All Free Introduction to Business MCQs with Answers

• A. Esteem needs
• B. Cognitive needs
• C. Self-actualisation needs
• D. Social needs

Explanation: Social needs include friendship, belonging and acceptance, and they follow physiological and safety needs in Maslow's hierarchy.

• A. Achievement
• B. Salary
• C. Job security
• D. Company policy

Explanation: Achievement is a motivator because it can create job satisfaction and stronger performance.

• A. Equally distributed among employees
• B. Valued by the employee
• C. Controlled by outside groups
• D. Based only on seniority

Explanation: Expectancy theory states that motivation depends partly on the value an employee places on the expected reward.

• A. Transactional leadership
• B. Laissez-faire leadership
• C. Transformational leadership
• D. Paternalistic leadership

Explanation: Transformational leadership changes and inspires followers through vision, intellectual stimulation and commitment to broader goals.

• A. Employees naturally avoid all responsibility
• B. Employees are motivated only by financial rewards
• C. Employees work only when closely monitored
• D. Employees can exercise self-direction toward objectives

Explanation: Theory Y assumes that people can find work meaningful, accept responsibility and direct themselves toward organisational objectives.

• A. Trait leadership
• B. Situational leadership
• C. Charismatic leadership
• D. Bureaucratic leadership

Explanation: Situational leadership argues that no single style is best for every circumstance.

• A. Forming
• B. Norming
• C. Storming
• D. Performing

Explanation: Storming is the stage in which disagreements and power struggles commonly emerge as members clarify roles and influence.

• A. Working harder when others are present
• B. Taking responsibility for another member's work
• C. Avoiding conflict by accepting every proposal
• D. Reducing individual effort when group effort is difficult to identify

Explanation: Social loafing occurs when individuals reduce their effort because their personal contribution is less visible within a group.

• A. Role ambiguity
• B. Escalation of commitment
• C. Role conflict
• D. Groupthink

Explanation: Groupthink occurs when the desire for harmony or unanimity prevents members from critically evaluating alternatives.

• A. Trait theory
• B. Path-goal theory
• C. Contingency theory
• D. Leader-member exchange theory

Explanation: Trait theory examines characteristics such as confidence, integrity and determination that are associated with leadership.

• A. Charismatic leadership
• B. Servant leadership
• C. Transactional leadership
• D. Laissez-faire leadership

Explanation: Transactional leadership is based on exchanges such as rewards for performance and corrective action for failure to meet standards.

• A. Their work allows greater autonomy than before
• B. Their personal goals are more difficult than the team's goals
• C. Their manager provides frequent performance feedback
• D. Their input-outcome ratio is worse than a comparable colleague's

Explanation: Equity theory states that employees compare their contribution and rewards with those of relevant others.

• A. Doing a task because it is personally satisfying
• B. Doing a task to receive a monetary bonus
• C. Doing a task to avoid a disciplinary action
• D. Doing a task to obtain a promotion

Explanation: Intrinsic motivation comes from the enjoyment, interest or sense of achievement found in the activity itself.

• A. A broad and effortless goal
• B. A specific and challenging goal
• C. An implied and unmeasured goal
• D. A flexible and consequence-free goal

Explanation: Goal-setting theory holds that specific and challenging goals can direct attention and increase effort when employees accept them and…

• A. Positive reinforcement
• B. Positive punishment
• C. Negative reinforcement
• D. Negative punishment

Explanation: Negative reinforcement strengthens behaviour by removing an unpleasant stimulus after the desired behaviour.

• A. Legitimate power
• B. Referent power
• C. Expert power
• D. Informational power

Explanation: Legitimate power comes from the authority attached to a formal organisational role.

• A. To replace the team's formal objectives
• B. To establish expected patterns of behaviour
• C. To eliminate differences in member expertise
• D. To transfer all decisions to the team leader

Explanation: Team norms are shared expectations about acceptable conduct, communication and work practices.

• A. A work group
• B. A formal committee
• C. A self-contained team
• D. A social network

Explanation: A team is distinguished by complementary skills, a common purpose and shared accountability for results.

• A. Temporary task force
• B. Functional department
• C. Advisory committee
• D. Self-managed team

Explanation: A self-managed team has substantial responsibility for planning, organising and controlling its own work.

• A. Showing concern for employee welfare and views
• B. Defining tasks and work procedures clearly
• C. Setting strict rules for every work activity
• D. Concentrating only on production targets

Explanation: Consideration means showing respect, support and concern for employees.