MGT 3013 - Ronald Anderson
Exam 2 Practice Test
Latest Update 2025-2026 | 80+ Questions with
Answers & Rationales
Instructor: Ronald Anderson
Course: Principles of Organization and Management
Format: 80+ Multiple Choice Questions
Difficulty: Exam Level
Part I: Planning and Strategic Management (Ch. 5)
1. According to the lecture and textbook, what is the primary purpose of planning?
a) To eliminate all uncertainty in the business environment
b) To set goals and decide how to achieve them while coping with uncertainty
c) To create a detailed budget for the upcoming fiscal year
d) To assign daily tasks to employees
Answerb) To set goals and decide how to achieve them while coping with uncertainty
Rationale: Planning is defined as setting goals and deciding how to achieve them. Crucially, it is also
about coping with uncertainty by formulating future courses of action to achieve specified results .
2. Which type of planning is conducted by top-level managers and typically covers a time frame of 1-5
years?
a) Operational planning
b) Tactical planning
c) Strategic planning
d) Contingency planning
Answerc) Strategic planning
Rationale: Strategic planning is the purview of top managers. It involves creating a long-range (1-5 years)
plan that outlines the organization's strategic direction, often guided by the mission and vision
statements .
3. A middle manager is responsible for creating a plan to maximize cash flow over the next 18 months.
This is an example of:
a) Strategic planning
b) Tactical planning
c) Operational planning
d) Mission planning
,Answerb) Tactical planning
Rationale: Tactical planning is performed by middle managers and focuses on implementing the
strategic plan. It typically covers a shorter period (6 months to 2 years) and aims to achieve specific
goals like maximizing cash flow .
4. A first-line supervisor creates a schedule detailing which employees will work each shift for the next
two weeks. This document is a form of:
a) A standing plan
b) A mission statement
c) An operational plan
d) A strategic goal
Answerc) An operational plan
Rationale: Operational planning is done by first-line managers and focuses on short-term (less than one
year) objectives. Employee shift schedules are a classic example of an operational plan .
5. An organization's purpose or reason for being is formally articulated in its:
a) Vision statement
b) Values statement
c) Mission statement
d) Action plan
Answerc) Mission statement
Rationale: The mission statement defines the organization's core purpose—what it does, who it serves,
and why it exists. It is typically developed by top managers and the board of directors .
6. A long-term goal describing what an organization wants to become in the future is its:
a) Mission statement
b) Vision statement
c) Strategic goal
d) Operational plan
Answerb) Vision statement
Rationale: While the mission statement is about the present purpose, the vision statement is a forward-
looking declaration of what the organization aspires to be in the long term .
7. In the VRIO framework, what does the "R" stand for?
a) Rational
b) Results-oriented
c) Rarity
d) Realistic
Answerc) Rarity
Rationale: VRIO is a tool for analyzing a firm's competitive potential. It stands
for Valuable, Rare, Imitability (Costly to Imitate?), and Organization .
8. According to the VRIO framework, if a resource is valuable and rare but not costly to imitate, the
company can expect to have a:
, a) Sustained competitive advantage
b) Temporary competitive advantage
c) Competitive disadvantage
d) Equal competitive advantage
Answerb) Temporary competitive advantage
Rationale: A resource provides a sustained advantage only if it is valuable, rare, and costly to imitate. If
it is easy to imitate, competitors will copy it, and the advantage will only be temporary .
9. What is a "means-end chain" in the context of goal setting?
a) A list of the company's core values
b) An integrated series of goals where lower-level goals contribute to higher-level ones
c) A method for firing underperforming employees
d) A type of single-use plan
Answerb) An integrated series of goals where the accomplishment of lower-level goals contributes to
the achievement of higher-level goals
Rationale: The means-end chain illustrates the hierarchy of goals. Achieving tactical goals (the means) is
the path to achieving strategic goals (the end) .
10. A human resources policy regarding sexual harassment that applies to all employees at all times is
an example of a:
a) Single-use plan
b) Program
c) Standing plan
d) Project
Answerc) Standing plan
Rationale: Standing plans are used for activities that occur repeatedly. They include policies (general
guidelines), procedures, and rules, and are designed to create organizational efficiency .
11. A company's plan to launch a new product, involving a unique set of activities that will not be
repeated, is considered a:
a) Standing plan
b) Single-use plan
c) Vision statement
d) Rule
Answerb) Single-use plan
Rationale: Single-use plans are developed for one-time, unique situations. Programs and projects are the
primary forms of single-use plans .
