Wollo university college of Business and economics Department of management 4 th year

regular students 2015 E.C exist exam model

Name________________________________________I.D______________Section_______
Instruction
 Choose the best answer only on the answer sheet
 Do not circle or visible mark on the question paper
 Time aloud 2 hours
1. Which of the following is not a type of decision-making?
A. Programmed C. Tactical
B. Non-programmed D. Strategic
2. Which of the following is not a leadership style?
A. Autocratic C. Laissez-faire
B. Democratic D. Authoritative
3. What is the purpose of SWOT analysis?
A. To identify the internal and external factors that impact an organization
B. To evaluate the financial performance of an organization
C. To assess employee satisfaction
D. To monitor the production process
4. What is the difference between leadership and management?
A. Leadership is about setting a vision, while management is about executing it
B. Leadership is about controlling resources, while management is about motivating
employees
C. Leadership is about planning, while management is about communication
D. Leadership and management are interchangeable terms
5. Which of the following is not a component of the SMART criteria for goal setting?
A. Specific C. Achievable
B. Measurable D. Resourceful
6. Which of the following is NOT one of the four basic functions of management?
A. Planning C. Marketing
B. Controlling D. Leading
7. Which of the following is an example of an organizational structure?
A. Mission statement C. Job description
B. Budget D. Chain of command
8. Which of the following is not a motivation theory?
A. Maslow's Hierarchy of Needs C. Equity Theory
B. Herzberg's Two-Factor Theory D. Contingency Theory
9. What is the purpose of performance appraisal?
A. To determine employee compensation
B. To provide feedback on employee performance
C. To select candidates for promotion
D. To evaluate the effectiveness of training programs
10. Which of the following is NOT one of the levels of management in an organization?
A. Top-level C. Lower-level
B. Middle-level D. Front-line
11. Which of the following is a primary goal of the controlling function of management?
A. To motivate employees C. To monitor performance
B. To set objectives D. To develop strategies
12. Which of the following management approaches emphasizes the importance of human
needs and motivation in the workplace?
A. Classical approach C. Scientific approach
B. Behavioral approach D. Contingency approach
13. The motto for entrepreneurship is :

A. From job seeking to job creations C. From self-employment to paid

B. From job creation to job seeking employment
D. From independence to dependence

14. The significance of entrepreneurship includes all except

A. reducing unemployment C. export promotion

B. utilization of local resources D. Economic dependence

15. All are the qualities of successful entrepreneurs except

A. Opportunity seeking C. Persuasion and networking

B. Gambling D. Independence and self-confidence

16. The famous quote of the know entrepreneur Warren Buffet “Never test the depth of a
river with both feet” best signifies:

A. Entrepreneurs are persistent C. Entrepreneurs autonomous

B. Entrepreneurs are moderate risk takers D. Entrepreneurs are pessimists

17. A business plan is

 A. used to determine the viability of the C. helpful as a guide to the entrepreneur
business in planning activities
B. useful in acquiring financing D. insignificant as the future is full of
uncertainties

18. In which part of a business plan is the legal form of the business addressed

A. Financial plan C. Organization and management plan

B. Operations and production plan D. Marketing Plan

19. Enterprises in Ethiopia having an investment in plant and machinery (a paid-up capital
of total asset) of birr100, 000 to birr 1.5 million and operating with 6-30 persons in the
manufacturing sector are

A. Micro enterprises C. Medium enterprises

B. Small enterprises D. Large enterprises

20. What forces entrepreneur to innovative new products and services?

A. Change in technology C. Change in taste of customers

B. The competition in the market D. All

21. The famous quote of Beth Comstock “You can’t sell anything if you can’t tell anything”
best goes with which element of the marketing mix.

A. Product C. Promotion
B. Price D. Price

22. The corporate social responsibility of entrepreneurs is composed of the following

obligations except:

A. economic responsibility C. religious responsibility

B. ethical responsibility D. philanthropic responsibility

24. Among the following which one is not true about marketing?
A. Marketing is concerned with making money through customer satisfaction.
B. When we are searching jobs, we are marketing ourselves.
C. The first objective in marketing is to discover consumers need and want
D. Marketing is a part of selling and advertising.
25. All are true regarding core concepts of marketing except?
A. Marketing starts with human needs and wants.
 B. Demands are desires for specific satisfiers of needs.
C. Wants become demands when supported by purchasing power.
D. Idea can be marketed since it is considered as a product.
26. Which one of the following is incorrect about philosophies of marking?
A. The production concept focuses on improving production and distribution efficiency.

