BUS J401 Chapters 4-6 Exam
Chapters 4-6
Student:
1. The makeup of goods and services in the Gross Domestic Products of developed countries has
changed over the last decade. More than 50 percent of the value of GDP of developed countries is
based on
A. clothing and apparel.
B. capital accumulation.
C. knowledge.
D. financial management.
2. As the competitive environment changes, strategic management must focus on different aspects of
the organization. Recently, strategic management has moved from focusing on tangible resources to
A. fixed capital.
B. working capital.
C. investment capital.
D. intangible resources.
3. Changes in our economy have forced firms to be concerned with protecting
their knowledge workers, social capital, and intellectual capital.
A. less
B. more
C. potentially
D. not
4. In the knowledge economy, if a large portion of company value is in intellectual and human assets,
the difference between the market value and book value of the company should a company
with mostly physical and financial assets.
A. be equal to
B. not be correlated with
C. be smaller than
D. be larger than
5. According to the text, intellectual capital is the difference between the market value and the book value
of a firm. Intellectual capital can be increased by
A. increasing retention of below average workers.
B. attracting and retaining knowledgeable workers.
C. decreasing labor costs.
D. increasing the turnover of employees.
6. Which of the following firms would you expect to have the highest ratio of market value to book
value?
A. Apple
B. General Motors
C. Intel
D. Nucor
7. Human capital includes
A. the relationships between people.
B. an improved product.
C. the output from assembly line employees.
D. capabilities, knowledge, and skills of an individual.
,BUS J401 Chapters 4-6 Exam
8. Creativity and problem solving ability are considered to be part of capital.
A. physical
B. human
C. social
D. emotional
9. The network of relationships that individuals have throughout the organization is known as
A. human capital.
B. social capital.
C. intellectual capital.
D. tacit knowledge.
10. Tacit knowledge
A. is the same as explicit knowledge.
B. can be accessed only with the consent of the employees.
C. is found mostly at the lower levels of the organization.
D. can be codified but not reproduced.
11. New knowledge involves the continual interaction between and knowledge.
A. intellectual; pragmatic
B. tacit; explicit
C. theoretical; practical
D. detailed; tacit
12. Two software engineers working together on a computer code share their knowledge in order to
create new knowledge.
A. explicit
B. theoretical
C. tacit
D. easily reproduced
13. Today, the loyalty of a knowledge worker to his or her employing firm has compared to his
or her loyalty to his or her profession and colleagues.
A. increased
B. remained the same
C. decreased
D. no correlation when
14. The text discusses three areas a firm must be concerned with in order to keep their best and
brightest employees from leaving. These include all of the following except
A. hiring/selecting.
B. developing.
C. sorting/absorbing.
D. retaining.
15. Managing a knowledge intensive workforce is very challenging. The best way for a firm to manage
its workforce is to
A. retain knowledge workers.
B. balance efforts in the attraction, selection, and retention of top talent.
C. attract the brightest employees.
D. ensure that it pays higher salaries than its rivals.
16. Firms must compete for top talent. In attracting and selecting employees, firms must strive to select
the best fit for both the employee and the firm. In an effort to reduce wasted time and effort in
interviewing too many candidates while assuring a good candidate pool, a firm should
A. run employment ads in the newspaper.
,BUS J401 Chapters 4-6 Exam
B. use a pre-interview quiz.
C. only let lower level employees interview job candidates.
D. refrain from hiring by referrals from present employees.
, BUS J401 Chapters 4-6 Exam
17. Many companies use referrals by current employees as a source for new hiring and even
monetarily reward them because
A. it is less expensive than the fees paid to headhunters.
B. current employees normally are careful in recommending someone due to their personal credibility.
C. it is a good test of employee loyalty.
D. current employees are careful in their recommendations; it is less expensive than the fees paid
to headhunters.
18. QFQ, Incorporated desires to have the most qualified people in every position throughout
its organization. This is an example of a concern for
A. decreasing labor intensive training.
B. developing social networks.
C. leveraging organizational structure.
D. developing human capital.
19. Developing human capital is essential to maintaining a competitive advantage in the current
knowledge economy. Efforts and initiatives to develop human capital should be directed
A. at top managers.
B. at human resource departments.
C. throughout the firm at all levels.
D. at the employees themselves.
20. Maintaining a competitive workforce is very challenging in the current economy. The role of
evaluating human capital, in recent years, has
A. remained the same.
B. increased.
C. become less important.
D. decreased.
21. In a 360-degree evaluation and feedback system, which of these does not rate the skills and
performance of an individual?
A. superiors
B. family
C. direct reports
D. colleagues
22. Attracting and retaining human capital is a challenge for many firms today. Firms experiencing
high turnover should
A. focus on increased recruiting.
B. decrease money spent on human capital.
C. adopt effective retention strategies.
D. make their work environment less stimulating.
23. In order to take advantage of investment in human capital, a firm should
A. rotate workers through functions in the company as quickly as possible.
B. keep employees in the same position forever.
C. refrain from training individual employees.
D. establish practices that will enhance employee retention.
24. The least effective way to retain human capital is to
A. encourage employee identification with organizational mission and goals.
B. provide employees with a challenging and stimulating work environment.
C. require employees to sign agreements that prevent them from working for competitors in the future.
D. provide employees with financial and nonfinancial rewards and incentives.
Chapters 4-6
Student:
1. The makeup of goods and services in the Gross Domestic Products of developed countries has
changed over the last decade. More than 50 percent of the value of GDP of developed countries is
based on
A. clothing and apparel.
B. capital accumulation.
C. knowledge.
D. financial management.
2. As the competitive environment changes, strategic management must focus on different aspects of
the organization. Recently, strategic management has moved from focusing on tangible resources to
A. fixed capital.
B. working capital.
C. investment capital.
D. intangible resources.
3. Changes in our economy have forced firms to be concerned with protecting
their knowledge workers, social capital, and intellectual capital.
