OpenStax Principles of Management

Test bank questions (supplemental to those provided by OpenStax)

NOTE: Questions of the same color ask about the same concept (can create a question block)

Chapter 1

Denver is the manager of an electronics retail store. In the morning, Denver reads an email from
corporate headquarters about their store sales for the month, and then summarizes this in a text
sent to all store employees. What managerial role is Denver using during this time?
*a. Informational
b. Interpersonal
c. Decisional

Denver is the manager of an electronics retail store. In the morning, Denver sends a text to
remind one employee that they will earn a bonus if they sell one more TV this week. What
managerial role is Denver using during this time?
a. Informational
*b. Interpersonal
c. Decisional

Denver is the manager of an electronics retail store. In the morning, Denver sends a text to one
employee asking if they can work an extra shift this weekend. What managerial role is Denver
using during this time?
a. Informational
b. Interpersonal
*c. Decisional

Soo is currently a middle manager and wants to move up to an executive role in the next five
years. What skills should Soo to prepare to use the most in an executive role?
*a. Conceptual skills
b. Human skills
c. Technical skills

Soo is currently a first-line manager and wants to move up to a middle manager role in the next
five years. What skills should Soo to prepare to use the most in a middle management role?
a. Conceptual skills
*b. Human skills
c. Technical skills

Soo is currently a rank-and-file employee and wants to move up to a first-line manager role in
the next five years. What skills should Soo to prepare to use the most in a first-line management
role?
a. Conceptual skills
b. Human skills
*c. Technical skills
Chapter 2

What is an example of a programmed decision?

*a. Amari takes the same route to work each day.
b. Brady researches new recipes for tonight’s dinner.
c. Chris talks with a travel agent about a summer vacation in a new location.

What is an example of a programmed decision?

*a. Harper reorders office supplies at work.
b. Chris talks with a travel agent about a new location for summer vacation.
c. Jordan weighs the costs and benefits of biking or driving to work.

What is an example of a programmed decision?

*a. Kadin needs more toothpaste and chooses the first brand on the shelf.
b. Brady researches new recipes for tonight’s dinner.
c. Jordan weighs the costs and benefits of biking or driving to work.

What is an example of a non-programmed decision?

a. Amari takes the same route to work each day.
b. Harper reorders office supplies at work.
*c. Chris talks with a travel agent about a summer vacation in a new location.

What is an example of a non-programmed decision?

a. Harper reorders office supplies at work.
b. Kadin needs more toothpaste and chooses the first brand on the shelf.
*c. Jordan weighs the costs and benefits of biking or driving to work.

What is an example of a non-programmed decision?

a. Amari takes the same route to work each day.
b. Kadin needs more toothpaste and chooses the first brand on the shelf.
*c. Brady researches new recipes for tonight’s dinner.
Chapter 4

A food manufacturing company has three office locations, four functional areas, and five product
lines. The CEO wants to change the organizational structure to provide more employee
specialization. What structure of Vice Presidents should the CEO create?
a. VP of Virginia, VP of Nebraska, and VP of Oregon
*b. VP of Operations, VP of Human Resources, VP of Sales, and VP of Research
c. VP of vegetables, VP of meats, VP of fruit, VP of bread, and VP of desserts

A food manufacturing company has three office locations, four functional areas, and five product
lines. The CEO wants to change the organizational structure to provide very fast customer
service. What structure of Vice Presidents should the CEO create?
a. VP of Virginia, VP of Nebraska, and VP of Oregon
b. VP of Operations, VP of Human Resources, VP of Sales, and VP of Research
*c. VP of vegetables, VP of meats, VP of fruit, VP of bread, and VP of desserts

In year 4020, An architect is traveling back to the year 2020 at Longwood University. There, she
discovers buildings and the honor code. These discoveries are examples of:
a. Assumptions
b. Environment
*c. Visible artifacts
d. Environmental Values

Laura and her coworkers always work in groups, and the mail lady is like an aunt to her. What
type of culture does Laura's job have?
a. Market
*b. Clan
c. Adhocracy
d. Hierarchy
Chapter 5

Rudy is well-known for understanding what other people are going through. Rudy can be rated
high on which of these elements?
a. Self-awareness
b. Self-regulation
*c. Empathy
d. Social skills

Rumi is well-known for staying calm when everyone else in the group gets angry at each other.
Rumi can be rated high on which of these elements?
a. Self-awareness
*b. Self-regulation
c. Empathy
d. Social skills

Rami is well-known for getting along well with people in almost any situation. Rami can be
rated high on which of these elements?
a. Self-awareness
b. Self-regulation
c. Empathy
*d. Social skills

Sailor pays more attention to people on social media they agree with and tends to block or ignore
people with different beliefs. Sailor is experiencing what?
A. conditions of uncertainty
B. escalation of commitment
C. time pressures
*D. confirmation bias

Marc is a manager of a manufacturing company. He is concerned that a new piece of equipment

is defective and will likely break quickly. Replacing the part for all customers will cost the
company a lot of money. Marc decides to talk with other managers to see what they would do in
that situation. Marc is using what ethical approach to making this decision?
a. Utilitarianism
b. Universalism
*c. Relativism
d. Virtue ethics

Marc is a manager of a manufacturing company. He is concerned that a new piece of equipment

is defective and will likely break quickly. Marc also worries that a customer can get hurt by the
defective piece. Marc decides to recall the product and replace it for free for all customers, even
though this will be expensive. Marc is using what ethical approach to making this decision?
a. Utilitarianism
*b. Universalism
c. Relativism
d. Virtue ethics

Marc is a manager of a manufacturing company. He is concerned that a new piece of equipment

is defective and will likely break quickly. Marc decides to wait for customers to complain before
he acts because replacing the part for all customers will cost the company a lot of money. Marc
is using what ethical approach to making this decision?
*a. Utilitarianism
b. Universalism
c. Relativism
d. Virtue ethics
Chapter 6

The Olive Pit wants to expand into international markets. The company decides to sell and ship
the product to stores in foreign countries. This is an example of what international strategy?
a. Strategic alliance
*b. Exporting
c. Foreign direct investment
d. Licensing

The Olive Pit wants to expand into international markets. The company decides to allow new
companies in Italy, Greece, and Morocco to produce olive oil in their country and then sell it
under The Olive Pit label. This is an example of what international strategy?
a. Strategic alliance
b. Exporting
c. Foreign direct investment
*d. Licensing

The Olive Pit wants to expand into international markets. The company decides to buy acres of
olive trees and build new production facilities in Italy, Greece, and Morocco. This is an example
of what international strategy?
a. Strategic alliance
b. Exporting
*c. Foreign direct investment
d. Licensing
Chapter 8

DriveMe is a new company that wants to provide automobile ride-sharing services. The CEO
hires you to investigate the company’s micro environment. What do you identify as industry
rivals?
*a. Uber and Lyft
b. The cost of creating a new smartphone app
c. People deciding to bike instead of use a car
d. Not enough drivers in each area

DriveMe is a new company that wants to provide automobile ride-sharing services. The CEO
hires you to investigate the company’s micro environment. What do you identify as a business
threat to entering the new industry?
a. Uber and Lyft
*b. The cost of creating a new smartphone app
c. People deciding to bike instead of use a car
d. Not enough drivers in each area

DriveMe is a new company that wants to provide automobile ride-sharing services. The CEO
hires you to investigate the company’s micro environment. What do you identify as substitutes?
a. Uber and Lyft
b. The cost of creating a new smartphone app
*c. People deciding to bike instead of use a car
d. Not enough drivers in each area

DriveMe is a new company that wants to provide automobile ride-sharing services. The CEO
hires you to investigate the company’s micro environment. What do you identify as a concern
about suppliers?
a. Uber and Lyft
b. The cost of creating a new smartphone app
c. People deciding to bike instead of use a car
*d. Not enough drivers in each area during peak demand

The Athletics For All company is very good at marketing its sports products. This describes
Athletics For All’s
A. weaknesses
B. opportunities
C. threats
*D. strengths

The Athletics For All company has a lot of competitors. This describes Athletics For All’s
A. weaknesses
B. opportunities
*C. threats
D. strengths
The Athletics For All company has no social media presence. This describes Athletics For All’s
*A. weaknesses
B. opportunities
C. threats
D. strengths

The Athletics For All company thinks there will be more customers interested in leisure and
athletics clothing in the next 10 years. This describes Athletics For All’s
A. weaknesses
*B. opportunities
C. threats
D. strengths

DroneDrop is a startup company that wants to provide online shopping deliveries via drone. The
CEO asks you to investigate the company’s macro environment using the PESTEL model. How
would you classify the high cost associated with paying drone operators?
a. Political factor
*b. Economic factor
c. Technological factor
d. Environmental factor

DroneDrop is a startup company that wants to provide online shopping deliveries via drone. The
CEO asks you to investigate the company’s macro environment using the PESTEL model. How
would you classify the concern that the fastest wireless networks (5G) are not yet available
across the country?
a. Political factor
b. Economic factor
*c. Technological factor
d. Environmental factor

DroneDrop is a startup company that wants to provide online shopping deliveries via drone. The
CEO asks you to investigate the company’s macro environment using the PESTEL model. How
would you classify the concern that some states have different air space regulations for low
flying objects like drones?
*a. Political factor
b. Economic factor
c. Technological factor
d. Environmental factor
Chapter 9

Rugs International has created a goal of increasing firm revenue by 5%. This is what type of
corporate strategy?
A. stability
B. defensive
*C. growth

Rugs International has decided to keep all its stores open during a difficult financial year. This is
what type of corporate strategy?
*A. stability
B. defensive
C. growth

Rugs International decided it needs to lay off 10% of employees because of a difficult financial
year. This is what type of corporate strategy?
A. stability
*B. defensive
C. growth
Chapter 10

T.J. is graduating from college soon and prefers a work environment in which there are few
management levels, little hierarchy, and most people are generalists with some expertise in one
area. What type of organization should T.J. try to find in a new job?
a. Mechanistic organization
*b. Organic organization
c. Formal organization
d. Informal organization

M.J. is graduating from college soon and prefers a work environment in which there are a lot of
management levels, a clear hierarchy or chain of command, and most people have levels of
expertise in their jobs. What type of organization should M.J. try to find in a new job?
*a. Mechanistic organization
b. Organic organization
c. Formal organization
d. Informal organization

The CEO of a construction company noticed that entry-level workers needed more training about
concrete and bricks. What level of organizational change is needed?
*a. Individual-level change
b. Group-level change
c. Organization-level change
d. Unplanned change

The CEO of a construction company noticed that two construction teams are constantly fighting
with each other for tools. What level of organizational change is needed?
a. Individual-level change
*b. Group-level change
c. Organization-level change
d. Unplanned change

The CEO of a construction company thinks that all employees should be eligible for parental
leave (an employee benefit of paid time off). What level of organizational change is needed?
a. Individual-level change
b. Group-level change
*c. Organization-level change
d. Unplanned change

During organizational change, what step involves examining the current state and setting a
vision?
*a. Unfreeze
b. Move
c. Refreeze
d. Vaporize
During organizational change, what step involves communicating vision and taking action?
a. Unfreeze
*b. Move
c. Refreeze
d. Vaporize

During organizational change, what step involves anchoring the change and making it
permanent?
a. Unfreeze
b. Move
*c. Refreeze
d. Vaporize

Which is NOT a part of unfreezing?

a. Having a sense of urgency
b. A powerful guiding coalition
*c. Communicating the vision
d. Creating a vision

John works at Company ACM. He two bosses – one is the Vice President of Educational Toys
and the other is the Vice President of Marketing. What type of structure does this company use?
a. Divisional Based
*b. Matrix Based
c. Functional Based
d. Market Based
Chapter 11

Greg is a 56-year-old male who believes he was unfairly passed over for a promotion because he
is too close to retirement age. Which of the following statutes is most relevant to the situation?
*a. Age Discrimination in Employment Act
b. Americans with Disabilities Act
c. Fair Labor Standards Act
d. Family and Medical Leave Act

Ginny was fired from after requesting time off to take care of her elderly mother. Which of the
following statutes is most relevant to the situation?
a. Age Discrimination in Employment Act
b. Americans with Disabilities Act
c. Fair Labor Standards Act
*d. Family and Medical Leave Act

Gary’s company refuses to pay overtime wages for the weeks that he works more than 40 hours.
Which of the following statutes is most relevant to the situation?
a. Age Discrimination in Employment Act
b. Americans with Disabilities Act
*c. Fair Labor Standards Act
d. Family and Medical Leave Act

Gal’s company refuses to provide reasonable restroom accommodations for individuals in a

wheelchair. Which of the following statutes is most relevant to the situation?
a. Age Discrimination in Employment Act
*b. Americans with Disabilities Act
c. Fair Labor Standards Act
d. Family and Medical Leave Act

Roland is a manager at Rose Motel. He wants to help one of his employees, Stevie, gain the
skills necessary to one day take on a managerial position. Jerry assigns Stevie the task of
forecasting revenue for the next 5 years for Rose Motel. Stevie doesn’t currently have the
knowledge and skills to do this assignment, but she will learn as she conducts the task. The task
that Roland gave to Stevie is what type of development activity?
a. Training
*b. Stretch assignment
c. Individual assessments
d. Individual development plan
e. High potential grid
Chapter 12

The CEO of Bloom Company credits the company’s low employee turnover to having of a very
diverse workforce. What is the best description for how the CEO could explain this benefit of
diversity to shareholders?
*a. Cost advantage
b. Resource acquisition
c. Improved marketing
d. More creativity

The CEO of Frond Company credits the company’s high levels of employee skill to having of a
very diverse workforce. What is the best description for how the CEO could explain this benefit
of diversity to shareholders?
a. Cost advantage
*b. Resource acquisition
c. Improved marketing
d. More creativity

The CEO of Root Company credits the company’s increasing customer base to having of a very
diverse workforce. What is the best description for how the CEO could explain this benefit of
diversity to shareholders?
a. Cost advantage
b. Resource acquisition
*c. Improved marketing
d. More creativity

The CEO of Sprout Company credits lower employee groupthink to having of a very diverse
workforce. What is the best description for how the CEO could explain this benefit of diversity
to shareholders?
a. Cost advantage
b. Resource acquisition
c. Improved marketing
*d. More creativity

What is it called when members of a majority feel out of place because of increasing diversity
and thus leave the organization?
*a. Lower organizational attachment
b. Reverse discrimination
c. Racial discrimination
d. Psychological detachment

What is it called when members of a majority believe that members of a minority are receiving
unequal favorable treatment?
a. Lower organizational attachment
*b. Reverse discrimination
c. Racial discrimination
d. Psychological detachment

At Google, the executives value diversity and hire employees from all different races and
backgrounds. They create a welcoming and safe environment for all. This is an example of:
a. Ethics
*b. Inclusion
c. Culture
d. Diversity

Which of the following is not considered an observable surface-level trait?

a. Gender
b. Skin Color
c. Race
*d. Talents
e. Age
Chapter 13

Billy is a leader at Maple Brown Accounting. He is trying to persuade his staff to take on
more clients this year during an already hectic tax season. He promises his accountants an
extra week of vacation once the tax deadline passes Billy is using which base of power to
motivate his staff?
A. Referent
B. Legitimate
C. Reward
D. Coercive
E. Expert
ANSWER: C

Michael works as a sales representative for Dunder Mifflin Paper Company. He has a lunch
meeting with a potential client, Christian, who makes the decision about where to buy
office supplies for the entire Lackawanna County. Michael spends the entire lunch telling
jokes and talking about life, rather than business. At the end the meeting, Christian agrees
to buy paper from Dunder Mifflin Paper Company, saying Michael’s charm and sense of
humor convinced him. Michael used which base of power to persuade Christian?
A. Referent
B. Legitimate
C. Reward
D. Coercive
E. Expert
ANSWER: A

Karen says that she is a successful leader because when she tells her subordinates to do
something, they do it because she's the boss. What source of power Karen is using as a leader?
A. Reward power
B. Coercive power
C. Referent power
D. Expert power
*E. Legitimate power

Ash says that he is a successful leader because his subordinates like him and want to continue to
make sure Ash likes them. What source of power is Ash using as a leader?
A. Reward power
B. Coercive power
*C. Referent power
D. Expert power
E. Legitimate power

Todd says that he is a successful leader because his subordinates know he reduce employee
bonuses if the employee’s do not do as he says. What source of power is Todd using as a leader?
A. Reward power
*B. Coercive power
C. Referent power
D. Expert power
E. Legitimate power

Shana says that she is a successful leader because she provides monthly bonuses for high
performance. What source of power is Shana using as a leader?
*A. Reward power
B. Coercive power
C. Referent power
D. Expert power
E. Legitimate power
Chapter 14

Donna and Marc have the same job in a button factory and earn the same pay. Donna makes
twice as many buttons a month as Marc. According to Equity Theory, Donna likely feels:
A. Overreward inequity
*B. Underreward inequity
C. State of equity

Donna and Marc have the same job in a button factory and earn the same pay. Donna makes
twice as many buttons a month as Marc. According to Equity Theory, Marc likely feels:
*A. Overreward inequity
B. Underreward inequity
C. State of equity

Which of the following conditions will result in high performance according to expectancy
theory?
*A. When good performance is associated with positive outcomes
B. When effort will result in low performance
C. When low performance is associated with positive outcomes
D. When low performance is not associated with negative outcomes
Chapter 15

The product development team at Rose Inc. met on Tuesday. At the start of the meeting,
Joey had the courage to bring up the ‘elephant in the room’ – there has been major tension
between Tammy and Sarah ever since they disagreed on the best name for Rose Inc.’s new
product. Because of Joey, Tammy and Sarah were able to work through the conflict and the
team could focus on its task. Joey took on what role to reduce conflict?
A. Real-time permission
B. Perspective taking
C. Hiding emotions
D. Miner of conflict

ANSWER: D
Chapter 17

A water park uses a computer to monitor the amount of chlorine in the pools and a computer
adjusts the chlorine levels as necessary to maintain the optimal amount. This is an example of
what type of control?
A. noncybernetic
B. synergistic
C. nonsynergistic
*D. cybernetic

A farm has separate quality assurance employees that check the quality of the food product
before distribution. This is an example of what type of control?
*A. noncybernetic
B. synergistic
C. nonsynergistic
*D. cybernetic

Effective managers make sure that activities are going as planned by using multiple types of
control.
*a. True
b. False

Control systems are widely accepted by all employees and have no negative effects.
a. True
*b. False

Sherry, is the shift supervisor at Grasshopper Chocolatiers, has the highest performing team. One
reason for this is because she implements multiple types of control activities. First, she ensures
that her subordinates are properly trained on how to make the chocolates and properly equipped
with the necessary safety and hygiene equipment and tools. Then, during the shift, she carefully
monitors her workers' actions, taking notes and even measurements as needed to ensure they are
behaving up to the quality standard the company has set. Finally, at the end of each work week,
she analyzes her notes and measurement data, and she uses the results of her analysis to make
needed production changes the following week. Using this scenario, answer the following 2
questions:

When Sherry is monitoring her workers' actions as they are making the chocolate, she is
exercising ________ control.
a. precontrol
*b. concurrent
c. postaction
d. external

When Sherry ensures that her employees have the proper training and equipment to make high
quality chocolates, she is exercising ________ control.
*a. precontrol
b. concurrent
c. postaction
d. external

When Sherry reviews her notes and measurement data from the previous week and uses the
information to make changes in the future, she is exercising ________ control.
a. precontrol
b. concurrent
*c. postaction
d. external