A Business Education Baseline Test Quiz
Here we present you A Business Education Baseline Test Quiz! Management is the practice of manipulating all the resources available to a company to ensure that you meet the business goals and objectives. Different management styles have been used throughout time, and the questions below are designed to test your understanding of all the basics of business. Why don’t you give it a try and refresh your memory?
Questions and Answers
- 1.
How would you describe an authoritarian (or controlling) management style?
- A.
A manager who involes employees in decision making.
- B.
A manager who asks staff for feedback before making a decision.
- C.
A manager who likes to make all decisions by him/herself.
Correct Answer
C. A manager who likes to make all decisions by him/herself.Explanation
An authoritarian (or controlling) management style is characterized by a manager who likes to make all decisions by him/herself. This type of manager tends to have a top-down approach, where they exert complete control and authority over the decision-making process without involving employees or seeking their input. They prefer to have full control over the direction and outcomes of the decisions, without considering the perspectives or contributions of others. This style can lead to a lack of employee empowerment, limited creativity, and a lack of engagement and motivation among the team members.Rate this question:
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- 2.
How would you describe a democratic management style?
- A.
A manager who likes to make all the decisions.
- B.
A manager who sets the goals of the business and communicates 'downwards' to employees.
- C.
A manager who involves employees in decision making and aims to benefit both the business and personnel as a result of decisions that are made.
Correct Answer
C. A manager who involves employees in decision making and aims to benefit both the business and personnel as a result of decisions that are made.Explanation
A democratic management style is characterized by a manager who involves employees in decision making and aims to benefit both the business and personnel as a result of decisions that are made. This style promotes employee empowerment, participation, and collaboration in decision-making processes, fostering a sense of ownership and engagement among employees. By including employees in decision making, the manager acknowledges their expertise and values their input, leading to better decision outcomes and a more motivated workforce. This management style promotes a culture of inclusivity, transparency, and shared responsibility within the organization.Rate this question:
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- 3.
One management role in the business process is to PLAN.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because planning is an essential management role in the business process. Planning involves setting goals, determining the actions needed to achieve those goals, and creating a roadmap for the organization. It helps in identifying potential obstacles and finding ways to overcome them. Effective planning ensures that resources are allocated efficiently, tasks are assigned appropriately, and timelines are established. It also helps in coordinating and aligning efforts towards achieving the desired outcomes. Overall, planning plays a crucial role in guiding and directing the business process towards success.Rate this question:
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- 4.
Planning is...
- A.
Where management directs employees on "what to do."
- B.
A management role where the procedures for meeting organisational goals are developed.
- C.
A process of controlling the assets of the business.
Correct Answer
B. A management role where the procedures for meeting organisational goals are developed.Explanation
The correct answer is "A management role where the procedures for meeting organisational goals are developed." Planning involves the development of strategies and procedures that outline how an organization will achieve its goals. It is a proactive process where management sets objectives, identifies the actions needed to achieve those objectives, and determines the resources required. Planning helps in coordinating and directing the efforts of employees towards the achievement of organizational goals.Rate this question:
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- 5.
Strategic planning is...
- A.
Short term planning.
- B.
Long term planning.
Correct Answer
B. Long term planning.Explanation
Strategic planning refers to the process of setting long-term goals and creating a roadmap to achieve them. It involves analyzing the current situation, identifying opportunities and threats, and formulating strategies to ensure the organization's success in the future. Short-term planning, on the other hand, focuses on immediate actions and goals. Therefore, the correct answer is long-term planning, as strategic planning is primarily concerned with the future direction and sustainability of an organization.Rate this question:
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- 6.
Action planning is...
- A.
Short term planning.
- B.
Long term planning.
Correct Answer
A. Short term planning.Explanation
Action planning refers to the process of creating a detailed plan of specific actions that need to be taken in order to achieve a particular goal or objective. It involves breaking down the overall goal into smaller, manageable tasks and outlining the steps, resources, and timelines required to accomplish them. Short term planning typically focuses on immediate or near-future actions, making it the most suitable explanation for action planning in this context.Rate this question:
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- 7.
