DBA Doctor of Business Administration/Business Management 5

Question 1

Which ethical framework in business decision-making judges actions solely by their consequences and the greatest good for the greatest number?

Accepted Answer

Utilitarian ethics

Answer

Utilitarianism, associated with Bentham and Mill, evaluates decisions by net outcomes — maximizing total welfare or utility across all affected parties.

Question 2

In financial accounting, the 'matching principle' requires that:

Accepted Answer

Expenses be recognized in the same period as the revenues they helped generate

Answer

The matching principle ensures expenses are recorded in the period of associated revenue recognition, providing accurate profitability measurement.

Question 3

A firm's 'core competency,' as defined by Prahalad and Hamel, is best characterized as:

Accepted Answer

A collective learning and technical capability that is difficult for competitors to imitate

Answer

Core competencies are deeply embedded organizational capabilities — skills, knowledge, and processes — that provide competitive advantage and cannot be easily copied.

Question 4

In organizational behavior, 'psychological safety,' as researched by Amy Edmondson, refers to a team climate where:

Accepted Answer

Team members can take interpersonal risks without fear of negative consequences

Answer

Psychological safety enables candid communication, risk-taking, and learning from failure, which Edmondson found is critical to high-performing teams.

Question 5

The 'prisoner's dilemma' in game theory is most relevant to business strategy because it illustrates:

Accepted Answer

Why individually rational choices can produce collectively suboptimal outcomes

Answer

In the prisoner's dilemma, both players defecting is the Nash equilibrium despite mutual cooperation producing better collective results — mirroring price wars or arms races.

DBA - Doctor of Business Administration Practice Test

DBA - Doctor of Business Administration Practice Test

DBA Doctor of Business Administration/Business Management 5