Peregrine Business Exam Questions With Correct Answers
2026 100% Guarantee Pass
1. What is the primary goal of firms in economic theory?
maximize profits
maximize employee satisfaction
minimize costs
maximize market share
2. Describe how Fiscal Policy and Monetary Policy differ in their approach to
managing the economy.
Fiscal Policy is managed by the central bank, while Monetary Policy is
managed by the government.
Fiscal Policy focuses on interest rates, while Monetary Policy focuses
on government spending.
Fiscal Policy involves government spending and taxation, while
Monetary Policy involves controlling the money supply and interest
rates.
Fiscal Policy and Monetary Policy are essentially the same and used
interchangeably.
3. Which of the following statements is true concerning change?
Success is always guaranteed with change.
Global competition is the leading force driving change at work.
When an organization undergoes change, employees are usually
open and responsive.
You can never have too much change in an organization.
,4. If a manager wants to enhance employee motivation using Expectancy
Theory, what strategies should they implement?
The manager should ignore employee feedback.
The manager should focus solely on increasing salaries.
The manager should implement strict performance evaluations
without explanation.
The manager should ensure that employees understand how their
efforts lead to performance and how that performance is linked to
rewards.
5. _____ is a leading force driving change at work that has increased significantly
during the past few decades, especially in industries such as banking,
finance, and air transportation.
Employee attrition
Politics
Global competition
Process management
6. Describe how Behavioral Leadership Theory differs from Trait Theory in
leadership studies.
Behavioral Leadership Theory is concerned with the financial
outcomes of leadership, whereas Trait Theory is about team dynamics.
Behavioral Leadership Theory only applies to corporate settings, while
Trait Theory is applicable in all environments.
Behavioral Leadership Theory ignores follower dynamics, while Trait
Theory includes them.
, Behavioral Leadership Theory emphasizes observable actions of
leaders, while Trait Theory focuses on inherent qualities and
characteristics of leaders.
7. In a scenario where a manager develops a strong relationship with only a few
team members, what might be a potential outcome based on the Leader-
Member Exchange Theory?
Increased motivation and performance among those team
members.
A lack of communication within the team.
Uniform performance across all team members.
Decreased overall team cohesion.
8. Which account is directly affected by the payment of dividends?
Retained Earnings
Accounts Receivable
Dividends
Common Stock
9. One way human resource planning links to strategic planning is by providing
a set of inputs into the
Strategy formulation process
Strategic analysis process
Source of competitive advantage
Strategy implementation process
, 10. What is the first step in the notice-and-comment rulemaking process used
by the Federal Highway Administration?
the filing of a complaint against a charged party.
the solicitation of public comments
the publication of a notice of proposed rulemaking.
a request to Congress to enact enabling legislation.
11. Describe the relationship between total revenue, price, and quantity sold.
Total revenue decreases when prices rise.
Total revenue increases when either the price of a product rises or
the quantity sold increases.
Total revenue is unaffected by changes in price or quantity.
Total revenue only increases with higher production costs.
12. Total quality management is most advantageous for firms using which
strategy?
Focused differentiation
Integrated cost leadership/differentiation
Focused cost leadership
Cost leadership
13. Describe the difference between intrinsic and extrinsic motivators according
to Herzberg's two-factor theory.
Intrinsic motivators are less important than extrinsic motivators in the
workplace.
2026 100% Guarantee Pass
1. What is the primary goal of firms in economic theory?
maximize profits
maximize employee satisfaction
minimize costs
maximize market share
2. Describe how Fiscal Policy and Monetary Policy differ in their approach to
managing the economy.
Fiscal Policy is managed by the central bank, while Monetary Policy is
managed by the government.
Fiscal Policy focuses on interest rates, while Monetary Policy focuses
on government spending.
Fiscal Policy involves government spending and taxation, while
Monetary Policy involves controlling the money supply and interest
rates.
Fiscal Policy and Monetary Policy are essentially the same and used
interchangeably.
3. Which of the following statements is true concerning change?
Success is always guaranteed with change.
Global competition is the leading force driving change at work.
When an organization undergoes change, employees are usually
open and responsive.
You can never have too much change in an organization.
,4. If a manager wants to enhance employee motivation using Expectancy
Theory, what strategies should they implement?
The manager should ignore employee feedback.
The manager should focus solely on increasing salaries.
The manager should implement strict performance evaluations
without explanation.
The manager should ensure that employees understand how their
efforts lead to performance and how that performance is linked to
rewards.
5. _____ is a leading force driving change at work that has increased significantly
during the past few decades, especially in industries such as banking,
finance, and air transportation.
Employee attrition
Politics
Global competition
Process management
6. Describe how Behavioral Leadership Theory differs from Trait Theory in
leadership studies.
Behavioral Leadership Theory is concerned with the financial
outcomes of leadership, whereas Trait Theory is about team dynamics.
Behavioral Leadership Theory only applies to corporate settings, while
Trait Theory is applicable in all environments.
Behavioral Leadership Theory ignores follower dynamics, while Trait
Theory includes them.
, Behavioral Leadership Theory emphasizes observable actions of
leaders, while Trait Theory focuses on inherent qualities and
characteristics of leaders.
7. In a scenario where a manager develops a strong relationship with only a few
team members, what might be a potential outcome based on the Leader-
Member Exchange Theory?
Increased motivation and performance among those team
members.
A lack of communication within the team.
Uniform performance across all team members.
Decreased overall team cohesion.
8. Which account is directly affected by the payment of dividends?
Retained Earnings
Accounts Receivable
Dividends
Common Stock
9. One way human resource planning links to strategic planning is by providing
a set of inputs into the
Strategy formulation process
Strategic analysis process
Source of competitive advantage
Strategy implementation process
, 10. What is the first step in the notice-and-comment rulemaking process used
by the Federal Highway Administration?
the filing of a complaint against a charged party.
the solicitation of public comments
the publication of a notice of proposed rulemaking.
a request to Congress to enact enabling legislation.
11. Describe the relationship between total revenue, price, and quantity sold.
Total revenue decreases when prices rise.
Total revenue increases when either the price of a product rises or
the quantity sold increases.
Total revenue is unaffected by changes in price or quantity.
Total revenue only increases with higher production costs.
12. Total quality management is most advantageous for firms using which
strategy?
Focused differentiation
Integrated cost leadership/differentiation
Focused cost leadership
Cost leadership
13. Describe the difference between intrinsic and extrinsic motivators according
to Herzberg's two-factor theory.
Intrinsic motivators are less important than extrinsic motivators in the
workplace.
