Business Organization And Management Knowledge Test

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1/55 Questions

_____ is a general term, which includes all profit seeking activities of enterprises that provide goods and services necessary to an economic system.
- Business
- Profit
- Enterprise
- Entrepreneur

About This Quiz

This is the prelim exam of Management 1 - Business Organization and Management

Business Organization And Management Knowledge Test - Quiz

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2.

_____ is the money that remains after a firm deducts its expenses related to producing and marketing goods and services
- Business
- Profit
- Capitalism
Correct Answer

A. Profit

Explanation

Profit is the money that remains after a firm deducts its expenses related to producing and marketing goods and services. It is the financial gain that a company earns from its business activities. Profit is an important measure of a company's success and is used to determine its ability to generate revenue and cover expenses. It is also a key factor in attracting investors and ensuring the long-term sustainability of the business.

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3.

What system that individuals are vested with the right to operate enterprise for private gain?
- Business
- Private Enterprise
- Entrepreneurship
- Capitalism
Correct Answer

A. Private Enterprise

Explanation

Private enterprise refers to a system where individuals have the right to operate businesses for their own profit. In this system, individuals are free to start and manage their own businesses, make decisions about production and pricing, and compete with other businesses in the market. Private enterprise is a key feature of capitalism, where the economy is driven by private ownership and profit motive. It allows individuals to take risks, innovate, and create wealth for themselves and the society as a whole.

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4.

_____ refers to that economic system in which the means of production, consisting of land and tangible goods are owned privately.
- Capitalism
- Communism
- Socialism
- Entrepreneurship
Correct Answer

A. Capitalism

Explanation

Capitalism refers to an economic system where the means of production, such as land and tangible goods, are owned privately. In a capitalist system, individuals and businesses have the freedom to own and control their own property and resources, and engage in voluntary transactions in the market. This system allows for competition, profit-making, and individual economic freedom. It is characterized by a decentralized decision-making process and the pursuit of self-interest.

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5.

Under ______, all economic resources are owned by the state.
- Socialism
- Capitalism
- Communism
- Entrepreneurship
Correct Answer

A. Communism

Explanation

Communism is a political and economic ideology where all economic resources are owned and controlled by the state. In a communist society, there is no private ownership of property and the means of production are collectively owned. This means that the state has control over the distribution and allocation of resources, aiming for the equal distribution of wealth among its citizens. In contrast to capitalism, where resources are privately owned and controlled by individuals or corporations, communism emphasizes the collective ownership and control of resources by the state.

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6.

_____ is a type of system that the state only owns essential industries, but all other businesses are open for private persons.
- Communism
- Capitalism
- Entrepreneurship
- Socialism
Correct Answer

A. Socialism

Explanation

Socialism is a type of system where the state only owns essential industries, but all other businesses are open for private persons. In socialism, the government plays a significant role in redistributing wealth and ensuring social equality. While essential industries like healthcare, education, and transportation are owned and controlled by the state, other businesses are allowed to be privately owned and operated. This system aims to strike a balance between state control and individual freedom, promoting social welfare and reducing income inequality.

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7.

______ is a systematic process of planning, organizing, staffing and controlling of activities in an organization
- Management
- Organization
- Staffing
Correct Answer

A. Management

Explanation

Management is the correct answer because it involves the systematic process of planning, organizing, staffing, and controlling activities within an organization. This process helps to ensure that resources are effectively utilized, goals are achieved, and the organization operates efficiently. Management also involves making decisions, setting objectives, and coordinating the efforts of individuals and teams to achieve the desired outcomes.

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8.

This means that breaking the job down into specialized tasks to increase productivity.
- Authority
- Division of Labor
- Discipline
- Unity of command
Correct Answer

A. Division of Labor

Explanation

Division of labor refers to the practice of breaking down a job into smaller, specialized tasks in order to increase productivity. By assigning specific tasks to different individuals who are skilled in those areas, each person can focus on their specific task and become more proficient at it. This allows for greater efficiency and effectiveness in completing the job as a whole.

