[GDMS] Graduate Diploma in Management
Studies Certification Exam Preparation
Question 1. Which of the following functions is NOT traditionally listed among the five basic
management functions?
A) Planning
B) Organizing
C) Innovating
D) Controlling
Answer: C
Explanation: The classic functions are planning, organizing, staffing, directing, and controlling;
innovating is a modern activity but not one of the original five.
Question 2. According to Mintzberg, which managerial role involves negotiating with suppliers
and customers?
A) Figurehead
B) Liaison
C) Negotiator
D) Monitor
Answer: C
Explanation: The Negotiator role (part of interpersonal roles) specifically deals with external
negotiations.
Question 3. In the classical management approach, which principle emphasizes a clear chain of
command?
A) Unity of direction
B) Division of work
C) Scalar chain
D) Authority and responsibility
,[GDMS] Graduate Diploma in Management
Studies Certification Exam Preparation
Answer: C
Explanation: The scalar chain principle defines a clear hierarchy from top to bottom.
Question 4. Which ethical framework focuses on the greatest good for the greatest number?
A) Deontology
B) Utilitarianism
C) Virtue ethics
D) Rights theory
Answer: B
Explanation: Utilitarianism evaluates actions based on overall happiness or utility.
Question 5. Herzberg’s Two‑Factor Theory classifies “recognition” as a:
A) Hygiene factor
B) Motivator
C) Personal factor
D) Environmental factor
Answer: B
Explanation: Recognition is a motivator that leads to higher satisfaction when present.
Question 6. According to Maslow, which need is highest in the hierarchy?
A) Safety
B) Esteem
C) Self‑actualization
D) Belongingness
Answer: C
,[GDMS] Graduate Diploma in Management
Studies Certification Exam Preparation
Explanation: Self‑actualization sits at the top of Maslow’s pyramid.
Question 7. Vroom’s Expectancy Theory states that motivation is a product of expectancy,
instrumentality, and:
A) Valence
B) Equity
C) Reinforcement
D) Satisfaction
Answer: A
Explanation: Valence refers to the value placed on the expected reward.
Question 8. Tuckman’s model of team development includes all the following stages EXCEPT:
A) Forming
B) Storming
C) Performing
D) Consolidating
Answer: D
Explanation: The four stages are forming, storming, norming, and performing; consolidating is
not a stage.
Question 9. “Groupthink” is most likely to occur when a group:
A) Has high diversity of opinions
B) Encourages dissenting views
C) Seeks unanimity and avoids conflict
D) Uses structured decision‑making tools
, [GDMS] Graduate Diploma in Management
Studies Certification Exam Preparation
Answer: C
Explanation: Groupthink arises from a desire for cohesion that suppresses alternative
viewpoints.
Question 10. Which of the following best describes “organizational culture”?
A) The formal structure of authority
B) The shared values, beliefs, and norms of members
C) The legal framework governing employee relations
D) The market position of the firm
Answer: B
Explanation: Culture reflects collective assumptions and practices shaping behavior.
Question 11. In the double‑entry bookkeeping system, every debit entry must be matched with
a:
A) Credit entry of equal amount
B) Debit entry of opposite amount
C) Revenue entry
D) Cash entry
Answer: A
Explanation: Double‑entry requires equal debits and credits for each transaction.
Question 12. Which financial statement shows a company’s financial position at a specific point
in time?
A) Income statement
B. Statement of cash flows
C. Balance sheet
Studies Certification Exam Preparation
Question 1. Which of the following functions is NOT traditionally listed among the five basic
management functions?
A) Planning
B) Organizing
C) Innovating
D) Controlling
Answer: C
Explanation: The classic functions are planning, organizing, staffing, directing, and controlling;
innovating is a modern activity but not one of the original five.
Question 2. According to Mintzberg, which managerial role involves negotiating with suppliers
and customers?
A) Figurehead
B) Liaison
C) Negotiator
D) Monitor
Answer: C
Explanation: The Negotiator role (part of interpersonal roles) specifically deals with external
negotiations.
Question 3. In the classical management approach, which principle emphasizes a clear chain of
command?
A) Unity of direction
B) Division of work
C) Scalar chain
D) Authority and responsibility
,[GDMS] Graduate Diploma in Management
Studies Certification Exam Preparation
Answer: C
Explanation: The scalar chain principle defines a clear hierarchy from top to bottom.
Question 4. Which ethical framework focuses on the greatest good for the greatest number?
A) Deontology
B) Utilitarianism
C) Virtue ethics
D) Rights theory
Answer: B
Explanation: Utilitarianism evaluates actions based on overall happiness or utility.
Question 5. Herzberg’s Two‑Factor Theory classifies “recognition” as a:
A) Hygiene factor
B) Motivator
C) Personal factor
D) Environmental factor
Answer: B
Explanation: Recognition is a motivator that leads to higher satisfaction when present.
Question 6. According to Maslow, which need is highest in the hierarchy?
A) Safety
B) Esteem
C) Self‑actualization
D) Belongingness
Answer: C
,[GDMS] Graduate Diploma in Management
Studies Certification Exam Preparation
Explanation: Self‑actualization sits at the top of Maslow’s pyramid.
Question 7. Vroom’s Expectancy Theory states that motivation is a product of expectancy,
instrumentality, and:
A) Valence
B) Equity
C) Reinforcement
D) Satisfaction
Answer: A
Explanation: Valence refers to the value placed on the expected reward.
Question 8. Tuckman’s model of team development includes all the following stages EXCEPT:
A) Forming
B) Storming
C) Performing
D) Consolidating
Answer: D
Explanation: The four stages are forming, storming, norming, and performing; consolidating is
not a stage.
Question 9. “Groupthink” is most likely to occur when a group:
A) Has high diversity of opinions
B) Encourages dissenting views
C) Seeks unanimity and avoids conflict
D) Uses structured decision‑making tools
, [GDMS] Graduate Diploma in Management
Studies Certification Exam Preparation
Answer: C
Explanation: Groupthink arises from a desire for cohesion that suppresses alternative
viewpoints.
Question 10. Which of the following best describes “organizational culture”?
A) The formal structure of authority
B) The shared values, beliefs, and norms of members
C) The legal framework governing employee relations
D) The market position of the firm
Answer: B
Explanation: Culture reflects collective assumptions and practices shaping behavior.
Question 11. In the double‑entry bookkeeping system, every debit entry must be matched with
a:
A) Credit entry of equal amount
B) Debit entry of opposite amount
C) Revenue entry
D) Cash entry
Answer: A
Explanation: Double‑entry requires equal debits and credits for each transaction.
Question 12. Which financial statement shows a company’s financial position at a specific point
in time?
A) Income statement
B. Statement of cash flows
C. Balance sheet
