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WorksheetsU3 AOS 1 Business Management Pre-Test
Total questions: 61
Worksheet time: 35mins
Name the 4 Types of Business:
franchise, corporation, partnership, sole proprietorship
sole proprietorship, club, non-profit, franchise
accounting, marketing, advertising, corporation
Nike, State Farm, Hobby Lobby, Subway
Which is an example of a good?
television repair
pedicure
shoes
haircut
A father who wants to take his son into the business with him should form a......
non-profit
franchise
corporation
partnership
Which is an example of a service?
furniture
groceries
dog grooming
clothing
A disadvantage of a franchise would be....
having to move
not enough employees
too much control
limited control
Someone who is self-employed and runs their own business is likely to be a ...
Partnership
Sole trader
Limited company
Public limited company
What is unlimited liability?
It means you do have to pay the debts of the company you own
It means you have no company debts
It means you don't have to pay the debts of the company you own
A business which has a huge amount of money invested in it is most likely to be a .....
Sole Trader
Private limited company
Partnership
Public limited company
Which ownership types have unlimited liability (Meaning they do have to pay the company debts)?
Partnership
Private limited company
Sole trader
Public limited company
What kind of business is best for opening a store quickly?
Public limited company
Franchise
Charity
Private limited company
Which ownership types DO have limited liability (Meaning they don't have to pay the company debts)?
Partnership
Private limited company
Sole trader
Public limited company
Which companies can sell shares to raise money/capital?
Franchise
Private limited company
Public limited company
Charities
Sole trader disadvantages
Limited Liability
More difficult to gain finance
Minimal government regulation
Heavy reliance on the owner's skilsl
What is true about partnerships?
Partnerships are expensive to set up
Partners do not have unlimited liability
It's harder to raise capital as a partner than sole trader
Can have 2-20 partners/owners
How many owners can private limited companies have?
There can only be one CEO #boss
2-20 shareholders
1-50 shareholders
20-100 shareholders
Advantages of a private limited company
Expensive to set up
Shares cannot be traded freely
Unlimited liability
Easier to attract capital
Social enterprises...
Don't try to make a profit
exist to meet a social need rather than shareholder expectations
benefit the community and rely on donations to operate
find it easy to obtain finances to start their business
Government Business Enterprises ...
rely on the government for the initial investment $$$
do not compete with other businesses
do not invest in areas that private companies invest
are more productive than private businesses
Which of the following is not a business objective on the study design?
make a profit
meet shareholder expectations
increase market share
increase brand awareness
Market share is...
the share of the total sales a business has over its main competitor
the % of an industry's total sales earned by a business in a specific time.
the portion of a shelfspace owned by a particular company in a supermarket.
Efficiency is...
how fast a business achieves its goals
how well a business uses its resources to achieve its goals
how well a business is able to achieve their goals
Effectiveness is...
how fast a business achieves its goals
how well a business uses its resources to achieve its goals
how well a business is able to achieve their goals
Which is not an example of social needs
People want drinking water accessible from their homes
People want to buy exotic plants online
People want to feel safe at work
People want employment opportunities
Define Stakeholder:
An individual with high power over an organisation.
An individual or organisation with financial decision making within a company.
An individual, group or organisation that have a stake and influence over a business.
An individual, group or organisation that don't have a stake and influence over a business.
What are the two types of stakeholders?
Internal, Investor
Internal, External
International, domestic
Private, Public
Identify an external stakeholder:
Investor
Employee
Employer
Client
Identify an internal stakeholder:
Government
Community
Consumer
Manager
What arises because an organization cannot meet the needs of all its stakeholders at the same time?
Conflict
Lobbying
Miscommunication
Mismanagement
Which stakeholder group is most likely to have the following interests: financial benefits, job security, working environment and continuous professional development needs?
Directors
Employees
Entrepreneurs
Managers
How do pressure groups primarily strive to achieve their aims?
By getting the workforce to take industrial action
By lobbying the government for changes to the law
By organizing mass demonstrations to win public support
By raising as much publicity and awareness of their cause as possible
Which statement below does not apply to the shareholders of a business?
