Test Questions

1.

A US-owned supermarket discount store has recently opened in the UK. In the first year of operation its main business objective is likely to be:

A.

Gain market share

B.

Reduce operational costs

C.

Maximise growth potential

D.

Restructure the organisation

2.

Which of the following is not a private sector business organisation?

A.

Public limited company

B.

Worker co-operative

C.

Public corporation

D.

Partnership

3.

If a business owner has unlimited liability it means:

A.

The business cannot be declared bankrupt

B.

The owner must meet all debts

C.

The business has sold shares

D.

The organisation is non-profit making

4.

A public limited company is an organisation which:

A.

Is owned by the government

B.

Is owned by its workers

C.

Is listed on the Stock Exchange

D.

Holds shares in other companies

5.

Which of the following is a staff function which supports the main line functions within an organisation?

A.

Marketing

B.

Finance

C.

Sales

D.

Production

Questions 6 – 8 share the following answers: The aims of business organisations are many and will include:

A.

providing a public service

B.

profit maximisation

C.

expanding sales and market share

D.

providing a charitable service

Which of the above could explain the following busying activities?

6.

Two people selling cold cans of drink for 1 pound each on beach during a hot summer

7.

An electronics company producing video recorders that can play 8mm video tapes from camcorders and full-size VHS tapes

8.

Collecting unsold sandwiches from retailers to distribute to homeless people

9.

Which of the following features do you associate with organisational structures which have a wide span management, or control?

A.

Management and supervision costs are lower

B.

Subordinates may have more than one boss

C.

Management can lose control

D.

It allows for tight control and close supervision

10.

Compare the likely objectives of the following organisations:

• ICI (Imperial Chemical Industries PLC)

• Royal Society for the Prevention of Cruelty to Animals (a charity)

• A library run by the local council

11.

ICI is a public limited company (plc). Describe the form of ownership and main method of finance in a plc. ICI is also a multinational. Explain what is meant by this. Suggest an appropriate organisational structure for ICI.

12.

Explain differences between the following types of business organisation in terms of ownership, control, and main method of finance:

• Private limited company

• Public limited company

• Public corporation

13.

Answer the following questions:

• What are the span of management and chain of command in an organisation?

• What are the span of management and chain of command likely to be like in a tall, centralised organisation?

• Suggest one advantage and one disadvantage of a decentralised organisation.

• Suggest two factors which might cause a supermarket chain to develop a flat, decentralised structure.