BUS452
Business Leadership
Midterms Exam Review (Qns & Ans)
2025
1. What is a key characteristic of transformational leadership?
A. Focuses on maintaining the status quo
B. Inspires and motivates employees to achieve beyond
expectations
C. Relies heavily on authority and positional power
D. Avoids setting long-term goals
ANS: B. Inspires and motivates employees to achieve
beyond expectations
©2025
, Rationale: Transformational leaders inspire employees with a
clear vision and foster an environment of innovation and
collaboration.
2. Which leadership style is most effective for managing a
crisis?
A. Autocratic
B. Laissez-faire
C. Servant
D. Democratic
ANS: A. Autocratic
Rationale: Autocratic leadership is effective in crisis
situations because it allows for quick decision-making and clear
direction.
3. What is the primary focus of servant leadership?
A. Achieving organizational profitability
B. Empowering and serving team members
C. Establishing strict hierarchies
D. Enhancing shareholder value
ANS: B. Empowering and serving team members
©2025
, Rationale: Servant leaders prioritize the growth and well-
being of their employees to create a collaborative, empowered
workforce.
---
Fill-in-the-Blank Questions
4. The _______ theory of leadership suggests that effective
leadership depends on the alignment between the leader’s style
and the demands of the situation.
ANS: Contingency
Rationale: Contingency theory emphasizes the need to adapt
leadership styles based on contextual factors for optimal
effectiveness.
5. Emotional intelligence in leadership is defined by five
components: self-awareness, self-regulation, motivation, _______
, and social skills.
ANS: Empathy
Rationale: Empathy allows leaders to understand and connect
with their team members, fostering trust and collaboration.
---
©2025
, True/False Questions
6. True or False: Transactional leaders are most effective in
environments requiring creativity and innovation.
ANS: False
Rationale: Transactional leadership focuses on structure,
rewards, and punishments, making it less effective in dynamic or
creative environments.
7. True or False: Leaders with high emotional intelligence are
more likely to build trust within their teams.
ANS: True
Rationale: Emotional intelligence enhances a leader’s ability
to understand and manage relationships, building trust and
cohesion.
---
Multiple Response Questions
8. What are key traits associated with effective leadership?
(Select all that apply)
©2025
Business Leadership
Midterms Exam Review (Qns & Ans)
2025
1. What is a key characteristic of transformational leadership?
A. Focuses on maintaining the status quo
B. Inspires and motivates employees to achieve beyond
expectations
C. Relies heavily on authority and positional power
D. Avoids setting long-term goals
ANS: B. Inspires and motivates employees to achieve
beyond expectations
©2025
, Rationale: Transformational leaders inspire employees with a
clear vision and foster an environment of innovation and
collaboration.
2. Which leadership style is most effective for managing a
crisis?
A. Autocratic
B. Laissez-faire
C. Servant
D. Democratic
ANS: A. Autocratic
Rationale: Autocratic leadership is effective in crisis
situations because it allows for quick decision-making and clear
direction.
3. What is the primary focus of servant leadership?
A. Achieving organizational profitability
B. Empowering and serving team members
C. Establishing strict hierarchies
D. Enhancing shareholder value
ANS: B. Empowering and serving team members
©2025
, Rationale: Servant leaders prioritize the growth and well-
being of their employees to create a collaborative, empowered
workforce.
---
Fill-in-the-Blank Questions
4. The _______ theory of leadership suggests that effective
leadership depends on the alignment between the leader’s style
and the demands of the situation.
ANS: Contingency
Rationale: Contingency theory emphasizes the need to adapt
leadership styles based on contextual factors for optimal
effectiveness.
5. Emotional intelligence in leadership is defined by five
components: self-awareness, self-regulation, motivation, _______
, and social skills.
ANS: Empathy
Rationale: Empathy allows leaders to understand and connect
with their team members, fostering trust and collaboration.
---
©2025
, True/False Questions
6. True or False: Transactional leaders are most effective in
environments requiring creativity and innovation.
ANS: False
Rationale: Transactional leadership focuses on structure,
rewards, and punishments, making it less effective in dynamic or
creative environments.
7. True or False: Leaders with high emotional intelligence are
more likely to build trust within their teams.
ANS: True
Rationale: Emotional intelligence enhances a leader’s ability
to understand and manage relationships, building trust and
cohesion.
---
Multiple Response Questions
8. What are key traits associated with effective leadership?
(Select all that apply)
©2025
