IL171ILTS Business Marketing and Comp Ed Practice
Exam
**Question 1. Which of the following is NOT one of Fayol’s five functions of
management?**
A) Planning
B) Organizing
C) Motivating
D) Controlling
Answer: C
Explanation: Fayol identified planning, organizing, commanding (leading),
coordinating, and controlling. Motivating is a modern concept, not one of Fayol’s
original functions.
**Question 2. In a matrix organizational structure, employees typically report
to:**
A) One functional manager only
B) One project manager only
C) Both a functional manager and a project manager
D) No manager; they are self‑directed
Answer: C
Explanation: The matrix structure blends functional and project lines, so staff have
dual reporting relationships.
,IL171ILTS Business Marketing and Comp Ed Practice
Exam
**Question 3. Which recruitment method is most likely to produce a highly
qualified applicant pool for a specialized technical position?**
A) Newspaper advertisement
B) Employee referral program
C) General job fair
D) Cold‑calling candidates on LinkedIn
Answer: B
Explanation: Employee referrals often bring candidates who match the specific
skill set and cultural fit, especially for niche roles.
**Question 4. According to Theory X, managers assume that employees are:**
A) Self‑motivated and seek responsibility
B) Lazy and need close supervision
C) Creative and innovative
D) Highly autonomous
Answer: B
Explanation: Theory X posits that workers inherently dislike work and must be
coerced or controlled.
**Question 5. The primary purpose of a SWOT analysis is to:**
A) Forecast cash flows
,IL171ILTS Business Marketing and Comp Ed Practice
Exam
B) Evaluate internal strengths and weaknesses and external opportunities and
threats
C) Set pricing strategies
D) Determine legal liability
Answer: B
Explanation: SWOT stands for Strengths, Weaknesses, Opportunities, Threats and
is used for strategic planning.
**Question 6. Which of the following best describes a sole proprietorship?**
A) Separate legal entity from its owner
B) Unlimited liability for the owner
C) Shares are publicly traded
D) Managed by a board of directors
Answer: B
Explanation: In a sole proprietorship, the owner is personally liable for all business
debts.
**Question 7. An offer that is made to the public and can be accepted by anyone
who performs the requested act is called a:**
A) Unilateral contract
B) Bilateral contract
C) Executed contract
, IL171ILTS Business Marketing and Comp Ed Practice
Exam
D) Voidable contract
Answer: A
Explanation: A unilateral contract involves an offer that becomes binding when
the offeree performs the act (e.g., reward offers).
**Question 8. Which intellectual‑property right protects the unique appearance
of a product’s packaging?**
A) Patent
B) Trademark
C) Copyright
D) Trade secret
Answer: B
Explanation: Trademarks protect symbols, names, and distinctive packaging that
identify the source of goods.
**Question 9. The doctrine of “piercing the corporate veil” is used to:**
A) Protect shareholders from liability
B) Hold shareholders personally liable for corporate debts
C) Create a new corporate entity
D) Merge two corporations
Answer: B
Exam
**Question 1. Which of the following is NOT one of Fayol’s five functions of
management?**
A) Planning
B) Organizing
C) Motivating
D) Controlling
Answer: C
Explanation: Fayol identified planning, organizing, commanding (leading),
coordinating, and controlling. Motivating is a modern concept, not one of Fayol’s
original functions.
**Question 2. In a matrix organizational structure, employees typically report
to:**
A) One functional manager only
B) One project manager only
C) Both a functional manager and a project manager
D) No manager; they are self‑directed
Answer: C
Explanation: The matrix structure blends functional and project lines, so staff have
dual reporting relationships.
,IL171ILTS Business Marketing and Comp Ed Practice
Exam
**Question 3. Which recruitment method is most likely to produce a highly
qualified applicant pool for a specialized technical position?**
A) Newspaper advertisement
B) Employee referral program
C) General job fair
D) Cold‑calling candidates on LinkedIn
Answer: B
Explanation: Employee referrals often bring candidates who match the specific
skill set and cultural fit, especially for niche roles.
**Question 4. According to Theory X, managers assume that employees are:**
A) Self‑motivated and seek responsibility
B) Lazy and need close supervision
C) Creative and innovative
D) Highly autonomous
Answer: B
Explanation: Theory X posits that workers inherently dislike work and must be
coerced or controlled.
**Question 5. The primary purpose of a SWOT analysis is to:**
A) Forecast cash flows
,IL171ILTS Business Marketing and Comp Ed Practice
Exam
B) Evaluate internal strengths and weaknesses and external opportunities and
threats
C) Set pricing strategies
D) Determine legal liability
Answer: B
Explanation: SWOT stands for Strengths, Weaknesses, Opportunities, Threats and
is used for strategic planning.
**Question 6. Which of the following best describes a sole proprietorship?**
A) Separate legal entity from its owner
B) Unlimited liability for the owner
C) Shares are publicly traded
D) Managed by a board of directors
Answer: B
Explanation: In a sole proprietorship, the owner is personally liable for all business
debts.
**Question 7. An offer that is made to the public and can be accepted by anyone
who performs the requested act is called a:**
A) Unilateral contract
B) Bilateral contract
C) Executed contract
, IL171ILTS Business Marketing and Comp Ed Practice
Exam
D) Voidable contract
Answer: A
Explanation: A unilateral contract involves an offer that becomes binding when
the offeree performs the act (e.g., reward offers).
**Question 8. Which intellectual‑property right protects the unique appearance
of a product’s packaging?**
A) Patent
B) Trademark
C) Copyright
D) Trade secret
Answer: B
Explanation: Trademarks protect symbols, names, and distinctive packaging that
identify the source of goods.
**Question 9. The doctrine of “piercing the corporate veil” is used to:**
A) Protect shareholders from liability
B) Hold shareholders personally liable for corporate debts
C) Create a new corporate entity
D) Merge two corporations
Answer: B
