MGMT 2150 Final Review Questions with Correct Answers Latest Update 2025-2026
Trade surplus - Answers more exports than imports
Trade defecit - Answers more imports than exports
Balance of payments - Answers Flow of money going in and out of a country
international licence agreement - Answers allows foreign companies to sell goods in other
countries in exchange for royalty payments
International franchise agreement - Answers Grants a foreign company to use a companies
brand and sell its products
Outsourcing - Answers a company doing a portion of its operations on foreign soil
Strategic alliance - Answers agreement between 2 companies to pool resources to benefit both
parties
Joint venture - Answers agreement where a company funds another company to compete a
portion of its operations
Foreign direct investment - Answers formal establishments like stores on foreign soil
foreign subsidary - Answers an independent company owned by a foreign firm parent
Management value chain increasing value - Answers recruiting, operations, marketing, customer
service
Management effect - Answers Making a group of people more effective and efficent with the
presence of management
efficiency - Answers resources, usages, and wastes
effectiveness - Answers how fully goal is completed
Functions of management - Answers planning, organizing, controling and directing
Strategic plan - Answers long term overall course of action
tactical plan - Answers short term
operational plan - Answers specific steps to implement strategic plan
Contingency planning - Answers identifies areas that are weak to change and develops
alternative courses to maintain strength
Crisis planning - Answers plans in case a company is in crisis
, Planning - Answers Managers set goals and implement plans to achieve them
organizing - Answers allocates resources, people, money and equipment to achieve goals
Job specialization - Answers organizing activities into clusters that can be handled by an
individual or group
Departmentalization - Answers grouping of specialized jobs into units
product division - Answers division of products into smaller departments
customer division - Answers division of customers into different departments
processes division - Answers division of processes into different departments
geographical division of products - Answers division of products sold in stores based on
geographical location
Span of control - Answers number of layers between highest to lowest position
unity of command - Answers no employee should report to more than one boss
Directing - Answers providing motivation and focus to employees motivating them to achieve
organizational goals
leadership styles - Answers Autocratic, democratic, transformational, transactional, laissez faire
autocratic leadership - Answers decisions made with little external influences
transformational leadership - Answers mentor and develop subordinates
transactional leadership - Answers exercise authority based on rank
Democratic leadership - Answers decisions are made with external input
laissez faire - Answers provide little guidance
Controlling (management) - Answers compares actual to planned performance taking
nessesary actions
Human resource management - Answers all actions a company takes to develop and maintain
quality employees
if demand>supply - Answers hire more workers, extra work hours, outsource, introduce labour
saving initiatives
Demand<supply - Answers layoff workers, encourage early retirement, do not replace those who
leave
Trade surplus - Answers more exports than imports
Trade defecit - Answers more imports than exports
Balance of payments - Answers Flow of money going in and out of a country
international licence agreement - Answers allows foreign companies to sell goods in other
countries in exchange for royalty payments
International franchise agreement - Answers Grants a foreign company to use a companies
brand and sell its products
Outsourcing - Answers a company doing a portion of its operations on foreign soil
Strategic alliance - Answers agreement between 2 companies to pool resources to benefit both
parties
Joint venture - Answers agreement where a company funds another company to compete a
portion of its operations
Foreign direct investment - Answers formal establishments like stores on foreign soil
foreign subsidary - Answers an independent company owned by a foreign firm parent
Management value chain increasing value - Answers recruiting, operations, marketing, customer
service
Management effect - Answers Making a group of people more effective and efficent with the
presence of management
efficiency - Answers resources, usages, and wastes
effectiveness - Answers how fully goal is completed
Functions of management - Answers planning, organizing, controling and directing
Strategic plan - Answers long term overall course of action
tactical plan - Answers short term
operational plan - Answers specific steps to implement strategic plan
Contingency planning - Answers identifies areas that are weak to change and develops
alternative courses to maintain strength
Crisis planning - Answers plans in case a company is in crisis
, Planning - Answers Managers set goals and implement plans to achieve them
organizing - Answers allocates resources, people, money and equipment to achieve goals
Job specialization - Answers organizing activities into clusters that can be handled by an
individual or group
Departmentalization - Answers grouping of specialized jobs into units
product division - Answers division of products into smaller departments
customer division - Answers division of customers into different departments
processes division - Answers division of processes into different departments
geographical division of products - Answers division of products sold in stores based on
geographical location
Span of control - Answers number of layers between highest to lowest position
unity of command - Answers no employee should report to more than one boss
Directing - Answers providing motivation and focus to employees motivating them to achieve
organizational goals
leadership styles - Answers Autocratic, democratic, transformational, transactional, laissez faire
autocratic leadership - Answers decisions made with little external influences
transformational leadership - Answers mentor and develop subordinates
transactional leadership - Answers exercise authority based on rank
Democratic leadership - Answers decisions are made with external input
laissez faire - Answers provide little guidance
Controlling (management) - Answers compares actual to planned performance taking
nessesary actions
Human resource management - Answers all actions a company takes to develop and maintain
quality employees
if demand>supply - Answers hire more workers, extra work hours, outsource, introduce labour
saving initiatives
Demand<supply - Answers layoff workers, encourage early retirement, do not replace those who
leave
