Year 13 - Term 2 Review Quiz

• Business
• Secondary Education

Year 13 - Term 1 Review Quiz

Cambridge International A level Business

Define the Contingency theory of leadership.

1. Leadership focuses on the leader's charisma.
2. Leadership is based on the traits of the leader.
3. Leadership effectiveness depends on the leader's behavior and the situation.
4. Leadership is about the leader's ability to influence others.

What is the focus of the Transformational leadership theory?

1. Motivating and inspiring followers to achieve extraordinary outcomes.
2. Emphasizing the leader's traits and characteristics.
3. Using rewards and punishments to motivate followers.
4. Adapting leadership style to fit the situation.

How does the Trait theory of leadership define effective leaders?

1. Effective leaders motivate and inspire their followers.
2. Effective leaders possess certain innate characteristics and qualities.
3. Effective leaders focus on transforming the organization.
4. Effective leaders adapt their behavior to fit the situation.

What is a key feature of behavioural leadership theory?

1. Focuses on employee motivation and satisfaction
2. Emphasizes hierarchical structure in organizations
3. Advocates for autocratic leadership style
4. Prioritizes strategic decision-making by top management

Which is a limitation of behavioural leadership theory?

1. Provides a one-size-fits-all approach to leadership
2. Neglects the significance of employee motivation
3. May oversimplify the complexities of human behavior in organizations
4. Fails to address the impact of leadership on organizational performance

What is a disadvantage of transformational leadership?

1. Relies heavily on the leader's charisma and personality
2. Encourages open communication
3. Promotes employee empowerment
4. Fosters trust among team members

Which of the following is not a key element of transformational leadership?

1. Inspirational motivation
2. Individualized consideration
3. Maintaining a transactional approach
4. Intellectual stimulation

What is an advantage of a functional organizational structure?

1. Specialization and expertise within departments
2. Difficulty in coordination between different departments
3. Slow decision-making process due to hierarchy
4. Limited career development opportunities

Which is a disadvantage of a matrix organizational structure?

1. Efficient communication and teamwork across projects
2. Clear lines of authority and responsibility
3. Confusion and conflict due to dual reporting
4. Flexibility to adapt to environmental changes

What is a benefit of a flat organizational structure?

1. Clear hierarchy and defined chain of command
2. Quick decision-making and better communication
3. Enhanced coordination and control over diverse activities
4. Specialization and expertise within functional units

Which is a drawback of a tall organizational structure?

1. Empowerment and motivation of employees at all levels
2. Flexibility to adapt to changing market conditions
3. Slow communication and decision-making processes
4. Efficient use of resources and economies of scale

What is a benefit of delegation in an organization?

1. Increased managerial workload
2. Centralized decision-making process
3. Confusion in authority
4. Development of employee skills and abilities

What is a drawback of too much accountability in an organization?

1. Efficient resource allocation
2. Decreased autonomy and innovation
3. Improved transparency and trust
4. Enhanced sense of responsibility

What is an advantage of centralised decision making?

1. Increased flexibility
2. Consistency in decision making
3. Better team collaboration
4. Enhanced innovation

What is a disadvantage of decentralised decision making?

1. Faster response to local issues
2. Lack of consistency in decision making
3. Empowerment of local managers
4. Efficient use of local knowledge

Which is an advantage of decentralised decision making?

1. Better coordination across departments
2. Efficient use of local knowledge
3. Consistency in decision making
4. Cost savings through economies of scale

What is a disadvantage of centralised decision making?

1. Faster decision-making process
2. Efficient use of local knowledge
3. Slow response to local issues
4. Empowerment of local managers

Which is a disadvantage of decentralised decision making?

1. Coordination challenges across departments
2. Empowerment of local managers
3. Consistency in decision making
4. Faster response to local issues

What is the primary advantage of force field analysis?

1. It provides a blueprint for product development.
2. It simplifies complex business problems.
3. It guarantees immediate positive results.
4. It helps in understanding factors influencing a proposed change.

What is a potential disadvantage of force field analysis?

1. It requires extensive financial resources.
2. It is not applicable in the service industry.
3. It always leads to conflicting outcomes.
4. It may overlook certain intangible or emotional factors.

What are the four growth strategies in Ansoff's matrix?

1. Monopoly, oligopoly, perfect competition, monopolistic competition
2. Cost leadership, differentiation, focus, integration
3. Market penetration, market development, product development, diversification
4. Horizontal integration, vertical integration, conglomerate diversification, concentric diversification

What is a disadvantage of using Ansoff's matrix?

1. It is difficult to understand
2. It oversimplifies the complexity of business strategy
3. It is only suitable for small businesses
4. It does not consider customer preferences

In Ansoff's matrix, what does market penetration strategy involve?

1. Selling existing products to new customers
2. Selling more of existing products to existing customers
3. Selling new products to new customers
4. Selling new products to existing customers

Which strategy in Ansoff's Matrix involves offering new products to existing markets?

1. Product development
2. Market penetration
3. Market development
4. Diversification

Which of the following is not one of Porter's five forces?

1. Threat of new entrants
2. Government regulations
3. Buyer power
4. Supplier power

Which statement best describes the role of competitive rivalry in Porter's five forces?

1. It evaluates customer loyalty
2. It focuses on supplier relationships
3. It assesses the intensity of competition within an industry
4. It measures government intervention

What are Porter's Five Forces used for?

1. Analyzing industry competitive forces and strategy
2. Creating marketing campaigns
3. Forecasting market trends
4. Conducting customer surveys

What does the threat of substitutes assess?

1. The intensity of rivalry among competitors
2. The potential for alternative products or services
3. The threat of new entrants
4. The bargaining power of suppliers

Which force evaluates the power of customers in Porter's Five Forces?

1. Rivalry among existing firms
2. Threat of new entrants
3. Bargaining power of buyers
4. Bargaining power of suppliers

What is the impact of inflation on businesses?

1. Decreases purchasing power, increases costs
2. Stimulates economic growth, reduces unemployment

What is a consequence of high unemployment for businesses?

1. Increased market demand, higher productivity levels
2. Reduced consumer spending, decreased sales

How can fiscal policy impact businesses?

1. Affects government spending, influences taxation levels
2. Stimulates private investment, reduces national debt

What is fiscal policy?

1. The regulation of international trade by governments.
2. The management of money supply by the government.
3. The use of interest rates by central banks.
4. The use of government spending and taxation.

How does fiscal policy affect businesses?

1. It can impact consumer spending and investment decisions.
2. It has no direct impact on business operations.
3. It directly controls interest rates for businesses.
4. It influences the supply of money in the economy.

What is monetary policy?

1. The management of government spending on infrastructure.
2. The implementation of government's tax policies.
3. The regulation of international trade agreements.
4. The control of money supply and interest rates.

How does monetary policy affect businesses?

1. It affects the level of government debt.
2. It directly controls government spending on businesses.
3. It can influence borrowing costs and credit availability.
4. It has no impact on the financial market.

What is the impact of fiscal and monetary policy on business?

1. They only influence consumer spending.
2. They are only relevant to government finances.
3. They can both affect business confidence and investment decisions.
4. They have no direct impact on business activities.