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