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Business Management Questions Answers Quiz - 85

1. J. Stacy Adams developed equity theory of motivation while working for the Behavioral Research Service of General Electric. Which of the following is not true about the equity theory?
[A]Perceptions of fairness depend on assessment of inputs
[B]Perceptions of fairness depend on assessment of outcomes
[C]Perception of fairness depends on the behavior and treatment a superior emits towards an employee
[D]Outcomes are rewards such as recognition and pay


2. Every organization makes minor structural adjustments in reaction to changes. Change is any alteration of the "status quo". The forces of change can be internal or external to the organization. An example of an internal force for change is
[A]Marketplace
[B]Government regulation
[C]Technology
[D]Workforce


3. Which of the following statements is/are true with respect to ‘Discretionary Expense Centers’?
I. The output of a discretionary expense center cannot be directly used to produce revenues.
II. Budgets for discretionary expense centers are developed only in terms of maximum resources that can be consumed by them in a particular period.
III. For assessing the budgetary performance, the expense constraints are established at the discretion of the manager.
[A]Only (I) above
[B]Only (III) above
[C]Both (I) and (II) above
[D]All (I), (II) and (III) above


4. In Japanese organizations, informal organizations that yield considerable power in formal organizations are referred to as
[A]Wa
[B]Habatsu
[C]Kaisha
[D]Kacho


5. Which of the following is not an example of current assets?
[A]Prepaid expenses
[B]Cash and cash equivalents
[C]Marketable securities
[D]Trade payables


6. The manager inventory chart is used in human resource replacement planning. Which of the following is not an advantage of the ‘Manager Inventory Chart’?
[A]It gives an overview of the human resource situation of an organization
[B]It shows the future internal supply of managers by indicating who is likely to be promoted in a year
[C]It shows the position to which a manager may be promoted
[D]Managers who are ready for promotion can be easily identified


7. According to Maslow, a person who is looking for affection, belongingness, acceptance, and friendship is at which need level?
[A]Physiological
[B]Safety
[C]Social
[D]Esteem


8. The managerial creative process involves four overlapping phases. What is the sequence of these phases?
I. Insight.
II. Intuition.
III. Unconscious scanning.
IV. Logical formulation.
[A](III), (II), (I) and (IV)
[B](II), (III), (IV) and (I)
[C](III), (I), (II) and (IV)
[D](I), (II), (III) and (IV)


9. Which of the following financial ratios measure the ability of an organization to meet its short-term obligations by using its current assets?
[A]Leverage
[B]Asset management
[C]Debt management
[D]Liquidity


10. In the US style of management, the organizing function generally involves
I. Individual responsibility and accountability.
II. Clear and specific decision responsibility.
III. Informal organization structure.
IV. Ambiguity of decision responsibility.
V. Formal, bureaucratic organization structure.
[A](I), (II) and (III) above
[B](I), (II) and (IV) above
[C](I), (II) and (V) above
[D](II), (III) and (IV) above


11. According to Fiedler, which of the following is a technique that measures whether a person is task-oriented or relationship-oriented?
[A]Least-preferred coworker questionnaire
[B]Most-preferred coworker questionnaire
[C]Least-preferred subordinate questionnaire
[D]Production orientation


12. Herzberg, a behavioral studies scientist, propounded the two-factor theory of motivation. This theory consists of motivators and
[A]Working conditions
[B]Safety factors
[C]Power factors
[D]Hygiene factors


13. Which of the following statements is/are true about ‘Economic Order Quantity’ (EOQ)?
I. It is helpful for determining desirable inventory levels when demand is predictable.
II. EOQ is useful in determining inventory levels of parts and materials used in production, as well.
III. Decisions based on EOQ could lead to shortage or excess of inventory.
[A]Only (II) above
[B]Only (III) above
[C]Both (I) and (II) above
[D]Both (I) and (III) above


14. Kurt Lewin, a researcher at the University of Iowa, and his colleagues, proposed three leadership styles. viz., autocratic, democratic and laissez-faire. Which of the following statements is not true regarding these three leadership styles?
[A]A democratic leader actively tries to solicit the input of subordinates.
[B]A laissez-faire leader avoids making decisions
[C]An autocratic leader will always have low performance from employees
[D]A democratic leader usually requires a consensus before reaching a decision


15. In a PERT network, the sequence of events and activities requiring the longest period of time to complete is
[A]Called the network
[B]Indicated by thin arrows
[C]The path that managers avoid
[D]The critical path


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