Unit 2 - Review - Business Organization and Management

What is the most important role of businesses in the U.S. economy according to the study guide?

• To provide employment to the community

• To make and distribute products and services

• To generate ideas for new products or services

• To raise capital for financial resources

What must a business do to remain successful, according to the study guide?

• Pay higher wages than other businesses

• Have the largest buildings and equipment

• Improve and develop new ideas to stay competitive

• Offer the most benefits to employees

Where does most of the capital needed to start most businesses come from?

• Government grants

• Owners' personal savings

• Loans from financial institutions or investors

• Revenue from sales

When is there little need for an organizational structure in a business?

• When the business is involved in marketing activities

• When the business is buying goods and services

• When only one person works in the business

• When the business has multiple employees

At what age do many entrepreneurs own their first business?

• In their twenties

• In their thirties

• In their teens

• After retirement

What is a common reason for the closure of businesses started by entrepreneurs?

• High marketing costs

• Lack of adequate capital

• Overproduction of goods

• Low employee turnover

How much initial capital do owners report they needed on average to start home-based businesses?

• $5,000 or less

• $10,000 or less

• $50,000 or less

• $100,000 or less

What educational level have almost all people starting small businesses achieved at least?

• A high school diploma

• An associate degree

• A bachelor's degree

• A master's degree

Which of the following is NOT one of the five functions of managers' work as mentioned in the text?

• Planning

• Staffing

• Budgeting

• Implementing

Which of the following is NOT listed as an important human relations skill needed by leaders and managers?

• Self-understanding

• Communication

• Financial expertise

• Team building