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2025-2026 Business Management Final Exam Review

Total questions: 81

Worksheet time: 1hrs 21mins

Name
Class
Date
1.

The process of accomplishing the goals of an organization through the effective use of people and other resources

a)

management

b)

planning

c)

management science

d)

management strategy

2.

Which function of management requires working with employees to ensure that they are motivated?

a)

planning

b)

organizing

c)

leading

d)

controlling

3.

Which function of management focuses on finding the right employees with the right skills for a particular job?

a)

organizing

b)

staffing

c)

leading

d)

planning

4.

Which level of management spend the most time involved in the planning function of management.

a)

executives

b)

middle managers

c)

supervisor

5.

The Industrial Revolution began primarily because of

a)

large number of people unable to find work

b)

the growth of corporations in the US

c)

the inventions of machines allowing the faster processing of raw materials

d)

managers using practices to improve productivity of employees

6.

Which of the theories of management studies the way work is organized and the procedures used to complete a job to increase worker productivity?

a)

classical management

b)

administrative management

c)

behavioral management

d)

quality management

7.

Which theory of management developed the idea of organizing businesses into departments and having different levels of management?

a)

classical management

b)

administrative management

c)

behavioral management

d)

quality management

8.

Which theory of management focuses on improving an organization by understanding employee motivation?

a)

classical management

b)

behavioral management

c)

administrative management

d)

quality management

9.

The belief that each employee must receive direction from only one manager to avoid conflict is called

a)

authority

b)

responsibility

c)

unity of command

d)

unity of purpose

10.

If a manager believes that his employees will not work to their potential without close supervision, he supports which of the following theories?

a)

Theory X

b)

Theory Y

c)

Theory Z

11.

Theory Y states

a)

employees need close supervision

b)

employees will work hard if they are involved in decisions regarding their work

c)

organizations should work to build a sense of teamwork within a organization

d)

employees will work harder if they see managers working to improve their work environment

12.

Which of the following is NOT a management role?

a)

communicators

b)

rule enforcer

c)

relationship builder

d)

decision maker

13.

People, facilities, money, equipment, and materials are the _____ of an organization.

a)

tools

b)

resources

c)

work

d)

operations

14.

A (an) _____ is any individual who is subject to the authority and control of another person.

a)

employee

b)

manager

c)

subordinate

15.

A document that identifies tasks to be done, employees assigned to the work and a time frame for when the work will be completed is called a

a)

time sheet

b)

work schedule

c)

contingency plan

16.

As first level managers, supervisors are responsible for

a)

developing company plans

b)

designing new products and services

c)

handling day-to-day operations of the business

d)

increasing the overall profit or loss of the business

17.

A ______ is a situation which requiring a solution.

a)

symptom

b)

problem

c)

what-if analysis

18.

Which of the following is NOT a step in the problem solving process?

a)

Identify the problem

b)

Evaluate the symptoms

c)

Gather relevant information

d)

Select an optimal solution

19.

Which type of power is based on the ability to control rewards and punishments?

a)

position

b)

reward

c)

expert

d)

identity

20.

Which type of power is given to people because others want to be accepted by them?

a)

position

b)

reward

c)

expert

d)

identity

21.

Leadership ability is important to managers because

a)

a manager without leadership skills has no way to influence employee behavior

b)

businesses will not hire a manager without leadership skills

c)

leadership helps managers satisfy employees'' needs while also meeting the goals of the business

d)

managers must get work done whether or not employees want to do it

22.

Which of the following is NOT a human relations skill?

a)

self-understanding

b)

understanding others

c)

developing job satisfaction

d)

developing soft skills

23.

Which of the following skills do most employers look for when hiring young employees?

a)

hard skills

b)

human relations skills

c)

soft skills

24.

Which of the following statements about leadership is true?

a)

For the most part, effective leaders are "born" with many leadership skills

b)

Businesses prefer to develop the leadership skills of employees rather than hire people with those skills

c)

The leader of a work team is usually the employees' manager

d)

With proper training, most people can become effective leaders

25.

Getting people to support the same goals of the company and work well together to accomplish them is called

a)

human relations

b)

team building

c)

management

d)

leadership

26.

The way a manager treats and supervises employees is called a ______________. It includes the way a manager gives directions and handles problems.

a)

team building

b)

leadership style

c)

strategic planning

d)

operational planning

27.

