WALLAGA UNIVERSITY

FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
MODEL EXAM FOR MANAGEMENT

Choose the Correct Answer from the Given Alternatives

1. The general manager of ABC Company provides a press conference to the government,
customers and other concerned bodies about its current operation. What kind of role is he
play?
A) Disseminator role
B) Negotiator role
C) Spokesperson role
D) Figure head role
2. In which Fayol’s administrative principles, Comradeship share enthusiasm foster
devotion to the common cause and management foster the morale of its employees?
A) Esprit de corps
B) Unity of Command
C) Initiative
D) Equity
3. A small town's preparation for a visit by the President would be considered what type of
plan?
A) Standing
B) Long-term
C) Single-use
D) Short term.
4. Which decision-making is relatively simple and tends to rely heavily on previous
solutions?
A) Non programmed
B) Linear
C) Integrative
D) Programmed
5. According to Herzberg, in order to provide employees with job satisfaction, managers
should concentrate on which one?
A) Hygiene factors
B) External factor
C) Motivation factors
D) Compensation
6. Horizontally expanding the tasks of a job is known by which of the following terms?
A) Job enrichment
B) Job enlargement
C) Task improvement
D) Job expansion
7. At which controlling process organization determines the cause by identifying the nature
and scope of the problem.
A) Setting Standards
B) Measurement of Performance
C) Comparing Performance against standards
D) Taking Corrective Actions
8. To whom a worker reports concerns which aspect of organizational structure?
A) Chain of command
B) Departmentalization
C) Delegation
D) Line of command
9. Which types of marketing philosophy typically practiced with unsought goods?
A) Marketing concept
B) Product concept
C) Production concept
D) Selling concept
10. Which one of the following is not a requirement for effective segmentation?
A) Measurable
B) Accessible
C) Dependable
 D) Substantial
11. In the four marketing Mix, the only element which generate revenue for the firms is
called?
A) Product
B) Place
C) Price
D) Promotion
12. When company reviews sales, costs, and profit projections for a new product to find out
whether these factors satisfy the company objectives, they are in which of the following
new product development stages?
A) Business analysis
B) Market analysis
C) Commercialization
D) Concept development
13. The toolbox from which marketers can choose elements to influence the target market is
A) Decision making
B) Promotion mix
C) Marketing mix
D) Market intelligence
14. Among the following marketing concept, at which companies have to focus on
maximizing product innovation and differentiation..
A) Production concept
B) Product concept
C) Marketing concept
D) Selling concept
15. The Entire cycle from identifying potential customers to satisfying those customers'
needs with the products produced is called.
A) Marketing
B) Transaction
C) Advertisement
D) Promotion
16. Which of the following is the most critical difference between domestic marketing and
international marketing?
A) The environment in which marketing plans must be implemented
B) The different concepts of marketing
C) The change in marketing goals
D) The difference in technological standards
17. Dylan is planning to take his successful fast food venture global. Which of the following
is the reason why his task could be more complicated than that of the domestic marketer?
A) The international marketer must change his marketing goals in the various countries
of operation.
B) The international marketer must deal with at least two levels of uncontrollable
uncertainty instead of one.
C) Ethnological standardization could challenge effective customization indifferent
markets.
D) International trade regulations still do not allow free trade in most markets across the
globe.
18. Which of the following would be considered to be an uncontrollable element in the
foreign environment?
A) Channels of distribution
B) Research
C) Economic forces
D) Promotion
19. When Rita Thomas' clothing company began to market its line of inexpensive cotton
shirts in Africa, it assumed that it would be able to use its television and print advertising
that had worked so well in the United States and other countries. However, the company
was soon to learn that literacy rates and ability to access television was not the same as in
the other areas of the world. Which of the following factors includes this decision-making
factor in Rita's international marketing task?
A) Domestic environment (controllable)
B) Domestic environment (uncontrollable)
C) Foreign environment (uncontrollable)
 D) Foreign environment (controllable)
20. One of the following tasks is the most challenging and important one confronting
international marketers.
A) Cultural adjustment
B) Dealing with politics
C) International standardization
D) Caring for the environment
21. The primary obstacles to success in international marketing are a person's _____ and an
associated ethnocentrism.
