Question 1

Which could be considered an indirect cost?&#10;A)Overhead&#10;B)Programmer salary&#10;C)Contract with painter&#10;D)Cost of &#34;meat&#34; in a hot dog&#10;E)You're trying to trick me, these are all direct costs.&#10;

Accepted Answer

Indirect costs are resources that cannot be assigned to any specific contract, project, service, product or project activity. In this case, overhead is the only one that would fall into that category. With the hot dog, programmer and painter, you can likely assign those costs to specific tasks or products (e.g. the creation of the hot dog you had for lunch).
Key Takeaway: Indirect costs might sound like things you don't need to care about, but you should. For instance, in many companies, electricity is considered an indirect cost. What if your project requires computers that use twice as much energy as the average computer? Doesn't that affect the company's profitability (and the value of your stock options)?

Question 2

In McGregor's X and Y Theories, Theory X assumes workers are inherently lazy and will avoid work if they can, while Theory Y assumes workers can be ambitious if they are properly motivated.

Accepted Answer

Douglas McGregor was a professor at the MIT Sloan School of Management (your editor's alma mater) who proposed these two theories of human motivation. Theory X assumes workers are inherently lazy and will avoid work if they can, while Theory Y assumes workers can be ambitious if they are properly motivated.
Key Takeaway: McGregor didn't believe either X or Y was right or wrong, but rather that companies tended to follow one approach or the other with regards to managing their employees. It's valuable to understand what direction the organizational culture where you are working tends to tilt. Most companies are, of course, somewhere in between.

Question 3

Positive reinforcement and punishment are strategies employed by what theory?&#10;A)Reinforcement theory&#10;B)Expectancy theory&#10;C)Valence theory&#10;D)Acquired need theory&#10;

Accepted Answer

Reinforcement theory includes the two strategies of positive reinforcement and punishment as consequences to an action.
Key Takeaway: In reinforcement theory, there are three possible outcomes to an action. First, positive reinforcement could occur which would help promote the person to repeat the action again in the future. Second, punishment or negative reinforcement could be used to dissuade the person from repeating the action in the future. Third, no action or consequence could be used. Often, if there are no positive or negative consequences to an action, then the action is deemed unimportant by the person performing it.

Question 4

Zachary is part of a group at work. After being late to one of the group meetings, he is confronted by his peers and asked to arrive on time for future meetings. Which group development stage is this task associated with?

A)Forming
B)Storming
C)Norming
D)Performing

Accepted Answer

Setting the standard for what behaviors will and will not be tolerated within a group is part of the norming group development stage.
Key Takeaway: During the third stage of group development, the norming stage, group members set the standard for what typical group interactions and expectations are. Norming can create a more efficient and task-oriented group. Often, this is done informally. For example, instead of creating an official rule that everyone must be on time to meetings, the leader will instead confront those who are late and use them as an example.

Question 5

In Company XYZ, the marketing department is often in conflict with the manufacturing department. What type of conflict can this be characterized as?&#10;A)Interpersonal&#10;B)Intrapersonal&#10;C)Inter-group&#10;D)Intra-group&#10;

Accepted Answer

Because the conflict is between two distinct groups, the conflict is characterized as an inter-group conflict.
Key Takeaway: Conflicts can occur between groups as well as between individuals within those groups. An inter-group conflict (conflict between two groups) can occur when each group has different and opposing objectives. For example, the marketing department might be tasked with generating high sales volume while the manufacturing department might not be able to respond to those increased sales in a timely manner. This would create a potential conflict between the two groups.

Question 6

Elizabeth has been late for work the last two days. Her manager gave her a verbal warning and mentioned that if she was late again, she would receive a written warning. What type of discipline is this an example of?

A)Permanent discipline
B)Positive discipline
C)Progressive discipline
D)Perceptive discipline

Accepted Answer

This is an example of progressive discipline, since the punishment is works with subsequent offenses.
Key Takeaway: Progressive discipline is defined as a discipline system that uses a series of steps or levels to punish employees. Each step or level is more severe than the prior one. Progressive discipline often starts with a verbal warning, progresses to a written warning, then suspension and finally termination of employment. Depending on how the system is set up, managers may choose to skip levels in the progressive discipline system based on the severity of the initial infraction.