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9.

The right given to a person in position to give orders plus the power to exact obedience is refereed to as __________.
- Authority
- Division of Labor
- Discipline
- Unity of command
Correct Answer

A. Authority

Explanation

Authority refers to the right given to a person in a position of power to give orders and expect obedience. This means that the person has the power and control to make decisions, delegate tasks, and enforce rules within an organization or a group. Authority is essential for maintaining order, ensuring efficiency, and achieving goals in a structured and hierarchical environment.

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10.

This provides uniform application of behavior to certain activities the outcome of which is readily predicted.
- Authority
- Division of Labor
- Discipline
- Unity of command
Correct Answer

A. Discipline

Explanation

Discipline refers to the adherence to rules, regulations, and procedures in order to maintain order and control within an organization. It ensures that individuals follow a set of guidelines and behave in a consistent and predictable manner. By enforcing discipline, organizations can ensure that activities are carried out in a uniform and predictable manner, leading to expected outcomes. This helps in maintaining consistency, efficiency, and productivity within the organization.

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11.

This means that each employee must have only one supervisor.
- Authority
- Division of Labor
- Discipline
- Unity of command
Correct Answer

A. Unity of command

Explanation

Unity of command means that each employee must have only one supervisor. This ensures clear communication, avoids confusion, and promotes accountability within the organization. When employees report to multiple supervisors, it can lead to conflicting instructions and a lack of direction. By having a single supervisor, employees know who to report to, who is responsible for their performance, and who they should seek guidance from. This principle helps to streamline decision-making processes and maintain a hierarchical structure within the organization.

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12.

This means that the efforts of everyone in the organization must be coordinated and focused in the same direction
- Unity of direction
- Remuneration
- Centralization
- Scalar chain
Correct Answer

A. Unity of direction

Explanation

Unity of direction refers to the principle that all individuals in an organization should work towards a common goal or objective. It emphasizes the need for coordination and alignment of efforts to ensure that everyone is moving in the same direction. This principle helps to avoid conflicting goals and promotes synergy among employees, leading to increased efficiency and effectiveness in achieving organizational objectives.

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13.

Employees should be paid fairly in accordance with their contribution to the organizational effort
- Unity of direction
- Centralization
- Scalar chain
- Remuneration
Correct Answer

A. Remuneration

Explanation

The concept of remuneration suggests that employees should be paid fairly based on their contribution to the organizational effort. This means that individuals who contribute more to the success of the organization should receive higher compensation compared to those who contribute less. Fair remuneration is important as it helps to motivate employees, increase job satisfaction, and retain top talent within the organization. It also promotes a sense of fairness and equity among employees, which can enhance overall organizational performance.

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14.

Power and authority must come from top to bottom.
- Unity of direction
- Centralization
- Scalar chain
- Remuneration
Correct Answer

A. Centralization

Explanation

Centralization refers to the concentration of decision-making authority at the top levels of an organization. It means that power and authority flow from top management down to lower levels. In a centralized structure, key decisions are made by a few individuals at the top, who have the most power and control. This ensures consistency in decision-making and allows for better coordination and control. Centralization can be beneficial in certain situations where there is a need for strong leadership and clear direction.

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15.

This means that subordinates should observe chain of command unless authorized by their respective superiors to communicate with each other.
- Unity of direction
- Centralization
- Scalar chain
- Remuneration
Correct Answer

A. Scalar chain

Explanation

The concept of scalar chain refers to the hierarchical structure within an organization, where authority and communication flow from top to bottom. In this context, subordinates are expected to follow the chain of command and communicate with each other only if authorized by their superiors. This ensures a clear and efficient flow of information and decision-making within the organization. Scalar chain helps to maintain order, avoid confusion, and ensure that tasks are carried out in a coordinated manner.

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16.

