C483 Principles of Management Practice Questions - Set 1 - Part 1

Correct Answer: c) Cooperating on behalf of the other party

Accommodation focuses on cooperation with the other party, often sacrificing one’s own interests. Assertive pursuit and emphasis on disagreement do not align with accommodation, and ignoring the issue reflects avoidance.

Correct Answer: b) To verify accuracy of financial reports

Accounting audits primarily verify the accuracy of financial statements. Compliance may be secondary, controlling operations is not the focus, and profitability may be assessed but is not the audit’s purpose.

Correct Answer: b) Identifying activity streams to allocate costs

ABC allocates costs based on activity streams, accurately reflecting usage. Equal allocation, cost minimization, and simplicity do not describe ABC’s focus.

Correct Answer: c) Autocratic leadership

Autocratic leaders make independent decisions. Democratic involves group input, transformational inspires followers, and servant focuses on serving others’ needs.

Correct Answer: d) Motivation

ERG theory includes existence, relatedness, and growth needs. Motivation is a broader term and not one of the ERG needs.

Correct Answer: c) Barriers to entry

Barriers to entry are obstacles that prevent new companies from entering an industry. Monopoly relates to market dominance, and profit advantage and customer loyalty are outcomes, not the barriers themselves.

Correct Answer: b) Adverse impact

Adverse impact occurs when policies unintentionally harm protected groups. Affirmative action promotes diversity, ethical dilemma involves moral choices, and performance gap reflects a difference between actual and desired outcomes.

Correct Answer: b) Customer satisfaction

The balanced scorecard includes customer satisfaction, financials, business processes, and learning. Research may be related but is not core, and marketing and product variety are not central areas.

Correct Answer: b) Clan control

Clan control relies on shared values and norms. Bureaucratic uses rules, market is based on pricing mechanisms, and centralized controls through top management.

Correct Answer: c) Garbage can model

The garbage can model describes random and chaotic decision-making. Bounded rationality acknowledges limited information, the rational model seeks optimal decisions, and incremental involves gradual solutions.

Correct Answer: d) Free flow of information and ideas

Boundaryless organizations promote open information exchange. Department focus, strict hierarchy, and reduced flow contrast with this flexibility.

Correct Answer: a) Affirmative action

Affirmative action aims to recruit historically marginalized groups. Equal employment and HRM are broader terms, while cultural diversity addresses a variety of backgrounds.

Correct Answer: a) Benchmarking

Benchmarking compares practices and technologies. Environmental scanning assesses external factors, competitive advantage evaluates strengths, and SWOT reviews internal and external factors.

Correct Answer: c) Control over a range of tasks

Autonomous groups manage decisions and task execution. They are not limited in decision-making or centralized and do not strictly follow leaders.

Correct Answer: c) Ability to inspire excitement in followers

Charismatic leaders inspire excitement. Consistency and rule-following are not typical, and personal goals align more with self-interest.

Correct Answer: b) Expectancy theory

Expectancy theory focuses on the perceived likelihood of goal achievement. Equity is about fairness, goal-setting emphasizes goals, and attribution relates to cause explanations.

Correct Answer: b) Fiedler's contingency model

Fiedler's model considers task structure, leader relations, and power. Path-goal is about subordinate goals, traits focus on leader characteristics, and behavior is action-based.

Correct Answer: c) Balance sheet

The balance sheet shows assets, liabilities, and equity at a specific time. The income statement reports performance, cash flows reflects liquidity, and retained earnings tracks earnings retained.

Correct Answer: b) Protecting new businesses

Business incubators protect small businesses, offering resources and support. Funding may be involved but is secondary, and licensing and market entry are not the focus.

Correct Answer: c) Esteem and self-actualization

Growth needs relate to self-actualization and esteem. Safety and physiological relate to existence, and social relates to relatedness.