BUS 100 Exam 2 – Introduction to Business – 2026 – Study and Practice Guide
Theory X assumptions - correct answer ✔✔ Workers dislike work and avoid it. Fear is
motivation, and people prefer to be directed, avoiding responsibility.
Theory Y assumptions - correct answer ✔✔ work is natural. Different rewards can be
motivating, people seek responsibility. the capacity for imagination is popular and intellectual
capacity is underutilized in the workplace.
Expectancy Theory - correct answer ✔✔ Effort -> performance -> reward. If any of these are
broken, employee will not be motivated.
4 functions of management (POLC) - correct answer ✔✔ planning, organizing, leading and
controlling
3 skills and the types of managers (THC) - correct answer ✔✔ Top level- conceptual skills
middle level- human skills
first level- technical skills
SWOT, which are internal which are external? - correct answer ✔✔ Strengths and weakness=
internal. opportunities and threats= external.
Maslow's hierarchy of needs theory - correct answer ✔✔ From basic to abstract, as each need is
met people become more motivated: physiological (basic survival), safety (feel secure), social
(belonging, connected to others), esteem (self respect and respect from others), and self-
actualization (need for fulfillment)
strategic planning - correct answer ✔✔ top level managers: establish a vision for the company,
define lond term objectives and priotities.
, tactical planning - correct answer ✔✔ middle managers: applying strategic plan to their specific
areas of responsibility
operational planning - correct answer ✔✔ first-line managers: applying the tactical plans to
daily, weekly, and monthly operations.
Organization models (3 names) - correct answer ✔✔ line organizations, line and staff
organizations, and matrix organizations
Line organization - correct answer ✔✔ each person is directly accountable to the person
immediately above them. Quick decision making and no fuzziness about who is responsible for
what.
line and staff organization - correct answer ✔✔ line managers supervise the functions that
contribute directly to production and marketing. staff managers supervise the functions that
provide advice and assistance to the line departments.
matrix organizations - correct answer ✔✔ brings together specialists from different areas of the
company to work on individual projects on a temporary basis. Encourages teamwork and
communication and flexibility.
trade surplus - correct answer ✔✔ the total value of exports is higher than the total value of
imports
trade deficit - correct answer ✔✔ total value of imports is higher than the total value of exports
balance of trade - correct answer ✔✔ basic measure of the difference between a nations
exports and imports. includes the value of both goods and service and incorporates trade with
all foreign nations. (surplus and deficit)
Theory X assumptions - correct answer ✔✔ Workers dislike work and avoid it. Fear is
motivation, and people prefer to be directed, avoiding responsibility.
Theory Y assumptions - correct answer ✔✔ work is natural. Different rewards can be
motivating, people seek responsibility. the capacity for imagination is popular and intellectual
capacity is underutilized in the workplace.
Expectancy Theory - correct answer ✔✔ Effort -> performance -> reward. If any of these are
broken, employee will not be motivated.
4 functions of management (POLC) - correct answer ✔✔ planning, organizing, leading and
controlling
3 skills and the types of managers (THC) - correct answer ✔✔ Top level- conceptual skills
middle level- human skills
first level- technical skills
SWOT, which are internal which are external? - correct answer ✔✔ Strengths and weakness=
internal. opportunities and threats= external.
Maslow's hierarchy of needs theory - correct answer ✔✔ From basic to abstract, as each need is
met people become more motivated: physiological (basic survival), safety (feel secure), social
(belonging, connected to others), esteem (self respect and respect from others), and self-
actualization (need for fulfillment)
strategic planning - correct answer ✔✔ top level managers: establish a vision for the company,
define lond term objectives and priotities.
, tactical planning - correct answer ✔✔ middle managers: applying strategic plan to their specific
areas of responsibility
operational planning - correct answer ✔✔ first-line managers: applying the tactical plans to
daily, weekly, and monthly operations.
Organization models (3 names) - correct answer ✔✔ line organizations, line and staff
organizations, and matrix organizations
Line organization - correct answer ✔✔ each person is directly accountable to the person
immediately above them. Quick decision making and no fuzziness about who is responsible for
what.
line and staff organization - correct answer ✔✔ line managers supervise the functions that
contribute directly to production and marketing. staff managers supervise the functions that
provide advice and assistance to the line departments.
matrix organizations - correct answer ✔✔ brings together specialists from different areas of the
company to work on individual projects on a temporary basis. Encourages teamwork and
communication and flexibility.
trade surplus - correct answer ✔✔ the total value of exports is higher than the total value of
imports
trade deficit - correct answer ✔✔ total value of imports is higher than the total value of exports
balance of trade - correct answer ✔✔ basic measure of the difference between a nations
exports and imports. includes the value of both goods and service and incorporates trade with
all foreign nations. (surplus and deficit)
