PBMF 7.1 Business Organization & Management

A ____ outlines how company decisions are made.

• A. rule book

• B. policy

• C. procedure

• D. guide

The ____ of a business identifies the hierarchy of the employees within a business.

• A. roles

• B. rules

• C. standards

• D. organizational structure

The authority structure of a company from the highest to the lowest levels is called the ____.

• A. hierarchy

• B. positions

• C. chain of command

• D. organization chart

____ is the process of controlling and making decisions about a business.

• A. Management

• B. Finance

• C. Marketing

• D. Production

____ plans are created for the long-term goals of an organization.

• A. Tactical

• B. Operational

• C. Strategic

• D. Contingency

The process of recruiting, hiring, training, evaluating, and compensating employees is called ____.

• A. managing

• B. organizing

• C. staffing

• D. controlling

Match each type of business organization with the correct definition.

• departmentalization

• Responsibilites & authority are divided among certain areas or departments within the business.

• centralized organization

• All the authority within a business rest with top management.

• decentralized organization

• Authority within a business is given to various managers that run their own departments.

Match the level of management with the correct definition.

• first-line management

• consists of a company’s board of directors, president, and other high-ranking managers

• top management

• coordinates and supervises the activities and duties of employees

• middle management

• consists of a company’s division managers and department heads

Match the four basic types of management plans with the correct definition.

• contingency plans

• designed to reach the day-to-day goals of a business

• tactical plans

• backup plans

• strategic plans

• developed for the short-term goals of a company

• operational plans

• created for the long-term goals of an organization

A ​ (a)   statement is a sentence describing the ​ (b)   of the company and why it ​ (c)   .

• mission
• purpose
• exists