PRINCIPLES OF MANAGEMENT
PRACTICE REVIEW 2026 TESTED
QUESTIONS AND CORRECT
ANSWERS
◉ Management Key Concepts:
Answer:
◉ Organization
Answer: People working together and coordinating their actions to
achieve specific goals.
◉ Goal
Answer: A desired future condition that the organization seeks to
achieve.
◉ Management
Answer: The process of using organizational resources to achieve the
organizations goals.
◉ These goals are met by what (5) things?
Answer: 1. Planning
2. Organizing
3. Controlling
,4. Decision Making
5. Leading
◉ Who founded these functions?
Answer: Henry Fayol
◉ Resources are organizational assets and include:
Answer: -people
-machinery
-raw materials
-information, skills
-financial capital
◉ Managers are the people responsible for supervising the use of an
organization's resources to ________?
Answer: Meet it's goals
◉ Organizations must provide a ____ or ____ desired by it's customer.
Answer: good or service
◉ Example: Managers of Campbell's soup manage the firm to provide
quality soup products.
Answer: Achieving High Performance
, ◉ Organizational Performance
Answer: Measures how efficiently and effectively managers use
resources to satisfy customers and achieve goals.
◉ Efficiency
Answer: A measure of how well resources are used to achieve a goal.
◉ Example: Usually, managers must try to minimize the input of
resources to attain the same goal.
Answer: Efficiency
◉ Effectiveness
Answer: A measure of the appropriateness of the goals chosen (are these
the right goals?), and the degree to which they are achieved.
◉ Example: Organizations are more effective when managers choose
the correct goals and then achieve them.
Answer: Effectiveness
◉ Managerial Functions
Answer: Henry Fayol was the first to describe 4 managerial functions
when the was the CEO of a large mining company in the late 1800's.
◉ Fayol noted managers at all levels, operating in both for-profit and
non-profit organizations, must perform each of these (4) functions:
PRACTICE REVIEW 2026 TESTED
QUESTIONS AND CORRECT
ANSWERS
◉ Management Key Concepts:
Answer:
◉ Organization
Answer: People working together and coordinating their actions to
achieve specific goals.
◉ Goal
Answer: A desired future condition that the organization seeks to
achieve.
◉ Management
Answer: The process of using organizational resources to achieve the
organizations goals.
◉ These goals are met by what (5) things?
Answer: 1. Planning
2. Organizing
3. Controlling
,4. Decision Making
5. Leading
◉ Who founded these functions?
Answer: Henry Fayol
◉ Resources are organizational assets and include:
Answer: -people
-machinery
-raw materials
-information, skills
-financial capital
◉ Managers are the people responsible for supervising the use of an
organization's resources to ________?
Answer: Meet it's goals
◉ Organizations must provide a ____ or ____ desired by it's customer.
Answer: good or service
◉ Example: Managers of Campbell's soup manage the firm to provide
quality soup products.
Answer: Achieving High Performance
, ◉ Organizational Performance
Answer: Measures how efficiently and effectively managers use
resources to satisfy customers and achieve goals.
◉ Efficiency
Answer: A measure of how well resources are used to achieve a goal.
◉ Example: Usually, managers must try to minimize the input of
resources to attain the same goal.
Answer: Efficiency
◉ Effectiveness
Answer: A measure of the appropriateness of the goals chosen (are these
the right goals?), and the degree to which they are achieved.
◉ Example: Organizations are more effective when managers choose
the correct goals and then achieve them.
Answer: Effectiveness
◉ Managerial Functions
Answer: Henry Fayol was the first to describe 4 managerial functions
when the was the CEO of a large mining company in the late 1800's.
◉ Fayol noted managers at all levels, operating in both for-profit and
non-profit organizations, must perform each of these (4) functions:
