IM Multiple Choice Questions

Multiple Choice Questions (MCQs) on Basic Concepts of Management

1. What is the primary characteristic of a formal organization?

 A. It focuses on social goals of members.

 B. It has a loosely defined structure.

 C. It has a well-defined structure for achieving organizational

goals.

 D. It operates without any predefined goals.

Answer: C

Explanation: A formal organization is characterized by a clear

structure aimed at achieving specific organizational goals, unlike an
informal organization that focuses on social goals.

2. Which of the following is NOT considered an organizational

resource?

 A. Human resources

 B. Financial resources

 C. Physical resources

 D. Emotional resources

Answer: D

Explanation: Organizational resources typically include human,

financial, physical, and informational resources. Emotional
resources do not fall under this category.

3. Management involves a set of activities. Which of the following is

NOT one of them?

 A. Planning and decision-making

 B. Organizing
  C. Leading

 D. Relaxing

Answer: D

Explanation: The primary activities in management are planning,

organizing, leading, and controlling.

4. Which management activity focuses on setting objectives and

determining a course of action?

 A. Controlling

 B. Organizing

 C. Planning

 D. Leading

Answer: C

Explanation: Planning involves setting goals and deciding the steps

to achieve them.

5. In which managerial level are strategies typically developed?

 A. Top managers

 B. Middle managers

 C. First-line managers

 D. Operating employees

Answer: A

Explanation: Top managers are responsible for the strategic level of

management and overall direction of the organization.

6. What is the role of middle managers?

 A. Develop organizational strategies

 B. Implement strategies developed at the top level

  C. Supervise operating employees

 D. Handle only social goals

Answer: B

Explanation: Middle managers play a crucial role in implementing

strategies developed by top management.

7. Which of the following best describes first-line managers?

 A. They oversee the overall organization.

 B. They coordinate and supervise the activities of operating

employees.

 C. They develop long-term goals for the company.

 D. They primarily focus on planning and decision-making.

Answer: B

Explanation: First-line managers directly supervise operating

employees and handle day-to-day operations.

Scenario-Based Question:

8. A new company is forming a team to handle daily operations.

Who should the company appoint to ensure the smooth coordination
of tasks among employees?

 A. Top manager

 B. Middle manager

 C. First-line manager

 D. Strategic consultant

Answer: C

Explanation: First-line managers are responsible for supervising and

coordinating the activities of operating employees.

9. Which of the following is a key goal of management?

  A. To achieve organizational goals efficiently and effectively

 B. To ensure employees work overtime

 C. To reduce organizational resources

 D. To focus solely on human resources

Answer: A

Explanation: Management aims to use resources effectively and

efficiently to achieve organizational goals.

10. What does the term "informal organization" refer to?

 A. A structure created to achieve formal organizational goals

 B. A loosely defined structure focusing on the social goals of

members

 C. A system for achieving financial objectives

 D. A rigid system of authority and responsibilities

Answer: B

Explanation: Informal organizations are based on social

relationships and do not have a well-defined structure or goals like
formal organizations.

11. Which resource category includes tools, equipment, and office

space?

 A. Human resources

 B. Financial resources

 C. Physical resources

 D. Informational resources

Answer: C

Explanation: Physical resources encompass tangible assets such as

tools, equipment, and office facilities.
12. What does the "controlling" function of management involve?

 A. Motivating employees to work harder

 B. Ensuring that organizational goals are met by monitoring

and correcting performance

 C. Allocating resources for tasks

 D. Forming an informal structure

Answer: B

Explanation: Controlling ensures that organizational activities meet

the planned goals by monitoring performance and making necessary
adjustments.

Objective Question:

13. Match the following management functions with their

descriptions:

1. Planning A. Monitoring and correcting performance

2. Organizing B. Setting goals and deciding on actions

3. Leading C. Motivating and guiding employees

4. Controlling D. Structuring work and resources

Answer:

 1-B

 2-D

 3-C

 4-A
Multiple Choice Questions (MCQs) on Managing and the Manager’s
Job

1. Which of the following is NOT an interpersonal role of a manager?

 A. Figurehead

 B. Leader

 C. Liaison

 D. Resource Allocator

Answer: D

Explanation: Resource Allocator is a decisional role, not an

interpersonal role. Interpersonal roles include figurehead, leader,
and liaison.

