Bus 206 Sample Questions Chapters 5-8
Bus 206 Sample Questions Chapters 5-8
Bus 206 Sample Questions Chapters 5-8
17) The Global Compact is a document created by the United Nations outlining principles for
doing business globally in the areas of human rights, labor, the environment, and anticorruption.
18) The Organization for Economic Co-Operation and Development developed a global code of
ethics.
19) Employees who raise ethical concerns or issues to others inside or outside the organization
are called social activists.
20) Under the Sarbanes-Oxley Act, whistle-blowers in the United States who report suspected
corporate violations of laws now have broad protection from reprisals and retaliation.
21) Social obligation is the obligation of a business to meet its ________.
A) social and technological responsibilities
B) economic and social responsibilities
C) technological and economic responsibilities
D) economic and legal responsibilities
22) The ________ view of social responsibility holds that management's only social
responsibility is to maximize profits.
A) socioeconomic
B) classical
C) contemporary
D) sociolegal
23) The most outspoken advocate of the classical view of social responsibility is economist and
Nobel laureate ________.
A) George Stigler
B) Arthur F. Burns
C) Homer Jones
D) Milton Friedman
24) Under the concept of social obligation, the organization does what is required by the
________.
A) society
B) stakeholders
C) environment
D) law
25) The ________ view is that management's social responsibility goes beyond making profits to
include protecting and improving society's welfare.
A) sociotechnical
B) socioeconomic
C) sociolegal
D) sociopolitical
26) ________ is defined as a business firm's intention, beyond its legal and economic
obligations, to do the right things and act in ways that are good for society.
A) Social obligation
B) Social responsibility
C) Social screening
D) Values-based management
27) The aspect that differentiates social responsibility from other similar concepts is that it adds
a(n) ________.
A) ethical imperative
B) legal imperative
C) political imperative
D) technical imperative
28) In the United States a company that meets federal pollution control standards and does not
discriminate in hiring, promotion, and pay is generally meeting its ________.
A) social screening requirements
B) green management requirements
C) social obligation
D) social responsibility
29) When a firm advertises that it only uses recycled paper products it is ________.
A) meeting its social obligation
B) meeting its social screening requirements
C) being socially responsive
D) adopting green management
30) A U.S. business that provides on-site childcare facilities for employees is ________.
A) being socially responsive
B) fulfilling its social obligations
C) adopting social screening
D) practicing green management
31) Which of the following examples reflects a socially responsible action by an organization?
A) Ford Motor Company became the first automaker to endorse a federal ban on sending text
messages while driving.
B) Apple has eliminated lead-lined glass monitors from its product line and pioneered reducedsized packaging that leverages recyclable materials.
C) Fed Ex provided the Federal Emergency Management Agency (FEMA) with a radio antenna
to set up communications in the immediate aftermath of Hurricane Katrina.
D) UPS has a company-wide policy that urges employees to volunteer during natural disasters
and other crises.
32) According to the ________ argument on social responsibility, businesses should be socially
responsible because responsible actions are the right thing to do.
A) public expectation
B) ethical obligation
C) public image
D) long-run profit
33) The belief that business involvement can help solve difficult social problems is the ________
argument on social responsibility.
A) public expectation
B) public image
C) better environment
D) possession of resources
34) Which of the following arguments on social responsibility states that businesses should
address social problems before they become serious and costly to correct?
A) superiority of prevention over cures
B) possession of resources
C) accountability
D) skills
35) Which of the following arguments on social responsibility states that a business is socially
responsible only when it pursues its economic interests?
A) costs
B) violation of profit maximization
C) superiority of prevention over cures
D) too much power
36) Which of the following arguments on social responsibility states that pursuing social goals
hurts a business's economic productivity?
A) image
B) dilution of purpose
C) costs
D) lack of skills
37) Which of the following arguments on social responsibility states that there is no direct line of
responsibility for social actions?
A) dilution of purpose
B) stockholder interest
C) too much power
D) lack of accountability
38) The process of applying social and environmental criteria to an investment decision is known
as ________.
A) green management
B) value-based management
C) community investing
D) social screening
39) Managers who consider the impact of their organization on the natural environment are said
to be practicing ________.
A) value-based management
B) ethics-based management
C) conventional management
D) green management
40) There are four approaches that organizations can take in order to go green. Which of the
following is NOT a part of those approaches?
A) legal approach
B) market approach
C) stakeholder approach
D) operations approach
41) In which of the following approaches of going green does the organization exhibit the least
environmental sensitivity?
A) light green approach
B) deep green approach
C) market approach
D) stakeholder approach
42) In the ________ approach of going green, organizations respond to the environmental
preferences of customers.
