Business Degree Business Administration 2

Question 1

Which organizational structure groups employees by function such as marketing, finance, and operations?

Accepted Answer

Functional structure

Answer

A functional structure organizes employees into departments based on their specialized roles or functions within the company.

Question 2

A company's current ratio is 2.5. What does this indicate?

Accepted Answer

The company has $2.50 in current assets for every $1 of current liabilities

Answer

The current ratio measures short-term liquidity by dividing current assets by current liabilities; a ratio of 2.5 means the company can cover short-term obligations 2.5 times over.

Question 3

Which leadership theory suggests that effective leadership style depends on the situation and follower readiness?

Accepted Answer

Situational leadership

Answer

Situational leadership theory, developed by Hersey and Blanchard, holds that no single leadership style is best and leaders should adapt based on follower maturity and task readiness.

Question 4

What is the primary purpose of a break-even analysis?

Accepted Answer

To determine the point where total revenue equals total costs

Answer

Break-even analysis identifies the sales volume at which total revenues equal total costs, meaning the business neither profits nor loses money.

Question 5

Which of the following best describes the concept of 'span of control' in management?

Accepted Answer

The number of subordinates a manager directly supervises

Answer

Span of control refers to the number of employees a single manager can effectively supervise, which influences organizational hierarchy and structure.

Business Degree Practice Test

Business Degree Practice Test

Business Degree Business Administration 2