CHAPTER 1

For a business, which of the following would be classified as secondary

objectives?
A. The business’s market share target for next year.
B. The business’s mission statement.
C. The business’s financial objective of owners’ wealth maximization.
D. The business’s stock price increasing.
Câu trả lời đúng: The business’s market share target for next year.
Letting people specialize in what they do best and pool their expertise refer to
which of the organization’s advantages?
A. Time saving.
B. Knowledge sharing.
C. Expertise pooling.
D. Synergy effect.
Câu trả lời đúng: Expertise pooling.
Which of the following stakeholder groups are most likely to put a company
under pressure to improve its profitability?
A. Customers and Employees.
B. Shareholders and Customers.
C. Shareholders and Suppliers.
D. Shareholders and Banks.
Câu trả lời đúng: Shareholders and Banks.
Which of the following is NOT the secondary objectives of a business?
A. Improving productivity.
B. Increasing market share.
C. Improving technology.
D. Increasing firm value.
Câu trả lời đúng: Increasing firm value.
M is a car manufacturer. The company’s put shareholder’s value at the highest
position in business hierarchy. Identify which of the following is the most likely to
be the M’s primary business objective?
A. To double the annual net income in the next 10 years.
B. To be market leader in the next 10 years.
C. To increase the stock’s price by 150% within the next 5 years.
D. To introduce an average of two new products each year for the next 5 years.
Which of the following is the primary objective of non-profit oriented
organizations?
 A. Minimize cost.
B. Minimize wealth.
C. Maximize cost.
D. Consumption of goods and services.
Câu trả lời đúng: Minimize cost.
CHAPTER 2
What is the key difference between market-orientated and product orientated
business?
A. Market-orientated business accepts the needs of potential customers as the basis
for its operations while product-oriented business falls in love with its products.
B. Market-oriented business focuses on making as many units as possible while
product-oriented business focuses on selling as many units as possible.
C. Market-oriented business accepts the needs of potential customers as the basis
for its operations while product-oriented business focuses on selling as many
units as possible.
D. Market-oriented business focuses on making as many units as possible while
product-oriented business focuses on selling as many units as possible
Câu trả lời đúng: Market-orientated business accepts the needs of potential
customers as the basis for its operations while product-oriented business falls in love
with its products.
P Company emphasizes its adoption of the marketing orientation. Which of the
following statements is most likely to be made by its Managing Director?
A. Rather than focusing on product development, we offer discounts on our current
lines to increase sales.
B. We increase sales by spending money on the development of products our
customers want.
C. We put all our effort into persuading customers to buy our products as our sales
targets are of paramount importance.
D. We aim to increase sales by spending to develop products we think are
innovative.
Câu trả lời đúng: We increase sales by spending money on the development of
products our customers want.
Which of the following is the characteristic of marketing orientation? 0/1
A. Businesses accept the need of potential customers as the basis for its operations.
B. Businesses sell more of the product or services which they already have
available.
C. Businesses make as many units as possible.
D. The company falls in love with its product.
Câu trả lời đúng: Businesses accept the need of potential customers as the basis for
its operations.
What is the correct descending order of authority in the management hierarchy?
A. Top managers, First-line managers, Middle managers, Direct operational staff.
B. Top managers, Middle managers, First-line managers, Direct operational staff.
C. Top managers, Middle managers, Direct operational staff, First-line managers.
D. Top managers, First-line managers, Direct operational staff, Middle managers.
Four main tasks of the management process are:
A. Planning, organizing, controlling, and leading.
B. Formulating, implementing, controlling, and leading.
C. Planning, implementing, putting, and leading.
D. Formulating, organizing, putting, and leading.
Câu trả lời đúng: Planning, organizing, controlling, and leading.
The business culture matrix of Robert E Quinn is based on:
A. The combination between business flexibility and control.
B. The combination between business flexibility and looking.
C. The combination between inward and outward-looking.
D. The combination between flexibility-control and in-outward looking.
The culture of a new business unit working with fast-changing technology should
be characterized as:
A. Stable.
B. Flexibility.
C. Inward-looking.
D. Control.
Câu trả lời đúng: Flexibility.
To survive in an environment which requires a high degree of control and is
highly competitive, management should apply the principles of:
A. The rational goal models.
B. The internal process models.
C. Both the rational goal and internal process model.
D. Neither the rational goal nor international process model.
Câu trả lời đúng: The rational goal models.
According to Philip Kotler, marketing mixes refer to:
A. The set of alternatives used for revenue maximization.
B. The set of controllable marketing variables used for responding to target
markets.
C. The set of methodologies used for selling products in target markets.
 D. The set of policies used for penetrating into a new market.
Câu trả lời đúng: The set of controllable marketing variables used for responding to
target markets.
According to the management hierarchy, those characteristics of being
responsible for ensuring performance targets are met by first-line managers?
A. Top managers.
B. Middle managers.
C. Board of directors.
D. Operational staff.
Câu trả lời đúng: Middle managers.
M has been responsible for identifying processes, and technology and arranging
five staff to implement a particular project. In terms of the management process,
M is:
A. Planning.
B. Organizing.
C. Controlling.
D. Leading.
Câu trả lời đúng: Organizing.
Which of the following is the characteristic of top managers?
A. Responsible for ensuring performance targets are met by first-line managers.
B. Responsible for overall direction and performance of the business.
C. Responsible for ensuring direct operational staffs do what is required.
D. Accountable to first-line managers for getting the job done.
Which of the following is the characteristic of direct operational staffs?
A. Responsible for ensuring performance targets are met by first-line managers.
B. Responsible for overall direction and performance of the business.
C. Responsible for ensuring direct operational staffs do what is required.
D. Accountable to first-line managers for getting the job done.
Câu trả lời đúng: Accountable to first-line managers for getting the job done.
Which of the following is NOT the characteristic of direct operational staffs?
A. Accountable to first-line managers for getting the job done.
B. Very numerous in number.
C. Located at the bottom of management hierarchy.
D. Responsible for ensuring performance targets are met by first-line managers.
Câu trả lời đúng: Responsible for ensuring performance targets are met by first-line
managers.
According to Henry Mintzberg, the interpersonal role of managers means:
 A. Checking data received and passing it on to relevant people.
B. Acting as leader for their team and linking with the manager of other teams.
C. Allocating resources to operations.
D. Negotiating for what they need.
Câu trả lời đúng: Acting as leader for their team and linking with the manager of
other teams.
Which of the following is the characteristics of internal process culture?
A. The business looks inwards, aiming to make its internal environment stable and
controlled.
B. The business is structured and controlled so as to deal effectively with the
outside world.
C. The business must be highly flexible and open to new ideas, so it is very
adaptable in structure.
D. The business looks inwards, aiming to maintain its existence and the well-being
of staff in a flexible environment.
Câu trả lời đúng: The business looks inwards, aiming to make its internal
environment stable and controlled.
Which of the following is the characteristics of human relations culture?
A. The business looks inwards, aiming to make its internal environment stable and
controlled.
B. The business is structured and controlled so as to deal effectively with the
outside world.
C. The business must be highly flexible and open to new ideas, so it is very
adaptable in structure.
D. The business looks inwards, aiming to maintain its existence and the well-being
of staff in a flexible environment.
Câu trả lời đúng: The business looks inwards, aiming to maintain its existence and
the well-being of staff in a flexible environment.
What is typical form of business culture of support service units?
A. Internal process culture.
B. Open system culture.
C. Human relations culture.
D. Rational goal culture.
What is typical form of business culture of hi-tech companies?
A. Internal process culture.
B. Open system culture.
C. Human relations culture.
D. Rational goal culture.
Which of the following is the advantage of using intermediaries
 A. No need to share profit margins.
B. Control over ultimate sale.
C. Speed of delivery to ultimate consumer likely to be quicker.
D. More efficient logistically.
Câu trả lời đúng: More efficient logistically.
Pete company organizes a production department using the principles of Taylor’s
“scientific management” model. Which of the following is likely to characterize
the operations of this production department?
A. Job rotation.
B. Manager tells workers what to do.
C. Management delegation of responsibility to frontline workers.
D. Identification of a range of suitable ways of performing a task.
Câu trả lời đúng: Manager tells workers what to do.
What is the major difference between management in a business and in a public
sector organization?
A. A business management makes a set of objectives while management of a
public sector organization does not.
B. A public sector organization requires someone to monitor progress and results
of an organization while a business does not.
C. A business management acts on behalf of owners while a public sector
organization acts on behalf of the government.
D. A business management integrates corporate values, ethics, and operating
principles into management while a public sector organization does not.
When staff managers lack responsibility for the success of their ideas, which of
the following is the best solution?
A. They should communicate regularly with the line manager.
B. They should be involved in implementing their suggestions and share
accountability for outcomes.
C. They should be allowed to use functional authority through procedures and
policies.
D. They should be punished or responsible in case of failure.
Which of the following problems is least likely to happen when a staff manager
advises another manager?
A. Lack of seniority.
B. Lack of realism.
C. Lack of responsibility.
D. Exaggerate the line manager’s authority.
Câu trả lời đúng: Exaggerate the line manager’s authority.
CHAPTER 3
Which of the following is Henry Mintzberg’s building blocks of an organization?
A. Support staff.
B. Functional division.
C. Scalar chain.
D. Supervision.
Which of the following elements is NOT referred in six ‘building blocks’ of Henry
Mintzberg?
A. Operating core.
B. Support staff.
C. Procurement.
D. Technostructure.
Câu trả lời đúng: Procurement.
Which of the following statements about a general partnership is correct?
A. Limited liability of the partners for the business’s debts.
B. Does not have a separate legal existence.
C. Limited risk.
D. Limited return.
Which of the following is NOT likely the feature of a limited company
A. Limited liability of its members.
B. Have a separate legal existence.
C. Perpetual succession.
D. No separation of ownership and control.
Câu trả lời đúng: No separation of ownership and control.
Which of the following is NOT the feature of entrepreneurial structure?
A. Entrepreneur has specialist knowledge of product/service.
B. Entrepreneur has total control over running of the business.
C. Similar to Mintzberg’s simple structure.
D. Business is split into divisions.
Câu trả lời đúng: Business is split into divisions.
Which of the following is the advantage of entrepreneurial structure?
A. Goal congruence.
B. Good career opportunities.
C. Easily cope with diversification into new products.
D. Can expand easily.
Câu trả lời đúng: Goal congruence.
Which of the following is NOT the disadvantages of entrepreneurial structure?
 A. Cannot expand beyond a certain size.
B. Cannot easily cope with diversification into new products.
C. Slow decisions which have to pass along a line of authority.
D. Lack of career structure for lower level employees.
Câu trả lời đúng: Slow decisions which have to pass along a line of authority.
Which of the following is a feature of functional structure?
A. Similar to Mintzberg’s simple structure.
B. Jobs grouped by common feature and ranked in hierarchy.
C. Formalizes vertical and lateral lines of communication.
D. Divisions are typically given responsibility for their profits.
Câu trả lời đúng: Jobs grouped by common feature and ranked in hierarchy.
The divisional structure is most suitable where there is:
A. Larger, more diversified business.
B. One product or a group of similar products.
C. Stable environment, a smaller enterprise.
D. Educational establishments.
Which of the following is NOT the feature of matrix structure?
A. Formalizes vertical and lateral lines of communication.
B. May be temporary.
C. Managers appointed for projects and customers.
D. Similar to Mintzberg’s simple structure.
Câu trả lời đúng: Similar to Mintzberg’s simple structure.
Which of the following is NOT the disadvantage of matrix structure?
A. Conflicting demands on staff time.
B. Conflicting demands over allocation of other resources.
C. Not reflecting importance of project or customer.
D. Dilution of authority of functional heads.
Câu trả lời đúng: Not reflecting importance of project or customer.
Which of the following is the advantage of a sole tradership?
A. Sole trader has flexibility of ‘being their own boss’, taking all the decisions and
getting things done in their own preferred way.
B. There is someone to share the load and less chance of overwork.
C. The separate legal personality of the entity.
D. The limited liability of its members.
Câu trả lời đúng: Sole trader has flexibility of ‘being their own boss’, taking all the
decisions and getting things done in their own preferred way.
The following are features of a partnership, excepting:
 A. Partners take drawings from the business.
B. A share in a partnership is not a form of property and selling it can be difficult.
C. The entity can issue securities to raise funds.
D. There is no perpetual succession.
The following are the advantages of a company, excepting:
A. The separate legal personality of the company.
B. The company does not need to make financial information publicly.
C. The limited liability of its shareholders.
D. Shareholders in a company can sell their shares either to other shareholders or
to outsiders.
Michael is a manager at a large car manufacturing factory. He is responsible for a
team of car production workers who fit seats into the new vehicles. He sets the
team clear targets for seat installations each day, based on the goals handed down
to him by the directors. He monitors performance closely to ensure targets are
met. It is clear that, in terms of Henry Mintzberg’s building blocks, Michael is
part of the organization’s:
A. Operating core.
B. Middle line.
C. Strategic apex.
D. Technostructure.
Câu trả lời đúng: Middle line.
NFR is a company which has recently changed its organizational structure. It
believes that its new structure has a number of major benefits and drawbacks,
including: Gives clear responsibility for different products; Easily adapted for
future diversification; Potential duplication of roles leading to increased cost.
Which of the following structure is NFR most likely to have adopted?
A. Divisional.
B. Functional.
C. Entrepreneurial.
D. Matrix.
Câu trả lời đúng: Divisional.
Mario owns a shop. He has a staff of ten people, all of whom report directly to
him. There are no other managers. Which of the following statements about this
organization is correct?
A. It has a long scalar chain.
B. It has a separation of ownership and control.
C. It has a wide span of control.
D. It is a tall organization.
Câu trả lời đúng: It has a wide span of control.
Debesh and Mayghar are two sole traders who want to amalgamate their
businesses. Both want to retain day-to-day control of their respective operations,
but they do not want to be individually responsible for the full extent of the
merged business’s borrowings. They want to keep their affairs as private as
possible. They should be advised to establish the merged business as:
A. A sole tradership.
B. A public limited company.
C. A limited liability partnership.
D. A private limited company.
Câu trả lời đúng: A limited liability partnership.
Marchmount company is a diversified manufacturing company divided into
several divisions. Each division contains an autonomous product business, with its
own profit and capital investment responsibilities, delegated by the holding
company’s board of directors. Marchmount company’s key organizational
building block will therefore be the:
A. Strategic apex.
B. Technostructure.
C. Middle line.
D. Operating core.
Which of the following would be a typical advantage of a divisional structure?
A. Clear responsibility for different products.
B. Improved goal congruence.
C. Improved control.
D. Rapid decision making.
Câu trả lời đúng: Clear responsibility for different products.
According to Henry Mintzberg, the six building blocks of an organization are
integrated by means of co-ordinating mechanisms. These co ordinating
mechanisms include which of the following?
A. Unity of command.
B. Discipline.
C. Direct supervision.
D. Delegation.
Câu trả lời đúng: Direct supervision.
Martina is a Human Resources Manager with Wardman company. She is
working on a project to increase the spans of control of managers in the
company's largest subsidiary. She needs to identify any factors about the
subsidiary that indicate increases in spans of control are possible. Which of the
following factors identified by Martina suggests that increased spans of control
are possible?
 A. Subordinates carry out very similar tasks.
B. Subordinates are geographically dispersed.
C. Frequent, time-consuming problems arise.
D. Managers are engaged in large amounts of non-supervisory work.
Câu trả lời đúng: Subordinates carry out very similar tasks.
Imperiax company wishes to expand abroad. It has agreed with a foreign
manufacturer of a complementary product to market both products jointly in
both countries. What method of expansion has Imperiax company adopted?
A. A group structure.
B. Agency structure.
C. A strategic alliance.
D. A licensing agreement.
Aiysha works in a factory that makes televisions. Her manager, Delia, sets a
target for how many televisions the team needs to assemble per week. This target
flows from Delia’s own objectives which is set by the directors. Which part of the
organization does Aiysha work for?
A. The middle line.
B. The strategic apex.
C. The technostructure.
D. The operating core.
Câu trả lời đúng: The operating core.
The CEO of Company Z has identified problems caused by the centralized
nature of the company’s decision-making processes. Which of the following
aspects of Company Z are likely to increase the amount of decentralization?
A. The authoritarian style of its management.
B. The effectiveness of communication across the company.
C. The low speed of technological advancement.
D. Its small size.
Company A adopts a tall organizational structure. Which of the following aspects
is likely to present problems for the company?
A. Small groups enable team members to participate in decisions.
B. The same work passes through too many hands.
C. Managers are involved in crisis management if they are overworked.
D. Managers may only get a superficial idea of what goes on.
Company A is being run in the business set up in the technological industry in
which innovation is the critical success factor. Company A provides an online
platform with a complex trading environment for market participants. The
company is being run by competent and flexible operational staff who can deal
with the dynamic external environment and complex tasks. Company A would be
expected to have:
A. A simple structure.
B. A functional structure.
C. A divisional structure.
D. A matrix structure.
Câu trả lời đúng: A matrix structure.
Spitzbergen company wants to decentralize as many aspects of its activities as it
can. However, it is facing difficulties in achieving the required level of
decentralization of the company’s finance function. Which of the following
characteristic is least likely to have created difficulties in achieving
decentralization?
A. Homogeneous financial requirements across the company.
B. The company’s large size.
C. The authoritarian leadership style of the finance director.
D. Poor downward communication.
Company A is being run in the business context of rapid technological changes,
and innovation is considered a key success factor. Which of the following should
the company NOT adopt to be effective in its environment?
A. A Theory X management style.
B. A Theory Y management style.
C. A wide, flat organization structure.
D. Extensive use of delegation.
Câu trả lời đúng: A Theory X management style.
CHAPTER 4
Which of the following determinants least likely belong to the economic factors in
the PESTEL analysis?
A. Business cycles.
B. Interest rates.
C. Inflation.
D. Size of population.
Câu trả lời đúng: Size of population.
Porter’s five forces analysis is used for which of the following step? *
A. External analysis.
B. Internal analysis.
C. Corporate appraisal.
D. Mission, goals, and objectives.
Câu trả lời đúng: External analysis.
SWOT analysis is used for which of the following stage?
A. External analysis.
B. Internal analysis.
C. Corporate appraisal.
D. Mission, goals, and objectives.
Câu trả lời đúng: Corporate appraisal.
Which of the following is NOT included in Porter’s five competitive forces?
A. New entrants.
B. Substitutes.
C. Competitors in the industry.
D. Government.
Câu trả lời đúng: Government.
Which of the following is NOT likely an internal analysis of a company as part of
a strategic analysis?
A. Value chain analysis.
B. Porter’s five forces analysis.
C. The BCG matrix.
D. Analysis of resources and competencies.
Câu trả lời đúng: Porter’s five forces analysis.
Which of the following determinants least likely belong to the technological
factors in the PESTEL analysis?
A. Speed of technology transfer.
B. Competition legislation.
C. Research and development policy.
D. New developments: big data, data analytics.
Câu trả lời đúng: Competition legislation.
Which of the following determinants least likely belong to the social factors in the
PESTEL analysis?
A. Size of population.
B. Age distribution.
C. Exchange rates.
D. Levels of education.
Câu trả lời đúng: Exchange rates.
When is the bargaining power of suppliers is low?
A. Low dependence of a supplier’s sale on a particular buyer.
B. Buyers rely heavily on sales from suppliers.
C. Large number of suppliers relative to buyers.
 D. Substitutes are unavailable.
Câu trả lời đúng: Large number of suppliers relative to buyers.
To be cost leadership, the business should:
A. Minimize the overhead costs.
B. Build up brand image.
C. Put attention on marketing and sales.
D. Improved products offer better performance at a competitive price.
Câu trả lời đúng: Minimize the overhead costs.
Which of the following is most likely a key tool and technique in the corporate
appraisal stage of the strategic analysis?
A. Analysis of distinctive competencies.
B. Porter’s five forces analysis.
C. SWOT analysis.
D. Stakeholder analysis.
Câu trả lời đúng: SWOT analysis.
To be differentiated from existing competitors, the business should:
A. Concentrate on improving productivity.
B. Relocate operations to cheaper countries.
C. Give the product special feature to make it stand out.
D. Set up production facilities to obtain economies of scale.
Which of the following is most likely a key tool and technique in the strategic
options generation?
A. Analysis of resources and competencies.
B. Porter’s five forces analysis.
C. Porter’s generic strategies.
D. Stakeholder analysis.
Câu trả lời đúng: Porter’s generic strategies.
Obbo’s product has high market share in a market that is growing slowly. In term
of BCG matrix, Obbo’s product is:
A. A star.
B. A cash cow.
C. A question mark.
D. A dog.
Câu trả lời đúng: A cash cow.
The strategy development manager of Artiquet company has produced a report
on one of the company’s major product lines. In her report she analyzed the
product using the BCG matrix and adopted the recommendations of the model.
The report concludes that either a ‘harvest’ strategy or a ‘hold’ strategy would be
the optimal course of action for this product. The product must have been
classified as:
A. A star.
B. A cash cow.
C. A question mark.
D. A dog.
Câu trả lời đúng: A cash cow.