This means that human and non-human resources should be in their proper places.
- Order
- Equity
- Stability of tenure
- Initiative
Correct Answer

A. Order

Explanation

The concept of "order" refers to the organization and arrangement of resources, both human and non-human, in their appropriate places. This ensures that everything is in its designated position and operates efficiently. By maintaining order, tasks can be completed smoothly, and resources can be utilized effectively. It also helps in avoiding confusion and chaos, leading to a more productive and structured work environment.

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17.

This is the result of kindliness and justice and is a principle to guide management-employee relations.
- Initiative
- Stability of tenure
- Equity
- Order
Correct Answer

A. Equity

Explanation

Equity refers to fairness and impartiality in management-employee relations. It means treating all employees fairly and justly, without any discrimination or favoritism. This principle ensures that employees are given equal opportunities, rewards, and benefits based on their abilities and performance. By promoting equity, organizations can create a positive work environment, enhance employee morale, and foster trust and loyalty among employees. It also helps in reducing conflicts and grievances within the workplace, leading to better productivity and employee satisfaction.

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1
18.

Companies should have effective manpower planning and implementation to prevent high employee turnover.
- Order
- Equity
- Stability of tenure
- Initiative
Correct Answer

A. Stability of tenure

Explanation

Stability of tenure refers to the practice of providing job security and long-term employment to employees. This means that companies should aim to create a stable work environment where employees feel secure in their positions and are less likely to leave the company. By prioritizing stability of tenure, companies can reduce employee turnover rates and ensure continuity in their workforce. This can lead to various benefits such as increased productivity, improved morale, and reduced recruitment and training costs.

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19.

Management should encourage employees to act on their own wish when confronted with an opportunity to solve a problem.
- Initiative
- Equity
- Esprit de corps
- Order
Correct Answer

A. Initiative

Explanation

Management should encourage employees to act on their own wish when confronted with an opportunity to solve a problem. This means that employees should be given the freedom and autonomy to take the initiative and make decisions without constant supervision or micromanagement. By encouraging initiative, management empowers employees to think creatively, take risks, and find innovative solutions to problems. This not only increases employee engagement and motivation, but also fosters a culture of continuous improvement and growth within the organization.

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1
20.

This means that managers should emphasize teamwork by building harmony and a sense of unity among employees.
- Initiative
- Equity
- Order
- Esprit de corps
Correct Answer

A. Order

Explanation

This means that managers should prioritize and maintain a structured and organized work environment. They should establish clear roles and responsibilities, set guidelines and procedures, and ensure that tasks are carried out efficiently and effectively. By promoting order, managers can enhance productivity and minimize confusion or conflicts within the team.

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21.

An entity comprising of group of people, established to accomplish certain goals is known as ______.
- Organization
- Enterprise
- Business
- Commerce
Correct Answer

A. Organization

Explanation

An entity comprising of group of people, established to accomplish certain goals is known as an organization. This term refers to a structured group of individuals who work together towards a common purpose or objective. Organizations can be for-profit or non-profit, and they can exist in various sectors such as business, government, education, healthcare, etc. The concept of an organization emphasizes the importance of coordination, collaboration, and division of labor among its members in order to achieve desired outcomes.

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1
22.

When properly directed, persons working in coordination with others will produce better outputs than when they work independently.
- Coordination of effort
- Common goal or purpose
- Division of labor
- Hierarchy of authority
Correct Answer

A. Coordination of effort

Explanation

Coordination of effort refers to the act of organizing and aligning the actions and tasks of individuals towards a common goal or purpose. When individuals work together in a coordinated manner, they can combine their skills and expertise, share information and resources, and avoid duplication of efforts. This leads to improved efficiency, productivity, and overall better outputs compared to when individuals work independently without any coordination.

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23.

In order for the employees work with proper direction, they must be provided with a common vision and mission.
- Division of labor
- Hierarchy of authority
- Coordination of effort
- Common goal or purpose
Correct Answer

A. Common goal or purpose

Explanation

To ensure that employees work efficiently and effectively, it is essential to provide them with a common goal or purpose. When employees have a clear understanding of the overall vision and mission of the organization, they are more likely to align their efforts towards achieving it. This common goal or purpose helps in fostering teamwork, collaboration, and unity among employees. It also helps in guiding their decision-making and prioritizing their tasks. Having a common goal or purpose promotes a sense of belonging and motivation among employees, ultimately leading to improved performance and success for the organization.

