introduction to business topic 4

• Which management function involves setting the organization’s objectives and deciding how to achieve them?

• • Organizing

• • Planning

• • Staffing

• • Directing

Answer explanation

Planning involves determining the organization’s objectives and deciding how to achieve them.

• What is the fundamental purpose and basic philosophy of an organization called?

• • Vision

• • Mission

• • Goals

• • Plans

Answer explanation

The mission is the fundamental purpose and basic philosophy of an organization.

• What type of plan deals with potential disasters such as product tampering, oil spills, fire, and earthquake?

• • Strategic Plan

• • Tactical Plan

• • Operational Plan

• • Contingency Plan

Answer explanation

Contingency plans deal with potential disasters such as product tampering, oil spills, fire, and earthquake.

Which management function involves motivating and leading employees to achieve organizational objectives?

• • Controlling

• • Organizing

• • Directing

• • Staffing

Answer explanation

Directing involves motivating and leading employees to achieve organizational objectives.

What involves measuring performance, comparing it with standards, and taking corrective action?

• • Planning

• • Controlling

• • Directing

• • Organizing

Answer explanation

Controlling involves measuring performance, comparing it with standards, and taking corrective action.

Which level of management is primarily concerned with the day-to-day operations of an organization?

• • Top management

• • Middle management

• • First-line management

• • Administrative management

Answer explanation

First-line managers are primarily concerned with the day-to-day operations of an organization.

• Who is responsible for developing and administering activities involved in transforming resources into goods and services?

• • Marketing managers

• • Production and operations managers

• • Finance managers

• • Human resources managers

Answer explanation

Production and operations managers are responsible for developing and administering activities involved in transforming resources into goods and services.

Which skill is most critical for first-line managers?

• • Technical expertise

• • Analytical skills

• • Human relations skills

• • Decision-making skills

Answer explanation

Technical expertise is most critical for first-line managers as they need specialized knowledge and training to perform jobs related to particular areas of management.

What type of leader involves employees in decision-making?

• • Autocratic leader

• • Democratic leader

• • Free-rein leader

• • Authoritarian leader

Answer explanation

A democratic leader involves employees in decision-making.

What skill involves the ability to think in abstract terms and see how parts fit together to form the whole?

• Time management skills

• Communication skills

• Problem-solving skills

• Analytical skills

Answer explanation

Analytical skills involve the ability to think in abstract terms and see how parts fit together to form the whole.