MGT503 Solved MCQs With Referece WWW Vustudents Net PDF

Dear fellows!
Here is 100% correct solved M.C.Qs of principles of management mgt-503.

From lec. No (01to 22)
Key feature:
In every question I have gave the page number of handout. From where this
question is taken. So it is easy for you to also confirm it.
If you find a little mistake in this pls it is a humble request please informs me. So I
can improve it.
Lucky.jan077@gmail.com
Mc100200328@vu.edu.pk
Question No: 1 ( Marks: 1 ) - Please choose one

Sociology can be defined as:
► The study of people in relation to their fellow human beings (page no 14 on

handouts)
► The study of societies which help to learn about human and their activities
► It is the study of behavior of the individuals or groups within the political
environment
► The science that seeks to measure and explains human behavior

The Great China Wall has been built in almost:
► 900 years
► 956 years(page no 2 on handouts)
► 856 years
► 1000 years
To motivate the employees a manager should give them:
► Monetary Incentives
► Promotion
► Appreciation certificates
► All of the given options (page no 88 on handouts)

Which of the following is most important characteristic of an entrepreneur?
► Planning
► Communication
► Rapid decision making
► Goal setting
A manager transmits the information outside the organization. He is performing
which of the following role?
► Spokesperson(page no 08 on handouts)
► Representative
► Disseminator
► Agent

All of the following are managerial roles identified in Mintzberg’s Model EXCEPT:
► Informational
► Interpersonal
► Functional(page no 08 on handouts)
► Decisional
The concern of which of the following was to improve the performance of the
overall functions of the organization?
► Quantitative Management
► Administrative Management(page no 19 on handouts)
► Scientific Management
► Bureaucratic Management

Henri Fayol was a successful industrialist of :
► France(page no 19 on handouts)
► Germany
► America
► Canada
Chester Barnard saw organizations as a ______system that required human
assistance.
► Moral
► Ethical
► Social(page no 20 on handouts)
► Technical

A company commitment to develop a process that achieves high quality product
and customer satisfaction is called:
► Knowledge management
► Total quality management(page no 24 on handouts)
► Marketing management
► System management
Two major characteristics of open system are :
► Negative entropy and synergy(page no 25 on handouts)
► Positive entropy and synergy

► Entropy and synergy
► Anthropology and synergy

Environment reacts to the output of organization and provides:
► Feed forward
► Input
► Output
► Feedbac(page no 25 on handouts)

All of the following are major elements of the mega environment EXCEPT:
► Technological
► Economic
► Socio-cultural
► Competitors(page no 30 on handouts)

In a capitalistic economy, economic activity is governed by:
► Political forces
► Market forces(page no 30 on handouts)
► Economic forces
► Cultural forces

All of the following are elements of Task environment EXCEPT :
► Suppliers
► Culture(page no 30 on handouts)
► Customers
► Competitors

All of the following are Dimensions of organizational culture EXCEPT:
► Innovation
► Aggressiveness
► Stability
► Customer orientation(page no 31 on handouts)
The principle reason for formation of the regional trading alliance in Europe was to
reduce the power of the United States and:
► Canada
► Mexico
► Russia
► Japan(page no 37 on handouts)

Most of the time lower level management of organizations have to deal with
problems which are:
► Satisficing
► Well-structured(page no 43 on handouts)
► Non-programmed
► Ill-structured
Which of the following is the basic rule of brainstorming?
► Criticism is not allowed(page no 39 on handouts)
► Ideas should be radical

► Improvement of ideas is encouraged
► Quantity of idea production is stressed
Which one of the following plans has clearly defined objectives?
► Directional
► Flexible
► Specific(page no 59 on handouts)
► Standing
Suppose as a manager of a Company you are performing an activity that involves
budgeting and programming of your subordinates’ work. In this situation you are
working as:
► Entrepreneur
► Resource allocator(page no 8 on handouts)
► Figurehead
► Monitor
22.----------- maintains self developed network of outside contacts and
informers who
provide favors and information.
► Entrepreneur
► Monitor
► Liaison (page no 8 on handout)
► Figurehead
23-------------- is the planning and implementing of organizational
systems and practices
that maximize the potential of employees to contribute to
organizational goals and
develop their capabilities unhindered by group identities such as
race, gender, age, or
ethnic group.
► Managing Diversity(page no 13 on handout)

► Anthropology
► Bureaucracy
► Remuneration
Question no.24.Seema desires for friendship, love, and a sense of
belonging, we can say that she
fulfils the_______
► Physical need
► Self Actualization
► Social need (page no 90 on handout)
► Esteem
25.A manager in a manufacturing company attempts to establish a

culture of quality
affecting the attitudes and actions of every employee and relies on a
workforce that
wants to improve quality. He focuses on establishing -----------------------
------------.
► Total Quality Management(page no 24 on handout)

► Operations Management
► Management of Information System
26------------ is a condition in which the decision maker chooses a
course of action without
complete knowledge of the consequences that will follow
implementation.
► Risk
► Ambiguity
► Accuracy
►Uncertainty(page no 40 on handout)
27.Which of the following is the constituency in the environment that
is affected by an
organization’ s decisions and policies and that can influence the
organization.
► Stockholders(page no 31 on handout)
► Shareholders
► Competitor
► Stakeholders
28.NAFTA stands for :
►North American Free Trade Agreement(page no 36on

handout)
►North Asian Free Trade Agreement
►North American Free Trade Association
► None of the given options
29.Which one of the following is not the characteristic of Weber’s
ideal bureaucracy?
► Specialization of labor
► Formalization of rules
► Division of labor(page no 18 on handout)
► Formalization of links authority into a hierarchical structure
Which of the following is NOT one of Fredrick Taylor's four principles of

management?
► Avoid cooperation with workers(page no .16 on handout)
► Scientifically select and then train workers
► Divide work and responsibility
► Study tasks scientifically and develop best method to perform it
The managerial functions according to Fayol were :

► Organizing, staffing, commanding, coordinating and controlling
► Commanding, organizing, planning, coordinating and staffing
► Controlling, commanding, organizing, planning and leading
► Planning, organizing, commanding, coordinating and
controlling(page no .19 on handout)
32…..According to Maslow's hierarchy of need, a healthy work environment
is an example of which of the following need?
► Physiological
► Esteem
► Safety(page no .90 on handout)
► Social
Which of the following management perspective focuses on decision

making, economic effectiveness, mathematical models and use of
computers?
► Total quality management
► Quantitative management(page no .23 on handout)
Mega environment is also called:

► Open environment
► Close environment
► Flexible environment
► General environment(page no .29 on handout)
Environment made up of specific outside elements within which an

organization interfaces in the course of conducting its business is called:
► Internal environment
► External environment
► The task environment(page no .30 on handout)
► The mega environment
Mega environment, that includes the attitudes, values, norms, beliefs,

behaviors and associated demographic trends that are characteristics of a
given geographic area, is called
► The socio-cultural element(page no .30 on handout)

► The international element
► The economic element
► The legal-political element
The belief that a firm's obligation goes beyond that required by law and
economics, and includes a pursuit of long-term goals that are good for
society is known as:
► Ethical responsibility
► Social responsibility(page no .32 on handout)
► Social obligation
► Social responsiveness
A choice made from two or more alternatives is called:

► Support
► System
► Network
► Decision(page no .39 on handout)
Most of the time lower level management of organizations have to deal

with problems which are:
► Satisficing
► Well-structured(page no .43 on handout)
► Non-programmed
► Ill-structured
When an organization encounters a serious problem which needs to be

solved immediately, it is called:
► Crisis problem (page no .41 on handout)
► Non- Crisis problem
► Opportunity problem
► Financial Problem
Which of the following refers to the concentration of decision authority at

the top levels of the organizational hierarchy?
► Decentralization
► Departmentalization
► Centralization (page no .83 on handout)
► Formalization
‘Break-even Analysis’ is a means of earning profitable operations of the

business through concrete calculations. Therefore, it falls under:
► Scientific management
► Behavioral management
► Management science
► Operation management
Which of the resource allocation technique gives more emphasis to

allotment of time?
► Budgeting
► Scheduling(page no .53 on handout)
► Break even analysis
► Linear programming
All of the following are the parts of organization’s external environment,

EXCEPT:
► Organizational cultures(page no .31 on handout)
► Target customers
► Company competitors
► Performance regulators
Quiz:
(45) In general, entrepreneurs are better able than managers in a traditional

hierarchical organization to
lead.
organize.
respond to a changing environment. (page no 7 on handout)
respond to a static environment
46. Which of the following statements about middle managers is not true?
Middle managers coordinate the work of supervisors.
Middle managers implement the objectives and plans of top management.
The number of middle managers in the most organizations is increasing .

(page no 11 on handout)
Operatives can report directly to middle managers.
47. -------------- involves cultivating a learning culture where organizational

members systematically gather knowledge and share it with others to
achieve better performance.
Knowledge management . (page no 24 on handout)
Learning Organization
Entrepreneurship
None of the given options
48. Mr. A. is a manager in a manufacturing company, he attempts to

establish a culture of quality affecting the attitudes and actions of every
employee and relies on a workforce that wants to improve quality. He
focuses on establishing:
Total Quality Management . (page no 24 on handout) objective of tqm
Knowledge management
Operations Management
Management of Information System
49. Ali is working in XYZ Company, he desires to get himself secure from
crimes, company lay offs and other adverse impacts. We can say that he
fulfils the ----------------- need.
Self Actualization
Social need
Esteem
Safety . (page no 90 on handout)safty needs pertain to the desire to be

safe,secure……..
50. In -------------- theory management assumes that employees may be
ambitious, self-motivated, and anxious to accept greater responsibility, and
exercise self-control, self-direction, autonomy and empowerment.
Theory Y manager . (page no 91 on handout)
Theory X manager
Theory Z manager
All of the above
51. ----------- involves the products, services, and other outcomes produced
by the organization.
Inputs
Transformation process
Outputs . (page no 25 on handout)
Feed Back
52. ----------- is known as the father of scientific management.
Fredrick Winslow Taylor. . (page no 16 on handout)
Max Weber
Peter Drucker
None of the given options
53. --------------- searches organization and its environment for opportunities

and initiates “improvement projects” to bring about changes.
Disturbance handler
Liaison
Leader
Entrepreneur . (page no 8 on handout)
54. Mr. A is a manager in Xyz Company. He gets his work done with and
through other people. He leads the employees motivates them and have a
good interaction with his employees, which of the following skills he has:
Technical Skills
Human Skills
Conceptual Skills
Decisional Skills
55. ---------------- is the final step in the decision-making process.
Implementing the decision
Evaluating the decision . (page no 42 on handout)
Recognizing the decision
Evaluating the alternatives
56. A --------- is a series of interrelated sequential steps that can be used to

respond to a structural problem.
Policy
Rule
Well structured problems
Procedure . (page no 43 on handout)
57. Mintzberg grouped the ten managerial roles into three primary
headings. Which of the following is not one of these headings?
interpersonal relationships
transfer of information
planning. (page no 8 on handout)
decision making
58. Organizations that have a high potential of offering rival products or

services are called
Suppliers
Competitors . (page no 30 on handout)
Clients
Customers
59. Mr. Zafar has undertaken a new business of leather bags investing 150,000;
usually with some accountability of risk. We may call Mr. Zafar:
Manager
Leader
Competitor
Entrepreneur . (ref)entrepreneur is a risk taker
60. -------------------is achieved when the cost of producing a given output is as

low as possible.
Efficiency. (page no 9 on handout)
Effectiveness
Break even
Both A and B
61. Set of the attitudes, experiences, beliefs and values of an organization is

called organization’s
Strengths
Environment
Culture . (page no 30 on handout)
Resources
62. Mr. X the HR manager of Star Mini Miners Club recruits labor with
different skills for different jobs. This approach is characteristic of
Equity
Impersonality
Division of labor . (page no 78 on handout)
Discipline
63. In ABC Company, all the activities particularly those regarding

decision-making, are concentrated within a particular location and/or
group. The company observes
Centralization . (page no 83 on handout)
Decentralization
Span of control
Job Rotation
64. Which of the following is not allowed in a brainstorming session?
Clear definition of the problem
Criticism of poor ideas . (page no 39 on handout)
Large number of alternatives

Recording of all alternatives
65. Mr. A is the HR Manager of XYZ Company. He decided to terminate a

group of employees because their positions were no longer necessary in
the organization. What will you say Mr. A has decided for?
Restructuring
Turnover
Downsizing . (page no 82 on handout)ref…downsizing is the process of

significantly reducing the layer of employees……….)
Job Rotation
66. A job has high -------------- if workers are given substantial freedom,
independence, and discretion in scheduling the work and determining the
procedures to be used in carrying it out.
Autonomy . (page no 85 on handout)
Feed back
Skill Variety
Enlargement
67 ------------ means that the two merging companies became history and
a new firm is established
Acquisition
Merger (page no 70 on handout)
Joint Venture
Both A and B
68 ------------- means only one company became history which is the

acquired company while the acquiring company remain.
Joint Venture
Merger
Acquisition (page no 70 on handout)

Both A and B
69. Maslow's hierarchy of needs proposes that an individual begins by

satisfying ----------- needs.
Self-actualization
Esteem
Physiological (page no 90 on handout)
Safety
70. Which element of structure refers to the continuous line of authority

that extends from the highest organizational levels to the lowest and
clarifies who reports to whom?
Work specialization
Span of control
Centralization
Unity of command (page no 19 on handout)
71. Organizations that have developed the capacity to continuously

adapt and change because their members take an active role in
identifying and resolving work-related issues are called _____
organizations.
Learning (page no 24 on handout)
Visionary
Community
Interdependent
72. When an organization is in several different businesses, these single

businesses that are independent and formulate their own strategies
are often called _____.
Strategic business units (page no 68 on handout)
Monopolistic advantages
Quality controllers
Stars
73. Organizations using Porter's _____ strategy select a market segment

in an industry and attempt to exploit it rather than serve the broad
market.
Cost leadership
Differentiation
Stuck in the middle
Focus(page no 72 on handout)
74. ----------- involves increasing----------.
Job enrichment; job variety
Job enlargement; job depth
Job enlargement; job scope(page no 85 on handout)
Job enrichment; job feedback
75. ---------- are an organization's objectives, and --------- are the

documented ways that organizations intend to meet those
objectives.
Goals; plans (page no 57 on handout)
Stated goals; real goals
Standing plans; single-use plans
Specific plans; directional plans
76. Which of the following is NOT one of the characteristics of well-

designed goals?
Goals should be written in terms of actions rather than outcomes. (page

no 62 on handout)
Goals should be measurable and quantifiable.
Goals should be challenging but attainable.
Goals should be communicated to all organizational members who need to know

about them.
MGT503

Mc100403601 Quiz # 2 (lec 1 to lec 18)

