Student Name:______

CALIFORNIA STATE UNIVERSITY, FULLERTON

COLLEGE OF BUSINESS ADMINISTRATION AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Management 339 Dr. Gamini Gunawardane

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PRACTICE TEST QUESTIONS SET I

1. Planning, Organizing, Directing/leading and Control are called

a. Functions of management

b. Process of management

c. both a & b above

d. Strategic planning

2. Managers work

a. towards achieving goals

b.  with limited resources

c. both a & b

d. none of the above

3. A manager who achieves (or nearly achieves) objectives while managing resources well is

a. efficient

b. effective

c. a top manager

d. both efficient and effective

4. Alternatives available to follow a differentiation strategy includes all the following except

a. cost leadership

b.  flexibility

c.  availability/dependability/time

d.  quality

5. What is the first step in the planning process?

a. SWOT analysis

b. Setting policies and procedures

c. Revising mission and objectives

d. environmental analysis

6. X Company has decided that it has not been successful in marketing their washing machines although their machines have received high ratings in the industry. In order to save the company, it is considering a merger with a marketing company which will increase the sales. This type of strategy is a

a. growth strategy

b. stability strategy

c. retrenchment strategy

d. operations strategy

7. Which of the following is not part of an organization's external environment?

a. technology

b. customers

c. suppliers

d. corporate culture

8. Which of the following is not a part of an organization's internal environment?

a. Resources of a large corporation that owns this company

b. corporate culture

c. organization structure

d. political and legal developments

9. A strategic planning tool that can assist managers in developing an organization’s strategy by matching internal organizational strengths and weaknesses with external opportunities and threats is:

a. SWOT analysis

b. environmental analysis

c. critical question analysis

d. business portfolio analysis

10. The owner of a food truck, selling food in an industrial area at prices somewhat higher than the fast food outlets a mile away, uses the generic______strategies.

a. differentiation and cost leadership

b. focus and differentiation

c. cost leadership and focus

d. functional

11. Types of growth strategies include all the following except:

a. diversification

b. focus

c. concentration

d. vertical integration

12. Business level strategies that will be the focus of a company where a major group of customers demand more features are

a. cost leadership

b. differentiation

c. focus

d. a & b above

e. b & c above

13.All the following are true except

a.  Currently there is a greater emphasis on business ethics

b.  Some academics believe that managers should not spend company funds on socially responsible activities other than what is required by law.

c.  Some socially responsible activities might result in economic gain for the company.

d.  Less companies are setting up corporate compliance programs and codes of conduct.

14. A pizza outlet that wants to adopt the business strategy of availability might adopt any of the following except

a.  more pizza outlets

b.  more varieties of pizza in the menu

c.  outlets open for longer hours

d.  faster delivery of pizza

15.  Managing services is more difficult due to

a.  behavioral problems associated with customer contact

b.  subjective nature of evaluation of quality by customers

c.  both a and b

d.  neither a nor b

16.  Organizing involves all the following except

a.  dividing work into departments and employees

b.  motivation of employees

c.  establishing authorities and responsibilities

d.  defining information flow in the organization

17.  Steps in management control include all the following except

a.  measuring the standard

b.  comparing actual performance with standard

c.  corrective action

d.  setting goals or standards

18. Decisions in Operations Management are made in the following sequence:

a.  business strategy-corporate strategy-operations strategy-operating decisions

b.  corporate strategy-operations strategy-business strategy-operating decisions

c.  corporate strategy-long term decisions in operations-competitive priorities- operating decisions

d.  none of the above is correct

19 Productivity

a. is the ratio input divided by output

b. measures how well objectives are achieved

c. increases as output increases for example, due to use of better technology

d. all of the above are true about “productivity”

20. Activities adopted by modern organizations to be ethical include all the following except

a. total quality management

b. formulating Standards of Conduct

c. appointing compliance officers and compliance committees

d. establishing company polices that allow whistle blowing

21. Porter’s industry competition analysis for a department store will study all the following except

a. major product lines carried by other department stores in the area

b. home shopping TV channels

c. bargaining power of clothing manufacturers

d. employee satisfaction with their jobs

22. The continuum (levels) of social responsibility includes all the following except

a. ethical responsibility

b. personal responsibility

c. legal responsibility

d. economic responsibility

e. discretionary responsibility

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