Question 7

Expectancy theory states that employees who are motivated by incentives will remain motivated and productive so long as the rewards meet their expectations.

Accepted Answer

Expectancy theory states that employees who are motivated by incentives will remain motivated and productive provided rewards meet their expectations.
Key Takeaway: While this is simple, expectancy theory starts to become complex. What if a person is generally over-incentivized? It is much harder to motivate someone who is overpaid with what might seem fair to someone who is reasonably paid. That is why overpaying a long-term employee can be damaging to long-term productivity.

Question 8

Coffin's Coffee sells premium coffee. It decides to launch a new iced coffee product. What should be a key consideration?&#10;A)Economies of scale&#10;B)Cannibalization&#10;C)Diversification&#10;D)A niche market&#10;E)Maturity phase&#10;

Accepted Answer

cannibalization. Cannibalization is what results when a company offers a product which takes away sales from another of its existing products. The question for Coffin's is whether it gets new people in the door who drink iced coffee. Adding new products must increase overall revenue to be worthwhile. Otherwise, it just increases the difficulty of managing the operation.
The four incorrect answers are also terms you should know:
Economies of scale is the economic benefit a company receives when its business expands.
Diversification is when you spread your money across different asset classes.
A niche market is a particular specialized segment of a market for which there is little, if any, competition.
Maturity phase is when a business has matured to the point that its growth is in line with the growth of the economy.
Key Takeaway: Whenever there is a new product introduction, you should immediately ask if cannibalization will be an issue.

Question 9

What, in order, are the needs in Maslow's hierarchy?&#10;A)Social Acceptance, Self-Actualization, Physiological, Safety, Esteem&#10;B)Physiological, Safety, Social Acceptance, Esteem, Self-Actualization&#10;C)Safety, Physiological, Safety, Esteem, Self-Actualization&#10;D)Learning, recognition from peers, respect and formal responsibility&#10;E)X, Y and Z&#10;

Accepted Answer

Maslow's Hierarchy of Needs go in the following order:
Physiological - Food, housing, water and shelter
Safety - Physical safety and security for oneself and family/friends, and security of employment, resources, property, etc.
Social Acceptance - Acceptance from friends and family and intimate relationships
Esteem - Respect from others, achievement
Self-actualization - Personal growth, fulfillment, creativity
Key Takeaway: Abraham Maslow was an American psychologist who created this hierarchy of needs in 1943. It's a useful framework in your personal and professional life to understand what people are seeking. Generally, people must satisfy the lower levels (nourishment and physical safety) before they can seek higher levels of needs. As a professional manager, you can make an impact for someone in a number of areas by helping people grow, treating them with respect and giving them a sense of security.

Question 10

In the fictional country of Nigindia, a 10 percent kickback to an official is common practice. You are asked for this kickback to win a key project. Should you pay it?&#10;A)Yes&#10;B)No&#10;

Accepted Answer

The Foreign Corrupt Practices Act explicitly prohibits the bribery of foreign government officials. Even if it is common practice in Nigindia, you are not permitted by U.S. law to pay the kickback.
Key Takeaway: It's not whether you get this question right but how decisively you respond to moral questions when you are put into these situations that matters the most.

Question 11

Sarbanes-Oxley (SOX) might keep a firm from going public for which of the following reasons?&#10;A)Compliance cost&#10;B)Health care costs&#10;C)Liquidity requirements&#10;D)ARPU&#10;E)All of the above&#10;

Accepted Answer

The answer of Sarbanes-Oxley (SOX) might keep a firm from...

Question 12

Which leadership theory stated that there are two broad categories that should influence leadership style: subordinate characteristics and work environment?&#10;A)Hersey-Blanchard's Life Cycle Theory&#10;B)House's Path-Goal Theory&#10;C)Blake and Mouton's Managerial Grid&#10;D)Fiedler's Contingency Theory&#10;

Accepted Answer

The answer of Which leadership theory stated that there are...

Question 13

According to the University of Michigan study, which type of leadership was most effective?&#10;A)Job-centered&#10;B)Employee-centered&#10;C)Lassez-faire&#10;D)Production-centered&#10;

Accepted Answer

The answer of According to the University of Michigan study,...

