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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 .

701.

Which of the following trends is gaining momentum?

A. Using less departmentalization
B. Geographical departmentalization
C. Using only one type of departmentalization
D. Using more customer departmentalization
Answer» D. Using more customer departmentalization
702.

The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom is termed………

A. Unity of command
B. Authority
C. Power and authority structure
D. Chain of command
Answer» D. Chain of command
703.

What is span of control?

A. empowering lower-level employees
B. concentrating decision-making on one specific point in the organization
C. centralization
D. number of subordinates a manager can effectively direct
Answer» D. number of subordinates a manager can effectively direct
704.

Centralization refers to………..

A. The degree to which decision-making is concentrated at a single point in the organization
B. The development and maintenance of power in the organization
C. The decision-making process
D. The geographic dispersion of an organization
Answer» A. The degree to which decision-making is concentrated at a single point in the organization
705.

In an organization that has high centralization……………

A. Problem can be quickly and efficiently solved
B. The corporate headquarters is located centrally to branch offices
C. Top managers make all the decisions-lower-level managers merely carry out directions
D. All top-level officials are located within the same geographic area
Answer» C. Top managers make all the decisions-lower-level managers merely carry out directions
706.

The degree to which jobs within an organization are standardized is referred to as……..

A. job variation
B. routineness
C. formalization
D. centralization
Answer» C. formalization
707.

In a highly formalized organization, job behaviours are relatively

A. Non programmed
B. Non-existent
C. Programmed
D. Discretionary
Answer» C. Programmed
708.

Employee discretion is inversely related to……….

A. Centralization
B. Standardization
C. Complexity
D. Decentralization
Answer» B. Standardization
709.

Which of the following structures is characterized by centralization, high formalization, extensive departmentalization, and a limited information network?

A. Technology model
B. Mechanistic model
C. Job satisfaction model
D. Organic model
Answer» B. Mechanistic model
710.

If there is low formalization, a comprehensive information network and high participation in decisionmaking, one would expect…………….

A. A mechanistic structure
B. A typical government organization
C. A stable structure
D. An organic structure
Answer» D. An organic structure
711.

Which of the following is characterized by wide spans of control, little formalization, a low degree of departmentalization, and authority centralized in a single person……………

A. Bureaucracy
B. Simple structure
C. Matrix organization
D. Mechanistic structure
Answer» B. Simple structure
712.

Which organization is characterized by very formal rules, centralized authority, and narrow spans of control?

A. Boundaryless
B. Matrix
C. Virtual
D. Bureaucracy
Answer» D. Bureaucracy
713.

The matrix structure combines which two forms of departmentalization?

A. Simple And functional
B. Functional and product
C. Virtual and team
D. Product and organic
Answer» B. Functional and product
714.

Which of the following problems is most likely to occur in a matrix structure?

A. Decreased employee motivation
B. Employees receiving conflicting directives
C. Decreased response to environmental change
D. Decreased coordination
Answer» B. Employees receiving conflicting directives
715.

Which structure breaks down departmental barriers and decentralizes decision-making to the level of the work team?

A. Boudaryless
B. Feminine
C. Team
D. Virtual
Answer» C. Team
716.

Which type of organization outsources major business functions?

A. Modular
B. Innovation
C. Virtual
D. Feminine
Answer» A. Modular
717.

The innovation strategy is characterized by………………

A. A mixture of loose with tight properties
B. Looser controls for new undertakings
C. Low specialization and low formalization
D. Tight controls over current activity
Answer» C. Low specialization and low formalization
718.

A continually evolving network of independent companies, suppliers, customers, even competitors, linked together to share skills, costs, and access to one another‟s markets is called a/an………………….

A. Virtual organization
B. Boundaryless organization
C. Modular organization
D. Integrated organization
Answer» A. Virtual organization
719.

An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams is called a/an………..

A. Cooperative organization
B. Virtual organization
C. Boundaryless organization
D. Modular organization
Answer» C. Boundaryless organization
720.