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24.

A total job is divided into manageable parts, this characteristics is referred to as _________.
- Hierarchy of authority
- Coordination of effort
- Division of labor
- Common goal or purpose
Correct Answer

A. Division of labor

Explanation

Division of labor refers to the practice of breaking down a complex task or job into smaller, more manageable parts. Each part is then assigned to different individuals or groups who specialize in that particular area. This allows for increased efficiency and productivity as each person can focus on their specific task, leading to a smoother workflow and better overall results.

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25.

When individuals work collectively, someone must be provided with authority to make sure that assigned goals are achieved in the desired manner.
- Coordination of effort
- Hierarchy of authority
- Division of labor
- Common goal or purpose
Correct Answer

A. Hierarchy of authority

Explanation

Hierarchy of authority is the correct answer because when individuals work collectively, there needs to be a clear chain of command and a system of authority in place to ensure that tasks are assigned, decisions are made, and goals are achieved in an organized and efficient manner. The hierarchy of authority establishes a clear structure and defines the roles and responsibilities of each individual, allowing for effective coordination and direction of efforts towards the common goal or purpose.

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26.

The study of morals and moral choices of human beings is known as _______.
- Logic
- Ethics
- Thelogy
- Philosophy
Correct Answer

A. Ethics

Explanation

Ethics is the study of morals and moral choices of human beings. It involves examining and evaluating what is considered right and wrong, and how individuals should behave in various situations. Ethics helps us understand the principles and values that guide human behavior, and provides a framework for making moral decisions. It explores topics such as justice, fairness, honesty, and responsibility. By studying ethics, we can gain insights into ethical dilemmas and develop a better understanding of how to navigate complex moral issues.

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27.

The moral principles defined right and wrong behavior of business persons and their agents are called ______.
- Business Ethics
- Business Responsibility
- Social Responsibility
- Social Morality
Correct Answer

A. Business Ethics

Explanation

Business ethics refers to the moral principles that guide the behavior and decision-making of individuals and organizations in the business world. It involves the application of ethical principles and values to various business activities, such as marketing, finance, and human resources. This helps ensure that businesses operate in an ethical and responsible manner, considering the impact of their actions on stakeholders, society, and the environment. Business ethics helps establish standards for right and wrong behavior, promoting fairness, integrity, and accountability in the business world.

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28.

A person who is knowledgeable about ethics, emnployed by the company and acts as the company’s conscience is called ______.
- Company priest
- Psychologist
- Ethical advocate
- Ethics committee
Correct Answer

A. Ethical advocate

Explanation

An ethical advocate is a person who is knowledgeable about ethics, employed by the company, and acts as the company's conscience. This individual is responsible for promoting ethical behavior within the organization, providing guidance on moral dilemmas, and ensuring that the company operates in an ethical manner. They serve as a voice for ethical considerations and help to create a culture of integrity and responsibility within the company.

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29.

Documents that specify practices that are unethical and which the company expressly forbids is known as ____.
- Mission
- Vision
- Code of ethics
- Code of conduct
Correct Answer

A. Code of ethics

Explanation

A code of ethics is a set of guidelines and principles that outline the expected behavior and conduct of individuals within an organization. It specifies practices that are considered unethical and explicitly prohibits them. A code of ethics helps to establish a moral framework for decision-making and ensures that employees understand and adhere to the company's values and standards. It serves as a reference point for employees to ensure they act in an ethical manner and maintain the company's reputation.

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30.

