BTF1 Chapter 1

Anders Aid is a charity providing youth services in large cities. The chief executive is involved in preparing a document outlining the services provided by the charity. She wants to stress that it always seeks to operate at maximum efficiency. In stressing this aspect of the charity’s operations, the chief executive is highlighting the charity’s:

• Mission

• Vision

• Primary objective

• Secondary objectives

Which of the following characteristics do all organisations have in common?

• Pursuing individual goals

• Maximising shareholders' wealth

• Providing beneficiary for society

• Pursuing controlled performance

Whether an organisation is classified as a business or not is dependent on its:

• Vision

• Primary objectives

• Strategic objectives

• Mission

For a business, which of the following would be classified as secondary objectives?

• The business’s market share target for next year

• The business’s mission statement

• The business’s vision

• The business’s financial objective of wealth maximisation

An entity ensures it can meet the needs of the present without compromising the ability of future generations to meet their own needs. Which of the following most accurately describes the way the entity is behaving?

• Responsibly

• Ethically

• Sustainably

• Morally

Maximising the wealth of its shareholders is the stated goal of Anver plc. The company's objectives have been expressed as a hierarchy of primary and secondary objectives. Identify which of the following is most likely to be Anver plc's primary business objective.

• To increase the annual profit after tax by 125% in the next 10 years

• To introduce an average of two new products each year for the next six years

• To double the share price within the next 10 years

• To become the market leader in four market segments within the next 10 years

Two of Sunshine Tours plc's stakeholder groups are putting the company under pressure to improve its return on investment. These are most likely to comprise which of the following groups?

• Customers

• Suppliers

• Auditors

• Bankers

According to William Baumol, if a manger maintains or increases market share, ensures the survival, and discourages competition, the primary objective of the business will be:

• Wealth maximization

• Profit maximization

• Share price maximization

• Revenue maximization

SMART in operational objectives of a business means:

• Special, Measurable, Achievable, Realistic and Time-bound

• Specific, Measurable, Achievable, Relevant and Time-bound

• Special, Managerial, Assessable, Realistic and Time-bound

• Specific, Measurable, Assessable, Relevant and Time-bound

Green Meal, a dry fish producer, is setting the standard level for operational performance. For each kilogram of dry fish, the labor cost accounts for 25% of raw material cost. Which type of standard is established?

• Physical standard

• Quantity standard

• Cost standard

• Quality standard