A plan is a proposed method to be used to achieve the organisation's goals and objectives.
- A.
True.
- B.
False.
Correct Answer
A. True.Explanation
A plan is indeed a proposed method that outlines the steps and strategies to be followed in order to achieve an organization's goals and objectives. It serves as a roadmap, providing guidance and direction to ensure that the desired outcomes are attained. Without a plan, it would be difficult for an organization to effectively and efficiently work towards its goals. Therefore, the statement "A plan is a proposed method to be used to achieve the organization's goals and objectives" is correct.Rate this question:
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- 8.
Planning and goal setting are important because they give the manager focus and direction.
- A.
True.
- B.
False.
Correct Answer
A. True.Explanation
Planning and goal setting are important because they provide a clear sense of direction and purpose for managers. By setting goals, managers can identify what needs to be achieved and create a roadmap to reach those objectives. This helps in prioritizing tasks, allocating resources effectively, and making informed decisions. Additionally, planning allows managers to anticipate potential obstacles and develop strategies to overcome them. Overall, planning and goal setting enable managers to stay focused, organized, and work towards achieving desired outcomes.Rate this question:
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- 9.
A business can set goals in a number of areas. Goals are vital in assisting the manager to focus on the details of ...
- A.
Loan repayments.
- B.
The strategic plan.
- C.
Short term cash flow.
Correct Answer
B. The strategic plan.Explanation
Setting goals is an essential part of a business's strategic planning process. Goals help managers to define the direction and priorities of the organization. By setting goals aligned with the strategic plan, managers can ensure that their actions and decisions are in line with the overall objectives of the business. This helps to maintain focus, allocate resources effectively, and measure progress towards achieving the desired outcomes. Goals related to loan repayments and short term cash flow may be important in specific circumstances, but they are typically more tactical and operational in nature, whereas the strategic plan encompasses the broader, long-term vision and objectives of the business.Rate this question:
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- 10.
Once a business has been established, ongoing monitoring by the owner is no longer necessary.
- A.
True.
- B.
False.
Correct Answer
B. False.Explanation
False. Ongoing monitoring by the owner is necessary even after a business has been established. Monitoring helps the owner to stay updated with the performance of the business, identify any issues or opportunities, and make informed decisions. It allows the owner to track financials, assess customer satisfaction, monitor market trends, and ensure the business remains competitive. Ongoing monitoring is crucial for the long-term success and growth of a business.Rate this question:
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- 11.
Which of these departments deal with money?
- A.
Human Resources
- B.
Finance and accounts
- C.
IT support
Correct Answer
B. Finance and accountsExplanation
The department that deals with money is Finance and accounts. This department is responsible for managing and tracking the financial transactions and accounts of an organization. They handle tasks such as budgeting, financial planning, payroll, and financial reporting. Human Resources is responsible for managing the organization's human capital, while IT support deals with technical issues and support.Rate this question:
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- 12.
What Department deals with recruitment?
- A.
Finance
- B.
IT support
- C.
Admin
- D.
Human resources
Correct Answer
D. Human resourcesExplanation
Human resources is the department that deals with recruitment. This department is responsible for finding, attracting, and hiring new employees for an organization. They handle the entire recruitment process, including advertising job vacancies, screening resumes, conducting interviews, and making job offers. Human resources also plays a crucial role in onboarding new employees and ensuring they have a smooth transition into the organization.Rate this question:
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- 13.
The administration department takes care of any technology problems
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the administration department is not responsible for handling technology problems. It is typically the IT department or the technical support team that takes care of technology-related issues. The administration department is more focused on managing administrative tasks, such as record-keeping, scheduling, and coordinating activities within the organization.Rate this question:
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- 14.
The Administration department deals with wages
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement "The Administration department deals with wages" is false. The Administration department typically handles tasks related to office management, record-keeping, and administrative support. Wages, on the other hand, are typically managed by the Human Resources department, which is responsible for hiring, payroll, and employee benefits.Rate this question:
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- 15.
What is Human Resources?
- A.
