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

Which skill involves deciding how to invest company profits?

1. Negotiating salaries with workers

2. Taking inventory of merchandise in a store

3. Technical skill

4. Conceptual skill

The correct answer is: Conceptual skill

The skill that involves deciding how to invest company profits is conceptual skill. This type of skill pertains to the ability to understand and analyze complex situations and to think strategically about the entire organization. Individuals with strong conceptual skills can see the big picture and understand how different aspects of the business interconnect, which is crucial for making informed decisions about resource allocation, such as investing profits for growth or improvements. In contrast, negotiating salaries is more focused on interpersonal and communication skills, which are essential for employee relations but do not directly involve strategic decision-making about investments. Taking inventory is a task that mainly requires attention to detail and operational focus, rather than the broader perspective necessary for investment decisions. Technical skills refer to the specific know-how related to a particular field or industry, such as proficiency in a specific technology or tool, but do not encompass the strategic thinking required to manage company profits effectively.