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

Which statement is true regarding employees performing staff functions?

1. They directly contribute to a company's profits

2. They contribute only indirectly to a company's profits

3. They have authority over line employees

4. They are part of the executive management team

The correct answer is: They contribute only indirectly to a company's profits

Employees performing staff functions typically have roles that provide support and advisory services rather than direct contributions to revenue generation. They often work in areas such as human resources, finance, and legal, where their responsibilities include ensuring the organization operates efficiently, complies with regulations, and supports the broader goals of the business. The statement that they contribute only indirectly to a company's profits is accurate because while their functions are essential for the overall operation and strategy of the company, they do not engage in activities that produce goods or services sold to customers. Instead, staff functions enhance the productivity and effectiveness of line employees, the ones directly engaged in profit-generating activities. Thus, the work of staff employees complements and facilitates profit generation, but does not directly contribute to it.