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Multiple Choice Questions:

1. Which term best describes a statement that specifies what business the organization is
in and what its primary areas of emphasis are?
A)
B)
C)
D)

vision statement
mission statement
values statement
strategic statement

2. Which statement speaks to the ethics of an organization and what it believes in?
A)
B)
C)
D)

vision statement
mission statement
values statement
strategic statement

3. The statement, Our gas generators will have a 95% reliability rating after two years of
use is an example of which of the following attributes of planning?
A)
B)
C)
D)

goals
policies
objectives
strategies

4. Which term best describes the series of steps that will be taken or tasks that will be
completed to accomplish an objective?
A)
B)
C)
D)

procedures
policies
rules
regulations

5. If sales in an organization were to dramatically drop and remain below projections, what
type of plan would be best to identify an alternative course of action that can be
implemented to correct the downfall?
A)
B)
C)
D)

strategic plan
tactical plan
contingency plan
production plan

6. How does a standing plan differ from a single use plan?

A) Standing plans focus on the short term and single use plans on the long term.
B) Standing plans are for emergencies; single use plans are for routine use.
C) Standing plans are used over and over again for situations with little change;
single use plans are used once for unique situations.
D) Standing plans focus on administration; single use focus on operations.

7. Which tool is used in strategic planning to assess an organizations internal strengths

and weaknesses and external opportunities and threats?
A)
B)
C)
D)

PEST analysis
needs assessment
balanced scorecard
SWOT analysis

8. Which are the most common planning constraints?

A)
B)
C)
D)

policies, procedures and rules

resources, materials and equipment
scope, resources and organizational policies
time, money and people

9. What is the primary purpose of creating an operating budget?

A)
B)
C)
D)

To show how organizational resources will be used

To highlight costs that are out of control
To document the production process
To achieve a balance between revenues and expenses

10. What benefit is derived from having first level managers create budgets?
A)
B)
C)
D)

They are more realistic when created by managers closest to the work.
They are more simplistic than if senior management created them.
They can be easily created by carrying over previous years results.
They are less likely to add slack to budgets so they will be easy to meet.

11. What does SWOT stand for?

A)
B)
C)
D)

Strategy, Weakness, Opportunities, Treaties

Strengths, Weakness, Options, Threats
Strengths, Weakness, Opportunities, Threats
Strategy, Weakness, Options, Treaties

12. Which of the following best describes the difference between a corporate vision and
corporate values?
A) a vision is a concrete plan for the future and values are corporate ethical
standards
B) a vision is a look at what a corporation might be like in the distant future and
values are corporate ethical standards
C) a vision is a standard of ethics and values plan for the distant future
D) a vision is a statement of the primary emphasis of a corporation and values are
key points that a company will strive for in the distant future

13. What does the acronym SMART stand for?

A)
B)
C)
D)

supervision, maintenance, attainable, relevant, tertiary

specific, measurable, attainable, readable, time-oriented
supervision, measurable, attainable, relevant, tertiary
specific, measurable, attainable, relevant, time-oriented

14. Natasha wrote the following goal for her television sales team: The Blue Team will sell
30 televisions. How should she improve the wording of this goal?
A)
B)
C)
D)

add a time outcome

add specific information, such as the number of sales
add a sales goal that is more relevant to her team
add information that is measurable

15. Jesse wrote the following goal for his training team: The training team will conduct five
new training sessions by the end of the quarter. How should he improve the wording of
this goal?
A)
B)
C)
D)

add a time outcome

add specific information, such as the number of trainings
add a goal that is more relevant to his team
add information that is measurable

16. Lorraine believes her company copies form too often, so she created a goal to
implement a policy of electronically scanning forms. Which of the following did Lorraine
do right in her goal setting?
A)
B)
C)
D)

identified an area for improvement

consulted with others
watched out for limitations
assessed the strengths and weaknesses of her department

17. What is the first step in the planning process?

A)
B)
C)
D)

develop a master plan

identify numbers and dates
provide explanations to all
review currency of plans

18. Vernons supervisor has just implemented a high priority plan to develop a new line of
soap products. The project will be completed within three months. What type of plan is
this?
A)
B)
C)
D)

long-range standing plan

short-range standing plan
long-range single-use plan
short-range single-use plan

19. Tiffany has directed her warehouse team to complete the annual inventory audit in the
next ten working days. What type of plan is this?
A)
B)
C)
D)

long-range standing plan

short-range standing plan
long-range single-use plan
short-range single-use plan

20. Which of the following is an example of a functional plan?

A)
B)
C)
D)

strategic plan
production plan
long-range plan
contingency plan

21. Which of the following statements about planning is true?

A) Planning enables a manager or an organization to actively affect rather than
passively accept the future.
B) Planning allows the manager to manage the organization without the aid of
others.
C) More often than not, planning has negative side effects on managerial
performance.
D) Developing a plan forces managers to think about what has happened in the
past.

