MGMT 314 WEEK 4 Quiz 1 | Questions
and Answers | 2026 Updated | 100%
Correct.
1. A firm's SWOT analysis reveals a strong brand but limited distribution. Which
strategy best leverages the brand to address the distribution weakness?
A. Vertical integration into retail
B. Strategic alliance with established retailers
C. Diversification into unrelated products
D. Cost leadership through economies of scale
Answer: B. Strategic alliance with established retailers
Rationale: A strategic alliance allows the firm to use its strong brand to gain access to
established distribution networks, directly addressing the weakness. Vertical integration is
costly and slow, diversification does not address distribution, and cost leadership focuses
on efficiency, not distribution reach.
2. Which organizational structure is most appropriate for a multinational corporation
needing to balance global efficiency with local responsiveness?
A. Functional structure
B. Divisional structure by product
C. Matrix structure
D. Geographic divisional structure
Answer: C. Matrix structure
Rationale: A matrix structure combines functional and divisional (e.g., geographic)
dimensions, enabling dual focus on global efficiency and local responsiveness. Functional
and product divisional structures lack the dual reporting needed, and geographic
divisional structure may sacrifice global efficiency.
Page 1 of 49
,3. According to Herzberg's two-factor theory, which of the following is a motivator
that can increase job satisfaction?
A. Competitive salary
B. Job security
C. Recognition for achievement
D. Safe working conditions
Answer: C. Recognition for achievement
Rationale: Herzberg classified recognition, achievement, and growth as motivators that
lead to satisfaction. Salary, job security, and safe conditions are hygiene factors that
prevent dissatisfaction but do not motivate.
4. A leader who focuses on clear roles, task deadlines, and rewards for performance is
demonstrating which leadership style?
A. Transformational
B. Transactional
C. Charismatic
D. Servant
Answer: B. Transactional
Rationale: Transactional leadership emphasizes exchanges between leader and followers,
including clear expectations, rewards, and punishments. Transformational, charismatic,
and servant leadership focus on inspiration, vision, and follower development.
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,5. During the forming stage of team development, what is the primary focus of team
members?
A. Resolving conflicts
B. Establishing norms and roles
C. Orienting and getting acquainted
D. Performing tasks efficiently
Answer: C. Orienting and getting acquainted
Rationale: In the forming stage, members are uncertain and focus on orientation, getting to
know each other, and understanding the task. Storming involves conflict, norming
establishes norms, and performing focuses on task accomplishment.
6. Which control process step involves comparing actual performance against
standards?
A. Establishing standards
B. Measuring performance
C. Comparing performance
D. Taking corrective action
Answer: C. Comparing performance
Rationale: The control process involves establishing standards, measuring performance,
comparing performance to standards, and taking corrective action. The comparison step
identifies deviations.
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, 7. A company's balanced scorecard shows high customer satisfaction but declining
financial performance. Which perspective likely needs improvement?
A. Customer perspective
B. Internal process perspective
C. Learning and growth perspective
D. Financial perspective
Answer: D. Financial perspective
Rationale: The balanced scorecard includes financial, customer, internal process, and
learning/growth perspectives. Declining financial performance directly indicates the
financial perspective needs attention, despite strong customer satisfaction.
8. Which of the following is a primary advantage of a decentralized organizational
structure?
A. Uniformity of policies
B. Faster decision-making
C. Economies of scale
D. Tighter control from top management
Answer: B. Faster decision-making
Rationale: Decentralization pushes decision-making authority to lower levels, enabling
faster responses to local conditions. Uniformity, economies of scale, and tight top-down
control are advantages of centralization.
Page 4 of 49
and Answers | 2026 Updated | 100%
Correct.
1. A firm's SWOT analysis reveals a strong brand but limited distribution. Which
strategy best leverages the brand to address the distribution weakness?
A. Vertical integration into retail
B. Strategic alliance with established retailers
C. Diversification into unrelated products
D. Cost leadership through economies of scale
Answer: B. Strategic alliance with established retailers
Rationale: A strategic alliance allows the firm to use its strong brand to gain access to
established distribution networks, directly addressing the weakness. Vertical integration is
costly and slow, diversification does not address distribution, and cost leadership focuses
on efficiency, not distribution reach.
2. Which organizational structure is most appropriate for a multinational corporation
needing to balance global efficiency with local responsiveness?
A. Functional structure
B. Divisional structure by product
C. Matrix structure
D. Geographic divisional structure
Answer: C. Matrix structure
Rationale: A matrix structure combines functional and divisional (e.g., geographic)
dimensions, enabling dual focus on global efficiency and local responsiveness. Functional
and product divisional structures lack the dual reporting needed, and geographic
divisional structure may sacrifice global efficiency.
Page 1 of 49
,3. According to Herzberg's two-factor theory, which of the following is a motivator
that can increase job satisfaction?
A. Competitive salary
B. Job security
C. Recognition for achievement
D. Safe working conditions
Answer: C. Recognition for achievement
Rationale: Herzberg classified recognition, achievement, and growth as motivators that
lead to satisfaction. Salary, job security, and safe conditions are hygiene factors that
prevent dissatisfaction but do not motivate.
4. A leader who focuses on clear roles, task deadlines, and rewards for performance is
demonstrating which leadership style?
A. Transformational
B. Transactional
C. Charismatic
D. Servant
Answer: B. Transactional
Rationale: Transactional leadership emphasizes exchanges between leader and followers,
including clear expectations, rewards, and punishments. Transformational, charismatic,
and servant leadership focus on inspiration, vision, and follower development.
Page 2 of 49
,5. During the forming stage of team development, what is the primary focus of team
members?
A. Resolving conflicts
B. Establishing norms and roles
C. Orienting and getting acquainted
D. Performing tasks efficiently
Answer: C. Orienting and getting acquainted
Rationale: In the forming stage, members are uncertain and focus on orientation, getting to
know each other, and understanding the task. Storming involves conflict, norming
establishes norms, and performing focuses on task accomplishment.
6. Which control process step involves comparing actual performance against
standards?
A. Establishing standards
B. Measuring performance
C. Comparing performance
D. Taking corrective action
Answer: C. Comparing performance
Rationale: The control process involves establishing standards, measuring performance,
comparing performance to standards, and taking corrective action. The comparison step
identifies deviations.
Page 3 of 49
, 7. A company's balanced scorecard shows high customer satisfaction but declining
financial performance. Which perspective likely needs improvement?
A. Customer perspective
B. Internal process perspective
C. Learning and growth perspective
D. Financial perspective
Answer: D. Financial perspective
Rationale: The balanced scorecard includes financial, customer, internal process, and
learning/growth perspectives. Declining financial performance directly indicates the
financial perspective needs attention, despite strong customer satisfaction.
8. Which of the following is a primary advantage of a decentralized organizational
structure?
A. Uniformity of policies
B. Faster decision-making
C. Economies of scale
D. Tighter control from top management
Answer: B. Faster decision-making
Rationale: Decentralization pushes decision-making authority to lower levels, enabling
faster responses to local conditions. Uniformity, economies of scale, and tight top-down
control are advantages of centralization.
Page 4 of 49
