Chapter 7: Business Management
Chapter Practice Review Quiz
1..Which kind of company would most likely hire a 7. In a large company, to whom would an professional manager? operational manager generally report? A) a small farm A) a top-level manager
B) a sole proprietorship B) a middle manager
C) a partnership C) the CEO
D) a corporation D) a vice-president
2. Which managerial function comes first when 8. Which management task is part of the executing business goals? controlling function?
A) controlling A) monitoring customer satisfaction B) leading B) hiring employees
C) organizing C) planning projects
D) planning D) showing respect and loyalty
3. Which is NOT an aspect of the organizing 9. What is a disadvantage to the line authority function? structure of management?
A) creating strategies A) The company may become overstaffed. B) hiring employees B) Line authority can be costly to the company. C) organizing work processes C) Managers sometimes lack the specialized help
they need. D) making sure employees have tools they need
D) Authority is clearly defined. 4. What does an organizational chart show?
10. What is true of centralized organization? A) how a certain project is to be accomplished
B) the daily operations of a business A) It can be very confusing. C) who is in charge of whom in a firm B) It gives all authority to top-level management. D) the direction and vision of a company C) Many people are available to advise those in
5. Which deals with non-management workers D) Too many people are often in charge. most often?
11. Which term refers to management A) top-level management
responsibility divided among managers? B) middle-management
C) CEO A) departmentalization
D) operational management B) decentralization
C) informal structure
6. Which is NOT part of the leadership function D) employee input
for a manager in charge of a project?
A) resolving conflicts between workers
B) hiring employees
C) overseeing time management
D) providing feedback on others' work
12. How can a business be run informally? A) Management can be departmentalized. B) Employees can share duties.
C) Authority can be split between managers. D) A company can have a big marketing department
13. At what level do most managers begin their careers?
A) top-level management
B) middle management
C) operational management
D) entry-level position
14. Which is NOT true of a manager's job? A) He or she has to be able to handle several tasks at one time.
B) He or she must be a good problem-solver. C) He or she should know something about the technical part of the company.
D) He or she should spends most of the time doing paperwork.
15. Which is a disadvantage to being a manager? A) earning less money than a regular employee B) having less control over your time
C) getting blamed when things go wrong D) getting less respect than others
Feedback: If a company is small, employees Answer Keys:
can share duties. 1. D
Feedback: A corporation employs lots of 13. D
people, so it would need a professional Feedback: Most managers do not begin manager to help it function efficiently. working as managers, but as entry-level
employees. They learn about the industry and 2. D
Feedback: Planning should come first in most firm, then earn a promotion. tasks. 14. D
Feedback: A manager may spend some time 3. A
Feedback: Strategies are created in the doing paperwork, but most of the day should
planning phase, before the organizational probably be spent interacting with others..
phase of a project begins. 15. C
Feedback: A manager often gets blamed 4. C
Feedback: An organizational chart shows how when things go wrong regardless of whose
a firm is structured and shows who answers fault it is. But a manager gets paid more, has
to whom. more control over his time, and usually gets
more respect. 5. D
Feedback: An operational manager's main
duties include overseeing workers.
Feedback: Hiring employees happens in the
organizational stage of a project
Feedback: Unless middle management has
been completely cut out of a business, an
operational manager would most likely report to a middle manager.
Feedback: Managers control by monitoring
customer satisfaction as well as monitoring employees.
Feedback: A line authority system is very
simple, but it can leave each manager without the specialists they need to help them with their responsibilities.
Feedback: Putting all authority with top
management helps managers throughout the
firm to be consistent in making decisions. 11. B
Feedback: Decentralization gives authority to a number of different managers.