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1.6 Oorganization management: organization & its types, Modern management theory, leadership &
communication, entrepreneurship, motivation, HRM, development of business plan, Management
Information System (MIS), Technology management. (AMeE0106)

1. Which of the following is NOT a type of organization structure?

a) Functional

b) Matrix

c) Hierarchical

d) Entrepreneurial

Solution: d) Entrepreneurial

2. Modern management theory emphasizes:

a) Strict hierarchy

b) Centralized decision-making

c) Employee empowerment and participation

d) Traditional work practices

Solution: c) Employee empowerment and participation

3. The ability to influence and guide a group toward the achievement of goals is known as:

a) Planning

b) Controlling

c) Leadership

d) Budgeting

Solution: c) Leadership

4. Effective communication in an organization is essential for:

a) Increasing bureaucracy

b) Creating confusion

c) Fostering collaboration and productivity

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d) Encouraging secrecy

Solution: c) Fostering collaboration and productivity

5. What is the term for an individual who identifies opportunities and takes risks to create new ventures
or products?

a) Manager

b) Entrepreneur

c) Supervisor

d) Technician

Solution: b) Entrepreneur

6. Maslow's Hierarchy of Needs theory suggests that physiological needs are at the ______ of the
hierarchy.

a) Top

b) Middle

c) Bottom

d) Irrelevant

Solution: c) Bottom

7. Human Resource Management (HRM) involves all of the following EXCEPT:

a) Recruitment and selection

b) Performance appraisal

c) Sales forecasting

d) Employee training and development

Solution: c) Sales forecasting

8. What is the first step in the development of a business plan?

a) Identifying target customers

b) Conducting market research

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c) Writing the executive summary

d) Setting financial goals

Solution: b) Conducting market research

9. Management Information System (MIS) is primarily concerned with:

a) Employee training

b) Budgeting and financial planning

c) Data collection, storage, and retrieval

d) Advertising and promotion

Solution: c) Data collection, storage, and retrieval

10. Technology management involves:

a) Ignoring technological advancements

b) Adopting every new technology that becomes available

c) Efficiently integrating technology into business processes

d) Relying solely on manual methods

Solution: c) Efficiently integrating technology into business processes

11 Which type of organizational structure is characterized by a clear hierarchy, centralized decision-

making, and a top-down flow of authority?

A) Matrix structure

B) Flat structure

C) Functional structure

D) Network structure

**Solution:** C) Functional structure

12According to which management theory, employees are motivated by a combination of physiological,

safety, social, esteem, and self-actualization needs?

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A) Scientific Management

B) Classical Management

C) Human Relations Theory

D) Maslow's Hierarchy of Needs

**Solution:** D) Maslow's Hierarchy of Needs

13. : Transformational leadership is characterized by:

A) A focus on routine tasks and efficiency

B) Encouraging followers to achieve beyond their capabilities

C) Strict top-down control

D) Passive management by exception

**Solution:** B) Encouraging followers to achieve beyond their capabilities

14. Which of the following is an essential characteristic of successful entrepreneurs?

A) Aversion to risk

B) Resistance to change

C) Innovation and creativity

D) Dependency on a stable income

**Solution:** C) Innovation and creativity

15. Which motivation theory suggests that individuals are motivated by the belief that their efforts will
lead to better performance, resulting in a positive outcome?

A) Herzberg's Two-Factor Theory

B) Expectancy Theory

C) Equity Theory

D) Maslow's Hierarchy of Needs

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**Solution:** B) Expectancy Theory

16. What is the primary goal of HRM?

A) Maximizing shareholder wealth

B) Minimizing employee satisfaction

C) Maximizing employee productivity and well-being

D) Reducing organizational profitability

**Solution:** C) Maximizing employee productivity and well-being

17. Which section of a business plan typically outlines the market research, target audience, and
competition analysis?

A) Executive Summary

B) Marketing and Sales

C) Financial Projections

D) Company Description

**Solution:** B) Marketing and Sales

18. : What does an MIS primarily help an organization with?

