1|Page
BRM MIDTERM EXAM ACTUAL 2026/2027 QUESTIONS AND 100% CORRECT
ANSWERS ALREADY GRADED A+
Q1. The main purpose of business research is to:
A. Increase company profits directly
B. Provide reliable information for decision-making
C. Replace managers in decision-making
D. Prove theories without application
Correct Answer: B. Provide reliable information for decision-making
Rationale: The core purpose of business research is to supply managers with accurate and objective
information that reduces uncertainty in decision-making. While research can indirectly contribute to
profits, it does not guarantee profit or act as a substitute for managerial judgment. Its role is supportive
rather than directive.
Q2. Which of the following is NOT a characteristic of scientific research?
A. Objectivity
B. Systematic approach
C. Subjectivity
D. Empirical evidence
Correct Answer: C. Subjectivity
Rationale: Scientific research requires methods that are systematic, objective, and based on verifiable
evidence. Subjectivity, on the other hand, introduces personal bias, emotions, and preferences, which
weaken the credibility of findings. For research to be reliable, it must be impartial and replicable.
Q3. A tentative explanation for a phenomenon is called a:
A. Law
B. Hypothesis
C. Theory
D. Fact
Correct Answer: B. Hypothesis
Rationale: A hypothesis is a predictive statement that proposes a possible explanation which can be
tested through research. A theory is broader and established after repeated testing and validation, while
a law expresses universal truth. Facts are observations accepted as true, whereas a hypothesis is
provisional until confirmed.
Q4. Which type of research seeks to solve a practical problem?
A. Basic research
B. Applied research
,2|Page
C. Conceptual research
D. Theoretical research
Correct Answer: B. Applied research
Rationale: Applied research focuses on real-world challenges such as improving sales, enhancing
customer satisfaction, or reducing employee turnover. It uses scientific methods but with the intention
of finding solutions to immediate issues. Basic research, by contrast, is concerned with advancing
theoretical knowledge without necessarily targeting direct applications.
Q5. The process of defining a research problem begins with:
A. Reviewing literature
B. Identifying and understanding the management dilemma
C. Formulating hypotheses
D. Designing the methodology
Correct Answer: B. Identifying and understanding the management dilemma
Rationale: Every research study starts by pinpointing the organizational challenge or dilemma that
requires investigation. Without a clear problem statement, further steps like literature review or
hypothesis development may be misguided. Identifying the management dilemma ensures that the
research stays relevant to organizational needs and leads to actionable insights.
Q6. A variable that influences both the independent and dependent variable is called a:
A. Extraneous variable
B. Confounding variable
C. Controlled variable
D. Moderator variable
Correct Answer: B. Confounding variable
Rationale: A confounding variable creates false or misleading associations between the independent
and dependent variables by influencing both. If not controlled, it can distort the results of research. For
example, when studying exercise and health, diet might be a confounding factor that explains changes
in health.
Q7. A literature review mainly serves to:
A. Collect raw data
B. Identify gaps in existing knowledge
C. Replace data analysis
D. Generate financial reports
Correct Answer: B. Identify gaps in existing knowledge
Rationale: The literature review helps researchers understand what has already been studied, highlight
gaps, and build on existing knowledge. It prevents duplication and provides a foundation for new
hypotheses. It is not for raw data collection or generating financial information.
Q8. Sampling that gives each population member an equal chance of selection is:
A. Stratified sampling
B. Quota sampling
,3|Page
C. Simple random sampling
D. Snowball sampling
Correct Answer: C. Simple random sampling
Rationale: In simple random sampling, every member of the population has an equal probability of
being selected, which reduces bias and ensures fairness. Stratified sampling divides the population into
subgroups, quota sampling ensures proportions, while snowball relies on referrals and is not random.
Q9. A Likert scale is an example of which measurement scale?
A. Nominal
B. Ordinal
C. Ratio
D. Interval
Correct Answer: B. Ordinal
Rationale: A Likert scale orders responses from strongly agree to strongly disagree. The data shows
relative ranking but the distances between options cannot always be assumed equal. This makes it an
ordinal scale, not interval or ratio, and certainly not nominal because it shows more than just categories.
Q10. Which of the following is a primary data collection method?
A. Census reports
B. Surveys
C. Published journals
D. Government statistics
Correct Answer: B. Surveys
Rationale: Primary data is collected first-hand by the researcher to answer the current study’s
questions. Surveys, interviews, and experiments are classic examples. Census reports and government
statistics are secondary because they were collected earlier for different purposes.
