AP Business with Personal Finance: Management and Leadership Drill 24

Question 1. According to the table, which supervisor directly manages the largest crew?

• A) The North crew supervisor, with 6 cleaners
• B) The South crew supervisor, with 9 cleaners
• C) The East crew supervisor, with 5 cleaners
• D) The West crew supervisor, with 12 cleaners ✓

Explanation: Q24.1: The West crew supervisor (D) directly manages 12 cleaners, the largest figure in the table. South (B) has 9, North (A) has 6, and East (C) has 5, all smaller.

Question 2. In management terms, the number of cleaners reporting directly to one supervisor is best described as that supervisor's:

• A) Chain of command, the line of authority from top to bottom of the firm overall
• B) Span of control, the number of subordinates who report directly to one manager ✓
• C) Centralization, the degree to which decisions are made at the top
• D) Delegation, the passing of a specific task to a subordinate

Explanation: Q24.2: Span of control (B) is exactly the number of subordinates who report directly to a single manager, which is what each row of the table shows. Chain of command (A) is the vertical line of authority, not a head count. Centralization (C) describes where decision authority sits, not how many people report to one manager. Delegation (D) is the act of assigning a task, not a measure of team size.

Question 3. What is the average span of control across the four supervisors? Round to one decimal place.

• A) 6.4 cleaners per supervisor
• B) 12.0 cleaners per supervisor
• C) 8.0 cleaners per supervisor ✓
• D) 32.0 cleaners per supervisor

Explanation: Q24.3: Average span of control = total cleaners / number of supervisors = 32 / 4 = 8.0 (C). Choice A, 6.4, divides 32 by 5 instead of 4. Choice B, 12.0, is the single largest crew, not the average. Choice D, 32.0, is the total number of cleaners, not an average per supervisor.

Question 4. A citywide shortage of available cleaning workers makes it hard for Halverstead to fill open crew positions. How does this external factor most directly affect the firm?

• A) It changes the firm's legal form from a partnership into a corporation
• B) It is likely to raise the wages Halverstead must offer to attract and keep cleaners, increasing labor costs ✓
• C) It guarantees that each supervisor's span of control will fall to zero
• D) It has no effect on the firm because labor supply is purely an internal matter controlled by managers given these circumstances

Explanation: Q24.4: A labor shortage is an external factor in the firm's environment, and its most direct effect is upward pressure on the wages Halverstead must offer to attract and retain cleaners, which is likely to raise labor costs (B). Choice A is unrelated: a labor shortage does not alter a firm's legal structure. Choice C overstates the effect; a shortage makes hiring harder but does not drive every span of control to zero. Choice D is wrong because labor supply is an external condition that clearly affects the firm, not a purely internal matter.

Question 5. Halverstead hires a group of brand-new cleaners who have never done the work before and need close, hands-on supervision while they learn. For this specific group, which staffing structure best fits their situation?

• A) Assign them to a supervisor with a narrow span of control, so each new cleaner gets close guidance ✓
• B) Assign them to the supervisor with the widest span of control, because new workers benefit from learning alongside a large group
• C) Remove their supervisor entirely and let the new cleaners manage themselves
• D) Give each new cleaner a permanent one-to-one manager, no matter what it costs the firm

Explanation: Q24.5: New, inexperienced workers who need close guidance are best placed under a supervisor with a narrow span of control (A), because fewer direct reports let the manager give each person more hands-on attention while they learn. Choice B does the opposite: the widest span spreads a manager thin, which suits experienced teams, not beginners, and a large group reduces, rather than increases, individual attention. Choice C removes supervision entirely, which is the wrong call for workers who need training. Choice D ignores cost and practicality; a permanent one-to-one manager for every new hire is not a workable structure.