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Principles of Business - Objective 2.02
Management & Leadership Review Questions
71
Business
Not Applicable
03/23/2011

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Term
John is responsible for using the people and resources at his disposal to help his company accomplish their goals. Which of the following job titles best describes John’s role in his company?
a. Supervisor
b. Chief Executive Officer
c. Chief Financial Officer
d. Manager
Definition
Manager
Term
Dave works for a local textile company. He is responsible for analyzing information and setting goals for the company. Which of the following management functions best describes Dave’s responsibility?
a. Staffing
b. Planning
c. Implementing
d. Organizing
Definition
Planning
Term
Jackson works for a local fast food restaurant. He is responsible for obtaining employees to work at the restaurant; as well as training and paying the salaries of the employees. Which of the following management functions best describes Jackson’s responsibility?
a. Staffing
b. Planning
c. Implementing
d. Organizing
Definition
Staffing
Term
Bryce is responsible for scheduling all of the employees at a local manufacturing facility. Proper scheduling is important for the facility to perform optimally. Which of the following management functions best describes Bryce’s responsibility?
a. Staffing
b. Planning
c. Implementing
d. Organizing
Definition
Organizing
Term
Which of the following management positions is NOT associated with one of the three major management levels?
a. Executive
b. Staff Manager
c. Mid-Manager
d. Supervisor
Definition
Staff Manager
Term
Which of the following positions is responsible for the direction and success of an entire business?
a. Executive
b. Staff Manager
c. Mid-Manager
d. Supervisor
Definition
Executive
Term
Which of the following management positions takes the plans developed by company executives and makes a specific plan for their portion of the business?
a. Executive
b. Staff Manager
c. Mid-Manager
d. Supervisor
Definition
Mid-Manager
Term
Which of the following management positions is responsible for overseeing the daily operations of a business?
a. Executive
b. Staff Manager
c. Mid-Manager
d. Supervisor
Definition
Supervisor
Term
Which of the following terms best describes the manner in which a manager treats and involves employees in a business?
a. Mixed Management
b. Strategic Management
c. Management Style
d. Tactical Management
Definition
Management Style
Term
Xavier is the manager of a local marketing firm. His boss has assigned him to oversee a group of new employees as they complete a new marketing plan for a very important client. Which management style should Xavier use when managing the group of new and inexperienced employees?
a. Mixed Management
b. Strategic Management
c. Management style
Definition
Tactical Management
Term
Vanessa received a promotion at work. She is now the new manager at her local Apple Store. Vanessa has worked at the store for several years and knows that she has very skilled and experienced employees. Which management style should Vanessa use when managing her skilled and experienced employees?
a. Mixed Management
b. Strategic Management
c. Management style
d. Tactical Management
Definition
Strategic Management
Term
Which of the following statements regarding tactical management is FALSE?
a. Tactical managers make major business decisions
b. Tactical managers stay in close contact with employees
c. Tactical managers allow employees to make major business decisions
d. Tactical managers determine how a task should be completed
Definition
Tactical managers allow employees to make major business decisions
Term
Which of the following statements regarding strategic management is FALSE?
a. Strategic managers involve employees in decision making
b. Strategic managers assign direct tasks to employees
c. Strategic managers allow employees to work without direct supervision
d. Strategic managers seek advice from employees
Definition
Strategic managers assign direct tasks to employees
Term
Which of the following requires a manger to use a tactical management style?
a. Employees are experienced
b. Employees are not motivated
c. Employees are responsible
d. Employees are skilled
Definition
Employees are not motivated
Term
Which of the following requires a manger to use a strategic management style?
a. Tasks must be completed in a short amount of time
b. Tasks are assigned to inexperienced employees
c. Tasks are assigned to temporary or part-time employees
d. Tasks are routine and can be completed without challenge
Definition
Tasks are routine and can be completed without challenge
Term
Roberto is the manager of a local auto parts store. He manages a diverse group of experienced and inexperienced employees that require various treatment and supervision to optimize the efficiency of his store. Which management style is best suited to manage the diverse group of experienced and inexperienced workers?
a. Mixed Management
b. Strategic Management
c. Management style
d. Tactical Management
Definition
Mixed Management
Term
Which of the following is NOT one of the five management functions?
a. Planning
b. Producing
c. Implementing
d. Controlling
Definition
Producing
Term
Which level of management is responsible for planning and controlling the business?
a. Executive
b. Staff Manager
c. Mid-Manager
d. Supervisor
Definition
Executive
Term
Which of the following is NOT a reason why managers establish employee teams?
a. Teams encourage develop management skills
b. Teams provide management experience
c. Teams promote employee responsibility
d. Teams establish employee authority
Definition
d. Teams establish employee authority
Term
Which of the following statements regarding management is TRUE?
