1. Which principle is NOT the one can be applied to guide the designing of effective organizational Structure?

A. Keep the organizational structure simple

B. Give critical tasks prominence and allow them to function without restriction.

C. Keep support staff to a minimum

D. Maintain effective and efficient line activities in business

E. Keep working units small.

2. Which of the following is line activity of an agribusiness?

A. Inventory (raw material) purchasing and management

B. Human resources

C. Legal consultation

D. Office administration and mail services

E. Customer services at call center

3. Which of the following statements is NOT correct?

A. The best way to organize is to select the most effective and efficient ways to meet the firms purpose and objectives.

B. Critical tasks are activities that must be done well if the business is to achieve its purpose and financial and marketing objectives.

C. Decisions should always be made at the highest level of the organization and then influence the lower level.

D. Line people have the authority to make decisions, while staff people usually advise line personnel.

E. Critical tasks must be allowed to function smoothly and without restriction.

4. Which of the following is NOT the general characteristic of a Partnership?

A. Profits and losses are shared.

B. The parties operate under the firm owners legal name.

C. Assets are jointly owned on a joint bank account for the business.

D. The parties keep a single set of business records.

E. Each person involved participates in management decision.

5. Which of the following statements is NOT correct?

A. The three primary types of legal structures are sole proprietorship, partnership, and corporation.

B. DBA form gives the owner a bit of distance between his or her name and the general public.

C. A non-profit organization would prefer limited partnership to control the business risks.

D. The corporation is the most complex but enduring legal structure.

E. The corporation has the greatest ability to provide limited personal liability for its investors.

6. Which of the following is NOT criteria used to compare three primary types of legal structures?

A. Resource acquisition

B. Continuity of existence

C. Liability of Owners

D. Transferability of Ownership

E. Regulation and coordination of management