Business Organization and Management
Summative Evaluation
Joanna Reader & Mary Jane MacPherson
1. Which of the following is a liability to a business owner?
a. The amount that a business owes you
b. The amount that you owe a supplier
c. The equipment your business just purchased
d. The inventory of your business
2. Which of the following is not an example of a service business?
a. An equipment rental business
b. An insurance agency
c. A home cleaning business
d. A grocery store
3. Scheduling fewer lifeguards at a swimming pool during a particularly cool summer is an
example of
a. Matching supply and demand
b. Matching cost and price
c. Overemphasizing personnel decisions
d. A poor management decision
4. A difference between a product and a service is
a. A service is intangible and a product is tangible
b. A service can be separated from the person supplying it and a product cannot
c. The quality of a service depends more on who provides it than does a product
d. A service can be stored longer than a product
e.
5. Which of the following is NOT one of the common responsibilities of supervisors?
a. Communicating goals and directions
b. Motivating employees to work effectively
c. Keeping management informed of employee ideas and concerns
d. Developing long –range plans for the organization
6. Which of the following activities of supervisors relates most directly to quality control?
a. Developing work schedules
b. Developing and checking standards
c. Using effective listening skills
d. Setting priorities so the most important work is done
Business Organization and Management
Summative Evaluation
Joanna Reader & Mary Jane MacPherson
7. The management function responsible for arranging resources and relationships between
departments and employees and defining the responsibility each has for accomplishing the
job is
a. Planning
b. Organizing
c. Directing
d. Controlling
8. A visual device that shows the structure of an organization and the relationships among
workers and divisions of work is
a. A schedule
b. A strategic plan
c. An organizational chart
d. An operational plan
9. Specialists are available to give advice and assistance to managers in the
a. Line organization
b. Line and staff organization
c. Project organization
d. Decentralized organization
10. Which of the following is NOT a part of the controlling process?
a. Establishing standards
b. Motivating employees
c. Measuring and comparing performance
d. Taking corrective action
11. Which of the following describes Total Quality Management?
a. The focus is on how work gets done rather than what is done
b. There is a focus on the customer
c. There is company support of continued education and training
d. All of the above describe Total Quality Management
12. Unlimited liability refers to your financial responsibility in the business organization of
a. A sole proprietorship
b. A corporation
c. A partnership
d. A franchise
e. Both a sole proprietorship and partnership
Business Organization and Management
Summative Evaluation
Joanna Reader & Mary Jane MacPherson
13. The articles of partnership would be signed by the
a. Board of Directors
b. The producer and wholesaler
c. The franchisee and franchisor
d. The co-partners
e. The stockholders
14. An example of a franchise is
a. IBM
b. Pizza Hut
c. Coca-Cola
d. Ray’s Shoes
e. U.S. Post Office
15. An example of a corporation is
a. IBM
b. Pizza Hut
c. Hartford Union High School
d. Ray’s Shoes
e. U.S. Post Office
16. A legal agreement that gives an individual the right to market a company’s products or services
in a particular area is called a
a. A sole proprietorship
b. A corporation
c. A partnership
d. A franchise
17. What is limited liability?
a. Personal protection of liabilities is sued
b. Personal protection of assets if sued
c. No personal protection of liabilities if sued
d. No personal protection of assets if sued
18. What type of business does not offer limited liability
a. LLC
b. Corporation
c. Partnership
d. Limited Partnership
Business Organization and Management
Summative Evaluation
Joanna Reader & Mary Jane MacPherson
19. An effective print advertisement will include the following:
a. Logo/Slogan
b. Headline
c. Management Structure
d. Copy
e. Illustration
20. In business, it’s very important to know who your customers are. This is called your
a. Focus group
b. Customer service
c. Target market
d. Competition