A) Regionalism
B) Holism
C) Self-reference criterion
D) Segregation
22. The Ethiopia Corporation does not actively cultivate customers outside the United States;
however, this company's products do reach foreign markets through trading companies.
Ethiopia is probably in the _____ stage of international marketing involvement.
A) Pre-global marketing
B) Pre-international marketing
C) Anti-foreign marketing
D) No direct foreign marketing
23. Which of the following is NOT benefit of strong organizational culture?
A) Reduce employee turnover
B) Resistance to change
C) Build positive attitude in employee
D) Employee satisfaction
24. Among the following one is strength of bureaucracy organizational design
A) Obsessive concern with rules and regulations
B) Lack of employee discretion to deal with problems
C) Potential conflict among specialized functional departments
D) Standardization
25. A types of groups like –Co-operative societies, Workers unions are examples of
-----------.
A) Friendship group
B) Membership group
C) Reference group
D) Formal group
26. From the types of incentives which one is used to satisfy basic need of employee
A) Work incentive
B) Non monitory
C) Monitory incentive
D) Promotion
27. If everyone who is faced with a similar situation responds in the same way, attribution
theory states that the behavior shows.
A) Consensus
B) Similarity
C) Reliability
D) Consistency
28. Which of the following are the two major areas on which organizational behavior
focuses?
A) Individual behavior, group behavior
B) Managerial behavior, employee behavior
C) Traits, environments
D) Macro personality traits, micro personality traits
29. When a young child follows a professional sports star's behavior, the star has what kind
of power over the child?
A) Legitimate
B) Expert
C) Coercive
D) Referent
30. Which of the following can’t be example for intrapersonal conflict?
A) Having a sense of being inadequate to perform a task
 B) Having two different job descriptions that seem mutually exclusive
C) Role ambiguity
D) Poor communication
31. Among the following factors which one is not indicate effectiveness of leader?
A) The number of people following the leader
B) The extent of the leader’s leadership skills
C) The leader’s basic nature and values
D) Organization’s background
32. In which of the followings situations, autocratic leadership style is least preferable?
A) Short-term, complex, technical, or urgent projects
B) Low-skilled positions with monotonous tasks
C) Where there is high turnover in the employees
D) When every member of the team contributes their own creativity and knowledge
33. Which of the following is element of unfreezing ‘Kurt Lewin‘s Model of Change
Management?
A) Create sense of urgency
B) Implement change
C) Consolidate results
D) Relies quick wins
34. Among the following common obstacles to change, which one is the largest obstacle?
A) Employee resistance
B) Communications break down
C) Shortage of time devoted to training
D) Cost exceeded budget
35. What type of leaders guide or motivate their followers in the direction of established
goals by clarifying role and task requirements?
A) Transactional
B) Charismatic
C) Trait
D) Transformational
36. Mr. Tola is senior manager in Waliif international company and he give the same
average mark for all employees regardless of their performances. The error committed
by Mr. Tola is?
A) Central tendency error
B) Halo effect error
C) Leniency error
D) Contrast error
37. One of the following HR Environment is odd?
A) Socio Cultural
B) Structure of the Organization
C) Past Practice
D) Organizational Strategy
38. In which HR process whereby the organization decides whether to make a job offer and
the
Candidate decides on the acceptability of the offer.
A) Human resource planning
B) Recruitment
C) Performance Appraisal
D) Selection
39. One of the following is vertical expansion of the job.
A) Job rotation
B) Job enrichment
C) Job enlargement
D) Job Design
40. Which one of the following is starting point in staffing function?
A) Human resource planning
B) Job analysis
C) Recruitment
D) Selection
41. One of the following operative functions of HR focus on availing the right type and
number of employees required for achieving organizational goals.
 A) Procurement
B) Development
C) Integration
D) Maintenance
42. Which one of the following statement is correct about Compensation?
A) Benefit is the fixed pay an employee receives on a regular basis
B) Base compensation is indirect reward given to an employee for organizational
membership.
C) Pay incentive is a reward of employees for good performance.
D) Bonus is example of base compensation
43. Which one of the following is not Potential Problems with Job Analysis?
A) Absence of management support
B) Existence of support from employees
C) Using single data source
D) Inability to identify the need of job analysis
44. Which one of the following is correct about entrepreneurs?
A) All business persons are entrepreneurs, but not all entrepreneurs are business persons.
