PRINCIPLES OF MANAGEMENT
EXAM 1 REVIEW GUIDE 2026
VERIFIED QUESTIONS WITH
ACCURATE ANSWERS
◉ Why is good management important?
Answer: Good management leads to competitive advantages, employee
satisfaction, customer satisfaction, increased sales revenue, and
improved stock market returns.
◉ What are the four functions of management according to Henri Fayol?
Answer: Planning, Organizing, Leading, and Controlling.
◉ What does the planning function of management involve?
Answer: Planning involves setting goals and determining the best course
of action to achieve them.
◉ What is involved in the organizing function of management?
Answer: Organizing involves deciding where decisions will be made,
who will do what jobs, and who will work for whom.
◉ What is the leading function of management?
Answer: Leading involves motivating and encouraging employees to
achieve organizational objectives.
EXAM 1 REVIEW GUIDE 2026
VERIFIED QUESTIONS WITH
ACCURATE ANSWERS
◉ Why is good management important?
Answer: Good management leads to competitive advantages, employee
satisfaction, customer satisfaction, increased sales revenue, and
improved stock market returns.
◉ What are the four functions of management according to Henri Fayol?
Answer: Planning, Organizing, Leading, and Controlling.
◉ What does the planning function of management involve?
Answer: Planning involves setting goals and determining the best course
of action to achieve them.
◉ What is involved in the organizing function of management?
Answer: Organizing involves deciding where decisions will be made,
who will do what jobs, and who will work for whom.
◉ What is the leading function of management?
Answer: Leading involves motivating and encouraging employees to
achieve organizational objectives.