Problem solving
Decision making
Decision taking
Job analysis

Meeting its social obligation
Meeting social responsibilities
Being socially responsible
Paying affection to the bottom‐lines

ASEAN
SAARC
EU
NAFTA

Hospitals
Colleges
Factories
All of the given options

Diversity of alternative is available
Groups are perceived as more legitimate
Maximizes the chances of solution acceptance
Obstruct creativity and innovation

Planning
Organizing
Leading
Controlling

Authority
Unity of command
Unity of direction
order

Decrease initially but increased steadily
Increased
Decreased
Neither increased nor decreased

Contributing to social benefits in the name of goodwill
Just doing what the government says they have to do
Helping make society a better place for everyone to live
Adding to the cost of doing business

Informal rules and procedures
A well defined hierarchy of authority
Careers based on merit
A clear division of labour

Intense focus on the competition
Concern for continual improvement
Improvement in quality of everything the organization does
Accurate measurement

Increased worker motivation
Decreased worker specialization
Increase worker productivity
Decrease worker motivation

Technical
Conceptual
Communication
interpersonal

Top level managers
Middle level managers
Supervisors
Operational managers

Knowledge management
Globalization
The internet
Speed and quality
What is the term used to define the number of subordinates directly controlled by a
manager?
A: division management
B: departmentation
C: sphere of influence
D: investment span
E: span of management
2. Which management theorist is responsible for the motivation-hygiene theory?
A: Abraham Maslow
B: Dale Hawthorne
C: Peter Drucker
D: Frederick Herzberg
E: Dave Pelz
3. What kind of organizational structure combines a vertical chain of command with

horizontal reporting requirements?
A: line authority
B: matrix
C: functional
D: quality circle
E: line-and-staff
4. What is the name for a contract that expressly forbids an employee from joining a
union?
A: fixed-price contract
B: yellow-dog contract
C: blacklist contract
D: cost-reimbursement contract
E: unfair list contract
5. What kind of training program is most appropriate for a simple task?
A: on-the-job training
B: vestibule training
C: laboratory training
D: away-from-the-job training
E: job rotation
6. Which leadership theory suggests that management style should adapt itself to
changing circumstances?
A: autocratic theory
B: participatory theory
C: permissive theory
D: delegation theory
E: contingency theory
7. According to Abraham Maslow, the most elevated type of need is _____.

A: safety
B: esteem
C: self-actualization
D: physiological
E: social
8. Which of the following was NOT a result of the Wagner Act of 1935?
A: employers were forbidden from interfering with union activity.

B: the National Labor Relations Board was created.
C: a normal workweek was defined as 40 hours.
D: employers could no longer engage in collective bargaining with unions.
E: employers could no longer discriminate in hiring and firing based on union membership.
9. Which management concept suggests that low-importance decisions be handled by

subordinates, so that managers can focus on high-importance decisions?
A: management by exception
B: exclusionary management
C: inclusionary management
D: management by objective
E: participatory management
10. Which human resource document outlines the qualifications required for the
jobholder?
A: job announcements
B: job specification
C: job application
D: job description
E: job portfolio
Dear fellows!
Here is 100% correct solved M.C.Qs of principles of management mgt-503.
From lec. No (01to 22)
Key feature:
In every question I have gave the page number of handout. From where this
question is taken. So it is easy for you to also confirm it.
If you find a little mistake in this pls it is a humble request please informs me. So I
can improve it.
Lucky.jan077@gmail.com
Mc100200328@vu.edu.pk
Question No: 1 (Marks: s1) - Please choose one

Which of the following decision making techniques requires a panel of experts?
► Interacting group
► Delphi technique ( page no.48 on handout)
► Nominal group
► Brainstorming

Which of the following is an advantage of group decision-making?
► The group process takes less time

► Groupthink may occur
► More decision alternatives are generated ( page no.45 on handout)
► One person can dominate the group
Fifth Step in the rational decision making process is:
► Implementation of the alternative
► Analyzing alternatives ( page no.41 on handout)
► Developing alternatives
► Allocating weights to the criteria
Once a manager has identified a problem, the next step would be the identification
of:
► Discrepancies
► Decision criteria ( page no.41 on handout)
► Scenarios
► Factor weights
All of the following are the assumptions of rational decision making EXCEPT:
► Alternatives are known
► Possible outcomes known
► Optimal decision is possible
► Information is unknown (lec no 16.ppt slides)

A situation in which manager can make an accurate decision is called:
► Certainty ( page no.40 on handout)
► Uncertainty
► Risk
► Factual

The single EU currency will be called:
► Franc
► Franc-mark
► Pound
► Euro ( page no.36 on handout)

The customes, mores, values and demographic characteristics of the society in
which the organization function are called:
► The socio-cultural element ( page no.30 on handout)
► The legal-political element
► The economic element
► The international element

Systems that are not influenced by and do not interact with their
environment are :
► Open systems
► Close systems ( page no.25 on handout)
► Flexible systems
► Social systems
Abraham Maslow and Douglas are called:
► Administrative theorists
► Pre-classical theorists
► Classical theorists
► Behavioral theorists ( page no.20 on handout)
When management provides orderly personnel planning and ensures that
replacements are available to fill vacancies, it is called :
► Division of work
► Discipline
► Unity of command
► Stability of tenure of personnel( page no.19 on handout)
All of the following are the characteristics of Max Weber’s ideal
bureaucracy EXCEPT:
► Formalization of rules and procedures
► Impersonality in application of rules and sanctions
► Receiving orders from one superior only ( page no.18 on handout)
► Specialization of labor
Which type of managerial skill refers to the ability to analyze and diagnose
complex situations?
► Problem-solving
► Interpersonal
► Conceptual ( page no.12 on handout)
► Technical
Controlling contingent situation comes under which of the following roles?
► Spokesperson
► Monitor
► Leader
► Disturbance handler ( page no.08 on handout)
The role that involves symbolic nature duties is called:
► Interpersonal role ( page no.08 on handout)
► Managerial role
► Decisional role
► Informational role
To motivate the employees a manager should give them:
► Monetary Incentives
► Promotion
► Appreciation certificates
► All of the given options ( page no.88 on handout)
Which one of the following is the example of organization?
► Hospitals
► Colleges
► Factories
► All of the given options ( page no.03 on handout)

The science which studies the nature of things, particularly values and
ethics is called:
► Anthropology
► Philosophy ( page no.14 on handout)
► Economics
► Political sciences
Systems that interact with their environment dynamically are called:
► Close systems
► Open systems( page no.25 on handout)
► Flexible systems
► Social systems
Field of management that focuses on designing and implementing
computer based information systems for use by management is called:
► Principles of management
► Operations management
► Management information system ( page no.23 on handout)

