Business 101 final exam Questions and Answers Already Passed
Functions of management - Answers planning, organizing, leading, controlling
Principle of management 1 - Answers division of work (employees specialize in different areas of labor)
principle of management 2 - Answers authority and responsibility (right of managers to give order)
principle of management 3 - Answers discipline (obedience, good conduct, respectful interactions)
principle of management 4 - Answers unity of command (employee receives orders from a supervisor)
principle of management 5 - Answers unity of direction (groups within organization should be directed
by one manager)
principle of management 6 - Answers subordination of individual interest to general interest
(organization is great than individual)
principle of management 7 - Answers remuneration (all workers paid fair wages)
principle of management 8 - Answers centralization and decentralization (pros and cons)
principle of management 9 - Answers scalar chain (top management- lowest ranks)
gangplank - Answers arrangement allowing two managers at the same level to communicate directly
with each other
principle of management 10 - Answers order
principle of management 11 - Answers equity (employees treated equally)
equality - Answers individuals receive equal support across the board
principle of management 12 - Answers stability of tenure of personnel
principle of management 13 - Answers initiative
principle of management 14 - Answers esprit de corps (shared sense of loyalty)
decision making - Answers reasoning process that involves selecting the best alternative among several
options
rational choice theory - Answers school of though in microeconomics that posits that consumers make
rational utility-maximizing decisions
utility - Answers satisfaction from consuming a good or service
information processing theory - Answers posits that consumers are information processors that follow
an input, output pattern (mental representations)
, homo economicus - Answers hypothetical human that makes perfectly rational decisions
cognitive bias - Answers systematic deviation from optimal decision making
confirmation bias - Answers more receptive towards information that supports our existing beliefs
hindsight bias - Answers past events being more probable than they actually were
self-serving bias - Answers interpret information in a way that enhances our own self-esteem
motivated reasoning - Answers reasoning with the goal of reaching a desired solution, rather than a
correct or optimal one
heuristics - Answers Mental shortcuts or "rules of thumb" that often lead to a solution (but not always).
availability heuristic - Answers substituting the ease with which an event comes to mind for the
probability of that event occurring in actuality
anchoring heuristic - Answers effect of reference points on decision making (adjust instead of ignoring it)
(relying on the first piece of information provided which is considered the anchor)
affect heuristic - Answers appealing to ones emotional state as a bias for decision making
SMART - Answers Specific, Measurable, Attainable, Realistic, Timely
behaviorism (John B Watson) - Answers the science of behavior that focuses on observable behavior
only
reinforcement theory - Answers theory that positive and negative reinforcers motivate a person to
behave in certain ways
positive/negative reinforcement - Answers positive reinforcement- give good when desired behavior
performed
negative reinforcement- remove bad when desired behavior performed
positive/negative punishment - Answers Positive punishment: is the giving of an aversive event
contingent on a behavior with the goal of decreasing the likelihood of behavior in the future.
Negative punishment: is taking away an event with the goal of decreasing the likelihood of behavior in
the future
Theory X - Answers assumes that workers are basically lazy, error-prone, and extrinsically motivated by
money and, thus, should be directed from above.
Functions of management - Answers planning, organizing, leading, controlling
Principle of management 1 - Answers division of work (employees specialize in different areas of labor)
principle of management 2 - Answers authority and responsibility (right of managers to give order)
principle of management 3 - Answers discipline (obedience, good conduct, respectful interactions)
principle of management 4 - Answers unity of command (employee receives orders from a supervisor)
principle of management 5 - Answers unity of direction (groups within organization should be directed
by one manager)
principle of management 6 - Answers subordination of individual interest to general interest
(organization is great than individual)
principle of management 7 - Answers remuneration (all workers paid fair wages)
principle of management 8 - Answers centralization and decentralization (pros and cons)
principle of management 9 - Answers scalar chain (top management- lowest ranks)
gangplank - Answers arrangement allowing two managers at the same level to communicate directly
with each other
principle of management 10 - Answers order
principle of management 11 - Answers equity (employees treated equally)
equality - Answers individuals receive equal support across the board
principle of management 12 - Answers stability of tenure of personnel
principle of management 13 - Answers initiative
principle of management 14 - Answers esprit de corps (shared sense of loyalty)
decision making - Answers reasoning process that involves selecting the best alternative among several
options
rational choice theory - Answers school of though in microeconomics that posits that consumers make
rational utility-maximizing decisions
utility - Answers satisfaction from consuming a good or service
information processing theory - Answers posits that consumers are information processors that follow
an input, output pattern (mental representations)
, homo economicus - Answers hypothetical human that makes perfectly rational decisions
cognitive bias - Answers systematic deviation from optimal decision making
confirmation bias - Answers more receptive towards information that supports our existing beliefs
hindsight bias - Answers past events being more probable than they actually were
self-serving bias - Answers interpret information in a way that enhances our own self-esteem
motivated reasoning - Answers reasoning with the goal of reaching a desired solution, rather than a
correct or optimal one
heuristics - Answers Mental shortcuts or "rules of thumb" that often lead to a solution (but not always).
availability heuristic - Answers substituting the ease with which an event comes to mind for the
probability of that event occurring in actuality
anchoring heuristic - Answers effect of reference points on decision making (adjust instead of ignoring it)
(relying on the first piece of information provided which is considered the anchor)
affect heuristic - Answers appealing to ones emotional state as a bias for decision making
SMART - Answers Specific, Measurable, Attainable, Realistic, Timely
behaviorism (John B Watson) - Answers the science of behavior that focuses on observable behavior
only
reinforcement theory - Answers theory that positive and negative reinforcers motivate a person to
behave in certain ways
positive/negative reinforcement - Answers positive reinforcement- give good when desired behavior
performed
negative reinforcement- remove bad when desired behavior performed
positive/negative punishment - Answers Positive punishment: is the giving of an aversive event
contingent on a behavior with the goal of decreasing the likelihood of behavior in the future.
Negative punishment: is taking away an event with the goal of decreasing the likelihood of behavior in
the future
Theory X - Answers assumes that workers are basically lazy, error-prone, and extrinsically motivated by
money and, thus, should be directed from above.