22. Which of the following is a benefit of planning?

A) Planning allows for input from throughout the organization, which improves the
quality of the plans.
B) Involvement in the planning process enhances the overall understanding of the
organizations direction.
C) Planning has positive effects on managerial performance.
D) All of these statements are true of planning

23. Which of the following best identifies when contingency plans are needed?
A)
B)
C)
D)

in rapidly changing situations

in unchanging environments
when the firm has inadequate capital
when employees are stressed

24. Which term best describes general guides to action that constrain or direct objective
attainment?
A)
B)
C)
D)

procedures
rules
policies
objectives

25. What is Amazon.coms statement expressing its desired to build a place where people
can come to find and discover anything they might want to buy online called?
A)
B)
C)
D)

vision statement
goal statement
mission statement
rationale statement

26. Agile Consultant, Inc.s written statement which says, Agile exists to provide its clients
with exemplary service, to help them achieve their goals, and to use our success to
make the city of Las Vegas a better place to live. is an example of which of the
following?
A)
B)
C)
D)

vision statement
goal statement
mission statement
rationale statement

27. Which of the following best describes a systematic process for analyzing and
determining needs or gaps between current and desired conditions?
A)
B)
C)
D)

SWOT analysis
needs assessment
PEST analysis
organizational analysis

28. Which of the following best describes a graphical network model that depicts a projects
tasks and the relationships between those tasks?
A)
B)
C)
D)

project plan
Gannt chart
PERT chart
project chart

29. For what two distinct purposes is a budget used for?

A)
B)
C)
D)

planning and staffing

planning and controlling
controlling and leading
organizing and planning

30.Which of the following budgeting methods relies on results from a prior periods as a
reference and increases or decreases them based on internal and external conditions?
A)
B)
C)
D)

incremental budgeting
master budgeting
zero based budgeting
cash flow budgeting

31. Which of the following properly defines a master budget?

A)
B)
C)
D)

A detailed plan showing how cash resources will be acquired and used.
A detailed schedule showing the expected sales for a budget period.
A detailed schedule showing materials, overhead, and labor for a budget period.
A number of separate but interdependent budgets that formally lay out the
companys sales, products, and financial goals.

True/false Questions:
1. Supervisors should deviate from corporate policy when necessary.
A) True
B) False

2. A mission statement typically specifies what business a firm is in and what its primary
areas of emphasis are.
A) True
B) False

3. You must create plans before you can develop goals or objectives.
A) True
B) False

4. A company policy is a public commitment to employees, suppliers, customers, and the

community.
A) True
B) False

5. Employees who are involved in setting goals are more likely to be committed to success
in reaching the goal.
A) True
B) False

6. Goals should be directly connected to the organizations mission and strategy.

A) True
B) False

7. The best way to ensure a goal is achieved correctly is to discourage risk-taking and
creative efforts.
A) True
B) False

8. As a manager, it is important that you provide periodic feedback to employees on their

progress in achieving goals.
A) True
B) False

9. In the planning process, after you develop a master plan, your next step is to develop
supporting plans.
A) True
B) False

10. A short-range plan tends to last between two and five years.
A) True
B) False

11. A standing plan is used only once.

A) True
B) False

12. A good way to evaluate your plan is to ask questions related to the question stems who,
what, when, where, why, and how.
A) True
B) False

13. Planning is the process of deciding which objective to pursue during a future time period
and how to achieve those objectives.
A) True
B) False

14. The primary management function is controlling.

A) True
B) False

15. A formal plan is a written, documented plan developed through an identifiable process.
A) True
B) False

16. Sales and marketing plans, production plans, financial plans, and personnel plans are
examples of functional plans.
A) True
B) False

17. A short-range plan generally covers a time period between one to three years.
A) True
B) False

18. Long-range planning is primarily carried out at the top levels of the organization.
A) True
B) False

19. Contingency plans are essentially long-range plans.

A) True
B) False

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20.Policies are specific, definite actions to be taken in a given situation.

A) True
B) False

21. A procedure is a series of related steps or tasks expressed in chronological order for a
specific purpose.
A) True
B) False

22. SMART goals are specific, measurable, attainable, relevant, and time-oriented.
A) True
B) False

23. A standard is the measure, or basis of judging performance of a product or service,

machine, individual, or organizational unit.
A) True
B) False

24. A PERT chart is a simple bar chart that depicts project tasks against a calendar.
A) True
B) False

25. A formal, written, and approved document that managers and controls the execution of a
project is a project plan.
A) True
B) False

26. Face to face meetings can be detrimental to the planning process.

A) True
B) False

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27. The best resource management tool to facilitated planning is budget.

A) True
B) False

28. The budget period for zero based budgeting is typically two to three years.
A) True
B) False

29. A sales budget is a detailed schedule showing the expected sales for a budget period.
A) True
B) False

30.After a cash budget is prepared, the budgeted income statement and the budgeted
balance sheet can be prepared.
A) True
B) False

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Short Answer questions:

1. Which levels of management are responsible for what areas of planning?

2. What does a companys master plan consist of?

3. Which four categories do objectives for organizations normally fall?

4. Accurately define the five attributes of SMART goals.

5. What are the steps of the planning process?

6. What elements make up a master budget?

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