Group : __________ CIN :_________________ Name :_______________________________________________

BCOR 120 - Principles of Management

Midterm Exam

DIRECTIONS:

• This is a 120 minutes exam.

• This exam contains 60 multiple choice questions worth 1.5 points each and 2 short
essays worth 5 points each.
• Circle the correct response for each question. Make sure that your answer is clearly
marked. You will not receive partial credit.
• This is a closed-book, closed notes examination. You may use a calculator if you
wish. However, cell phones are not permitted for use in any way.
• Any discussion or otherwise inappropriate communication between examinees, as
well as the appearance of any unnecessary material or cell-phone usage, will be dealt
with severely. Violations may result in an “0” for this exam, “0” for the class,
suspension, or expulsion.
• This exam is worth a total of 100 points. Print your name at the top of this page in the
upper right hand corner. Good Work!!

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1) Sandra, a production supervisor, is responsible for ten employees who assemble
components into a finished product. Kelly is a ________.
A) top manager
B) nonmanagerial employee
C) middle manager
D) first-line manager
Answer: D

2) If your team quickly prepared the delivery order but discovered afterward it was the
wrong order, your team would be ________.
A) efficient but ineffective
B) efficient and effective
C) effective but inefficient
D) neither effective nor efficient
Answer: A

3) An automobile manufacturer increased the total number of cars produced while

keeping the production costs the same. The manufacturer ________.
A) increased its equity
B) increased its efficiency
C) increased its effectiveness
D) increased its effort
Answer: B

4) When Alexander helps one of his employees troubleshoot a machine problem, he is

using his ________ skills.
A) negotiator
B) technical
C) interpersonal
D) conceptual
Answer: B

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5) Sarra, a single parent, is looking for a new job. Considering that she has two school-
going children, she is particularly keen on finding an employer who can provide her
with alternative work arrangements such as flexible work hours and telecommuting.
In terms of the decision-making process, these represent Amanda's ________.
A) decision criteria
B) problems
C) alternatives
D) heuristics
Answer: A

6) Bryan must select a new supplier for lighting fixtures for his company's mobile
homes. He has decided quality is more important than price but price is more
important than lead times. Bryan will use these priorities to ________.
A) analyze alternatives
B) set his decision criteria
C) allocate weights to the criteria
D) develop alternatives
Answer: C

7) In the decision-making process, while ________, the decision maker puts the decision
into action by conveying it to those affected by it and getting their commitment to it.
A) selecting an alternative
B) evaluating a decision's effectiveness
C) implementing an alternative
D) analyzing alternatives
Answer: C

8) Managers are assumed to use ________ if they make logical and consistent choices to
maximize value.
A) rational decision making
B) intuitive decision making
C) bounded rationality
D) evidence-based management
Answer: A

9) Which of the following is an aspect of intuition?

A) experienced-based decisions
B) quality-initiated decisions
C) science-based decisions
D) programmed decisions
Answer: A

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10) A procedure ________.
A) is an explicit statement that tells a manager what can or cannot be done
B) is a series of sequential steps a manager uses to respond to a structured problem
C) is used mainly for unstructured, rather than structured, problems
D) is subject to the interpretation of the decision maker
Answer: B

11) It is time for Jane to order aluminum tubing again. She typically orders from one of
three vendors. She knows the price, delivery time, and quality of each vendor. In this
situation, Jane has ________.
A) certainty
B) uncertainty
C) risk
D) structure
Answer: A

12) The manager of an apparel store estimates how much to order for the current spring
season based on last spring's sales figures. The store manager is operating under
which of the following decision-making conditions?
A) uncertainty
B) risk
C) structure
D) certainty
Answer: B

13) ________ is a situation in which a decision maker cannot make reasonable

probability estimates.
A) Necessity
B) Risk
C) Uncertainty
D) Certainty
Answer: C

14) What is the psychological orientation of a decision maker who makes a "maximin"
choice?
A) optimist
B) realist
C) pessimist
D) idealist
Answer: C

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15) Before making a decision, Kathryn gathers as much information as she can then
analyzes it to check for trends and patterns. Kathryn prefers ________.
A) linear thinking
B) non-linear thinking
C) intuitive thinking
D) judgmental thinking
Answer: A

16) Rules of thumb that managers use to simplify decision making are known as
________.
A) heuristics
B) folksonomies
C) algorithms
D) sophisms
Answer: A

17) When decision makers seek out information that reaffirms their past choices and
discount information that contradicts past judgments, they are exhibiting the
________.
A) hindsight bias
B) availability bias
C) representation bias
D) confirmation bias
Answer: D

18) A few decades ago, Walmart opened stores in Germany. After a few years, it closed
all of them. The shopping habits of Europeans differed so much from that of
Americans that the stores could not become profitable. What was Walmart's mistake?
A) It did not understand cultural differences.
B) It did not create standards for good decision making.
C) It did not know when it was time to call it quits.
D) It did not use an effective decision-making process.
Answer: A

19) Calvin's goals for the coming year include specific targets for increasing market share
and quantity of units shipped. If he succeeds, he will be handsomely rewarded. If he
fails, he is likely to be replaced. Judging from this, it would appear that Calvin's
employer subscribes to ________.
A) the symbolic view of management
B) the omnipotent view of management
C) the impotent view of management
D) the omniscient view of management

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Answer: B

20) Which of the following most accurately reflects the symbolic view of management?
A) Managers are directly responsible for an organization's success or failure.
B) Managers have to ensure that every obstacle is overcome on the way to achieving the
organization's goals.
C) External forces are responsible for an organization's success or failure.
D) Employees are directly responsible for an organization's success or failure.
Answer: C

21) Internal constraints that influence managers' decisions and actions come from
________.
A) the attitudes of customers
B) the culture of the organization
C) the prevailing political conditions
D) the fluctuations in the stock market
Answer: B

22) Which of the following factors is a demographic component of an organization's

external environment?
A) lifestyles and behavior
B) political stability
C) geographic location
D) stock market fluctuations
Answer: C

23) Which of the following are the two dimensions of environmental uncertainty?
A) degree of change and degree of complexity
B) degree of change and degree of volume
C) degree of complexity and degree of impact
D) degree of impact and degree of timing
Answer: A

24) In which of the following environments do managers in an organization have the

greatest influence on organizational outcomes?
A) stable and complex environments
B) dynamic and simple environments
C) stable and simple environments
D) dynamic and complex environments
Answer: C

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25) If you were talking to Todd, an average person, and asked him what the term culture
meant, he would reply that it is ________.
A) the formal rules of an organization
B) the nature of products/services offered by the company
C) the shared values and practices of the firm
D) a set of operational procedures for the company
Answer: C

26) Which of the following is a disadvantage of having a strong organizational culture?

A) high employee turnover
B) decreased organizational performance
C) low loyalty towards the organization
D) inability to respond to changing conditions
Answer: D

27) Workplace spirituality has become important in the contemporary workplace because
it ________.
A) increases organizational efficiency
B) boosts company profits
C) gives employees a sense of purpose
D) brings religion into business
Answer: C

28) Which of the following is a typical definition of a multinational corporation?

A) It is a company that maintains operations in multiple countries.
B) It is a company that maintains franchises in multiple countries.
C) It is a company that has multiple home bases and manufacturing plants.
D) It is a company that pays corporate taxes in at least two countries.
Answer: A

29) Melanie would like to become a part of the global retail community. Which of the
following options should Melanie consider as her first step?
A) She should engage in global sourcing.
B) She should engage in licensing.
C) She should engage in franchising.
D) She should develop strategic alliances with foreign companies.
Answer: A

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30) Unlike the United States, the change from one regime to another in foreign countries
can be less than peaceful. Differences in the ________ can lead to uncertainty and
risk for global managers.
A) economic environment
B) cultural environment
C) political/legal environment
D) demographic environment
Answer: C

31) A ________ economy is one in which resources are primarily owned and controlled
by the private sector.
A) free market
B) planned
C) command
D) democratic
Answer: A

32) The two metaphors commonly used to describe the two views of the change process
are ________.
A) smooth water and troubled water
B) calm waters and white-water rapids
C) shallow water and falling water
D) burning bridge and water over the dam
Answer: B

33) According to Kurt Lewin, increasing the driving forces is a means of ________.
A) unfreezing
B) changing
C) restraining
D) refreezing
Answer: A

34) Organizational change is any alteration of ________.

A) people, structure, or technology
B) structure, management, or goals
C) technology, goals, or management
D) rules, procedures, or management
Answer: A

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35) In organizations, people who act as catalysts and assume the responsibility for
managing the change process are called ________.
A) change masters
B) change agents
C) change champions
D) change generators
Answer: B

36) An individual is likely to resist change because of the feeling ________.

A) of achievement
B) of uncertainty
C) of personal gain
D) that the change is in the organization's best interest
Answer: B

37) Stress symptoms are grouped under the categories of ________.

A) physical, economic, and legal
B) physical, psychological, and behavioral
C) physical, psychological, and cultural
D) physical, political, and social
Answer: B

38) ________ is the process of taking a creative idea and turning it into a useful product
or work method.
A) Innovation
B) Inspiration
C) Creativity
D) Ingenuity
Answer: A

39) The ________ roles involve collecting, receiving, and disseminating information,
according to Mintzberg's managerial roles.
A) interpersonal
B) informational
C) technical
D) decisional
Answer: B

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40) Today, the basic management functions include ________.
A) planning, organizing, commanding, and coordinating
B) planning, organizing, coordinating, and controlling
C) planning, organizing, directing, and controlling
D) planning, organizing, leading, and controlling
Answer: D

41) ________ results in a solution that is considered "good enough."

A) Escalating
B) Linear thinking
C) Intuition
D) Satisficing
Answer: D

42) Ralph's search for new technologies that can be used in the production processes of
his plant is an example of which type of management skill?
A) conceptual
B) communication
C) effectiveness
D) monitor
Answer: A

43) A domestic firm and a foreign firm sharing the cost of developing new products or
building production facilities in a foreign country constitute a ________.
A) franchising agreement
B) strategic alliance
C) foreign subsidiary
D) joint venture
Answer: B

44) In 1984 Toyota and General Motors formed a company called NUMMI to build cars
carrying both the General Motors and Toyota brands. NUMMI is an example of a(n)
________.
A) equity strategic alliance
B) joint venture
C) global venture
D) nonequity strategic alliance
Answer: B

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45) Which of the following techniques for reducing resistance to change includes
employee counseling, therapy, new skills training, or a short paid leave of absence.
A) negotiation
B) facilitation and support
C) manipulation and co-optation
D) coercion
Answer: B

46) Roger is assessing the amount of time and costs involved in completing today's
production. Roger is assessing his unit's ________.
A) effectiveness
B) efficiency
C) performance
D) lost revenue
E) allocations
Answer: B

47) Human skills are required for ________.

A) designing work processes and procedures
B) understanding how the organization relates to its environment
C) understanding how changes in one part of the organization affect the rest of it
D) applying specialized knowledge and expertise to work-related techniques
E) working with individual and group interests
Answer: E

48) Sandra holds a top-level post in her organization and is a part of the top management
at Silica Inc. A key policy governing the manufacturing processes was recently
changed, and Sandra needs to analyze the effects of the change on the various
departments of the company and predict the effect on the output. This process
involves using her ________ skills.
A) technical
B) moral
C) conceptual
D) human
E) interpersonal
Answer: C

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49) Which of the following skills become more important when a manager moves from
lower-level management to upper-level management?
A) conceptual skills
B) technical skills
C) interpersonal skills
D) communication skills
E) presentation skills
Answer: A

50) ________ is the adverse reaction people have to excessive pressure placed on them
from extraordinary demands, constraints, or opportunities.
A) Euphoria
B) Stress
C) Degeneration
D) Disease
Answer: B

51) A ________ personality is characterized by chronic feelings of a sense of time

urgency, an excessive competitive drive, and difficulty accepting and enjoying leisure
time.
A) Type X
B) Type Y
C) Type A
D) Type B
Answer: C

52) How can managers increase the likelihood of making change happen successfully?
A) They should realize that they are just change agents not change leaders.
B) They should discourage entrepreneurial mindsets.
C) They should give individual employees a role in the change process.
D) They should adapt the changes made by their competitors.
Answer: C

53) ________ refers to the ability to combine ideas in a unique way or to make unusual
associations between ideas.
A) Innovation
B) Alteration
C) Creativity
D) Change
Answer: C

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54) Organizations exist for a variety of purposes, but many see ________ as their primary
objective.
A) increasing shareholder wealth
B) making a profit
C) creating policies and procedures
D) writing objectives
E) advertising products
Answer: B

55) Programmed decisions are ________.

A) nonstructured
B) one-shot decisions
C) routine and repetitive
D) made by top management
E) made by computers
Answer: C

56) Ideal decision makers ________.

A) preserve the status quo
B) allow others to make decisions for them
C) accept little outside help in making decisions
D) are characterized by reason and sound judgment
E) make decisions that will only enhance their value in the firm
Answer: D

57) ________ refers to situations where the probability that a particular outcome will
occur is not known in advance.
A) Uncertainty
B) Risk
C) Unrealistic optimism
D) Heuristics
E) Overconfidence
Answer: A

58) The more ________ and less ________ involved, the more confidence managers tend
to have in their decision making.
A) certainty; time
B) risk; certainty
C) risk; uncertainty
D) uncertainty; risk
E) certainty; risk

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Answer: E

59) Business had been humming along just fine until the Great Recession hit. Benton
Industries adjusted by laying off employees until the recession ended then hired them
back. Then it was back to business as usual. This is an example of ________.
A) the shallow water metaphor
B) the calm waters metaphor
C) the white-water rapids metaphor
D) the falling water metaphor
Answer: B

60) Outside consultants are more likely to initiate ________ organizational changes than
insiders.
A) drastic
B) mild
C) acceptable
D) trivial
Answer: A

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B01. (05 pts) What is universality of management? Why is it important?
Short essay

Management is needed in all types and sizes of organizations, at all

organizational levels and in all organizational work areas, and in all
organizations, no matter where they're located. This is known as the universality
of management. In all organizations, managers must plan, organize, lead, and
control.

Management is universally needed in all organizations. So it is necessary to find

ways to improve the way organizations are managed. Organizations that are well
managed develop a loyal customer base, grow, and prosper, even during challenging
times. Those that are poorly managed find themselves losing customers and
revenues. By studying management and its universality, an individual will be able to
recognize poor management and work to get it corrected.

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B02. (05 pts) Define the methods by which a firm can organize for and enter into international
Short essay
markets.
A firm can enter international markets in several ways.

It may license a foreign firm to produce and market its products.

It may export its products and sell them through foreign intermediaries or its own
sales organization abroad, or it may sell its exports outright to an export–import
merchant.

It may enter into a joint venture with a foreign firm. It may establish its own
foreign subsidiaries, or it may develop into a multinational enterprise.
Generally, each of these methods represents an increasingly deeper level of
involvement in international business, with licensing being the simplest and the
development of a multinational corporation the most involved.

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