Q11. Secondary data is best defined as:
A. Data collected for the first time by the researcher
B. Data previously collected for another purpose
C. Data collected through experiments
D. Data collected by interviews only
Correct Answer: B. Data previously collected for another purpose
Rationale: Secondary data refers to information that already exists, such as government reports, books,
journals, or company records. The researcher reuses it to answer new research questions. It is less
costly but may be less specific or outdated.
Q12. Reliability of a research instrument refers to:
A. The accuracy of measurement
B. Consistency of results over time
C. Ability to test hypotheses
D. Extent of data collection
, 4|Page
Correct Answer: B. Consistency of results over time
Rationale: Reliability indicates the stability and consistency of measurement tools. A reliable
instrument produces similar results when repeated under the same conditions. It is different from
validity, which focuses on accuracy and correctness of measurement.
Q13. Validity in research ensures that:
A. The instrument measures what it is intended to measure
B. The data is always free from error
C. The research will guarantee desired outcomes
D. The results are consistent across repetitions
Correct Answer: A. The instrument measures what it is intended to measure
Rationale: Validity is about accuracy. A valid instrument captures the actual concept intended, not
something else. Reliability deals with consistency, while validity deals with correctness. A measure can
be reliable but not valid, which is why both are important.
Q14. Which sampling method is most vulnerable to bias?
A. Random sampling
B. Stratified sampling
C. Convenience sampling
D. Cluster sampling
Correct Answer: C. Convenience sampling
Rationale: Convenience sampling selects participants based on accessibility or availability rather than
randomization. This makes results prone to bias because not all population groups have equal chances
of being included, weakening generalizability of findings.
Q15. The dependent variable in research is:
A. The factor manipulated by the researcher
B. The outcome being measured
C. The variable kept constant
D. The background condition of study
Correct Answer: B. The outcome being measured
Rationale: The dependent variable is the result or outcome that changes as the independent variable is
manipulated. For example, in studying the effect of training on performance, performance is the
dependent variable while training is the independent one.
Q16. In hypothesis testing, the null hypothesis (H₀) states:
A. A relationship exists
B. A difference exists
C. No relationship or difference exists
D. The theory is correct
Correct Answer: C. No relationship or difference exists
Rationale: The null hypothesis assumes no significant effect or relationship between variables. It
provides a benchmark against which the alternative hypothesis is tested. Rejecting or failing to reject
H₀ is central to statistical inference.
BRM MIDTERM EXAM ACTUAL 2026/2027 QUESTIONS AND 100% CORRECT
ANSWERS ALREADY GRADED A+
Q1. The main purpose of business research is to:
A. Increase company profits directly
B. Provide reliable information for decision-making
C. Replace managers in decision-making
D. Prove theories without application
Correct Answer: B. Provide reliable information for decision-making
Rationale: The core purpose of business research is to supply managers with accurate and objective
information that reduces uncertainty in decision-making. While research can indirectly contribute to
profits, it does not guarantee profit or act as a substitute for managerial judgment. Its role is supportive
rather than directive.
Q2. Which of the following is NOT a characteristic of scientific research?
A. Objectivity
B. Systematic approach
C. Subjectivity
D. Empirical evidence
Correct Answer: C. Subjectivity
Rationale: Scientific research requires methods that are systematic, objective, and based on verifiable
evidence. Subjectivity, on the other hand, introduces personal bias, emotions, and preferences, which
weaken the credibility of findings. For research to be reliable, it must be impartial and replicable.
Q3. A tentative explanation for a phenomenon is called a:
A. Law
B. Hypothesis
C. Theory
D. Fact
Correct Answer: B. Hypothesis
Rationale: A hypothesis is a predictive statement that proposes a possible explanation which can be
tested through research. A theory is broader and established after repeated testing and validation, while
a law expresses universal truth. Facts are observations accepted as true, whereas a hypothesis is
provisional until confirmed.
Q4. Which type of research seeks to solve a practical problem?
A. Basic research
B. Applied research
,2|Page
C. Conceptual research
D. Theoretical research
Correct Answer: B. Applied research
Rationale: Applied research focuses on real-world challenges such as improving sales, enhancing
customer satisfaction, or reducing employee turnover. It uses scientific methods but with the intention
of finding solutions to immediate issues. Basic research, by contrast, is concerned with advancing
theoretical knowledge without necessarily targeting direct applications.
Q5. The process of defining a research problem begins with:
A. Reviewing literature
B. Identifying and understanding the management dilemma
C. Formulating hypotheses
D. Designing the methodology
Correct Answer: B. Identifying and understanding the management dilemma
Rationale: Every research study starts by pinpointing the organizational challenge or dilemma that
requires investigation. Without a clear problem statement, further steps like literature review or
hypothesis development may be misguided. Identifying the management dilemma ensures that the
research stays relevant to organizational needs and leads to actionable insights.
