Future Business Leaders of America (FBLA) Business Management Practice Test

Do only large companies with several employees need managers?

1. True

2. False

3. Only in specific industries

4. Only for corporate settings

The correct answer is: False

The assertion that only large companies with several employees need managers is incorrect because management plays a critical role in organizations of all sizes, not just large corporations. Managers are essential for coordinating activities, setting goals, and leading teams, whether in small businesses, non-profits, startups, or large enterprises. In small organizations, managers may take on multiple roles and responsibilities, overseeing various functions that might be divided among many individuals in larger firms. Even sole proprietors may need management skills to effectively run their business operations, handle finances, interact with customers, and strategize for growth. By recognizing that management is necessary across various contexts, including small and medium-sized enterprises, it becomes clear that all organizations can benefit from effective leadership and management practices to achieve their objectives and improve efficiency.