A. less
B. more
C. potentially
D. not
4. In the knowledge economy, if a large portion of company value is in intellectual and human assets,
the difference between the market value and book value of the company should a company
with mostly physical and financial assets.
A. be equal to
B. not be correlated with
C. be smaller than
D. be larger than
5. According to the text, intellectual capital is the difference between the market value and the book value
of a firm. Intellectual capital can be increased by
A. increasing retention of below average workers.
B. attracting and retaining knowledgeable workers.
C. decreasing labor costs.
D. increasing the turnover of employees.
6. Which of the following firms would you expect to have the highest ratio of market value to book
value?
A. Apple
B. General Motors
C. Intel
D. Nucor
7. Human capital includes
A. the relationships between people.
B. an improved product.
C. the output from assembly line employees.
D. capabilities, knowledge, and skills of an individual.
,BUS J401 Chapters 4-6 Exam
8. Creativity and problem solving ability are considered to be part of capital.
A. physical
B. human
C. social
D. emotional
9. The network of relationships that individuals have throughout the organization is known as
A. human capital.
B. social capital.
C. intellectual capital.
D. tacit knowledge.
10. Tacit knowledge
A. is the same as explicit knowledge.
B. can be accessed only with the consent of the employees.
C. is found mostly at the lower levels of the organization.
D. can be codified but not reproduced.
11. New knowledge involves the continual interaction between and knowledge.
A. intellectual; pragmatic
B. tacit; explicit
C. theoretical; practical
D. detailed; tacit
12. Two software engineers working together on a computer code share their knowledge in order to
create new knowledge.
A. explicit
B. theoretical
C. tacit
D. easily reproduced
13. Today, the loyalty of a knowledge worker to his or her employing firm has compared to his
or her loyalty to his or her profession and colleagues.
A. increased
B. remained the same
C. decreased
D. no correlation when
14. The text discusses three areas a firm must be concerned with in order to keep their best and
brightest employees from leaving. These include all of the following except
A. hiring/selecting.
B. developing.
C. sorting/absorbing.
D. retaining.
15. Managing a knowledge intensive workforce is very challenging. The best way for a firm to manage
its workforce is to
A. retain knowledge workers.
B. balance efforts in the attraction, selection, and retention of top talent.
C. attract the brightest employees.
D. ensure that it pays higher salaries than its rivals.
16. Firms must compete for top talent. In attracting and selecting employees, firms must strive to select
the best fit for both the employee and the firm. In an effort to reduce wasted time and effort in
interviewing too many candidates while assuring a good candidate pool, a firm should
A. run employment ads in the newspaper.
,BUS J401 Chapters 4-6 Exam
B. use a pre-interview quiz.
C. only let lower level employees interview job candidates.
D. refrain from hiring by referrals from present employees.
, BUS J401 Chapters 4-6 Exam
17. Many companies use referrals by current employees as a source for new hiring and even
monetarily reward them because
A. it is less expensive than the fees paid to headhunters.
B. current employees normally are careful in recommending someone due to their personal credibility.
C. it is a good test of employee loyalty.
D. current employees are careful in their recommendations; it is less expensive than the fees paid
to headhunters.
18. QFQ, Incorporated desires to have the most qualified people in every position throughout
its organization. This is an example of a concern for
A. decreasing labor intensive training.
B. developing social networks.
C. leveraging organizational structure.
D. developing human capital.
19. Developing human capital is essential to maintaining a competitive advantage in the current
knowledge economy. Efforts and initiatives to develop human capital should be directed
A. at top managers.
B. at human resource departments.
C. throughout the firm at all levels.
D. at the employees themselves.
20. Maintaining a competitive workforce is very challenging in the current economy. The role of
evaluating human capital, in recent years, has
A. remained the same.
B. increased.
C. become less important.
D. decreased.
21. In a 360-degree evaluation and feedback system, which of these does not rate the skills and
performance of an individual?
A. superiors
B. family
C. direct reports
D. colleagues
22. Attracting and retaining human capital is a challenge for many firms today. Firms experiencing
high turnover should
A. focus on increased recruiting.
B. decrease money spent on human capital.
C. adopt effective retention strategies.
D. make their work environment less stimulating.
23. In order to take advantage of investment in human capital, a firm should
A. rotate workers through functions in the company as quickly as possible.
B. keep employees in the same position forever.
C. refrain from training individual employees.
D. establish practices that will enhance employee retention.
24. The least effective way to retain human capital is to
A. encourage employee identification with organizational mission and goals.
B. provide employees with a challenging and stimulating work environment.
C. require employees to sign agreements that prevent them from working for competitors in the future.
D. provide employees with financial and nonfinancial rewards and incentives.