Question 14

Which of these terms best describes a leader who is concerned primarily with the details of how the job is performed?&#10;A)transactional&#10;B)transformational&#10;C)coercive&#10;D)empathetic&#10;

Accepted Answer

The answer of Which of these terms best describes a...

Question 15

The Ohio State University conducted a study on leadership and categorized leadership as having two distinct qualities: initiation of structure and consideration. Which combination of these two qualities did they find created the most effective leaders?

A)Low initiation of structure; low consideration
B)Low initiation of structure; high consideration
C)High initiation of structure; low consideration
D)High initiation of structure; high consideration

Accepted Answer

The answer of The Ohio State University conducted a study...

Question 16

According to Hersey and Blanchard's situational and life cycle leadership theory, which of the following statements is true?&#10;A)An employee can be at one readiness level for one task and a different readiness level for a different task&#10;B)Managers should vary their leadership style based solely on the length of time the employee has been in a role&#10;C)Situational leadership is a limited concept that did not work in practice&#10;D)Leadership style should be based on the task, not the employee&#10;

Accepted Answer

The answer of According to Hersey and Blanchard's situational and...

Question 17

Which theory of situational leadership describes the four leadership modes as directive, supportive, achievement, and participative?&#10;A)Hersey-Blanchard's Life Cycle Theory&#10;B)House's Path-Goal Theory&#10;C)Blake and Mouton's Managerial Grid&#10;D)Fiedler's Contingency Theory&#10;

Accepted Answer

The answer of Which theory of situational leadership describes the...

Question 18

Which theory of leadership is represented by the five characteristics of leadership: self-awareness, control or regulation of emotions, empathy, motives, and influence?&#10;A)Hersey-Blanchard's Life Cycle Theory&#10;B)House's Path-Goal Theory&#10;C)Goleman's Emotional Intelligence Theory&#10;D)Fiedler's Contingency Theory&#10;

Accepted Answer

The answer of Which theory of leadership is represented by...

Question 19

What was the drawback to both the trait and managerial grid approaches to leadership evaluation?&#10;A)The study findings were inconclusive&#10;B)The assumption that leaders were born, not made&#10;C)The leadership situation was ignored&#10;D)The findings were based on too small of a population size&#10;

Accepted Answer

The answer of What was the drawback to both the...

Question 20

Decreasing the number of products sold can improve profits.

Accepted Answer

The answer of Decreasing the number of products sold can...

Question 21

You are a consultant brought into help Torrance Electronics, a global conglomerate. Among the companies they own are Torrance's Televisions and MegaMonitors. Mega makes the screens for the TVs and both are considered profit centers. Recently, Torrance's profits have fallen as their competition has been able to outprice them. This could be an issue of:

A)Synergies
B)Economies of scope
C)Transfer pricing
D)Licensing
E)Cost-based accounting

Accepted Answer

The answer of You are a consultant brought into help...

Question 22

Charles is a manager who often uses threats to motivate his employees to achieve certain goals. What type of power is Charles using?&#10;A)Legitimate&#10;B)Coercive&#10;C)Expert&#10;D)Referent&#10;

Accepted Answer

The answer of Charles is a manager who often uses...

Question 23

For repetitive or boring tasks, research has found that the supportive leadership style will increase which of these aspects?&#10;A)Increase both worker satisfaction and worker performance&#10;B)Increase worker satisfaction but not increase worker performance&#10;C)Increase worker performance but not increase worker satisfaction&#10;D)Will not increase either worker performance nor worker satisfaction&#10;

Accepted Answer

The answer of For repetitive or boring tasks, research has...

Question 24

Charismatic leaders such as Martin Luther King Jr. can be called ___________ leaders due to their ability to inspire people to pursue a goal they originally thought impossible.&#10;A)transactional&#10;B)transformational&#10;C)coercive&#10;D)empathetic&#10;

Accepted Answer

The answer of Charismatic leaders such as Martin Luther King...

Question 25

Which of these is the first stage of group or team development?&#10;A)Norming&#10;B)Storming&#10;C)Forming&#10;D)Performing&#10;

Accepted Answer

The answer of Which of these is the first stage...

