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, TEST BANK FOR BUILDING MANAGEMENT SKILLS AN ACTION FIRST APPROACH, 1ST
EDITION, BY DAFT AND MARCIE.
TABLE OF CONTENTS
• Chapter 1: The Role of Business
• Chapter 2: Business Ethics and Social Responsibility
• Chapter 3: Business in a Borderless World
• Chapter 4: Managing Information Technology and E-Business
• Chapter 5: The Nature of Management
• Chapter 6: Organization, Teamwork, and Communication
• Chapter 7: Managing Service and Manufacturing Operations
• Chapter 8: Employee Motivation
• Chapter 9: Managing Human Resources
• Chapter 10: Customer-Driven Marketing
• Chapter 11: Product Decisions
• Chapter 12: Place (Distribution) Decisions
• Chapter 13: Promotion and Pricing Decisions
• Chapter 14: Money and the Financial System
• Chapter 15: Accounting and Financial Statements
• Chapter 16: Financial Management and Securities Markets
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,CHAPTER 0- INTRODUCTION
MULTIPLE CHOICE
1. What does the executive function include for the entire system?
a. direction c. coordination
b. organization d. all of these
ANS: D PTS: 1 DIF: Easy
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management
TOP: Managers Perform the Executive Function KEY: Bloom's: Knowledge
2. Which of the following are examples of bad management at a societal level?
a. lost business
b. not trusting others to make good judgements
c. Wall Street meltdown
d. all of these
ANS: C PTS: 1 DIF: Moderate
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management TOP: Skilled Managers
are Essential KEY: Bloom's: Analysis
3. How do you manage yourself?
a. individual problem c. motivating people
solving
b. linking- networking, d. communicating
collaborating
ANS: A PTS: 1 DIF: Easy
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management
TOP: What Does it Take to be a Skilled Manager? KEY: Bloom's: Comprehension
4. New managers are often surprised at how management is.
a. rewarding c. difficult
b. “people involved” d. easy
ANS: C PTS: 1 DIF: Easy
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management TOP: Why is Good
Management So Difficult? KEY: Bloom's: Comprehension
5. “Be friendly, be liked”, a network builder, and initiates changes for better performance all describe .
a. expectations based on non-management job
b. reality of the manager’s job
c. a specialists job
d. none of these
ANS: B PTS: 1 DIF: Moderate
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management
TOP: Why is Good Management So Difficult? KEY: Bloom's: Analysis
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, ( 20 APPLICATION QUESTIONS …DIFFICULT MODE)
Q1.
Which of the following best defines the primary role of business in society?
A) To maximize shareholder wealth at all costs
B) To satisfy the needs and wants of customers through goods and services
C) To provide employment opportunities regardless of profitability
D) To comply with government regulations only
Answer: B) To satisfy the needs and wants of customers through goods and services
Rationale: Businesses exist to identify and meet customer needs while generating profit. Profitability is essential,
but the core role is customer satisfaction. Without it, long-term sustainability fails.
Q2.
Which of the following illustrates the concept of value creation in business?
A) A company sells a product at a higher price than its competitors.
B) A bakery sources cheaper ingredients to maximize profit margins.
C) An airline provides flexible booking options that increase customer loyalty.
D) A government increases corporate tax rates.
Answer: C) An airline provides flexible booking options that increase customer loyalty.
Rationale: Value creation means providing benefits that exceed customer costs, often leading to loyalty. Pricing
higher or reducing input costs may improve profit, but without added value, sustainability is compromised.
Q3.
The role of profit in a business is best described as:
A) The sole purpose of business operations
B) A measure of how well a business meets customer needs
C) A government-mandated requirement
D) An indicator that a company has eliminated all risk
Answer: B) A measure of how well a business meets customer needs
Rationale: Profit results from delivering products and services that customers value. It reflects efficiency and
customer satisfaction, not simply an end in itself.
Downloaded by Collins Mwaniki ()
, TEST BANK FOR BUILDING MANAGEMENT SKILLS AN ACTION FIRST APPROACH, 1ST
EDITION, BY DAFT AND MARCIE.
