Introduction to Management: practice questions

6 questions · 12 marks · free, no account · Read the notes first

1. Question 1Multiple choice · 1 mark

   Setting objectives and deciding how to achieve them is the management function of

   A

   planning.

   B

   organising.

   C

   leading.

   D

   controlling.

2. Question 2Multiple choice · 1 mark

   A sales assistant receives conflicting instructions from both the shop manager and the marketing manager. Which principle of effective management is violated?

   A

   Division of work

   B

   Unity of command

   C

   Unity of direction

   D

   Balancing authority and responsibility

3. Question 3Multiple choice · 1 mark

   In Hong Kong, a non-manufacturing business is an SME if it employs

   A

   fewer than 20 people.

   B

   fewer than 100 people.

   C

   fewer than 50 people.

   D

   fewer than 200 people.

4. Question 4Multiple choice · 1 mark

   A narrow span of control usually leads to

   A

   a flat organisation structure.

   B

   fewer levels of management.

   C

   less supervision of staff.

   D

   a tall organisation structure with more levels of management.

5. Question 54 marks

   The manager of a bakery set a sales target of $200 000 for October. Actual sales were $150 000. Describe how the manager should carry out the controlling process.

   Show worked solution

   1. Set standards: the sales target of $200 000 has been set for October. (1)
   2. Measure actual performance: record the actual sales of $150 000. (1)
   3. Compare performance with the standard: sales are $50 000 below target; find out the causes, e.g. new competitors or poor product quality. (1)
   4. Take corrective action: e.g. run promotions, improve products or retrain staff; if the target was unrealistic, revise it. (1)
6. Question 64 marks

   Explain TWO difficulties faced by SMEs in Hong Kong.

   Show worked solution

   Any TWO (2 marks each):

   • Limited capital: SMEs find it hard to borrow from banks because they have few assets as security, which limits expansion.
   • High operating costs: high rents and wages take up a large share of revenue.
   • Competition from large firms: large firms enjoy economies of scale and can charge lower prices.
   • Shortage of talent: SMEs often cannot offer the pay and career prospects of large firms.