Part A- Multiple Choice (5 Questions)- Introduction to Business Functions
Choose the correct answer
1. Which of the following is the main aim of a business?
A. To provide free services
B. To earn a profit by offering products or services that exceed costs
C. To satisfy only wants
D. To eliminate competition
2. Which of the following best describes a need?
A. Designer clothing
B. Entertainment
C. Food and water
D. Dining out
3. A business that buys raw materials and converts them into finished products is
classified as:
A. Service business
B. Manufacturer
C. Wholesaler
D. Retailer
4. Which business ownership structure is a separate legal entity from its owners?
A. Sole trader
B. Partnership
C. Close Corporation
D. Company
5. If a business wants to ensure transparency in financial reporting, which functional
area is most responsible?
A. Marketing and Sales
B. Human Resources Management
C. Accounting and Finance
D. Operations
Part B- True or False (5 questions)- Introduction to business functions
Write “True” if the statement is correct, “False” if it is incorrect, and give a true answer if
false
1. A sole trader is taxed in his personal capacity, not the business.
2. Wants are essential items required for survival.
3. Human Resources Management is responsible for recruitment, training, and
maintaining working conditions.
4. Information systems only involve hardware and software, not people or procedures.
5. Thinking in terms of business processes helps managers view the organization from
the customer’s perspective.
Part C - Multiple Choice (10 Questions)
Choose the correct answer.
1. Which of the following best defines management?
a) Selling products to customers.
b) The process of achieving company goals through planning, organising, leading, and
controlling resources.
c) Hiring and firing employees.
d) Allocating money for marketing campaigns.
2. Which of the following is NOT a resource used in management?
a) Human resources
b) Financial resources
c) Raw materials and equipment
d) Political resources
3. Which managerial level is responsible for long-term strategic decisions?
a) First-line managers
b) Middle-level managers
c) Top-level managers
d) Supervisors
4. Which managerial level focuses on specific operations, products, or customer
groups?
a) Middle-level management
b) First-line management
c) Top-level management
d) None of the above
5. Which management function involves setting goals and deciding how to achieve
them?
a) Organising
b) Planning
c) Leading
d) Controlling
6. The SMART method is used to:
a) Control financial resources.
b) Create measurable and achievable goals.
c) Assign employees to tasks.
d) Improve leadership skills.
7. Which type of plan sets broad, long-term action directions for an organisation?
a) Tactical plan
b) Strategic plan
c) Functional plan
d) Operational plan
8. Which leadership style gives minimal supervision and allows employees to make
most decisions?
a) Autocratic
b) Democratic
c) Laissez-Faire
d) Directive
9. Which management function ensures actual performance matches goals?
a) Planning
b) Controlling
c) Leading
d) Organising
10. What is the relationship between planning and controlling?
a) They are unrelated processes.
b) Planning sets goals; controlling ensures they are met.
c) Controlling sets goals; planning checks results.
d) Both only happen at top management level.
Part D - True or False (10 Questions)
Write “True” if the statement is correct, “False” if it is incorrect and give a true answer if
false.
1. The main aim of a business is to make a profit and meet customer needs.
2. First-line managers develop long-term strategic plans for the company.
3. Planning helps reduce uncertainty and coordinate resources.
4. Tactical plans implement parts of the strategic plan.
5. Organising involves allocating and arranging resources so plans can be carried out.
6. Leading is about motivating employees to achieve goals.
7. Autocratic leadership encourages maximum employee participation.
8. Controlling ensures that actual performance matches set standards.
9. Planning and controlling are independent and unrelated.
10. The SMART method helps set specific, measurable, achievable, relevant, and time-
bound objectives.
Part E - Discussion Questions
1. Define management in your own words and list the four types of resources managers
use.
2. Identify the three managerial levels and give one example of a duty for each.
3. Describe the SMART method and create one example of a SMART goal for a
business.
4. Discuss how planning and controlling work together to achieve organisational goals.
5. In your opinion, which leadership style is most effective in a crisis situation and why?