DSST Business 3

Question 1

Which management function involves monitoring performance and taking corrective action to achieve organizational goals?

Accepted Answer

Controlling

Answer

Controlling is the management function that measures actual performance against standards and implements corrective actions when needed.

Question 2

A 'sole proprietorship' is best described as:

Accepted Answer

A business owned and operated by one individual

Answer

A sole proprietorship is the simplest business form, owned and operated by a single individual who has unlimited personal liability.

Question 3

What is 'working capital' in financial management?

Accepted Answer

Current assets minus current liabilities

Answer

Working capital is calculated as current assets minus current liabilities and measures a company's short-term operational liquidity.

Question 4

In marketing, the 'product life cycle' describes the stages a product goes through from introduction to:

Accepted Answer

Decline

Answer

The product life cycle progresses through introduction, growth, maturity, and finally decline as sales fall and the product exits the market.

Question 5

Which type of business organization provides its owners with limited liability while allowing income to be taxed only once at the individual level?

Accepted Answer

S corporation

Answer

An S corporation offers limited liability like a corporation but passes income through to shareholders' personal tax returns, avoiding double taxation.

DSST - DANTES Subject Standardized Tests Practice Test

DSST - DANTES Subject Standardized Tests Practice Test

DSST Business 3