BT - Ch-1 & 2

The primary objective of a commercial business is to maintain growth, generate profits and continue as a going concern.

Is this statement true or false?

• True

• False

• True
  False

• False
  True

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

• 1. A.A private accountancy college

• 1. B.A local authority

• 1. C.A small retailer

• 1. D.A pension fund

Which of the following sources of finance would be available to a governmental local authority (city hall)?

• 1. A.Retained earnings

• 1. B.Investment bond loan capital

• 1. C.Share issue

• 1. D.Venture capital

Which TWO of the following are characteristics of a limited company but not a cooperative?

• 1. A.Maximising the excess of income over expenditure not a primary objective

• 1. B.Members can vote according to the number of shares owned

• 1. C.Shares can be bought and sold through personal transactions of the members

• 1. D.All members are invited to attend the annual general meeting and participate in decisions at the meeting

Which one of the following is a feature of all organisations?

• 1. A.Objective of making a profit

• 1. B.Structuring of tasks to achieve the organisation’s objective

• 1. C.Controlled by professional managers who do not own the organisation

• D. All of these

What type of organisation structure is usually decentralised and task-oriented with a smaller scalar chain and larger span of management control?

• 1. A.Informal organisation

• 1. B.Tall organisation

• 1. C.Flat organisation

• D. All of these

An organisation would consider offshoring its manufacturing operation in order to lower costs and gain access to skilled production labour.

Is this statement true or false?

• True

• False

• True
  False

• False
  True

At which level of a company’s decision making does new product development and market segmentation play an important role?

• 1. A.Strategic level

• 1. B.Tactical level

• 1. C.Operational level

• D.All of these

A primary advantage of the matrix organisational structure is which of the following?

• 1. A.Leads to economies of scale

• 1. B.Enhances career opportunities

• 1. C.Provides optimum resource allocation and flexibility

• 1. D.Encourages delegation

Multinational Services Co is a large conglomerate with various business divisions. All accounting activities are performed by an internal single dedicated unit, which allocates the costs incurred to the individual business divisions.

Which of the following organisational structures does this most likely describe?

• 1. A.Offshoring

• 1. B.Shared services

• 1. C.Centralisation

• 1. D.Outsourcing