Principles of Business Management Final Exam Review Questions With Correct Answers

True - Answer Making the right decisions and successfully implementing them is known as effective management. True or False True - Answer Managers can be classified by both the level of the organization at which they work and the area in which they specialize. True or False True - Answer First-line managers typically spend a large portain of their time supervising the work of subordinates. True or False False - Answer Managers should lead by example. Therefore, they need all the technical skills to do the jobs of their subordinates. True or False True - Answer The concept of synergy suggests that two people can achieve more working together than they can achieve working individually. True or False False - Answer A company operating solely in the USA will not be impacted by globalization. True or False True - Answer The external environment of an organization consists of the organization's general environment and task environment True or False False - Answer Managers can disregard the general environment because it is vague, imprecise and long-term True or False True - Answer Ethical actions conform to generally accepted social norms. True or False False - Answer Unpleasant outcomes will not occur as long as an individual makes ethical choices. True or False True - Answer Toyota Motors owns factories in the United States, which manufacture Toyota-brand cars for sale to U.S. customers. Toyota is making a direct investment. True or False False - Answer The culture of an organization is easy to measure objectively. True or False True - Answer Strategic planning is more closely associated with top management than with middle management. True or False True - Answer An effective strategy is one in which an organization is properly aligned with its environment and therefore is likely to achieve its strategic goals. True or False True - Answer Effective stategies address distinctive competence, scope, and resource deployment. True or False True - Answer Understanding the product life cycle is important to managers because strategies need to evolve over time to keep pace with changes the product experiences over its life cycle True or False True - Answer Decision making is perhaps the most basic and fundamental of all managerial activities. True or False True - Answer The least common decision making condition is the state of certainty. True or False True - Answer Stock markets react more positively to certain bad news, like fines, than to uncertain times of not knowing what will happen. True or False True - Answer In general, the more important the decision, the more attention a manager should pay to developing alternative solutions. True or False True - Answer American, Robert Dudley, became CEO of BP during the huge task of cleaning up the oil spill and rebuilding trust after safety concerns became obvious. Regarding his career, Dudley has high risk propensity. True or False False - Answer People who work in ethical organizations do not face ethical decisions. True or False False - Answer To be an entrepreneur you have to start the enterprise from scratch. True or False True - Answer Small business outnumber large businesses in the United States by a huge amount. True or False True - Answer Small organizations usually can compete effectively with large organizations in industries in which economies of scale are not significant. True or False True - Answer Market research is a key step in building a business plan. True or False True - Answer A franchise usually involves less uncertainty and less risk than starting a business from scratch. True or False B - Answer Achieving organizational goals efficiently and effectively A) is necessary to make logical decisions B) is the primary purpose of the management process C) Ensures that all employees will work together effectively D) Rarely occurs in private sector organizations E) is not necessary for successful management but is desirable E - Answer Which of the following is an example of an organizational goal? A) Profit B) Innovation C) Security D) Social Responsibility E) All of these E - Answer Movien worked 10 hours and produced 50 units of a product. Allen worked 15 hours and produced 50 units of the same product. Compared to Allen, Movien was: A) Equally efficient but not as effective B) Equally effective and efficient C) Equally effective but not as efficient D) Neither effective nor efficient E) More efficent and of unknown effectiveness