Q6. A variable that influences both the independent and dependent variable is called a:
A. Extraneous variable
B. Confounding variable
C. Controlled variable
D. Moderator variable
Correct Answer: B. Confounding variable
Rationale: A confounding variable creates false or misleading associations between the independent
and dependent variables by influencing both. If not controlled, it can distort the results of research. For
example, when studying exercise and health, diet might be a confounding factor that explains changes
in health.
Q7. A literature review mainly serves to:
A. Collect raw data
B. Identify gaps in existing knowledge
C. Replace data analysis
D. Generate financial reports
Correct Answer: B. Identify gaps in existing knowledge
Rationale: The literature review helps researchers understand what has already been studied, highlight
gaps, and build on existing knowledge. It prevents duplication and provides a foundation for new
hypotheses. It is not for raw data collection or generating financial information.
Q8. Sampling that gives each population member an equal chance of selection is:
A. Stratified sampling
B. Quota sampling
,3|Page
C. Simple random sampling
D. Snowball sampling
Correct Answer: C. Simple random sampling
Rationale: In simple random sampling, every member of the population has an equal probability of
being selected, which reduces bias and ensures fairness. Stratified sampling divides the population into
subgroups, quota sampling ensures proportions, while snowball relies on referrals and is not random.
Q9. A Likert scale is an example of which measurement scale?
A. Nominal
B. Ordinal
C. Ratio
D. Interval
Correct Answer: B. Ordinal
Rationale: A Likert scale orders responses from strongly agree to strongly disagree. The data shows
relative ranking but the distances between options cannot always be assumed equal. This makes it an
ordinal scale, not interval or ratio, and certainly not nominal because it shows more than just categories.
Q10. Which of the following is a primary data collection method?
A. Census reports
B. Surveys
C. Published journals
D. Government statistics
Correct Answer: B. Surveys
Rationale: Primary data is collected first-hand by the researcher to answer the current study’s
questions. Surveys, interviews, and experiments are classic examples. Census reports and government
statistics are secondary because they were collected earlier for different purposes.
Q11. Secondary data is best defined as:
A. Data collected for the first time by the researcher
B. Data previously collected for another purpose
C. Data collected through experiments
D. Data collected by interviews only
Correct Answer: B. Data previously collected for another purpose
Rationale: Secondary data refers to information that already exists, such as government reports, books,
journals, or company records. The researcher reuses it to answer new research questions. It is less
costly but may be less specific or outdated.
Q12. Reliability of a research instrument refers to:
A. The accuracy of measurement
B. Consistency of results over time
C. Ability to test hypotheses
D. Extent of data collection
, 4|Page
Correct Answer: B. Consistency of results over time
Rationale: Reliability indicates the stability and consistency of measurement tools. A reliable
instrument produces similar results when repeated under the same conditions. It is different from
validity, which focuses on accuracy and correctness of measurement.
Q13. Validity in research ensures that:
A. The instrument measures what it is intended to measure
B. The data is always free from error
C. The research will guarantee desired outcomes
D. The results are consistent across repetitions
Correct Answer: A. The instrument measures what it is intended to measure
Rationale: Validity is about accuracy. A valid instrument captures the actual concept intended, not
something else. Reliability deals with consistency, while validity deals with correctness. A measure can
be reliable but not valid, which is why both are important.
Q14. Which sampling method is most vulnerable to bias?
A. Random sampling
B. Stratified sampling
C. Convenience sampling
D. Cluster sampling
Correct Answer: C. Convenience sampling
Rationale: Convenience sampling selects participants based on accessibility or availability rather than
randomization. This makes results prone to bias because not all population groups have equal chances
of being included, weakening generalizability of findings.
Q15. The dependent variable in research is:
A. The factor manipulated by the researcher
B. The outcome being measured
C. The variable kept constant
D. The background condition of study
Correct Answer: B. The outcome being measured
Rationale: The dependent variable is the result or outcome that changes as the independent variable is
manipulated. For example, in studying the effect of training on performance, performance is the
dependent variable while training is the independent one.
Q16. In hypothesis testing, the null hypothesis (H₀) states:
A. A relationship exists
B. A difference exists
C. No relationship or difference exists
D. The theory is correct
Correct Answer: C. No relationship or difference exists
Rationale: The null hypothesis assumes no significant effect or relationship between variables. It
provides a benchmark against which the alternative hypothesis is tested. Rejecting or failing to reject
H₀ is central to statistical inference.