A term used to describe the individuals who comprise the workforce of an organization
- B.
A term applied in labor economics
- C.
The name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals
Correct Answer(s)
A. A term used to describe the individuals who comprise the workforce of an organization
B. A term applied in labor economics
C. The name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individualsExplanation
Human resources is a term used to describe the individuals who comprise the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials 'HR'.Rate this question:
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- 16.
The key functions of the Human Resources are:
- A.
Recruitment and Selection (Resourcing)
- B.
Organizational design and development.
- C.
Performance, conduct and behaviour management
- D.
Human resources (or workforce) analysis and the management of workforce personal data
- E.
All of the above and more
Correct Answer
E. All of the above and moreExplanation
Key functions
The Human Resources function may set strategies and develop policies, standards, systems and processes to implement these strategies in a whole range of areas for which the following would be typical of a wide range of organizations.
1. Recruitment and Selection (Resourcing)
2. Organizational design and development.
3. Business transformation and change management
4. Performance, conduct and behaviour management
5. Industrial and employee relations
6. Human resources (or workforce) analysis and the management of workforce personal data
7. Compensation, rewards and Benefits management
8. Training & development (Learning management)
Implementation of such policies, processes or standards may be directly managed by the HR function itself, or the function may indirectly supervise the implementation of such activities by managers, other business functions or via third-party external partner organizations.Rate this question:
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- 17.
The objective of an organization's human resource management strategy is...
- A.
To maximize the return on investment from the organization's human capital
- B.
Minimize financial risk
- C.
All of the above
- D.
None of the above
Correct Answer
C. All of the aboveExplanation
In the simplest terms, the objective of an organization's human resource management strategy is to maximize the return on investment from the organization's human capital and minimize financial risk. Human Resources seeks to achieve this by aligning the supply of skilled and qualified individuals, and the capabilities of the current workforce, with the ongoing and future business plans and requirements of the organization in order to maximise return on investment and seeks to secure the future survival and success of the entity. In ensuring such objectives are achieved, the human resource function purpose in this context is to implement the organisation's human resource requirements effectively but also pragmatically, taking account of legal, ethical and as far as is practical in a manner which retains the support and respect of the workforce.Rate this question:
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- 18.
Founder of Walmart?
Correct Answer
Sam WaltonExplanation
Sam Walton is the correct answer because he is the founder of Walmart. He started the company in 1962 and grew it into one of the largest retail corporations in the world. Walton's innovative strategies and emphasis on providing low prices to customers played a significant role in the success of Walmart. His vision and leadership transformed the retail industry and established Walmart as a dominant force in the market.Rate this question:
- 19.
The purchase price of a new van was $22,980. The sales tax rate in the state was 5.5%, and registration fees came to $133. There was also a $1,500 manufacturer’s rebate on the van. If the customer put a down payment of $2,200 toward the purchase, what was the delivered price?
- A.
$20,676.90
- B.
$22,876.90
- C.
$24,376.90
- D.
$22,376.90
Correct Answer
B. $22,876.90Explanation
The delivered price is calculated by subtracting the manufacturer's rebate and the down payment from the purchase price, and then adding the sales tax and registration fees. In this case, the manufacturer's rebate is $1,500 and the down payment is $2,200. So, the total amount to be subtracted is $3,700. The purchase price is $22,980. Therefore, the total amount to be added is $22,980 - $3,700 = $19,280. The sales tax rate is 5.5%, so the tax amount is $19,280 * 0.055 = $1,060.40. The registration fees are $133. Adding the tax and registration fees, the delivered price is $19,280 + $1,060.40 + $133 = $20,473.40. However, this is not one of the options provided. Therefore, the correct answer is $22,876.90.Rate this question:
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- 20.
Which method are most companies LEAST likely to use to record the number of hours their employees work?
- A.
Employees pass a magnetic stripe card through a reader
- B.
Employees insert a time card into a time clock
- C.
Employees write their hours worked on a time sheet
- D.
Employees keep track of their hours worked mentally.
