Mr. Brito
BOH4M – Exam Review
MULTIPLE CHOICE
1. What are the four functions of management?
A) planning, organizing, controlling, evaluating
B) organizing, controlling, leading, evaluation
C) planning, implementing, leading, controlling
D) planning, organizing, leading, controlling
2. Why is the purpose of planning as a management function?
A) it guarantees the increase of an organizations’ profits by allowing managers
to reach directly to the customers
B) it provides direction and purpose and helps outlines what needs to be done
and how to get things done
C) it is the first function of management and the last function of management
D) all of the above
3. What is a plan?
A) A statement of action steps to be taken in order to accomplish objectives
B) A general overview of ideas that the organization may want to pursue in the
future
C) A specific set of goals accomplished by an organization
D) A statement of the organization’s values, beliefs, and ethical standards
4. ___________________ are plans that can be used over and over again.
A) Single use plans
B) Operational plans
C) Policies and rules
D) Budgets
5. What is a long-range plan?
A) plans that will take many years to complete
B) plans that look three or more years into the future
C) plans that cannot be used until many years later
D) none of the above
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BOH4M – Exam Review
6. A “no-smoking” rule, or sexual harassment policy are examples of _____________
plans used by organizations.
A) Long term plans
B) Operational plans
C) Standing plans
D) Staff plans
7. When a manager is asked to create a new budget outline based on upcoming
projects rather than past projects, this is an example of ________________
budgeting.
A) zero-based
B) fixed
C) variable
D) high interest
8. The benefits of planning include:
A) improved time management
B) guaranteed profit
C) higher labour costs
D) accurate qualitative forecasts
9. One of the benefits of participatory planning is ___________________.
A) reduced time for planning for all levels of management
B) less need for benchmarking
C) greater attention to future scenarios
D) more commitment to implementation of the plans
10. ___________________ is a type of planning tool where expert opinion or
mathematical models can be used to make predictions and make plans for the
future.
A) Policy making
B) Forecasting
C) Strategic implementation
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D) Benchmarking
11. The ability of an organization to consistently outperform its competitors and
continue to successfully operate long-term is called ________.
A) total quality management
B) operational and information technology advantage
C) strategic management process
D) sustainable competitive advantage
12. A department’s budget that depends on the types of activities it will be doing at
different times it is a type of ________________ budget.
A) fixed
B) variable
C) zero-based
D) high interest
13. When businesses compete with each other to serve the same customers,
customers generally benefit from lower prices because these businesses are
operating in a ________________________ environments.
A) monopoly
B) informal structured
C) functionally competitive
D) hypercompetitive
14. An organization that is downsizing to reduce costs is implementing a strategy of
______________ strategy.
A) incremental
B) growth
C) retrenchment
D) diversification
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BOH4M – Exam Review
15. What is a budget?
A) it is an amount used by organizations in total
B) it is a single-use plan that provides resources for activities or projects of an
organization
C) it is the money owed by organizations to financial institutions in order for the
organization to accomplish goals
D) all of the above
16. What role does a top manager play in the planning process?
A) responsible for arranging workers and assigning specific tasks to all
B) creating a detailed strategy for each department or division in the
organization
C) creating the basic, overall plans for the organization as a whole
D) all of the above
17. When companies measure their performance by comparing themselves to other
companies they are using a planning technique called:
A) forecasting
B) scenario planning
C) benchmarking
D) contingency planning
18. What is strategic management?
A) it is the process of measuring and controlling the production of goods and
services
B) it is a statement of action steps taken to accomplish a common goal
C) it is the process of arranging people and resources to accomplish a common
goal
D) it is the process of formulating and implementing action steps to achieved
objectives
19. What is a B2C business strategy?
A) it use IT and Web portals to link organizations vertically in supply chains
B) it uses customers to gain profit and value
C) a detailed plan that uses Google to communicate with customers
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BOH4M – Exam Review
D) it uses IT and Web portals to link businesses with customers
20. Macdonald’s business strategy is to offer the same quality of products at any of
their restaurants around the world and their advertisements convey that same
message everywhere they operate. This type of strategy is called
_________________ strategy.
A) transnational
B) multidomestic
C) co-operative
D) globalization
21. When alternative courses of action are developed in order to prepare for future
events it is called _________________ planning.