Jun Lozada is helpless that he cannot anymore hold on to his conscience about the ZTE scandals the government is into. He divulges all of these through the media. This principle of ethics is referred to as ________.
- Social Responsibility
- Whistle blowing
- Morality
- Ethical conduct
Correct Answer

A. Whistle blowing

Explanation

Whistle blowing refers to the act of exposing wrongdoing, misconduct, or illegal activities within an organization or government. In this case, Jun Lozada is revealing the ZTE scandals through the media, which aligns with the concept of whistle blowing. Whistle blowers often face personal and professional risks, but they choose to prioritize their moral and ethical duty to expose the truth and hold those responsible accountable.

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31.

The company allows a condition or potential problems to go unresolved until the public finds out about it.
- Reaction strategy
- Defense strategy
- Accommodation strategy
- Proactive strategy
Correct Answer

A. Reaction strategy

Explanation

The given correct answer is "Reaction strategy". This strategy suggests that the company allows a condition or potential problems to go unresolved until the public finds out about it. This means that the company is not proactive in addressing issues or potential problems, but instead reacts only when they become public knowledge. This approach can be risky as it may damage the company's reputation and credibility.

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32.

This strategy is used by company to try to minimize or avoid additional obligations.
- Accommodation strategy
- Proactive strategy
- Reaction strategy
- Defense strategy
Correct Answer

A. Defense strategy

Explanation

A defense strategy is a strategy used by a company to minimize or avoid additional obligations. This strategy involves taking proactive measures to protect the company's interests and assets, such as implementing legal safeguards, negotiating favorable contracts, and actively defending against potential threats or liabilities. By employing a defense strategy, the company aims to mitigate risks and prevent any unnecessary financial or legal burdens.

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33.

This is done when special interest groups are taking the side of the opposition, or when the business perceives that if it does not react, a law will be passed to ensure compliance.
- Reaction strategy
- Defense strategy
- Accommodation strategy
- Proactive strategy
Correct Answer

A. Accommodation strategy

Explanation

In this scenario, the business chooses the accommodation strategy because it perceives that if it does not react, a law will be passed to ensure compliance. This strategy involves making concessions and adjustments to meet the demands of special interest groups or to comply with potential regulations. By accommodating the concerns of these groups or preemptively addressing potential laws, the business aims to maintain a positive relationship with stakeholders and avoid any negative consequences that could arise from non-compliance.

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34.

Companies sponsor cultural shows free to the public, scholarship to financially handicapped but deserving students and providing support for the environment. This strategy is known as _____.
- Accommodation strategy
- Proactive strategy
- Reaction strategy
- Defense strategy
Correct Answer

A. Proactive strategy

Explanation

The given answer, "Proactive strategy," is correct because it refers to a proactive approach taken by companies to engage in activities that benefit society and the environment. By sponsoring cultural shows, providing scholarships to deserving students, and supporting the environment, companies are taking proactive steps to make a positive impact and contribute to the well-being of the community. This strategy involves taking initiative and being proactive rather than simply reacting to external factors or defending against potential issues.

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35.

____ refers to the systematic examination of all the activities achieving social goals such as employment of the handicapped, adoption of the anti-pollution campaign and other issues.
- Social Responsibility
- Social Audit
- Social Awareness
- Social Ethics
Correct Answer

A. Social Audit

Explanation

Social audit refers to the systematic examination of all the activities achieving social goals such as employment of the handicapped, adoption of the anti-pollution campaign, and other issues. It involves assessing an organization's performance in terms of its social and environmental impact. Social audit helps to ensure that organizations are accountable for their actions and are actively working towards fulfilling their social responsibilities. It provides a comprehensive evaluation of an organization's efforts in meeting social goals and helps in identifying areas for improvement.

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36.

_____ is a type of business entity that is owned and operated by a single person.
- Partnership
- Corporation
- Sole Proprietorship
- Cooperatives
Correct Answer

A. Sole Proprietorship

Explanation

A sole proprietorship is a type of business entity that is owned and operated by a single person. In this type of business, the owner has complete control and responsibility for all aspects of the business. They are personally liable for any debts or legal obligations of the business. This form of business is often chosen by individuals who want to have full control and flexibility in running their business.

