Business MCQs Test Bank

Business MCQs Test Bank

24) Which of the following statements about leadership is true?A. leaders are managers.B. leaders are hierarchically superior to followers.C. managers are leaders.D. Nonsanctioned leadership is as important as or more important than formal influence.E. Formal rights enable managers to lead effectively.25) Danielle wants to become a surgeon, not only because achieving this goal will give her self-respect and autonomy, but also because she wants a job with high status and recognition from others. Which of Maslows needs is Danielle trying to fill?A. self-actualizationB. psychologicalC. esteemD. safetyE. social26) Which level of Maslows hierarchy of needs deals with satisfying ones hunger, thirst, and need for sex?A. safetyB. esteemC. socialD. psychologicalE. physiological27) Which of the following statements best defines a work group?A. The performance of a work group is generally greater than the sum of its inputs from individual members.B. A work group consists of 3 or more people from across departmental or functional lines.C. A work group consists of 3 or more people who take on self-supervising responsibilities.D. A work group is a group comprised of 10 or more peopleE. A work group interacts primarily to share information, rather than to engage in work that requires joint effort.28) Negotiation can be defined as a process in which two or more parties exchange goods or services and attempt to agree upon .A. the exchange rate for those goods and servicesB. effective arbitrators for disputesC. a model of the negotiation process for resolving differencesD. the monetary value of the exchanged itemsE. acceptable bargaining strategies for obtaining the goods and services29) The traditional view of conflict is the belief that conflict is .A. harmfulB. situationally-dependentC. necessaryD. neutralE. natural30) John Kotters view argues that management focuses on coping with complexity, whereas leadership focuses on coping with .A. conflictB. moraleC. defeatD. changeE. success31) Examples of on-the-job training include all of the following except .A. job rotationB. understudy assignmentsC. simulation centersD. formal mentoring programsE. apprenticeship32) Training employees how to be better listeners falls under which of the following training categories?A. ethical skillsB. interpersonal skillsC. problem-solving skillsD. cultural skillsE. technical skills33) can be used to increase the perception that employees are treated fairly.A. Selective evaluationB. Documenting with a journalC. Multiple ratersD. Focusing on subjective evaluationsE. Due process34) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?A. intelligence testsB. work samplingC. integrity evaluationsD. aptitude testsE. behavioral assessment35) Which type of skill training has become increasingly important in organizations?A. financialB. problem solvingC. technicalD. interpersonalE. social36) Investors bragged about their investing expertise during the stock market rally between 1996 and early 2000, then blamed analysts, brokers, and the Federal Reserve when the market imploded in 2000. These investors were most probably guilty of what?A. fundamental attribution errorB. the halo effectC. self-serving biasD. distinctivenessE. selective perception37) The realistic personality from Hollands typology of personality and congruent occupations would be well suited for which of the following jobs?A. painterB. mechanicC. accountantD. lawyerE. biologist38) An example of change in the nature of the work force is an increase in.A. college attendanceB. capital equipmentC. mergers and consolidationsD. divorce ratesE. more cultural diversity39) Whenever Jane is successful she takes full credit for what has happened, but whenever she is unsuccessful she attributes her failure to bad luck or blames one of her fellow employees. She is guilty of .A. fundamental attribution errorB. the halo effectC. attribution biasD. distinctivenessE. self-serving bias40) A task that is subdivided into many separate jobs is considered to have .A. a high degree of departmentalizationB. a high degree of work specializationC. a low degree of decentralizationD. a low degree of structureE. a high degree of matrix structuring41) Which of the following would NOT be classified as a time-series technique?A. simple moving averageB. box Jenkins techniqueC. exponential smoothingD. regression modelE. trend projections42) According to David Maister, the most complex projects requiring innovation and creativity are called .A. procedures projectsB. gray hair projectsC. brain surgery projectsD. grinding projects43) Which of the following statements are true about time-series forecasting?A. Time series analysis is based on the idea that the history of occurrences over time can be used to predict the future.B. Time series analysis tries to understand the system underlying and surrounding the item being forecast.C. Under time-series methods, demand is divided into the time-based components such as daily, weekly, etc.D. Time series methods are useful for long-range forecasts when the demand pattern is erratic44) According to Goldratt and Fox, a useful performance measure to treat inventory is .A. inventory turnoverB. current ratioC. quick ratioD. dollar days45) The the percentage of contact time between the service system and the customer, the the degree of interaction between the two during the production process.A. greater, lesserB. none of these answersC. lesser, greaterD. greater, greater46) says to look for opportunities to invest in positive-NPV projects in foreign markets or to develop derivatives or design arrangements that enable firms to cope better with the risks they face in their foreign operations.A. The Principle of Risk-Return Trade-offB. The Principle of Valuable IdeasC. The Principle of DiversificationD. The Principle of Capital Market Efficiency47) A checking account is .A. a place to collect money between inflows and outflowsB. an account that acts like a reservoirC. useful because you can add money in any amountD. all of these48) says to recognize the value of hidden options in a situation, such as the foreign exchange options in some derivative instruments.A. The Options PrincipleB. The Time Value of Money PrincipleC. The Principle of Comparative AdvantageD. The Principle of Two-Sided Transactions49) Which of the following statements is true?A. The Principle of Incremental Benefits says to consider the possible ways to minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs.B. The Principle of Valuable Ideas suggests to look for opportunities to create value by issuing securities that are in short supply, perhaps resulting from changes in tax law.C. The Time Value of Money Principle advises to include any time-value-of-money tax benefits from capital structure choices.D. all of these50) Due to asymmetric information, the market fears that a firm issuing securities will do so when the stock is .A. undervaluedB. being sold by insidersC. overvaluedD. caught up in a bear market51) says to seek out investments that offer the greatest expected risk-adjusted real return.A. The Principle of Incremental BenefitsB. The Principle of Valuable IdeasC. The Signaling PrincipleD. The Principle of Self-Interested Behavior52) An all-equity-financed firm would .A. not pay any income taxes because interest would exactly offset its taxable income.B. pay corporate income taxes if its taxable income is positiveC. pay corporate income taxes because it would have interest expense.D. not pay corporate income taxes because it would have no interest expense.53) Hard capital rationing refers to the rationing .A. imposed by external factorsB. always imposed by debt holdersC. imposed internally by the shareholdersD. always imposed by competitors54) An investors risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true?A. Each stock in the portfolio has its own beta.B. Each stock in the portfolio will have a beta greater than one.C. Selling any stock in this portfolio will lower the beta of the portfolio.D. An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing).55) Under capital rationing, given the choice among several equally attractive investments, the best tool to use is the .A. Internal Rate of Return methodB. Net Present Value methodC. Payback methodD. Profitability Index method


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