Econ mock 1 -organisations

Which of the following best completes the statement ‘Financial considerations are a constraint in not-for-profit organisation because…..’

• A. They have no profits to reinvest

• B. They meet the needs of people who cannot afford to pay very much

• C. They do not have a flow of sales revenue

• D. Their prime objectives are not financial but they still need money to enable them to reach them

¨Which of the following are usually seen as the primary objectives of companies

¨[i] to maximize the wealth of shareholders

¨[ii]to protect the environment

¨[iii] to make profit

• A I / II / III

• B I / II

• C II / III

• D I / III

Which one of the following is not a key stakeholder group for a charity?

• A. Employees and volunteers

• B. Shareholders

• C. Donors

• D. Beneficiaries

Consider the following statements:

(i) Not-for-profit organisations (NFPs) have varied objectives, which depend on the

needs of their members or the sections of society they were created to benefit.

(ii) The primary objective of government-funded organisations is to reduce costs of their

operations and thus minimise the burden on tax payers.

Which of these statements is/are correct?

• A (i) only

• B (ii) only

• C Both

• D Neither

Which of the following are key features of an organisation?

• A Controlled performance

• B Collective goals

• C Social arrangements

• D Creation of a product or service