A Business Management Formative Assessment Test Quiz

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| By Keith Lue
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A Business Management Formative Assessment Test Quiz - Quiz

This is a formative assessment of Business Management. This is a no-stress test for students in Management Foundations to see what you know about Business Management. It's okay if you don't know any of the answers, or if you know all of them! Just learning is it's all about.


Questions and Answers
  • 1. 

    There are four main functions of Management. They are:

    • A.

      Leading, Directing, Planning, Controlling

    • B.

      Planning, Controlling, Staffing, Organizing

    • C.

      Planning, Organizing, Controlling, Leading

    Correct Answer
    C. Planning, Organizing, Controlling, Leading
    Explanation
    The correct answer is Planning, Organizing, Controlling, Leading. These four functions of management are essential for the success of any organization. Planning involves setting goals and determining the best course of action to achieve them. Organizing involves arranging resources and tasks to achieve the goals effectively. Controlling involves monitoring progress and making necessary adjustments to ensure that goals are being met. Leading involves guiding and motivating employees to work towards the common goals. These functions work together to ensure efficient and effective management of an organization.

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  • 2. 

    A strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats to a project. It involves specifying the objective of the project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective.

    • A.

      Implementation Strategy

    • B.

      SWOT Strategy

    • C.

      Growth Strategy

    • D.

      Focus Strategy

    Correct Answer
    B. SWOT Strategy
    Explanation
    The SWOT strategy is a strategic planning tool that assesses the strengths, weaknesses, opportunities, and threats of a project. It helps in identifying the internal factors (strengths and weaknesses) and external factors (opportunities and threats) that can impact the achievement of project objectives. By evaluating these factors, organizations can develop strategies to leverage their strengths, address weaknesses, capitalize on opportunities, and mitigate threats. The SWOT strategy provides a comprehensive analysis of the project's environment and helps in making informed decisions to maximize project success.

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  • 3. 

    When organizing a company, you must decide which type of company you want to be.  Which of the following is NOT an option.

    • A.

      Bureaucracy

    • B.

      Sole Proprietorship

    • C.

      Partnership

    • D.

      Corporation

    Correct Answer
    A. Bureaucracy
    Explanation
    The question asks about the type of company that is NOT an option when organizing a company. The correct answer is "Bureaucracy." Bureaucracy refers to a system of government or organization characterized by strict procedures, hierarchy, and a large number of administrative staff. However, when organizing a company, one does not typically choose to be a bureaucracy. Instead, one may choose to be a sole proprietorship, partnership, or corporation, which are common types of business structures.

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  • 4. 

    A group of people working together in a coordinated effort to reach certain goals can best be described as a(n)

    • A.

      Authority

    • B.

      Organization

    • C.

      Special force

    • D.

      Division

    Correct Answer
    B. Organization
    Explanation
    A group of people working together in a coordinated effort to reach certain goals can best be described as an organization. An organization refers to a structured group of individuals who collaborate and allocate tasks to achieve specific objectives. This term encompasses various types of groups, such as businesses, non-profit organizations, government agencies, and more.

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  • 5. 

    In this organization authority originates at the top and moves downward in a line:

    • A.

      Matrix organization

    • B.

      Team organization

    • C.

      Line and staff organization

    • D.

      Line organization

    Correct Answer
    D. Line organization
    Explanation
    A line organization is a hierarchical structure where authority and decision-making flow from the top management downwards in a straight line. This means that each employee reports to only one supervisor, creating a clear chain of command. In this type of organization, there is a clear line of authority, with each level of management having control over their subordinates. This structure is commonly found in small businesses or organizations with a simple and straightforward workflow. It promotes clear communication, quick decision-making, and accountability within the organization.

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  • 6. 

    Leaders who do not listen to other people but make all the decisions themselves are known as

    • A.

      Laissez-faire leaders

    • B.

      Democratic leaders

    • C.

      Autocratic leaders

    • D.

      Coercive leaders

    Correct Answer
    C. Autocratic leaders
    Explanation
    Autocratic leaders are known for their authoritative style of leadership where they make all the decisions themselves without considering the input or opinions of others. They tend to have full control over the decision-making process and often do not value or prioritize the ideas and suggestions of their team members. This style of leadership can result in a lack of collaboration, limited creativity, and a lack of employee empowerment.

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  • 7. 

    The lowest level of management is

    • A.

      Supervisory management

    • B.