a. Managers should use strategic management rather than tactical management
b. Managers should use tactical management rather than strategic management
c. Entrepreneurs who start new businesses are not managers
d. Small Business owners that develop new ideas are managers
Definition
Small Business owners that develop new ideas are managers
Term
Which form of management ensures that business employees are available, productive, paid, and satisfied with their work?
a. Accounting
b. Management
c. Union
d. Human Resources
Definition
Human Resources
Term
Which of the following is NOT a major function of the human resources manager?
a. Planning & Staffing
b. Compensation & Benefits
c. Organizing & Controlling
d. Performance Management
Definition
Organizing & Controlling
Term
Jim was recently laid off from his job. He is actively pursuing employment opportunities that will allow him to work for a profitable company as long as the company is satisfied with his performance. What employment classification will allow Jim to remain employed as long as the company remains profitable and satisfied with his performance?
a. Full-time
b. Permanent
c. Temporary
d. Part-time
Definition
Permanent
Term
Ryan recently graduated from high school and will be leaving for college in six months. He needs to earn money to help pay for his college expenses, so he applies for a job that would employee him for the six months before going to college. What employment classification will allow Ryan to remain employed for a specific time?
a. Full-time
b. Permanent
c. Temporary
d. Part-time
Definition
Temporary
Term
An employee to whom a company makes a long-term commitment is classified as which type of employee?
a. Full-time
b. Permanent
c. Temporary
d. Part-time
Definition
Permanent
Term
Michael is the manager of a local ice cream shop. He is currently working an average of 50 hours per week in order to keep up with the demands of the shop. What employee classification identifies company employees that work more than 30 hours per week?
a. Full-time
b. Permanent
c. Temporary
d. Part-time
Definition
Full-time
Term
Madelyn is the receptionist at a local hair salon. She is currently enrolled in college and is only able to work an average of 24 hours per week. What employee classification identifies company employees that work less than 30 hours per week?
a. Full-time
b. Permanent
c. Temporary
d. Part-time
Definition
Part-time
Term
Identifying the duties and responsibilities of a specific job is one of the most important aspects of staffing a company. In order to attract applicants for a job, the human resources manager must provide an accurate description of the specific duties and responsibilities of that job. Which function allows the human resources manager to study the details of a specific job in order to provide applicants with an accurate job description?
a. Compensation
b. Job analysis
c. Orientation
d. Benefits
Definition
Job analysis
Term
Which of the following statements regarding staffing is FALSE?
a. Companies should interview everyone that applies for a job
b. Companies should interview only the most qualified applicants
c. Companies should interview applicants after contacting references
d. Companies should interview applicants after validating the application
Definition
Companies should interview everyone that applies for a job
Term
Staffing is one of the most important aspects of human resource management. Without employees a company cannot be profitable. Most human resource managers begin the staffing process by collecting ___________________________.
a. Criminal Records
b. Employment Applications
c. Medical Records
d. Résumés
Definition
Employment Applications
Term
The final step in the staffing process is to help new employees get a good start in the company. Before starting a new job, most employees will meet with the human resources specialist in order to complete all required employment documentation and to receive training. This final step in the staffing process is called ____________________.
a. Orientation
b. Evaluation
c. Compensation
d. Promotion
Definition
Orientation
Term
The main reason people work is to earn money. The amount of money that a person earns for their performance as an employee is called ______________________.
a. Benefits
b. Incentives
c. Compensation
d. Promotion
Definition
Compensation
Term
Employees can be compensated for their performance in multiple ways. Most compensation is made in the form of direct payments of money to an employee for the work that has been completed. This form of compensation is called ___________________.
a. Benefits
b. Salary & Wages
c. Incentives
d. Bonuses
Definition
Salary & Wages
Term
Employees can be compensated for their performance in multiple ways. Employees are often compensated with various types of insurance, bonuses, and vacation time. This form of indirect compensation is called ___________________.
a. Benefits
b. Salary and wages
c. Compensation
d. Promotion
Definition
Benefits
Term
What is the average percentage of wages that an employee spends on benefits?
a. Under 5%
b. 10% - 20%
c. 20% - 40%
d. Over 40%
Definition
20% - 40%
Term
Dwight was recently hired as painter for a local construction company. The company has agreed to pay him $15.00 for each hour of painting that he completes. Which compensation method allows Dwight to be compensating on an hourly rate?
a. Benefits
b. Straight salary
c. Piece rate
d. Time wage
Definition
Time wage
Term
Mr. Lopez is a science teacher at Midway High School. Each month, his pay check is directly deposited into his checking account in the amount of $2,700. Which compensation method allows Midway High School to compensate Mr. Lopez for his work on a monthly basis?
a. Benefits
b. Straight salary
c. Piece rate
d. Time wage
Definition
Straight salary
Term
Colleen is a sales associate at a local cosmetic supply store. In addition to her regular wages, she gets 6% of her weekly sales added to her wages. Which compensation method allows Colleen to earn a percentage of her weekly sales?
