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Multiple Choice Questions:
1. What is the process of analyzing gaps between forecasted and actual conditions and
identifying causes and possible solutions?
A)
B)
C)
D)
problem solving
brain storming
decision making
goal setting
2. Which term is defined as a substantial difference between an expected condition and an
actual condition?
A)
B)
C)
D)
a problem
a solution
a conflict
an output gap
3. What is the first step in the fundamental approach to problem solving?
A)
B)
C)
D)
list possible causes
choose the solution
state the problem clearly
list possible solutions
4. Before selecting the most likely cause of a problem, what problem solving step must be
completed?
A)
B)
C)
D)
evaluate alternatives
list possible causes
plan for implementation
suggest alternative solutions
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5. Which is the best way to judge the ethics of a decision?
A)
B)
C)
D)
Look at the situation from a customer’s point of view.
Look at the situation from a superior’s point of view.
Look at the legality of the decision.
Look at how a colleague would view the decision.
6. Which is a principle cause of ethical misbehavior in the workplace?
A)
B)
C)
D)
overly aggressive financial or business objectives
inadequate employee communications
falsifying unapproved overtime
abuse of company policy regarding use of social media
7. Which term best describes the set of formalized rules and standards that describe what
a company expects of its employees?
A)
B)
C)
D)
company procedure
company policy
code of ethics
management guidelines
8. How can unethical behavior in business be reduced?
A)
B)
C)
D)
Punish only when a law is broken or when there is a loss of money.
Establish clear policies regarding unethical behavior.
Trust employees with unlimited opportunity until given a reason to doubt them.
Rely on an employees’ past record of good ethics.
9. Which decision making tool graphically represents alternative solutions and their
outcomes to a problem?
A)
B)
C)
D)
cost-benefit analysis
decision tree
programmed decision
systematic approach
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10. Which tool provides a balanced approach to decision making that compares the cost of
implementation to the resulting value of the product or service?
A)
B)
C)
D)
cost-benefit analysis
decision tree
programmed decision
systematic approach
11. What approach can employee groups take to generate creative ideas?
A)
B)
C)
D)
ABC analysis
rationalizing
programmed decision-making
brainstorming
12. What can be done to make decisions more effective?
A)
B)
C)
D)
use creative thinking to solve all problems
refrain from starting with a specific goal in mind
approach all decisions with the same dedication
prioritize decisions where the potential for payoff is the greatest
13. Which of the following defines problems that have already been observed or are
occurring presently?
A)
B)
C)
D)
potential problems
observational problems
current problems
researched problems
14. Which of the following is an example of identifying a potential problem?
A)
B)
C)
D)
redistributing current work
hiring a new employee
planning for overtime expenses
fixing distribution errors
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15. Which of the following properly describes how to identify a potential problem?
A)
B)
C)
D)
Determine the variance between goals and expectations.
Identify a gap between actual and expected performance.
Find the deviation from expected managerial performance.
Create goals related to the careful management of resources.
16. Before selecting the most likely cause of a problem, what problem solving step must be
completed first?
A)
B)
C)
D)
list possible causes
evaluate alternatives
plan for implementation
suggest alternative solutions
17. Nancy is a corporate trainer who ensures that supervisors are able to recognize moral
issues in the work place and can make fair decisions. What is the name of this type of
training?
A)
B)
C)
D)
business ethics
employee management
problem management
legal coaching
18. If a video game marketer were investigated for allegedly raising prices excessively
during the Christmas buying season and thereby manipulating a supply of games
available at that time, this would be an ethical issue concerned primarily with?
A)
B)
C)
D)
conflict of interest
fairness and honesty
cost control
monopoly
19. Making claims about dietary supplements or the health benefits of certain unproven
ingredients is an issue related to?
A)
B)
C)
D)
conflict of interest
communications
forecasting
plagiarism
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20.The warning on cigarette packages about the health implications of smoking is an
example of which of the following ethical issues?
A)
B)
C)
D)
conflict of interest
fairness and honesty
communications
health regulations
21. Which one of the following behaviors is an example of the ethical consideration within
business relationships?
A)
B)
C)
D)
keeping company secrets
avoiding obligations
shirking responsibilities
offering a bribe
22. If an employee learned of a significant cost-saving idea from a coworker and then
informed management of the idea without revealing its true source, then the employee
would be involved in?
A)
B)
C)
D)
keeping a secret
career advancement
plagiarism
copyright infringement
23. Which of the following do many employees utilize differently at work than they do at
home?
A)
B)
C)
D)
ethical standards
code of ethics
body language
communication skills
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24. Code of ethics foster ethical behavior by which of the following?
A) Expanding the opportunity to behave ethically by providing rewards for following
the rules.
B) Limiting the opportunity to behave unethically by providing punishments for
violations of the rules and standards.
C) Limiting the opportunity to behave unethically by providing rewards for violations
of the rules and standards.
D) Expanding the opportunity to behave ethically by providing punishments for
following the rules.
