Free Principles of Management MCQs with Answers

• A. potential opportunities
• B. potential threats
• C. potential strengths
• D. potential weaknessesGet Executive Coaching

Explanation: Diversification expands a firm into new products or markets and is therefore treated as a possible opportunity in strategic analysis.

• A. economic trends
• B. political trends
• C. competitive trends
• D. all of above

Explanation: Strategic environmental auditing considers economic, political and competitive trends because each can affect the firm’s future position.

• A. mission statement
• B. strategic goals
• C. vision statement
• D. all of aboveMcqs Practice Tests

Explanation: A mission statement explains the organization’s present business, customers and purpose, answering “What is our business?” A vision…

• A. potential opportunities
• B. potential threats
• C. potential strengths
• D. potential weaknesses

Explanation: Low-cost foreign competitors can reduce a company’s market share and profit margins, so they represent an external threat.

• A. vertical integration
• B. horizontal integration
• C. consolidation
• D. geographic expansionCompare HR Software

Explanation: Apple’s move into its own retail stores is forward vertical integration because the producer takes control of a downstream distribution…

• A. marketing plan
• B. financial plan
• C. personnel plan
• D. production plan

Explanation: The financial plan is the business plan’s bottom line because it converts operational assumptions into expected revenue, costs, funding…

• A. diversification
• B. vertical integration
• C. horizontal integration
• D. geographic expansion

Explanation: Diversification occurs when a firm enters new product or business lines, especially when these differ from its existing offerings.

• A. potential opportunities
• B. potential Threats
• C. potential Strengths
• D. potential Weaknesses

Explanation: Large inventories tie up cash, increase storage and obsolescence costs, and may indicate inefficient operations, so they are normally…

• A. redesigning jobs of workers
• B. assigning additional activities to workers
• C. moving workers from one job to the other
• D. reengineering

Explanation: Business process reengineering involves fundamentally redesigning processes to achieve major improvements in efficiency, effectiveness…

• A. short-term focused and composed of organisational strategy, including strategy formulation and implementation
• B. short-term focused and composed of the organisation's mission, vision and value statements
• C. long-term focused and composed of organisational strategy, including strategy formulation and implementation
• D. long-term focused and composed of the organisation's mission, vision and value statementsMcqs Practice Tests

Explanation: Strategic management takes a long-term view and includes both formulating organisational strategy and putting it into action.

• A. Corporate- level strategic planning
• B. Strategic business unit level strategic planning
• C. Processual Approach
• D. Operational level strategic planning

Explanation: The processual approach views strategy as an emergent, politically influenced process rather than a fully rational sequence of planning…

• A. Efficient & effective
• B. Strict to employees
• C. Wrong Policy makers
• D. Wrong decision makers

Explanation: Successful managers are both effective and efficient: effectiveness means achieving the right objectives, while efficiency means using…

• A. Four
• B. Five
• C. Six
• D. Seven

Explanation: A commonly taught strategic management process has five steps: defining the mission and goals, analysing the environment, formulating…

• A. Strategic Management
• B. Mission statement
• C. Vision
• D. SWOT analysisMcqs Practice Tests

Explanation: Strategic management involves matching organisational capabilities with environmental demands and carrying out the mission through…

• A. Achieve most output in less time
• B. Achieve mass production
• C. Achieve most output with least input
• D. Achieve Organisational goalsSubmit Mcqs Platform

Explanation: Effectiveness means achieving the organisation’s intended goals, regardless of the resources or time used.

• A. A. system of giving the authority to carry out certain jobs by those lower down the management hierarchy
• B. The system of management that is based on bringing together experts into a team
• C. The setting of objectives to bring about the achievement of the corporate goals
• D. The control of the Organisation by those in the 'head office'Try Asset Software

Explanation: Management by Objectives involves jointly setting clear, measurable objectives that guide performance toward broader organisational goals.

• A. Interpersonal role
• B. Decisional role
• C. Informational role
• D. Supportive role'Compare HR Software

Explanation: Resource allocation is one of Mintzberg’s decisional roles because the manager chooses how money, people, time and equipment will be…

• A. Mission
• B. Objectives
• C. Vision
• D. All of above

Explanation: Top management establishes the broad direction of the organization through its vision, mission, and objectives.