A _______ leader is one who encourages workers to share in making decisions about their work

a)

democratic

b)

autocratic

c)

situational

d)

open

28.

A (an) _________ leader gives little or no direction to his employees.

a)

autocratic

b)

situational

c)

open

d)

democratic

29.

Managers who use close management believe that

a)

employees generally enjoy their work

b)

experienced employees are able to perform their jobs well

c)

employees only work when they have to

d)

employees want to be part of a team

30.

Of the 4 styles of leadership, the one in which managers are the most flexible in their approach is

a)

autocratic

b)

democratic

c)

open

d)

situational

31.

When confronted with an employee's personal problems that affect the employee's work or that of other employees, the manager should

a)

allow the employee to work through the problem alone

b)

help the employee identify services offered by the business that will help solve the problem

c)

take personal responsibility for counseling the employee

d)

begin termination proceedings on the employee

32.

Appropriate procedures for handling violations of work rules would include each of the following EXCEPT

a)

provide a verbal warning for the first infraction

b)

ignore minor violations but respond to major ones

c)

put a written reprimand in the employee's file

d)

give the employee a short suspension

33.

A written description of the nature of a business, its goals and objectives, and how they will be achieved is called a

a)

SWOT analysis

b)

business plan

c)

strategic planning

d)

policies and procedures

34.

Which type of planning done by an organization is considered short-term and identifies specific goals for each part or department of a business

a)

strategic planning

b)

operational planning

c)

SWOT analysis

35.

A short, specific statement of a business's purpose and direction is a

a)

mission statement

b)

vision

c)

policy

d)

procedure

36.

Planning provides all of the following benefits to a company EXCEPT

a)

encouraging managers to be more specific and objective in their decisions

b)

helping managers to determine whether the business is making progress

c)

ensuring a business will be successful and profitable

d)

providing a guide for managers when making important decisions

37.

Which of the following is NOT a characteristic of an effective goal?

a)

goals should be specific and meaningful

b)

goals should be achievable

c)

goals should be inconsistent with the company's overall goals

d)

goals should be clearly communicated

38.

The financial plan for business operations developed for a specific period of time is called a

a)

policy

b)

procedure

c)

budget

d)

schedule

39.

A sequence of steps to be followed for performing a specific task is called a

a)

standard

b)

policy

c)

procedure

d)

schedule

40.

Which of the following is NOT a purpose of an organizational chart

a)

to show the major departments within an organization

b)

allow employees to see who they are accountable to

c)

identify lines of authority within an organization

d)

to see the salaries of individuals within an organization

41.

The principle which states that each employee should report to only one supervisor at a time for a particular task is called

a)

unity of command

b)

accountability

c)

responsiblity

d)

chain of command

42.

The principle which describes the number of employees that one manager should supervise to effectively implement the organizations goals is called

a)

span of management

b)

accountability

c)

unity of command

d)

responsibility

43.

For work teams to be successful in an organization, team members must be competent in all of the following areas except:

a)

technical job skills

b)

interpersonal skills

c)

administrative skills

d)

financial skills

44.

An example of an intrinsic motivation factor is

a)

praise from another employee

b)

a pay increase

c)

personal satisfaction

d)

the admiration of coworkers

45.

Rewards and punishments are examples of which type of motivation

a)

intrisnic motivation

b)

extrinsic motivation

46.

The efforts to increase the effectiveness and efficiency of specific business operations are known as

a)

organizational change

b)

team effectivness

c)

consensus building

d)

process improvement

47.

According to whose theories of motivation should managers identify whether their employee has the need for power, affiliation or achievement and put them in positions where those needs can be met.

a)

Maslow

b)

McCelland

c)

Herzberg

48.

Which of the following is NOT an effective way for a manager to implement change?

a)

Do not move too quickly to implement change

b)

Do not communicate with employees about the change until a final decision has been made

c)

Ask employees for ideas on effective solutions and procedures

d)

Be less critical of mistakes made by employees while changes are being made

49.

What are three types of standards (click 3 answers)

a)

quantity

b)

time

c)

cost

d)

budgeting

50.

The difference between current performance and the standard is called the

a)

policy

b)

variance

c)

profit

51.

The final step managers take in the controlling process is

a)

following performance standards set to help meet company goals

b)

measuring performance using established standards

c)

establishing new goals

d)

taking corrective action when standards are not met

52.

Consistency in products and performance is measured with a

a)

quality standard

b)

quantity standard

c)

time standard

d)

cost standard

53.

