BM 1.03 Extra Practice

Which of the following best describes why planning is the first function of management?

• It focuses on employee discipline and scheduling.

• It creates a budget for future pay periods.

• It sets the direction for all other management functions.

• It determines how employees will be trained.

What is a benefit of planning for a business?

• It eliminates the need for supervision.

• It guarantees profits every quarter.

• It improves decision-making and coordination.

• It replaces the need for long-term goals.

What question would be addressed during the planning function of management?

• “Who should we promote?”

• “What should we achieve in the next year?”

• “How can we discipline underperforming employees?”

• “Which department is over budget?”

Which level of management is primarily responsible for creating strategic plans?

• Supervisory managers

• Middle-level managers

• Operational staff

• Top-level executives

Strategic planning is best defined as:

• Short-term goals that guide daily tasks.

• Creating step-by-step plans for individual jobs.

• Broad, long-term goals that define direction.

• Backup plans for emergencies.

Which is an example of a tactical plan?

• Developing a mission statement for the company

• Scheduling weekly employee tasks

• Creating a five-year expansion plan

• Setting quarterly sales goals for a department

Operational planning is typically performed by:

• Shareholders

• Middle managers

• Top executives

• First-line supervisors

What type of plan is used when the original plan fails or unexpected events occur?

• Strategic

• Operational

• Contingency

• Growth

Why should goals be specific and measurable?

• So they can be hidden from competitors

• To help employees stay motivated and focused

• To prevent managers from changing strategies

• So they can be evaluated subjectively

Which of the following is NOT a benefit of effective planning?

• It ensures 100% accuracy in forecasts.

• It improves coordination across departments.

• It provides a roadmap for decision-making.

• It helps allocate resources efficiently.