Question 26

Groups with this type of leader tend to do well even when the leader is absent from the group. Select the leadership style that best fits the previous statement.&#10;A)Autocratic&#10;B)Laissez-faire&#10;C)Democratic&#10;D)Considerate&#10;

Accepted Answer

The answer of Groups with this type of leader tend...

Question 27

What is the best definition for leadership?&#10;A)Set of rules and policies which encourage employee participation&#10;B)A philosophy of management to achieve results through detailed oversight&#10;C)A visionary mindset which is not based in reality&#10;D)Set of behaviors which inspire and direct employees&#10;

Accepted Answer

The answer of What is the best definition for leadership?&#10;A)Set...

Question 28

Mark has an employee who is able to do the job functions, but is not willing to do them. Which leadership style would be best suited for use with this employee?&#10;A)S1: Directing&#10;B)S2: Selling&#10;C)S3: Participating&#10;D)S4: Delegating&#10;

Accepted Answer

The answer of Mark has an employee who is able...

Question 29

Emily is new on the job and is unable to sufficiently perform the tasks required yet. According to Hersey-Blanchard's Life Cycle and Situational Leadership Theory, what leadership style should her manager use?

A)S1: Directing
B)S2: Selling
C)S3: Participating
D)S4: Delegating

Accepted Answer

The answer of Emily is new on the job and...

Question 30

An employee at Company XYZ is faced with a conflict in which he does not have all of the facts. In order to make the best decision, which conflict resolution style should he choose?&#10;A)Compromiser&#10;B)Accommodator&#10;C)Collaborator&#10;D)Avoider&#10;

Accepted Answer

The answer of An employee at Company XYZ is faced...

Question 31

The administrative school contributed ideas and philosophies that dealt primarily with which two core functions of management?&#10;A)Organizing and leading&#10;B)Planning and controlling&#10;C)Leading and controlling&#10;D)Organizing and planning&#10;

Accepted Answer

The answer of The administrative school contributed ideas and philosophies...

Question 32

Which theory was the first to incorporate situational leadership?&#10;A)McClelland's Acquired Needs Theory&#10;B)Zeitgeist Theory of Leadership&#10;C)Blake and Mouton's Managerial Grid&#10;D)Fiedler's Contingency Theory&#10;

Accepted Answer

The answer of Which theory was the first to incorporate...

Question 33

The idea of &#34;division of labor&#34; can be attributed to ___________ .&#10;A)Military contributions&#10;B)Systems theory&#10;C)Contingency views&#10;D)Scientific management&#10;

Accepted Answer

The answer of The idea of &#34;division of labor&#34; can...

Question 34

What level of conflict should be present in an organization for peak performance overall?&#10;A)No conflict&#10;B)Low levels of conflict&#10;C)Moderate levels of conflict&#10;D)High levels of conflict&#10;

Accepted Answer

The answer of What level of conflict should be present...

Question 35

Which of the following was NOT cited by the Center for Creative Leadership (CCL) as one of the top reasons which manager's careers are derailed?&#10;A)Lack of ability to change or adapt&#10;B)Lack of interpersonal skills&#10;C)Lack of technical skills&#10;D)Lack of ability to build and lead a team&#10;

Accepted Answer

The answer of Which of the following was NOT cited...

Question 36

Which of Fayol's fourteen principles of management is described by the phrase &#34;single voice is essential so that authority is not undermined&#34;?&#10;A)Unity of Direction&#10;B)Unity of Command&#10;C)Centralization&#10;D)Order&#10;

Accepted Answer

The answer of Which of Fayol's fourteen principles of management...

Question 37

If a person responds to conflict with a high concern for himself and a low concern for the other party, what conflict resolution style does this represent?&#10;A)Avoider&#10;B)Compromiser&#10;C)Collaborator&#10;D)Competitor&#10;

Accepted Answer

The answer of If a person responds to conflict with...

Question 38

Marsha and Samuel both received raises during their last performance review. However, Marsha received a larger raise than Samuel. When Samuel discovered this fact, he felt motivated to do better next year so that he could receive a larger raise as well. What motivational theory does this example best demonstrate?