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37.

Which of the following advantages are common in Sole Proprietorship and Partnership?
- Ease of formation
- Unlimited Liability
- Limited life
- Pooling of knowledge and skills
Correct Answer

A. Ease of formation

Explanation

Both sole proprietorship and partnership have the advantage of ease of formation. This means that they are relatively simple and inexpensive to set up compared to other business structures. In both cases, there are minimal legal requirements and paperwork involved in establishing the business. This advantage allows individuals to quickly start their own business without facing significant barriers or complications.

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38.

_____ is an organization composed of individuals of businesses that have banded together to reap the benefits of belonging to a large organization.
- Partnership
- Corporation
- Sole Proprietorship
- Cooperatives
Correct Answer

A. Cooperatives

Explanation

A cooperative is an organization composed of individuals or businesses that have come together to benefit from being part of a larger organization. In a cooperative, members work together to achieve common goals and share resources, such as purchasing power, marketing efforts, or distribution networks. By pooling their resources and working collectively, members of a cooperative can enjoy the advantages of scale and leverage that would be difficult to achieve individually. This allows them to access larger markets, negotiate better deals with suppliers, and increase their overall competitiveness.

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39.

It is defined as the process of defining the problem and identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.
- Decision making
- Analyzing
- Diagnosing
- Articulating
Correct Answer

A. Decision making

Explanation

Decision making is the correct answer because it involves the process of defining a problem, considering various alternatives, and selecting the best course of action based on the situation. This process requires analyzing the situation, diagnosing the problem, and articulating the possible solutions. Decision making is a crucial skill in problem-solving and is necessary for effective problem resolution.

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40.

If the manager wants to make an intelligent decision, this first move must be to identify the problem. This process is known as _______.
- Analyzing the environment
- Diagnosing the problem
- Articulating the problem
- Develop viable alternatives
Correct Answer

A. Diagnosing the problem

Explanation

To make an intelligent decision, the manager needs to first identify the problem. This involves analyzing the situation, understanding the root cause of the issue, and determining what needs to be addressed. By diagnosing the problem, the manager can gain a clear understanding of the situation and develop effective solutions.

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41.

Understanding the environment where the organization situated plays a very significant role in the success or failure of such an organization.
- Analyzing the environment
- Diagnosing the problem
- Articulating the problem
- Develop viable alternatives
Correct Answer

A. Analyzing the environment

Explanation

Analyzing the environment is the correct answer because understanding the environment in which an organization operates is crucial for its success or failure. By analyzing the environment, the organization can identify potential opportunities and threats, assess the market conditions, competition, and customer needs. This analysis helps in making informed decisions, developing effective strategies, and adapting to changes in the external factors that may impact the organization's performance.

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42.

A problem is an opportunity to improve one’s standing. If one wants to benefit from solving a problem or exploiting an opportunity, a solution that will effectively address the situation is required. This decision making process is known as
- Analyzing the environment
- Diagnosing the problem
- Articulating the problem
- Develop viable alternatives
Correct Answer

A. Articulating the problem

Explanation

The given correct answer is "Articulating the problem". Articulating the problem refers to clearly defining and expressing the problem or opportunity at hand. It involves identifying and describing the specific issue or goal that needs to be addressed. By articulating the problem, one can gain a better understanding of the situation and effectively communicate it to others. This step is crucial in the decision-making process as it sets the foundation for developing viable alternatives and finding an effective solution.

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43.

Oftentimes, a problem may be solved by any of the solutions offered, by creating alternative solutions that may be considered by the management. This decision making process is known as ______.
- Develop viable alternatives
- Evaluate alternatives
- Make a choice
- Implement Decision
Correct Answer

A. Develop viable alternatives

Explanation

The decision making process mentioned in the question is known as "Develop viable alternatives". This involves creating different options or solutions that can be considered by the management to solve a problem. It is an important step in the decision making process as it allows for a thorough evaluation of different possibilities before making a final choice.

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44.

