BUAD 304 USC Midterm Mastery Bank | Organizational Behavior
& Leadership (Tolan Edition) | Graded A+ 2026-2027
BUAD 304 Midterm Practice Exam
University of Southern California
1. Which best defines organizational behavior (OB)?
A. Studying financial markets
B. Studying how individuals and groups act in organizations
C. Managing accounting systems
D. Designing marketing campaigns
Answer: B
Rationale: OB examines individual, group, and structural dynamics within organizations.
2. Emotional intelligence (EQ) primarily involves:
A. Logical reasoning
B. IQ measurement
C. Understanding and managing emotions
D. Financial literacy
Answer: C
Rationale: EQ includes self-awareness, self-regulation, empathy, and social skills.
3. According to Maslow, which need must be satisfied first?
A. Esteem
B. Self-actualization
C. Physiological
D. Belonging
Answer: C
Rationale: Basic physiological needs form the foundation of Maslow’s hierarchy.
,4. Herzberg’s hygiene factors include:
A. Achievement
B. Salary
C. Recognition
D. Growth
Answer: B
Rationale: Hygiene factors (e.g., salary, work conditions) prevent dissatisfaction but do not
motivate.
5. Expectancy theory suggests motivation depends on:
A. Personality traits
B. Rewards only
C. Effort-performance-reward linkage
D. Seniority
Answer: C
Rationale: Motivation is driven by belief that effort leads to performance and rewards.
6. Transformational leaders primarily:
A. Focus on transactions
B. Inspire and create vision
C. Avoid risk
D. Maintain status quo
Answer: B
Rationale: Transformational leaders motivate through inspiration and change.
7. Transactional leadership is based on:
A. Charisma
B. Rewards and punishments
C. Vision
D. Innovation
,Answer: B
Rationale: Transactional leaders use contingent rewards.
8. Groupthink occurs when:
A. Teams debate thoroughly
B. Members prioritize consensus over critical thinking
C. Diversity is high
D. Conflict is encouraged
Answer: B
Rationale: Groupthink suppresses dissent to maintain harmony.
9. Which bias involves seeking information that confirms existing beliefs?
A. Anchoring
B. Confirmation bias
C. Availability bias
D. Framing
Answer: B
Rationale: Confirmation bias favors supporting evidence.
10. Organizational culture refers to:
A. Dress code
B. Shared values and norms
C. Compensation plans
D. Marketing strategy
Answer: B
Rationale: Culture reflects shared assumptions and behaviors.
11. Psychological safety allows employees to:
A. Avoid work
B. Take interpersonal risks
, C. Ignore rules
D. Compete aggressively
Answer: B
Rationale: Psychological safety promotes open communication.
12. Equity theory focuses on:
A. Fairness of outcomes
B. Team cohesion
C. Leadership charisma
D. Innovation
Answer: A
Rationale: Employees compare input-output ratios.
13. The Big Five personality trait “conscientiousness” relates to:
A. Anxiety
B. Organization and dependability
C. Creativity
D. Sociability
Answer: B
Rationale: Conscientious individuals are disciplined and reliable.
14. Power derived from formal position is:
A. Referent power
B. Expert power
C. Legitimate power
D. Reward power
Answer: C
Rationale: Legitimate power stems from official authority.
15. Conflict that improves decision-making is called:
& Leadership (Tolan Edition) | Graded A+ 2026-2027
BUAD 304 Midterm Practice Exam
University of Southern California
1. Which best defines organizational behavior (OB)?
A. Studying financial markets
B. Studying how individuals and groups act in organizations
C. Managing accounting systems
D. Designing marketing campaigns
Answer: B
Rationale: OB examines individual, group, and structural dynamics within organizations.
2. Emotional intelligence (EQ) primarily involves:
A. Logical reasoning
B. IQ measurement
C. Understanding and managing emotions
D. Financial literacy
Answer: C
Rationale: EQ includes self-awareness, self-regulation, empathy, and social skills.
3. According to Maslow, which need must be satisfied first?
A. Esteem
B. Self-actualization
C. Physiological
D. Belonging
Answer: C
Rationale: Basic physiological needs form the foundation of Maslow’s hierarchy.
,4. Herzberg’s hygiene factors include:
A. Achievement
B. Salary
C. Recognition
D. Growth
Answer: B
Rationale: Hygiene factors (e.g., salary, work conditions) prevent dissatisfaction but do not
motivate.
5. Expectancy theory suggests motivation depends on:
A. Personality traits
B. Rewards only
C. Effort-performance-reward linkage
D. Seniority
Answer: C
Rationale: Motivation is driven by belief that effort leads to performance and rewards.
6. Transformational leaders primarily:
A. Focus on transactions
B. Inspire and create vision
C. Avoid risk
D. Maintain status quo
Answer: B
Rationale: Transformational leaders motivate through inspiration and change.
7. Transactional leadership is based on:
A. Charisma
B. Rewards and punishments
C. Vision
D. Innovation
,Answer: B
Rationale: Transactional leaders use contingent rewards.
8. Groupthink occurs when:
A. Teams debate thoroughly
B. Members prioritize consensus over critical thinking
C. Diversity is high
D. Conflict is encouraged
Answer: B
Rationale: Groupthink suppresses dissent to maintain harmony.
9. Which bias involves seeking information that confirms existing beliefs?
A. Anchoring
B. Confirmation bias
C. Availability bias
D. Framing
Answer: B
Rationale: Confirmation bias favors supporting evidence.
10. Organizational culture refers to:
A. Dress code
B. Shared values and norms
C. Compensation plans
D. Marketing strategy
Answer: B
Rationale: Culture reflects shared assumptions and behaviors.
11. Psychological safety allows employees to:
A. Avoid work
B. Take interpersonal risks
, C. Ignore rules
D. Compete aggressively
Answer: B
Rationale: Psychological safety promotes open communication.
12. Equity theory focuses on:
A. Fairness of outcomes
B. Team cohesion
C. Leadership charisma
D. Innovation
Answer: A
Rationale: Employees compare input-output ratios.
13. The Big Five personality trait “conscientiousness” relates to:
A. Anxiety
B. Organization and dependability
C. Creativity
D. Sociability
Answer: B
Rationale: Conscientious individuals are disciplined and reliable.
14. Power derived from formal position is:
A. Referent power
B. Expert power
C. Legitimate power
D. Reward power
Answer: C
Rationale: Legitimate power stems from official authority.
15. Conflict that improves decision-making is called:
