AS Associate Of Science In Business Administration 4 — Questions and Answers
Question 1: Which leadership style involves the leader making all decisions without significant input from subordinates?
- Democratic
- Laissez-faire
- Autocratic (Correct answer)
- Transformational
Correct answer: Autocratic
Autocratic (authoritarian) leadership involves centralized decision-making with little or no employee participation.
Question 2: In supply chain management, 'just-in-time' (JIT) inventory aims to:
- Maximize warehouse stock levels
- Receive goods only as they are needed in the production process (Correct answer)
- Eliminate supplier relationships
- Increase safety stock buffers
Correct answer: Receive goods only as they are needed in the production process
JIT inventory reduces holding costs by scheduling deliveries to arrive exactly when needed for production or sale.
Question 3: Which type of business law governs agreements between two or more parties?
- Tort law
- Contract law (Correct answer)
- Property law
- Criminal law
Correct answer: Contract law
Contract law governs legally binding agreements, defining the rights and obligations of each party.
Question 4: In microeconomics, the 'law of diminishing returns' states that:
- Profits always decrease as production increases
- Adding more of one input eventually yields smaller output increases (Correct answer)
- Consumer demand falls as prices rise
- Firms earn less profit in competitive markets
Correct answer: Adding more of one input eventually yields smaller output increases
The law of diminishing returns states that adding more of a variable input to a fixed input eventually produces smaller marginal output gains.
Question 5: A company's 'debt-to-equity ratio' is used to measure its:
- Profitability
- Liquidity
- Financial leverage (Correct answer)
- Asset efficiency
Correct answer: Financial leverage
The debt-to-equity ratio measures how much of a company is financed by debt versus shareholders' equity, indicating financial leverage.
Question 6: In business communication, an 'executive summary' is best described as:
- A full technical report for specialists
- A brief overview of a longer document highlighting key points (Correct answer)
- A list of all employees in management
- A financial statement for executives
Correct answer: A brief overview of a longer document highlighting key points
An executive summary concisely summarizes the main points of a longer report so decision-makers can quickly grasp key findings.
Question 7: Which concept in business ethics refers to a company's responsibility to operate in ways that benefit society beyond just making profit?
- Shareholder theory
- Corporate Social Responsibility (CSR) (Correct answer)
- Utilitarianism
- Profit maximization
Correct answer: Corporate Social Responsibility (CSR)
CSR holds that businesses have obligations to stakeholders including communities, employees, and the environment, not just shareholders.
AS Associate Of Science In Business Administration 4
Which leadership style involves the leader making all decisions without significant input from subordinates?