Unit 3: General Management Practices

Which type of business is owned by one person who keeps all the profits but also takes all the risks?

• Corporation

• Partnership

• Sole Proprietorship

• Nonprofit

Which type of business gives owners limited liability but is taxed like a partnership?

• Corporation

• LLC

• Nonprofit

• Sole Proprietorship

What is one big advantage of a corporation?

• Owners have limited liability

• It is easy to start with little paperwork

• The owner keeps all the profits directly

• It has no government rules

What do nonprofits do with extra money (profits)?

• Give it to shareholders

• Pay it all to the government

• Reinvest it into their mission

• Share it with one owner

In a partnership, who gets the profits?

• Only the government

• Only one partner

• All partners share them

• Only the customers

A vertical management structure means:

• A tall chain of command with many levels of managers

• Few layers of managers and open communication

• No managers at all

• Teams organized by projects

A horizontal management structure is usually best for:

• Creative teams that need to work together

• Very large companies with strict rules

• Businesses with a tall chain of command

• Factories with many managers

Which structure is slower at making decisions because there are many levels of approval?

• Vertical

• Horizontal

• Nonprofit

• Sole Proprietorship

A small new business with only 12 workers is most likely to use a:

• Horizontal structure

• Vertical structure

• Nonprofit structure

• Corporate hierarchy

Which function of management involves setting goals and determining how to achieve them?

• Organizing

• Planning

• Leading

• Controlling