GBA FINAL EXAM STUDY REVIEW 2026/2027
Section 1: Management and Organizational Behavior (Questions 1-25)
1. Which management function involves assigning tasks, grouping tasks into departments, and allocating
resources?
A) Planning
B) Organizing
C) Leading
D) Controlling
Answer: B) Organizing
Rationale: Organizing is the management function that follows planning. It involves arranging and
structuring work to accomplish the organization's goals. This includes determining what tasks are to be
done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions
are to be made.
2. A manager who focuses on motivating employees, directing their activities, and resolving conflicts is
primarily engaged in which function?
,A) Planning
B) Organizing
C) Leading
D) Controlling
Answer: C) Leading
Rationale: Leading involves influencing and inspiring employees to work hard and achieve organizational
objectives. It encompasses motivation, communication, conflict resolution, and leadership styles.
3. According to Maslow's hierarchy of needs, which level of needs is the most basic and must be
satisfied first?
A) Esteem needs
B) Social needs
C) Safety needs
D) Physiological needs
Answer: D) Physiological needs
Rationale: Maslow's hierarchy posits that the most fundamental needs are physiological (e.g., food,
water, shelter). These must be met before an individual can focus on higher-level needs like safety,
social belonging, esteem, and self-actualization.
4. Theory X assumes that employees:
A) Enjoy work and seek responsibility.
B) Are creative and self-motivated.
C) Dislike work and must be coerced and controlled.
D) Are primarily motivated by social needs.
,Answer: C) Dislike work and must be coerced and controlled.
Rationale: Theory X is a negative view of human nature, assuming that the average worker has an
inherent dislike of work and will avoid it if possible. Therefore, managers must use coercion, control, and
threats of punishment to get them to work.
5. The process of defining goals, establishing strategies for achieving those goals, and developing plans
to integrate and coordinate activities is known as:
A) Organizing
B) Leading
C) Planning
D) Controlling
Answer: C) Planning
Rationale: Planning is the primary management function that sets the foundation for all other functions.
It provides direction, reduces uncertainty, minimizes waste, and sets the standards for controlling.
6. A company that produces a small number of products and has a simple, stable environment would
likely benefit from which type of organizational structure?
A) Organic structure
B) Matrix structure
C) Functional structure
D) Network structure
Answer: C) Functional structure
Rationale: A functional structure groups employees by specialty (e.g., marketing, finance, HR). This
works well for small companies with a limited product line in a stable environment because it promotes
efficiency and specialization.
, 7. What is the primary disadvantage of a divisional structure?
A) It is too slow to respond to environmental changes.
B) It leads to a duplication of resources and efforts across divisions.
C) It lacks clear accountability for product performance.
D) It is unsuitable for large organizations.
Answer: B) It leads to a duplication of resources and efforts across divisions.
Rationale: In a divisional structure, each division (e.g., product, customer, or geographic) typically has its
own functional departments (marketing, finance, etc.). This can lead to costly duplication of personnel,
facilities, and resources.
8. The "Hawthorne Studies" were instrumental in the development of which management perspective?
A) Scientific management
B) Bureaucratic management
C) Administrative management
D) Human relations movement
Answer: D) Human relations movement
Rationale: The Hawthorne Studies revealed that social factors, such as group norms and attention from
supervisors, had a significant impact on worker productivity, leading to the development of the human
relations movement.
9. Which of the following is an example of a SMART goal?
A) "Increase sales."
B) "Be more innovative."
C) "Increase sales by 15% in the Northwest region by the end of Q4."
D) "Improve customer service."
Section 1: Management and Organizational Behavior (Questions 1-25)
1. Which management function involves assigning tasks, grouping tasks into departments, and allocating
resources?
A) Planning
B) Organizing
C) Leading
D) Controlling
Answer: B) Organizing
Rationale: Organizing is the management function that follows planning. It involves arranging and
structuring work to accomplish the organization's goals. This includes determining what tasks are to be
done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions
are to be made.
2. A manager who focuses on motivating employees, directing their activities, and resolving conflicts is
primarily engaged in which function?
,A) Planning
B) Organizing
C) Leading
D) Controlling
Answer: C) Leading
Rationale: Leading involves influencing and inspiring employees to work hard and achieve organizational
objectives. It encompasses motivation, communication, conflict resolution, and leadership styles.
3. According to Maslow's hierarchy of needs, which level of needs is the most basic and must be
satisfied first?
A) Esteem needs
B) Social needs
C) Safety needs
D) Physiological needs
Answer: D) Physiological needs
Rationale: Maslow's hierarchy posits that the most fundamental needs are physiological (e.g., food,
water, shelter). These must be met before an individual can focus on higher-level needs like safety,
social belonging, esteem, and self-actualization.
4. Theory X assumes that employees:
A) Enjoy work and seek responsibility.
B) Are creative and self-motivated.
C) Dislike work and must be coerced and controlled.
D) Are primarily motivated by social needs.
,Answer: C) Dislike work and must be coerced and controlled.
Rationale: Theory X is a negative view of human nature, assuming that the average worker has an
inherent dislike of work and will avoid it if possible. Therefore, managers must use coercion, control, and
threats of punishment to get them to work.
5. The process of defining goals, establishing strategies for achieving those goals, and developing plans
to integrate and coordinate activities is known as:
A) Organizing
B) Leading
C) Planning
D) Controlling
Answer: C) Planning
Rationale: Planning is the primary management function that sets the foundation for all other functions.
It provides direction, reduces uncertainty, minimizes waste, and sets the standards for controlling.
6. A company that produces a small number of products and has a simple, stable environment would
likely benefit from which type of organizational structure?
A) Organic structure
B) Matrix structure
C) Functional structure
D) Network structure
Answer: C) Functional structure
Rationale: A functional structure groups employees by specialty (e.g., marketing, finance, HR). This
works well for small companies with a limited product line in a stable environment because it promotes
efficiency and specialization.
, 7. What is the primary disadvantage of a divisional structure?
A) It is too slow to respond to environmental changes.
B) It leads to a duplication of resources and efforts across divisions.
C) It lacks clear accountability for product performance.
D) It is unsuitable for large organizations.
Answer: B) It leads to a duplication of resources and efforts across divisions.
Rationale: In a divisional structure, each division (e.g., product, customer, or geographic) typically has its
own functional departments (marketing, finance, etc.). This can lead to costly duplication of personnel,
facilities, and resources.
8. The "Hawthorne Studies" were instrumental in the development of which management perspective?
A) Scientific management
B) Bureaucratic management
C) Administrative management
D) Human relations movement
Answer: D) Human relations movement
Rationale: The Hawthorne Studies revealed that social factors, such as group norms and attention from
supervisors, had a significant impact on worker productivity, leading to the development of the human
relations movement.
9. Which of the following is an example of a SMART goal?
A) "Increase sales."
B) "Be more innovative."
C) "Increase sales by 15% in the Northwest region by the end of Q4."
D) "Improve customer service."