B) All entrepreneurs are business persons, but not all business persons are entrepreneurs.
C) All business persons are entrepreneurs and all entrepreneurs are business persons.
D) All business persons are entrepreneurs.
45. The level of MSEs in Ethiopia where enterprise begins to use bookkeeping system is
A) Growth level
B) Growth-medium
C) Startup level
D) Maturity level
46. “Process to spot good ideas and drop poor ones” at which stage of the new product
development does this activity is taken?
A) Idea generation
B) Concept development
C) Product development
D) Idea screening
47. Which one of the following is correct about Production Concept Marketing Philosophy?
A) Its new concepts in business
B) Consumers favor products that are widely available
C) Consumers favor products high in cost
D) Consumers will favor those products that offer the most quality
48. Which one of the following is not the objective of business plan?
A) Seek loans from financial institutions
B) Identify the strengths and weakness of the plan
C) Persuade others to join the business
D) Monitor the progress before implementing the plan
49. Among three theoretical approaches to new responsibilities a philosophy in which the
company’s expected actions include not only producing a reliable product, charging a fair
price with fair profit margins, and paying a fair wage to employees, but also caring for
the environment and acting on other social concerns is
A) Corporate social responsibility (CSR)
B) The triple bottom line
C) Stakeholder theory
D) Growth model
50. All of the following are currently so essential in Information systems except?
A) Better decision making
B) Competitive advantage
C) Impersonal information
D) Customer/supplier intimacy
51. Among the following which one is a planned system of collecting, storing, and
disseminating data in the form of information needed to carry out the functions of
management?
A) DSS
B) MIS
C) MRS
D) TPS
52. Which one of the following is not a business driver for an information system?
 A) Business processes redesign
B) Knowledge asset management
C) Proliferation of networks and the Internet
D) Security and privacy
53. Among the following one is not a technology driver for an information system?
A) Enterprise applications
B) Object technologies
C) Knowledge asset management
D) Collaborative technologies
54. Which one of the following is not the feature of projects?
A) Unique in nature
B) Involves risk and uncertainty
C) Are temporary activities
D) Routine
55. A project with a 3 year life and a cost of $100,000 generates revenue of $ 25,000 in year
1, $ 45,000 in year 2, and $ 65, 000 in year 3. If the discount rate is 8%, what is the NPV
of the project?
A) $13,327.49
B) $113327.49
C) $12327.49
D) $14327.49
56. Among the following one is the form of project organization in which the project
coordinators major responsibility is providing advice, sharing information and providing
assistance.
A) Matrix organizational form.
B) Line organizational form.
C) Divisional organizational form.
D) Project Management
57. Which of the following project appraisal criteria use the time value criteria?
A) Accounting rate of return
B) The payback period
 C) Benefit cost ratio
D) Liquidity ratio
58. Which of the following is not true about the project cycle?
A) It serves to define the beginning and the end of a project
B) It involves some form of technology transfer
C) It starts with the identification of an idea
D) Its descriptions are specific by its nature
59. Among the following which one is not the source of project ideas at micro level?
A) Identification of unsatisfied needs and demands
B) Initiatives of private or public enterprise in response for incentives provided by
a government
C) Perception of unused or underutilized resources
D) National policies, and strategies
60. According to porter five force model threats of substitutes is considered as:
A) Competitive force
B) State of growth
C) Rivalry
D) Competitive strategy
61. Among Processes of Strategy Development which one is preceding others?
A) Strategy formulation
B) Strategy implementation
C) Strategy evaluation
D) Environmental scanning
62. Which of the following is correct about the Resource-Based View?
A) Internal resources are more important for firm in achieving and sustaining
competitive
B) External source are more important for firm in achieving competitive advantage
C) Contend that organizational performance will primarily be determined by external
resources
D) For a resource to be valuable, it must be neither rare, nor easily substitutable
63. Among the following Strategies one is an important strategy to overcome external threats
 A) ST Strategies
B) WO strategy
C) WT strategy
D) OT Strategy
64. Ayale hotel in Nakamte, has not grown much in recent years but, due to low debt,
generates a huge amount of cash. Ayale hotel would be considered, according to BCG, a
_______.
A) Star
B) Cash cow
C) Dog
D) Question mark
65. Lower level managers in an organization are typically responsible for which of the
following types of strategies?