2. In which role does a manager act as a symbolic head of the

organization?

 A. Monitor

 B. Disseminator

 C. Figurehead

 D. Entrepreneur

Answer: C

Explanation: As a figurehead, the manager performs ceremonial and

symbolic duties.

3. Which of the following managerial roles involves transmitting

information to members of the organization?

 A. Spokesperson

 B. Disseminator

 C. Liaison

 D. Monitor
Answer: B

Explanation: The disseminator role involves sharing internal

information with subordinates and others in the organization.

4. A manager handling conflicts within the organization is

performing which decisional role?

 A. Negotiator

 B. Resource Allocator

 C. Disturbance Handler

 D. Entrepreneur

Answer: C

Explanation: As a disturbance handler, the manager resolves

conflicts and addresses unexpected issues.

5. Which of the following skills is most important for first-line

managers?

 A. Conceptual skills

 B. Technical skills

 C. Time management skills

 D. Diagnostic skills

Answer: B

Explanation: First-line managers require strong technical skills

because they directly supervise employees performing specific
tasks.

6. What is the primary focus of conceptual skills for managers?

 A. Understanding and working with technology

 B. Resolving interpersonal conflicts

 C. Analyzing complex situations and developing solutions

  D. Effective communication with team members

Answer: C

Explanation: Conceptual skills involve the ability to think

analytically, see the big picture, and solve complex problems.

7. In the spokesperson role, who is the manager representing?

 A. Internal employees only

 B. The organization to outsiders

 C. Only the board of directors

 D. The government

Answer: B

Explanation: As a spokesperson, the manager represents the

organization to external stakeholders.

Scenario-Based Question:

8. A manager is negotiating a contract with a supplier to ensure

timely delivery of raw materials. Which managerial role is the
manager performing?

 A. Resource Allocator

 B. Negotiator

 C. Monitor

 D. Entrepreneur

Answer: B

Explanation: The negotiator role involves bargaining and

negotiating on behalf of the organization.

9. Which skill is crucial for diagnosing problems and developing

appropriate solutions?

 A. Technical skills
  B. Diagnostic skills

 C. Interpersonal skills

 D. Communication skills

Answer: B

Explanation: Diagnostic skills help managers identify issues and

determine the best course of action.

10. Which of the following describes time management skills?

 A. Ability to handle conflicts effectively

 B. Managing and prioritizing tasks to use time effectively

 C. Understanding the technical aspects of the job

 D. Communicating effectively with stakeholders

Answer: B

Explanation: Time management skills involve organizing and

prioritizing tasks to make the best use of time.

11. Match the following managerial roles with their categories:

1. Monitor A. Interpersonal

2. Entrepreneur B. Decisional

3. Spokesperson C. Informational

4. Leader D. Interpersonal

Answer:

 1-C
  2-B

 3-C

 4-A

Multiple Choice Questions (MCQs) on Managing and the Manager’s

Job & History of Management

Section 1: Managing and the Manager’s Job

1. Which of the following is NOT an interpersonal role of a manager?

 A. Figurehead

 B. Leader

 C. Liaison

 D. Resource Allocator

Answer: D

Explanation: Resource Allocator is a decisional role, not an

interpersonal role. Interpersonal roles include figurehead, leader,
and liaison.

2. In which role does a manager act as a symbolic head of the

organization?

 A. Monitor

 B. Disseminator

 C. Figurehead

 D. Entrepreneur

Answer: C

Explanation: As a figurehead, the manager performs ceremonial and

symbolic duties.
3. Which of the following managerial roles involves transmitting
information to members of the organization?

 A. Spokesperson

 B. Disseminator

 C. Liaison

 D. Monitor

Answer: B

Explanation: The disseminator role involves sharing internal

information with subordinates and others in the organization.

4. A manager handling conflicts within the organization is

performing which decisional role?

 A. Negotiator

 B. Resource Allocator

 C. Disturbance Handler

 D. Entrepreneur

Answer: C

Explanation: As a disturbance handler, the manager resolves

conflicts and addresses unexpected issues.

