BUAW Lesson 2 - Organisational structure and governance

Which are the correct organisational structures?

• Matrix

• Department

• Functional

• Division

• Operational

A business that buys raw material from an overseas supplier in a country where war has broken out, decides to find a new supplier based in the UK.

Which strategic approach is the organisation taking to manage the following risks?

• Transfer

• Accept

• Reduce

• Avoid

A business that wants to move to using electric vehicles is concerned about the cost of replacing the batteries, so decides to lease the vehicles rather than buying them.

Which strategic approach is the organisation taking to manage the following risks?

• Transfer

• Accept

• Reduce

• Avoid

A business that is entering into a long-term contract with a contractor is concerned about increasing prices in the future so negotiates a fixed price for the contract.

Which strategic approach is the organisation taking to manage the following risks?

• Transfer

• Accept

• Reduce

• Avoid

Which of the following is a reputational risk to a business?

• One of its suppliers has been unable to import the raw materials required by the business.

• The sales director has left the business to join the board of trustees of a charity.

• 
  

  The managing director has been implicated in some insider trading in the shares of another business.

  
  

The ‘top-down’ structure of a business with centralised control often leads to a less collaborative working atmosphere.

• True

• False

‘A cyber-attack that records every keystroke a user makes, which can then be used to identify password and other sensitive information.’

• Spyware

• Keylogging

• Phishing

• Password Attack

An increase in interest rates for a business that finances its production machinery using long-term debt.

• Operational Risk

• Financial Risk

Employing a new member of staff in the finance function who is not familiar with the reconciliation processes followed by the business.

• Operational Risk

• Financial Risk

Raw materials used by a business being transported on a cargo ship which is stranded in the Suez Canal.

• Operational Risk

• Financial Risk