BUS 250
BUS 250 COMPLETE FINAL LATEST VERSION EXAM
PREP - VERIFIED QUESTIONS AND ANSWERS -
COMPLETE COVERAGE
1. Which of the following is NOT one of the four basic functions of
management?
A. Planning
B. Organizing
C. Leading
D. Advertising
ANSWER : D. Advertising
Explanation: The four functions are planning, organizing, leading, and
controlling. Advertising is a marketing activity.
2. A mission statement is best described as a statement of
A. next quarter's projected earnings
B. an organization's fundamental purpose and reason for existing
C. the firm's organizational chart
D. the company's legal obligations
ANSWER : B. an organization's fundamental purpose and reason
for existing
Explanation: A mission statement explains why the organization exists
and what it does.
3. In a SWOT analysis, strengths and weaknesses refer to
A. external economic trends
B. government regulations only
C. internal factors within the organization
D. competitors' resources
ANSWER : C. internal factors within the organization
Explanation: Strengths and weaknesses are internal; opportunities and
threats are external.
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, BUS 250
4. The number of subordinates who report directly to a manager is called
the
A. span of control
B. chain of command
C. unity of command
D. line of authority
ANSWER : A. span of control
Explanation: Span of control is the number of employees a manager
directly supervises.
5. Which level of management is mainly responsible for setting long-term
strategic direction?
A. First-line managers
B. Supervisors
C. Team leaders
D. Top managers
ANSWER : D. Top managers
Explanation: Top managers, such as the CEO and vice presidents, set
strategy for the whole organization.
6. Douglas McGregor's Theory X assumes that employees
A. are naturally self-motivated and seek responsibility
B. generally dislike work and must be controlled or threatened
C. work best without any supervision
D. care more about creativity than pay
ANSWER : B. generally dislike work and must be controlled or
threatened
Explanation: Theory X takes a pessimistic view of workers, while Theory
Y takes an optimistic one.
7. According to Maslow's hierarchy of needs, which need sits at the top?
A. Safety
B. Social belonging
C. Self-actualization
D. Physiological
ANSWER : C. Self-actualization
Explanation: Self-actualization, the drive to reach one's full potential, is
the highest level.
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, BUS 250
8. In Herzberg's two-factor theory, hygiene factors such as salary and
working conditions
A. prevent dissatisfaction but do not by themselves motivate
B. are the main source of long-term motivation
C. only apply to executives
D. have no effect on employee attitudes
ANSWER : A. prevent dissatisfaction but do not by themselves
motivate
Explanation: Hygiene factors remove dissatisfaction; motivators like
achievement and recognition create satisfaction.
9. Who is known as the father of scientific management?
A. Henri Fayol
B. Elton Mayo
C. Max Weber
D. Frederick W. Taylor
ANSWER : D. Frederick W. Taylor
Explanation: Taylor promoted time-and-motion study and efficiency in
the early 1900s.
10. Which theorist is associated with 14 principles of management,
including unity of command and division of work?
A. Frederick Taylor
B. Henri Fayol
C. Abraham Maslow
D. Peter Drucker
ANSWER : B. Henri Fayol
Explanation: Fayol, a French mining engineer, described these
administrative principles.
11. A transformational leader is one who
A. relies only on rewards and punishments
B. avoids making changes to procedures
C. inspires followers through vision and shared purpose
D. delegates every decision
ANSWER : C. inspires followers through vision and shared purpose
Explanation: Transformational leaders motivate people to go beyond
self-interest for the organization.
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, BUS 250
12. When decision-making authority is concentrated at the top of an
organization, the structure is described as
A. centralized
B. decentralized
C. flat
D. matrix
ANSWER : A. centralized
Explanation: Centralization keeps most decisions with top management.
13. The unbroken line of authority that links every employee to the top of
the organization is the
A. span of control
B. staff function
C. delegation process
D. chain of command
ANSWER : D. chain of command
Explanation: The chain of command defines who reports to whom.
14. Management by objectives (MBO) involves
A. managers setting all goals without employee input
B. superiors and subordinates jointly setting goals and reviewing
progress
C. eliminating performance reviews
D. focusing only on financial targets
ANSWER : B. superiors and subordinates jointly setting goals and
reviewing progress
Explanation: MBO is a collaborative goal-setting process tied to
performance evaluation.
15. Delegation is the process of
A. doing the work personally to ensure quality
B. hiring additional staff
C. assigning responsibility and authority to others
D. reorganizing departments
ANSWER : C. assigning responsibility and authority to others
Explanation: Delegation passes tasks and the authority to complete them
to subordinates.
Page 4 of 53
BUS 250 COMPLETE FINAL LATEST VERSION EXAM
PREP - VERIFIED QUESTIONS AND ANSWERS -
COMPLETE COVERAGE
1. Which of the following is NOT one of the four basic functions of
management?
A. Planning
B. Organizing
C. Leading
D. Advertising
ANSWER : D. Advertising
Explanation: The four functions are planning, organizing, leading, and
controlling. Advertising is a marketing activity.
2. A mission statement is best described as a statement of
A. next quarter's projected earnings
B. an organization's fundamental purpose and reason for existing
C. the firm's organizational chart
D. the company's legal obligations
ANSWER : B. an organization's fundamental purpose and reason
for existing
Explanation: A mission statement explains why the organization exists
and what it does.
3. In a SWOT analysis, strengths and weaknesses refer to
A. external economic trends
B. government regulations only
C. internal factors within the organization
D. competitors' resources
ANSWER : C. internal factors within the organization
Explanation: Strengths and weaknesses are internal; opportunities and
threats are external.
Page 1 of 53
, BUS 250
4. The number of subordinates who report directly to a manager is called
the
A. span of control
B. chain of command
C. unity of command
D. line of authority
ANSWER : A. span of control
Explanation: Span of control is the number of employees a manager
directly supervises.
5. Which level of management is mainly responsible for setting long-term
strategic direction?
A. First-line managers
B. Supervisors
C. Team leaders
D. Top managers
ANSWER : D. Top managers
Explanation: Top managers, such as the CEO and vice presidents, set
strategy for the whole organization.
6. Douglas McGregor's Theory X assumes that employees
A. are naturally self-motivated and seek responsibility
B. generally dislike work and must be controlled or threatened
C. work best without any supervision
D. care more about creativity than pay
ANSWER : B. generally dislike work and must be controlled or
threatened
Explanation: Theory X takes a pessimistic view of workers, while Theory
Y takes an optimistic one.
7. According to Maslow's hierarchy of needs, which need sits at the top?
A. Safety
B. Social belonging
C. Self-actualization
D. Physiological
ANSWER : C. Self-actualization
Explanation: Self-actualization, the drive to reach one's full potential, is
the highest level.
Page 2 of 53
, BUS 250
8. In Herzberg's two-factor theory, hygiene factors such as salary and
working conditions
A. prevent dissatisfaction but do not by themselves motivate
B. are the main source of long-term motivation
C. only apply to executives
D. have no effect on employee attitudes
ANSWER : A. prevent dissatisfaction but do not by themselves
motivate
Explanation: Hygiene factors remove dissatisfaction; motivators like
achievement and recognition create satisfaction.
9. Who is known as the father of scientific management?
A. Henri Fayol
B. Elton Mayo
C. Max Weber
D. Frederick W. Taylor
ANSWER : D. Frederick W. Taylor
Explanation: Taylor promoted time-and-motion study and efficiency in
the early 1900s.
10. Which theorist is associated with 14 principles of management,
including unity of command and division of work?
A. Frederick Taylor
B. Henri Fayol
C. Abraham Maslow
D. Peter Drucker
ANSWER : B. Henri Fayol
Explanation: Fayol, a French mining engineer, described these
administrative principles.
11. A transformational leader is one who
A. relies only on rewards and punishments
B. avoids making changes to procedures
C. inspires followers through vision and shared purpose
D. delegates every decision
ANSWER : C. inspires followers through vision and shared purpose
Explanation: Transformational leaders motivate people to go beyond
self-interest for the organization.
Page 3 of 53
, BUS 250
12. When decision-making authority is concentrated at the top of an
organization, the structure is described as
A. centralized
B. decentralized
C. flat
D. matrix
ANSWER : A. centralized
Explanation: Centralization keeps most decisions with top management.
13. The unbroken line of authority that links every employee to the top of
the organization is the
A. span of control
B. staff function
C. delegation process
D. chain of command
ANSWER : D. chain of command
Explanation: The chain of command defines who reports to whom.
14. Management by objectives (MBO) involves
A. managers setting all goals without employee input
B. superiors and subordinates jointly setting goals and reviewing
progress
C. eliminating performance reviews
D. focusing only on financial targets
ANSWER : B. superiors and subordinates jointly setting goals and
reviewing progress
Explanation: MBO is a collaborative goal-setting process tied to
performance evaluation.
15. Delegation is the process of
A. doing the work personally to ensure quality
B. hiring additional staff
C. assigning responsibility and authority to others
D. reorganizing departments
ANSWER : C. assigning responsibility and authority to others
Explanation: Delegation passes tasks and the authority to complete them
to subordinates.
Page 4 of 53