B. The product concept focuses on making superior products and improving them over time.

C. The selling concept holds that consumers will not buy enough amount of the company’s
product unless it undertakes aggressive selling/promotion.

D. The marketing concept gives emphasis for the well-being of the society.

27. Which one is different from the other?

A. Demographic environment C. Socio-cultural environment
B. Economic environment D. Competitors
28. Identify the false statement about factors that affect consumers buying behavior:

A. A customer’s buying behavior is influenced by social factors, such as the groups to which the
customer belongs and social status.

B. The groups with whom you interact directly or indirectly doesn’t influence your purchase
decisions. Therefor the study of reference groups has no importance to the marketer.
C. Cultural factors like language, religion and social class have a significant impact on customer
behavior.
D. The profession or the occupation a person has an impact on the products they consume.
29. Refers to segmenting the market based on customers who choose to make a purchase
based on an event or occasion. For example, Valentine’s Day or Mother’s Day.

A. Geographic segmentation C. Psycho-graphic segmentation

B. Behavioral Segmentation D. Demographic segmentation
30. Identify the wrong statement.

A. Organizational consumers purchase raw materials for use in further production or

operations whereas final consumers usually acquire the finished items for personal use.
B. Final consumers more frequently employ competitive bidding and negotiation.
C. Organizational consumers are likely to require exact product specifications..

D. None of the above

31. is a name, term, sign, symbol, design, or combination of them which is
intended to identify the goods or services of one seller from the other company.
A. Pacakaging C. After sales service
B. Labeling D. Brand
32. refers to designing and producing the container or wrapper for a product.
A. Labeling C. Branding
B. Pacakaging D. Product
33. Which one of the following is incorrect about consumer products?
A. Convenience products are consumer products that the consumer usually buys frequently.

B. Convenience products are not easily accessible in the market.

C. Shopping products are consumer products that the consumer purchased less frequently.

D. Specialty products are consumer products with unique characteristics or brand

identification.

34. Among the following which one is correct about industrial products?

A. Materials and parts refers to those products that make up the final product of the
company.

B. Capital items refers to items that neither make up the final product of the company nor are
consumed but are used to produce the final product of the company.

C. Supplies refer to those products that are consumed in the production process or operation
of buyers.

D. All of the above.

35. Identify the false statement about product life cycle?

A. In introduction stage there is high cost of C. In growth stage there is intense

advertising. competition.

B. In maturity stage sale volume reaches its D. There is low competition in introduction
maximum. stage.
36. Which of the following level are the focuses’ of OB?

A. Individuals, Organization, Society C. Employee, Employer, Management

B. Society, Organization, Nation D. Individual, Groups, Organization.
37. Which one of the following is independent variable in OB?

A. Productivity C. motivation
B. Absenteeism D. Job satisfaction
38. Is a process in which individuals organize and interpret their sensory
impressions in order to give meaning to their environment?

A. Personality C. Perception
B. Behavior D. Attitude
39. Refers to an individual's belief that he or she is capable of performing a task.
A. Self-efficacy C. Self-concept

B. self- esteem D. locus of control

40. On which stages of team development has the team formed a common set of expectations of
members’ behavior?

A. Storming C. Performing
B. Norming D. Adjourning
41. Describe those groups that have been brought together to complete an activity
or function.
A. Task group C. Friendship group
B. Command group D. Interest group
42. Which one of the following is the characteristic of Maslow’s need hierarchy theory of
motivation?

A. A satisfied need can motivate human behavior.

B. People gratify their esteem needs first
C. Relative satisfaction of lower level need is necessary to activate the next higher level need
D. People’s needs can be arranged into a hierarchy
43. According to Hertzberg’s theory of motivation which item can be considered as motivational
factors?
A. Company policy C. Inter-personal relations