Which dimension of an organization‟s environment refers to the degree to which it can support growth?

A. Volatility
B. Technology
C. Capacity
D. Complexity
Answer» C. Capacity
721.

Neoclassical economics concerns itself with the determination of various prices. In the branch of Microeconomics, economists are concerned with _________, while in Macroeconomics they consider _________

A. Price rises: price falls
B. Real prices: nominal prices
C. Individual product prices: the aggregate price level
D. Costs to consumers: costs to producer
Answer» C. Individual product prices: the aggregate price level
722.

The Keynesian productivity deal………

A. called for the active intervention of the state to stimulate growth in productivity and output
B. linked increases in wages to increases in productivity so that wages and profits could both rise
C. linked increases in wages to increases in productivity so that wages and profits could both rise
D. all of the above
Answer» D. all of the above
723.

The field of economics that is now called Macroeconomics grew out of the era of the Great Depression, which saw the economy experience a prolonged downturn and persistent high unemployment. Classical economics could not explain these problems because its models assumed all of the following EXCEPT

A. prices are flexible
B. recessions were self correcting
C. wages would adjust in the labor market, thereby eliminating unemployment
D. the government should intervene in the economy
Answer» D. the government should intervene in the economy
724.

During the downturn portion of a business cycle, the economy is characterized by

A. rising unemployment and rising investment
B. falling unemployment and falling output
C. rising profits and falling wages
D. falling output and rising unemployment
Answer» D. falling output and rising unemployment
725.

Changes in behavior as a result of observation and manipulation of conditions in an environment are termed…………….

A. The Hawthorne effect
B. Group dynamic
C. Social influence
D. Sociometry
Answer» A. The Hawthorne effect
726.

Members within a group that share similar experiences and feelings are known to have………….

A. Process
B. Universal
C. Content
D. Conflict
Answer» B. Universal
727.

An important factor of the preplanning stage in group dynamics is determining what the group is to accomplish; this is known as…………………

A. Goal setting
B. Cohesion
C. Clarity of purpose
D. Group orientation
Answer» C. Clarity of purpose
728.

……………………………..Groups have members who have similar presenting problems or are similar in gender, ethnicity, or social backgroun(d)

A. Heterogeneous
B. Ideal
C. Dynamic
D. Homogeneous
Answer» D. Homogeneous
729.

Role _________________ is a conflict between the role an individual has outside the group and the role he or she is expected to have in the group.

A. Collision
B. Transition
C. Confusion
D. Incompatibility
Answer» A. Collision
730.

Yalom's curative factors within a group often affect the interactions of members and the group as a whole in complex ways. As members begin experiencing and expressing feelings, Yalom would assert that __________ is the curative factor.

A. Catharsis
B. Altruism
C. Interpersonal learning
D. Existential factor
Answer» A. Catharsis
731.

In Glass and Benshoff's (1999) PARS model, which conceptualizes "processing" in group work, PARS is an acronym in which "S" stands for

A. System
B. Sociometry
C. Subgrouping
D. Self
Answer» D. Self
732.

In setting up a group structure, _______________ has a strong influence on how a group operates.

A. Membership
B. Group setting
C. Physical structure
D. Group content
Answer» C. Physical structure
733.

Which role in a group setting contributes to the social-emotional bonding of members and the group's overall success?

A. Facilitative/building role
B. Individualizing
C. Maintenance
D. Blocking
Answer» C. Maintenance
734.

"To understand communication in a meeting, we need to investigate the roles, personalities and values of every participant, as well as review the minutes taken and actions resulting from previous meetings." Which of Trenholm's perspectives is described here?

A. Socio-phychological
B. Cybernetic
C. Psychosocial
D. Pragmatic
Answer» D. Pragmatic
735.

What term did Lengl and Daft use for failure when face-to-face talking is used to convey routine messages?

A. Data richness
B. Channel richness
C. Data processing
D. Data glut
Answer» D. Data glut
736.

What is redundancy in messages?

A. Information that recipient has already receive
B. Extra information to persuade the receiver to accept and act upon the message
C. Parts of the message that have no meaning and could be eliminated
D. Message that have no purpose and need not be retained
Answer» B. Extra information to persuade the receiver to accept and act upon the message
737.

According to the text, why should more attention be given to training in listening to oral communication?

A. Responsibility for effective communication is usually assigned to the sender
B. Evaluating the speaker seems easier than evaluating the audience
C. Presentation Is thought of as a one way process
D. All of the above
Answer» D. All of the above
738.

Which of the following was presented as a listening skill?

A. Use open-ended question
B. Hold feedback until it is asked for
C. Concentrate on the whole message, not just the highlights
D. None of the these items
Answer» A. Use open-ended question
739.

Which of the factors listed below is not a reason for decision making in organizations being a complex process?

A. People have to make decisions in a historical context
B. Several stakeholders will have an interest in the decision
C. Modern information systems enable people to evaluate a range of possible outcomes
D. Factors in the current context of the organization affect the decision
Answer» C. Modern information systems enable people to evaluate a range of possible outcomes
740.

The overall process of decision making in, for example, staff selection includes which of these stages?

A. Deciding which candidate to appoint
B. Identifying the need for a new member of staff
C. Agreeing the job specification
D. All of the above
Answer» D. All of the above
741.

A manager who is helping a customer return some shoes they purchased last week is dealing with what type of decision?

A. Non-programmed decision
B. Uncertainty
C. Bounded rationality
D. Programmed decision
Answer» D. Programmed decision
742.

A solution to a problem that is arrived at through an unstructured process of decision making is called a…………..

A. Bounded rationality
B. Non-programmed decision
C. Programmed decision
D. Uncertainty
Answer» C. Programmed decision
743.

As a manager moves to higher positions in an organisation the ability to make ______ becomes ______ important.

A. Non-programmed; more
B. Programmed; more
C. Non-programmed; less
D. Programmed; much more
Answer» A. Non-programmed; more
744.

If a manager at Wipro wants to award a contract for printing the company's promotional literature and has obtained quotations from several printers, the manager can select a printer and know with ______ what the printing should cost.

A. Ambiguity
B. Risk
C. Uncertainty
D. Certainty
Answer» D. Certainty
745.

In Herbert Simon's theory, a manager who accepts the first satisfactory solution to a problem has made a ______ decision, while a manager who continues to search for the best possible solution is seeking to find a ______ decision

A. Maximising; satisficing
B. Minimising; maximizing
C. Satisficing; maximising
D. Maximising; minimizing
Answer» B. Minimising; maximizing
746.

The decision making model which emphasises that organisations contain diverse interest groups who will bargain about goals and alternative actions, often with incomplete information is known as the…………

A. Inspirational or garbage can model
B. Political model
C. Administrative or incremental model
D. Computational and rational model
Answer» B. Political model
747.

Which of the following is not among the reasons for complexity of decisions?

A. Individuals have different risk propensities.
B. There are many criteria for making choices.
C. Decisions have immediate, short-term impact.
D. Managers often share decisions.
Answer» C. Decisions have immediate, short-term impact.
748.

Max Weber, a German sociologist, showed particular concern for

A. social structures
B. flexible structures
C. bureaucratic structures
D. personalised structures
Answer» C. bureaucratic structures
749.

In the context of decision making, which of the following best describes a heuristic?

A. A rule that a person relies upon to assess or categorise choices.
B. One of many personal learned rules that a person applies in the process of decision making.
C. A fixed set of internal rules that a person uses when making a decision.
D. An attitude that prefers to look at a question as a whole.
Answer» B. One of many personal learned rules that a person applies in the process of decision making.
750.

The company announcement: SUCCESFUL SALE OF PLANT: 75 PER CENT OF 1,000 JOBS TO BE SAVED! The local newspaper headline: 250 JOBS TO GO AT PROCESSING PLANT What is illustrated here?

A. Availability heuristic
B. Judgemental bias
C. Overconfidence
D. Framing error
Answer» D. Framing error

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