A) Functional-level strategies
B) Business-level strategies
C) Corporate-level strategies
D) Mergers and acquisitions
66. A formal document that presents the research objectives, design of achieving these
objectives, and the expected outcomes/deliverables of the study is called;
A) Research design
B) Research hypothesis
C) Research report
D) Research proposal
67. Which type of data is gathered by observation method of collecting?
A) Secondary data
B) Tertiary data
C) Published data
D) Primary data
68. In conducting research process, which of the following activity prioritized from the
following?
A) Developing a research design
 B) Formulating a research hypothesis
C) Deciding about the data analysis procedure
D) Formulating a research problem
69. Why do you think that reviewing the existing literature required in conducting research?
A) To make sure you have a long list of references
B) Because without it, you could never reach the required word-count
C) To help in your general studying
D) To find out what is already known about your area of interest
70. One is not among primary data collection techniques from the following;
A) Observation
B) Interview
C) Questionnaires
D) Research works
71. Which one is NOT among probability sampling techniques?
A) Stratified sampling
B) Systematic sampling
C) Clustered sampling
D) Judgmental sampling
72. Which of the following is not among basic types of research?
A) Applied research
B) Fundamental research
C) Analytic research
D) Operations research
73. Which one the following statically data cannot be considered as statistics?
A) Students Attitude toward self-employment
B) The average salary of Middle managers in bank
C) The average number of cars sold per week
D) The percentage of undergraduates attending AAU
74. If the combined arithmetic means of two samples of sizes 10 & 20 respectively whose
means are 50 &20? Combined mean is?
A) 30
 B) 90
C) 45
D) 50
75. The mean age of 100 students in the faculty of business and economics in particular
graduated class of year 2023 is 23. The mean age of boys is 25and that of girls is 21.
Calculate the number of boys and girls respectively
A) 50, 50
B) 40, 60
C) 70, 30
D) 55, 45
76. Wollega University wants to conduct a research on the effect of mobile technology on
quality education. 120 students are taken as a respondent from 2500 students of all
batches. Total number of first year is 600; second year is 1000 and third is 900 students.
Determine sample taken from first, second and third respectively
A) 40,40 and 40
B) 29, 48 and 46
C) 30, 44 and 46
D) 33,41 and 46
77. According report from Agricultural office 20 out of 60 households in high land area use
modern fertilazer to increase productivity and 30 out of 60 households in low land area
use this modern fertilizer. And also from above areas nonuse of modern fertilazer is 40
and 30 respectively. Compute chi-square test at 1 percent level of significance?
A) 3.4
B) 2.4
C) 3.6
D) 3.8
78. Now days, the number of MBA students in summer and weekend program attendant at
wallaga University increasing by an increasing rate during the past five years. The
university administration wants to forecast future demand for above program for the
coming year 2016 and 2017. So that wants to plan the number of lecturers and teaching
 materials required for two years. The data for the past five years are shown in the table
below.
Time / year 2011 2012 2013 2014 2015
Demand 35 40 50 70 80
Compute the total number of MBA students that will be enrolled for the years 2016 and
2017 respectively by using simple linear regression?
A) 67 & 79
B) 72 & 84
C) 67 &72
D) 62 &72
79. Among financial analysis ratios, identify one that mainly measure the ability of firms to
pay short term obligation
A) Current ratio
B) Activity ratio
C) Profitability ratio
D) Marketability ratio
80. Suppose your father gives you 20,000 on your birth date. You deposited this amount in a
bank at 10 per cent compounded semiannually for two years. How much future sum
would you receive after two year?
A) 24,310
B) 24,000
C) 24,360
D) 29, 282
81. Which of the following is the common characteristic of that hybrid securities share with
bonds?