B. Salary D. Recognition

44. An individual’s power derived from an individual’s recognized superior skill and abilities in
a certain area is .
A. Expert power C. Referent
B. Legitimate Power D. Reward power
45. From the following types of organizational culture which one is characterized by values
formality, rules, standard operating procedures and hierarchical coordination?
A. Entrepreneurial culture C. Bureaucratic culture
B. Market culture D. Clan culture
46. Identify the wrong statement about leadership and management respectively
A. Creating vision and strategy and organizing and staffing
B. Focuses on the interpersonal relationships and Focuses on the tasks
C. Maintains stability and Creates change
D. All are correct
47. All are correct about Autocratic leadership style except
A. Recognizes and encourages achievement
B. Rely on threats and punishment to influence staff
C. Leader expects high degree of compliance by subordinates
D. All are correct
48. Which one of the following statement is incorrect about leadership
A. Enabling a group to engage together
B. The art or process of influencing people by using the coercive power
C. Providing the information, knowledge and methods to realize that vision,
D. The art of motivating a group of people to act towards achieving a common goal
 49. Which leadership theory deals that the effectiveness of a particular style of leader behavior
depends on the situation.

A. Situational Theories C. Trait Theory

B. Behavioral Leadership Theory D. Great man theory

50. One of the following is not functional outcome of conflict

A. Conflicts that hinder group C. Improve its performance

performance D. None
B. Some conflicts support the goals of
the group

51. Which conflict management technique characterized by balancing concern for oneself with
concern for the other party?

A. Compromising D. Competing
B. Accommodating
C. Collaborating

52. Which one of the following is not true about Organizational Change?
A. Adoption of a new idea or behavior by an organization.
B. Focus on only the shift to a technology-driven workplace
C. involves redesigning and renewing the entire organization
D. All are true
53. Identify the correct sequence of the key process in Planned Change

A. Planning, monitoring and C. Unfreezing, transition and

implementing Refreezing
B. Planning, implementing and D. A and C
monitoring
54. Which of the following statements best describe the Transformational type of change
A. Changing an organization’s structure and culture from the traditional top-down
B. Continuous improvement as a quality management process
C. Implementation of new computer system to increase efficiencies
 D. All
55. Which qualities of effective leaders states that try to think out of the box to have good visions

A. Vision D. Passion
B. Creativity
C. Intellectual Drive
56. ABC Company is located in Bahir Dar. For the coming year 2024 G.C it is planning to adjust
its compensation policies and practices. What issues should consider by the company before
making such decision except.

A. Government regulation D. Labor market condition

B. Cost of living E. Performance of employees
C. Seniority without relevant experience

57. In which areas of human resource management activity Government regulation cannot
interfere?

A. Recruitment and selection D. Collective bargaining.

B. Hours of work E. None of the above
C. Compensation

58. ………………………… is a type of HR forecasting technique which is based on the

estimates made by executives or experts who are very familiar with the entire nature of the
jobs in the organization.

A. Delphi technique E. None of the above

B. Unit demand forecasting
C. Trend projection
D. Modeling & multiple prediction

59. From the following alternatives which one is the use of performance appraisal result except?

A. To know who should receive pay raises

B. Help man power to intervene with appropriate action
C. To identify the training and development needs
 D. To offer for employment
E. None of the above
60. Which one is not a characteristic of effective and sound disciplinary action?

A. It is immediate D. There should be prior warning notice

B. It is consistent E. All of the above
C. It should be personal

61. Dr. Abebe was personally go to HI-TECH Technology Group and gave the application form
and other required documents to the general manager, also told him that he wants to join the
company whenever there is an open vacant position in his field. Based on the above issue
what type of recruitment technique used by the company for Dr. Abebe to be recruited?

A. College & university recruitment D. Self-employed workers

B. Walk in E. All of the above
C. Write in

62. Assume an employee is transferred to another processing unit, which helps him to know the
whole production process of the company’s product. Therefore, which type of transfer is it?

A. Shift Transfer D. Versatility Transfer

B. Involuntary Transfer E. None of the above
C. Remedial Transfer

63. ……………………. is the act by which the individual acquires skills, knowledge, and
abilities that result in a relatively permanent change in his/her behavior?

