Chapter 4 Business Management

In order to be effective, a business plan should always be in writing.

• True

• False

The top managers in a business are involved in planning, but first-level managers such as supervisors are not.

• True

• False

Effective planning is less important to the success of a business than other management functions, such as organizing, staffing, leading, and controlling.

• True

• False

Operational planning is short-term planning that identifies specific activities for each area of the business.

• True

• False

The results of strategic planning are goals and strategies that guide the entire business.

• True

• False

SWOT analysis involves both internal and external investigation.

• True

• False

Most of the operational planning in a business is the responsibility of middle-level managers and supervisors.

• True

• False

A mission statement flows out of a broad, long-term, and often inspirational vision.

• True

• False

Goals are the results a business expects to achieve.

• True

• False

Goals should be stated in broad, nonspecific language to make them easier to reach.

• True

• False