All of the following are said to be the early advocates of Behavioral
viewpoints EXCEPT :
► Robert Owen
► Hugo Munsterberg
► Mary parker Follett
► Max Weber ( page no.20 on handout)
When management provides orderly personnel planning and ensures that
replacements are available to fill vacancies, it is called :
► Unity of command
► Stability of tenure of personnel ( page no.19 on handout)
► Division of work
► Discipline
EMU is abbreviation of:
► Economic and Monetary Union (page no.36 on handout)

► European and Monetary Union
► English Monetary Union
► European English Monetary Union
QUIZ
Choose the correct option.
(24) In general, entrepreneurs are better able than managers in a traditional

hierarchical organization to
• lead.
• organize.
• respond to a changing environment. ( page no 7 on handout)
• respond to a static environment.
(25)The belief that a firm's obligation goes beyond that required by law and economics,
and includes a pursuit of long-term goals that are good for society is known as
• social responsiveness.
• ethical responsibility.
• social responsibility. ( page no 32 on handout)
• social obligation
(26)The belief that a firm's obligation goes beyond that required by law and economics,
and includes a pursuit of long-term goals that are good for society is known as
• social responsiveness.
• ethical responsibility.
• social responsibility. ( page no 32 on handout)
• social obligation)
(27) The objective of TQM is to create an organization committed to continuous

_________
• Improvement. ( page no 24 on handout)
• Development
• Struggle
• a&b
(28) The process of assigning authority and responsibility to one’s subordinates to

manage a project is called
• centralization.
• supervision.
• delegation. ( page no 76 on handout)
• specialization.
(29) Time -and- motion study introduced by
• Henri Fayol
• Fredrick W. Taylor ( page no 17 on handout)
• Frank and Lillian Gilberth
• Adam Smith
(30) __________focused on the work or the job and how to do it better.
Scientific management ( page no 16 on handout)

Bureaucratic management
Classical management
Administrative management
(31) Strategic management entails all of the basic management functions:
Planning, organizing, leading, and controlling. ( page no 65 on handout)
Motivation, efficiency, authority and effectiveness.
Planning, bossing, controlling, and organizing.
Making things happen, meeting the competition, organizing the people and leading.
(32) Which of the following is not a part of strategy formulation?
Identifying the mission and strategic goals.
Conducting competitive analysis.
Developing specific strategies.
Carrying strategic plans. ( page no 65 on handout)
(33) Planning involves two important elements:
Goals and plans. ( page no 59ss on handout)
Organizing and controlling.
Lead and plans.
Staffing and leading.
(34) Strategic goals are concerned with :
Top level managers. ( page no 60 on handout)
Middle level managers.

First-Line Managers.
Non-managerial Employees.
(35) Tactical goals and plans typically involve time periods of _________.
1 year.
1 to 3 years. ( page no 57 on handout)
3 to 5 years.
More than 5 years.
(36) ______________are those targets or future end results set by lower management
that address specific, measurable outcomes required from the lower levels.
Strategic goals.
Tactical goals.
Operational goals. ( page no 57 on handout)
None of given options.
(37) MBO was first described by _________.
Peter Drucker. ( page no 63 on handout)
Henry Minzberg.
Henri Fayol.
Fredrick W. Taylor.
(38) A__________ is a prescribed series of related steps to be taken under certain

recurring circumstances.
Procedure. ( page no 58 on handout)
Plans.
Policy.
Project.
(39) Tactical plans tend to be_________ specific and concrete than strategic plans.
More. ( page no 57 on handout)
Less.
Lower.
None of given options
(40)A mission statement is a __________declaration of the basic, unique purpose.
Narrow.
Broad. ( page no 59 on handout)
Contracted.
None of given options.
41. __________ is the degree to which followers perceives someone as honest, competent, and
able to inspire.
Credibility ( page no 103 on handout)
Trust
Integrity
Consistency
42. Women leaders tend to adopt a more ____________than men do.
Autocratic
Democratic ( page no 104 on handout)
Directive
None of above mentioned
43 __________leadership is described as going beyond charisma with the ability to create and
articulate a realistic, credible, attractive vision of the future for an organization or
organizational unit that grows out of and improves on the present.
Charismatic
Transformational
Visionary ( page no 102 on handout)
None of above mentioned
44 ___________studied three leadership styles: autocratic, democratic, and laissez-faire.
Ohio State Studies
University of Michigan Studies
University of Iowa Studies ( page no 98 on handout)
Hawthorne studies
45. When a divisional structure is superimposed over a functional structure, the type of
structure that results is called a _________organization.
functional
divisional
matrix ( page no 80 on handout)
product
46. The rights inherent in a managerial position to give orders and expect them to be obeyed is
known as:
responsibility
span of control
authority ( page no 76 on handout)
accountability
47. An organization that groups activities according to women's footwear, men's footwear,
apparel, accessories, and leggings would use ___________ departmentalization.
functional
product ( page no 79 on handout)
customer
geographic
48. One of the following is characteristic of Democratic Leaders:
Unilateral decisions
Involve group in decision making ( page no 98 on handout)
Dictate work method
Participate only to answer question.

1. ____________skills are the skills necessary to accomplish
or understand the specific kind of work done in an
organization.
Ans:technical
2.
The final phase of the management process is_____________,
or monitoring the organization's progress toward its goals
Ans:controlling
2. Managers are often expected to engage in ceremonial or
symbolic activities, such as presenting awards and
holding retirement ceremonies. Which role do managers
fill in performing these activities?
Spokesperson
Liaison
Figurehead
Resource allocater
Disseminator
3. ________________ managers are responsible for hiring

and developing employees.
Ans:human resource
4. Managers need ___________ skills to communicate with,
understand and motivate both individuals and groups.
Ans;interpersonal
5. _____________, a part of the planning process, involves

selecting a course of action from a set of alternatives.
Ans:decision making
6. A manager that creates an organization's goals, overall
strategy, and operating policies would be performing
what level of management?
top management
middle management
first-line managemen
low-level management
. Store managers who oversee day-to-day operations of
their respective stores, hire operating employees to staff
them, and handle routine administrative duties would be an
example of what level of manager?
top manager
middle manager
first-line manager
low-level manager
9. __________ is the set of processes used to get members of
the organization to work together to further the interests
of the organization
Ans:leading
10. ______________ managers supervise and coordinate

the activities of operating employees.
Ans :first line
11. Jim is a manager who recently merged the
company's personnel and employee training departments
into a single human resources department. Which
management function has Jim performed?
Empowerment
Quality control
Leading
Organizing
Planning and decision making
12. __________ managers make up the relatively small
group of executives who manage the overall organization
Ans:top
13. Select the four decisional roles that the manager's

informational roles typically lead to:
Entrepreneur
Disturbance handler
spokesperson
Resource allocator
Negotiator
14.
Managers who spend too much time performing the
controlling function are likely to lead the organization away
from its goals.
True
False
14. __________________ managers are not associated
with any particular management specialty
Asn:administrative
15. __________ managers probably make up the largest
group of managers in most organizations.
Ans:middle
16. _______________ managers are concerned with