A) legal
B) market
C) stakeholder
D) activist
43) In the ________ approach of going green, an organization works to meet the environmental
demands
of its employees, suppliers, or community.
A) deep green
B) light green
C) market
D) stakeholder
44) Which of the following approaches of going green reflects the highest degree of
environmental sensitivity and is also a good illustration of the social responsibility of the
organization?
A) legal approach
B) market approach
C) stakeholder approach
D) activist approach
45) Many companies around the globe voluntarily report their efforts in promoting
environmental sustainability using the guidelines developed by the ________.
A) United Nations
B) Environmental Protection Agency
C) Global Reporting Initiative
D) Organization for Economic Co-operation and Development
46) Which of the following ISO standards is related to quality management?
A) ISO 9000
B) ISO 14000
C) ISO 8000
D) ISO 15000
47) One way to evaluate a company's green actions is to use the ________ list of the most
sustainable corporations in the world.
A) Global 100
B) Global 90
C) Global 80
D) Global 70
48) To be named on the Global 100 list, which is announced each year at the ________, a
company has to display a superior ability to effectively manage environmental and social factors.
A) Global Reporting Council
B) World Economic Forum
C) United Nations Economic and Social Council
D) World Social Forum
49) ________ defined as the principles and beliefs that define right and wrong decisions and
behavior.
A) Whistle-blowing is
B) Entrepreneuring is
C) Ethics is
D) Values are
50) At the ________ level of moral development, a person's choice between right or wrong is
based on personal consequences from outside sources, such as physical punishment, reward, or
exchange of favors.
A) preconventional
B) conventional
C) principled
D) elevated
51) At the ________ level of moral development, ethical decisions rely on maintaining expected
standards and living up to the expectations of others.
A) principled
B) conventional
C) conscientious
D) preconventional
52) At the ________ level of moral development, individuals define moral values apart from the
authority of the groups to which they belong or society in general.
A) conventional
B) established
C) principled
D) preconventional
53) The idea that businesses should eliminate discrimination in respect to employment and
occupation is a Global Compact principle in the area of ________.
A) anticorruption
B) human rights
C) environment
D) labor standards
54) Which of the following is NOT a way for management to reduce unethical behavior?
A) select individuals with high ethical standards
B) establish codes of conduct
C) provide ethics training
D) monitor employee telephone calls
55) The primary debate about ethics training programs is whether ________.
A) ethics can be taught
B) ethics causes misconduct
C) the programs cover misconduct outside the workplace
D) the programs give unethical individuals more ammunition
56) Employees who raise ethical concerns or issues in an organization are known as ________.
A) employee-volunteers
B) whistle-blowers
C) entrepreneurs
D) philanthropist
Chapter 6 Managing Change and Innovation
1) The "calm waters" metaphor of change is consistent with Lewin's concept of unfreezing,
changing, and refreezing.
2) In the "white-water rapids" metaphor of change, change is seen as an occasional disruption in
the normal flow of events.
3) Organizational change can be any alteration of people, structure, or technology.
4) Managers exclusively play the role of change agents.
6) Sensitivity training refers to activities that help team members learn how each member thinks
and works.
7) One reason people resist change in an organization is that their future has been set and cannot
be changed.
8) Negotiation refers to covert attempts to influence others about a change by distorting the facts
to make the change appear more attractive.
9) Coercion involves exchanging something of value for an arrangement to lessen the resistance
21) According to Kurt Lewin, which of the following is a stage in the change process?
A) restraining
B) driving
C) processing
D) unfreezing
22) Organizational change is any alteration of ________.
A) people, structure, or technology
B) structure, management, or goals
C) technology, goals, or management
D) rules, procedures, or management
23) Outside consultants are more likely to initiate ________ organizational changes than
insiders.
A) drastic
B) mild
C) contented
D) trivial
24) A company that decides to decentralize its sales procedures is managing ________ changes.
A) technological
B) people
C) financial
D) structural
25) Competitive factors or new innovations within an industry often require managers to
introduce ________.
A) new equipment, tools, or operating methods
B) new equipments, tools, or people
C) new equipment, operating methods, or structure
D) new equipment, people, or structure
26) ________ involves distorting facts to make the change appear more attractive.
A) Coercion
B) Education and communication
C) Participation
D) Manipulation and co-optation
27) Which of the following is a favorable condition that will facilitate a cultural change?
A) the organization has a huge workforce
B) the organization has a long existence
C) a dramatic crisis occurs
D) a stable leadership exists
28) Which of the following is a strategy for managing cultural change?
