NOCTI General Management Exam,
Practice Tests & Key Concepts
With Verified Results| Already
Graded A
1. management - ANSWER the process used to accomplish organizational
goals through planning, organizing, leading, and controlling people and
other organizational resources
2. planning - ANSWER a management function that includes anticipating
trends and determining the best strategies and tactics to achieve
organizational goals and objectives
3. organizing - ANSWER a management function that includes designing the
structure of the organization and creating conditions and systems in which
everyone and everything work together to achieve the organizations goals
and objectives
4. leading - ANSWER creating a vision for the organization and guiding,
training, coaching, and motivating others to work effectively to achieve the
organizations goals and objectives
5. controlling - ANSWER a management function that involves establishing
clear standards to determine whether or not an organization is progressing
toward its goals and objectives, rewarding people for doing a good job, and
taking corrective action if they are not
,6. vision - ANSWER an encompassing explanation of why the organization
exists and where it's trying to head
7. mission statement - ANSWER an outline of the fundamental purpose of an
organization
8. goals - ANSWER the broad, long term accomplishments an organization
wishes to attain
9. objectives - ANSWER specific, short term statements detailing how to
achieve the organizations goals
10.SWOT analysis - ANSWER SWOT = Strengths, Weaknesses,
Opportunities and Threats; a planning tool used to analyze an organization’s
strength, weakness, opportunities and threats
11.strategic planning - ANSWER the process of determining the major goals of
the organization and the policies and strategies for obtaining and using
resources to achieve those goals
12.working capital - ANSWER the difference between current assets and
current liabilities
13.bank debt - ANSWER loan capital including also any overdraft (temporary
negative balance)
,14.accounts payable - ANSWER money an organization owes to its vendors
and suppliers.
15.accrued taxes - ANSWER taxes built up over time, unpaid taxes
16.accrued salaries - ANSWER salaries paid for after the service has been
performed, typically includes future bonuses
17.inventory - ANSWER the value of raw materials and stock
18.fixtures - ANSWER part of a building that cannot be moved, such as lights;
personal property so securely attached to real estate that it becomes part of
the real estate
19.mortgage - ANSWER a long-term bank loan to purchase a home or other
real estate
20.bond - ANSWER a loan for fixed period of time with fixed interest rate
21.provisions - ANSWER amounts set aside for anticipated one-time payments
that are not part of regular operations - perhaps a lawsuit, or a
compensationpackage for employees being laid off
22.retained profit - ANSWER reserves, the amount of profit which is kept back
by a business for future investment
23.cash flow statement - ANSWER a financial statement that shows the flow
of money in and out of the business; it shows the real cash that is available
to keep the business running
, 24.causes of cash flow problems - ANSWER late payments and non-payments,
unforeseen costs, unexpected changes in demand, over-borrowing from the
bank to finance expansion plans
25.solutions for managing cash flow - ANSWER credit control, stock control,
expenditure control, marketing initiatives, using an outside company to
recover a debt
26.factoring - ANSWER using an outside company to recover debts, obtaining
funding by selling account receivable
27.debt financing - ANSWER funds raised through various forms of borrowing
that must be repaid (e.g. trade credit, bank loan, issuing bonds)
28.equity financing - ANSWER money raised from within the firm, from
operations or through the sale of ownership in the firm (e.g. reinvested
earnings, sale of assets, issue of new shares)
29.issues in financial management - ANSWER cost centres, profit centres,
variance analysis, costing methods (standard versus marginal costing),
valuing assets
30.liquidity ratios - ANSWER measure the ability to turn assets into cash to
pay short-term depts
31.profitability ratios - ANSWER measure the company's ability to generate
profits
Practice Tests & Key Concepts
With Verified Results| Already
Graded A
1. management - ANSWER the process used to accomplish organizational
goals through planning, organizing, leading, and controlling people and
other organizational resources
2. planning - ANSWER a management function that includes anticipating
trends and determining the best strategies and tactics to achieve
organizational goals and objectives
3. organizing - ANSWER a management function that includes designing the
structure of the organization and creating conditions and systems in which
everyone and everything work together to achieve the organizations goals
and objectives
4. leading - ANSWER creating a vision for the organization and guiding,
training, coaching, and motivating others to work effectively to achieve the
organizations goals and objectives
5. controlling - ANSWER a management function that involves establishing
clear standards to determine whether or not an organization is progressing
toward its goals and objectives, rewarding people for doing a good job, and
taking corrective action if they are not
,6. vision - ANSWER an encompassing explanation of why the organization
exists and where it's trying to head
7. mission statement - ANSWER an outline of the fundamental purpose of an
organization
8. goals - ANSWER the broad, long term accomplishments an organization
wishes to attain
9. objectives - ANSWER specific, short term statements detailing how to
achieve the organizations goals
10.SWOT analysis - ANSWER SWOT = Strengths, Weaknesses,
Opportunities and Threats; a planning tool used to analyze an organization’s
strength, weakness, opportunities and threats
11.strategic planning - ANSWER the process of determining the major goals of
the organization and the policies and strategies for obtaining and using
resources to achieve those goals
12.working capital - ANSWER the difference between current assets and
current liabilities
13.bank debt - ANSWER loan capital including also any overdraft (temporary
negative balance)
,14.accounts payable - ANSWER money an organization owes to its vendors
and suppliers.
15.accrued taxes - ANSWER taxes built up over time, unpaid taxes
16.accrued salaries - ANSWER salaries paid for after the service has been
performed, typically includes future bonuses
17.inventory - ANSWER the value of raw materials and stock
18.fixtures - ANSWER part of a building that cannot be moved, such as lights;
personal property so securely attached to real estate that it becomes part of
the real estate
19.mortgage - ANSWER a long-term bank loan to purchase a home or other
real estate
20.bond - ANSWER a loan for fixed period of time with fixed interest rate
21.provisions - ANSWER amounts set aside for anticipated one-time payments
that are not part of regular operations - perhaps a lawsuit, or a
compensationpackage for employees being laid off
22.retained profit - ANSWER reserves, the amount of profit which is kept back
by a business for future investment
23.cash flow statement - ANSWER a financial statement that shows the flow
of money in and out of the business; it shows the real cash that is available
to keep the business running
, 24.causes of cash flow problems - ANSWER late payments and non-payments,
unforeseen costs, unexpected changes in demand, over-borrowing from the
bank to finance expansion plans
25.solutions for managing cash flow - ANSWER credit control, stock control,
expenditure control, marketing initiatives, using an outside company to
recover a debt
26.factoring - ANSWER using an outside company to recover debts, obtaining
funding by selling account receivable
27.debt financing - ANSWER funds raised through various forms of borrowing
that must be repaid (e.g. trade credit, bank loan, issuing bonds)
28.equity financing - ANSWER money raised from within the firm, from
operations or through the sale of ownership in the firm (e.g. reinvested
earnings, sale of assets, issue of new shares)
29.issues in financial management - ANSWER cost centres, profit centres,
variance analysis, costing methods (standard versus marginal costing),
valuing assets
30.liquidity ratios - ANSWER measure the ability to turn assets into cash to
pay short-term depts
31.profitability ratios - ANSWER measure the company's ability to generate
profits
