Business Management – Test Study Guide
1. What is Business Management?
* The process of planning, organizing, leading, and controlling a business to meet
its goals.
* It involves using people, money, and resources efficiently.
* Managers make decisions, set goals, and lead teams.
________________
2. The Four Main Functions of Management
a. Planning
* Setting goals and deciding how to reach them.
* Types:
* Strategic (long-term: 3–5 years)
* Tactical (mid-term: 1–3 years)
* Operational (short-term: daily or weekly tasks)
* Example: A manager sets a goal to increase sales by 10% this year.
b. Organizing
* Arranging resources and assigning tasks to employees.
* Organizing includes creating departments and assigning roles.
* Good organization helps the business run smoothly.
c. Leading
* Motivating and guiding employees to complete tasks.
* Involves good communication, inspiration, and conflict resolution.
* Different leadership styles:
* Autocratic (one person makes decisions)
* Democratic (team input)
* Laissez-faire (hands-off)
d. Controlling
* Monitoring performance and making corrections if needed.
* Managers check if goals are being met.
* Involves reviewing sales, budgets, and productivity.
________________
3. Levels of Management
a. Top-Level Management
* Examples: CEO, President
1. What is Business Management?
* The process of planning, organizing, leading, and controlling a business to meet
its goals.
* It involves using people, money, and resources efficiently.
* Managers make decisions, set goals, and lead teams.
________________
2. The Four Main Functions of Management
a. Planning
* Setting goals and deciding how to reach them.
* Types:
* Strategic (long-term: 3–5 years)
* Tactical (mid-term: 1–3 years)
* Operational (short-term: daily or weekly tasks)
* Example: A manager sets a goal to increase sales by 10% this year.
b. Organizing
* Arranging resources and assigning tasks to employees.
* Organizing includes creating departments and assigning roles.
* Good organization helps the business run smoothly.
c. Leading
* Motivating and guiding employees to complete tasks.
* Involves good communication, inspiration, and conflict resolution.
* Different leadership styles:
* Autocratic (one person makes decisions)
* Democratic (team input)
* Laissez-faire (hands-off)
d. Controlling
* Monitoring performance and making corrections if needed.
* Managers check if goals are being met.
* Involves reviewing sales, budgets, and productivity.
________________
3. Levels of Management
a. Top-Level Management
* Examples: CEO, President
