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MGM 101 FINAL EXAM 2026-2027 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
MGM 101 – Principles of Management FINAL EXAM 2026-2027
COMPLETE QUESTIONS AND VERIFIED SOLUTIONS – LATEST UPDATE THIS YEAR
EXAMINATION INSTRUCTIONS
This exam evaluates foundational knowledge of management principles, small business
operations, entrepreneurship, organizational environment, and social responsibility.
Each question has one correct answer.
Rationales are provided to explain the reasoning behind each answer.
EXAM QUESTIONS
Question 1
______ is a financing technique whereby entrepreneurs make do with as few resources as
possible and use other people's resources wherever they can.
A. Venture capital
B. Bootstrapping
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C. Crowdfunding
D. Angel investing
✅ Correct Answer: B
Rationale: Bootstrapping emphasizes resourcefulness by minimizing personal investment and
leveraging external resources to grow the business.
Question 2
Sameer is considering buying a franchise. One disadvantage he should be aware of is
_________.
A. High risk of failure
B. Lack of brand recognition
C. There is little room to develop your ideas
D. No access to training
✅ Correct Answer: C
Rationale: Franchises typically provide standardized systems, limiting entrepreneurial freedom
to innovate or implement original ideas.
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Question 3
A factor that contributes to small business success is ________.
A. Ignoring market research
B. Access to resources
C. Avoiding risk
D. Minimal customer feedback
✅ Correct Answer: B
Rationale: Availability of financial, human, and informational resources is critical for small
business survival and growth.
Question 4
Four factors contribute to small business failure: __________, neglect, weak control systems,
and ___________.
A. Inexperience; insufficient capital
B. Poor location; legal problems
C. Lack of advertising; competition
D. Overstaffing; low sales
✅ Correct Answer: A
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Rationale: Inexperience and insufficient capital are primary contributors to small business
failure, along with neglect and weak management controls.
Question 5
A major disadvantage of sole proprietorship is ______.
A. Limited funding options
B. Unlimited liability
C. Complex taxation
D. Regulatory oversight
✅ Correct Answer: B
Rationale: Owners of sole proprietorships are personally responsible for all debts and liabilities
of the business.
Question 6
An organizational boundary _____________.
A. Separates the organization from its environment
B. Defines the chain of command
C. Determines salaries
D. Limits marketing reach
MGM 101 FINAL EXAM 2026-2027 COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
MGM 101 – Principles of Management FINAL EXAM 2026-2027
COMPLETE QUESTIONS AND VERIFIED SOLUTIONS – LATEST UPDATE THIS YEAR
EXAMINATION INSTRUCTIONS
This exam evaluates foundational knowledge of management principles, small business
operations, entrepreneurship, organizational environment, and social responsibility.
Each question has one correct answer.
Rationales are provided to explain the reasoning behind each answer.
EXAM QUESTIONS
Question 1
______ is a financing technique whereby entrepreneurs make do with as few resources as
possible and use other people's resources wherever they can.
A. Venture capital
B. Bootstrapping
,Page 2 of 32
C. Crowdfunding
D. Angel investing
✅ Correct Answer: B
Rationale: Bootstrapping emphasizes resourcefulness by minimizing personal investment and
leveraging external resources to grow the business.
Question 2
Sameer is considering buying a franchise. One disadvantage he should be aware of is
_________.
A. High risk of failure
B. Lack of brand recognition
C. There is little room to develop your ideas
D. No access to training
✅ Correct Answer: C
Rationale: Franchises typically provide standardized systems, limiting entrepreneurial freedom
to innovate or implement original ideas.
,Page 3 of 32
Question 3
A factor that contributes to small business success is ________.
A. Ignoring market research
B. Access to resources
C. Avoiding risk
D. Minimal customer feedback
✅ Correct Answer: B
Rationale: Availability of financial, human, and informational resources is critical for small
business survival and growth.
Question 4
Four factors contribute to small business failure: __________, neglect, weak control systems,
and ___________.
A. Inexperience; insufficient capital
B. Poor location; legal problems
C. Lack of advertising; competition
D. Overstaffing; low sales
✅ Correct Answer: A
, Page 4 of 32
Rationale: Inexperience and insufficient capital are primary contributors to small business
failure, along with neglect and weak management controls.
Question 5
A major disadvantage of sole proprietorship is ______.
A. Limited funding options
B. Unlimited liability
C. Complex taxation
D. Regulatory oversight
✅ Correct Answer: B
Rationale: Owners of sole proprietorships are personally responsible for all debts and liabilities
of the business.
Question 6
An organizational boundary _____________.
A. Separates the organization from its environment
B. Defines the chain of command
C. Determines salaries
D. Limits marketing reach