A) Support employees who remain devoted to the old values.
B) Redesign socialization processes to align with the new values.
starting point and then, once set, fail to adequately adjust for subsequent information.
11) Highly reliable organizations (HROs) are easily tricked by their success.
12) A series of eight steps that begins with identifying a problem and concludes with
evaluating a decision's effectiveness is known as ________.
A) the decision-making process
B) decision support theory
C) a decision-tree analysis
D) a decision information system
13) A(n) ________ is the existence of a discrepancy between an existing and a desired state of
affairs.
A) hazard
B) risk
C) uncertainty
D) problem
14) Which of the following statements is true concerning problem identification?
A) Problems are generally obvious.
B) A symptom and a problem are one and the same.
C) Generally, what is a problem for one manager is a problem for all other managers.
D) Effectively identifying problems is not easy.
15) After identifying a problem, the next step in the decision-making process is ________.
A) identifying decision criteria
B) allocating weights to decision criteria
C) analyzing alternatives
D) developing alternatives
16) Amanda, a single parent, is looking for a new job. Considering that she has two school-going
children, she is particularly keen on finding an employer who can provide her with alternative
work arrangements such as flexible work hours and telecommuting. In terms of the decisionmaking process, these represent Amanda's ________.
A) decision criteria
B) problems
C) alternatives
D) heuristics
17) Max is planning on going away to college next year and is currently trying to figure out
which colleges he should apply to. He would like to major in English Literature at an accredited
liberal arts college, but is also looking for a university that offers financial aid. In terms of the
decision-making process, these represent Max's ________.
A) problems
B) alternatives
C) decision criteria
D) heuristics
18) In the decision-making process, after allocating weights to the decision criteria, the decisionmaker must then _________.
A) list viable alternatives that could resolve the problem
B) allocate weights to each alternative that could resolve the problem
C) evaluate each alternative that could resolve the problem
D) rate all alternatives that could solve the problem using the decision criteria
19) Sue works in the finance department of a large multinational corporation. Her manager has
asked her to submit a detailed report on the department's quarterly expenses within the next two
days. Being pressed for time, Sue identifies three courses of action that could help her
accomplish her task-she can stretch her working hours till she finishes the report, she can ask her
colleague to chip in, or she could ask her manager for additional time. Which stage is Sue at in
the decision-making process?
A) selecting an alternative
B) identifying decision criteria
C) developing alternatives
D) evaluating decision effectiveness
20) The final step in the decision-making process is to ________.
A) determine the criteria for the next decision
B) analyze the process of allocating weights to the decision criteria
C) evaluate the outcome of the decision
D) implement the chosen alternative
21) It is assumed that a rational decision maker ________.
A) faces unclear and ambiguous problems
B) is limited by his or her ability to process information
C) is unaware of all the possible alternatives and consequences
D) is fully objective and logical
22) Which of the following is NOT a valid assumption about rationality?
A) The problem is clear and unambiguous.
B) A single, well-defined goal is to be achieved.
C) The decision maker is logical in his approach.
D) The decision maker accepts a solution that is good enough.
23) When managers make decisions that are rational but limited by their ability to process the
information, they are following the concept of ________.
A) cognitive decision making
B) bounded rationality
C) escalation of commitment
D) intuitive decision making
24) ________ results in a solution that is considered "good enough."
A) Escalating
B) Linear thinking
C) Intuition
D) Satisficing
25) Toby is hunting for a new apartment. He is specifically looking for one that is located in the
heart of the city and should be available for $600 per month. However, Toby is also willing to
pay up to $850 per month for a place that is situated slighted away from the city center.
According to him, the second option "will also do." This is an example of ________.
A) rational decision making
B) bounded rationality
C) intuitive decision making
D) non linear thinking
26) Julie is keen on joining Columbia University to pursue a master's degree in economics.
However, after three months of applying and waiting for an acceptance letter, she finally decides
to join NYU, which was one of her backup colleges. This is an example of ________.
A) maximizing
B) neutralizing
C) minimizing
D) satisficing
27) Escalation of commitment refers to ________.
A) commitment to a faulty decision due to an unwillingness to go against the opinion of the
majority
B) an increased commitment to a previous decision despite evidence that it may have been
wrong
C) the strengthening of commitment to a particular course of action due to greater motivation by
others
D) greater commitment to a decision because of one's belief that it is "the right thing to do"
28) Intuitive decision making ________.
A) is the systematic use of the best available evidence to improve decision making practice
B) generally results in poor decisions and hence managers should learn to ignore their gut
feelings
C) is the process of making decisions based on experience, feelings, and accumulated judgment
D) complements rational decision making but not bounded rational decision making
29) ________ are straightforward, familiar, and easily defined.