A) Limited divide
B) Voting write
C) Unlimited divide
D) Founder
82. Among the major goals of financial manager, the primary one in public organization is:
A) Wealth Maximization
 B) Profit Maximization
C) Revenue Maximization
D) Asset Maximization
83. Among the following is the activities, one that sufficiently describe the function of
financial manager is
A) Procurement of finance
B) Expenditure of fund
C) Investing by idle capital
D) procuring and utilization fund
84. Among the following examples of activity ratio , one that cannot indicate efficient
management of the firm is:
A) High inventory turnover
B) Long collection period
C) High Account Receivable turnover
D) High Fixed Asset turnover
85. One of the following methods assists decision makers to select best alternative in certain
environment, except;
A) MAXIMIN
B) LCM
C) VAM
D) NWCM
86. The type of network model which is aimed at finding the maximum flow to be
transported through the network is;
A) Maximal flow
B) Minimum standard
C) Shortest route
D) Minimum spanning
87. All of the following are characteristics of Decision theories except;
A) Optimal solution
B) Degree of certainty
C) Decision criteria
 D) Payoffs
Consider the following payoff table which provides data about profits of the various states of
nature combination and answer questions associated with it (Q#88).

S1 S2 S3

A1 0.2 0.4 0.4

4 15 12
A2
5 6 10
A3 1 4 14

88. Which alternative is going to be selected in certain decision making environment?

A) Alternative #3
B) Alternative #1
C) Alternative #2
D) Alternative #1 & 3
89. All of the following are advantages network models in project activities except;
A) Planning
B) Scheduling
C) Controlling
D) Excessiveness
90. A construction company has signed an agreement with Gadaa Bank for a construction of
head office building G+55 with a total cost of 1.5 billion birr. The activities involved in
the agreement and their r/n ships summarized in the following table. Based on the details
of the project given below, what will be the expected project completion time of the
project?
Node Duration (Weeks)
Activity Predecessor o m p
A - 1-2 2 5 8
B A 2-3 4 6 8
C A 2-4 1 3 5
 D B 3-5 1 2 3
E C 4-5 2 4 6
F D, E 5-6 8 9 10
G C 4-6 12 12 18
H F, G 6-7 2 3 4
I C 4-7 4 6 8
J H,I 7-8 2 4 6
A) 28 weeks
B) 41 weeks
C) 31 weeks
D) 29 weeks
Odaa painting industry has warehouses at three centers (Bishoftu, Burayu and Sululta)
with the availability of 5000, 6000 and 2500 gallons of its products respectively. Its
display premises at market places (Olankomi, Ejere, Ginci and Ambo) require 6000,
4000, 2000 and 1500 gallons respectively. The transportation cost (in Birr) per unit
between each center and market places given as follows; Consider the provided
information and answer Q#90)
Distns Olankomi Ejere Ginci Ambo Capacity
Sources
Bishoftu 3 2 7 6 5000
Burayu 5 5 2 3 6000
Sululta 2 5 4 5 2500
Demand 1500 2000 4000 6000
91. What is the initial feasible solution when NWCM employed?
A) 47,000
B) 44,000
C) 45,000
D) 46,500
92. What the optimal solution of the problem?
A) 44,000
 B) 42,000
C) 47,000
D) 40,000
93. At which stage the product development process engineers translate general performance
specifications into technical specifications
A) Preliminary Design and Testing
B) Final Design
C) Idea generations
D) Product Screening
94. Which one of the following strategy matches the production plan to the demand pattern
and absorbs variations in demand by hiring and firing workers.
A) Level production
B) Peak Demand
C) Chase demand
D) Level product
95. One of the following is not Reasons to study Operations Management
A) How people organize themselves for productive enterprise.
B) How goods and services are produced.
C) What operations managers do?
D) How to market a product.
96. When the flow of materials is variable,
A) Layout by process is most suitable
B) Layout by product is most suitable
C) Layout by fixed position is most suitable
D) Line balancing is most suitable
97. The configuration departments, work centers and equipment in the conversion
Process is called?
A) Plant layout
B) Plant location
C) Product layout
D) Fixed position layout
98. Which of the following is true about business strategies?
A) An organization should stick with its strategy for the life of the business.
B) All firms within an industry will adopt the same strategy.
C) Well defined missions make strategy development much easier.
D) Strategies are formulated independently of SWOT analysis.
99. Which of the following statements regarding "proximity" in the location decision is false?
A) Service organizations find that proximity to market is the most critical primary
location factor
B) Manufacturers want to be near customers when their product is bulky, heavy, or
fragile.
C) Perishability of raw materials is a good reason for manufacturers to locate near the
supplier, not the customer.
D) Clustering among fast food chains occurs because they need to be near their labor
supply
100. Which one of the following is not the dimension of quality for manufactured
products?
A) Reliability
B) Feature
C) Conformance
D) Courtesy