28 Questions
Which of the following is NOT one of the core management functions?
Budgeting
Which of the following is the correct order of steps in the decision-making process?
Planning, organizing, leading, controlling
Which of the following questions is related to the leading function of management?
How do I handle employees who appear to be low in motivation?
In the organizing function, which of the following questions is a manager likely to consider?
How should jobs be designed?
Which of the following questions is related to the controlling function of management?
When is a performance deviation significant?
Which of the following questions is related to the planning function of management?
What strategies will best achieve those objectives?
What is the primary purpose of control according to the passage?
To ensure goals and plans are being achieved
Which of the following is NOT identified in the passage as a threat that managers must protect against?
Potential employee sabotage
According to the passage, how does an effective control system help with employee empowerment?
It provides information and feedback on employee performance
What is the relationship between planning and control according to the passage?
Control provides the critical link back to planning
According to the passage, which of the following is NOT a benefit of an effective control system?
Ensuring that employees are held strictly accountable
What is the primary role of the controller in an organization?
To oversee the preparation of financial statements and ensure compliance with laws and ethical standards
Which of the following is NOT a step in the five-step decision-making process for planning and control?
Evaluate the financial statements and prepare tax filings
In smaller organizations, the roles of the controller and the CFO can be combined. What is the primary distinction between these two roles?
The controller focuses on historical accounting and reporting, while the CFO has a broader, strategic, and forward-looking role
What is the three-step control process?
Measure actual performance, compare to a standard, and take managerial action
Which of the following is NOT a responsibility of the controller?
Recommending proposed strategic actions
What is the correct order of steps in the five-step decision-making process for planning and control?
Identify the problem, obtain information, make predictions, make decisions, implement the decision
What is the main focus of formal planning, especially strategic planning?
Capitalizing on existing business opportunities within the industry
What does the text suggest managers should do when planning?
Be open to forging into uncharted waters if there are untapped opportunities
What is the main purpose of control as a management function?
To monitor activities and ensure they are being accomplished as planned
What does the text suggest about the effectiveness of a control system?
It is determined by how well it facilitates goal achievement
What does the text suggest about the American tradition regarding success?
Success breeds success, and therefore firms should not fix what is not broken
Which of the following is NOT a reason why controllers might provide biased information when establishing future budgets?
Providing accurate and transparent information to management
What does the text state is a key issue with creating budget slack?
It violates the credibility standard of the Institute of Management Accountants
Which of the following is NOT a potential consequence of earnings management?
Providing real economic advantage to the organization
What is the main reason the text suggests that creating budget slack is unethical?
It violates the credibility standard of the Institute of Management Accountants
Which of the following is a potential incentive for controllers to not provide realistic information when establishing future budgets?
Losing their job if the set targets can't be met
Which of the following statements about earnings management is NOT true according to the text?
Earnings management provides real economic advantage to the organization
Test your knowledge on the core functions of business management including planning, organizing, controlling, and leading. Questions cover topics such as defining goals, coordinating activities, monitoring progress, and directing employees.
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