After determining the viability of the alternatives and a revised list is made, an evaluation of the remaining alternatives is necessary. This decision making process is referred to as _______.
- Develop viable alternatives
- Make a choice
- Evaluate alternatives
- Implement Decision
Correct Answer

A. Evaluate alternatives

Explanation

Once the viability of the alternatives has been determined and a revised list is made, the next step in the decision-making process is to evaluate the remaining alternatives. This involves assessing the pros and cons of each option and considering factors such as feasibility, cost, and potential outcomes. By evaluating the alternatives, one can make a more informed decision based on the available information.

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45.

After the alternatives have been evaluated, the decision-maker must now be ready to make a choice. What decision making process is this?
- Implement decision
- Develop alternative
- Evaluate alternatives
- Make a choice
Correct Answer

A. Make a choice

Explanation

This question is asking about the specific step in the decision-making process that involves making a choice. After evaluating the alternatives, the decision-maker is now ready to make a decision and choose the best option. This step is referred to as "make a choice" in the given options.

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46.

The carrying out of the decision so that the objectives sought will be achieved is known as ___________.
- Develop alternative
- Evaluation And adapt decision results
- Make a choice
- Implement decision
Correct Answer

A. Implement decision

Explanation

Implementing a decision refers to the process of taking action and carrying out the chosen decision in order to achieve the desired objectives. It involves putting the decision into practice, allocating resources, assigning tasks, and monitoring progress to ensure that the intended outcomes are realized. Implementation is a crucial step in the decision-making process as it transforms the decision from a plan into action, enabling the organization or individual to achieve their goals.

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47.

In implementing the decision, the results expected may or may not happen. It is, therefore, important for the manager to use control and feedback mechanisms to ensure results and to provide information for future decisions. This decision making process is known as _______.
- Develop alternative
- Evaluation and adapt decision results
- Make a choice
- Implement decision
Correct Answer

A. Evaluation and adapt decision results

Explanation

The correct answer is "Evaluation and adapt decision results" because it refers to the process of assessing the outcomes of a decision and making adjustments or adaptations based on the results. This step involves monitoring and controlling the implementation of the decision, gathering feedback, and making necessary modifications to ensure that the desired outcomes are achieved. By evaluating and adapting decision results, managers can learn from their experiences and improve future decision-making processes.

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48.

Which of the following is the best reason why sole proprietorship has the advantages of keeping his business intentions secret from competitors?
- Its not required by law to divulge any business trends in sole proprietorship
- It’s the nature of business that draws secrecy in sole proprietorship
- Sole proprietorship has no business partners
- None of the above
Correct Answer

A. Its not required by law to divulge any business trends in sole proprietorship

Explanation

The best reason why sole proprietorship has the advantage of keeping his business intentions secret from competitors is that it is not required by law to divulge any business trends. This means that the sole proprietor is not obligated to share information about their business operations, strategies, or future plans with anyone, including competitors. This allows them to maintain a competitive edge and protect their business interests without the risk of their competitors gaining insight into their intentions.

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49.

Which of the following is the best reason why sole proprietorships have limited life?
- Existence depends on the physical well being of the owner
- Difficulty in raising capital
- Owner’s ability to raise capital
- None of the above
Correct Answer

A. Existence depends on the physical well being of the owner

Explanation

Sole proprietorships have limited life because their existence depends on the physical well-being of the owner. Unlike corporations, which can continue to exist even after the death or incapacity of the owner, sole proprietorships cease to exist if the owner is unable to continue running the business. This is because the owner is the sole decision-maker and responsible for all aspects of the business. If the owner becomes physically unable to operate the business, there is no one else to take over and keep it running.

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Quiz Edited by
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Quiz Created by
Anthzila

Business Organization And Management Knowledge Test

_____ is a general term, which includes all profit seeking activities of enterprises that provide goods and services necessary to an economic system.

Quiz Preview

_____ is the money that remains after a firm deducts its expenses related to producing and marketing goods and services

What system that individuals are vested with the right to operate enterprise for private gain?