5. Which of the following skills is most important for first-line

managers?

 A. Conceptual skills

 B. Technical skills

 C. Time management skills

 D. Diagnostic skills

Answer: B
Explanation: First-line managers require strong technical skills
because they directly supervise employees performing specific
tasks.

6. What is the primary focus of conceptual skills for managers?

 A. Understanding and working with technology

 B. Resolving interpersonal conflicts

 C. Analyzing complex situations and developing solutions

 D. Effective communication with team members

Answer: C

Explanation: Conceptual skills involve the ability to think

analytically, see the big picture, and solve complex problems.

7. In the spokesperson role, who is the manager representing?

 A. Internal employees only

 B. The organization to outsiders

 C. Only the board of directors

 D. The government

Answer: B

Explanation: As a spokesperson, the manager represents the

organization to external stakeholders.

Scenario-Based Question:

8. A manager is negotiating a contract with a supplier to ensure

timely delivery of raw materials. Which managerial role is the
manager performing?

 A. Resource Allocator

 B. Negotiator

 C. Monitor
  D. Entrepreneur

Answer: B

Explanation: The negotiator role involves bargaining and

negotiating on behalf of the organization.

9. Which skill is crucial for diagnosing problems and developing

appropriate solutions?

 A. Technical skills

 B. Diagnostic skills

 C. Interpersonal skills

 D. Communication skills

Answer: B

Explanation: Diagnostic skills help managers identify issues and

determine the best course of action.

10. Which of the following describes time management skills?

 A. Ability to handle conflicts effectively

 B. Managing and prioritizing tasks to use time effectively

 C. Understanding the technical aspects of the job

 D. Communicating effectively with stakeholders

Answer: B

Explanation: Time management skills involve organizing and

prioritizing tasks to make the best use of time.

11. Match the following managerial roles with their categories:

1. Monitor A. Interpersonal


 2. Entrepreneur B. Decisional

3. Spokesperson C. Informational

4. Leader D. Interpersonal

Answer:

 1-C

 2-B

 3-C

 4-A

Section 2: History of Management

12. Who is known as the Father of Scientific Management?

 A. Henry Fayol

 B. Frederick Taylor

 C. Max Weber

 D. Frank Gilbreth

Answer: B

Explanation: Frederick Taylor is considered the Father of Scientific

Management due to his work on improving individual worker
productivity.

13. Which contributor to scientific management developed the Gantt

chart?

 A. Henry Gantt

 B. Frank Gilbreth

 C. Frederick Taylor

 D. Max Weber
Answer: A

Explanation: Henry Gantt is known for creating the Gantt chart, a

tool used for project management.

14. Administrative management focuses on managing what aspect

of an organization?

 A. Individual workers

 B. The total organization

 C. External stakeholders

 D. Technological processes

Answer: B

Explanation: Administrative management, pioneered by Henry

Fayol, focuses on managing the organization as a whole.

15. According to Henry Fayol, what principle of management states

that each employee should have only one direct supervisor?

 A. Unity of Direction

 B. Scalar Chain

 C. Unity of Command

 D. Division of Work

Answer: C

Explanation: Unity of Command ensures that each employee reports

to only one manager, preventing conflicting instructions.

16. Which principle of management emphasizes minimizing lost time

and ensuring proper handling of materials?

 A. Equity

 B. Order

 C. Initiative
  D. Remuneration

Answer: B

Explanation: The principle of Order focuses on maintaining both

material and social order in the organization.

17. Match the following contributors with their contributions:

1. Frederick Taylor A. Scientific Management

2. Henry Fayol B. Administrative Management

3. Henry Gantt C. Gantt Chart

4. Frank and Lillian Gilbreth D. Therblig analysis

Answer:

 1-A

 2-B

 3-C

 4-D

Multiple Choice Questions (MCQs) on History of Management

1. Who is known as the Father of Scientific Management?

 A. Henry Fayol

 B. Frederick Taylor

 C. Max Weber

 D. Frank Gilbreth
Answer: B

Explanation: Frederick Taylor is considered the Father of Scientific

Management due to his work on improving individual worker
productivity.

2. Which contributor to scientific management developed the Gantt

chart?

