Business Management and Strategy: Core Concepts Q&A

This document presents foundational knowledge covering key areas of business administration, including organizational structure, strategic planning, marketing, and finance, structured as a series of questions and definitive answers.

Management and Strategic Fundamentals

22. The position of a manager of a company is characterized by: Low-skilled.
23. Identify the incorrect statement regarding hierarchy: The principle of hierarchy is the creation of different levels ordered from the authority is shared informally.
24. Identify the incorrect statement regarding the drawbacks of the control function: The 2 above (it has a cost and is repressive).
25. In the SWOT analysis: Opportunities refer to the external analysis of the company.

Marketing, Organization, and Finance

1. The market potential of a company consists of: c) Current customers and those who may become so with a proper marketing policy.
2. The point is a source of information: c) Primary external.
3. The useful business function that creates time, place, and possession is: b) Distribution.
4. Promotion is a variable: a) Controllable and tactical.
5. Retailers are: c) Intermediaries who sell directly to consumers.
6. A kind of matrix organization involves: c) Combining two variables: functions and projects.
7. Budget organization belongs to the function of: b) Planning.
8. In the planning function: a) Set objectives and determine the means to achieve them.
9. McGregor's Theory X states that people: b) Like to have someone rule over them.
10. A company has a competitive advantage when: c) It has a feature that the rest of the competitors lack.
11. The competitive strategy of differentiation means that: b) The company uses product attributes to differentiate it from its competitors.
12. The overall business environment is made up of: c) Competitors, customers, intermediaries, and suppliers.
13. Competitors of a company belong to the: b) Specific environment.
14. The first document required to set up a company is: c) Certification of the company name.
15. To justify the economic stability of the company's future: a) Find the threshold of profitability.
16. The business plan aims to: c) Design an efficient inventory management.
17. The company's financial viability is determined by: b) The relationship between the company's planning, investment, and financing.
18. The intensity of competition in a sector will be greater if: a) There are few competitors.
19. In agriculture, a common system of remuneration used is: a) Payment by the piece (piece-rate pay).
20. The exercise of influence and power in an organization is: b) Leadership.