TABLE OF CONTENTS
• Chapter 1: The Role of Business
• Chapter 2: Business Ethics and Social Responsibility
• Chapter 3: Business in a Borderless World
• Chapter 4: Managing Information Technology and E-Business
• Chapter 5: The Nature of Management
• Chapter 6: Organization, Teamwork, and Communication
• Chapter 7: Managing Service and Manufacturing Operations
• Chapter 8: Employee Motivation
• Chapter 9: Managing Human Resources
• Chapter 10: Customer-Driven Marketing
• Chapter 11: Product Decisions
• Chapter 12: Place (Distribution) Decisions
• Chapter 13: Promotion and Pricing Decisions
• Chapter 14: Money and the Financial System
• Chapter 15: Accounting and Financial Statements
• Chapter 16: Financial Management and Securities Markets
Downloaded by Collins Mwaniki ()
,CHAPTER 0- INTRODUCTION
MULTIPLE CHOICE
1. What does the executive function include for the entire system?
a. direction c. coordination
b. organization d. all of these
ANS: D PTS: 1 DIF: Easy
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management
TOP: Managers Perform the Executive Function KEY: Bloom's: Knowledge
2. Which of the following are examples of bad management at a societal level?
a. lost business
b. not trusting others to make good judgements
c. Wall Street meltdown
d. all of these
ANS: C PTS: 1 DIF: Moderate
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management TOP: Skilled Managers
are Essential KEY: Bloom's: Analysis
3. How do you manage yourself?
a. individual problem c. motivating people
solving
b. linking- networking, d. communicating
collaborating
ANS: A PTS: 1 DIF: Easy
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management
TOP: What Does it Take to be a Skilled Manager? KEY: Bloom's: Comprehension
4. New managers are often surprised at how management is.
a. rewarding c. difficult
b. “people involved” d. easy
ANS: C PTS: 1 DIF: Easy
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management TOP: Why is Good
Management So Difficult? KEY: Bloom's: Comprehension
5. “Be friendly, be liked”, a network builder, and initiates changes for better performance all describe .
a. expectations based on non-management job
b. reality of the manager’s job
c. a specialists job
d. none of these
ANS: B PTS: 1 DIF: Moderate
NAT: BUSPROG: Reflective Thinking LOC: DISC: Operations Management
TOP: Why is Good Management So Difficult? KEY: Bloom's: Analysis
Downloaded by Collins Mwaniki ()
, ( 20 APPLICATION QUESTIONS …DIFFICULT MODE)
Q1.
Which of the following best defines the primary role of business in society?
A) To maximize shareholder wealth at all costs
B) To satisfy the needs and wants of customers through goods and services
C) To provide employment opportunities regardless of profitability
D) To comply with government regulations only
Answer: B) To satisfy the needs and wants of customers through goods and services
Rationale: Businesses exist to identify and meet customer needs while generating profit. Profitability is essential,
but the core role is customer satisfaction. Without it, long-term sustainability fails.
Q2.
Which of the following illustrates the concept of value creation in business?
A) A company sells a product at a higher price than its competitors.
B) A bakery sources cheaper ingredients to maximize profit margins.
C) An airline provides flexible booking options that increase customer loyalty.
D) A government increases corporate tax rates.
Answer: C) An airline provides flexible booking options that increase customer loyalty.
Rationale: Value creation means providing benefits that exceed customer costs, often leading to loyalty. Pricing
higher or reducing input costs may improve profit, but without added value, sustainability is compromised.
Q3.
The role of profit in a business is best described as:
A) The sole purpose of business operations
B) A measure of how well a business meets customer needs
C) A government-mandated requirement
D) An indicator that a company has eliminated all risk
Answer: B) A measure of how well a business meets customer needs
Rationale: Profit results from delivering products and services that customers value. It reflects efficiency and
customer satisfaction, not simply an end in itself.
Downloaded by Collins Mwaniki ()