creating and managing the systems that create an
organization's products and services
Asn:operations
17. ___________ skills refer to the manager's abilities
both to effectively convey ideas and information to
others and to effectively receive ideas and information
from others.
Asn:communicational
18. By _______________, we mean making the right
decisions tand successfully iplementing them.
Ans:effective
19. ________ skills depend on the manager's ability to
think in the abstract.
Ans:conceptual
21.
Which one of the following is not one of the three
interpersanol roles inherent in a manager's job?
Spokesperson
figurehead
liaison
leader
22. Which one of the fo categories of resources used by an
organization.llowing is not one of the four
Information Resources
Human Resources
Physical Resources
Financial Resources
Intellectual Resources
23. Select the three informational roles that flow naturally

from the interpersonal roles of a manager:
Negotiator
Monitor
Disseminator
Spokesperson
Bookkeeper
24. Successful managers possess ________ skills, that
enable them to visualize the most appropriate response
to a situation.
Ans:diagnostic
25. Which of the following are the four basic activities
involved in management (check all that apply):
Decision Making
Leading
Organizing
Controlling
Planning
26. ___________ managers are responsible for such
activities as accounting, cash management, and
investments.
Ans:financial
27. A __________ manager is responsible for implementing
the policies and plans developed by top managers and
for supervising and coordinating the activities of lower-
level managers.
top
middle
first-line
low-level
28. Modern management has become almost completely a
science and almost not at all an art/
True
False
29. Which one of the following is not an example on an
organization:
Iowa State University
Municipal Employees
New York City
Royal Dutch/Shell Group
Susan's Corner Grocery Store
30. An organization that manufactures its product at the
lowest possible cost is by definition effective
True
False
31. ___________ skills refer to the manager's ability to
prioritize work, to work efficiently, and to delegate
appropriately.
Asn:line manager
32. ____________ skills refer to the manager's ability to
correctly recognize and define problems and
opportunities and to then select an appropriate course
of action to solve problems and capitalize on
opportunities
Ans:decision making
33. Which one of the following is not a level of
management:
First-line managers
Low-level managers
Top managers
Middle managers
34. In its simplest form, ______________ means setting an
organization's goals and deciding how best to achieve
them
Ans:planning
35. By __________, we mean using resources wisely and in
a cost-effective way.
Ans:effiecient
36.
In the spokesperson role, managers formally relay
information to people outside the organization
True
False
36. A(n) ______________ is group of people working
together in a structered and coordinated fashion to
achieve a set of goals
Company
Organization
Party
Committee
Business
38.
A ______________ manager works to get consumers and
clients to buy the organization's products or seervices
Ans:marketing
39. Which one of the following is not an example of human
resources
Faculty
Bookkeeper
Police Officers
Corporate executives
They are all human resources
40. _______________ is a set of activities directed at an
organization's resources, with the aim of achieving
organizational goals in an efficient and effective
manner.
Leading
Organizing
Decision making
Management
Controlling
MULTIPLE-CHOICE QUESTIONS
For each of the following choose the answer that most completely answers the question.
WHAT’S YOUR GLOBAL PERSPECTIVE?
28. In a global marketplace ____________.

a. the entire world is a marketplace
b. national borders are irrelevant
c. the potential for organizations to grow expands dramatically
d. all of the above
(d; moderate; p. 78)
29. In a global marketplace managers must _____________.

a. deal with economic, political, and cultural differences
b. expect competitors to suddenly appear at any time from any place
c. not take specific differences of a local environment into consideration
d. a and b
30. One reason for parochialism in the United States is that Americans tend to study _____________ in
school.
a. only English
b. only two languages
c. English and French
d. English and German
(a; easy; p. 79)
31. Which of the following describes the current state of the world use of languages?
a. Germans and Italians, unlike other Europeans, only speak their native language.
b. Americans tend to study many other languages in school.
c. Most Japanese begin learning English by their third year of high school.
d. Americans tend to think of English as the only international business language.
32. Ethnocentric views concentrate on their _____________.

a. home country
b. host country
c. world orientation
d. racial orientation
(a; easy; p. 80)
33. _____________ is a sign that Americans suffer from parochialism.

a. Multinationalism
b. Monolingualism
c. Geocentrism
d. Polycentrism
(b; moderate; p. 79)
34. Parochialism is ____________.

a. acceptance of diverse points of view
b. a desire to leave one’s own culture for a foreign culture
c. a tendency to view the world through a single perspective
d. recognition of diverse religious beliefs
(c; moderate; p. 79)
35. For U.S. businesses to have successful global management, which of the following statements
provides the best advice?
a. Americans should continue to push for the use of English only.
b. Stick to your own customs to avoid embarrassing incidents.
c. Make sure foreign businesspeople know you are American so they will speak to you in
English.
d. Develop an understanding of multicultural differences.
36. Which of the following is the least favorable attitude for an American manager who wishes to be
successful in international business?
a. multicultural
b. multicountry
c. ethnocentric
d. polycentric
(c; easy; p. 80)
37. Managers with a(n) ___________ attitude view every foreign operation as different and hard to
understand.
a. geocentric
b. ethnocentric
c. selfless
d. sensitive and caring
38. Successful global management requires an attitude that is best described as _____________ .
a. ethnocentric
b. parochial
c. polycentric
d. geocentric
(d; easy; p. 80)
39. A(n) __________ attitude is characterized by parochialism.

a. geocentric
b. nonlinguistic
c. selfless
d. ethnocentric
40. A(n) _____________ attitude is the view that host-country managers know the best practices for
running their operations.
a. ethnocentric
b. polycentric
c. geocentric
d. international
(b; easy; p. 80)
41. The geocentric attitude is a _____________ view.
a. national
b. world
c. culture-bound
d. narrow
42. _____________ management requires enhanced sensitivity to differences in national customs and
practices.
a. Ethnocentric
b. Polycentric
c. Global
d. Parochial
43. Successful global management requires ______________.

a. rigid application of home-country practices
b. enhanced sensitivity to differences in national customs and practices
c. Americanization of foreign managers
d. teaching English to foreign nationals
UNDERSTANDING THE GLOBAL ENVIRONMENT
44. The _____________ was created by the unification of 12 countries in Europe.

a. European Common Market
b. European Union
c. Western European Alliance
d. Trans-European Market (TEM)
45. The _____________ is a collection of countries that use a common currency.

a. European Common Market
b. European Union
c. Western European Alliance
d. Economic and Monetary Union (EMU)
(d; difficult; p. 82)
46. The principle reason for formation of the regional trading alliance in Europe was to reduce the
power of the United States and _________.
a. Canada
b. Mexico
c. Japan
d. Russia
47. The European Union covers ______________.

a. border controls, taxes, and subsidies
b. nationalistic policies and travel
c. employment, investment, and trade
d. all of the above
48. The single EU currency will be called the ____________.

a. franc
b. franc-mark
c. pound
d. euro
49. The European Union consists of ___________.

