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Understanding the Management Process (Chapter 6)

Total questions: 60

Worksheet time: 30mins

Name
Class
Date
1.

The term management is defined as,

a)

coordinating people and resources to achieve the goals of an organization.

b)

directly influencing, guiding, supervising, and/or motivating individuals to help them fulfill their obligations to the organization in order to maximize the organization’s profits.

c)

instilling in people the general desire or willingness to do something and/or accomplish a specific task.

d)

the action of leading a group of people or an organization.

2.

Managers and/or the executives of a business/organization are tasked with coordinating a complex list of resources to produce goods and services. These are the tangible, physical resources of an organization.

a)

financial resources

b)

human resources

c)

information resources

d)

material resources

3.

This is the resource in which the people/employees of an organization can be found/categorized.

a)

financial resources

b)

human resources

c)

information resources

d)

material resources

4.

The funds used to meet the obligations of a business/organization to investors and/or creditors can be found/categorized as,

a)

financial resources

b)

human resources

c)

information resources

d)

material resources

5.

This business resource includes knowledge about competitors and changes to an industry and/or field of business.

a)

financial resources

b)

human resources

c)

information resources

d)

material resources

6.

This is often referred to as the “first” management function. It includes establishing the organizational goals of a business and deciding how to accomplish them.

a)

controlling

b)

leadership and motivation

c)

organizing

d)

planning

7.

When establishing the organizational goals of a company, most organizations refer to the,

a)

business plan’s executive summary

b)

customer profile of the industry/field

c)

mission statement

d)

personal memoirs of the founder/owner/chief executive

8.

This is the broadest of all the plans utilized in an organization as it usually takes 5 or more years to implement. It involves establishing an organization’s goals and objectives and allocating resources to achieve them.

a)

contingency plan

b)

operational plan

c)

strategic plan

d)

tactical plan

9.

The possible impediments to achieving the goals and objectives of an organization include,

a)

sales and costs

b)

company growth

c)

customer satisfaction

d)

employee morale

e)

all of those listed

10.

When using the SWOT strategy to identify and evaluate a firm’s progress toward achieving its goals and objectives, the “S” (strengths), refers to,

a)

conditions or barriers that may prevent the firm from reaching its objectives

b)

conditions that could benefit an organization

c)

favorable characteristics/core competencies of a business

d)

internal limitations a company faces in developing or implementing plans

11.

When using the SWOT strategy to identify and evaluate a firm’s progress toward achieving its goals and objectives, the “W” (weaknesses), refers to,

a)

conditions or barriers that may prevent the firm from reaching its objectives

b)

conditions that could benefit an organization

c)

favorable characteristics/core competencies of a business

d)

internal limitations a company faces in developing or implementing plans

12.

When using the SWOT strategy to identify and evaluate a firm’s progress toward achieving its goals and objectives, the “O” (opportunities), refers to,

a)

conditions or barriers that may prevent the firm from reaching its objectives

b)

conditions that could benefit an organization

c)

favorable characteristics/core competencies of a business

d)

internal limitations a company faces in developing or implementing plans

13.

When using the SWOT strategy to identify and evaluate a firm’s progress toward achieving its goals and objectives, the “T” (threats), refers to,

a)

conditions or barriers that may prevent the firm from reaching its objectives

b)

conditions that could benefit organization

c)

favorable characteristics/core competencies of a business

d)

internal limitations a company faces in developing or implementing plans

14.

In addition to strategic plans, most organizations employ narrower plans. This is the term for a smaller scale plan developed to implement a strategy. It is more limited in scope, usually taking one to three years to achieve, which permits the plan to be changed more easily.

a)

contingency plan

b)

operational plan

c)

strategic plan

d)

tactical plan

15.

This is the plan which is designed to implement the strategies and goals of the more limited (1 to 3 year) plans of an organization.

a)

contingency plan

b)

operational plan

c)

strategic plan

d)

tactical plan

16.

This is the plan which outlines alternative courses of action that may be taken if other plans are disrupted for reasons which may include, but are not limited to, natural disasters, criminal or ethical misconduct, political instability, or other unexpected events.

a)

contingency plan

b)

operational plan

c)

strategic plan

d)

tactical plan

17.

This is the function of a manager/business executive which focuses on the grouping of resources and activities to accomplish some result in an efficient and effective manner.

a)

controlling

b)

leadership and motivation

c)

organizing

d)

planning

18.

This is the term/action of management which involves the process of influencing people to work toward a common goal.

a)

directing

b)

influencing

c)

leading

d)

motivating

19.

This is the term/action of management which involves the process of providing reasons for people to work in the best interests of an organization.

a)

directing

b)

influencing

c)

leading

d)

motivating

20.