Correct Answer
D. Employees keep track of their hours worked mentally.Explanation
Most companies are least likely to use the method of employees keeping track of their hours worked mentally because it is highly prone to errors and inaccuracies. It lacks a reliable system of recording and can easily be manipulated or forgotten. Companies prefer more concrete and accurate methods such as using magnetic stripe cards, time clocks, or time sheets, which provide a more reliable and traceable record of employees' working hours.Rate this question:
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- 21.
Which of the following is an example of a job benefit?
- A.
Paid holidays
- B.
Recreational facilities
- C.
Child care
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "All of the above" because all of the options listed are examples of job benefits. Paid holidays, recreational facilities, and child care are all additional advantages or perks that an employee may receive as part of their job. These benefits can help improve work-life balance, increase job satisfaction, and attract and retain talented employees.Rate this question:
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- 22.
What is the primary reason for writing a budget?
- A.
To calculate net income
- B.
To calculate taxable income
- C.
To study past spending habits
- D.
To help allocate future income
Correct Answer
D. To help allocate future incomeExplanation
The primary reason for writing a budget is to help allocate future income. A budget allows individuals or organizations to plan and prioritize their spending based on their financial goals and needs. By creating a budget, one can determine how much money should be allocated to different expenses such as bills, savings, investments, and discretionary spending. This helps to ensure that income is used efficiently and effectively, enabling individuals or organizations to meet their financial objectives.Rate this question:
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- 23.
What is the name for the personalized password that each customer must enter before making ATM transactions?
- A.
EFT
- B.
PWD
- C.
PIN
- D.
PRT
Correct Answer
C. PINExplanation
A Personal Identification Number (PIN) is a unique password that each customer must enter before making ATM transactions. It is used to authenticate the customer and ensure the security of their account.Rate this question:
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- 24.
Which of these companies is a franchise?
- A.
New Look
- B.
Zeb's
- C.
Subway
- D.
Odeon Cinema
Correct Answer
C. SubwayExplanation
Subway is a franchise because it is a well-known international fast food chain that allows individuals to own and operate their own Subway restaurant. Franchising is a business model where a company grants the rights to another party to use its brand name, trademarks, and business model in exchange for a fee or royalty. In the case of Subway, individuals can purchase a franchise and open their own Subway restaurant, following the established guidelines and menu of the company.Rate this question:
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- 25.
Which of these is not a benefit of franchising?
- A.
The franchisee benefits from national advertising
- B.
Allows an individual to start up a business with less risk involved
- C.
You have to follow the rules and standards of the franchise, there is less flexibility for you to do what you want
- D.
You benefit from the reputation of the franchise
Correct Answer
C. You have to follow the rules and standards of the franchise, there is less flexibility for you to do what you wantExplanation
Franchising offers several benefits such as national advertising, reduced risk in starting a business, and leveraging the reputation of the franchise. However, one drawback is that franchisees have to adhere to the rules and standards set by the franchise, limiting their flexibility to operate the business according to their own preferences.Rate this question:
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- 26.
Which of these is the correct definition for Unlimited Liability?
- A.
The owners are not liable for the firms debt and will only lose the amount they initially invested
- B.
The owners are personally liable for the firms debt and may have to pay them out of their own pocket
Correct Answer
B. The owners are personally liable for the firms debt and may have to pay them out of their own pocketExplanation
Unlimited liability refers to a situation where the owners of a firm are personally responsible for the company's debts and obligations. This means that if the company fails to meet its financial obligations, the owners may have to use their personal assets, such as savings or property, to cover the debts. Unlike limited liability, where the owners' liability is limited to the amount they have invested in the company, unlimited liability exposes the owners to potentially losing more than their initial investment. This concept is commonly associated with sole proprietorships and partnerships.Rate this question:
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- 27.
Which of the following is a reason why sole traders are successful?
- A.
They can offer a personalised, specialist service that meets the needs of their customers
- B.
Because unlimited liability is a 'protection' against debt
- C.
Because partnerships mean you can share the workload so you do what you're best at
- D.
