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Ch. 6 And 7 Test Review Part II
Test Description: Review for Ch. 6 and 7 Test for Principles of Business
Instructions: Answer all questions to get your test result.
1) Small businesses have an advantage over big businesses when customers
A
prefer low cost and efficient delivery.
B
All of these
C
are willing to buy standard products.
D
want more individual attention.
2) In which of the following situations should a manager use tactical management?
A
when employees are doing work they enjoy
B
when the work is routine with new challenges
C
when the manager wants to improve group relations
D
when working with part-time or temporary employees
3) This leadership characteristic involves making decisions carefully.
A
judgment
B
understanding
C
initiative
D
communication
4) Ethical behavior consists of
A
Neither
B
Both
C
the actions of individuals and groups.
D
the results of actions.
5) Sources of job satisfaction include
A
ineffective communication.
B
assignments employees do not like.
C
poor working conditions.
D
recognition from supervisors for a job well done.
6) Location is important to small retail businesses because
A
most retailers need good customer traffic to survive.
B
All of these
C
many potential customers will stay away if the business is not easy to find.
D
customers generally do not want to travel long distances to find what they need.
7) Which element of a business plan discusses the entrepreneur’s short- and long-term goals for the business?
A
financial plans
B
description of the business
C
customer analysis
D
description of the competition
8) The staffing management function
A
measures how well an organization is accomplishing its goals.
B
involves getting the day-to-day work of the organization done.
C
includes all of the activities involved in obtaining and compensating employees.
D
means identifying and arranging the resources needed to get the job done.
9) Most of the money needed to start a new business comes from
A
credit given by businesses that sell products and services to the new business.
B
the sale of stock.
C
bank loans.
D
the entrepreneur and his/her family and friends.
10) Which of the following is NOT an important human relations skill needed by leaders and managers?
A
team building
B
self understanding
C
communication
D
high level of education
11) Employees at the first level of management in a business are
A
entrepreneurs.
B
supervisors.
C
executives.
D
mid-managers.
12) Which one of the management functions involves analyzing information, setting goals, and making decisions about what needs to be done?
A
organizing
B
planning
C
implementing
D
controlling
13) The first step in developing a business plan is to
A
gather and review information.
B
develop the “game plan.”
C
write the introductory section.
D
identify alternative plans for production and marketing.
14) All leaders need to be dependable, which means that they
A
follow through on commitments.
B
are able to listen, speak, and write effectively.
C
can look at all sides of an issue before making a decision.
D
respect the feelings and needs of the people they work with.
15) John, a customer service manager, has sent a memo to Brianne, one of his employees. This is an example of
A
oral communication.
B
vertical communication.
C
horizontal communication.
D
external communication.
16) The most successful small business owners
A
understand that a written business plan is a waste of time and money.
B
have never worked for anyone else before.
C
establish good working relationships with professionals such as bankers, lawyers, and accountants.
D
do not need to choose employees carefully because they will be the ones giving orders.
17) In the United States, women own this percentage of small business.
A
25%
B
75%
C
35%
D
50%
18) Executives spend most of their time on
A
organizing and implementing activities.
B
planning and controlling activities.
C
planning and organizing activities.
D
implementing, staffing, and controlling activities.
19) The way a manager treats and involves employees is called
A
influence.
B
entrepreneurship.
C
leadership.
D
management style.
20) Which of the following does NOT describe a typical small business?
A
It serves a small market.
B
The owner is usually the manager.
C
It operates in one or very few locations.
D
It is dominant in its field.
*select an answer for all questions
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