A) Organic problems
B) Structured problems
C) Analogous problems
D) Nonprogrammed problems
30) Structured problems align well with which type of decisions?
A) programmed
B) analogous
C) organic
D) nonlinear
31) A procedure ________.
A) is an explicit statement that tells a manager what can or cannot be done
B) is a series of sequential steps a manager uses to respond to a structured problem
45) ________ is a situation in which a decision maker cannot make reasonable probability
estimates.
A) Necessity
B) Risk
C) Uncertainty
D) Certitude
46) The ________ thinking style is characterized by a person's preference for using external data
and facts and processing this information through rational, logical thinking to guide decisions
and actions.
A) linear
B) normative
C) behavioral
D) organic
47) The ________ thinking style is characterized by a preference for internal sources of
information and processing this information with internal insights, feelings, and hunches to guide
decisions and actions.
A) active experimentation
B) nonlinear
C) linear
D) organic
48) Rules of thumb that managers use to simplify decision making are known as ________.
A) heuristics
B) folksonomies
C) algorithms
D) sophisms
49) The ________ describes how decision makers fixate on initial information as a starting point
and then, once set, fail to adequately adjust for subsequent information.
A) anchoring effect
B) selective perception effect
C) confirmation bias
D) framing bias
50) Sophie is in charge of recruitment at her company. During a particular interview, the first
thing Sophie noticed about the applicant was that he was improperly attired. Though the
candidate possessed the necessary qualifications and effectively answered all her questions,
Sophie rejected him. This is an example of the ________.
A) randomness bias
B) self-serving bias
C) anchoring effect
D) representation bias
51) When decision makers seek out information that reaffirms their past choices and discount
information that contradicts past judgments, they are exhibiting the ________.
A) framing bias
B) availability bias
C) representation bias
D) confirmation bias
52) Martie had arranged for a high-profile speaker to deliver the keynote address at her college's
annual function. However, due to unforeseen circumstances, the speaker was forced to drop out
at the last moment. Martie reacts to this news by saying, "I knew all along that this would
happen." This is an example of the ________.
A) anchoring bias
B) randomness bias
C) self-serving bias
D) hindsight bias
Managing Your Career (Scenario)
Michelle has a new job and is learning to perform the tasks assigned to her. Different situations
demand different decision-making processes.
53) Michelle finds a company directive that specifically restricts her from taking certain actions.
This is a(n) ________.
A) rule
B) policy
C) agenda
D) procedure
54) Michelle eventually finds a problem that has no cut-and-dry solution. The problem is unique
and is unlikely to occur again. This problem is ________ in nature.
A) structured
B) programmed
C) scheduled
D) nonprogrammed
5) Several research studies have conclusively proven that planning organizations always
outperform nonplanning organizations.
6) Studies indicate that doing a good job planning and implementing those plans play a bigger
part in high performance than does how much planning is done.
7) As managers plan, they develop both goals and plans.
8) The number of years used to define short-term and long-term plans has increased considerably
because of the greater environmental certainty businesses have today.
9) When uncertainty is high and managers must be flexible in order to respond to unexpected
changes, directional plans are preferable.
10) The standard procedure to be followed by the human resources department of a company
when initiating disciplinary action against an employee is an example of a standing plan.
11) In the management by objectives (MBO) process of goal setting, goals are not well-defined,
giving managers and employees more flexibility to respond to changing conditions.
12) The first step in goal setting is to evaluate available resources.
13) The commitment concept says that plans should extend far enough to meet those
commitments made when the plans were developed.
14) In an uncertain environment, managers should develop plans that are specific, but flexible.
15) Dynamic environments require a flatter organizational hierarchy in order to plan effectively.
16) ________ involves defining the organization's goals, establishing strategies for achieving
those goals, and developing plans to integrate and coordinate work activities.
A) Execution
B) Logistics
C) Planning
D) Operations
17) Which of the following is one of the reasons why managers should plan?
A) When work activities are coordinated around plans, inefficiencies become obvious.
B) Uncertainty can be eliminated and the organization can be insulated from change with
planning.
C) Planning eliminates the need to set goals.
D) Planning eliminates the need to measure work effort.
18) Which of the following is true of the impact of formal planning on organizational
performance?
A) Formal planning is associated with positive financial results.
B) Organizations that formally plan invariably outperform those that don't plan.
C) The amount of planning done is more important to high performance than the quality of
planning and implementation.
D) Companies can start seeing the impact of formal planning on performance after about a year
of starting the planning process.
19) The effect of planning on managers is that it forces them to ________.
A) grow resistant to change
B) anticipate and respond to change
C) eliminate uncertainty
D) work at cross purposes
20) When formal planning fails to lead to higher performance, which of the following is most
likely to be the reason for the failure?
A) A participative style of planning was used.
B) Managers were allowed too much autonomy.
C) The company emphasized the control function over other functions.
D) Constraints of the external environment.
21) Goals are different from plans because ________.
A) goals identify specific steps that the organization needs to achieve, and plans identify the
overall mission of the organization
B) goals describe financial objectives, and plans describe objectives related to social
responsibility
C) goals are important only for small companies, and plans are important only for large
companies
D) goals are desired outcomes, and plans describe how those outcomes will be accomplished
22) Which of the following statements is true regarding an organization's goals?
A) All organizations share the single goal of making profits.
B) A single goal is more efficient than multiple goals for defining an organization's success.
C) Using a single goal such as profit may result in unethical behaviors by employees.
D) Long-term success is ensured if managers emphasize only one goal for an organization.
23) Nike, Inc. is a sportswear and equipment manufacturer that serves a multitude of sports
disciplines. Which of the following statements from Nike would be the best example of a
strategic goal?
A) a ten percent increase in average annual sales
B) a seven percent increase in average annual income
C) achieving a return on investment of 17 percent
D) accelerating growth through focused execution
A) Departmental
B) Strategic
C) Operational
D) Specific
32) Plans that encompass only the production or the sales goals of a company are termed
________ plans.
A) operational
B) strategic
C) informal
D) financial
33) Which of the following factors has contributed to the decline in the number of years used to
define short-term and long-term plans?
A) environmental uncertainty
B) profit-orientation of businesses
C) flattened organizational structures
D) stagnant business conditions
34) What plans are preferable when uncertainty is high in the business environment?
A) standing plans
B) directional plans
C) specific plans
D) informal plans
35) Which of the following statements is true of traditional goal setting?
A) Traditional goal setting assumes that employees know best and employs a bottom-up
approach of setting organizational goals.
B) Evaluation of performance is carried out concurrently with the flow of goals through the
organization.
C) Goals defined narrowly by top managers need to be made more directional as they flow down
through the organization.
D) Managers at each level define goals and apply their own interpretations and biases as they
make them more specific.
36) A ________ is an integrated network of goals in which the accomplishment of goals at one
level serves as the means for achieving the goals, or ends, at the next level.
A) reverse pyramid
B) means-ends chain
C) bottom-up ladder
D) process sequence
37) Which of the following reflects the way goals are set in an MBO program?
A) Goals are not used to measure and control employee performance.
B) Goals tend to be broad and directional to encourage interpretation by individual managers.
C) Apart from being used to ensure that employees are doing what they are supposed to be doing,
goals are used as a motivating tool for employees.
D) Goals are set by top level managers and lower level employees implement them based upon
their interpretation of these goals.
38) Which of the following is the last step in MBO?
A) Progress toward objectives is periodically reviewed, and feedback is provided.
B) The organization's overall objectives and strategies are formulated.
C) Successful achievement of objectives is reinforced by performance-based rewards.
D) Action plans are implemented.
39) Well-written goals are ________.
A) written in terms of actions rather than outcomes
B) just of reach
C) easily achieved
D) clear as to a time frame
40) An organization is in the process of goal setting. It has finished reviewing the organization's
mission. What should it do next?
A) Determine the goals individually or with input from others.
B) Write down the goals and communicate them to all who need to know.
C) Evaluate available resources.
D) Review results and whether goals are being met.
41) When uncertainty is high, plans should be ________ and ________.
A) specific; flexible
B) directional; standing
C) short-term; directional
D) general; informal
42) The commitment concept says that plans should ________.
A) extend far enough to meet those commitments made when the plans were developed
B) be done for as long a time period as possible
C) be done for as short a time period as possible
D) not commit to specifically meeting the goals made when the plans were developed
43) When is the traditional top-down approach to planning most likely to be effective?
A) when lower level employees develop plans
B) when the plans focus on developing a large number of plans and carefully documenting them
C) when the management avoids the use of a formal planning department
D) when plans are developed that can actually be used by organizational members
44) How can managers effectively plan when the external environment is continually changing?
A) They should discontinue formal planning.
B) They should set general, but rigid plans.
C) They should be ready to change directions if environmental conditions warrant.
D) They should continue to follow the set organizational plans as persistence will eventually pay.
45) Which of the following statements is true of planning in dynamic environments?
A) Organizations should follow a pyramidal structure when operating in uncertain environments.