In many businesses/organizations, managers are classified according to their,

a)

level within an organization [a]

b)

seniority within the company [b]

c)

area of management [c]

d)

undergraduate and/or graduate degree specialization [d]

e)

both a and c

21.

In many businesses/organizations, management is depicted as a three-story structure with each level of the structure corresponding to one of the three general levels of management which are most often labeled,

a)

chief executives, executives, and supervisors

b)

chief executives, operational directors, and supervisors

c)

presidents, vice presidents, and chief operating officers

d)

top managers, middle managers, and first-line managers

22.

These are the upper-level executives who guide and control the organization’s fortunes and mission. They are generally responsible for developing the organization’s mission and determining the firm’s strategy.

a)

first-line managers

b)

middle managers

c)

operational managers

d)

top management

23.

This is the largest group of managers in most organizations. They implement the strategy and major policies developed by the management team above them in the organization’s hierarchy.

a)

first-line managers

b)

middle management

c)

operational managers

d)

top management

24.

These are the managers who coordinate and supervise the activities of the operating employees. They spend most of their time working with and motivating their employees, answering questions, and solving day-to-day problems.

a)

first-line management

b)

middle management

c)

operational managers

d)

top managers

25.

The organizational structure of a business/company can also be divided into areas of management specialization. These managers are responsible for recording/tracking the organization’s funds as well as keeping detailed and accurate records of the organization’s monetary accounts which would include the debts and profits of the organization.

a)

administrative managers

b)

financial managers

c)

human resources managers

d)

marketing managers

e)

operation managers

26.

The organizational structure of a business/company can also be divided into areas of management specialization. These people manage the systems that convert resources into goods and services.

a)

administrative managers

b)

financial managers

c)

human resources managers

d)

marketing managers

e)

operation managers

27.

The organizational structure of a business/company can also be divided into areas of management specialization. These are the people who facilitate the exchange of products between an organization and its customers or clients. Specific areas of focus may include advertising, promotion, sales, and distribution.

a)

administrative managers

b)

financial managers

c)

human resources managers

d)

marketing managers

e)

operation managers

28.

The organizational structure of a business/company can also be divided into areas of management specialization. These are the people who manage people, design systems for hiring, training, and evaluating the performance of employees, and ensure that the organization follows government regulations concerning employment practices.

a)

administrative managers

b)

financial managers

c)

human resources managers

d)

marketing managers

e)

operation managers

29.

The organizational structure of a business/company can also be divided into areas of management specialization. These are the people who provide administrative guidance and leadership to other managers in the organizational hierarchy as well as the operating employees of the company/business.

a)

administrative managers

b)

financial managers

c)

human resources managers

d)

marketing managers

e)

operation managers

30.

Leadership is often defined as the ability to influence others. Formal leaders are defined as those individuals who,

a)

have legitimate power of their position [a]

b)

have no authority in an organization, but who may or may not exert their influence in support of the organization [b]

c)

have authority within an organization to influence others to work toward an organization’s objectives [c]

d)

both a and c

e)

all of those listed

31.

Leadership is often defined as the ability to influence others. Informal leaders are defined as those individuals who,

a)

have legitimate power of their position [a]

b)

have no authority in an organization, but who may or may not exert their influence in support of the organization [b]

c)

have authority within an organization to influence others to work toward an organization’s objectives [c]

d)

both a and c

e)

all of those listed

32.

Today, management of product/service quality is a high priority in many organizations due to,

a)

foreign competition [a]

b)

more demanding customers who have the ability to comparison shop [b]

c)

poor financial performance resulting from reduced market shares and higher costs [c]

d)

both a and c

e)

all of those listed

33.

Total quality management (TQM) is the coordination of efforts directed at,

a)

continuous quality improvement

b)

improving customer satisfaction

c)

improving employee participation

d)

strengthening supplier partnerships

e)

all of those listed

34.

The process of evaluating products, processes, or management practices of another organization for the purpose of improving quality in your business, company, and/or organization is referred to as,

a)

benchmarking

b)

competitor research

c)

quality assessment

d)

quality assurance

35.

Many factors influence the effectiveness of a TQM program, but one of the most crucial is,

a)

top management must make a strong commitment to a TQM program by treating quality improvement as a top priority and give it frequent attention [a]

b)

that customers and clients must accurately and truthfully report their experiences and/or assessment of the products and/or services of the business being monitored via the TQM program [b]

c)

management must coordinate the specific elements of a TQM program so that they work in harmony with each other [c]

d)

both a and c

e)

all of those listed

36.

