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Business Acumen Assessment Questions
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Business Acumen Assessment Questions
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BUSINESS ACUMEN ASSESSMENTQUESTIONS WITH VERIFIED ANSWERS
BY EXPERTS
oWhat is Management? - Management is the process of achieveving organizational obhectives through
people and other resources. The managers job is to combine human and technical resources in the best
way possible to achieve the companys goals.
How do the jobs of top managers, middle managers, and supervisory managers differ? - Top managers
develop long-range plans, set a direction for their organization, and inspire all employees to achieve the
companys vision. Middle managers focus on specific operations, products, or customers. They develop
procedures to implement the companys strategic plans. Supervisory managers interact dierectly with
nonmanagerial employees who produce and sell the companys goods and services. They are responsible
for implementing the plans developed by middle managers and motivating workers to accomplish daily,
weekly and monthly goals.
What is the relationship between the manager's planning and controlling functions? - The basic purpose
of controlling is to assess the success of the planning function. Controlling also provides feedback for
future rounds of planning.
What is the structure of the finance function at a typical company? - The person in charge of the finance
function of a company has the title of chief financial officer (CFO) and generally reports directly to the
company's chief executive officer. Reporting to the CFO are the treasurer, the controller, and the vice
president for financial management.
What is meant by a vision for the company? - A vision serves as the target for a companys actions,
helping direct the company toward opportunities and differentiating it from its competitors.
Why is it important for a top executive to set high ethical standards? - High ethical standards often result
in a stable workforce, job satisfaction, and customer loyalty.
Outline the planning process. - Some plans are very broad and long range, focusing on key organizational
objectives; others are more detailed and specify how particular objectives will be achieved. from the
mission statement to objectives to specific plans, each phase must fit into a comprehensive planning
framework.
Describe the purpose of tactical planning. - The purpose of tactical planning is to determine which short
term activites should be implemented to accomplish the companys overall strategy.
Compare the kinds of plans made by top managers and middle managers. How does their focus differ? -
Top managers focus on long-range, strategic plans. In contrast, middle-level managers focus on short-
term tactical planning.
what is the purpose of a mission statement? - A mission statement is a written explanation of a
companys purpose, the reason it exists, the customers it will serve, and how it is different from
competitors. A mission statement guides the actions of company managers and employees.
,Which of a company's characteristics does a SWOT analysis compare? - A SWOT analysis determines a
companys strengths, weaknesses, opportunities, and threats relative to its competitors.
How do managers use objectives? - Objectives set guideposts by which managers define the
organizations desired performance in such areas as new-product development, sales, customer service
and employee satisfaction.
Distinguish between programmed and nonprogrammed decisions. - Programmed decisions, such as
reordering office suppies, are simple and happen frequently, so procesures for them can streamline the
process. Nonprogrammed decisions, such as entering a new market or developing a new product,
require more individual evalutation.
What are the steps in the deicsion making process? - The decision-making steps are recognition of a
problem or opportunity, development of alternatives, evaluation of alternatives, selection and
implementation of the chosen alternative, and follow-up to determine effectiveness of the decisions.
How is leadership defined? - Leadership means directing or inspiring people to attain certain
organizational goals. Effective leaders share several traits, such as empathy, self-awareness, and
objectivity in dealing with others. Leaders also use the power of their jobs, expertise, and experience to
influence others.
Identify the styles of leadership as they appear along a continuum of greater or lesser employee
participation. - At one end of the continuum, autocratic leaders make decisions without consulting
employees. In the miffle of the continuum, democratic leaders ask employees for suggestions and
encourage participation. At the other end of the continuum, free-rein leaders leave most decisions to
their employees.
What is the relationship between leadership style and corporate culture? - The best leadership style to
adopt often depends on the organizations corporate culture and its system of principles, beliefs, and
values. Managerial philosophies, communications networks, and workplace enviornments and practices
all influence corporate culture.
How do managers reinforce corporate culture? - Managers use symbols, rituals, ceremonies, and stories
to reinforce corporate culture.
What is the purpose of an organization chart? - An organization chart is a visual representation of a
companys structure that illustrates job positions and functions.
What are the five major forms of departmentalization? - Product departmentalization organizes units by
the different goods and services a company offers. Geographical departmentalization organizes units by
geographical regions. Customer departmentalization organizes units by different types of customers.
Functional departmentalization organizes units by business activites such as finance, marketing, human
resources, and production. Process departmentalization organizes units by the steps or work processes it
takes to complete production or provide a service.
What does a span of management mean? - The span of management, or span of control, is the number
of employees a manager supervises.
, Define microeconomics and macroeconomics. - Microeconomics is the study of economic behavior
among individual consumers, families, and businesses. Macroeconomics is the study of a nations overall
economic issues and how an economic system maintains and allocates its resources.
Explain demand and supply curves. - A demand curve is a graph of the amount of a product that buyers
will purchase at different prices. A supply curve shows the relationship between different prices and the
quantities that sellers will offer for sale, regardless of demand.
How do factors of production influence the overall supply of goods and services? - A change in the cost
or availability of any of the inputs considered to be factors of production can shift the entire supply
curve, either increasing or decreasing the amount available at every price.
What is the difference between pure competition and monopolistic competition? - Pure competition is a
market structure in which large numbers of buyers and sellers exchange homogeneous products, and no
single participant has a significant impact on price. Monopolistic competition is a market structure in
which large numbers of buyers and sellers exchange differentiated (heterogenous) products, so each
participant has some control over price.
On which economic system is the U.S. economy based? - The U.S. economy is based on the private
enterprise system.
What is privatization? - Privatization is the conversion of government-owned and operated companies
into privately held businesses.
Describe the four stages of the business cycle. - The four stages are prosperity, recession, depression,
and recovery. Prosperity is characterized by low unemployment and strong consumer confidence.
Recession may include consumers postponing major purchases, layoffs, and decreased household
savings. A depression occurs when an economic slowdown continues in a downward spiral over a long
period of time. In recovery, consumer spending increases and business activity accelerates.
What are some measures that economists use to determine the health of an economy? - Gross domestic
product (GPD), general level of prices, core inflation rate, the consumer price index, and the
unemployment rate are all measures used to determine the health of an eceonomy.
What is the difference between an expansionary monetary policy and a restrictive monetary policy? - An
expansionary monetary policy increases the money supply in an effort to cut the cost of borrowing. A
restrictive monetary policy reduces the money supply to curb rising prices, overexpansion, and concerns
about overly rapid economic growth by increasing the cost of borrowing.
What are the three primary sources of government funds? - The U.S. government acquires funds through
taxes, fees, and borrowing.
Does a balanced busget erase the national debt? - No, a balanced budget does not erase the national
debt; it just doesn't increase it.
Why is virtually no country an economic island these days? - No business or country is an economic
island because many goods and services travel across national borders. Companies now are becoming
multinational firms.
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