 A. Henry Gantt

 B. Frank Gilbreth

 C. Frederick Taylor

 D. Max Weber

Answer: A

Explanation: Henry Gantt is known for creating the Gantt chart, a

tool used for project management.

3. Administrative management focuses on managing what aspect of

an organization?

 A. Individual workers

 B. The total organization

 C. External stakeholders

 D. Technological processes

Answer: B

Explanation: Administrative management, pioneered by Henry

Fayol, focuses on managing the organization as a whole.

4. According to Henry Fayol, what principle of management states

that each employee should have only one direct supervisor?

 A. Unity of Direction

 B. Scalar Chain
  C. Unity of Command

 D. Division of Work

Answer: C

Explanation: Unity of Command ensures that each employee reports

to only one manager, preventing conflicting instructions.

5. Which principle of management emphasizes minimizing lost time

and ensuring proper handling of materials?

 A. Equity

 B. Order

 C. Initiative

 D. Remuneration

Answer: B

Explanation: The principle of Order focuses on maintaining both

material and social order in the organization.

6. Which principle of management states that specialization allows

employees to improve their skills and efficiency?

 A. Division of Work

 B. Unity of Command

 C. Equity

 D. Remuneration

Answer: A

Explanation: Division of Work emphasizes specialization, which

enables employees to gain experience and become more productive.

7. What does the principle of Equity emphasize in an organization?

 A. Clear hierarchy and authority

  B. Fair and kind treatment of employees

 C. Minimizing lost time

 D. Allowing employees to take initiative

Answer: B

Explanation: The principle of Equity emphasizes fairness and

kindness, ensuring that employees are treated well to maintain
morale and loyalty.

8. Which of the following is an example of Centralization in

management?

 A. Allowing employees to make decisions

 B. Decision-making concentrated at the top level

 C. Sharing decision-making authority with lower levels

 D. Employees working in teams

Answer: B

Explanation: Centralization refers to concentrating decision-making

authority at the top levels of the hierarchy.

9. Which of the following best describes Scalar Chain?

 A. A chain of suppliers in the organization

 B. A hierarchy of authority from top management to the lowest

level

 C. A system for distributing incentives

 D. A method for setting goals

Answer: B

Explanation: Scalar Chain refers to the line of authority in an

organization, ensuring a clear chain of command from top to
bottom.
10. Match the following contributors with their contributions:

1. Frederick Taylor A. Scientific Management

2. Henry Fayol B. Administrative Management

3. Henry Gantt C. Gantt Chart

4. Frank and Lillian Gilbreth D. Therblig analysis

Answer:

 1-A

 2-B

 3-C

 4-D

Scenario-Based Question:

11. A manager in a factory wants to increase productivity by

observing workers and finding ways to improve their efficiency.
Which management theory is the manager applying?

 A. Administrative Management

 B. Scientific Management

 C. Bureaucratic Management

 D. Contingency Theory

Answer: B

Explanation: Scientific Management, developed by Frederick Taylor,

focuses on improving worker efficiency through observation and
analysis.
12. A company ensures that employees are rewarded fairly and
treated with respect by their supervisors. Which of Fayol’s
principles is being implemented?

 A. Discipline

 B. Stability of Tenure

 C. Equity

 D. Order

Answer: C

Explanation: The principle of Equity emphasizes fair treatment and

respect for employees to maintain a positive work environment.

1. The Nature of Strategic Management

1. What is a strategy in the context of strategic management?

a) A short-term financial plan
b) A comprehensive plan for accomplishing an organization’s
goals
c) A step-by-step guide to operational tasks
d) A policy framework for employee conduct
Answer: b

2. What does strategic management primarily aim to address?

a) Daily operational issues
b) Business opportunities and challenges
c) Industry-specific regulations
d) Employee grievances
Answer: b

2. Components of Strategy

3. Which of the following is NOT a component of strategy?

a) Distinctive competence
b) Organizational hierarchy
c) Scope
 d) Resource deployment
Answer: b

4. Distinctive competence refers to:

a) The areas where the organization operates.
b) The methods of allocating resources.
c) The organizational capability that sets it apart from
competitors.
d) The strategic goals of the company.
Answer: c

