SAB Lesson #5.1: Organizational and Management Team Plan

Front

Which of the following best describes the legal structure of a business that limits the personal liability of its owners and is taxed as a separate entity? Options: Sole Proprietorship, Corporation, Partnership, Cooperative

Back

Corporation

Front

What is the primary purpose of an organizational chart in a business plan?

Back

To show the hierarchy and reporting lines within the organization

Front

If a business is structured as an LLC, what does this imply about its legal and tax responsibilities?

Back

The business is taxed as a partnership, and owners have limited liability.

Front

Consider a company with a decentralized management approach. What is a likely characteristic of its decision-making process?

Back

Decisions are made collaboratively across various levels

Front

Why might a business include an advisory board in its organizational plan?

Back

To provide strategic guidance and expertise

Front

Analyze the potential impact of not having a succession plan in place for a key leadership position in a company.

Back

It may lead to disruptions and uncertainty in the company's operations

Front

Evaluate the importance of detailing the skills and experience required for various roles in the staffing plan of a business.

Back

It ensures that the right candidates are hired for the right positions.

Front

How does the ownership distribution section of a business plan benefit potential investors?

Back

It clarifies who holds financial stakes and decision-making power.

Front

What strategic advantage does a company gain by having a well-defined management team in its business plan?

Back

It enhances the company's ability to attract investors and partners.

Front

In what way does a staffing plan contribute to the long-term growth of a business?

Back

By ensuring the company has the necessary human resources to scale operations