Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which level of management typically makes all decisions according to company goals?

1. Top level

2. Mid-level

3. Lower level

4. Entry-level

The correct answer is: Top level

Top-level management is responsible for establishing the overarching goals and strategic direction of an organization. This level encompasses positions such as CEOs, presidents, and other high-ranking executives who make crucial decisions that align with the company's vision and mission. They are tasked with evaluating the organization's performance in relation to its goals, and they often set policies that guide the entire company. Their decisions influence not only immediate outcomes but also long-term growth and sustainability. Mid-level management focuses on implementing the strategies and policies set forth by top-level management. They act as a bridge between the upper and lower levels of management, coordinating efforts across various departments. Lower-level management and entry-level positions tend to concentrate on day-to-day operations and direct supervision of employees. They are more involved in tactical execution rather than in strategic decision-making. Thus, it is top-level management that is primarily accountable for making decisions that align with and fulfill company goals.