3. Types of Strategic Alternatives

5. A business-level strategy focuses on:

a) Managing operations across multiple industries.
b) Strategic choices in a specific industry or market.
c) Operational procedures and task management.
d) Resource allocation between departments.
Answer: b

6. Corporate-level strategy is concerned with:

a) Operational efficiency in one market.
b) Managing simultaneous operations across multiple
industries.
c) Setting individual team goals.
d) Day-to-day tactical decisions.
Answer: b

4. Strategy Formulation and Implementation

7. What is a deliberate strategy?

a) A response to unforeseen circumstances
b) A reactive plan
c) A purposeful plan chosen and implemented to achieve
specific goals
d) A pattern of action that evolves over time
Answer: c

8. An emergent strategy develops:

a) In alignment with predefined goals
 b) As a result of deliberate organizational planning
c) Over time, in the absence of or despite specific goals
d) As a direct response to competitor actions
Answer: c

5. Environmental Analysis

9. Competitive intelligence involves:

a) Monitoring internal employee performance
b) Collecting and analyzing competitor information
c) Building team synergy
d) Allocating financial resources efficiently
Answer: b

10. Environmental scanning is essential for:

a) Monitoring competitor products only
b) Understanding threats, opportunities, strengths, and
weaknesses
c) Implementing resource deployment strategies
d) Creating detailed operational procedures
Answer: b

6. SWOT Analysis

11. In a SWOT analysis, what are "opportunities"?

a) Internal strengths of the organization
b) Favorable external factors in the environment
c) Challenges that hinder growth
d) Internal factors that require improvement
Answer: b

12. Which component of a SWOT analysis examines internal

issues?
a) Threats
b) Opportunities
c) Strengths and weaknesses
d) None of the above
Answer: c
Scenario-Based Question

Scenario

A retail company notices a decline in sales due to increasing

competition and a shift toward e-commerce. The company decides
to implement a deliberate strategy to expand its online presence
while optimizing its distinctive competence in customer service.

13. Based on this scenario, which type of strategy is being

implemented?
a) Emergent strategy
b) Business-level strategy
c) Corporate-level strategy
d) Deliberate strategy
Answer: d

1. The Nature of Strategic Management

1. What is a strategy in the context of strategic management?

a) A short-term financial plan
b) A comprehensive plan for accomplishing an organization’s
goals
c) A step-by-step guide to operational tasks
d) A policy framework for employee conduct
Answer: b

2. What does strategic management primarily aim to address?

a) Daily operational issues
b) Business opportunities and challenges
c) Industry-specific regulations
d) Employee grievances
Answer: b

2. Components of Strategy

3. Which of the following is NOT a component of strategy?

a) Distinctive competence
b) Organizational hierarchy
c) Scope
 d) Resource deployment
Answer: b

4. Distinctive competence refers to:

a) The areas where the organization operates.
b) The methods of allocating resources.
c) The organizational capability that sets it apart from
competitors.
d) The strategic goals of the company.
Answer: c

3. Types of Strategic Alternatives

5. A business-level strategy focuses on:

a) Managing operations across multiple industries.
b) Strategic choices in a specific industry or market.
c) Operational procedures and task management.
d) Resource allocation between departments.
Answer: b

6. Corporate-level strategy is concerned with:

a) Operational efficiency in one market.
b) Managing simultaneous operations across multiple
industries.
c) Setting individual team goals.
d) Day-to-day tactical decisions.
Answer: b

4. Strategy Formulation and Implementation

7. What is a deliberate strategy?

a) A response to unforeseen circumstances
b) A reactive plan
c) A purposeful plan chosen and implemented to achieve
specific goals
d) A pattern of action that evolves over time
Answer: c

8. An emergent strategy develops:

a) In alignment with predefined goals
 b) As a result of deliberate organizational planning
c) Over time, in the absence of or despite specific goals
d) As a direct response to competitor actions
Answer: c

5. Environmental Analysis

9. Competitive intelligence involves:

a) Monitoring internal employee performance
b) Collecting and analyzing competitor information
c) Building team synergy
d) Allocating financial resources efficiently
Answer: b

