General Business Final Exam

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Which of the following is NOT a leadership style?

• Autocratic
• Democratic
• Laissez-faire
• Presidential

What are the four functions of management?

• Process, Arrangement, Lateral, Coordinate
• Planning, Organizing, Leading, Controlling
• Controlling, Leading, Organizing, Performance
• Production, Organizing, Leading, Coordination

Which organizational structure is represented in this image?

• Matrix
• Hierarchy
• Hub and Spoke
• Line and Staff

What is a potential downside of running a sole proprietorship?

• The owner must share profits with partners.
• The owner is responsible for all business debts.
• The business is legally separate from its owner.
• The business cannot hire employees.

A group of friends is starting a business designing and selling custom t-shirts. They are debating on which business formation to choose. To save costs, they aren't able to hire an attorney to help with paperwork. What would be the most logical recommendation based on their goal to protect their personal assets while maintaining shared responsibilities?

• Create an LLP (same as an LLC only for partnership), as it provides personal liability protection, is easy to set-up on your and flexibility for shared responsibilities.
• Form a partnership, as it is easier to set up and protects personal assets in case of financial loss.
• Operate as a sole proprietorship, as it simplifies decision-making and equally distributes liability.
• Create a corporation, as it allows them to sell shares and maintain liability protection.

Which business type best matches a company that repairs electronics for customers?

• Retail
• Wholesale
• Service
• Manufacturing

Which characteristic of entrepreneurship is best described in this statement: "The drive they have to continuously ask questions and challenge the status quo can lead them to valuable discoveries easily overlooked by other business professionals."

• Curiosity
• Long term focus
• Organization
• Creativity

Which letter of SCAMMPER is answered in this question: How can it be adjusted to fit another purpose?

• Maximize
• Magnify
• Adapt
• Eliminate

Name one entrepreneur.