Chapter 6 Quiz

_____ should be the first management function performed by an effective business owner-manager.

• Planning

• Organizing

• Staffing

• Controlling

The process of setting objectives and devising courses of action to achieve those objectives is termed _____.

• controlling

• planning

• organizing

• leading

____ is the process of setting standards, measuring performance against standards, and taking corrective action to see that planned performance is achieved.

• Planning

• Organizing

• Staffing

• Controlling

____ provides comprehensive long-term direction to help a business accomplish its mission.

• Strategic planning

• Operational planning

• Elemental cost planning

• Enterprise resource planning

Strategic planning helps a business set its ____.

• methods and procedures

• policies and visions

• missions

• budgets

Which of the following is an example of operational planning in a company?

• Formulating the mission statement

• Setting the personnel policy

• Selecting the type of business to enter

• Determining the financial needs

A SWOT analysis is used to:

• select human resources.

• restrict over-usage of physical capital.

• formulate the mission of a company.

• identify new markets.

The external environment of a SWOT analysis consists of:

• strengths and weaknesses.

• threats and weaknesses.

• opportunities and threats.

• opportunities and strengths.

A business's ______ defines the present business scope and broadly describes an organization's present capabilities, focus, and activities.

• budget

• policy

• operational plan

• mission statement

______ give a short-term direction to a business and serve as benchmarks for measuring performance.

• Budgets

• Objectives

• Strategies

• Missions