_____ refers to that economic system in which the means of production, consisting of land and tangible goods are owned privately.

Under ______, all economic resources are owned by the state.

_____ is a type of system that the state only owns essential industries, but all other businesses are open for private persons.

______ is a systematic process of planning, organizing, staffing and controlling of activities in an organization

This means that breaking the job down into specialized tasks to increase productivity.

The right given to a person in position to give orders plus the power to exact obedience is refereed to as __________.

This provides uniform application of behavior to certain activities the outcome of which is readily predicted.

This means that each employee must have only one supervisor.

This means that the efforts of everyone in the organization must be coordinated and focused in the same direction

Employees should be paid fairly in accordance with their contribution to the organizational effort

Power and authority must come from top to bottom.

This means that subordinates should observe chain of command unless authorized by their respective superiors to communicate with each other.

This means that human and non-human resources should be in their proper places.

This is the result of kindliness and justice and is a principle to guide management-employee relations.

Companies should have effective manpower planning and implementation to prevent high employee turnover.

Management should encourage employees to act on their own wish when confronted with an opportunity to solve a problem.

This means that managers should emphasize teamwork by building harmony and a sense of unity among employees.

An entity comprising of group of people, established to accomplish certain goals is known as ______.

When properly directed, persons working in coordination with others will produce better outputs than when they work independently.

In order for the employees work with proper direction, they must be provided with a common vision and mission.

A total job is divided into manageable parts, this characteristics is referred to as _________.

When individuals work collectively, someone must be provided with authority to make sure that assigned goals are achieved in the desired manner.

The study of morals and moral choices of human beings is known as _______.

The moral principles defined right and wrong behavior of business persons and their agents are called ______.

A person who is knowledgeable about ethics, emnployed by the company and acts as the company’s conscience is called ______.

Documents that specify practices that are unethical and which the company expressly forbids is known as ____.

Jun Lozada is helpless that he cannot anymore hold on to his conscience about the ZTE scandals the government is into. He divulges all of these through the media. This principle of ethics is referred to as ________.

The company allows a condition or potential problems to go unresolved until the public finds out about it.

This strategy is used by company to try to minimize or avoid additional obligations.

This is done when special interest groups are taking the side of the opposition, or when the business perceives that if it does not react, a law will be passed to ensure compliance.

Companies sponsor cultural shows free to the public, scholarship to financially handicapped but deserving students and providing support for the environment. This strategy is known as _____.

____ refers to the systematic examination of all the activities achieving social goals such as employment of the handicapped, adoption of the anti-pollution campaign and other issues.

_____ is a type of business entity that is owned and operated by a single person.

Which of the following advantages are common in Sole Proprietorship and Partnership?

_____ is an organization composed of individuals of businesses that have banded together to reap the benefits of belonging to a large organization.

It is defined as the process of defining the problem and identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.

If the manager wants to make an intelligent decision, this first move must be to identify the problem. This process is known as _______.

Understanding the environment where the organization situated plays a very significant role in the success or failure of such an organization.

A problem is an opportunity to improve one’s standing. If one wants to benefit from solving a problem or exploiting an opportunity, a solution that will effectively address the situation is required. This decision making process is known as

Oftentimes, a problem may be solved by any of the solutions offered, by creating alternative solutions that may be considered by the management. This decision making process is known as ______.

After determining the viability of the alternatives and a revised list is made, an evaluation of the remaining alternatives is necessary. This decision making process is referred to as _______.

After the alternatives have been evaluated, the decision-maker must now be ready to make a choice. What decision making process is this?

The carrying out of the decision so that the objectives sought will be achieved is known as ___________.

In implementing the decision, the results expected may or may not happen. It is, therefore, important for the manager to use control and feedback mechanisms to ensure results and to provide information for future decisions. This decision making process is known as _______.

Which of the following is the best reason why sole proprietorship has the advantages of keeping his business intentions secret from competitors?

Which of the following is the best reason why sole proprietorships have limited life?