25. Which of the following best defines the act of an employee exposing an employer’s
wrongdoing to outsiders?
A)
B)
C)
D)
fraud
whistleblowing
plagiarism
copyright infringement
26. According to the text, ethical decisions in an organization are influenced by (1) individual
moral standards, (2) the influence of managers and co-workers, and which of the
following?
A)
B)
C)
D)
religious values
family values
opportunity to engage in misconduct
the founder’s values
27. What is a balanced approach that adds all the costs implementations and compares
them with the projected value of the resulting product or services?
A)
B)
C)
D)
direct and indirect cost analysis
cost-benefit analysis
qualitative analysis
decision tree analysis
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28. Gabe has identified an issue he knows has occurred in the past so he applies the
standard solution. What type of decision making is this an example of?
A)
B)
C)
D)
programmed decision
cost-benefit decision
qualitative decision
intuitive decision
29. The vast majority of your problems will account for a minority of your profits or losses.
What is the principle called?
A)
B)
C)
D)
the cost-benefit principle
the 80/20 principle
the rational and intuitive principle
the time management principle
30.Which of the following is a good way to generate creative ideas on your own?
A)
B)
C)
D)
try to tackle a very large problem
allow yourself to get distracted
keep the ideas in your head rather than writing them down
keep ideas flowing
31. Tom consistently critiques his group member’s ideas. What rule of successful
brainstorming is Tom breaking?
A)
B)
C)
D)
don’t criticize ideas
generate new ideas freely
strive for quantity
combine and improve
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True/false Questions:
1. Cost-benefit analysis involves systematically analyzing gaps between expected and
actual conditions to find and remedy their causes.
A) True
B) False
2. You can recognize a potential problem by identifying a gap between actual and expected
performance.
A) True
B) False
3. Replacing a valued employee who has recently quite is an example of a potential
problem.
A) True
B) False
4. Change cause problems.
A) True
B) False
5. Jessica just realized that her marketing costs were up 30 percent last quarter. This is an
example of a current problem.
A) True
B) False
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6. Decision making is the part of the problem-solving process in which alternatives are
evaluated and a choice is made.
A) True
B) False
7. In the problem solving process, it is important to plan for implementation before
collecting relevant information.
A) True
B) False
8. In the problem solving process, you must evaluate alternatives before you suggest
alternative solutions.
A) True
B) False
9. In the problem solving process you must plan for implementation before you implement
follow up.
A) True
B) False
10. Only corporations have to worry about ethics scandals and social responsibility issues.
A) True
B) False
11. An ethical issue is an identifiable problem, situation, or opportunity that requires a
person or organization to choose from among several actions that may be evaluated as
ethical or unethical.
A) True
B) False
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12. The best way to judge the ethics of a decision is to look at it from a manager’s or
employee’s point of view.
A) True
B) False
13. Conflicts of interest are payments, gifts, or special favors intended to influence the
outcome of a decision.
A) True
B) False
14. Ethics is related to the culture in which a business operates.
A) True
B) False
15. It is almost always easy to recognize specific ethical issues.
A) True
B) False
16. Establishing and enforcing ethical standards and policies within a business can help
reduce unethical behavior by prescribing which activities are acceptable and which are
not and by removing the opportunity to act unethically.
A) True
B) False
17. Without a code of ethics or formal policy on ethics, employees are likely to base their
decisions on how their peers and superiors behave.
A) True
B) False
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18. Codes of ethics foster ethical behavior because they expand the opportunity to behave
unethically.
A) True
B) False
19. Ethical decisions in an organization are influenced by three key factors.
A) True
B) False
20.Codes of ethics are formalized rules and standards that describe what the company
expects of its employees.
A) True
B) False
21. A decision tree is a useful tool for mathematically analyzing quantitative data to solve a
problem.
A) True
B) False
22. Cost-benefit analysis is the implementation of costs compared to the projected value of
the resulting product or services.
A) True
B) False
23. The greatest number of problems you deal with will be less important than the few
problems you solve that are very important. This is an interpretation of ABC analysis.
A) True
B) False
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24. Free association of ideas is an ineffective method to spur creative thinking.
A) True
B) False
25. Creativity is unimportant in decision making.
A) True
B) False
26. It is important to learn to concentrate when generating innovative ideas on your own.
A) True
B) False
27. When brainstorming be sure to combine ideas to improve on the solutions that are
generated.
A) True
B) False
28. The difference between brainstorming and creative thinking is that brainstorming is done
individually and creative thinking is done with a group.
A) True
B) False
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Short Answer questions:
1. Discuss and organization’s code of ethics.
2. What are some of the general ethical issues in business?
3. How can an organization improve ethical behavior?
4. In making decisions, ethical concerns need to be considered. Identify and explain how a
decision tree would assist the manager in making ethical decisions.
5. List the systematic approach steps to problem solving.
6. List the four rules of a successful brainstorming session.
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