Unit 2 Review - Principles of Business

Intermediaries are businesses involved in selling the goods and services of producers to consumers and other businesses.

• True

• False

Corporations are owned by at least two shareholders.

• True

• False

Span of control is the number of employees who are assigned to particular work task manager.

• True

• False

A mission statement describes the reason a business exists and what it wants to accomplish.

• True

• False

Outsourcing removes work from one company and sends it to another company that can complete it at a lower cost.

• True

• False

A worker who has no explicit or implicit contract for long-term employment is a

• migrant worker

• blue collar worker

• contingent worker

• part-time worker

Most businesses in the United States are

• nonprofit corporations

• partnerships

• proprietorships

• S corporations

The right to make decisions about how specific work should be completed is called

• authority

• accountability

• span of control

• responsibility

A designed change that increases the usefulness of a product is a(an)

• impropriety

• innovation

• improvement

• invention

This management function involves identifying and arranging the work and resources needed to achieve goals.

• controlling

• organizing

• staffing

• implementing