Management
What are the four traditional functions of management
Planning organizing directing controlling
According to Parkinson’s Law, what happens to work?
Work expands to fill the time available for its completion.
What are the four main forms of profit?
Reward for Effort, Reward for Risk, Return on Investment (ROI), and Profit to Sales Ratio.
What is Profit to Sales Ratio?
Net Profit divided by Total Sales; it shows how much profit is made per dollar of sales.
An airport hosts community tours and airshows to improve its image. What marketing goal is this supporting?
Creating and maintaining a positive public image.
What does “management” mean?
Getting things done through others
What are the Four Ps of Marketing?
Product, Price, Place, and Promotion.
How is Return on Investment (ROI) calculated?
Net Profit ÷ Equity (Investment).
What is Profit Maximization?
The objective of earning the highest possible profit by expanding until reaching the point of diminishing returns.
A GA company studies FAA forecasts before expanding services. What business practice is this?
Market research and forecasting.
What is the 80:20 Rule in delegation?
Delegate tasks to people who are 80% ready to handle them and allow them to grow into the remaining 20%.
What is market research?
The process of studying trends and customer needs to guide business decisions.
What is the difference between fixed and variable expenses?
What is Satisfactory Profit?
Setting a reasonable profit goal instead of trying to maximize profits.
A company accepts slightly lower profits to maintain long-term community support. What profit objective is this?
Social Responsibility.
Name the three leadership styles discussed.
Authoritarian (Autocratic), Participative (Democratic), and Delegative (Laissez-faire).
Name three national trends affecting General Aviation.
Terrorism and its aftermath, Fractional Aircraft Ownership, Airport Closures, Technology advancements, Sport Pilot Certification (any three).
What is a break-even analysis used for?
To determine the point at which total revenue equals total costs (no profit, no loss).
A manager refuses to delegate and tries to do everything themselves. What problem could this cause?
Poor time management, employee underdevelopment, burnout, and decreased overall productivity.
If an FBO has high sales but low ROI, what does that suggest?
The business may be overinvested in assets or operating inefficiently, generating low returns relative to equity.
What is the best overall time management strategy?
Delegation
What is fractional aircraft ownership similar to?
A timeshare.
Why is cash flow important?
Because businesses need available cash to operate daily, even if profits are shown on paper.
An FBO raises fuel prices and immediately loses customers to a nearby airport. What concept does this demonstrate?
Price elasticity — customers are sensitive to price changes.
Why can excessive delegation without control become a problem?
Because responsibility may be transferred, but accountability remains with the manager — leading to loss of oversight and potential mistakes.