Chapter 06 Planning, Organizing, and Managing a Small Business
Answer Key
Multiple Choice Questions
1.
_____ should be the first management function performed by an effective business owner-
manager.
2.
The process of setting objectives and devising courses of action to achieve those
objectives is termed _____.
3.
_____ is the process of setting standards, measuring performance against standards, and
taking corrective action to see that planned performance is achieved.
4.
_____ provides comprehensive long-term direction to help a business accomplish its
mission.
5.
Strategic planning helps a business set its _____.
6.
Which of the following is an example of operational planning in a company?
7.
A SWOT analysis is used to:
8.
The external environment of a SWOT analysis consists of:
9.
A business’s _____ defines the present business scope and broadly describes an
organization’s present capabilities, focus, and activities.
10.
_____ give a short-term direction to a business and serve as benchmarks for measuring
performance.
11.
Many consultants and advisers push small companies to give more emphasis to their:
12.
A software engineer is part of a company’s _____ resources.
13.
Which of the following is part of a company’s financial resources?
14.
_____ are general statements that serve as a guide to managerial decision making and
supervisory activities.
15.
_____ provide employees with standing instructions for performing their jobs, comprise
detailed explanations of how to do the work properly, and inform in what order it should be
done.
16.
_____ set the requirements needed to follow strategies and accomplish objectives.
17.
The largest expense for companies selling products usually is related to:
18.
Financial planning involves:
19.
Raw materials used to produce products are:
20.
Expenses that do not alter in value as sales volume rise or fall are called _____.
21.
_____ is the amount of money available at a given time to pay expenses.
22.
In order to maintain control, the owner of a business should:
23.
Through equity financing, a company can be partly owned by:
24.
Which of the following statements is true of a company’s business plan?
25.
Matt plans to open a convenience store. The startup cost is approximately $10,000. Since
Matt has only $2,500 with him, he decides to invite two of his friends—Brett and Brian—to
join him in this venture. In this scenario, who should be in charge of writing the business
plan?
26.
A business plan can be successfully prepared by:
27.
The _____ is a part of a business plan that outlines the entire plan, its major objectives,
and the expected results.
28.
In which part of a business plan should the expected revenues be included?
29.
An effective business plan should be about _____.
30.
The oral presentation of any business plan should be:
True / False Questions
31.
Organizing should be the first management function performed while setting up a
business, as it sets the future course of action for all aspects of the business.
32.
Controlling is the process of setting standards and measuring performance against those
standards.
33.
Making a plan is not always the safest step as planning for the future is very risky.