BUSN100 Unit Test 6 Management
and Leadership Questions And
Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which statement best describes the primary purpose of
management in an organization?
A. Eliminating all risks associated with business operations
B. Increasing employee workloads regardless of organizational goals
C. Replacing leadership with automated decision-making systems
D. Achieving organizational goals by coordinating people and
resources effectively
Answer: D. Achieving organizational goals by coordinating people and
resources effectively
Rationale: Management involves coordinating organizational
resources, including people, finances, technology, information, and
physical assets, so that organizational objectives can be accomplished
efficiently and effectively. Managers help determine what needs to be
done, organize resources, guide employees, and evaluate results.
Effective management therefore involves much more than simply
supervising employees or reducing costs.
2. Which of the following is generally considered one of the four
major functions of management?
,A. Planning
B. Advertising
C. Manufacturing
D. Financing
Answer: A. Planning
Rationale: The four traditional functions of management are planning,
organizing, leading, and controlling. Planning involves determining
objectives and deciding how those objectives will be achieved.
Managers use planning to establish priorities, allocate resources,
anticipate challenges, and provide direction for organizational
activities.
3. A manager determines that a company should increase its market
share by 10% over the next three years. Which management
function is primarily being demonstrated?
A. Controlling
B. Organizing
C. Planning
D. Leading
Answer: C. Planning
Rationale: Planning requires managers to establish objectives and
determine appropriate courses of action. Setting a specific long-term
market-share objective gives the organization a direction against
which strategies and performance can later be evaluated.
4. Which management function involves assigning tasks, grouping
activities, and allocating resources?
A. Controlling
B. Leading
,C. Planning
D. Organizing
Answer: D. Organizing
Rationale: Organizing involves arranging people, tasks, authority, and
resources so that plans can be implemented effectively. Managers
determine who will perform particular activities, how work will be
divided, and how different organizational units will coordinate their
efforts.
5. A supervisor motivates employees, communicates organizational
goals, and resolves interpersonal conflicts. Which management
function is most directly involved?
A. Planning
B. Leading
C. Controlling
D. Budgeting
Answer: B. Leading
Rationale: Leading focuses on influencing and motivating employees
so that they contribute toward organizational goals. Communication,
motivation, relationship building, conflict management, coaching, and
employee guidance are important components of effective leadership.
6. Which management function compares actual performance with
established standards?
A. Controlling
B. Organizing
C. Leading
D. Staffing
Answer: A. Controlling
, Rationale: Controlling involves monitoring organizational
performance, comparing actual results with desired standards,
identifying deviations, and taking corrective action when necessary.
The controlling process helps ensure that organizational plans are
being implemented successfully.
7. What is the primary difference between efficiency and
effectiveness?
A. Efficiency concerns leadership, while effectiveness concerns
accounting.
B. Efficiency applies only to employees, while effectiveness applies
only to managers.
C. Efficiency emphasizes using resources wisely, while effectiveness
emphasizes achieving desired goals.
D. Efficiency is long-term, while effectiveness is always short-term.
Answer: C. Efficiency emphasizes using resources wisely, while
effectiveness emphasizes achieving desired goals.
Rationale: Efficiency means accomplishing work with minimal waste
of resources such as time, money, materials, and labor. Effectiveness
means achieving organizational objectives. A successful manager
strives for both by accomplishing meaningful goals while using
resources responsibly.
8. Which managerial level is generally responsible for establishing
broad organizational strategies?
A. First-line managers
B. Team leaders
C. Middle managers
D. Top managers
and Leadership Questions And
Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which statement best describes the primary purpose of
management in an organization?
A. Eliminating all risks associated with business operations
B. Increasing employee workloads regardless of organizational goals
C. Replacing leadership with automated decision-making systems
D. Achieving organizational goals by coordinating people and
resources effectively
Answer: D. Achieving organizational goals by coordinating people and
resources effectively
Rationale: Management involves coordinating organizational
resources, including people, finances, technology, information, and
physical assets, so that organizational objectives can be accomplished
efficiently and effectively. Managers help determine what needs to be
done, organize resources, guide employees, and evaluate results.
Effective management therefore involves much more than simply
supervising employees or reducing costs.
2. Which of the following is generally considered one of the four
major functions of management?
,A. Planning
B. Advertising
C. Manufacturing
D. Financing
Answer: A. Planning
Rationale: The four traditional functions of management are planning,
organizing, leading, and controlling. Planning involves determining
objectives and deciding how those objectives will be achieved.
Managers use planning to establish priorities, allocate resources,
anticipate challenges, and provide direction for organizational
activities.
3. A manager determines that a company should increase its market
share by 10% over the next three years. Which management
function is primarily being demonstrated?
A. Controlling
B. Organizing
C. Planning
D. Leading
Answer: C. Planning
Rationale: Planning requires managers to establish objectives and
determine appropriate courses of action. Setting a specific long-term
market-share objective gives the organization a direction against
which strategies and performance can later be evaluated.
4. Which management function involves assigning tasks, grouping
activities, and allocating resources?
A. Controlling
B. Leading
,C. Planning
D. Organizing
Answer: D. Organizing
Rationale: Organizing involves arranging people, tasks, authority, and
resources so that plans can be implemented effectively. Managers
determine who will perform particular activities, how work will be
divided, and how different organizational units will coordinate their
efforts.
5. A supervisor motivates employees, communicates organizational
goals, and resolves interpersonal conflicts. Which management
function is most directly involved?
A. Planning
B. Leading
C. Controlling
D. Budgeting
Answer: B. Leading
Rationale: Leading focuses on influencing and motivating employees
so that they contribute toward organizational goals. Communication,
motivation, relationship building, conflict management, coaching, and
employee guidance are important components of effective leadership.
6. Which management function compares actual performance with
established standards?
A. Controlling
B. Organizing
C. Leading
D. Staffing
Answer: A. Controlling
, Rationale: Controlling involves monitoring organizational
performance, comparing actual results with desired standards,
identifying deviations, and taking corrective action when necessary.
The controlling process helps ensure that organizational plans are
being implemented successfully.
7. What is the primary difference between efficiency and
effectiveness?
A. Efficiency concerns leadership, while effectiveness concerns
accounting.
B. Efficiency applies only to employees, while effectiveness applies
only to managers.
C. Efficiency emphasizes using resources wisely, while effectiveness
emphasizes achieving desired goals.
D. Efficiency is long-term, while effectiveness is always short-term.
Answer: C. Efficiency emphasizes using resources wisely, while
effectiveness emphasizes achieving desired goals.
Rationale: Efficiency means accomplishing work with minimal waste
of resources such as time, money, materials, and labor. Effectiveness
means achieving organizational objectives. A successful manager
strives for both by accomplishing meaningful goals while using
resources responsibly.
8. Which managerial level is generally responsible for establishing
broad organizational strategies?
A. First-line managers
B. Team leaders
C. Middle managers
D. Top managers
