BUSINESS MANAGEMENT 2024/2025 Trial Test Questions (50) Objective Questions

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Select the correct options for each Questions below

1. Which of the following best defines business management?

a) The process of maximizing profits b) The process of planning, organizing, leading, and controlling resources to achieve organizational goals c) The process of product development d) The process of advertising and marketing

2. Which of the following is not a function of management?

a) Planning b) Supervising c) Controlling d) Marketing

3. What is the purpose of strategic management?

a) To maintain daily operations b) To formulate and implement strategies to achieve organizational objectives c) To handle employee conflicts d) To manage financial resources

4. Which of the following is a characteristic of effective leadership?

a) Micromanaging every task b) Lack of communication with subordinates c) Empowering employees and fostering teamwork d) Making decisions in isolation

5. What is the primary focus of organizational culture?

a) Maximizing profits b) Fostering innovation c) Promoting employee satisfaction and retention d) Implementing new technologies

6. Which of the following is not a component of SWOT analysis?

a) Strengths b) Weaknesses c) Opportunities d) Targets

7. Which of the following best describes the concept of economies of scale?

a) The ability of a business to lower average costs by increasing production volume b) The ability of a business to offer lower prices than its competitors c) The ability of a business to diversify its product line d) The ability of a business to increase sales revenue

8. What is the purpose of a business plan?

a) To secure funding from investors b) To outline the company's goals and how they will be achieved c) To satisfy legal requirements d) All of the above

9. Which of the following is an advantage of a sole proprietorship?

a) Limited liability b) Unlimited liability c) Ease of formation d) Access to additional capital

10. What is the purpose of market segmentation?

a) To decrease competition b) To increase advertising costs c) To identify and target specific customer groups d) To reduce product variety

11. Which of the following is not a characteristic of a partnership?

a) Unlimited liability b) Shared decision-making c) Limited life d) Separate legal entity

12. Which of the following is not a component of the marketing mix?

a) Price b) Promotion c) People d) Planning

13. Which of the following is not a characteristic of perfect competition?

a) Many buyers and sellers b) Homogeneous products c) Barriers to entry d) Perfect information

14. What is the primary goal of financial management?

a) Maximizing profits b) Increasing market share c) Maximizing shareholder wealth d) Minimizing costs

15. Which of the following is not a form of organizational structure?

a) Matrix structure b) Functional structure c) Hierarchical structure d) Linear structure

16. Which of the following is not a role of human resource management?

a) Recruitment and selection b) Training and development c) Financial management d) Performance appraisal

17. What is the role of operations management in a business?

a) To manage the financial resources b) To manage the production process and resources efficiently c) To handle customer complaints d) To promote the company's products

18. What is the purpose of quality control?

a) To reduce production costs b) To increase customer satisfaction by ensuring product reliability and consistency c) To promote the company's brand d) To expand market share

19. What is the purpose of risk management?

a) To avoid all risks b) To minimize potential losses c) To increase investment returns d) To ignore potential threats

20. What is the primary focus of corporate social responsibility (CSR)?

a) Maximizing profits b) Minimizing costs c) Creating shared value for society and the business d) Reducing taxes

21. What is the significance of branding in marketing?

a) It increases production costs b) It creates brand loyalty among customers c) It decreases product quality d) It limits market reach

22. Which of the following is a characteristic of a multinational corporation (MNC)?

a) Limited market presence b) Single-country operations c) Centralized decision-making d) Operations in multiple countries

23. What is the role of market research in business management?

a) To increase advertising costs b) To identify customer needs and preferences c) To reduce production costs d) To ignore market trends

24. What is the significance of employee training and development?

a) It increases turnover rates b) It decreases productivity c) It enhances employee skills and performance d) It leads to increased operational costs

25. Which of the following is not a function of financial management?

a) Budgeting b) Investment management c) Marketing d) Financial reporting

26. What is the purpose of financial reporting?

a) To minimize taxes b) To provide information about the company's financial performance c) To attract investors d) To increase profits

