Peregrine Business Exam 2026 -
Expert Key Questions With Verified
Answers
TQM is most helpful to firms following the business strategy.
A. cost-leadership
B. integrated cost-leadership/differentiation
C. focused cost-leadership
D. focused differentiation - correct-answer -B. integrated cost-
leadership/differentiation
Diversification - correct-answer -Spreading out investments to reduce risk
Stakeholders - correct-answer -All the people who stand to gain or lose by the
policies and activities of a business and whose concerns the business needs to
address.
,2
Shareholders - correct-answer -Investors who purchase shares of stock in a
corporation.
Return on Investment - correct-answer -Shows how well an investment
performed; net profit after taxes divided by total assets
All the following are considered extrinsic motivators in Herzberg's two-factor
theory EXCEPT:
A. company policies.
B. benefits.
C. work itself.
D. working conditions. - correct-answer -C. work itself.
Which of the following is NOT one of the process motivation theories?
A. goal-setting theory
B. equity theory
C. expectancy theory
D. acquired needs theory - correct-answer -D. acquired needs theory
, 3
Equity Theory - correct-answer -Theory that states that people will be motivated
when they perceive that they are being treated fairly
Pygmalion Effect - correct-answer -Psychological phenomenon in which high
expectations lead to improved performance in a given area and low expectations
lead to worse.
Leader-Member Exchange Theory - correct-answer -Describes the process of
developing a lasting, strong connection of trust, liking, and mutual respect. Having
such a high-quality relationship with the leader increases the team members' job-
related well-being and effectiveness.
Behavioral Leadership Theory - correct-answer -Argues that the success of a
leader is based on their behavior rather than their natural attributes. Behavioral
leadership theory involves observing and evaluating a leader's actions and
behaviors when they are responding to a specific situation.
Expectancy Theory - correct-answer -Suggests that individuals are motivated to
perform if they know that their extra performance is recognized and rewarded