10. Environmental scanning is essential for:

a) Monitoring competitor products only
b) Understanding threats, opportunities, strengths, and
weaknesses
c) Implementing resource deployment strategies
d) Creating detailed operational procedures
Answer: b

6. SWOT Analysis

11. In a SWOT analysis, what are "opportunities"?

a) Internal strengths of the organization
b) Favorable external factors in the environment
c) Challenges that hinder growth
d) Internal factors that require improvement
Answer: b

12. Which component of a SWOT analysis examines internal

issues?
a) Threats
b) Opportunities
c) Strengths and weaknesses
d) None of the above
Answer: c
Scenario-Based Question

Scenario

A retail company notices a decline in sales due to increasing

competition and a shift toward e-commerce. The company decides
to implement a deliberate strategy to expand its online presence
while optimizing its distinctive competence in customer service.

13. Based on this scenario, which type of strategy is being

implemented?
a) Emergent strategy
b) Business-level strategy
c) Corporate-level strategy
d) Deliberate strategy
Answer: d

Types of Goals

1. Strategic goals primarily focus on:

a) Internal financial performance
b) Performance relative to external factors
c) Short-term task completion
d) Employee engagement programs
Answer: b

2. A company publicly states its commitment to environmental

sustainability, but internally focuses on maximizing profits at
any cost. This is an example of:
a) Financial goals
b) Real goals conflicting with stated goals
c) Directional planning
d) Strategic alignment
Answer: b

2. Types of Plans

3. Operational plans are designed to:

a) Establish long-term goals for the organization
b) Specify details for achieving strategic goals
c) Provide general guidelines for activities
 d) Replace strategic plans entirely
Answer: b

4. Long-term plans typically cover:

a) Less than one year
b) One to two years
c) More than three years
d) Specific operational tasks only
Answer: c

5. Single-use plans are developed for:

a) Ongoing activities
b) Unique, non-recurring situations
c) Short-term operational goals
d) Establishing financial goals
Answer: b

3. Establishing Goals

6. What is the main disadvantage of traditional goal setting?

a) Lack of clarity as goals are passed to lower levels
b) Goals are overly specific and rigid
c) Lower-level managers are excluded from planning
d) Resources are often misallocated
Answer: a

7. In the means–ends chain, lower-level goals serve as:

a) Independent outcomes unrelated to higher-level goals
b) Guidelines for employee behavior
c) The means to achieve higher-level organizational goals
d) Benchmarks for financial performance
Answer: c

4. Characteristics of Well-Designed Goals

8. Goals written in terms of measurable outcomes help by:

a) Allowing for more flexible implementation
b) Eliminating the need for performance reviews
c) Providing clear criteria for evaluating success
 d) Ensuring broader, less focused organizational objectives
Answer: c

9. A goal to "increase annual sales by 20% within two years" is an

example of:
a) A vague and unachievable goal
b) A well-designed goal
c) A short-term operational goal
d) A directional goal
Answer: b

10. Clear time frames for goals are essential because:

a) They allow unlimited time to meet objectives
b) They focus efforts on short-term gains
c) They specify when progress should be reviewed
d) They reduce the need for long-term planning
Answer: c

5. Management by Objectives (MBO)

11. Which of the following is NOT a characteristic of

Management by Objectives?
a) Explicit performance evaluation periods
b) Goals determined solely by top management
c) Collaborative goal-setting
d) Progress periodically reviewed
Answer: b

12. One of the key benefits of MBO is:

a) Eliminating lower-level management roles
b) Encouraging employee participation in goal-setting
c) Reducing the need for operational plans
d) Avoiding feedback on performance
Answer: b

Scenario-Based Questions

Scenario 1
A company develops a single-use plan to launch a new product in a
competitive market. The plan includes measurable sales targets, a
clear timeline, and resource allocation.

13. This scenario represents:

a) Long-term strategic planning
b) Operational planning
c) A single-use plan with specific elements
d) An emergent strategy without structure
Answer: c

Scenario 2

An organization’s goal is to "become the industry leader in customer

satisfaction by achieving a 90% satisfaction rate within two years."
It defines specific performance goals for each department and sets
quarterly review sessions.

