Basic Business Concepts Review

Which of the following is NOT an advantage of a corporation?

• Easier to raise wealth

• Shared advertising expenses

• Limited liability for each owner

• Easier for people to enter or leave the business

A system used to record and report financial transactions of a business is known as which of the following?

• Management

• Production

• Decision making

• Accounting

All consumer goods are required for survival.

• True

• False

A __________ business structure is divided by products or services produced and then subdivided by functions.

• Divisional

• Boundaryless

• Matrix

• Functional

David is a supervisor and has direct authority over ten employees. Which type of authority is implemented?

• Functional

• Line

• Informal

• Staff

Which of the following is NOT one of the four basic organizational levels?

• Top management

• Operative employees

• Lower managers

• Supervisors

Which of the following is a primary function of management?

• Marketing

• Planning

• Accounting

• Production

In a matrix organizational structure, employees report to:

• Only one manager

• Multiple managers

• No manager

• A board of directors

Which of the following is a characteristic of a boundaryless organization?

• Rigid hierarchy

• Flexible and adaptive

• Strict departmentalization

• Centralized decision-making

Which of the following is an example of a consumer good?

• Factory machinery

• Office supplies

• Personal computer

• Raw materials