AEM 2200 Prelim Questions and
Correct 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 planning, organizing, leading, controlling
Management is - Answer getting work done through others
Management is a practice, learned through experience. They bring out the best in other people,
so others can know better, decide better, and act better - Answer words of wisdom yo
Management skills - Answer technical, human relations, conceptual (ability to picture the
organization as a whole and relationship among parts)
What is business? - Answer Activity seeking profit, Provides goods/services, Satisfy standard
of living quality of life, nonprofit organizations
Objectives of business - Answer Survival, growth, social responsibility, profit (in the center of
it all)
Voluntary economic transaction - Answer the self interest of people (and companies) results
in public benefit
Distorted prices - Answer result in net impoverishment
Monopolies - Answer hurt economic freedom
Greed and self interest - Answer two different things
Five factors of production - Answer land, labor, capital, entrepreneurship, knowledge
profit - Answer Revenue - Expenses
Investment of factors/resources will occur only if there is a equally larger or larger probability of
- Answer winning a large amount of money
, Risk - Answer KNOWN likelihood of losing large amount of money (known unknown)
Uncertainty - Answer UNKNOWN likelihood of losing a large amount of money (unknown
unknown)
Functional areas of business - Answer operations, finance, marketing, hr, r+d, PR, legal, etc.
Forms of participation in biz enterprise - Answer eship, ownership, employment, customer,
suppliers, gov
Eship - Answer an entrepreneur is a person who risks time and money to start/manage a biz.
they identify an opp, exploit/develop this opp, running new biz successfully
Entrepreneur - Answer A person who organizes, manages, and takes on the risks of a
business.
Intraprenuer - Answer Accept the risk of starting and running venture INSIDE a business. An
intrapreneur is an employee who is tasked with developing an innovative idea or project within
a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an
entrepreneur; however, the intrapreneur has access to the resources and capabilities of an
established company.
Influencer - Answer people that have reputation for knowledge on topic. Make regular posts
and have large following
Types of influencers - Answer mega (>1MM), macro (40M-1MM), micro (1M-40M),
nanoinfluencers (<1M)
Influencing is big business - Answer China!! 1.6% of econ
Managers vs entre(intra)preneur - Answer M: plan, organize, lead, control, compete in well-
defined markets, competitve advantages, market recognition, and positioning to improve
profits. E: take risks, create new markets/segments, gain customers and market share
Typical entrepreneur - Answer requires less than $5000 of capital to get started (only 3%
require more than 100,000), last less than 3 years, never generates profit, is abandoned (ends in
bankrupcy)
Correct 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 planning, organizing, leading, controlling
Management is - Answer getting work done through others
Management is a practice, learned through experience. They bring out the best in other people,
so others can know better, decide better, and act better - Answer words of wisdom yo
Management skills - Answer technical, human relations, conceptual (ability to picture the
organization as a whole and relationship among parts)
What is business? - Answer Activity seeking profit, Provides goods/services, Satisfy standard
of living quality of life, nonprofit organizations
Objectives of business - Answer Survival, growth, social responsibility, profit (in the center of
it all)
Voluntary economic transaction - Answer the self interest of people (and companies) results
in public benefit
Distorted prices - Answer result in net impoverishment
Monopolies - Answer hurt economic freedom
Greed and self interest - Answer two different things
Five factors of production - Answer land, labor, capital, entrepreneurship, knowledge
profit - Answer Revenue - Expenses
Investment of factors/resources will occur only if there is a equally larger or larger probability of
- Answer winning a large amount of money
, Risk - Answer KNOWN likelihood of losing large amount of money (known unknown)
Uncertainty - Answer UNKNOWN likelihood of losing a large amount of money (unknown
unknown)
Functional areas of business - Answer operations, finance, marketing, hr, r+d, PR, legal, etc.
Forms of participation in biz enterprise - Answer eship, ownership, employment, customer,
suppliers, gov
Eship - Answer an entrepreneur is a person who risks time and money to start/manage a biz.
they identify an opp, exploit/develop this opp, running new biz successfully
Entrepreneur - Answer A person who organizes, manages, and takes on the risks of a
business.
Intraprenuer - Answer Accept the risk of starting and running venture INSIDE a business. An
intrapreneur is an employee who is tasked with developing an innovative idea or project within
a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an
entrepreneur; however, the intrapreneur has access to the resources and capabilities of an
established company.
Influencer - Answer people that have reputation for knowledge on topic. Make regular posts
and have large following
Types of influencers - Answer mega (>1MM), macro (40M-1MM), micro (1M-40M),
nanoinfluencers (<1M)
Influencing is big business - Answer China!! 1.6% of econ
Managers vs entre(intra)preneur - Answer M: plan, organize, lead, control, compete in well-
defined markets, competitve advantages, market recognition, and positioning to improve
profits. E: take risks, create new markets/segments, gain customers and market share
Typical entrepreneur - Answer requires less than $5000 of capital to get started (only 3%
require more than 100,000), last less than 3 years, never generates profit, is abandoned (ends in
bankrupcy)
