Organizational Management Quiz

What is the primary purpose of a business organization?

• To conduct scientific research

• To provide goods and services

• To create laws

• To manage personal relationships

Which of the following is NOT a type of business organization?

• Sole proprietorship

• Corporation

• Franchise

• Cooperative

What does 'material organization' refer to?

• Human resources management

• Financial management

• Marketing strategies

• Provision of raw materials and tools

Which type of organizational structure allows for decision-making power to be distributed?

• Decentralized structure

• Matrix structure

• Centralized structure

• Functional structure

What is a key benefit of having an organizational structure?

• Increased confusion among employees

• Clear definition of roles and responsibilities

• Higher employee turnover

• Reduced communication

Which of the following is an example of a service business?

• An accounting firm

• A clothing store

• A bakery

• A furniture manufacturer

What is a disadvantage of a sole proprietorship?

• Difficult to set up

• Limited control over business decisions

• Unlimited liability for the owner

• Limited source of customers

In a partnership, what is a potential disadvantage?

• Independent legal status

• Limited source of capital

• Unlimited liability for all partners

• Easier management compared to a corporation

What is a characteristic of a corporation?

• Owned by a single individual

• No formal structure

• Limited liability for shareholders

• Unlimited life span only for sole proprietorships

Which type of organizational structure is characterized by a flat hierarchy?

• Functional structure

• Divisional structure

• Flatarchy structure

• Matrix structure