27. What is the primary focus of supply chain management?

a) Maximizing profits b) Reducing production costs c) Improving efficiency and customer satisfaction through effective management of goods and services flow d) Minimizing employee turnover

28. What is the purpose of a SWOT analysis?

a) To identify opportunities and threats b) To evaluate the company's strengths and weaknesses c) To develop strategic plans d) All of the above

29. Which of the following is a characteristic of a monopoly?

a) Many sellers b) Identical products c) No barriers to entry d) Single seller

30. What is the role of innovation in business management?

a) To maintain the status quo b) To increase production costs c) To create new products, services, or processes d) To limit market reach

31. Which of the following is a characteristic of monopolistic competition?

a) Homogeneous products b) Many sellers c) Identical products d) No barriers to entry

32. What is the purpose of break-even analysis?

a) To increase costs b) To determine the minimum price at which a product must be sold to cover costs c) To discourage production d) To minimize profits

33. What is the significance of ethics in business management?

a) It increases profits b) It enhances corporate image and reputation c) It minimizes employee turnover d) It decreases market reach

34. Which of the following is not a function of advertising?

a) To inform consumers about products or services b) To persuade consumers to buy a product or service c) To discourage consumption d) To remind consumers about a product or service

35. What is the primary goal of strategic management?

a) To minimize competition b) To maximize profits in the short term c) To achieve competitive advantage and long-term success d) To minimize risks

36. What is the purpose of customer relationship management (CRM)?

a) To increase production costs b) To improve customer satisfaction and loyalty c) To reduce product quality d) To minimize customer interaction

37. What is the purpose of cash flow management?

a) To maximize debt b) To minimize profits c) To ensure the company has enough cash to meet its obligations d) To discourage investment

38. Which of the following is not a factor affecting pricing decisions?

a) Cost of production b) Competition c) Government regulations d) Brand loyalty

39. What is the purpose of performance appraisal?

a) To discourage employee development b) To assess employee productivity and effectiveness c) To minimize employee satisfaction d) To encourage employee turnover

40. What is the role of leadership in business management?

a) To discourage teamwork b) To promote conflict among employees c) To inspire and motivate employees to achieve company goals d) To minimize employee satisfaction

41. What is the purpose of product differentiation?

a) To discourage competition b) To reduce advertising costs c) To make products stand out from competitors d) To decrease product quality

42. What is the significance of organizational culture?

a) It discourages employee engagement b) It promotes turnover c) It influences employee behavior, morale, and performance d) It minimizes organizational structure

43. What is the role of negotiation in business management?

a) To discourage collaboration b) To promote conflict c) To reach agreements that benefit all parties involved d) To minimize communication

44. What is the purpose of benchmarking?

a) To discourage performance improvement b) To evaluate performance against competitors or industry standards c) To decrease efficiency d) To ignore best practices

45. What is the role of technology in business management?

a) To minimize productivity b) To discourage innovation c) To increase efficiency and streamline operations d) To minimize communication

46. What is the purpose of employee empowerment?

a) To discourage accountability b) To promote micromanagement c) To increase employee involvement, motivation, and satisfaction d) To discourage collaboration

47. What is the role of feedback in business management?

a) To discourage performance improvement b) To minimize employee engagement c) To provide information for improvement and decision-making d) To discourage communication

48. What is the purpose of strategic alliances in business?

a) To discourage cooperation b) To minimize market reach c) To achieve mutual benefits and competitive advantage d) To increase competition

49. What is the significance of risk management in business?

a) It encourages reckless decision-making b) It minimizes uncertainty and potential losses c) It discourages innovation d) It increases competition

50. What is the purpose of quality management in business?

a) To discourage customer satisfaction b) To increase defects c) To improve processes and products/services to meet or exceed customer expectations d) To minimize efficiency