C. Performance appraisal
A. Training D. Learning
B. Development E. Career development

64. Which one of the following is not considered as the problem of job analysis?

A. Lack of management support D. Co-operation from employees

B. Biasness of job analyst E. None of the above
C. Using single data source
 65. From the following alternative which one will be an appropriate remedial actions made by
the company for sexual harassment?
A. Hiring the person for the job
B. Providing financial compensation for the lost opportunity
C. Reimbursement of travel costs to attend hearing
D. Reimbursement of all or part of the lost wages or salary
E. All of the above

66. One of the following is not defined Management Information System?

A. It provides information that is needed to manage organizations efficiently and effectively.
B. It provides right information for managers that need to take decisions at right time.
C. It is system of collecting, storing and disseminating data in the form of information needed
to carry out the functions of management
D. It is the process of managing the production of products and services
67. One of the following Information System resource, which describes the physical device and
material which used to process the information?
A. Hardware C. Storage
B. Software D. People
68. What are raw facts that describe a particular phenomenon?
A. Data C. Knowledge
B. Information D. Wisdom
69. Which one of the following is not the major importance of management information System?
A. To minimizes information overload C. To brings co-ordination
B. To encourages decentralization D. To encourages centralization
70. Which of the following is/ are not the fundamental roles of information system in Business?
A. To support for competitive advantage C. To support for disintegrations of
B. To support for decision making business activates
D. To support for business operations
71. Characteristics of information that have been collected without any distorted view of the situation.
A. Completeness C. Impartiality
B. Explicitness D. Adequacy
72. One of the following operation support systems to support communications, and coordination
among teams and work groups in the organization?
A. Transaction Processing Systems C. Enterprise Collaboration Systems
B. Process Control Systems D. Executive information system
73. Which one of the following is the discipline of enabling individuals, teams and entire
organizations to collectively and systematically create, share and apply knowledge, to better
achieve their objectives?
A. Operation Research C. Knowledge Management
B. Management information System D. Operation Management
74. Which one of the following is not correct about the distinction between tacit and explicit
knowledge?
A. Explicit knowledge can be articulated and codified items, while tacit knowledge is hidden.
B. Explicit knowledge can be easy disseminate, while tacit knowledge is difficult to
disseminate
C. Explicit knowledge is personal, while tacit knowledge is impersonal
D. Explicit knowledge has less significance as a source for innovation, while tacit knowledge
has more significance as a potential source for innovation
75. According to the resource-based view of the firm Knowledge has become the key strategic
resource to get sustainable competitive advantage and, in so doing, earn superior returns.
According to this theory; one of the following is not considered the conditions to be strategic
assets of Knowledge?
A. It is rare C. It can not be replaced
B. It can add value D. It can be imitated
76. Which one of the following is the correct Sequence?
A. DataKnowledge  information Wisdom
B. InformationData  Knowledge Wisdom
C. Datainformation KnowledgeWisdom
D. Datainformation Wisdom Knowledge
77. What involves the utilization of internet information technology to run and improve the
productivity or profitability of a business?

A. E-government B. E-learning
 C. E-business D. E-education

78. One of the following is not the principles of technology ethics?

A. Technology must outweigh the harm.
B. Technology should understand the risks.
C. The benefits and burdens of the technology should be distributed fairly
D. Technology should accept less risk
79. Information technology has caused ethical business controversy in the areas of
A. intellectual property rights
B. customer and employee privacy
C. security of company information,
D. All of the above
80. Which one of the following is NOT the Computer crime?
A. Unauthorized use, access, modification, and destruction of IS resources.
B. Unauthorized release of information
C. Authorized copying of software
D. Denying an end user access.
81. How large companies are protecting themselves from cyber-crime.
A. Use Antivirus C. Use Data backup
B. Use Virtual private networks D. All of the above
82. Which one of the following statements is false about the project?
A. Most of the project is a continuous process by nature.
B. A project is a unique process intended to achieve target outcomes.
C. Project is a temporary endeavor to give a unique product or service.
D. None of the above
83. Which one of the following is the basic tenet of project management?
A. Time B. Cost C. scope D. All
84. What one of the following is true about project management?

[Link] is the application of knowledge, skills, tools and techniques to project activities to meet
project objectives

B. In order to efficient project management is concerned with doing right things.

 C. Project management is goal oriented.

D.A&C
85. Which one of the following is the correct process of project Management?

A. Identification executing planning monitoring and controlling Closing

B. Initiating planning executing monitoring and controlling Closing

C. Identification Planning executing monitoring and controlling

Closing

D. Initiating executing planning monitoring and controlling Closing

86. A project cycle proposed by the United Nations Industrial Development Organization
(UNDIO)?
A. Identification , preparation, appraisal and selection, implementation and evaluation

B. Pre-investment phase, investment phase and operational phase

C. identification, preparation, implementation, appraisal and selection, and evaluation

D. Investment phase, pre-investment phase, and operational phase

87. Which one of the following is a source of project ideas?
A. Trade deficit B. Natural disaster C. Future demand D. All

88. Which one of the following is not included in the feasibility study of a project?

A. Technical feasibility study B. Financial feasibility study C. Market Feasibility study

D. All
89. Among the following alternatives, one is the administrative overhead costs of a project.

A. Production personal labor B. Fixed cost C. Rent and leasing cost D. Material cost
90. Which one of the following activities does not include site preparation and development of a
project?

