AEM 2200 Prelim Final Exam
Questions with Accurate Answers
2026 Updated.
Management - Answer The process used to accomplish organizational goals through
planning, organizing, leading and controlling people and other organizational resources.
Functions of Management - Answer The key activities involved in management, including
planning, organizing, leading, and controlling.
Planning - Answer Setting organizational goals and strategies to attain those goals;
determining the resources needed to attain goals; setting standards.
Organizing - Answer Allocating resources, tasks, and procedures for achieving goals;
preparing an organizational structure that defines authority and responsibility; recruiting,
selecting, training, developing and placing employees.
Leading - Answer Guiding and motivating/engaging employees to work effectively to
accomplish organizational goals and objectives; giving and explaining assignments; clarifying
policies and giving feedback.
Controlling - Answer Measuring performance against corporate objectives; rewarding
outstanding performance; taking corrective action.
Management Skills - Answer The abilities required for effective management, including
technical skills, human relations skills, and conceptual skills.
Technical Skills - Answer The ability to perform tasks in a specific discipline or department.
Human Relations Skills - Answer Communication and motivation, the ability to work through
and with people.
Conceptual Skills - Answer Ability to picture the organization as a whole and the relationship
among its various parts.
The Communication Process - Answer The steps involved in communication, including
message to be conveyed, encoding the message, transmitting the message, receiving the
message, decoding the message, and feedback.
, Communication Barriers - Noise - Answer Factors that impede effective communication,
including physical barriers, language barriers, body language barriers, perceptual barriers,
organizational barriers, and cultural barriers.
Objectives of Business - Answer The goals that businesses aim to achieve, including survival,
growth, social responsibility, and profit.
Profit - Answer The financial gain obtained when the revenue from business activities
exceeds the costs and expenses.
Risk vs. Reward - Answer The concept that potential reward is directly proportional to the
amount of risk taken in business ventures.
Entrepreneurship - Answer The process of starting and running a new business, typically
involving risk and innovation.
Business Governance - Answer The framework of rules, relationships, systems, and processes
within and by which authority is exercised and controlled in businesses.
Greed vs. Self-Interest - Answer The distinction that while greed is an excessive desire for
more than is needed, self-interest can lead to public benefit in voluntary economic transactions.
Monopolies - Answer Market structures where a single seller dominates, potentially harming
economic freedom and leading to distorted prices.
Distorted Prices - Answer Prices that do not reflect the true value of goods or services, which
may result in net impoverishment.
Risk - Answer Known likelihood of losing a large amount of money.
Known unknown - Answer Uncertainty with known likelihood of losing a large amount of
money.
Unknown unknown - Answer Uncertainty with unknown likelihood of losing a large amount
of money.
Operations - Answer The process of transformation of resources into goods and services.
Questions with Accurate Answers
2026 Updated.
Management - Answer The process used to accomplish organizational goals through
planning, organizing, leading and controlling people and other organizational resources.
Functions of Management - Answer The key activities involved in management, including
planning, organizing, leading, and controlling.
Planning - Answer Setting organizational goals and strategies to attain those goals;
determining the resources needed to attain goals; setting standards.
Organizing - Answer Allocating resources, tasks, and procedures for achieving goals;
preparing an organizational structure that defines authority and responsibility; recruiting,
selecting, training, developing and placing employees.
Leading - Answer Guiding and motivating/engaging employees to work effectively to
accomplish organizational goals and objectives; giving and explaining assignments; clarifying
policies and giving feedback.
Controlling - Answer Measuring performance against corporate objectives; rewarding
outstanding performance; taking corrective action.
Management Skills - Answer The abilities required for effective management, including
technical skills, human relations skills, and conceptual skills.
Technical Skills - Answer The ability to perform tasks in a specific discipline or department.
Human Relations Skills - Answer Communication and motivation, the ability to work through
and with people.
Conceptual Skills - Answer Ability to picture the organization as a whole and the relationship
among its various parts.
The Communication Process - Answer The steps involved in communication, including
message to be conveyed, encoding the message, transmitting the message, receiving the
message, decoding the message, and feedback.
, Communication Barriers - Noise - Answer Factors that impede effective communication,
including physical barriers, language barriers, body language barriers, perceptual barriers,
organizational barriers, and cultural barriers.
Objectives of Business - Answer The goals that businesses aim to achieve, including survival,
growth, social responsibility, and profit.
Profit - Answer The financial gain obtained when the revenue from business activities
exceeds the costs and expenses.
Risk vs. Reward - Answer The concept that potential reward is directly proportional to the
amount of risk taken in business ventures.
Entrepreneurship - Answer The process of starting and running a new business, typically
involving risk and innovation.
Business Governance - Answer The framework of rules, relationships, systems, and processes
within and by which authority is exercised and controlled in businesses.
Greed vs. Self-Interest - Answer The distinction that while greed is an excessive desire for
more than is needed, self-interest can lead to public benefit in voluntary economic transactions.
Monopolies - Answer Market structures where a single seller dominates, potentially harming
economic freedom and leading to distorted prices.
Distorted Prices - Answer Prices that do not reflect the true value of goods or services, which
may result in net impoverishment.
Risk - Answer Known likelihood of losing a large amount of money.
Known unknown - Answer Uncertainty with known likelihood of losing a large amount of
money.
Unknown unknown - Answer Uncertainty with unknown likelihood of losing a large amount
of money.
Operations - Answer The process of transformation of resources into goods and services.