A)Goal setting theory
B)Reinforcement theory
C)Expectancy theory
D)Equity theory

Accepted Answer

The answer of Marsha and Samuel both received raises during...

Question 39

Which person was best known for their emphasis on informal organization as opposed to formal policies and procedures?&#10;A)Henri Fayol&#10;B)Chester Barnard&#10;C)Mary Parker Follett&#10;D)Douglas McGregor&#10;

Accepted Answer

The answer of Which person was best known for their...

Question 40

According to the reinforcement theory, what type of reinforcement schedule is used if a salesman is paid on commission for a sale?&#10;A)Fixed interval&#10;B)Variable interval&#10;C)Fixed ratio&#10;D)Variable ratio&#10;

Accepted Answer

The answer of According to the reinforcement theory, what type...

Question 41

Which of these theories of leadership is most closely linked to the expectancy theory of motivation?&#10;A)Hersey-Blanchard's Life Cycle Theory&#10;B)Fiedler's Contingency Theory&#10;C)Blake and Mouton's Managerial Grid&#10;D)House's Path-Goal Theory&#10;

Accepted Answer

The answer of Which of these theories of leadership is...

Question 42

Which is the best definition for emotional intelligence as defined by Goleman?&#10;A)Ability to read others and use emotions to influence a situation&#10;B)Ability to identify and categorize emotions in yourself and others&#10;C)Ability to empathize with others on an emotional level&#10;D)Ability to understand the impact of your emotions on yourself&#10;

Accepted Answer

The answer of Which is the best definition for emotional...

Question 43

According to Kurt Lewin's findings, which style of leadership resulted in groups that performed best when the leader was present, but failed to perform during the absence of their leader?&#10;A)Autocratic&#10;B)Laissez-faire&#10;C)Democratic&#10;D)Considerate&#10;

Accepted Answer

The answer of According to Kurt Lewin's findings, which style...

Question 44

Which theory of leadership describes leadership in terms of matching the employee readiness level with the leadership style?&#10;A)Hersey-Blanchard's Life Cycle Theory&#10;B)Fiedler's Contingency Theory&#10;C)Blake and Mouton's Managerial Grid&#10;D)University of Michigan's Job/Employee Centered Leadership Model&#10;

Accepted Answer

The answer of Which theory of leadership describes leadership in...

Question 45

Which of these is not a component of situational leadership as described by Fiedler?&#10;A)Readiness&#10;B)Leader-follower relations&#10;C)Task structure&#10;D)Position power&#10;

Accepted Answer

The answer of Which of these is not a component...

Question 46

In Herzberg's Two Factor Theory, what is the definition of a dis-satisfier?&#10;A)Factors which if not met will cause job dissatisfaction&#10;B)Factors which if improved could lead to increased job satisfaction&#10;C)Factors which were never able to meet employee expectations&#10;D)Factors which were always dissatisfactory to the employee&#10;

Accepted Answer

The answer of In Herzberg's Two Factor Theory, what is...

Question 47

Which group development stage is the most productive?&#10;A)Storming&#10;B)Norming&#10;C)Performing&#10;D)Adjourning&#10;

Accepted Answer

The answer of Which group development stage is the most...

Question 48

What is at the bottom of Maslow's Hierarchy of Needs pyramid?&#10;A)Esteem&#10;B)Safety&#10;C)Physiological&#10;D)Belonging&#10;

Accepted Answer

The answer of What is at the bottom of Maslow's...

Question 49

Company XYZ produces customizable vehicles on a made-to-order basis using a single assembly line with technology that is able to customize each vehicle's accessories based on the customer's order. What is this an example of?

A)Flexible manufacturing
B)Enterprise manufacturing
C)Technology manufacturing
D)Process manufacturing

Accepted Answer

The answer of Company XYZ produces customizable vehicles on a...

Question 50

Rueben became aware that his proposal for project funding was denied due to a comment made by one of his coworkers. Instead of getting mad, Rueben chose to confront the coworker calmly to determine why this comment was made. What type of conflict is this?

A)Latent
B)Perceived
C)Felt
D)Manifest

Accepted Answer

The answer of Rueben became aware that his proposal for...

Question 51

Which study concluded that the process of studying something can impact the results since the evaluator can interact and change the conditions?&#10;A)Hawthorne studies&#10;B)Follett studies&#10;C)Gantt studies&#10;D)Barnard studies&#10;

Accepted Answer

The answer of Which study concluded that the process of...

Question 52

There are four basic functions of management. Which of the following answers lists all four basic functions?&#10;A)Planning, Leading, Evaluating, Controlling&#10;B)Leading, Reviewing, Organizing, Working&#10;C)Organizing, Controlling, Planning, Evaluating&#10;D)Planning, Organizing, Leading, Controlling&#10;

Accepted Answer

The answer of There are four basic functions of management....

Question 53

Mary has a reoccurring meeting with her employees each month to provide feedback on their job performance. What type of reinforcement is this?&#10;A)Valence&#10;B)Progressive&#10;C)Interval&#10;D)Ratio&#10;

Accepted Answer

The answer of Mary has a reoccurring meeting with her...

Question 54

Which type of intra-group conflict is easiest to resolve?&#10;A)Relationship&#10;B)Task&#10;C)Process&#10;

Accepted Answer

The answer of Which type of intra-group conflict is easiest...

Question 55

Existence, relatedness, and growth needs are part of which theory?&#10;A)Maslow's Hierarchy of Needs&#10;B)Herzberg's Two Factor Theory&#10;C)Alderfer's ERG Theory&#10;D)McClelland's Acquired Need Theory&#10;

Accepted Answer

The answer of Existence, relatedness, and growth needs are part...

Question 56

If a team contains members from multiple levels within the organization, such as a manager and his employees, what is the best term for that team?&#10;A)Functional team&#10;B)Vertical team&#10;C)Formal team&#10;D)Task force&#10;

Accepted Answer

The answer of If a team contains members from multiple...

Question 57

In a unionized plant, which area would be the correct choice for processing grievances from employees?&#10;A)Employee relations&#10;B)Labor relations&#10;C)Training&#10;D)Compensation board&#10;

Accepted Answer

The answer of In a unionized plant, which area would...

Question 58

What is the best definition for the term &#34;zeitgeist&#34;?&#10;A)Leaders are born; leaders were meant to be leaders at that point in time&#10;B)Leadership must be learned and taught&#10;C)Leaders must be charismatic and personable to be effective&#10;D)Leaders and managers are the same&#10;

Accepted Answer

The answer of What is the best definition for the...

Question 59

During which group development phase are differences surfaced and resolved?&#10;A)Forming&#10;B)Storming&#10;C)Norming&#10;D)Adjourning&#10;

Accepted Answer

The answer of During which group development phase are differences...

Question 60

Reinforcement theory examines ______________ .&#10;A)Thought processes&#10;B)Observable events&#10;C)Reporting processes&#10;D)Influence&#10;

Accepted Answer

The answer of Reinforcement theory examines ______________ .&#10;A)Thought processes&#10;B)Observable events&#10;C)Reporting...

Question 61

Economic Order Quantity (EOQ) and the kanban system are processes for reducing ____________.&#10;A)Raw material inventories&#10;B)Work-in-process inventories&#10;C)Finished product inventories&#10;D)Any inventories&#10;

Accepted Answer

The answer of Economic Order Quantity (EOQ) and the kanban...

Question 62

If a person receives a positive consequence for a specific behavior, they are likely to repeat that behavior in the future. What is this called?&#10;A)Black box behavior&#10;B)Law of consequences&#10;C)Observational outcomes&#10;D)Law of effect&#10;

Accepted Answer

The answer of If a person receives a positive consequence...

Question 63

Jennifer wrote a report which stated conclusions that she knows her co-workers will disagree with. However, her coworkers have not yet read the report. What type of conflict does this represent?&#10;A)Latent&#10;B)Perceived&#10;C)Manifest&#10;D)Felt&#10;

Accepted Answer

The answer of Jennifer wrote a report which stated conclusions...

Question 64

Motivating workers through the drive system (i.e. pushing and prodding) is a management technique used in which philosophy?&#10;A)Theory X&#10;B)Theory Y&#10;C)The McGregor Theory&#10;D)The Gantt Theory&#10;

Accepted Answer

The answer of Motivating workers through the drive system (i.e....

Deck 6: Management