BASICS COMPREHENSIVE STUDY GUIDE
2026 FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ Sarbanes-Oxley Act (SOX).
Answer: Law aimed at improving corporate transparency by requiring clear
reporting practices
◍ Self-regulation.
Answer: Controlling your thoughts and impulses in order to manage your
internal state
◍ Casual loops often include balancing loops, which....
Answer: Occur when a change in one variable causes a change in the
opposite direction, positive or negative, in another variable.
◍ Attrition.
Answer: The unpredictable and uncontrollable but normal reduction of work
force due to resignations, retirement, sickness, or death
◍ Organic.
Answer: Organizational structure characterized by (1) flatness:
communications and interactions are horizontal, (2) low specialization:
knowledge resides wherever it is most useful, and (3) decentralization: great
deal of formal and informal participation in decision-making
◍ Relationship management.
Answer: Part of a strategy to engage existing customers in order to retain
them and understand their evolving needs or demands. It is a business
paradigm where a business views the association with its patrons as an
, ongoing relationship rather than a mere transaction
◍ Social skills.
Answer: A broad range of behaviors related to managing relationships with
others
◍ Attraction-selection-attrition (A-S-A).
Answer: A theory holding that (1) individuals are attracted to organizations
whose members are similar to themselves in terms of personality, values,
interests, and other attributes; (2) organizations are more likely to select
those who possess knowledge, skills, and abilities similar to the ones their
existing members possess; and (3) over time, those who do not fit in well are
more likely to leave
◍ What is a casual connection?.
Answer: Refers to the relationship where one element or event in a system
directly influences another. It explains how changes in one part of the
system can cause changes in another, helping identify cause-and-effect
relationships within a system. These connections are often visualized using
tools like casual loop diagrams.
◍ What does it mean if reinforcing loops are self-reinforcing?.
Answer: They continue to add change in one direction over time.
◍ Formal leaders.
Answer: A person who is officially designated as the leader of a group
◍ Empathy.
Answer: Being attuned and sensitive to the emotional states of others
◍ Code of ethics.
Answer: Guide that publicly sets out an organization's key values and ethical
obligations
◍ intelligence quotient.
Answer: A number representing a person's reasoning ability as compared to
the statistical norm or average for their age
, ◍ Autocratic style.
Answer: Leadership style that keeps close control over subordinates and
does not seek much input from others
◍ Mechanistic.
Answer: Hierarchical, bureaucratic, organizational structure characterized
by (1) centralization of authority, (2) formalization of procedures and
practices, and (3) specialization of functions
◍ Which aspect is a part of structure in this scenario?A Midwest company
selling plants to home gardeners needs to get its annual printed catalog out
in Feb. In Nov, the editor meets with the heads of 3 departments. Editor tells
the company that within a month they need a list of products to be included
in the catalog. A month later, no lists have been submitted. On Jan 3, the
editor finds out only 1 department has turned in the required info..
Answer: The fact the company prints an annual catalog.The pattern of
printing an annual catalog is one of the primary features of this system's
structure. This is the only option that includes a casual connection. That is,
the printing of this catalog drives many other activities at this company.
◍ Illegal-ethical.
Answer: Dilemma in which the ethical choice would be in violation of
established laws
◍ Employee-member-centered behaviors.
Answer: Behaviors that focus on supporting employees
◍ A novice politician runs for office and narrowly wins election. Weak
support from voters means low politician influence/capital. She begins to
give well-received speeches, leading to appearances in the media, and her
political capital rises. She wins her next election decisively. This casual loop
diagram illustrates her situation..
Answer: A politician's election causes a rise in political capital, which may
affect attention from the media and voters.
◍ Communication.