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Management Quiz Questions with Answers(Management Quiz - 62)

1. Under which of Porter's five sections for analyzing a firm's task environment, would ‘an absolute cost advantage’ most likely appear as a decision variable?
[A]The nature of rivalry
[B]New entrants
[D]Bargaining power of buyers

2. As a manager, Radha has a good grasp of the "big picture," visualizing the relationship of her business to the industry and to the larger community. She is also able to see how the various parts of her organization depend upon one another. Which of the following skills is Radha demonstrating?

3. Organizations that adopt a matrix structure generally pass through some structural stages. In which of the following stages do bosses have equal power?
[A]Functional (stage 1)
[B]Temporary overlay (stage 2)
[C]Permanent overlay (stage 3)
[D]Mature matrix (stage 4)

4. In order to understand the opportunities and threats faced by an organization, managers should analyze their organization’s environment. What are the three most effective tools that managers can use to analyze their organization’s environment?
[A]Benchmarking, planning, and evaluating
[B]Environmental scanning, forecasting, and benchmarking
[C]Strategic planning, environmental scanning, and TQM
[D]Forecasting, budgeting, and time management

5. Although having some plans is important, a criticism of planning would be that
[A]Plans reinforce previous failure
[B]Plans are usually ignored by managers
[C]Plans are too flexible to be useful
[D]Formal plans can’t replace intuition and creativity

6. Which of the following is not a characteristic of an organic structure?
[A]Unstable environment
[B]Few rules and regulations
[D]Hierarchical communication

7. Situations of certainty, risk and uncertainty affect decision-making. In an environment or condition of high uncertainty, which of the following strategies should be used to make a plan more effective?
[A]Rely on long-term forecasting in the industry
[B]Place less reliance on lower and middle management’s advice
[C]Adopt long-term planning, i.e., more than five years duration
[D]Adopt a directional plan with an emphasis on the short-term

8. The major disadvantage of the matrix structure is
[A]Duplication of resources
[B]Lack of employee satisfaction
[C]Lack of economies of scale
[D]Its propensity to foster power struggles

9. Middle level managers would engage in setting which of the following objectives?
I. Division objectives.
II. Overall organization objectives.
III. Individual performance objectives.
IV. Specific overall organization objectives such as those pertaining to key result areas.
[A]Only (I) above
[B]Both (I) and (II) above
[C]Both (I) and (IV) above
[D]Both (II) and (III) above

10. Which of the following is a limitation of the empirical approach to management?
[A]It is not integrated with management concepts, principles, theory and techniques
[B]Too broad a field for the study of management
[C]Emphasis only on blue-collar and lower level office work
[D]Situations are all different

11. All of the following are quantitative decision-making tools except
[A]Linear programming
[B]Decision tree
[C]Waiting line theory
[D]Behaviorally Anchored Rating Scales

12. SWOT analysis helps companies identify their strengths and weaknesses and, opportunities and threats in the environment it operates. Which of the following cannot be considered a potential ‘opportunity’ for a company?
[A]Serving additional customer groups
[B]Ability to take advantage of economies of scale
[C]Falling trade barriers in attractive foreign markets
[D]Integrating forward or backward

13. Assessment of arguments ‘for’ and ‘against’ involvement in social welfare is necessary for organizations to implement social initiatives. Which of the following arguments ‘against’ social responsibility of business points out that, since the cost of social initiatives would be added to the price of products, multinational companies selling in domestic markets would be at a disadvantage when competing with domestic companies not involved in social activities?
[A]Opposing the profit maximization principle
[B]Excessive costs
[C]Weakened international balance of payments
[D]Increase in firm’s power and influence

14. In an organization, a superior has the right to get tasks accomplished by his subordinates, but the responsibility remains with the superior. This principle which intends to eliminate the practice of “passing the buck”, is known as
[A]Hierarchy of authority
[B]Downward delegation of authority
[C]Unity of direction
[D]Authority on par with responsibility

15. Which of the following are weaknesses of the Delphi method of group decision-making?
I. It is difficult to carry out the process with a large group.
II. It requires a skilled group facilitator.
III. There is too much emphasis on obtaining consensus.
IV. It consumes considerable amount of time.
V. It does not produce accurate results.
[A]Both (I) and (IV) above
[B]Both (II) and (III) above
[C](I), (II) and (V) above
[D](III), (IV) and (V) above


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