A) contingency
B) scenario
C) alternative
D) all of the above
22. Another benefit to planning includes:
A) guaranteed profits
B) improved levels of focus for workers at work
C) increased efficiency
D) guaranteed expansion of the organization’s operations
23. Who is part of the planning process?
A) top managers
B) middle managers and front-line managers
C) top managers, middle managers, and front-line managers
D) all levels of management as well as anyone who will be effected by the plans
24. What is SWOT analysis?
A) Strengths, Weaknesses, Outsider influences, Teamwork
B) Strategy, Willpower, Opportunity, Teamwork
C) Strategy, Workforce, Opinions, Threats
D) Strength, Weaknesses, Opportunities, Threats
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BOH4M – Exam Review
25. How can SWOT analysis help an organization?
A) helps the organization increase in profit
B) provide workers with better salaries
C) it helps the organization determine its overall health
D) none of the above
26. What is NOT part of the planning process?
A) determining where the organization stands currently
B) defining desired objectives
C) determining future scenarios and developing alternatives for them
D) providing extra financial support to departments with the best strategies
27. What is a procedure or a rule?
A) describes actions that are to be taken in specific situations
B) single use plans that can be changed quickly and easily
C) both and B
D) none of the above
28. When alternative courses of action are taken when something goes wrong, it is
called _________________ planning.
A) contingency
B) scenario
C) alternative
D) none of the above
29. A department’s receives the same amount of resources for every budget period
has a type of ________________ budget.
E) fixed
F) variable
G) zero-based
H) high interest
30. What is the process of organizing?
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BOH4M – Exam Review
A) it is the process of measuring results and taking action to achieve desired
results
B) it is the process of arranging people and other resources to work together to
accomplish a goal
C) it is the process of developing desired objectives and making strategies to
accomplish them
D) it is the process of inspiring others to work hard to accomplish important tasks
31. Why is organizing important in management?
A) it helps divide up the work among the workers
B) it coordinates activities
C) it allows the manager to determine where resources need to go
D) all of the above
32. Which is NOT one of the types of divisional structures?
A) product structure
B) geographical structure
C) process structure
D) network structure
33. A matrix structure works by:
A) combining functional and divisional structures within the organization where
workers belong to both a divisional group and functional group
B) creating a new organization structure where workers must follow the direct
command of the top manager
C) combining different departments within an organization to work under the
same manager
D) cutting down on the number of managers in an organization to reduce costs
34. What is a functional structure?
A) when groups of workers are put together because they bring in different skills