      Middle management

    • C.

      Senior management

    • D.

      Upper management

    Correct Answer
    A. Supervisory management
    Explanation
    Supervisory management refers to the lowest level of management within an organization. This level of management is responsible for overseeing the work of non-managerial employees and ensuring that tasks are completed efficiently and effectively. Supervisory managers typically have direct contact with frontline employees and are involved in day-to-day operations. They play a crucial role in implementing the organization's policies and procedures, providing guidance and support to employees, and resolving any issues or conflicts that may arise. Supervisory management is essential for maintaining productivity and ensuring smooth operations at the operational level.

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  • 8. 

    A manager in this role decides how many and what kind of people a business needs to meet its goals, and then recruits, selects, and trains the right people

    • A.

      Planning

    • B.

      Staffing

    • C.

      Leading

    • D.

      Organizing

    Correct Answer
    B. Staffing
    Explanation
    The correct answer is staffing. In this role, the manager is responsible for determining the number and type of employees needed for the business to achieve its objectives. They then proceed to recruit, select, and train individuals who are suitable for these positions. Staffing involves the process of identifying and hiring the right people for the organization, ensuring that it has the necessary human resources to carry out its operations effectively.

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  • 9. 

    An organization that has many levels with small spans of management is called

    • A.

      Tall structure

    • B.

      Flat structure

    • C.

      Short structure

    • D.

      Team structure

    Correct Answer
    A. Tall structure
    Explanation
    A tall structure refers to an organization that has many levels of management with a small span of control. This means that there are multiple layers of hierarchy, with each manager overseeing a small number of subordinates. This type of structure is often found in large organizations where there is a need for more control and supervision. The tall structure allows for clear lines of authority and communication, but it can also result in slower decision-making and less flexibility compared to a flatter structure.

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  • 10. 

    The idea that personality, social, or even physical traits determine good leadership is associated with

    • A.

      Reinforcement theory

    • B.

      Path-goal theory

    • C.

      Leadership theory

    • D.

      Trait theory

    Correct Answer
    D. Trait theory
    Explanation
    Trait theory suggests that good leadership is determined by personality, social, or physical traits. This theory asserts that certain inherent qualities, such as confidence, intelligence, and charisma, make individuals more likely to be effective leaders. According to trait theory, leadership is not solely based on skills or situational factors, but rather on the innate characteristics of the leader.

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  • 11. 

    The point at which increasing controls no longer increase performance or reduce costs is determined through

    • A.

      Economic behaviors

    • B.

      Setting standards

    • C.

      Cost-benefit analysis

    • D.

      Analyzing behavior

    Correct Answer
    C. Cost-benefit analysis
    Explanation
    Cost-benefit analysis is a method used to determine the point at which increasing controls no longer increase performance or reduce costs. This analysis involves comparing the costs of implementing additional controls with the benefits or improvements achieved. Once the costs outweigh the benefits, it indicates that further controls would not be cost-effective. Therefore, cost-benefit analysis helps in identifying the optimal level of controls that maximizes performance and cost-effectiveness.

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  • 12. 

    Which of the following is owned by one person?

    • A.

      Parntership

    • B.

      Sole Proprietorship

    • C.

      Corporation

    • D.

      LLC

    Correct Answer
    B. Sole Proprietorship
    Explanation
    A sole proprietorship is a type of business structure owned and operated by a single individual. In this form of ownership, the individual is solely responsible for all aspects of the business, including profits, losses, and liabilities. This means that the owner has complete control over decision-making and retains all profits generated by the business. Unlike partnerships, corporations, or LLCs, which involve multiple owners or shareholders, a sole proprietorship is owned by only one person.

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  • 13. 

    Business Management Theory that assumes people are basically lazy and will avoid working if they can

    • A.

      Theory X

    • B.

      Theory Y

    • C.

      Theory Z

    • D.

      TQM

    Correct Answer
    A. Theory X
    Explanation
    Theory X is a management theory that assumes people are inherently lazy and will avoid work if given the opportunity. This theory suggests that individuals need to be closely supervised and controlled in order to ensure productivity. Managers who adhere to Theory X believe that employees lack motivation and need to be coerced or rewarded in order to perform their duties. This theory is based on a negative view of human nature and assumes that individuals are primarily driven by extrinsic factors such as money or fear of punishment.

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  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 18, 2019
    Quiz Created by
    Keith Lue
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