a. Commission
b. Incentive system
c. Piece rate
d. Base plus incentive
Definition
Commission
Term
Jethro works at a Ford manufacturing facility. He builds the engines that are later installed in all Ford Motor Vehicles. In addition to his regular wages, he earns an extra 8% for each engine that he successfully builds. Which compensation method allows Jethro to earn additional income for each unit that he produces for Ford Motor Vehicles?
a. Commission
b. Incentive system
c. Piece rate
d. Base plus incentive
Definition
Piece rate
Term
Alejandro is a software developer for Microsoft. In addition to his salary, he also earns 2.7% from the profits earned by Microsoft each year. Which compensation method allows Alejandro to earn additional income based on the profitability of Microsoft?
a. Commission
b. Incentive system
c. Piece rate
d. Base plus incentive
Definition
Base plus incentive
Term
Human resource managers are able to increase profits by encouraging commitment, team work, and effective customer service. What incentive is given to many company employees to encourage them to increase company profit?
a. Commission
b. Profit Sharing
c. Piece Rate
d. Insurance
Definition
Profit Sharing
Term
As the cost of employee benefits increases, many human resource departments are allocating a certain amount of money to each employee that may be used to purchase preferred benefits. Allocating money to pay for preferred benefits is a/an:
a. Commission
b. Incentive system
c. Cafeteria plan
d. Base plus incentive
Definition
Cafeteria plan
Term
Nichole is the human resources manager for Kobalt Tools. She recently developed a new procedure and form for measuring the performance of all company employees. Measuring the performance of company employees addresses which aspect of performance management?
a. Evaluation
b. Promotion
c. Transfer
d. Termination
Definition
Evaluation
Term
Michael recently had his monthly performance evaluation. His manager has scheduled a meeting with him to discuss the evaluation results next week. Discussing the results of an evaluation with an employee addresses which aspect of performance management?
a. Evaluation Meeting
b. Evaluation Speech
c. Evaluation Discussion
d. Evaluation Conference
Definition
Evaluation Conference
Term
After being a sales associate at Wal-Mart for three years, Mary Ann was recently named the new assistant manager of her store. Which aspect of performance management explains Mary Ann’s advancement in the company?
a. Evaluation
b. Promotion
c. Transfer
d. Termination
Definition
Promotion
Term
Bradley has assembled desktop computers for 10 years. His employer recently asked him to work at their new television facility in order to increase production of the company’s latest product. Which aspect of performance management assigns an employee to another job that allows them to use their skills to benefit the company?
a. Evaluation
b. Promotion
c. Transfer
d. Termination
Definition
Transfer
Term
Anthony is employed at Harris Teeter. He has been late for work three times since the company hired him as a cashier last month. Harris Teeter has decided to end their employment relationship with Anthony because he is violating the company tardy policy. Which aspect of performance management ends an employment relationship?
a. Evaluation
b. Promotion
c. Transfer
d. Termination
Definition
Termination
Term
Jason was terminated by his employer for sending threatening emails to another company employee. Terminating an employee because of inappropriate behavior is called:
a. Layoff
b. Discharge
c. Transfer
d. Dismissal
Definition
Discharge
Term
Ford Motor Company lost more than $2.6 million in revenue last year. In order to save money on operating expenses, the company has decided to temporarily terminate 3,500 employees across the United States. Terminating an employee due to changing business conditions is called:
a. Layoff
b. Firing
c. Discharge
d. Transfer
Definition
Layoff
Term
All of the following are effective sources for locating prospective employees EXCEPT:
a. Newspaper Advertisements
b. Career Fairs
c. High School Reunions
d. Employment Agencies
Definition
High School Reunions
Term
The success of a manager relies heavily on their ability to motivate individuals and groups to accomplish important goals. Which term describes the ability to motivate people in order to accomplish goals?
Definition
Leadership
Term
The manager at a local restaurant learns that one of her waiters has had a death in his family. When the waiter arrives for his shift, the manager expresses her condolences to him and insists that he take several days off to mourn the loss of his family member. What leadership characteristic is the manager demonstrating by respecting the feelings and needs of her employee?
Definition
Understanding
Term
Sebastian was recently promoted to a management position. The position requires him to work alongside many of his employees. Which term describes the ability to get along with and work well with different people?
