MGMT:2100 – PRINCIPLES OF BUSINESS
MANAGEMENT
MIDTERM EXAM 1 (2026/2027 Edition)
Total Questions: 200 | Time: 2.5 hours | Grade A Standard
SECTION A: MULTIPLE CHOICE (Questions 1–120)
1. Which of the following is not one of the four primary functions of
management?
a) Planning
b) Organizing
c) Budgeting
d) Controlling
Answer: c
Rationale: The four classic functions are Planning, Organizing, Leading, and
Controlling. Budgeting is a part of planning and controlling but not a separate
primary function. (a, b, d) are universally recognized.
2. According to Mintzberg’s managerial roles, a spokesperson falls under which
category?
a) Interpersonal
b) Informational
c) Decisional
d) Conceptual
Answer: b
Rationale: Mintzberg’s three categories: Interpersonal (figurehead, leader,
liaison), Informational (monitor, disseminator, spokesperson), Decisional
,(entrepreneur, disturbance handler, resource allocator, negotiator).
Spokesperson transmits information to outsiders.
3. Taylor’s scientific management focused primarily on:
a) Human relations
b) Efficiency at the task level
c) Organizational structure
d) External environment
Answer: b
Rationale: Taylor used time-motion studies to improve individual worker
efficiency. (a) is human relations movement (Mayo). (c) is administrative
management (Fayol, Weber). (d) is modern systems theory.
4. The Hawthorne Studies led to the surprising conclusion that:
a) Lighting was the primary factor in productivity
b) Pay is the only motivator
c) Social factors and group norms affect output
d) Bureaucracy is inefficient
Answer: c
Rationale: The studies found that workers’ output changed due to attention
received and informal group dynamics, not just physical conditions. (a) was
initially hypothesized but disproven. (b) is economic man assumption. (d)
unrelated.
5. Which level of management spends the most time on leading and
controlling?
a) Top managers
b) Middle managers
, c) First-line managers
d) Board of directors
Answer: c
Rationale: First-line managers directly supervise non-managerial employees,
requiring daily leading and real-time controlling. Top managers focus more on
planning and organizing (strategic). Middle managers do both.
6. In the general environment, the component that includes demographic
trends is:
a) Economic
b) Sociocultural
c) Political-legal
d) Technological
Answer: b
Rationale: Sociocultural factors include population age, income distribution,
attitudes, and lifestyles. Economic covers inflation, GDP. Political-legal covers
laws. Technological covers automation.
7. A company that is proactive in protecting the environment and sets standards
beyond legal requirements is practicing:
a) Obstructionist strategy
b) Defensive strategy
c) Accommodative strategy
d) Proactive strategy
Answer: d
Rationale: Proactive strategy seeks to lead the industry in social responsibility.
Obstructionist fights regulations. Defensive does minimum legally.
Accommodative meets legal but no more.
MANAGEMENT
MIDTERM EXAM 1 (2026/2027 Edition)
Total Questions: 200 | Time: 2.5 hours | Grade A Standard
SECTION A: MULTIPLE CHOICE (Questions 1–120)
1. Which of the following is not one of the four primary functions of
management?
a) Planning
b) Organizing
c) Budgeting
d) Controlling
Answer: c
Rationale: The four classic functions are Planning, Organizing, Leading, and
Controlling. Budgeting is a part of planning and controlling but not a separate
primary function. (a, b, d) are universally recognized.
2. According to Mintzberg’s managerial roles, a spokesperson falls under which
category?
a) Interpersonal
b) Informational
c) Decisional
d) Conceptual
Answer: b
Rationale: Mintzberg’s three categories: Interpersonal (figurehead, leader,
liaison), Informational (monitor, disseminator, spokesperson), Decisional
,(entrepreneur, disturbance handler, resource allocator, negotiator).
Spokesperson transmits information to outsiders.
3. Taylor’s scientific management focused primarily on:
a) Human relations
b) Efficiency at the task level
c) Organizational structure
d) External environment
Answer: b
Rationale: Taylor used time-motion studies to improve individual worker
efficiency. (a) is human relations movement (Mayo). (c) is administrative
management (Fayol, Weber). (d) is modern systems theory.
4. The Hawthorne Studies led to the surprising conclusion that:
a) Lighting was the primary factor in productivity
b) Pay is the only motivator
c) Social factors and group norms affect output
d) Bureaucracy is inefficient
Answer: c
Rationale: The studies found that workers’ output changed due to attention
received and informal group dynamics, not just physical conditions. (a) was
initially hypothesized but disproven. (b) is economic man assumption. (d)
unrelated.
5. Which level of management spends the most time on leading and
controlling?
a) Top managers
b) Middle managers
, c) First-line managers
d) Board of directors
Answer: c
Rationale: First-line managers directly supervise non-managerial employees,
requiring daily leading and real-time controlling. Top managers focus more on
planning and organizing (strategic). Middle managers do both.
6. In the general environment, the component that includes demographic
trends is:
a) Economic
b) Sociocultural
c) Political-legal
d) Technological
Answer: b
Rationale: Sociocultural factors include population age, income distribution,
attitudes, and lifestyles. Economic covers inflation, GDP. Political-legal covers
laws. Technological covers automation.
7. A company that is proactive in protecting the environment and sets standards
beyond legal requirements is practicing:
a) Obstructionist strategy
b) Defensive strategy
c) Accommodative strategy
d) Proactive strategy
Answer: d
Rationale: Proactive strategy seeks to lead the industry in social responsibility.
Obstructionist fights regulations. Defensive does minimum legally.
Accommodative meets legal but no more.