Because you benefit from the marketing done by the franchiser
Correct Answer
A. They can offer a personalised, specialist service that meets the needs of their customersExplanation
Sole traders are successful because they have the ability to offer a personalised, specialist service that caters to the specific needs of their customers. This allows them to build strong relationships with their clients and provide tailored solutions, which can lead to customer loyalty and repeat business. Additionally, being a sole trader gives them the freedom to make decisions quickly and adapt to changing customer demands, without the need for extensive approval processes or consensus from partners or franchisers.Rate this question:
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- 28.
What does health insurance pay for?
- A.
Car Repairs
- B.
Medical Bills
- C.
House Repairs
- D.
Debts
Correct Answer
B. Medical BillsExplanation
Health insurance pays for medical bills. This type of insurance is designed to cover the cost of medical expenses, such as doctor visits, hospital stays, surgeries, prescription medications, and other healthcare services. It helps individuals and families manage the financial burden of healthcare by providing coverage for these expenses. Health insurance does not typically cover car repairs, house repairs, or debts.Rate this question:
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- 29.
A(n) _________ is written by an individual to deal with business of a personal nature.
- A.
Memo
- B.
Text Message
- C.
Personal Business Letter
- D.
Email
Correct Answer
C. Personal Business LetterExplanation
A personal business letter is a type of written communication that is used by an individual to address business matters of a personal nature. It is a formal letter that follows specific formatting and is typically used for professional correspondence related to personal business matters such as inquiries, requests, or complaints. This type of letter allows the individual to convey their message in a professional and organized manner, ensuring that the recipient understands the purpose and importance of the communication.Rate this question:
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- 30.
Dear Ms. Marry Mee is an example of
- A.
Salutation
- B.
Complimentary Close
- C.
Name of the Writer
- D.
None of the Above
Correct Answer
A. SalutationExplanation
"Dear Ms. Marry Mee" is an example of a salutation. A salutation is a greeting or an opening phrase used at the beginning of a letter or email to address the recipient. In this case, "Dear" is the salutation and "Ms. Marry Mee" is the name of the recipient being addressed. The salutation is a polite and respectful way to start a communication and set the tone for the rest of the message.Rate this question:
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- 31.
The top margin of a PBL (Personal Business Letter) are
- A.
1
- B.
1.5
- C.
2
- D.
2.5
Correct Answer
C. 2Explanation
The top margin of a Personal Business Letter (PBL) is 2. This means that there should be a 2-inch space between the top edge of the page and the beginning of the text in the letter. This margin is necessary to maintain proper formatting and ensure that the letter looks professional and organized. A larger or smaller margin may not meet the standard requirements for a PBL.Rate this question:
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- 32.
The letter format where all parts are aligned at the left margin is called
- A.
Block
- B.
Mixed modified
- C.
Free Style
- D.
None of the Above
Correct Answer
A. BlockExplanation
The correct answer is Block because in a block letter format, all parts of the letter, including the heading, salutation, body, closing, and signature, are aligned at the left margin. This format is commonly used for formal business letters. The other options, Mixed modified, Free Style, and None of the Above, do not align all parts of the letter at the left margin.Rate this question:
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- 33.
The punctuation style that requires no punctuation to be keyed after the salutation and after the complimentary closing is called
- A.
Closed punctuation
- B.
Open punctuation
- C.
Free Style
- D.
None of the above
Correct Answer
B. Open punctuationExplanation
Open punctuation is a punctuation style that does not require any punctuation to be keyed after the salutation and after the complimentary closing. This means that there is no need to use any punctuation marks such as commas or colons in these specific places. Open punctuation is often used in informal or casual writing styles, where the emphasis is on simplicity and brevity. It allows for a more relaxed and less formal tone in written communication. Closed punctuation, on the other hand, requires punctuation to be used after the salutation and after the complimentary closing. Free Style and None of the above are not correct answers as they do not refer to a specific punctuation style.Rate this question:
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- 34.
The address of the writer of a letter is called the
- A.
Letter address
- B.
Complimentary close
- C.
Name of the writer
- D.
