BUSN100 Practice Exam 4 –
Economics and Business Decision
Making Exam Practice Questions And
Correct Answers (100%Verified
Answers) Plus Rationale 2026 Q&A|
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Question 1
What is the primary objective of Human Resource
Management (HRM)?
Answer: The primary objective of human resource management is
to achieve organizational goals through activities such as
recruitment, selection, training, development, motivation,
evaluation, compensation, and scheduling of employees .
Rationale: HRM is the process of determining human resource
needs and then recruiting, selecting, developing, motivating,
evaluating, compensating, and scheduling employees to achieve
organizational goals . It is a management function focused on
maximizing the effectiveness of the workforce by recruiting world-
class talent, promoting career development, and determining
workforce strategies to boost organizational effectiveness .
, Question 2
Which of the following outlines the duties of a job, its
working conditions, and the tools, materials, and equipment
used to perform it?
A) Job advertisement
B) Job specification
C) Job description
D) Job analysis
E) Job report
Answer: C) Job description
Rationale: A job description outlines the duties of a job, its
working conditions, and the tools, materials, and equipment used
to perform it. In contrast, a job specification describes the skills,
abilities, and qualifications required for a job . Job analysis is the
study of what is done by employees who hold various job titles .
Question 3
What are the five steps in human resource planning?
Answer: The five steps are:
1. Preparing a human resource inventory of the organization's
employees
2. Preparing a job analysis
,3. Assessing future demand
4. Assessing future supply
5. Establishing a plan for recruiting, hiring, educating, appraising,
compensating, and scheduling employees
Rationale: Human resource planning is considered the starting
point of effective human resource management . It requires
forecasting both the internal and external supply of employees .
Question 4
What is the difference between training and development?
Answer: Training focuses on short-term skills, while development
focuses on long-term abilities .
Rationale: Training activities include employee orientation, on-
and off-the-job training, apprentice programs, online training,
vestibule training, and job simulation. Management development,
on the other hand, involves training and educating employees to
become good managers and then monitoring the progress of
their managerial skills over time. Methods include on-the-job
coaching, understudy positions, job rotation, and off-the-job
courses and training .
Question 5
What are the six steps in the selection process?
, Answer: The steps are:
1. Obtaining complete application forms
2. Conducting initial and follow-up interviews
3. Giving employment tests
4. Conducting background investigations
5. Obtaining results from physical exams
6. Establishing a trial period of employment
Rationale: Selection is the process of gathering information and
deciding who should be hired, under legal guidelines, for the best
interests of the individual and the organization . The interview is
the selection technique most likely to introduce bias .
Question 6
Which of the following constitutes an illegal hiring practice?
A) Asking someone about their availability because the position
requires a 50-hour work week
B) Establishing a diversity committee to help diverse employees
connect with each other
C) Asking a candidate whether or not he attends church,
because it is important that candidates are available to work
on Saturdays and Sundays
D) Keeping track of how many males and females are in the
organization
E) Requiring an applicant to specify gender on an application
Answer: C) Asking a candidate whether or not he attends church
Economics and Business Decision
Making Exam Practice Questions And
Correct Answers (100%Verified
Answers) Plus Rationale 2026 Q&A|
Guaranteed Pass (GRADED A+)
Question 1
What is the primary objective of Human Resource
Management (HRM)?
Answer: The primary objective of human resource management is
to achieve organizational goals through activities such as
recruitment, selection, training, development, motivation,
evaluation, compensation, and scheduling of employees .
Rationale: HRM is the process of determining human resource
needs and then recruiting, selecting, developing, motivating,
evaluating, compensating, and scheduling employees to achieve
organizational goals . It is a management function focused on
maximizing the effectiveness of the workforce by recruiting world-
class talent, promoting career development, and determining
workforce strategies to boost organizational effectiveness .
, Question 2
Which of the following outlines the duties of a job, its
working conditions, and the tools, materials, and equipment
used to perform it?
A) Job advertisement
B) Job specification
C) Job description
D) Job analysis
E) Job report
Answer: C) Job description
Rationale: A job description outlines the duties of a job, its
working conditions, and the tools, materials, and equipment used
to perform it. In contrast, a job specification describes the skills,
abilities, and qualifications required for a job . Job analysis is the
study of what is done by employees who hold various job titles .
Question 3
What are the five steps in human resource planning?
Answer: The five steps are:
1. Preparing a human resource inventory of the organization's
employees
2. Preparing a job analysis
,3. Assessing future demand
4. Assessing future supply
5. Establishing a plan for recruiting, hiring, educating, appraising,
compensating, and scheduling employees
Rationale: Human resource planning is considered the starting
point of effective human resource management . It requires
forecasting both the internal and external supply of employees .
Question 4
What is the difference between training and development?
Answer: Training focuses on short-term skills, while development
focuses on long-term abilities .
Rationale: Training activities include employee orientation, on-
and off-the-job training, apprentice programs, online training,
vestibule training, and job simulation. Management development,
on the other hand, involves training and educating employees to
become good managers and then monitoring the progress of
their managerial skills over time. Methods include on-the-job
coaching, understudy positions, job rotation, and off-the-job
courses and training .
Question 5
What are the six steps in the selection process?
, Answer: The steps are:
1. Obtaining complete application forms
2. Conducting initial and follow-up interviews
3. Giving employment tests
4. Conducting background investigations
5. Obtaining results from physical exams
6. Establishing a trial period of employment
Rationale: Selection is the process of gathering information and
deciding who should be hired, under legal guidelines, for the best
interests of the individual and the organization . The interview is
the selection technique most likely to introduce bias .
Question 6
Which of the following constitutes an illegal hiring practice?
A) Asking someone about their availability because the position
requires a 50-hour work week
B) Establishing a diversity committee to help diverse employees
connect with each other
C) Asking a candidate whether or not he attends church,
because it is important that candidates are available to work
on Saturdays and Sundays
D) Keeping track of how many males and females are in the
organization
E) Requiring an applicant to specify gender on an application
Answer: C) Asking a candidate whether or not he attends church