Definition
Human Relations
Term
Which of the following is NOT an important human relations skill needed by leaders?
a. Self Understanding
b. Communication
c. Monitoring
d. Team Building
Definition
Monitoring
Term
Abigail contacted a manager that works for another company because she needed advice about influencing her employees. What type of communication describes communication between managers of different companies?
a. Formal
b. External
c. Horizontal
d. Written
Definition
External
Term
Managers should be able to identify problems within a group and help solve the problems quickly. Which leadership skill helps people understand each other and their responsibilities in order to reduce problems within a group?
a. Develop job satisfaction
b. Influence
c. Ethical behavior
d. Team building
Definition
Team building
Term
Identifying strengths and weaknesses can help a person become an effective leader. Which leadership development strategy develops leadership skills by helping a person identify his or her strengths and weaknesses?
a. Observe Leaders
b. Analyze Leadership Skills
c. Work with a Mentor
d. Participate in Activities
Definition
Analyze Leadership Skills
Term
Identifying strengths and weaknesses can help a person become an effective leader. Which leadership development strategy develops leadership skills by helping a person identify his or her strengths and weaknesses?
a. Observe Leaders
b. Analyze Leadership Skills
c. Work with a Mentor
d. Participate in Activities
Definition
Analyze Leadership Skills
Term
Shantell goes to college and works as a sales associate at Nordstrom’s. She has an important exam coming up and she needs to ask her store managers if she can have some time off in order to prepare for the exam. Calling her manager to ask for time off is an example of which type of communication?
a. Informal
b. External
c. Vertical
d. Written
Definition
Vertical
Term
An employee for Office Depot is being accused of stealing office supplies from the store. The store manager reviews all of the security video to confirm the accusation. Before taking action, the manager also speaks with the accused employee to hear his account of the story. What leadership characteristic is the manager demonstrating by looking at both sides of the issue before making his final decision?
a. Objectivity
b. Courage
c. Honesty
d. Stability
Definition
Objectivity
Term
Maria Allen is the human resources manager for a major advertising company. A change as been made regarding employee benefits and she needs to notify all company employees of this change. Maria sends a mass email to the entire company explaining the employee benefits changes. Sending a company email is an example of which type of communication?
a. Informal
b. External
c. Written
d. Horizontal
Definition
Written
Term
Marquis is the store manager at a local Best Buy. He is considering promoting one of his employees to an assistant manager position. What kind of influence does Marquis have over his employees while he taking recommendations for the assistant manager position?
a. Position
b. Reward
c. Expert
d. Identity
Definition
Position
Term
Divia is the sales manager at a local BUCKLE store. Sales at her store have declined by 14% in the last three months. In an attempt to increase sales, Divia offers a $500 bonus to the sales associate with the highest monthly sales total. What kind of influence does Divia over her employees by offering a sales bonus?
a. Position
b. Reward
c. Expert
d. Identity
Definition
Reward
Term
Jordan is a member of Future Business Leaders of America. He wants to become more active in the organization so he decides to nominate himself for the Treasurer position. Becoming an active member of an organization addresses which leadership development strategy?
a. Study Leadership
b. Participate in Activities
c. Observe Leaders
d. Work with a Mentor
Definition
Participate in Activities
Term
Evan is the manager of the IT department for a major website development company. He has a master’s degree in Computer Engineering and has had several articles published in various technology magazines. What kind of influence does Evan have over his employees in the IT department?
a. Position
b. Reward
c. Expert
d. Identity
Definition
Expert
Term
The Chief Executive Officer of a major pharmaceutical company travels the world speaking at conferences and workshops. He has also published several articles and reviews in multiple medical journals throughout the world. What leadership characteristic is the CEO demonstrating by speaking internationally and publishing his literary achievements?
a. Communication
b. Dependability
c. Intelligence
d. Objectivity
Definition
Communication
Term
Boris has been the manager of a local Applebee’s restaurant for 8 years. His employees love working for him and have great respect for his management skills. What kind of influence does Boris have over his employees at Applebee’s?
a. Position
b. Reward
c. Expert
d. Identity
Definition
Identity
Term
Edward Banks was recently introduced as the new Chief Executive Officer of Time Warner Industries. The TWI board of directors unanimously voted to promote Mr. Banks after the old CEO resigned. What kind of influence does Mr. Banks have over Time Warner Industries as an elected official of the company?
a. Direct
b. Formal
c. Indirect
d. Informal
Definition
Formal
Term
Neal Gafferty is the director of a non-profit organization. He organizes his staff into teams in order to plan a fundraiser scheduled for next month. Immediately, Neal notices that one of his staff members, Sarah, begins motivating and guiding her team towards their goals. What kind of influence does Sarah have over her team members?
a. Direct
b. Formal
c. Indirect
d. Informal
Definition
Informal
Term
The manager of a major computer software company has a degree in business administration and computer information systems. She has completed six software certification programs and is also a licensed computer technician. What leadership characteristic is the manager demonstrating by having extensive knowledge in her career field?
a. Judgment
b. Confidence
c. Intelligence
d. Communication
Definition
Intelligence
Term
Taking a course about leadership skills at your local college addresses which leadership development strategy?
a. Study Leadership
b. Participate in Activities
c. Observe Leaders
d. Work with a Mentor
Definition
Study Leadership
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