Which of the following is NOT one of the actions that managers should take if they discover that performance is not meeting standards?

a)

Take steps to improve performance

b)

Change policies and procedures

c)

Revise the standard

d)

Assign the problem to a trusted and valued employee

54.

A production manager who specifies the minimum number of units to be produced each day, hour, or month is establishing a

a)

variance

b)

time standard

c)

quality standard

d)

quantity standard

55.

The ability of businesses from one country to compete with similar businesses in other countries is known as

a)

domestic competition

b)

multinational competition

c)

global competition

d)

fair competition

56.

Which of the following is NOT one of the ways companies can achieve efficiency?

a)

specialization of effort

b)

reducing prices charged to customers

c)

better technology and innovation

d)

reorganization of all work activities

57.

An example of income that would be included in the underground economy but not included in the GDP is

a)

small-business profits

b)

income generated by oil and gas production

c)

income from sale of services

d)

cash paid for work that is not reported on taxes

58.

Which of the following is not offered to a franchisee by a franchisor?

a)

help finding a location for the business

b)

operating policies and procedures

c)

a guaranteed minimum profit

d)

the use of company's name and trademark

59.

When Apple Computer built a personal computer, it was an example of

a)

global competition

b)

a new-product franchise

c)

a marketing activity

d)

an innovation

60.

The highest point of expansion is

a)

a recession

b)

a depression

c)

a peak

d)

a trough

61.

When the economy grows at a faster than ideal rate, we are in a period of

a)

unemployment

b)

inflation

c)

contraction

62.

Where is unemployment shown on a graph of the business cycle?

a)

space between the peak and the growth trend line

b)

space between the trough and the growth trend line

c)

space on the growth trend line

63.

Jobs are lost when the economy

a)

grows

b)

shrinks

c)

stays the same

64.

A business cycle is defined as a

a)

peak, trough, peak

b)

trough, peak, trough

c)

peak, recession, peak

65.

What are the 3 economic goals of every country? (chose 3)

a)

promote economic growth

b)

limit inflation

c)

prevent excessive unemployment

d)

have the GDP grow at an acceptable rate every year

66.

The point at which supply and demand are equal is called

a)

market price

b)

base price

c)

sale price

67.

In a ______ economy the government owns most if not all of the countries resources

a)

command

b)

market

c)

mixed

68.

Which of the following BEST describes the political-economy system of the US?

a)

capitalism

b)

communism

c)

market economy

69.

The number of products that will be bought at a given time at a specific price point is

a)

demand

b)

supply

c)

proft

d)

business cycle

70.

On a demand graph, the demand curve slopes in which direction?

a)

upward

b)

downward

c)

in a straight line parallel to the x axis

71.

Which type of utility is created when a product or service is available when it is needed or wanted?

a)

time

b)

place

c)

possession

d)

form

72.

Which type of utility created when a product or service is available where it is needed or wanted?

a)

place

b)

form

c)

possession

d)

time

73.

NAFTA includes

a)

The United States and the European Union

b)

United States and Canada

c)

United States and Mexcio

d)

United States, Canada, and Mexcio

74.

When a company sells its products to a business in another country, which of the following international business activities are they involved in?

a)

importing

b)

exporting

c)

wholly owned subsidiary

d)

strategic alliance

75.

The country in which a business has its headquarters is called the

a)

host country

b)

home country

c)

parent firm

d)

subsidiaries

76.

A ______ limits the amount of a foreign good permitted to enter the country.

a)

tariff

b)

santion

c)

embargo

d)

quota

77.

The value of one country's currency compared to another's is called a (an)

a)

dumping

b)

exchange rate

c)

sanction

d)

tariff

78.

Which of the following is NOT a barrier to free trade?

a)

tariffs

b)

dumping

c)

quota

d)

importing

79.

The theory that a country should specialize in products or services that it can provide more efficiently than other countries is called

a)

international specialization

b)

competitive advantage theory

c)

comparative advantage theory

d)

specialization theory

80.

A type of culture in which people communicate directly and explicitly and are expected to get to the point directly and not beat around the bush is a/an

a)

direct culture

b)

explicit culture

c)

low-context culture

d)

high-context culture

81.

An agreement between 2 or more countries to remove all restrictions between them on the sale of goods and services, while imposing barriers on trade and investment from countries that are not part of it, creates a/an

a)

free-trade zone

b)

economic union

c)

trade alliance

d)

trading bloc