a. 12 countries
b. 15 countries
c. 12 countries with plans to add more
d. 25 countries with plans to add 2 more in 2007
50. Within the members of the North American Free Trade Agreement, trade has ___________ since
the treaty was signed.
a. decreased initially, but increased steadily
b. increased
c. decreased
d. increased in commodities, but decreased in manufactured goods
51. The primary motivation for joining the European Union was ______________.
a. to reduce the economic competitiveness with other parts of the world
b. to increase the political power of European countries in worldwide peace negotiations
c. to control tax exemptions within Europe and encourage intermember cooperation in
apprehending tax cheaters
d. to reassert their economic power against America and Japan
52. The North American Free Trade Agreement _________________.

a. includes Mexico, Canada, and the United States
b. includes Mexico, Brazil, and Columbia
c. reduced trade between the United States and Canada
d. reduced the economic power of Canada and the United States and increased the power of
Mexico
(a; easy; p. 82)
53. Thirty-six countries in the Caribbean region, South America, and Central America are developing a
regional trade alliance called __________.
a. NAFTA
b. FTAA
c. Mercosur
d. ASEAN
(b; difficult; p. 83)
54. The overall effect of the North American Free Trade Agreement was to ________________.
a. eliminate the need for import licensing
b. increase the customs user fees while reducing tariffs
c. reduce trade between Mexico and the United States
d. increase trade between the United States and Venezuela
(a; moderate; p. 83)
55. International businesses have been around since about what date?
a. the fifteenth century
b. the seventeenth century
c. the nineteenth century
d. the twentieth century
(c; difficult; p. 84)
56. Multinational corporations (MNCs) have only become commonplace since approximately what
date?
a. mid-1960s
b. mid-1970s
c. 1945
d. mid-1980s
57. The Association of Southeast Asian Nations includes ________________.

a. the members of the European Union and India
b. the members of the North American Free Trade Agreement and the European Union
c. the countries of the former Soviet Union
d. none of the above
58. Multinational corporations are known for _______________.

a. ethnocentric attitudes
b. polycentric attitudes
c. multicentric attitudes
d. having their holdings in one country
59. Transnational corporations _________________.

a. maintain operations in multiple counties, but do not allow managers in each country to make
their own decisions
b. utilize ethnocentric attitudes in financial decisions, but favor polycentric views in human
resources issues
c. utilize decentralization to make decisions in management in local countries
d. follow the tastes, preferences, and values of the home country
60. When an organization drops its structure based on countries and reorganizes according to
industries, it is pursuing a global organizational operation known as ___________.
a. ethnocentrism
b. polycentrism
c. borderless organization
d. multinational organization
61. Borderless organizations are developed to _________________.

a. increase efficiency
b. increase effectiveness
c. become more aggressive in international sales
d. all of the above
62. A borderless organization __________________.

a. utilizes ethnocentrism
b. focuses its efforts on a polycentric attitude
c. globalizes by eliminating structural divisions that impose artificial geographical barriers
d. is another version of a multinational organization
63. Which of the following is a basic definition of a multinational corporation?

a. a company that maintains significant operations in at least two different countries
b. a company that maintains significant operations in at least two different countries but is based
in one home country
c. a company that maintains significant operations in at least two different countries and has
multiple home bases
d. a company that does business and pays taxes in at least two countries
64. Which of the following is the basic difference between multinational corporations and transnational
corporations?
a. Multinational corporations typically do business with more countries than transnational
corporations do.
b. Transnational corporations are run by the parent company but must be owned by a local,
national company.
c. Decision making in transnational corporations takes place locally rather than from the home
country.
d. Multinational corporations pay more in taxes than transnational corporations do.
65. Which of the following is not a feature of a transnational corporation?

a. decision making takes place at the local level.
b. nationals are typically hired to run operations in each country.
c. marketing strategies are tailored to each country’s culture.
d. products are manufactured only in the local country.
(d; easy; p. 84)
66. Which of the following types of global organizations reflects the polycentric attitude?
a. multinational
b. transnational
c. polycentric
d. regional
HOW ORGANIZATIONS GO GLOBAL

67. How many stages are there in an organization’s evolution into a global organization?
a. one
b. two
c. three
d. five
(c; easy; p. 85)
68. In an attempt to be more aggressive, a company might export and import more. This is referred to
as the ____________.
a. Stage I of doing business globally
b. Stage II of doing business in a polycentric manner
c. Stage III of business incorporation
d. abnormal operations for an geocentric organization
(a; difficult; p. 85)
69. In Stage II of doing business globally, an organization would ________________.

a. begin importing and exporting
b. begin importing, but not exporting goods
c. send employees to foreign countries as salespeople or hire brokers in other countries
d. keep employees in the home country
70. In Stage III of doing business globally, an organization would utilize ______________.
a. licensing and franchising
b. strategic alliances
c. joint ventures
d. all of the above
71. Which of the following characterizes the first stage of an organization’s global evolution?
a. exporting its products to other countries
b. cross-culturally training its managers
c. hiring foreign brokers to represent the organization’s product line
d. sending domestic employees on regular foreign business trips
72. Which of the following characterizes Stage II of an organization’s global evolution?

a. exporting its products to other countries
b. cross-culturally training its managers
c. hiring foreign representation
d. licensing another firm to use its brand name
73. Joint ventures are also termed ____________.

a. licenses
b. franchises
c. foreign subsidiaries
d. strategic alliances
74. Creating a strategic alliance occurs during which stage of an organization’s global evolution?
a. I
b. II
c. III
d. IV
(c; easy; p. 85)
75. A domestic firm and a foreign firm sharing the cost of developing new products or building
production facilities in a foreign country is called a ____________.
a. franchising agreement
b. joint venture
c. foreign subsidiary
d. brokering agreement
76. Which of the following characterizes Stage III of an organization’s global evolution?
a. Cross-culturally training its managers
b. Sending domestic employees on regular foreign business trips
c. Hiring foreign brokers to represent the organization’s product line
d. Management may create a joint venture
77. _____________ present(s) the greatest risk to an organization going international.

a. Joint ventures
b. Strategic alliances
c. Licensing
d. Foreign subsidiaries
MANAGING IN A GLOBAL ENVIRONMENT
78. Which of the following is not listed by your textbook as an area of significant challenge for an
American manager working in a foreign country?
a. legal environment
b. economic environment
c. cultural environment
d. religious environment
79. From an economic standpoint, a threat to the global manager is _________________.

a. widely fluctuating inflation rates in foreign countries
b. marginal revenues exceeding marginal costs
c. a stable exchange rate between currencies in various countries
d. all of the above
(a; easy; p. 87)
80. Compared to many other countries, the U.S. legal–political environment is considered
____________.
a. radical
b. stable
c. unstable
d. fixed
81. Compared to many other countries, changes to the U.S. legal–political environment are considered
___________.
a. very fast and effective
b. fast, but not efficient
c. radical
d. slow
82. The reason that a nation’s cultural differences are the most difficult to gain information about is
because __________________.
a. people tend to be sensitive about their own culture
b. providing this information to foreign organizations reduces a competitive business advantage
c. there is little written on the issue
d. “natives” are least capable of explaining the unique characteristics of their own culture
83. According to the textbook, the most valuable framework to help managers better understand
differences between national cultures was developed by ______________.
a. Milton Friedman
b. Michael Porter
c. Geert Hofstede
d. Abraham Maslow
84. _____________ is a cultural dimension in which people expect others in their group to look after
them and protect them when they are in trouble.
a. Power distance
b. Collectivism
c. Quantity of life
d. Uncertainty avoidance
(b; easy; p. 90)
85. Which of the following would you find in a country with a high power distance?
a. Society accepts narrow differences in organizations.
b. Title carries little power, but status power is high.
c. There is little respect for those in authority.
d. In a meeting, organizational representatives have widely different status and titles.
86. _____________ is a cultural measure of the degree to which people will tolerate risk and
unconventional behavior.
a. Power distance
b. Uncertainty avoidance
c. Quantity of life
d. Quality of life
(b; easy; p. 90)
87. According to the textbook, organizations in which of the following cultures are likely to have
formal rules and little tolerance for unusual ideas and behaviors?
a. high power distance
b. low power distance
c. high uncertainty avoidance
d. low uncertainty avoidance
(c; easy; p. 90)
88. In a society with a large ______________, titles, rank, and status carry a lot of weight.
a. collectivism
b. power distance
c. compassionate conservatism
d. uncertainty avoidance
89. _____________ is a national culture attribute describing the extent to which societal values are
characterized by assertiveness and materialism.
a. Power distance
c. Quantity of life
d. Quality of life
90. _____________ is a national culture attribute that reflects the emphasis placed on relationships and
concern for others.
a. Power distance
c. Quantity of life
d. Quality of life
91. Which of the following is most like the United States in terms of power distance, uncertainty
avoidance, and quantity-of-life dimensions?
a. Singapore
b. Great Britain
c. Portugal
d. Pakistan
(b; easy; p. 90)
SCENARIOS AND QUESTIONS

For each of the following choose the answer that most completely answers the question.
First Visit Abroad (Scenario)
Bill Sanderson is halfway over the Atlantic and is excited about his first European business trip. His goal
is to scout out potential locations and basically provide input on how the company should proceed with
expansion abroad. There are many options, including maintaining the business’ head office in the
United States and sending over company representatives when necessary or developing a separate
company in Europe and hiring locals as managers. In any case, he is confident about this trip but is
somewhat concerned about the strange habits and foreign languages (if only they would just speak
English like everyone else!).
92. Bill’s tendency to view the world only through his U.S.-based eyes and perspectives is an
international business problem known as which of the following?
a. nondiversity
b. discrimination
c. parochialism
d. monolingualism
93. If Bill’s company decided to open another company in France but maintain the base in the United
States, it would be considered _________________.
a. a transnational corporation
b. an international company
c. a regional trade alliance
d. a multinational corporation
94. If Bill’s company decides to open a completely new operation in Germany, tailoring the company
to local customs and marketing strategies and hiring local managers, they would be considered
_______________.
a. a transnational corporation
b. an international company
c. a regional trade alliance
d. a multinational corporation
95. If Bill’s company eliminated country-designated locations and reorganized based on industry
groups, it would best be considered a __________________.
a. borderless organization
b. transnational organization
c. global business alliance
d. multinational corporation
96. If Bill is to become successful as a global manager, he must _______________.

a. attempt to change other cultures to American ways
b. learn and accept other cultures
c. compete internationally but remain in the United States
d. learn to manipulate other business cultures
Jane wants to expand her career opportunities in international operations of a company. She is 19 years
old and currently attends a university. She has only lived in her current country and has never traveled to
foreign countries.
97. Jane decides to enroll in a foreign language class to help her overcome her ______________.
a. parochialism
b. ethnocentric attitude
c. monolingualism
d. polycentric attitudes
98. In talking with her advisor at the university, Jane decides she probably has a(n) __________
attitude, as she has never traveled abroad and only relates well to people from her home country.
a. parochialistic
b. polycentric
c. ethnocentric
d. geocentric
99. Jane becomes involved with an international student association to give her experiences that will
allow her to understand the views of students from other countries. She is trying to become more
_________ in her attitude.
a. parochialistic
b. polycentric
c. ethnocentric
d. geocentric
100. Jane selects a class that helps to learn about licensing, franchises, strategic alliances, and joint
ventures. She hopes to find an employer who is or plans to move toward being in _________ of
their global business operations.
a. Stage I
b. Stage II
c. Stage III
d. Stage IV
101. In the university catalog she finds a class description that includes the acronyms, EU, NAFTA,
FTAA, and ASEAN. These refer to ________________.
a. regional trade alliances
b. foreign airlines
c. soccer teams in Europe
d. new multinational corporations
Theodore and James have formed an entrepreneurial venture to develop software for banks and other
financial institutions. Their company is growing, but in looking for opportunities in the future, they
decide to explore international operations.
What is Your Global Perspective?

