NOCTI General Management (2026) COMPLETE
STUDY GUIDE WITH PRACTICE TOPICS & KEY
CONCEPT EXPLANATIONS <UPDATED VERSION>
1. What is the primary purpose of a business plan?
a) To secure funding from investors
b) To serve as an internal roadmap for the business
c) To outline the company's marketing strategy
d) All of the above
(✓) d) All of the above
2. A Sole Proprietorship is characterized by:
a) Limited liability for the owner
b) Separate legal entity from the owner
c) The owner and the business are legally the same
d) Complex and costly to set up
(✓) c) The owner and the business are legally the same
3. What is a key advantage of a corporation (C-Corp)?
a) Profits are taxed only once
b) Limited liability for shareholders
c) Minimal government regulation
d) Simple and inexpensive to form
(✓) b) Limited liability for shareholders
4. Corporate Social Responsibility (CSR) refers to:
a) A company's obligation to maximize profits for shareholders
b) A business model that focuses solely on environmental issues
c) A company's efforts to improve society and act ethically
d) A government-mandated set of regulations
(✓) c) A company's efforts to improve society and act ethically
,5. A code of ethics is important for a company because it:
a) Guarantees legal compliance
b) Eliminates all unethical behavior
c) Establishes a culture of integrity and guides decision-making
d) Is required by the Securities and Exchange Commission (SEC)
(✓) c) Establishes a culture of integrity and guides decision-making
6. A stakeholder is defined as:
a) Anyone who owns shares of a company's stock
b) The government agencies that regulate a business
c) Any person or group affected by or with an interest in a company's actions
d) Only the top-level managers of a company
(✓) c) Any person or group affected by or with an interest in a company's actions
7. Which of the following is an example of an external stakeholder?
a) The CEO
b) A line manager
c) A customer
d) An employee
(✓) c) A customer
8. What is the primary goal of a non-profit organization?
a) To maximize profit for owners
b) To achieve a specific social, educational, or charitable mission
c) To outperform competitors in the market
d) To pay the highest possible salaries to its employees
(✓) b) To achieve a specific social, educational, or charitable mission
9. A business's "mission statement" typically describes:
a) Its long-term financial goals
b) Its core purpose and what it does every day
c) A future state it wants to achieve
d) Its specific product features
(✓) b) Its core purpose and what it does every day
,10. A "vision statement" describes:
a) The company's current market position
b) The ethical guidelines for employees
c) Where the company aspires to be in the future
d) The company's budget for the next year
(✓) c) Where the company aspires to be in the future
11. Which of the following is a macroenvironmental factor analyzed in a PESTLE
analysis?
a) Supplier power
b) Employee morale
c) Technological advancements
d) Internal company culture
(✓) c) Technological advancements
12. In SWOT analysis, "Strengths" and "Weaknesses" are:
a) External to the organization
b) Internal to the organization
c) Always financial in nature
d) Outside of the company's control
(✓) b) Internal to the organization
13. A company offering a bribe to a foreign official to secure a contract is
violating:
a) The Clayton Act
b) The Foreign Corrupt Practices Act (FCPA)
c) The Sherman Antitrust Act
d) The Sarbanes-Oxley Act
(✓) b) The Foreign Corrupt Practices Act (FCPA)
14. What does "sustainability" in business typically refer to?
a) The ability to pay short-term debts
b) Practices that meet present needs without compromising future generations
c) Maintaining a constant level of sales
, d) Using only renewable energy sources
(✓) b) Practices that meet present needs without compromising future
generations
15. A franchise is a business model where:
a) A company sells its products directly to consumers online.
b) An individual buys the right to use a company's name and business model.
c) Two companies merge to form a new entity.
d) A company issues stock to the public for the first time.
(✓) b) An individual buys the right to use a company's name and business
model.
16. The "Triple Bottom Line" framework measures performance based on:
a) Profit, Profit, Profit
b) People, Planet, Profit
c) Product, Price, Promotion
d) Planning, Organizing, Leading
(✓) b) People, Planet, Profit
17. Which type of business organization has the most complex regulatory
requirements?
a) Sole Proprietorship
b) Partnership
c) Limited Liability Company (LLC)
d) Corporation
(✓) d) Corporation
18. An ethical dilemma occurs when:
a) A law is clearly broken.
b) A choice must be made between two conflicting but arguably valid options.
c) A company's profits are declining.
d) An employee is late for work.
(✓) b) A choice must be made between two conflicting but arguably valid
options.
STUDY GUIDE WITH PRACTICE TOPICS & KEY
CONCEPT EXPLANATIONS <UPDATED VERSION>
1. What is the primary purpose of a business plan?
a) To secure funding from investors
b) To serve as an internal roadmap for the business
c) To outline the company's marketing strategy
d) All of the above
(✓) d) All of the above
2. A Sole Proprietorship is characterized by:
a) Limited liability for the owner
b) Separate legal entity from the owner
c) The owner and the business are legally the same
d) Complex and costly to set up
(✓) c) The owner and the business are legally the same
3. What is a key advantage of a corporation (C-Corp)?
a) Profits are taxed only once
b) Limited liability for shareholders
c) Minimal government regulation
d) Simple and inexpensive to form
(✓) b) Limited liability for shareholders
4. Corporate Social Responsibility (CSR) refers to:
a) A company's obligation to maximize profits for shareholders
b) A business model that focuses solely on environmental issues
c) A company's efforts to improve society and act ethically
d) A government-mandated set of regulations
(✓) c) A company's efforts to improve society and act ethically
,5. A code of ethics is important for a company because it:
a) Guarantees legal compliance
b) Eliminates all unethical behavior
c) Establishes a culture of integrity and guides decision-making
d) Is required by the Securities and Exchange Commission (SEC)
(✓) c) Establishes a culture of integrity and guides decision-making
6. A stakeholder is defined as:
a) Anyone who owns shares of a company's stock
b) The government agencies that regulate a business
c) Any person or group affected by or with an interest in a company's actions
d) Only the top-level managers of a company
(✓) c) Any person or group affected by or with an interest in a company's actions
7. Which of the following is an example of an external stakeholder?
a) The CEO
b) A line manager
c) A customer
d) An employee
(✓) c) A customer
8. What is the primary goal of a non-profit organization?
a) To maximize profit for owners
b) To achieve a specific social, educational, or charitable mission
c) To outperform competitors in the market
d) To pay the highest possible salaries to its employees
(✓) b) To achieve a specific social, educational, or charitable mission
9. A business's "mission statement" typically describes:
a) Its long-term financial goals
b) Its core purpose and what it does every day
c) A future state it wants to achieve
d) Its specific product features
(✓) b) Its core purpose and what it does every day
,10. A "vision statement" describes:
a) The company's current market position
b) The ethical guidelines for employees
c) Where the company aspires to be in the future
d) The company's budget for the next year
(✓) c) Where the company aspires to be in the future
11. Which of the following is a macroenvironmental factor analyzed in a PESTLE
analysis?
a) Supplier power
b) Employee morale
c) Technological advancements
d) Internal company culture
(✓) c) Technological advancements
12. In SWOT analysis, "Strengths" and "Weaknesses" are:
a) External to the organization
b) Internal to the organization
c) Always financial in nature
d) Outside of the company's control
(✓) b) Internal to the organization
13. A company offering a bribe to a foreign official to secure a contract is
violating:
a) The Clayton Act
b) The Foreign Corrupt Practices Act (FCPA)
c) The Sherman Antitrust Act
d) The Sarbanes-Oxley Act
(✓) b) The Foreign Corrupt Practices Act (FCPA)
14. What does "sustainability" in business typically refer to?
a) The ability to pay short-term debts
b) Practices that meet present needs without compromising future generations
c) Maintaining a constant level of sales
, d) Using only renewable energy sources
(✓) b) Practices that meet present needs without compromising future
generations
15. A franchise is a business model where:
a) A company sells its products directly to consumers online.
b) An individual buys the right to use a company's name and business model.
c) Two companies merge to form a new entity.
d) A company issues stock to the public for the first time.
(✓) b) An individual buys the right to use a company's name and business
model.
16. The "Triple Bottom Line" framework measures performance based on:
a) Profit, Profit, Profit
b) People, Planet, Profit
c) Product, Price, Promotion
d) Planning, Organizing, Leading
(✓) b) People, Planet, Profit
17. Which type of business organization has the most complex regulatory
requirements?
a) Sole Proprietorship
b) Partnership
c) Limited Liability Company (LLC)
d) Corporation
(✓) d) Corporation
18. An ethical dilemma occurs when:
a) A law is clearly broken.
b) A choice must be made between two conflicting but arguably valid options.
c) A company's profits are declining.
d) An employee is late for work.
(✓) b) A choice must be made between two conflicting but arguably valid
options.
