BUS5116 Leading Organizations Units 1-4 Test Bank — Leadership
Foundations, Trait, Contingency, and Transformational Theories
Course:
BUS5116 Leading Organizations — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Comprehensive Test Bank — 60 Q&A with Verified Answers
BUS5116 Units 1-4 Test Bank
60 Questions with Verified Correct Answers | 100% Complete Solutions
Question 1 — Unit 1:
Which of the following distinctions best characterizes the difference between management and
leadership according to John Kotter's framework?
A) Management focuses on establishing direction, while leadership focuses on executing the plan.
B) Management relies on referent power, while leadership relies on legitimate power.
C) Management is about coping with complexity, whereas leadership is about coping with change.
D) Management is primarily concerned with emotional intelligence, while leadership requires
technical expertise.
Answer: C
Explanation:
John Kotter famously posited that management is about coping with complexity through planning,
organizing, and controlling. Leadership, by contrast, is about coping with change by setting a
vision, aligning people, and motivating them.
Question 2 — Unit 1:
,You are appointed to head a division that has experienced rapid market shifts and declining
morale. Instead of restructuring the budget immediately, you spend the first month articulating a
new compelling vision and holding town halls to align the team. Which process are you primarily
demonstrating?
A) Transactional management
B) Strategic leadership
C) Operational control
D) Administrative management
Answer: B
Explanation:
Strategic leadership involves envisioning the future, aligning subordinates with that vision, and
instilling motivation to navigate change. Budget restructuring is an administrative management
task, whereas your actions focus on direction and alignment.
Question 3 — Unit 1:
In the context of French and Raven's bases of power, which type of power is most closely
associated with the personal characteristics, charisma, and respect a leader commands among
followers?
A) Legitimate power
B) Coercive power
C) Referent power
D) Expert power
Answer: C
Explanation:
Referent power is derived from followers' admiration, respect, and desire to identify with the
leader. It is a form of personal power that relies heavily on interpersonal relationships and
charisma rather than formal organizational authority.
Question 4 — Unit 1:
A senior executive consistently ensures that her actions are transparent and that she strictly
adheres to the organization's stated values, even when it costs the company a lucrative but
questionable contract. This behavior exemplifies which concept?
A) Machiavellianism
B) Ethical leadership
, C) Pragmatic management
D) Bounded rationality
Answer: B
Explanation:
Ethical leadership involves acting in accordance with moral principles and demonstrating
normative appropriate conduct through personal actions and relationships. The executive
sacrifices short-term gain to uphold the organization's integrity.
Question 5 — Unit 1:
According to Mintzberg's managerial roles, when a leader is negotiating a critical merger with a
competitor, which specific role are they fulfilling?
A) Informational role
B) Interpersonal role
C) Decisional role
D) Liaison role
Answer: C
Explanation:
Mintzberg categorized the negotiator role under decisional roles, which involve making significant
choices that affect the organization. In this capacity, the leader commits organizational resources
to a new strategic path.
Question 6 — Unit 1:
You lead a multinational team and notice that team members from high-power-distance cultures
are hesitant to challenge your ideas. To foster innovation, you implement anonymous feedback
channels. This action demonstrates competence in:
A) Global leadership and cultural intelligence
B) Autocratic decision-making
C) Structural contingency theory
D) Centralized control
Answer: A
Explanation:
Foundations, Trait, Contingency, and Transformational Theories
Course:
BUS5116 Leading Organizations — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Comprehensive Test Bank — 60 Q&A with Verified Answers
BUS5116 Units 1-4 Test Bank
60 Questions with Verified Correct Answers | 100% Complete Solutions
Question 1 — Unit 1:
Which of the following distinctions best characterizes the difference between management and
leadership according to John Kotter's framework?
A) Management focuses on establishing direction, while leadership focuses on executing the plan.
B) Management relies on referent power, while leadership relies on legitimate power.
C) Management is about coping with complexity, whereas leadership is about coping with change.
D) Management is primarily concerned with emotional intelligence, while leadership requires
technical expertise.
Answer: C
Explanation:
John Kotter famously posited that management is about coping with complexity through planning,
organizing, and controlling. Leadership, by contrast, is about coping with change by setting a
vision, aligning people, and motivating them.
Question 2 — Unit 1:
,You are appointed to head a division that has experienced rapid market shifts and declining
morale. Instead of restructuring the budget immediately, you spend the first month articulating a
new compelling vision and holding town halls to align the team. Which process are you primarily
demonstrating?
A) Transactional management
B) Strategic leadership
C) Operational control
D) Administrative management
Answer: B
Explanation:
Strategic leadership involves envisioning the future, aligning subordinates with that vision, and
instilling motivation to navigate change. Budget restructuring is an administrative management
task, whereas your actions focus on direction and alignment.
Question 3 — Unit 1:
In the context of French and Raven's bases of power, which type of power is most closely
associated with the personal characteristics, charisma, and respect a leader commands among
followers?
A) Legitimate power
B) Coercive power
C) Referent power
D) Expert power
Answer: C
Explanation:
Referent power is derived from followers' admiration, respect, and desire to identify with the
leader. It is a form of personal power that relies heavily on interpersonal relationships and
charisma rather than formal organizational authority.
Question 4 — Unit 1:
A senior executive consistently ensures that her actions are transparent and that she strictly
adheres to the organization's stated values, even when it costs the company a lucrative but
questionable contract. This behavior exemplifies which concept?
A) Machiavellianism
B) Ethical leadership
, C) Pragmatic management
D) Bounded rationality
Answer: B
Explanation:
Ethical leadership involves acting in accordance with moral principles and demonstrating
normative appropriate conduct through personal actions and relationships. The executive
sacrifices short-term gain to uphold the organization's integrity.
Question 5 — Unit 1:
According to Mintzberg's managerial roles, when a leader is negotiating a critical merger with a
competitor, which specific role are they fulfilling?
A) Informational role
B) Interpersonal role
C) Decisional role
D) Liaison role
Answer: C
Explanation:
Mintzberg categorized the negotiator role under decisional roles, which involve making significant
choices that affect the organization. In this capacity, the leader commits organizational resources
to a new strategic path.
Question 6 — Unit 1:
You lead a multinational team and notice that team members from high-power-distance cultures
are hesitant to challenge your ideas. To foster innovation, you implement anonymous feedback
channels. This action demonstrates competence in:
A) Global leadership and cultural intelligence
B) Autocratic decision-making
C) Structural contingency theory
D) Centralized control
Answer: A
Explanation:
