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970+ Fundamentals of Economics and Management Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .

601.

This is a supervisory style which involves high-directive–high-supportive behavior (HD–HS) and is appropriate when interacting with moderate-capability employees.

A. autocratic style
B. participative style
C. consultative style
D. laissez-faire style
Answer» C. consultative style
602.

Which of the following management substitutes is characterized by formalization, inflexibility, and closely knit work groups?

A. Characteristics of subordinates.
B. Characteristics of managers.
C. Characteristics of the organization.
D. Characteristics of task.
Answer» C. Characteristics of the organization.
603.

Being conscientious, admitting mistakes, and knowing one's strengths and limitations are the skills associated with _______.

A. Competence
B. consistency
C. loyalty
D. integrity
Answer» A. Competence
604.

The leader's behavior actually makes the leader's style.

A. True
B. False
C. none
D. none
Answer» A. True
605.

Only managers can be true leaders, because they have the ability to influence others.

A. True
B. False
C. none
D. none
Answer» B. False
606.

Transformational leadership focuses on middle and first line managers.

A. True
B. False
C. none
D. none
Answer» B. False
607.

To determine whether one's leadership style is task- or relationship-oriented, the leader must fill in the Least Coworker Participation (LCP) scale.

A. True
B. False
C. none
D. none
Answer» B. False
608.

The supportive style is largely absent in the autocratic supervisory style.

A. True
B. False
C. none
D. none
Answer» A. True
609.

Which of the following statements about leadership is false?

A. Leadership does not necessarily take place within a hierarchical structure of an organisation.
B. Not every leader is a manager.
C. When people operate as leaders their role is always clearly established and define
D. All the above.
Answer» C. When people operate as leaders their role is always clearly established and define
610.

Within an organisation, leadership influence will be dependent upon the type of ________ that the leader can exercise over the followers.

A. Power
B. friendship
C. knowledge
D. delegation
Answer» A. Power
611.

Which of the following sources of power are among those identified by French and Raven?

A. Reward power
B. Referent power
C. Expert power
D. All the above
Answer» D. All the above
612.

Legitimate power is based on the subordinate‟s perception that the leader has a right to exercise influence because of the leader‟s

A. role or position within the organisation
B. ability to punish or reward
C. personal characteristics and personality
D. expertise and knowledge
Answer» A. role or position within the organisation
613.

The functional approach to leadership emphasises that

A. the various functions of leadership cannot be shared among members of a group
B. leadership resides in a particular person and not in the functions
C. both of the above
D. neither of the above
Answer» D. neither of the above
614.

Adair claims that the effectiveness of a leader is dependent upon meeting ________areas of need within the work group.

A. three
B. four
C. two
D. none of the above
Answer» A. three
615.

Needs such as training the group, setting standards and maintaining discipline, and appointing subleaders may be called

A. individual functions
B. task functions
C. team functions
D. work functions
Answer» C. team functions
616.

Results of the Ohio State Leadership studies indicated that there are two major dimensions of leadership behaviour. What are they?

A. Achievement and structure
B. Consideration and structure
C. Consideration and power
D. Achievement and power
Answer» B. Consideration and structure
617.

Which of the following qualities did the University of Michigan Institute for Social Research find in effective supervisors?

A. Participative problem solving.
B. Delegation of authority.
C. An interest and concern for subordinates.
D. All the above.
Answer» D. All the above.
618.

The ______________ style of leadership is where the focus of power is with the manager. The manager alone exercises decision-making, authority and the control of rewards or punishments.

A. democratic
B. laissez-faire
C. authoritarian
D. None of the above
Answer» C. authoritarian
619.

Tannenbaum and Schmidt‟s continuum of possible leadership behaviour identifies four main styles of leadership by the manager. What are they?

A. Commands, helps, joins and leads
B. Tells, sells, consults and joins
C. Tells, helps, joins and leads
D. Commands, sells, consults and resists
Answer» B. Tells, sells, consults and joins
620.

Contingency theories of leadership are based on the belief that

A. there is no single style of leadership appropriate to all situations
B. there is a single style of leadership appropriate to all managers
C. there is a single style of leadership appropriate to all situations
D. none of the above
Answer» A. there is no single style of leadership appropriate to all situations
621.

Vroom and Yetton‟s contingency model of leadership is based on certain aspects of a leader‟s decision, they are

A. decision quality
B. decision acceptance
C. both of the above
D. neither of the above
Answer» C. both of the above
622.

Another contingency model of leadership is the path-goal theory. This suggests that subordinates will see leadership behaviour as a motivating influence if

A. their effective performance will satisfy their needs
B. the necessary direction, guidance, training and support is provided
C. path-goal relationships are clarified
D. all the above
Answer» D. all the above
623.

Hersey and Blanchard present a form of situational leadership based on the ___________ of the people the leader is attempting to influence.

A. Readiness
B. personality
C. intelligence
D. motivation
Answer» A. Readiness
624.

When determining the most appropriate form of leadership, which of the following should be considered?

A. The manager
B. The group
C. The work environment
D. All the above
Answer» D. All the above
625.

The following four different approaches to management thinking were developed in the first half of the 20th century:

A. Scientific management, general administrative, quantitative, and contingency approach.
B. Scientific management, general administrative, quantitative, and organizational behavior.
C. General administrative, globalization, organizational behavior, and quantitative.
D. Systems approach, scientific management, general administrative, and organizational behaviour.
Answer» B. Scientific management, general administrative, quantitative, and organizational behavior.
626.

When we classify managers according to their level in the organization they are described as _______.

A. Functional, staff and line managers
B. Top managers, middle managers and supervisors
C. High level and lower level managers
D. General managers and administrative managers
Answer» B. Top managers, middle managers and supervisors
627.

Frederick Taylor and Frank and Lillian Gilbreth were advocates of an approach to management involving the use of scientific method, known as:

A. The quantitative approach.
B. Management science.
C. Scientific management.
D. The contingency approach.
Answer» C. Scientific management.
628.

Authority, discipline, unity of command, and unity of direction are:

A. Taylor's four principles of management.
B. Principles of the human relations movement.
C. Elements of Weber's ideal bureaucratic structure.
D. Four of Fayol's fourteen principles of management.
Answer» D. Four of Fayol's fourteen principles of management.
629.

Some of the other fields of study that affect management theory or practice include:

A. Political science, philosophy, anthropology and sociology
B. Zoology, psychology, sociology and philosophy.
C. Anthropology, astrology, political science and psychology.
D. Political science, sociology, typography and economics.
Answer» A. Political science, philosophy, anthropology and sociology
630.

The philosophy of management known as total quality management developed primarily out of the work of:

A. Henri Fayol
B. Frederick Taylor
C. Robert McNamara
D. W. Edwards Deming
Answer» D. W. Edwards Deming
631.

Possibly the most important pre-20th century influence on management was:

A. Therbligs
B. The industrial revolution.
C. Scientific management.
D. The division of labor.
Answer» B. The industrial revolution.
632.

________________ need involves the desire to affiliate with and be accepted by others.

A. Esteem
B. Belongingness
C. Safety
D. Self Actualization
Answer» B. Belongingness
633.

Needs that impel creativity and innovation, along with the desire to have a productive impact on our surroundings are ___________ needs.

A. Existence
B. Relatedness
C. Growth
D. None of the Above
Answer» C. Growth
634.

Division of labor, authority hierarchy, formal selection, formal rules and regulations, impersonality, and career orientation are all features of:

A. Weber's ideal type bureaucracy.
B. General administrative theory.
C. Fayol's principles of management.
D. Taylor's principles of management.
Answer» A. Weber's ideal type bureaucracy.
635.

The decision-making model consists of four styles: directive, analytic, behavioral and _______________.

A. Conceptual
B. Intuitive
C. Group interaction
D. Laggard
Answer» A. Conceptual
636.

________ is characteristic of liquidity ratios.

A. Organization’s ability to meet its current debt obligations
B. Organization’s use of debt to finance its assets and whether it’s able to meet the interest payments on the debt
C. How efficiently the firm is using its assets
D. None of given options
Answer» A. Organization’s ability to meet its current debt obligations
637.

__________ is a communication that flows from a higher level to one or more lower levels in the organization.

A. Horizontal communication
B. Upward communication
C. Downward communication
D. None of given options
Answer» D. None of given options
638.

1st stage of group development is ____________.

A. Storming
B. Norming
C. Forming
D. Performing
Answer» C. Forming
639.

_____ is an individual's capacity to influence decisions

A. Span of control
B. Line authority
C. Staff authority
D. Power
Answer» D. Power
640.

An organizational design with low departmentalization, wide spans of control, authority centralized in a single person and little formalization are characteristics of ________.

A. Simple structure
B. Functional structure
C. Divisional structure
D. None of given option
Answer» A. Simple structure
641.

__________ is the form of departmentalization that groups similar jobs and activities into departments.

A. A product structure
B. A divisional structure
C. A matrix structure
D. A functional structure
Answer» D. A functional structure
642.

The main influence on the behavioral science theories were:

A. Psychology and sociology.
B. Sociology and bureaucracy.
C. Sociology and science.
D. Bureaucracy and psychology.
Answer» A. Psychology and sociology.
643.

ERG theory was introduced by _____________.

A. Clayton Alderfer
B. McClelland
C. Douglas McGregor
D. J. Stacey Adams
Answer» A. Clayton Alderfer
644.

__________ is counter to goal-setting theory.

A. Expectancy Theory
B. Reinforcement Theory
C. ERG Theory
D. None of given option
Answer» B. Reinforcement Theory
645.

Autocratic, Democratic and Laissez-faire leader behavior styles were introduced by _________.

A. University of Iowa researcher
B. Michigan Studies
C. Ohio State Studies
D. None of given option
Answer» A. University of Iowa researcher
646.

The difference between an e-business enhanced organization and an e-business enabled organization is:

A. Only an e-business enhanced organization uses the Internet.
B. Only an e-business enhanced organization relies on an intranet.
C. Only e-business enhanced organizations use e-business tools and applications.
D. Only e-business enhanced organizations have e-business units within their organization.
Answer» D. Only e-business enhanced organizations have e-business units within their organization.
647.

__________ is not one of the eight steps in the decision making process.

A. Identifying the problem
B. Analyzing alternative solutions
C. Implementing the decision
D. Delegating the decision making
Answer» D. Delegating the decision making
648.

__________ is the capacity to affect the behaviors of others.

A. Leadership
B. Power
C. Trait
D. Aggression
Answer» B. Power
649.

Which of the following is NOT associated with learning organizations or knowledge management?

A. COIN
B. A recommended response to a rapidly changing world
C. Systematic gathering and sharing of useful information.
D. PSTN
Answer» D. PSTN
650.

Surroundings are ___________ needs.

A. Existence
B. Relatedness
C. Growth
D. None of the Above
Answer» C. Growth

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