Business Management Quiz

An organisation is a social arrangement which pursues collective........................................, which controls its own performance and which has a boundary separating it from its environment. Which of the following words best completes this sentence?

• Profits

• Stakeholders

• Goals

• Tactics

What is the term given to the idea that the combined output of a number of individuals working together will exceed that of the same individuals working separately?

• Sympathy

• Specialisation

• Synergy

• Systems thinking

Which one of the following statements is true?

• Limited company status means that a company is only allowed to trade up to a predetermined turnover level in any one year.

• For organisations that have limited company status, ownership and control are legally separate.

• The benefit of being a sole trader is that you have no personal liability for the debts of your business.

• Ordinary partnerships offer the same benefits as limited companies but are usually formed by professionals such as doctors and solicitors.

An organisation is owned and run by central government agencies. The organisation is best described as which of the following statements?

• A voluntary sector organisation

• A private sector organisation

• A public sector organisation

Which of the following groups may be considered to be stakeholders in the activities of a nuclear power station?

• (i) The government

• (ii) Environmental pressure groups

• (iii) Employees

• (iv) Local residents

The term secondary stakeholders describes which group of stakeholders?

• Stakeholders who conduct transactions with the organisation

• Stakeholders who have a contractual relationship with the organisation

• Stakeholders who do not have a contractual relationship with the organisation

Which of the following organisations would rely most heavily on value for money indicators and efficiency rather than information on performance and profitability?

• A private accountancy college

• A local authority

• A small retailer

ADB is a business which is owned by its workers. The workers share the profits and they each have a vote on how the business is run. Which of the following best describes ADB?

• Public sector

• Private sector

• Not-for-profit

• Co-operative

The primary objective of profit organizations is to maximize profit.

The primary objective of Not-for-profit organizations is to reduce costs of their operations and thus minimize the burden on taxpayers.