Principles-of-Management Questions and Answers

The process that includes automation or support of customer processes, direct communication with customers, and analysis of customer data for a broad range of purposes is Customer Relationship Management (CRM). CRM systems help organizations manage interactions with current and potential customers, streamline processes, and improve profitability by using customer data analysis for various business strategies​​.

A company offering a no-frills product to be efficient is pursuing a low-cost strategy. This strategy focuses on minimizing costs and offering products at the lowest possible price to attract cost-conscious customers. This approach involves strict cost control and operational efficiency to maintain profitability while offering lower prices than competitors​​.

A characteristic of a person with an entrepreneurial personality is the motivation to excel.

Motivation to Excel(Answer A): Entrepreneurs are typically driven by a strong desire to achieve and excel. They are competitive, have a high need for achievement, and are constantly seeking ways to improve and succeed in their ventures​​.

Opportunity Tolerance(Answer B): While entrepreneurs need to tolerate risks and seize opportunities, the term "opportunity tolerance" is not specifically highlighted as a key characteristic of an entrepreneurial personality.

Laissez-faire(Answer C) andEmployee Empowerment(Answer D): These are management styles or strategies rather than personal characteristics of entrepreneurs.

The most common way for entrepreneurs to finance a start-up business is by using personal funds.

Personal Funds(Answer C): Many entrepreneurs begin their ventures by using their own savings or personal resources. This is often the most accessible form of financing and does not require external approval or incur debt​​.

SBA Loan(Answer A) andVenture Capital(Answer B): These are common sources of financing, but they are less frequently used than personal funds, especially in the initial stages of a start-up.

Initial Public Offering(Answer D): This is a method of raising capital typically used by established businesses rather than start-ups.

When considering equal employment opportunity law for a promotion decision, characteristics such as fitness level can be used, provided they are relevant to the job requirements. Characteristics like religion, disability status, and age are protected under EEO laws and cannot be used as criteria for employment decisions. Fitness level, however, can be considered if it is a bona fide occupational qualification necessary for the performance of the job​​.

The most effective conflict-resolution technique for creating a shared goal that cannot be attained without the cooperation of each of the conflicting parties is the establishment of superordinate goals.

Superordinate Goals(Answer B): Superordinate goals are overarching goals that are important to both parties in a conflict and require their cooperation to be achieved. These goals help conflicting parties to focus on common objectives and work together to achieve them, thereby reducing conflict and promoting collaboration​​.

Communication(Answer A): While communication is crucial in conflict resolution, it alone may not create a shared goal that necessitates cooperation.

Avoidance(Answer C): Avoidance is a passive approach that generally postpones the conflict rather than resolving it.

Authoritative Command(Answer D): This involves using authority to resolve the conflict, which may not create cooperation or shared goals among the parties.

To determine how well an individual can participate in a variety of physical job requirements, a performance test is most appropriate.

Performance Test(Answer C): This type of test assesses a candidate's ability to perform specific tasks or activities that are part of the job. It is particularly useful for jobs requiring physical abilities and skills​​.

Cognitive Ability Test(Answer A),Personality Ambitions Test(Answer B), andIntegrity Test(Answer D): These tests evaluate mental capabilities, personality traits, and honesty, respectively, but do not measure physical job performance.

The activity of creating a corporate project team to develop a new product is called intrapreneurship. Intrapreneurship refers to the practice of fostering innovation and entrepreneurial skills within an organization by allowing employees to act like entrepreneurs while working within the company. This approach encourages the development of new products and services and enhances organizational growth​​.

The organizational concept that best describes a manager assigning tasks to various employees is the division of labor. This concept involves breaking down work into specialized tasks that different workers or groups perform. It aims to increase efficiency and productivity by allowing employees to focus on specific functions where they can develop expertise.

Division of Labor(Answer C): This refers to the assignment of different tasks to different employees, allowing for specialization and increased efficiency in the workplace​​.

Segmentation(Answer A),Teamwork(Answer B), andIntegration(Answer D): These concepts relate to different aspects of organizational structure and functioning but do not specifically describe the assignment of tasks to employees.