102. Theodore and James feel that people in foreign countries will not have the skills, expertise,
knowledge, or experience to write, sell, or install the software. They have a(n) _________ attitude.
a. self-righteous
b. ethnocentric
c. polycentric
d. geocentric
103. After Theodore and James began their company’s operations in the United States, they realized that
a regional trade agreement existed that would allow them to avoid tariffs in ___________.
a. Japan and Germany
b. Europe
c. Western, but not Eastern Europe
d. Mexico and Canada
104. The international operations in this firm grew. Theodore and James have come to see that
decentralized management using foreign nationals to run operations in their home countries works
well. Their firm has developed into a(n) ____________ organization.
a. transnational
b. multinational
c. borderless
d. international
105. A new and exciting opportunity has appeared that enables Theodore and James to form a joint
venture with an insurance company in Japan. This will move their firm into a global role of a
___________ organization.
a. Stage I
b. Stage II
c. Stage III
d. multinational
106. Theodore and James decide to allow a firm in Europe to use the rights to their software, its brand name,
and software specifications in return for a lump-sum payment. This agreement is known as a
________________.
a. strategic alliance
b. licensing agreement
c. franchise
d. foreign subsidiary
UNDERSTANDING THE GLOBAL ENVIRONMENT
A Foreign Alliance Talk (Scenario)
As manager of the international department for your company, you have been asked by the local Chamber
of Commerce to deliver a speech on foreign trade. The Chamber president even goes so far as to say “and
be sure to include the EU, NAFTA, and all that stuff because we’re afraid that Ross Perot is right—all the
good jobs will leave the United States.” As you pour over your notes, you are trying to decide what is the
best information you can present in the allotted half hour.
107. One of the hottest topics of your talk will be NAFTA, an issue that has the attention of the local
business community. You realize that the results are not in, but one outcome that seems certain is
that ______________.
a. the United States will definitely come out the worst of the three nations
b. Canada will profit the most in this arrangement
c. the expansion of NAFTA would be essential to North America’s future competitiveness and
economic power
d. U.S. high-tech companies, such as computer manufacturers, will be hit hard
108. You will close by giving them a likely view of the future of NAFTA, which suggests that
_______________.
a. it will likely disband by the year 2010
b. it is expected to merge with the EU by 2020
c. other Latin American counties will soon become partners
d. Cuba is the next partner in NAFTA
MANAGING IN A GLOBAL ENVIRONMENT
A Different View (Scenario)
John has done well in his company. In only 5 years, he has risen to the position of divisional manager.
However, he knows that in order to rise to the level of senior management, he needs to spend some time
managing abroad in his company’s foreign subsidiaries. Although he has traveled to foreign countries on
business and vacations, he has never lived abroad and wonders what differences he would find. He is
considering applying for a new foreign-based position, but first wants to learn about some basic
differences between managing in the United States and managing in a foreign country. He researched the
topic of international management and found many helpful facts about countries and their people.
109. John found out that, compared to managers in many other countries, U.S. managers are accustomed
to legal and political systems that are ____________.
a. stable
b. fixed
c. boring
d. extreme
(a; easy; p. 87)
110. John found out that wealthier nations, such as the United States, tend to ______________.
a. have high uncertainty avoidance
b. be individualistic
c. be collectivist
d. have large power distance
111. John also found out that in some countries, such as Venezuela, titles, rank, and status carry a lot of
weight. These countries have a large _________________.
a. uncertainty avoidance
b. quality of life
c. quantity of life
d. power distance
112. John knew that he did not want to manage in a country where the people have high anxiety,
nervousness, and stress. He will, therefore, try to avoid countries characterized as having high
_______________.
a. uncertainty avoidance
b. quality of life
c. quantity of life
d. power distance
The European Expansion (Scenario)
You have been hired by a company to look at the ways to best move the company into the European
market but you have to first determine what kind of company you are dealing with.
113. If the company that has hired you is primarily used by manufacturing organizations, it is a
___________.
a. licensing company
b. franchising company
c. strategic alliance
d. joint venture
114. If the company that has hired you is primarily used by service organizations, it is a
______________.
d. joint venture
115. If the company that has hired you is really a partnership between an organization and a foreign
company in which both share resources and knowledge in developing new products, than it is a
_______________.
d. joint venture
The Overseas Assignment (Scenario)
Christopher has a degree in business administration and has worked for a major corporation for 5 years.
He is offered a chance to work in another country.
116. Through research on the Internet, Christopher finds that in this country’s social framework,
people are expected to look after others in their family (or organization) and protect them when
they are in trouble. This society tends to support ______________.
a. collectivism
b. parochialism
c. individualism
d. monotheism
117. This new country’s people are favorably influenced by Christopher’s job title, and the status
given by his experience of having worked in the home office for 5 years. This country has a large
_______________.
a. interest in attracting foreign executives
b. sense of uncertainty avoidance
c. uncertainty avoidance
d. power distance
118. Through talking to executives in the international division, Christopher realizes that his home
country has the highest individualism, low power distance and uncertainty avoidance, and a high
quantity of life. He probably lives in _____________.
a. Great Britain
b. Japan
c. United States
d. Canada
ESSAY QUESTIONS
119. In a short essay, define parochialism. Next, discuss why parochialism is a problem for U.S.
managers and discuss reasons why it is important to overcome parochialism in today’s business
environment.
Answer
Parochialism is when a person views the world solely though his or her own eyes and perspectives.
People with a parochial attitude do not recognize that other people have different ways of living and
working. Parochialism is a significant obstacle for many managers working in a global business
world. If managers fall into the trap of ignoring foreign values and customs and rigidly apply an
attitude of “ours is better than theirs” to foreign cultures, they will find it difficult to compete with
other managers and organizations around the world that are seeking to understand foreign customs
and market differences.
(easy; p. 79)
120. In a short essay, list and discuss the three attitudes managers might have toward international
business.
Answer
a. Ethnocentric attitude—the parochialistic belief that the best work approaches and practices
are those of the home country. Managers with an ethnocentric attitude believe that people in
foreign countries do not have the needed skills, expertise, knowledge, or experience to make
the best business decisions as people in the home country do. They wouldn’t trust foreign
employees with key decisions.
b. Polycentric attitude—the view that managers in the host country know the best work
approaches and practices for running their business. Managers with a polycentric attitude
view every foreign operation as different and hard to understand. Thus, these managers are
likely to leave their foreign facilities alone and let foreign employees figure out how best to
do things.
c. Geocentric attitude—this is a world-oriented view that focuses on using the best approaches
and people from around the globe. Managers with this type of attitude believe that it’s
important to have a global view both at the organization’s headquarters in the home country
and in the various foreign work facilities. Major issues and decisions are viewed globally by
looking for the best approaches and people regardless of origin.
(moderate; p. 80)

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Dear fellows!

Here is 100% correct solved M.C.Qs of principles of management mgt-503.

Question No: 1 ( Marks: 1 ) - Please choose one

► The study of people in relation to their fellow human beings (page no 14 on

Question No: 2 ( Marks: 1 ) - Please choose one

Question No: 4 ( Marks: 1 ) - Please choose one

Question No: 6 ( Marks: 1 ) - Please choose one

Question No: 8 ( Marks: 1 ) - Please choose one

Question No: 10 ( Marks: 1 ) - Please choose one

► Positive entropy and synergy

Question No: 12 ( Marks: 1 ) - Please choose one

Question No: 13 ( Marks: 1 ) - Please choose one

Question No: 14 ( Marks: 1 ) - Please choose one

Question No: 15 ( Marks: 1 ) - Please choose one

Question No: 16 ( Marks: 1 ) - Please choose one

Question No: 18 ( Marks: 1 ) - Please choose one

► Criticism is not allowed(page no 39 on handouts)

► Ideas should be radical

► Managing Diversity(page no 13 on handout)

25.A manager in a manufacturing company attempts to establish a

► Total Quality Management(page no 24 on handout)

►North American Free Trade Agreement(page no 36on

Which of the following is NOT one of Fredrick Taylor's four principles of

The managerial functions according to Fayol were :

Which of the following management perspective focuses on decision

Mega environment is also called:

Question No: 35 ( Marks: 1 ) - Please choose one

Environment made up of specific outside elements within which an

Mega environment, that includes the attitudes, values, norms, beliefs,

► The socio-cultural element(page no .30 on handout)

Question No: 37 ( Marks: 1 ) - Please choose one

Question No: 38 ( Marks: 1 ) - Please choose one

A choice made from two or more alternatives is called:

Question No: 39 ( Marks: 1 ) - Please choose one

Most of the time lower level management of organizations have to deal

When an organization encounters a serious problem which needs to be

Which of the following refers to the concentration of decision authority at

‘Break-even Analysis’ is a means of earning profitable operations of the

Which of the resource allocation technique gives more emphasis to

Question No: 44 ( Marks: 1 ) - Please choose one

All of the following are the parts of organization’s external environment,

(45) In general, entrepreneurs are better able than managers in a traditional

respond to a changing environment. (page no 7 on handout)

respond to a static environment

Middle managers coordinate the work of supervisors.

Middle managers implement the objectives and plans of top management.

The number of middle managers in the most organizations is increasing .

Operatives can report directly to middle managers.

47. -------------- involves cultivating a learning culture where organizational

Knowledge management . (page no 24 on handout)

None of the given options

48. Mr. A. is a manager in a manufacturing company, he attempts to

Total Quality Management . (page no 24 on handout) objective of tqm

Management of Information System

Safety . (page no 90 on handout)safty needs pertain to the desire to be

Theory Y manager . (page no 91 on handout)

All of the above

Outputs . (page no 25 on handout)

Fredrick Winslow Taylor. . (page no 16 on handout)

None of the given options

53. --------------- searches organization and its environment for opportunities

Entrepreneur . (page no 8 on handout)

55. ---------------- is the final step in the decision-making process.