Question 1

Frequent and flagrant disregard of the chain of command undermines the position of the:

Accepted Answer

Bypassing the chain of command is a direct challenge to the authority and role of the manager. It undermines their ability to lead and manage effectively. This can lead to confusion, inefficiency, and ultimately harm the organization's overall performance.

Question 2

The fact that the daily "brush fires" of doing business tend to push aside planning until it is forgotten is the message of:

Accepted Answer

The Tyranny of the Urgent is the concept that the immediate demands of day-to-day tasks can overshadow the importance of long-term planning and strategy. This can lead to important planning tasks being neglected or forgotten altogether.

Question 3

A hesitancy by an entrepreneur to move through the various organisational stages can:

Accepted Answer

Hesitancy to move through organisational stages can limit the rate of business growth as it may result in missed opportunities or inability to scale up operations efficiently.

Question 4

Having more than one supervisor is a violation of the:

Accepted Answer

Having more than one supervisor violates the chain of command principle, which establishes a clear line of authority between superiors and subordinates. This ensures that each employee has only one direct supervisor, who is responsible for their performance and providing guidance and feedback. Having multiple supervisors can lead to confusion, conflicting instructions, and a lack of accountability, which can undermine organizational effectiveness.

Question 5

As a business grows, the small business owner needs to fill key positions with persons who:

Accepted Answer

As a business grows, it becomes crucial to fill key positions with persons who not only have the potential to become future managers but can also complement the weaker areas of the entrepreneur. Additionally, the new hires should be able to survive and succeed in the existing company culture. Therefore, all options mentioned in the question are true and significant factors to consider while filling key positions in a growing business.

Question 6

Stage 3 in the growth of a business is characterised by:

Accepted Answer

The answer of Stage 3 in the growth of a...

Question 7

A small business's basic path to the future is spelled out in a document called a:

Accepted Answer

A small business's basic path to the future is spelled out in a strategic plan. A strategic plan outlines the long-term goals and objectives of a company and lays out a roadmap for achieving those goals. It typically includes an analysis of the business's current situation, a detailed action plan, and a timeline for executing that plan. Feasibility studies, short-range plans, and budgets are all important tools that can be used as part of the strategic planning process, but they are not comprehensive strategic plans in and of themselves.

Question 8

Susan has seen her retail shop grow to the point that she has designated supervisors for the office and two selling areas.Her shop's stage of growth is:

Accepted Answer

The answer of Susan has seen her retail shop grow...

Question 9

In a line-and-staff organisation, which division is a line activity?

Accepted Answer

Production is a line activity as it involves directly producing goods or services and generating revenue for the organization. Legal, Human Resources, and Accounting are staff activities that provide support and expertise to the line activities.

Question 10

Controlling is the managerial function that involves the managers:

Accepted Answer

Controlling involves keeping track of performance and investigating when results deviate from the plan. It is about ensuring that the activities are carried out as planned and taking corrective action when necessary to ensure that goals are achieved.

Question 11

The use of written policies, budgets and job descriptions is most closely associated with which stage of growth?

Accepted Answer

The use of written policies, budgets, and job descriptions is a characteristic of a formal organization, which is a stage of growth where a company has a defined structure and procedures in place. This stage typically occurs after the one-person operation and player-coach stages, and before intermediate supervision.

Question 12

Nancy just added her eighth employee, a human resource manager who will be responsible for all future hiring, training, retaining and firing decisions.The company is in a ________ organisational structure.

Accepted Answer

A line-and-staff organisational structure combines the traditional chain of command with specialized managers who assist in areas like HR. This structure allows for efficient delegation and ensures that decision-making is split between those who manage day-to-day operations (line) and those who support those managers (staff). By adding a human resource manager, Nancy has expanded her company's staff, making it a line-and-staff organisational structure.

Question 13

The organisational structure of small companies is often characterised by:

Accepted Answer

Practicality is often a key characteristic of the organisational structure of small companies, as they need to be able to adapt quickly and efficiently to changing circumstances.

Question 14

Margaret has launched a new event planning company with four employees.With the growth in sales and personnel, the next step of growth will involve:

Accepted Answer

As the company grows, it becomes necessary to have intermediate supervision to ensure that the increased number of employees are all effectively managed and performing their duties efficiently. This allows for more hands-on management while still providing autonomy for employees. The other options are also important, but intermediate supervision is specifically suited for this stage of growth.

Question 15

James is talking to another supervisor about the number of employees who report directly to him.James is talking about his:

Accepted Answer

James is discussing how many employees are under his direct authority, which is a concept related to span of control. Span of control refers to the number of subordinates that a supervisor directly manages.

Question 16

A budget is prepared as part of a:

Accepted Answer

A budget is typically prepared as part of a short-range plan, focusing on financial planning for the upcoming year or shorter periods.

Question 17

Mario has just begun to personally supervise employees.His business likely to be in the ____________ stage of growth.

Accepted Answer

The "player-coach" stage is when a business owner starts to delegate tasks but still remains actively involved in both managing and performing tasks, which aligns with Mario personally supervising employees.

Question 18

The owner of a rapidly growing small business needs to talk to a lender for additional financing.Which document would increase the company's credibility?

Accepted Answer

While all of the documents listed could be helpful in establishing credibility, a strategic plan would be the best choice as it shows the lender that the business is thinking ahead and has a clear plan for growth and profitability. Control standards and human resource guidelines are important documents for internal use, but may not be as relevant to a lender.

Question 19

For small businesses, the most likely form of organisational structure is:

Accepted Answer

Small businesses typically use a line organizational structure because it is simple, direct, and allows for clear lines of authority and communication.

Question 20

A monthly production schedule is prepared as part of the:

Accepted Answer

A monthly production schedule is a detailed plan for the short-term future. Short-range plans are typically focused on the day-to-day operations of a business and cover a period of up to one year. The production schedule is an important component of the short-range plan as it details the specific tasks and timelines required to produce goods or services during this time frame.

Quiz 19: Professional Management and the Small Business