A. Grading and leveling the site

 B. Demolition and removal of existing structures

C. Administrative and factory buildings

D. Relocation of existing pipelines, cables, and power

91. Which of the following are the marketing instruments that a market analyst should take into
account?
A. Product B. Promotion C. Price D. All
92. The only difference in the definitions of domestic marketing and international
marketing is that ______.
A. the marketing activities take place in more than one country
B. the marketing activities take place in one country only
C. the marketing activities take place in host country only
D. the marketing activities MUST take place in all countries
93. The term green Marketing in International Marketing is related to ________
A. Influence of green color on marketing decisions
B. Environmental concerns and protection
C. Marketing of Natural Farming
D. Greenhouse effect
94. ___ is the most traditional and well-established form of operating in foreign markets.
A. Importing C. Country centred
B. Exporting D. None of the above
95. ______ happens when Exports are more than imports.
A. Trade surplus C. Trade deficit
D. Trade contract
B. Trade barrier

96. ____ is a group of countries agree to abolish all trade restrictions and barriers.
A. Common market
B. Economic Union
C. Custom Union
D. Free Trade Area
97. ______ suggests that each country should specialize in producing only those goods which it
can produce efficiently.
A. Theory of comparative advantage
B. Theory of absolute advantage
C. Product Life Cycle Theory
D. Hecksher Ohlin Theory
98. _________ stresses on the ‘relative cost difference’ rather than ‘absolute cost difference’
between the goods as the basis for carrying out trade.
A. Theory of absolute advantage
B. Theory of comparative advantage
C. Hecksher Ohlin Theory
D. Theory of mercantilism
99. According to ‘New Trade Theory’ a firm acquires export competitiveness due to _______.
A. Specialization and economies of scale
B. Being the first mover in the market
C. Government support
D. Gold and silver motive
100. Which one of the following is the most difficult stage of strategic management?

A. Strategy Formulation C. Strategy Evaluation

B. Strategy Implementations D. Strategy control

101. A strategy to achieve a competitive advantage by creating a product that is perceived by

customers to be unique in some important way is

A. Cost leadership strategy C. Focused strategy

B. Differentiation strategy D. All of the above

102. Which matched strategy is used for a firm in the critical financial problems and is
availing merger with Multinational Corporation?

A. SO Strategies C. ST Strategies
B. WO Strategies D. WT Strategie
103. Which one of the following statement is not true?
A. Annual objectives are especially important in strategy implementation, whereas long-term
objectives are particularly important in strategy formulation.
B. Policies are the means by which annual objectives will be achieved
C. Strategies are the means by which long-term objectives will be achieved.
D. Strategic management is the highest of these levels in the sense that it is the broadest -
applying to all parts of the firm - while also incorporating the shortest time horizon.
104. A Strategy that seeks to increase market share for present products or services in present
markets through greater marketing efforts is

A. Market penetration C. Product development

B. Market development D. Diversification

105. Which one of the following strategy is best if your company faced financial problems or
certain parts of the organization are doing poorly and forecasts hard times ahead related to
Challenges from new competitors & products?

A. Integration Strategies C. Diversification Strategies

B. Intensive Strategies D. Defensive Strategies

106. Which one of the following is different from others?

A. Strategy B. Structure

C. Skill D. Systems

107. All of the following are true about mission statement. Except?
A. An enduring statement of purpose
B. Distinguishes one firm from another in the same business
C. A declaration of a firm’s reason for existence
D. The framework for all your strategic planning.
108. Which one of the following is a process for gathering and analyzing information about
the competition’s activities and general business trends to further a business’ own goals?

A. Competitive analysis B. Environmental scanning

C. SWOT analysis D. Competitive Intelligence Programs

109. According to BSC model one of the following allows the organization to see how the
business looks from the shareholders point of view?

A. Customer perspective
B. Internal perspective
C. Innovation and learning perspective
D. Financial perspective
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