This is a detailed road map that outlines your financial goals and the spending, financing, saving, and investing steps that will allow you to achieve those goals.

a)

benchmarking

b)

business plan

c)

FICO plan

d)

financial plan

37.

These are things you might have that can be very rapidly converted to cash without a risk of significant loss.

a)

fixed assets

b)

liquid assets

c)

net worth

d)

rebalancing

38.

Today, the estimated cost of having a child and putting that child through college is,

a)

$100,000

b)

$250,000

c)

$400,000

d)

$600,000

39.

Typically, a higher annual income is connected to,

a)

education [a]

b)

investments made early in life [b]

c)

specialized training [c]

d)

both a and c

e)

all of those listed

40.

In the realm of financial planning, money management involves,

a)

establishing a plan for your finances in the event of a natural, political, or economic disaster

b)

establishing the percentage of the overall wealth you will invest in the stock market

c)

making decisions about how much cash or liquid assets to keep in reserve and how much to invest in less liquid assets, such as real estate (buildings and land)

d)

tracking the flow of cash in and out of your bank account

41.

The most common investment types to include in your investment portfolio are,

a)

bonds [a]

b)

mutual funds [b]

c)

stocks [c]

d)

both a and c

e)

all of those listed

42.

It is important to have a personal financial plan because,

a)

if you, unfortunately, declare bankruptcy the bank will need a copy for the court proceedings

b)

it becomes a roadmap that serves as a detailed guide to help you achieve your goals

c)

it can prevent you from making uniformed investments in the stock market

d)

the bank will need a copy of your financial plan if you seek a personal or business loan

43.

This practice is critical in financial planning,

a)

communicating your financial plan to your family [a]

b)

investing at least 25% of your annual income in the stock market [b]

c)

keeping good records [c]

d)

both a and c

e)

all of those listed

44.

In personal finance, an investment is defined as,

a)

a certificate that represents pieces of ownership in a company

b)

getting a loan from your brokerage firm and using the money from the loan to buy more securities

c)

something that you acquire with the goal of making money

d)

the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value

45.

A stock is defined as,

a)

a certificate that represents pieces of ownership in a company

b)

a promissory note, or a promise to repay a certain amount of money at a point in the future

c)

paper documents issued by a corporation indicating ownership that have the highest degrees of risk

d)

people who own a stake in a company

46.

A bond is defined as,

a)

a promissory note, or a promise to repay a certain amount of money at a point in the future

b)

bonds issued by a large corporation

c)

bonds issued by corporations with the highest degrees of risk

d)

bonds issued by the federal government to fund projects (such as to buy mortgages to encourage home ownership)

47.

A corporate bond is defined as,

a)

a promissory note, or a promise to repay a certain amount of money at a point in the future

b)

bonds issued by a large corporation

c)

bonds issued by corporations with the highest degrees of risk

d)

bonds issued by the federal government to fund projects (such as to buy mortgages to encourage home ownership)

48.

A junk bond is defined as,

a)

a promissory note, or a promise to repay a certain amount of money at a point in the future

b)

bonds issued by a large corporation

c)

bonds issued by corporations with the highest degrees of risk

d)

bonds issued by the federal government to fund projects (such as to buy mortgages to encourage home ownership)

49.

The U.S. Treasury department issues treasury bonds to,

a)

finance the debt of the United States government

b)

raise money during times of war to help fund the conflict

c)

raise money to bail-out major industries/corporations in financial distress

d)

raise money to send to foreign nations

50.

Cash distributed to company shareholders/investors are known as,

a)

bonds

b)

dividends

c)

shares

d)

stocks

51.

The term given to a market that is trending downward.

a)

bear market

b)

bull market

c)

liability

d)

net worth

52.

The process of forecasting future expenses and income.

a)

assets

b)

budgeting

c)

equity

d)

liabilities

53.

Things we own, such as cars and motorcycles.

a)

assets

b)

equity

c)

investments

d)

net worth

54.

Things that we own, or our debt.

a)

assets

b)

equity

c)

liabilities

d)

net worth

55.

The difference between the value of the things we own and the things that we owe.

a)

equity

b)

income

c)

interest

d)

net worth

56.

The financial term for ownership.

a)

assets

b)

equity

c)

income

d)

interest

57.

The money coming in through wages earned, allowance, or other sources.

a)

income

b)

income taxes

c)

investments

d)

payment terms

58.

The money owed to the government on earned income.

a)

income taxes

b)

interest

c)

investments

d)

payment terms

59.

The rent on money you borrow.

a)

assets

b)

equity

c)

interest

d)

liabilities

60.

The specific information about the interest rates the lender will charge you and the time period for paying back a loan.

a)

equity

b)

income

c)

liabilities

d)

payment terms