Chapter 1—The Role of Business Research
TRUE/FALSE
1. Business research can be directed toward an element of an organization’s internal operations.
ANS: T PTS: 1 DIF: Moderate REF: p. 3
OBJ: LO: 01-01
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
2. Researchers in different functional areas of a business differ in the respect that they typically use
different research methods.
ANS: F
While researchers in different functional areas may investigate different phenomena, they are
similar to one another because they share similar research methods.
PTS: 1 DIF: Moderate REF: p. 4 OBJ: LO: 01-01
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
3. Business research is basically about conducting surveys.
ANS: F
Business research is more than conducting surveys. This process includes idea and theory
development, problem definition, gathering information, analyzing data, and communicating the
findings including potential implications.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
,4. The term “research” means “to search again.”
ANS: T PTS: 1 DIF: Moderate REF: p. 5
OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
5. A business researcher needs to be subjective in order to provide accurate information.
ANS: F
The researcher should be personally detached and free of bias attempting to find truth, so he or
she must be objective, not subjective.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
6. Business research is restricted to for-profit organizations.
ANS: F
Certainly, business research focuses on for-profit business activities, but it is also applicable to
other types of organizations, such as non-profits.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
7. Conducting research to determine why consumers visit Starbucks is an example of basic business
research.
ANS: F
This is an example of applied business research, which is conducted to address a specific decision
for a specific firm or organization, such as understanding why consumers visit Starbucks.
, PTS: 1 DIF: Hard REF: p. 5 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
8. The procedures and techniques used by applied researchers and basic researchers differ
substantially.
ANS: F
All research, whether basic or applied, involves the scientific method.
PTS: 1 DIF: Moderate REF: p. 6 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
9. The scientific method used by researchers is essentially the same process in social sciences, such
as business, as it is in “hard” sciences, such as biology or physics.
ANS: T PTS: 1 DIF: Moderate REF: p. 6
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
10. When ideas can be stated in researchable terms, we reach the hypothesis stage of the scientific
method.
ANS: T PTS: 1 DIF: Easy REF: p. 6
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
11. Research plays a more prominent role in product-oriented companies than in customer-oriented
companies.
ANS: F
, A product-oriented firm prioritizes decision making in a way that emphasizes technical
superiority in the product, and research may take a backseat.
PTS: 1 DIF: Moderate REF: p. 7 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Comprehension
12. Developing and implementing a business strategy involves six stages.
ANS: F
It involves four stages.
PTS: 1 DIF: Moderate REF: p. 8 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
13. Performance-monitoring research is primary used to evaluate employees.
ANS: F
Performance-monitoring research is a specific type of evaluation research that regularly,
sometimes routinely, provides feedback for evaluation and control of business activity, such as
monitoring sales data. While it may be used to evaluate employees, this is not necessarily the
primary use of this activity, nor is it limited to this activity.
PTS: 1 DIF: Hard REF: p. 9 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
14. Research should be conducted regardless of how long it will take to perform.
ANS: F
In many instances management believes that a decision must be made immediately, allowing no
time for research.
TRUE/FALSE
1. Business research can be directed toward an element of an organization’s internal operations.
ANS: T PTS: 1 DIF: Moderate REF: p. 3
OBJ: LO: 01-01
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
2. Researchers in different functional areas of a business differ in the respect that they typically use
different research methods.
ANS: F
While researchers in different functional areas may investigate different phenomena, they are
similar to one another because they share similar research methods.
PTS: 1 DIF: Moderate REF: p. 4 OBJ: LO: 01-01
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
3. Business research is basically about conducting surveys.
ANS: F
Business research is more than conducting surveys. This process includes idea and theory
development, problem definition, gathering information, analyzing data, and communicating the
findings including potential implications.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
,4. The term “research” means “to search again.”
ANS: T PTS: 1 DIF: Moderate REF: p. 5
OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
5. A business researcher needs to be subjective in order to provide accurate information.
ANS: F
The researcher should be personally detached and free of bias attempting to find truth, so he or
she must be objective, not subjective.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
6. Business research is restricted to for-profit organizations.
ANS: F
Certainly, business research focuses on for-profit business activities, but it is also applicable to
other types of organizations, such as non-profits.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
7. Conducting research to determine why consumers visit Starbucks is an example of basic business
research.
ANS: F
This is an example of applied business research, which is conducted to address a specific decision
for a specific firm or organization, such as understanding why consumers visit Starbucks.
, PTS: 1 DIF: Hard REF: p. 5 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
8. The procedures and techniques used by applied researchers and basic researchers differ
substantially.
ANS: F
All research, whether basic or applied, involves the scientific method.
PTS: 1 DIF: Moderate REF: p. 6 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
9. The scientific method used by researchers is essentially the same process in social sciences, such
as business, as it is in “hard” sciences, such as biology or physics.
ANS: T PTS: 1 DIF: Moderate REF: p. 6
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
10. When ideas can be stated in researchable terms, we reach the hypothesis stage of the scientific
method.
ANS: T PTS: 1 DIF: Easy REF: p. 6
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
11. Research plays a more prominent role in product-oriented companies than in customer-oriented
companies.
ANS: F
, A product-oriented firm prioritizes decision making in a way that emphasizes technical
superiority in the product, and research may take a backseat.
PTS: 1 DIF: Moderate REF: p. 7 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Comprehension
12. Developing and implementing a business strategy involves six stages.
ANS: F
It involves four stages.
PTS: 1 DIF: Moderate REF: p. 8 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
13. Performance-monitoring research is primary used to evaluate employees.
ANS: F
Performance-monitoring research is a specific type of evaluation research that regularly,
sometimes routinely, provides feedback for evaluation and control of business activity, such as
monitoring sales data. While it may be used to evaluate employees, this is not necessarily the
primary use of this activity, nor is it limited to this activity.
PTS: 1 DIF: Hard REF: p. 9 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
14. Research should be conducted regardless of how long it will take to perform.
ANS: F
In many instances management believes that a decision must be made immediately, allowing no
time for research.