12. Which of the following is NOT a criterion in the SMART goals framework?
a) Specific
b) Measurable
c) Simple
d) Time-bound
Exam 2 Practice Test
Latest Update 2025-2026 | 80+ Questions with
Answers & Rationales
Instructor: Ronald Anderson
Course: Principles of Organization and Management
Format: 80+ Multiple Choice Questions
Difficulty: Exam Level
Part I: Planning and Strategic Management (Ch. 5)
1. According to the lecture and textbook, what is the primary purpose of planning?
a) To eliminate all uncertainty in the business environment
b) To set goals and decide how to achieve them while coping with uncertainty
c) To create a detailed budget for the upcoming fiscal year
d) To assign daily tasks to employees
Answerb) To set goals and decide how to achieve them while coping with uncertainty
Rationale: Planning is defined as setting goals and deciding how to achieve them. Crucially, it is also
about coping with uncertainty by formulating future courses of action to achieve specified results .
2. Which type of planning is conducted by top-level managers and typically covers a time frame of 1-5
years?
a) Operational planning
b) Tactical planning
c) Strategic planning
d) Contingency planning
Answerc) Strategic planning
Rationale: Strategic planning is the purview of top managers. It involves creating a long-range (1-5 years)
plan that outlines the organization's strategic direction, often guided by the mission and vision
statements .
3. A middle manager is responsible for creating a plan to maximize cash flow over the next 18 months.
This is an example of:
a) Strategic planning
b) Tactical planning
c) Operational planning
d) Mission planning
,Answerb) Tactical planning
Rationale: Tactical planning is performed by middle managers and focuses on implementing the
strategic plan. It typically covers a shorter period (6 months to 2 years) and aims to achieve specific
goals like maximizing cash flow .
4. A first-line supervisor creates a schedule detailing which employees will work each shift for the next
two weeks. This document is a form of:
a) A standing plan
b) A mission statement
c) An operational plan
d) A strategic goal
Answerc) An operational plan
Rationale: Operational planning is done by first-line managers and focuses on short-term (less than one
year) objectives. Employee shift schedules are a classic example of an operational plan .
5. An organization's purpose or reason for being is formally articulated in its:
a) Vision statement
b) Values statement
c) Mission statement
d) Action plan
Answerc) Mission statement
Rationale: The mission statement defines the organization's core purpose—what it does, who it serves,
and why it exists. It is typically developed by top managers and the board of directors .
6. A long-term goal describing what an organization wants to become in the future is its:
a) Mission statement
b) Vision statement
c) Strategic goal
d) Operational plan
Answerb) Vision statement
Rationale: While the mission statement is about the present purpose, the vision statement is a forward-
looking declaration of what the organization aspires to be in the long term .
7. In the VRIO framework, what does the "R" stand for?
a) Rational
b) Results-oriented
c) Rarity
d) Realistic
Answerc) Rarity
Rationale: VRIO is a tool for analyzing a firm's competitive potential. It stands
for Valuable, Rare, Imitability (Costly to Imitate?), and Organization .
8. According to the VRIO framework, if a resource is valuable and rare but not costly to imitate, the
company can expect to have a:
, a) Sustained competitive advantage
b) Temporary competitive advantage
c) Competitive disadvantage
d) Equal competitive advantage
Answerb) Temporary competitive advantage
Rationale: A resource provides a sustained advantage only if it is valuable, rare, and costly to imitate. If
it is easy to imitate, competitors will copy it, and the advantage will only be temporary .
9. What is a "means-end chain" in the context of goal setting?
a) A list of the company's core values
b) An integrated series of goals where lower-level goals contribute to higher-level ones
c) A method for firing underperforming employees
d) A type of single-use plan
Answerb) An integrated series of goals where the accomplishment of lower-level goals contributes to
the achievement of higher-level goals
Rationale: The means-end chain illustrates the hierarchy of goals. Achieving tactical goals (the means) is
the path to achieving strategic goals (the end) .
10. A human resources policy regarding sexual harassment that applies to all employees at all times is
an example of a:
a) Single-use plan
b) Program
c) Standing plan
d) Project
Answerc) Standing plan
Rationale: Standing plans are used for activities that occur repeatedly. They include policies (general
guidelines), procedures, and rules, and are designed to create organizational efficiency .
11. A company's plan to launch a new product, involving a unique set of activities that will not be
repeated, is considered a:
a) Standing plan
b) Single-use plan
c) Vision statement
d) Rule
Answerb) Single-use plan
Rationale: Single-use plans are developed for one-time, unique situations. Programs and projects are the
primary forms of single-use plans .
12. Which of the following is NOT a criterion in the SMART goals framework?
a) Specific
b) Measurable
c) Simple
d) Time-bound
