BUS 100 Final Exam Review – Introduction to Business – 2026 – Study and
Practice Guide
5 Components of Management Planning - correct answer ✔✔ Planning
Organizing
Staffing
Directing
Controlling
Planning - correct answer ✔✔ Determining an organization objectives & how to accomplish
them
Types of Planning - correct answer ✔✔ Strategic: long-term, senior management
Tactical: Short range, implanting activities in strategic plan
Operational: Short-term first line supervisors
Organizing - correct answer ✔✔ Structuring resources & activities to accomplish objectives
Staffing - correct answer ✔✔ Selecting & training employees to meet organizational objectives
Directing - correct answer ✔✔ Motivating & leading employees to meet organizational
objectives
Controlling - correct answer ✔✔ Evaluating & correcting activities to keep organization on
course
3 Ways Businesses can be formed - correct answer ✔✔ Sole Proprietorships
, Partnerships
Corporations
Sole Proprietorships - correct answer ✔✔ Businesses owned and operated by one individual;
the most common form of business organization in the United States
Advantage of Sole Proprietorship - correct answer ✔✔ East of Cost of Formation
Disadvantage of Sole Proprietorship - correct answer ✔✔ Lack of qualified employees
Partnerships - correct answer ✔✔ A partnership that involves a complete sharing in both the
management and the liability of the business
Advantage of Partnership - correct answer ✔✔ Ease of Organization
Disadvantage of Partnership - correct answer ✔✔ Unlimited Liability
Corporations - correct answer ✔✔ A legal entity, created by the state, whose assets and
liabilities are separate from its owners'
Advantage of a Corporation - correct answer ✔✔ Limited Liability
Disadvantage of a Corporation - correct answer ✔✔ Double Taxation
Organizational Culture - correct answer ✔✔ A firm's shared values, beliefs, traditions,
philosophies, rules, and role models for behavior
Practice Guide
5 Components of Management Planning - correct answer ✔✔ Planning
Organizing
Staffing
Directing
Controlling
Planning - correct answer ✔✔ Determining an organization objectives & how to accomplish
them
Types of Planning - correct answer ✔✔ Strategic: long-term, senior management
Tactical: Short range, implanting activities in strategic plan
Operational: Short-term first line supervisors
Organizing - correct answer ✔✔ Structuring resources & activities to accomplish objectives
Staffing - correct answer ✔✔ Selecting & training employees to meet organizational objectives
Directing - correct answer ✔✔ Motivating & leading employees to meet organizational
objectives
Controlling - correct answer ✔✔ Evaluating & correcting activities to keep organization on
course
3 Ways Businesses can be formed - correct answer ✔✔ Sole Proprietorships
, Partnerships
Corporations
Sole Proprietorships - correct answer ✔✔ Businesses owned and operated by one individual;
the most common form of business organization in the United States
Advantage of Sole Proprietorship - correct answer ✔✔ East of Cost of Formation
Disadvantage of Sole Proprietorship - correct answer ✔✔ Lack of qualified employees
Partnerships - correct answer ✔✔ A partnership that involves a complete sharing in both the
management and the liability of the business
Advantage of Partnership - correct answer ✔✔ Ease of Organization
Disadvantage of Partnership - correct answer ✔✔ Unlimited Liability
Corporations - correct answer ✔✔ A legal entity, created by the state, whose assets and
liabilities are separate from its owners'
Advantage of a Corporation - correct answer ✔✔ Limited Liability
Disadvantage of a Corporation - correct answer ✔✔ Double Taxation
Organizational Culture - correct answer ✔✔ A firm's shared values, beliefs, traditions,
philosophies, rules, and role models for behavior
