BUS 100 FINAL EXAM REVIEW QUESTIONS
5 Components of Management Planning - Answers - Planning
Organizing
Staffing
Directing
Controlling
Planning - Answers - Determining an organization objectives & how to accomplish them
Types of Planning - Answers - Strategic: long-term, senior management
Tactical: Short range, implanting activities in strategic plan
Operational: Short-term first line supervisors
Organizing - Answers - Structuring resources & activities to accomplish objectives
Staffing - Answers - Selecting & training employees to meet organizational objectives
Directing - Answers - Motivating & leading employees to meet organizational objectives
Controlling - Answers - Evaluating & correcting activities to keep organization on course
3 Ways Businesses can be formed - Answers - Sole Proprietorships
Partnerships
Corporations
Sole Proprietorships - Answers - Businesses owned and operated by one individual; the
most common form of business organization in the United States
Advantage of Sole Proprietorship - Answers - East of Cost of Formation
Disadvantage of Sole Proprietorship - Answers - Lack of qualified employees
Partnerships - Answers - A partnership that involves a complete sharing in both the
management and the liability of the business
Advantage of Partnership - Answers - Ease of Organization
Disadvantage of Partnership - Answers - Unlimited Liability
Corporations - Answers - A legal entity, created by the state, whose assets and
liabilities are separate from its owners'
, Advantage of a Corporation - Answers - Limited Liability
Disadvantage of a Corporation - Answers - Double Taxation
Organizational Culture - Answers - A firm's shared values, beliefs, traditions,
philosophies, rules, and role models for behavior
Organizational Structure - Answers - The arrangement or relationship or positions within
an organization
Departmentalization - Answers - The grouping of jobs into working units usually called
departments, units, groups, or divisions
Functional - Answers - The grouping of jobs that perform similar functional activities,
such as finance, manufacturing, marketing, and human resources.
Product - Answers - The organization of jobs in relation to the products of the firm
Geographical - Answers - The grouping of jobs according to geographic location, such
as state, region, country, or continent
Customer - Answers - The arrangement of jobs around the needs of various types of
customers
Business Ethics - Answers - Principles and standards that determine acceptable
conduct in business
Social Responsibility - Answers - A business's obligation to maximize its positive impact
and minimize its negative impact on society
Codes of Ethics - Answers - Formalized rules and standards that describe what a
company expects of its employees
Business - Answers - Individuals or organization who try to earn a profit by providing
products that satisfy people's needs
Profit - Answers - The difference between what it costs to make and sell a product and
what a customer pays for it
Nonprofit - Answers - Organizations that may provide goods or services but do not have
the fundamental purpose of earning profits
Inputs - Answers - Capacity: max amount
Labor-force: unique
Inventory: Don't run out of supplies
5 Components of Management Planning - Answers - Planning
Organizing
Staffing
Directing
Controlling
Planning - Answers - Determining an organization objectives & how to accomplish them
Types of Planning - Answers - Strategic: long-term, senior management
Tactical: Short range, implanting activities in strategic plan
Operational: Short-term first line supervisors
Organizing - Answers - Structuring resources & activities to accomplish objectives
Staffing - Answers - Selecting & training employees to meet organizational objectives
Directing - Answers - Motivating & leading employees to meet organizational objectives
Controlling - Answers - Evaluating & correcting activities to keep organization on course
3 Ways Businesses can be formed - Answers - Sole Proprietorships
Partnerships
Corporations
Sole Proprietorships - Answers - Businesses owned and operated by one individual; the
most common form of business organization in the United States
Advantage of Sole Proprietorship - Answers - East of Cost of Formation
Disadvantage of Sole Proprietorship - Answers - Lack of qualified employees
Partnerships - Answers - A partnership that involves a complete sharing in both the
management and the liability of the business
Advantage of Partnership - Answers - Ease of Organization
Disadvantage of Partnership - Answers - Unlimited Liability
Corporations - Answers - A legal entity, created by the state, whose assets and
liabilities are separate from its owners'
, Advantage of a Corporation - Answers - Limited Liability
Disadvantage of a Corporation - Answers - Double Taxation
Organizational Culture - Answers - A firm's shared values, beliefs, traditions,
philosophies, rules, and role models for behavior
Organizational Structure - Answers - The arrangement or relationship or positions within
an organization
Departmentalization - Answers - The grouping of jobs into working units usually called
departments, units, groups, or divisions
Functional - Answers - The grouping of jobs that perform similar functional activities,
such as finance, manufacturing, marketing, and human resources.
Product - Answers - The organization of jobs in relation to the products of the firm
Geographical - Answers - The grouping of jobs according to geographic location, such
as state, region, country, or continent
Customer - Answers - The arrangement of jobs around the needs of various types of
customers
Business Ethics - Answers - Principles and standards that determine acceptable
conduct in business
Social Responsibility - Answers - A business's obligation to maximize its positive impact
and minimize its negative impact on society
Codes of Ethics - Answers - Formalized rules and standards that describe what a
company expects of its employees
Business - Answers - Individuals or organization who try to earn a profit by providing
products that satisfy people's needs
Profit - Answers - The difference between what it costs to make and sell a product and
what a customer pays for it
Nonprofit - Answers - Organizations that may provide goods or services but do not have
the fundamental purpose of earning profits
Inputs - Answers - Capacity: max amount
Labor-force: unique
Inventory: Don't run out of supplies
