Business Management and
Administration Cluster Exam Prep
Questions With Outlined Answers
\.Business-format franchise - Answer- A type of business ownership where a franchisee pays
royalties to a franchisor to sell products or services.
\.Licensing agreement - Answer- A legal contract where one party allows another to use its
intellectual property in exchange for royalties.
\.General partnership - Answer- A business structure where two or more individuals manage
and operate a business together.
\.Multilevel marketing - Answer- A strategy where salespersons earn income through direct
sales and by recruiting new salespeople.
\.Directing function of management - Answer- A continuous process that involves guiding
and motivating employees to achieve organizational goals.
\.Legal ownership of purchases - Answer- Ownership does not pass to the purchaser until all
payments have been made if the purchaser uses installment credit.
\.Human resources analysis - Answer- The process of reviewing departmental reports to
determine issues affecting business outputs.
,\.Trade secret - Answer- Confidential business information that provides a competitive edge,
such as a customer list.
\.Accident report - Answer- A formal document that records the details of an accident in the
workplace.
\.Demand letter - Answer- A letter sent by an attorney to another party outlining the reasons
for a potential lawsuit.
\.Economic want - Answer- A desire for goods or services that requires spending money.
\.Knowledge capture technique - Answer- A method used by businesses to document and
transfer employees' knowledge, such as creating a diagram.
\.Human resources manager - Answer- The position responsible for overseeing recruitment,
training, performance, and safety of employees.
\.Supply chain network design - Answer- The process of optimizing purchasing, production,
warehousing, and inventory to improve service and reduce costs.
\.Operations manager - Answer- A role that focuses on overseeing the production and
delivery of goods and services.
\.Project manager - Answer- A person responsible for planning, executing, and closing
projects.
\.Office manager - Answer- An individual who oversees the administrative functions and
operations of an office.
,\.Transportation in supply chain - Answer- The movement of goods from one location to
another within the supply chain.
\.Marketing in supply chain - Answer- The process of promoting and selling products or
services to customers.
\.Promotion in supply chain - Answer- The activities that communicate the benefits of a
product or service to potential customers.
\.Geographically dispersed teamwork - Answer- Collaboration among team members who are
located in different geographical locations.
\.Groupware - Answer- Software that allows multiple users to work on documents together,
share files, and communicate quickly and easily.
\.Component of verbal communication - Answer- Facial expression, body posture, eye
contact, and listening.
\.Selling customer lists without consent - Answer- The business is likely to lose its customers'
trust.
\.Trademark infringement - Answer- Seward can take legal action by filing an infringement
lawsuit against Lamont.
\.Constructive criticism - Answer- Aaliyah's comments to Lisa about her project.
, \.Positive relationships with vendors - Answer- A business should embrace a team-oriented
mindset.
\.Online shipment tracking - Answer- An example of technology affecting supply chain
management.
\.Ethical quality management - Answer- Aims to benefit the business and those outside it.
\.Analyzing a business's income statement - Answer- Usually the responsibility of managers.
\.Culture of recognition - Answer- Can deepen relationships by paying someone the ultimate
compliment.
\.Knowledge management - Answer- Organizations undertake it to ensure that organizational
knowledge isn't wasted.
\.Workplace safety regulations - Answer- Demonstrate how legal considerations affect
business operations.
\.Project manager responsibilities - Answer- Determining and communicating the project
objectives to clients.
\.Function of management establishing authority levels - Answer- Organizing.
\.Legal considerations affecting business - Answer- Operations.
Administration Cluster Exam Prep
Questions With Outlined Answers
\.Business-format franchise - Answer- A type of business ownership where a franchisee pays
royalties to a franchisor to sell products or services.
\.Licensing agreement - Answer- A legal contract where one party allows another to use its
intellectual property in exchange for royalties.
\.General partnership - Answer- A business structure where two or more individuals manage
and operate a business together.
\.Multilevel marketing - Answer- A strategy where salespersons earn income through direct
sales and by recruiting new salespeople.
\.Directing function of management - Answer- A continuous process that involves guiding
and motivating employees to achieve organizational goals.
\.Legal ownership of purchases - Answer- Ownership does not pass to the purchaser until all
payments have been made if the purchaser uses installment credit.
\.Human resources analysis - Answer- The process of reviewing departmental reports to
determine issues affecting business outputs.
,\.Trade secret - Answer- Confidential business information that provides a competitive edge,
such as a customer list.
\.Accident report - Answer- A formal document that records the details of an accident in the
workplace.
\.Demand letter - Answer- A letter sent by an attorney to another party outlining the reasons
for a potential lawsuit.
\.Economic want - Answer- A desire for goods or services that requires spending money.
\.Knowledge capture technique - Answer- A method used by businesses to document and
transfer employees' knowledge, such as creating a diagram.
\.Human resources manager - Answer- The position responsible for overseeing recruitment,
training, performance, and safety of employees.
\.Supply chain network design - Answer- The process of optimizing purchasing, production,
warehousing, and inventory to improve service and reduce costs.
\.Operations manager - Answer- A role that focuses on overseeing the production and
delivery of goods and services.
\.Project manager - Answer- A person responsible for planning, executing, and closing
projects.
\.Office manager - Answer- An individual who oversees the administrative functions and
operations of an office.
,\.Transportation in supply chain - Answer- The movement of goods from one location to
another within the supply chain.
\.Marketing in supply chain - Answer- The process of promoting and selling products or
services to customers.
\.Promotion in supply chain - Answer- The activities that communicate the benefits of a
product or service to potential customers.
\.Geographically dispersed teamwork - Answer- Collaboration among team members who are
located in different geographical locations.
\.Groupware - Answer- Software that allows multiple users to work on documents together,
share files, and communicate quickly and easily.
\.Component of verbal communication - Answer- Facial expression, body posture, eye
contact, and listening.
\.Selling customer lists without consent - Answer- The business is likely to lose its customers'
trust.
\.Trademark infringement - Answer- Seward can take legal action by filing an infringement
lawsuit against Lamont.
\.Constructive criticism - Answer- Aaliyah's comments to Lisa about her project.
, \.Positive relationships with vendors - Answer- A business should embrace a team-oriented
mindset.
\.Online shipment tracking - Answer- An example of technology affecting supply chain
management.
\.Ethical quality management - Answer- Aims to benefit the business and those outside it.
\.Analyzing a business's income statement - Answer- Usually the responsibility of managers.
\.Culture of recognition - Answer- Can deepen relationships by paying someone the ultimate
compliment.
\.Knowledge management - Answer- Organizations undertake it to ensure that organizational
knowledge isn't wasted.
\.Workplace safety regulations - Answer- Demonstrate how legal considerations affect
business operations.
\.Project manager responsibilities - Answer- Determining and communicating the project
objectives to clients.
\.Function of management establishing authority levels - Answer- Organizing.
\.Legal considerations affecting business - Answer- Operations.