A) Decision making and data management

B) Inventory management

C) Employee recruitment

D) Tax preparation

**Solution:** A) Decision making and data management

19. Which of the following is a key aspect of technology management?

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A) Minimizing technological advancements

B) Resisting change in technology

C) Leveraging technology for competitive advantage

D) Avoiding technology adoption

**Solution:** C) Leveraging technology for competitive advantage

20. Which of the following is NOT a type of organization structure?

A. Functional

B. Divisional

C. Matrix

D. Entrepreneurial

**Answer: D. Entrepreneurial**

21. Who is known as the father of modern management theory?

A. Henry Fayol

B. Max Weber

C. Frederick Taylor

D. Peter Drucker

**Answer: D. Peter Drucker**

22. Which leadership style focuses on making decisions without consulting team members?

A. Autocratic

B. Democratic

C. Transformational

D. Laissez-faire

**Answer: A. Autocratic**

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23. Effective communication is crucial in organizations. Which of the following is NOT a communication
barrier?

A. Language differences

B. Cultural differences

C. Open communication

D. Noise and distractions

**Answer: C. Open communication**

24. The process of creating, launching, and running a new business venture is known as:

A. Management

B. Leadership

C. Entrepreneurship

D. Motivation

**Answer: C. Entrepreneurship**

25. . Which theory of motivation emphasizes the importance of physiological and safety needs, as well
as social, esteem, and self-actualization needs?

A. Maslow's Hierarchy of Needs

B. Theory X and Theory Y

C. Expectancy Theory

D. Two-Factor Theory

**Answer: A. Maslow's Hierarchy of Needs**

26. HRM stands for:

A. Human Resource Management

B. Human Rights Management

C. Human Resource Marketing

D. Human Resource Maximization

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**Answer: A. Human Resource Management**

27. Which of the following is a critical step in the development of a business plan?

A. Employee training

B. Market research

C. Product development

D. Financial reporting

**Answer: B. Market research**

28. MIS stands for:

A. Management Information System

B. Marketing and Inventory System

C. Modern Information Software

D. Manufacturing and Inventory Service

**Answer: A. Management Information System**

29. Technology management involves:

A. Ignoring technological advancements

B. Adopting new technologies without assessing their relevance

C. Managing technology resources strategically

D. Focusing solely on human resources

**Answer: C. Managing technology resources strategically**

30. Which of the following is not a type of organization structure?

a) Functional

b) Matrix

c) Hierarchical

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d) Entrepreneurial

Solution: d) Entrepreneurial

31. Modern management theory emphasizes:

a) Centralized decision-making

b) Strict hierarchy

c) Employee empowerment and collaboration

d) Traditional techniques

Solution: c) Employee empowerment and collaboration

32. Leadership is best defined as:

a) The ability to control and command others

b) The process of influencing and guiding individuals or groups

c) The art of managing finances effectively

d) A one-size-fits-all approach to management

Solution: b) The process of influencing and guiding individuals or groups

33.. What is an essential characteristic of entrepreneurship?

a) Risk aversion

b) Innovation and risk-taking

c) Bureaucratic mindset

d) Stability and consistency

Solution: b) Innovation and risk-taking

34. In the context of motivation theories, Maslow's Hierarchy of Needs suggests that:

a) Physiological needs are the least important

b) Esteem needs are more basic than safety needs

c) People are motivated by different needs at the same time

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d) Self-actualization needs are the most fundamental

Solution: c) People are motivated by different needs at the same time

35. HRM (Human Resource Management) is primarily concerned with:

a) Maximizing profits

b) Employee recruitment and development

c) Inventory management

d) Marketing strategies

Solution: b) Employee recruitment and development

36. What is a key component of developing a business plan?

a) Crafting the company mission statement

b) Identifying competitors but not a target market

c) Omitting financial projections

d) Ignoring potential risks

Solution: a) Crafting the company mission statement

37. What does MIS (Management Information System) stand for?

a) Management Information Sharing

b) Management Information Structure

c) Management Information System

d) Management Information Software

Solution: c) Management Information System

38. Technology management involves:

a) Ignoring technological advancements

b) Regularly updating and optimizing technology resources

c) Keeping technology a secret from employees

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d) Avoiding innovation

Solution: b) Regularly updating and optimizing technology resources

39. Which of the following best describes a matrix organization structure?

a) Hierarchical

b) Flat

c) Functional

d) Cross-functional

Solution: d) Cross-functional

40. : Which management theorist is known for his contributions to the Scientific Management theory?

a) Frederick Taylor

b) Max Weber

c) Elton Mayo

d) Abraham Maslow

Solution: a) Frederick Taylor

41. Transformational leadership is primarily characterized by:

a) Focus on punishment and discipline

b) Inspiring and motivating followers

c) Autocratic decision-making

d) Micromanagement

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Solution: b) Inspiring and motivating followers

42. What is the term for the process of creating something new and valuable by devoting time and
effort while assuming the associated financial, psychological, and social risks?

a) Innovation

b) Management

c) Entrepreneurship

d) Investment

Solution: c) Entrepreneurship

43. According to Maslow's Hierarchy of Needs, which needs are at the highest level and represent self-
fulfillment and personal growth?

a) Physiological needs

b) Safety needs

c) Social needs

d) Self-actualization needs

Solution: d) Self-actualization needs

44. What is the process of evaluating and appraising an employee's job performance?

a) Recruitment

b) Training

c) Performance appraisal

d) Compensation

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Solution: c) Performance appraisal

45. Which section of a business plan typically outlines the company's mission, vision, and values?

a) Executive Summary

b) Market Analysis

c) Company Description

d) Financial Projections

Solution: c) Company Description

46. Question 8: MIS stands for:

a) Management Information System

b) Manufacturing Information System

c) Marketing Information System

d) Managerial Information System

Solution: a) Management Information System

47. Question 9: What is the process of planning and controlling the use of technology in an organization
to achieve its goals?

a) Technological revolution

b) Technological obsolescence

c) Technology management

d) Technical support

Solution: c) Technology management

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48. What type of organization is characterized by a clear hierarchy, well-defined job roles, and
centralized decision-making?

a) Flat organization

b) Matrix organization

c) Hierarchical organization

d) Network organization

**Solution:** c) Hierarchical organization

49. **Question:** Which management theorist introduced the concept of "scientific management" in
the early 20th century?

a) Frederick Taylor

b) Max Weber

c) Abraham Maslow

d) Peter Drucker

**Solution:** a) Frederick Taylor

50.Transformational leadership is characterized by:

a) Autocratic decision-making

b) Motivating and inspiring followers

c) Passive leadership

d) Strict adherence to rules and regulations

**Solution:** b) Motivating and inspiring followers

51. Which term refers to the process of turning an innovative idea into a profitable business venture?

a) Management

b) Marketing

c) Entrepreneurship

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d) Human Resources

**Solution:** c) Entrepreneurship

52. According to Maslow's Hierarchy of Needs, which need must be satisfied before moving to the next
level?

a) Self-actualization

b) Esteem

c) Safety

d) Belongingness

**Solution:** c) Safety

53. Which HRM function involves recruiting, selecting, and placing the right individuals in the right jobs?

a) Compensation and benefits

b) Training and development

c) Staffing

d) Performance appraisal

**Solution:** c) Staffing

54. Which section of a business plan typically outlines the company's mission, vision, and values?

a) Marketing plan

b) Financial projections

c) Executive summary

d) Company overview

**Solution:** d) Company overview

55. What does MIS stand for?

a) Management Information Software

b) Marketing Information System

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c) Management Integration System

d) Management Information System

**Solution:** d) Management Information System

56. **Question:** Which strategy focuses on a company's ability to develop and acquire new
technology and maintain a competitive advantage?

a) Technology integration

b) Technology outsourcing

c) Technology absorption

**Solution:** d) Technology innovation

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