14. What type of planning approach does this represent?

a) Management by Objectives (MBO)
b) Traditional goal setting
c) Directional planning with vague targets
d) A short-term plan lacking review mechanisms
Answer: a

6. Advanced Topics in Planning

15. Directional plans differ from specific plans by:

a) Setting clear, rigid steps to achieve objectives
b) Allowing flexibility and adaptation in implementation
c) Focusing on short-term goals only
d) Eliminating the need for operational oversight
Answer: b

16. A company’s ongoing policies for employee conduct and

annual review processes are examples of:
a) Single-use plans
b) Standing plans
c) Financial goals
d) Strategic goals
Answer: b
 17. If a company’s stated goal is "to reduce production
costs," but its real focus is increasing product quality, what is
the main issue?
a) Poor strategic alignment
b) Miscommunication between departments
c) Conflict between stated and real goals
d) Failure to develop operational plans
Answer: c

Multiple-Choice Questions

1. What is strategic management?

a) Daily operational planning
b) An ongoing process of formulating and implementing
effective strategies
c) A short-term financial planning tool
d) A reactive response to competition
Answer: b

2. Which is NOT a component of strategy?

a) Distinctive competence
b) Resource deployment
c) Organizational culture
d) Scope
Answer: c

3. Emergent strategy refers to:

a) A purposeful plan chosen to support specific goals
b) A plan developed over time, regardless of initial goals
c) A reactive response to external threats
d) A contingency strategy for operational delays
Answer: b

True/False Questions

4. Corporate-level strategy is concerned with managing

operations across multiple industries.
Answer: True

5. Business-level strategy focuses on day-to-day operational

efficiency.
Answer: False

Scenario-Based Question
 6. A retail company launches an online platform as a part of its
strategic plan to stay competitive. This initiative is best
categorized as:
a) Operational planning
b) Corporate-level strategy
c) Business-level strategy
d) Emergent strategy
Answer: b

2. Foundations of Planning

Multiple-Choice Questions

7. Which is a key purpose of planning?

a) Eliminate organizational hierarchy
b) Provide direction and set standards for controlling
c) Focus on tactical-level decisions only
d) Replace strategic goals with operational goals
Answer: b

8. Directional plans are characterized by:

a) Rigid guidelines
b) General, flexible focus
c) Unclear time frames
d) Immediate operational objectives
Answer: b

9. Management by Objectives (MBO) includes all EXCEPT:

a) Participative goal setting
b) Explicit performance evaluations
c) Unilateral decisions by top management
d) Periodic progress reviews
Answer: c

True/False Questions

10. Specific plans are clearly defined and allow no room for
interpretation.
Answer: True
 11. Standing plans are developed for unique, one-time
scenarios.
Answer: False

Scenario-Based Question

12. A company introduces a single-use plan to host an annual

conference, detailing venue booking, sponsorship, and agenda.
This type of plan is:
a) Standing plan
b) Single-use plan
c) Strategic plan
d) Directional plan
Answer: b

3. Managers as Decision Makers

Multiple-Choice Questions

13. The decision-making process starts with:

a) Implementing a solution
b) Identifying a problem
c) Developing alternatives
d) Allocating resources
Answer: b

14. Bounded rationality assumes that managers:

a) Always make value-maximizing choices
b) Have unlimited ability to process information
c) Satisfice rather than maximize outcomes
d) Identify all possible alternatives
Answer: c

15. Unstructured problems require:

a) Programmed decisions
b) Routine approaches
c) Custom-made solutions
d) Predefined policies
Answer: c

True/False Questions
 16. A programmed decision is best suited for unstructured
problems.
Answer: False

17. Decision-making under conditions of certainty guarantees

the desired outcome.
Answer: False

Scenario-Based Questions

18. A manager evaluates various laptops for the sales team

using weighted criteria like memory, battery life, and warranty.
The decision process exemplifies:
a) Rational decision-making
b) Bounded rationality
c) Emergent strategy
d) Groupthink
Answer: a

19. Mary, recently promoted to assistant manager, struggles

to gain authority with former peers. To resolve this:
a) Mary should establish clear boundaries and assert her role.
b) Continue informal relationships to maintain team harmony.
c) Delegate managerial decisions to avoid conflict.
d) Involve external consultants for a leadership overhaul.
Answer: a