Return address
Correct Answer
D. Return addressExplanation
The address of the writer of a letter is called the return address. This is the address where the recipient can send any correspondence or reply back to the writer. It is typically placed at the top left corner of the envelope or at the beginning of the letter itself. The return address is important for ensuring that any responses or acknowledgments are sent to the correct location.Rate this question:
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- 35.
When writing a personal business letter's salutation (greeting) you should say Dear _____
- A.
Name you use when normally addressing that person
- B.
First name
- C.
Full name
- D.
May use all of the above
Correct Answer
D. May use all of the aboveExplanation
When writing a personal business letter's salutation (greeting), you have the flexibility to use any of the options mentioned - the name you use when normally addressing that person, their first name, or their full name. This allows you to tailor the salutation based on your relationship with the recipient and the level of formality you wish to convey.Rate this question:
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- 36.
What font is used in a personal business letter?
- A.
Calibri
- B.
Arial
- C.
Jokerz
- D.
Times New Roman
Correct Answer
D. Times New RomanExplanation
Times New Roman is the correct answer because it is a common font used in personal business letters. It is a serif font that is easy to read and professional in appearance. It is often preferred for formal documents and correspondence due to its classic and traditional style. Arial and Calibri are also commonly used fonts, but they are more commonly used in informal or casual settings. Jokerz is not a standard font and would not be appropriate for a personal business letter.Rate this question:
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- 37.
What size of font is used in a letter?
- A.
10
- B.
12
- C.
14
- D.
16
Correct Answer
B. 12Explanation
The size of font used in a letter is typically 12. This is a standard font size that is easy to read and widely accepted in professional and formal communication. Using a font size smaller than 12 may make the text difficult to read, while using a larger size may make the letter appear unprofessional or too casual. Therefore, 12 is the most appropriate font size for a letter.Rate this question:
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- 38.
If an employee shows up to work late everyday, do you
- A.
Suspend them for 30 days
- B.
Fire them
- C.
Call on the flying monkeys to beat them up
- D.
Get barney's gansters to do a drive by shooting
Correct Answer
B. Fire themExplanation
The correct answer is to fire them. This is because consistently showing up late to work demonstrates a lack of commitment and responsibility towards their job. It can also disrupt the workflow and productivity of the team. Terminating the employee's contract is a necessary step to maintain a professional and punctual work environment.Rate this question:
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- 39.
Employees need to be
- A.
Bald
- B.
Short
- C.
Bad employees like chris sigmon
- D.
Well trained
- E.
Able to hold breath for 25mins with out dying
- F.
Be a level 30 mage in DnD
- G.
Able to kick a baby 35 yards
Correct Answer
D. Well trainedExplanation
The given answer "well trained" is the most appropriate explanation for the qualities that employees need to have. This implies that employees should possess the necessary skills, knowledge, and experience to perform their job effectively. Being well trained ensures that employees can handle their responsibilities competently and contribute to the success of the organization. It also suggests that employees have received proper training and development opportunities to enhance their professional growth and improve their performance in the workplace.Rate this question:
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- 40.
How would you describe an accommodating (or laissez-faire) manager?
- A.
A manager who isn't involved in making decisions instead leaves it up to other staff, giving their employees autonomy and creative freedom.
- B.
A manager who involves employees in decision making and aims to benefit both the business and personnel as a result of decisions that are made.
- C.
A manager who likes communication with employees to go in both directions: from management to emoployees, and back upward to the manager.
Correct Answer
A. A manager who isn't involved in making decisions instead leaves it up to other staff, giving their employees autonomy and creative freedom.Explanation
An accommodating (or laissez-faire) manager is someone who avoids making decisions and instead delegates the decision-making process to other staff members. This type of manager tends to be hands-off and allows employees to have more autonomy and responsibility in decision making. They may provide guidance and support when needed but ultimately trust their staff to make the necessary decisions. This management style can be beneficial in certain situations where employees are highly skilled and motivated, but it can also lead to a lack of direction and accountability if not properly managed.Rate this question:
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Current Version
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Sep 14, 2023Quiz Edited by
ProProfs Editorial Team -
Oct 23, 2014Quiz Created by
CALFFREY TURNER
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