They are internal stakeholders
They are the owners of limited liability companies
They have an interest in the performance of the business
They receive dividends each year based on the profits of the business
External stakeholders include
Customers
Directors
Employees
Shareholders
Laissez-faire management:
provides a lot of direction to employees on what their roles are.
makes staff responsible for their own work.
can lead to great productivity in the workplace.
delegates decisions to employees and does not provide feedback.
Participative or democratic management:
centralises authority with the democratically elected manager.
encourages employees to take responsibility for their work.
requires a lot of supervision of employees as employees are responsible for their own work.
reduces the time it takes to make decisions.
One of the following is not a feature of an autocratic management style.
The manager makes all decisions.
The manager has total control.
The manager encourages team work.
The manager closely supervises employees.
What is the process of accomplishing the goals of an organization through the effective use of people and resources?
planning
role
management
function
What is management style?
cognitive ability
the way a manager works with and involves employees
the way a leader identifies with the payroll system
the difference between specialized and frontier
This leader's lack of trust in his or her employees doesn't inspire them to be creative
Laissez-faire
Democratic
Authoritative
Autocratic
Sets goals and then leaves staff alone to get the job done.
Participative
Persuasive
Laissez-fiare
Autocratic
Best style for crisis management
Consultative
Participative
Autocratic
Laissez-faire
Match the following management style with the appropriate definition.
Autocratic
The manager makes all the decisions and dictates how employees work
Persuasive
Manager makes decisions but tries to convince employees of the benefit of their choices
Consultative
The manager talks to employees for their input before making the decision
Participative
The manager and the employees make decisions together
Laissez-faire
The manager allows employees to make all decisions and monitor their own work
Which one of the following best represents the meaning of delegation?
Process of assigning tasks or projects to subordinates
Process of assigning tasks or projects to subordinates and clearly dictating timeframe for completion
Process of assigning tasks or projects to subordinates and clearly dictating expected outcomes and timeframe for completion
Process of assigning tasks or projects to subordinates and clearly dictating expected outcomes
Match the following types of planning to their correct definition.
Strategic
Long-term planning (2-5 years)
Tactical
Medium-term planning (1-2 years)
Operational
Short-term planning (Day-to-day)
What does S stand for in SWOT?
small
strong
strengths
slow
What does W in SWOT stand for?
weather
weaknesses
wrong
wide
What does O in SWOT stand for?
open
only
opportunities
open-minded
What does T in SWOT stand for?
true
threats
trade
troubles
Reorder the following steps in the decision-making process.
Develop objectives and criteria
Outline the facts
Identify alternative solutions
Analyse the alternatives
Chose one alternative and implement it
The ability to deal and liase with other people is an (a) skill.
Corporate social responsibility emphasizes
socially responsible investing.
obligation and accountability.
action and activity.
outcomes and results.
The first and primary argument for corporate social responsibility is
it is a way to gain more power.
it is in business's long range interest to be socially responsible.
business is best equipped to handle social problems.
the free-market economic system has proven to be ineffective in dealing with social problems.
Which of the following has the largest impact on corporate culture?
The management and leadership styles in an organization
The rules and regulations set out by the government
The set of beliefs and values held by the people within an organization
The traditions and customs of a particular country
When management and employees of an organization have different beliefs and values, there is said to be
A culture gap
An industrial dispute
Conflict
Corporate diversity
Which of the following is least likely reason for a necessary change in corporate culture?
Conflict is not being managed within the organization
Profits are in decline
The existing culture restricts organizational growth
There is a high degree of staff absenteeism and staff turnover
An organization with one dominant decision-making individual or group has what type of culture
Person culture
Power culture
Role culture
Task culture
Although _______ have a large part in defining and determining organizational culture, all ___________ contribute to the culture.
Director, Stakeholders
Shareholders, stakeholders
Executives, employees
Leaders, stockholders
The (a) corporate culture refers to the values and ideas outlined in policies of the business, while the (b) corporate culture is what actually occurs in a business.
