Understanding Principles of Business Management

Which of the following is NOT a characteristic of a corporation?

• Privately owned and operated for a profit
• Provides limited liability for stockholders
• Owned by a group of people
• Treated as a single entity

What is the purpose of coaching employees in business management?

• To revise methods based on necessary changes
• To provide motivation
• To establish standards
• To monitor results and compare them to standards

Which of the following is NOT a reason for a business to establish goals?

• To increase employee motivation
• To decrease waste and duplication of effort
• To provide guidelines for management
• To determine the direction of the business

What is the primary focus of directing (leading) in business management?

• Assigning work to be performed, accountability, and authority
• Setting objectives and forecasting future situations
• The relationship between managers and employees
• Identifying and defining required work

What is the primary responsibility of staffing in business management?

• Establishing standards
• Monitoring results and comparing them to standards
• Revising methods based on necessary changes
• Determining human resource needs

What is the main difference between a partnership and a corporation?

• The amount of profit the owners can make
• The type of business structure
• The level of liability for the owners
• The number of owners

What is the purpose of planning in business management?

• To set objectives and forecast future situations
• To determine the present status of the business
• To communicate effectively
• All of these

Which of the following is NOT a characteristic of a partnership?

• Owned by one person
• Involves written agreements
• Shares liabilities among partners
• Specifies individual responsibilities

Which of the following is NOT a responsibility of controlling in business management?

• Recruiting potential employees
• Correcting deviations from standards
• Revising and adjusting methods based on changes
• Establishing standards

What is the primary focus of controlling in business management?

• Revising and adjusting methods based on changes
• Establishing standards
• Monitoring results and comparing them to standards
• Correcting deviations from standards