Answer all questions. Each carries 1 mark. Write True or False. 1. According to expectancy theory, people are motivated to work towards rewards they want and that they believe have a reasonable chance of obtaining. 2. Equity theory is based on the premise that workers prefer a workplace where all employees are paid equally. 3. The behavior approach to the study of leadership identified two main areas of effective leadership behavior: trait-focused behavior and goal-focused behavior. 4. Besides having more structure than a nonprogrammed decision, programmed decisions also recur more often. 5. Replacement charts can be used to forecast the external supply of candidates for senior managerial positions in the organization. 6. The increased demand for knowledge workers will require firms to use extra measures, such as higher salaries and signing bonuses, to attract qualified employees. 7. Psychographics cannot be changed by marketing efforts. 8. Companies with an existing distribution network are at a disadvantage in the global context. 9. In the screening stage of product development, companies use market research to get consumers' input about benefits and prices. 10. Price skimming occurs when a company sets an initially low price to establish a new product in the market 11. Intermediaries can expedite the delivery of products, but otherwise add no additional value to a distributional system. 12. Promotion refers to the process of establishing an easily identifiable product image in the minds of consumers. 13. Through data mining, a manager can access demographic information on customers, for example, in order to decide which advertising media may be best to use. 14. A company's security policy can prevent certain data from passing through its firewall 15. The reason why a savings account is not considered a component of the M-1 money supply is that it bears interest. 16. Open-market operations are often a more effective method for the Federal Reserve System to expand the money supply than is minting more dollars and coins. 17. Economic indicators help to assess the performance of an economy. 18. The best stance toward social responsibility a company can take is a proactive one. 19. Neglect is a major factor that contributes to small business failure. 20. A firm first sets its strategies and then focuses attention on goals to accomplish them