Practice EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026 Q&A |INSTANT
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1. Which of the following is a primary function of management?
A. Marketing
B. Planning
C. Accounting
D. Selling
Correct Answer: B. Planning – Planning involves setting objectives and
determining the best course of action to achieve them, which is a core
management function.
2. What is the primary focus of strategic management?
A. Day-to-day operations
B. Long-term goals and competitive advantage
C. Employee satisfaction
D. Customer service
Correct Answer: B. Long-term goals and competitive advantage –
Strategic management focuses on formulating and implementing plans
to achieve long-term organizational objectives.
,3. Which management theory emphasizes efficiency and productivity
through standardization and specialization?
A. Human Relations Theory
B. Scientific Management
C. Systems Theory
D. Contingency Theory
Correct Answer: B. Scientific Management – Developed by Frederick
Taylor, it focuses on improving efficiency through task analysis and
specialization.
4. What is the main purpose of organizational culture?
A. To define job roles
B. To influence employee behavior and company norms
C. To increase profits
D. To monitor performance
Correct Answer: B. To influence employee behavior and company norms
– Organizational culture shapes values, beliefs, and behavior patterns
within a company.
5. Which leadership style is characterized by high concern for both
people and production?
A. Autocratic
B. Democratic
C. Laissez-faire
D. Situational
Correct Answer: B. Democratic – A democratic leader balances focus on
employee well-being and organizational performance.
,6. What is the main difference between leadership and management?
A. Leadership focuses on processes; management focuses on people
B. Leadership focuses on vision and influence; management focuses on
planning and control
C. Leadership is task-oriented; management is people-oriented
D. Leadership requires formal authority; management does not
Correct Answer: B. Leadership focuses on vision and influence;
management focuses on planning and control – Leaders inspire and
guide, while managers organize and monitor.
7. Which of the following best defines delegation?
A. Assigning tasks without responsibility
B. Assigning authority and responsibility to others
C. Supervising employees directly
D. Micromanaging tasks
Correct Answer: B. Assigning authority and responsibility to others –
Delegation involves entrusting tasks and decision-making power to
subordinates.
8. Maslow’s Hierarchy of Needs places which need at the top of the
pyramid?
A. Safety
B. Esteem
C. Self-actualization
D. Physiological
, Correct Answer: C. Self-actualization – This represents personal growth
and fulfillment, the highest level of Maslow’s hierarchy.
9. Which decision-making model assumes managers have complete
information and can make rational choices?
A. Bounded Rationality Model
B. Classical Decision-Making Model
C. Administrative Model
D. Incremental Model
Correct Answer: B. Classical Decision-Making Model – It assumes
decision-makers have all necessary information and make fully rational
choices.
10. What is the key advantage of a decentralized organizational
structure?
A. Faster decision-making at the top
B. Increased employee empowerment and responsiveness
C. Reduced communication needs
D. Greater uniformity across units
Correct Answer: B. Increased employee empowerment and
responsiveness – Decentralization allows lower-level managers to make
decisions, improving flexibility and motivation.
11. Which of the following is an example of a financial control used in
management?
A. Employee satisfaction surveys
B. Budget variance analysis