and expertise
B) it is the official structure of an organization
C) groups together people with similar skills who perform similar tasks
D) none of the above
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BOH4M – Exam Review
35. What is a functional chimney problem?
A) it is when workers in an organization cannot work together effectively
because the manager does not share information
B) there is a lack of communication and coordination between different functions
C) different functions compete for the same resources such as money and
technology
D) workers cannot move up in the company because there are too many
managers who are not willing to give up their positions
36. What is one of the advantages of a functional structure?
A) it creates excellent customer care
B) expertise focused on specific customers, products, and regions
C) greater ease in changing size by adding or deleting divisions
D) efficient use of resources as each function understands what and how much
to use
37. What is one of the advantages of a divisional structure?
A) efficient use of resources
B) clear career paths are provided for workers
C) in depth training of specific skills and expertise
D) greater ease in changing size by adding or deleting divisions
38. What is a customer structure?
A) it groups together customers who buy the same products
B) it groups together jobs and activities that are serving the same customers or
clients
C) it groups together managers who are also customers
D) it groups together managers whose only responsibility is to provide customer
service
39. Which company best describes an organization that uses a customer structure?
A) a skin care company like Shiseido or Neutrogena
B) a car manufacturing company like Toyota
C) a large multinational company such as Wal-Mart
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BOH4M – Exam Review
D) a fast food company like Macdonalds
40. What does shorter chains of command mean as an organization trend?
A) managers should be responsible for only a few people at a time
B) cut unnecessary levels of management in order to make create flatter, more
horizontal structures
C) all workers must report to the top manager no matter what
D) the decisions must come directly from the top manager while the other
managers serve as representatives of the workers
41. What is involved in empowerment?
A) it is when a manager keeps all information and power to himself
B) it is the process of inspiring workers to follow their leader
C) it is the process of giving more power to the people rather than just in the
hands of the manager
D) none of the above
42. Another organization trend includes:
A) leading by inspiring
B) controlling effectively
C) reduced use of staff
D) more vertical chains of command
43. How can decentralization and centralization exist in an organization?
A) share power of decision making with managers at different levels
B) share power of decision making with managers at different levels while
technology can allow the top manager to maintain awareness of what is
happening in her organization
C) share power of decision making with managers while the top manager lets go
of all decision making
D) none of the above
44. The process of leading involves:
A) motivating workers
B) maintaining high levels of performance
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BOH4M – Exam Review
C) encouraging development of skills and knowledge of workers
D) all of the above
45. What is leadership?
A) it is the process of controlling workers strictly
B) it is the process of inspiring others to work hard and accomplish important
tasks
C) it is the complete authority of the manager
D) it is the process of managing rather than inspiring
46. A visionary leader:
A) brings happiness and fun to the workplace allowing workers to feel satisfied
with their jobs
B) brings a clear and compelling sense of the future as well as an understanding
of the actions needed to get there successfully
C) ensures results through strict authority and control
D) attempts to motivate followers but fails to bring in any real achievement
47. A successful visionary leader must be able to:
A) Set an example
B) Celebrate the achievements of others
C) Share clear visions of the future
D) All of the above
48. A manager who says “because I am the boss, you must do what I ask” is relying
on ________________ power.
A) Reward
B) Legitimate
C) Coercive
D) Referent
49. A manager who exercises control over his workers by punishing them for
unsatisfactory work is relying on _____________ power.
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BOH4M – Exam Review
A) Reward
B) Legitimate
C) Coercive
D) Referent
50. Manager’s overall power = ___________ power X ___________ power:
A) Expert, legitimate
B) Reward, referent
C) Expert, coercive
D) Positional, personal
51. When a leader assumes that others will do as she asks because they want to
positively identify with her, she is relying on ________ power to influence their
behavior.
A) Expert
B) Referent
C) Reward
D) Legitimate
52. When a manager places high value on the task as well as for the people she is
using a _____________ style of leadership:
A) democratic
B) laissez-faire
C) autocratic
D) decisional
53. Why is ethics an important part of leadership?
A) A manager’s power must be within limits and within reason
B) A manager cannot abuse his/her powers
C) A manager must be a positive role model in the workplace
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BOH4M – Exam Review
D) None of the above
54. A leader who has drive:
A) demonstrates high energy, takes initiative, and is persistent in achieving
goals
B) has the ability to use their intelligence to make good decisions all the time
C) is trustworthy and honest
D) is patient and understanding of all the needs of his/her workers
55. Which is a dimension of leadership style?
A) concern for workers
B) concern for managers
C) concern for themselves
D) concern for the top manager
56. A manager who places more focus on the relationship with the workers and also
says “do as you please” is displaying a ____________ style of leadership.
A) laissez-faire
B) democratic
C) autocratic
D) decisional
57. An effective leader should possess:
A) complete authority
B) unlimited reward power
C) self-confidence
D) all of the above
58. What is the process of controlling?
A) it is the process of planning, leading, and organizing to achieve desired
results
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BOH4M – Exam Review
B) it is the process of measuring performance and taking action to accomplish
desired goals
C) it is the process of carefully planning and organizing to make the best use of
available resources
D) it is the process of managing workers effectively
59. What is feedforward control?
A) it is a type of control where action is taken at the end of the task, or after a
project is complete
B) it is a type of control where action is taken as the task or project is occurring
C) it is a type of control where action is taken as soon as the task or project
starts
D) it is a type of control where action is taken before to the start of the task or
project
60. What is an action-action review?
A) it identifies the lessons learned in a completed project or task
B) it is a review of managers
C) it is a review of customers feedback
D) it identifies all the desired results of the organization
61. The first step in the control process is to:
A) measure actual performance
B) establish objectives and standards
C) compare results with objectives
D) take corrective action
62. When an organization compares current performance results or levels with past
accomplishments, they are performing a __________________:
A) engineering comparison
B) historical comparison
C) reference comparison
D) relative comparison
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Mr. Brito
BOH4M – Exam Review
63. The control equation which says need for action = desired performance – actual
performance is part of which step in the control process?
A) measuring actual performance
B) establishing objectives and standards
C) comparing results with objectives
D) taking corrective action
64. When an automobile manufacturer is careful to purchase only the highest-quality
raw materials to be used in production, this is an example of ______ control:
A) feedback control
B) concurrent control
C) feedforward control
D) inventory control
65. Taking action as the task is occurring is a type of ____________ control:
A) Feedforward
B) Concurrent
C) Feedback
D) Preliminary
66. When a toy manufacturing company replaces a part on a toy after being sold and
getting complaints from customers, this is an example of _______________
control:
A) feedback control
B) concurrent control
C) feedforward control
D) inventory control
67. When an automobile manufacturer finds an error in the engine while testing it
before putting the product out to market and takes corrective action, this is an
example of _______________ control:
A) Feedforward
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B) Feedback
C) Concurrent
D) Preliminary
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