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WorksheetsBusiness Management Final Review
Total questions: 50
Worksheet time: 26mins
Which function of management sets goals and decides how to achieve them?
Organizing
Planning
Controlling
Strategic planning mainly focuses on:
Daily task scheduling
Long-term objectives and direction
Supervising individual employees
The decision-making process usually begins with:
Choosing an alternative
Identifying the problem
Evaluating results
Organizing in management primarily involves:
Setting standards and measuring performance
Grouping tasks and assigning responsibilities
Motivating employees
A centralized organization means:
Decision power is held at top levels
Decisions are made only by teams
Every employee makes decisions independently
A flat structure typically has:
Many management layers
Few management layers and wider spans of control
No managers at all
Leading as a management function mainly involves:
Recruiting new owners
Directing and motivating people
Designing the physical workplace
Which describes an effective leader?
Avoids feedback and ignores team concerns
Communicates clearly and motivates the team
Makes decisions without explaining them
Which is NOT one of the common leadership types?
Autocratic
Democratic
Passive-aggressive
Controlling in management ensures that:
Plans are ignored
Activities conform to plans and standards
Employees always work without supervision
Which is a step in the controlling process?
Setting performance standards
Hiring new staff only
Eliminating competition
Financial control is a type of control that deals with:
Employee emotions
Money, budgets, and expenditures
Office layout
A sole proprietorship is best described as:
Business owned by many shareholders
Business owned and run by one person
A non-profit organization
In a partnership, owners:
Share profits and responsibilities
Cannot make joint decisions
Are always corporations
A corporation is a legal entity that:
Is the same as a sole trader
Separates the business from its owners legally
Cannot issue shares
Franchising involves:
A company renting equipment only into one
Granting rights to use a business system and brand
Merging two companies
Corporate Social Responsibility (CSR) means businesses should:
Ignore community and environmental impacts
Consider social, ethical, and environmental effects of actions
Only focus on short-term profits
Business ethics refers to:
Following laws and moral principles in business conduct
Doing anything to increase profit regardless of harm
Only obeying customers
Stakeholders in CSR usually include:
Only the CEO
Employees, customers, suppliers, community, and shareholders
Only government officials
Which decision-making style seeks input from many team members before deciding?
Democratic
Autocratic
Laissez-faire
Hierarchical structure is characterized by:
Clear levels of authority and chain of command
No defined authority
Everyone reports to everyone
Span of control refers to:
Number of products a company sells
Number of subordinates a manager directly supervises
Geographical reach of a firm
An example of a non-financial control is:
Budget variance analysis
Quality inspections and customer feedback
Bank loan terms
A disadvantage of sole proprietorship is:
A. Limited decision-making freedom
B. Unlimited personal liability for the owner
C. Complex corporate regulations
Ethical business behaviour most directly helps a firm by:
Reducing trust and reputation
Building trust and long-term relationships with stakeholders
Guaranteeing immediate high profits
A manager notices sales falling and gathers data, compares to targets, and asks staff for ideas. Which management function is being used?
Planning
Controlling and leading combined
Organizing
A franchisee follows brand rules closely while the franchisor monitors performance. This example best illustrates:
Centralization of decision-making at the franchisor and control mechanisms
A sole proprietorship model
Decentralized democratic leadership
A company changes from many management layers to fewer to speed decision-making. This change is moving from hierarchical to:
More centralized structure
A flatter structure with wider spans of control
A partnership legal form
An autocratic leader would most likely:
Involve employees in decisions
Make decisions alone and expect compliance
Avoid setting goals
A firm compares actual output vs target and corrects machine settings. This is an example of:
Organizing only
The controlling process: measure, compare, correct
Ownership change
Two partners disagree over profit sharing. Which ownership feature is highlighted?
Unlimited liability of partners and need for clear agreements
Corporation limited liability benefits
Franchisor rules
A manager delegates tasks but keeps final decisions. This is an example of:
Complete decentralization
Partial decentralization with retained central control
Laissez-faire leading
Which choice best shows CSR in practice?
Dumping waste to cut costs
Donating part of profits to local schools and reducing emissions
Avoiding employee training to save money
A company uses regular performance appraisals and monthly budget reviews. These are examples of:
Planning tools only
Control tools — both human and financial controls
Marketing strategies
A corporation issues shares to raise capital. One advantage is:
Owners have unlimited liability
Easier to raise large amounts of capital from many investors
Must always be managed by the founder
A manager faces a new unexpected problem and chooses the best quick solution. Which decision-making approach is this?
Programmed decisions only
Non-programmed decision-making using judgment under uncertainty
Ignoring the issue
If a company decentralizes, which likely happens?
Decisions move closer to lower-level managers and employees
All decisions move to the CEO only
The business becomes a sole proprietorship
A leader who motivates by rewarding team achievement is using which leadership approach?
Transactional
Autocratic
Laissez-faire
During the control process, corrective action is taken when:
Performance meets or exceeds standards
There are deviations from planned standards
Plans are not made
A partnership agreement that limits liability for one partner is an attempt to:
Increase personal risk for both partners
Provide legal structure to manage ownership responsibilities and liabilities
Convert the business into a franchise
A business benchmark compares performance to industry best practice. This is used in which control type?
External/benchmark control for performance improvement
Only in sole proprietorships
As a substitute for planning
A company moves decision authority to regional managers to respond faster to local markets. This is an example of:
Centralization
Decentralization to improve responsiveness
Removing leadership
Which leadership type encourages team input and shared decision-making?
Autocratic
Democratic
Transactional
A firm uses customer satisfaction surveys to decide service improvements. This is an example of:
Using feedback as part of the controlling process
Organizing staff into teams only
Issuing shares
A shareholder sues a corporation. The corporation being a separate legal entity means:
Shareholders are personally responsible for the corporation’s debts
The corporation itself is liable, protecting shareholders’ personal assets
The corporation ceases to exist immediately
A business places authority and responsibility clearly on an organizational chart. This mainly helps with:
Reducing need for planning
Clarifying roles, reporting lines, and organizing work
Eliminating all controls
A large company must choose between centralizing purchasing at headquarters or allowing local branches to buy supplies. Evaluate which option is better when speed and local customization matter. Best choice:
Decentralize purchasing so local branches can respond quickly and customize orders
Centralize purchasing to keep uniformity even if it slows local responses
Stop purchasing and outsource everything
A family-owned bakery considers becoming a corporation to raise capital. Evaluate the main trade-off they will face. Best choice:
They gain access to more capital and limited liability but may lose some family control
They will have lower legal protections and less ability to raise funds
They must immediately become a franchise
A CEO must decide whether to adopt strict rules (autocratic) or empower teams (democratic) to improve productivity. If the workforce is skilled and motivated, the best leadership approach is likely:
Democratic leadership to encourage innovation and ownership
Autocratic leadership to control every detail regardless of skills
Avoid any leadership and let chaos happen
A multinational firm faces accusations of environmental harm in a host country. Evaluate the best response to protect reputation and long-term profits. Best choice:
Implement transparent remediation, strengthen CSR practices, and engage stakeholders
Deny responsibility and ignore community concerns to save money
Immediately withdraw operations without communicating
