitional
B. incremental
C. satisficing
D. garbage can

Question 10 of 20
    

Which of the following is NOT an implementation principle describedby Pfeffer and Sutton?
A. If all else fails, slow the spread of bad practices
B. Evidence-based management is only for senior executives
C. Treat your organization as an unfinished project
D. Like everything else, you still need to sell it

A graph of decisions and their possible consequences is known asa:
A. decision tree.
B. Gantt chart.
C. decision chart.
D. decision matrix.

Question 12 of 20
    

The disadvantages of group decision making include all EXCEPT whichof the following?
A. Groupthink
B. Satisficing
C. Dominating individuals
D. Different perspectives

Question 13 of 20
    

The tendency of group members to agree for the sake of unanimity iscalled:
A. goal displacement.
B. satisficing.
C. groupthink.
D. heuristics.

Question 14 of 20
    

When the primary goal of a group is subsumed by a secondary goal,__________ has occurred.
A. goal displacement
B. satisficing
C. groupthink
D. heuristics

Question 15 of 20
    

Which of the following statements is true?
A. Individuals are always better than groups in decisionmaking.
B. Groups are always better than individuals in decisionmaking.
C. Involving groups in decision making always increases individualperformance.
D. Managers should utilize groups in decision making on a selectivebasis.

Question 16 of 20
    

A manager decides to take no action in the belief that there willbe no great negative consequences. He or she is engaged in:
A. panic.
B. relaxed avoidance.
C. decreased involvement.
D. defensive avoidance.

Question 17 of 20
    

Strategies that simplify the process of decision making formanagers are called:
A. relaxed change processes.
B. heuristics.
C. rubrics.
D. rational models.

Question 18 of 20
    

Managers in company X have given employees raises year after yearbased on what they had given the year before even though theseraises were completely out of line with what other companies arepaying for the same skills. This is an example of a(n):
A. anchoring and adjustment bias.
B. escalation of commitment bias.
C. recency effect.
D. availability bias.

Question 19 of 20
    

Ling Lee procrastinates making a decision about the morale problemamong assembly workers. After all, she thinks, maybe someone elsewill figure out what to do. Ling Lee is experiencing a __________reaction.
A. relaxed change
B. relaxed avoidance
C. defensive avoidance
D. panic

Question 20 of 20
    

Having just spent $1500 for a new engine for his old car, Raimundonow learns his transmission needs to be replaced. Raimundo decidesto junk the car. Raimundo has avoided continuing the __________bias.
A. anchoring
B. adjustment
C. availability
D. escalation of commitment

Oline Exam 5_05

Question 1 of 20
    

Which of the following is NOT a function of organizationalculture?
A. It promotes social-system stability.
B. It shapes behavior by helping employees make sense of theirsurroundings.
C. It facilitates collective commitment.
D. It allows outsiders to understand the organization better.

Question 2 of 20
    

The process of assigning meaningful authority and responsibility tomanagers and employees lower in the hierarchy is called:
A. accountability.
B. responsibility.
C. delegation.
D. position power.

Question 3 of 20
    

In ABC Insurance, almost all important decisions are made by topmanagement. ABC is an example of a(n) __________ organization.
A. centralized
B. nonprofit
C. matrix
D. organic

Question 4 of 20    

In a functional structure, people with __________ are groupedtogether.
A. similar occupational specialties
B. similar organizational levels
C. jobs related to similar products
D. jobs in the same geographic region

Question 5 of 20
    

__________ group activities around a defined regionallocations.
A. Functional structures
B. Conglomerates
C. Matrix organizations
D. Geographic divisions

Question 6 of 20
    

An organization that contains two command structures, and in whichsome people actually have two bosses, is a:
A. matrix.
B. team-based structure.
C. hybrid.
D. network structure.

Question 7 of 20
    

An organization that is actually a connection among independentfirms by computer connections is called a:
A. matrix organization.
B. conglomerate.
C. network structure.
D. hybrid.

Question 8 of 20
    

Which of the following is NOT an action connected with affirmativeaction programs?
A. Establishing quotas for minority hiring
B. Actively recruiting minorities
C. Establishing minority hiring goals
D. Eliminating prejudicial interview questions

Question 9 of 20
    

Which of the following permits suits against employers for punitivedamages in cases of intentional discrimination?
A. Civil Rights Act
B. COBRA
C. ERISA
D. Sarbanes-Oxley Act

Question 10 of 20
    

Which of the following external recruiting methods works best?
A. Private employment agencies
B. Employee referrals
C. Newspaper ads
D. College recruiters

Question 11 of 20
    

Which of the followings is NOT something a manager should do inconducting an interview?
A. Ignore the resume; that way, the manager is not biased for oragainst a candidate
B. Write out interview questions; that way, the manager can ask thesame questions of each candidate
C. Limit questions to knowledge, skills, and qualities relevant tothe job
D. Ask about discrepancies in what the candidate tells herA managershould review the resume to establish what questions she needs toask during the interview.

Question 12 of 20
    

The Myers-Briggs Type Indicator is considered a __________test.
A. job routine
B. performance
C. personality
D. validity

Question 13 of 20
    

__________ refers to educating __________ employees in how tobetter to their current jobs.
A. Training; technical and operational
B. Training; managerial and professional
C. Development; technical and operational
D. Development; managerial and professional

Question 14 of 20
    

Lupe is conducting a performance appraisal on Martin. The form hercompany uses asks her to list the objectives that she and Martinagreed to last year and indicate how well Martin met eachobjective. Lupe’s company is using a(n) __________ system ofperformance appraisal.
A. objective
B. BARS
C. informal
D. 360-degree appraisal

Question 15 of 20
    

Which of the following is NOT an example of an employeebenefit?
A. Sick days
B. Health club memberships
C. Legal advice
D. Worker’s compensation

Question 16 of 20
    

A change in response to problems or opportunities is called a:
A. reactive change.
B. incremental change.
C. proactive change.
D. process change.

Question 17 of 20
    

More companies are forging strategic alliances with other firms.This is an example of a __________ change.
A. market
B. social
C. demographic
D. political

Question 18 of 20
    

At the Big Apple Department Store, employees generally know thatduring annual inventory, they are required to work overnightshifts. This is an example of a(n) __________ change.
A. adaptive
B. reactive
C. innovative
D. proactive

Question 19 of 20
    

Your Friendly Insurance Company has decided that its claimsadjusters must be available to meet with claimants in the eveningsand on weekends, a practice that some other insurance carriers haverecently adopted. This is an example of a(n) __________ change.
A. radically innovative
B. innovative
C. adaptive
D. proactive

Question 20 of 20
    

During the “changing” stage, managers should:
A. give employees reasons to change.
B. reinforce the desired change.
C. give people new models of behavior.
D. reduce the barriers to change.


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