Key Concepts in Business and Organizations | Business Technology and Finance | Học viện Tài chính

21:22 13/11/2023
BTF Chapter 1: Introduction to Business (combined) TÊN :
BTF Chapter 1: Introduction to Business LỚP : (combined) 42 Câu hỏi NGÀY : 1.
Organisations can be defined or described in various ways. Which three of the
following are the key characteristics that are shared by all organisations? A Collective goals B Social arrangement C Controlled performance D Specialisation E Synergy 2.
What are the primary objectives of profit-oriented and non-profit oriented organisations?
Profit-oriented organisation / Non-
Profit-oriented organisation / Non- profit oriented organisation profit oriented organisation A B
Output of goods/services / Minimise
Maximisation of wealth / Minimise costs costs
Profit-oriented organisation / Non-
Profit-oriented organisation / Non- profit oriented organisation profit oriented organisation C D
Output of goods/services / Provision
Maximisation of wealth / Provision of of goods/services goods/services 3.
At the Annual General Meeting (AGM) of Vortex plc, a major shareholder claimed
that the company was suffering from the symptoms of 'satisficing'. In the context of
corporate objectives, 'satisficing' means that
managers seek to make satisfactory
owners seek to make satisfactory A B
profits rather than maximise wealth profits
owners seek to meet a satisfactory managers seek to keep all C
level of corporate responsibility D stakeholders satisfied obligations
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BTF Chapter 1: Introduction to Business (combined) 4.
Joe, the Managing Director of Gargoyle Ltd, has set a primary objective of growth
in profits for the company. He aims to concentrate on product development to
support this objective. Identify whether the following will be suitable secondary
objectives to achieve the growth in profits via product development. I Bringing in new products II Reducing labour turnover
III Investing in research and development A I and II only B I and III only C II and III only D I, II and III 5.
Maximising the wealth of its shareholders is the stated goal of Avernanche 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
Avernanche plc's primary business objective.
To double the share price within the
To become the market leader in four A next 10 years B
market segments within the next 10 years
To increase the annual profit after tax
To introduce an average of two new C by 125% in the next 10 years D
products each year for the next six years 6.
A major shareholder has stated that for three years the directors of Barrington plc
have run the company in a manner designed solely to increase their prestige in the
business community. According to William Baumol, this is most likely to be shown in the directors' aim to A maximise sales revenue B maximise wealth C minimise costs D minimise social impact 7.
To establish whether a particular organisation should be classified as a business or
not, it is necessary to enquire about the nature of its: A secondary objective B mission C vision D primary objective
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BTF Chapter 1: Introduction to Business (combined) 8.
The primary objective of ABC Car Rental Ltd is as follows: "We aim to be the
fastest growing company with the highest profit margin in the global vehicle rental and leasing business".
One of its secondary objectives is: "To increase our market share for global family
car rentals to 20% within three years".
Which three components of the SMART acronym are present in the company's secondary objective? A T B M C A D S E R 9.
For a business, which two of the following would be classified as secondary objectives? The business's vision
The business's market share target A B for next year
The business's mission statement
The business's financial objective of C D
shareholder wealth maximisation The business's productivity E
improvement target for next year 10.
A major airline, FlotAir plc, has been drawing up a mission statement. Which three
of the following items could be expected in it?
We intend to be the best airline in the
We aim to give excellent customer A B world service
We will encourage diversity in the We intend to have a 30% market C workplace D
share on the London to New York route E
We will double profits in three years
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BTF Chapter 1: Introduction to Business (combined) 11.
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 two of the following groups? A Employees B Suppliers C Customers D Bankers E Shareholders 12.
Cruciform is a charity providing medical services in South America. The Chief
Executive is preparing a brochure which outlines the services provided by the
charity. In the brochure, the Chief Executive states that the charity wants to be the
largest global provider of charitable medical services by 20X5. By highlighting this,
the Chief Executive is stressing the charity's A primary objective B secondary objective C vision D mission 13.
The directors of Gordon Ltd have recently appointed two members of its unionised
workforce to an internal committee. The committee makes suggestions to the
company's main board of directors about all aspects of the company's strategies and policies.
These appointments illustrate the company's concern for which stakeholder? A Lenders B Trade unions C Customers D Suppliers
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BTF Chapter 1: Introduction to Business (combined) 14.
Mandrake plc processes waste for local authorities. It has stated that it seeks to
provide "our shareholders with increased value, our customers with value for
money, our employees with secure and interesting jobs and the public with safe
and sustainable waste disposal".
This is analysed below into four statements. Identify which is Mandrake plc's primary business objective.
To provide our customers with value To provide our employees with A B for money secure and interesting jobs
To provide our shareholders with
To provide the public with safe and C increased value D
environmentally sustainable waste disposal 15.
The ability to meet the needs of the present without compromising the ability of
future generations to meet their own needs is known as A business ethics B sustainability C reversability D corporate responsibility 16.
Sustainability is about the long term use of both tangible and intangible resources.
Green plc manufacturers customised furniture for customers from recycled materials.
Which two of the following represent intangible resources of Green plc? The design expertise of its Its head office premises A B employees Recycled timber received from
Its reputation in the community C D suppliers
Stationery supplies to the factory E office
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BTF Chapter 1: Introduction to Business (combined) 17.
Daycare is a charity that funds nursery places for children whose parents are both
unemployed. On the website, the organisation states that it continually needs to
raise funds that can be reinvested to produce an on-going income to fund its
activities. It also seeks to provide daycare for all families who need its support and
that it will never turn a family in need away.
A business adviser has made 2 statements:
Statement (1) The primary objective of Daycare is to maximise profit.
Statement (2) The secondary objective of Daycare is the funding of nursery places.
Statement (1) accurate; Statement
Statement (1) accurate; Statement A B (2) inaccurate (2) accurate
Statement (1) inaccurate; Statement
Statement (1) inaccurate; Statement C D (2) inaccurate (2) accurate 18.
At its recent AGM, the shareholders of Boronplc voted by a small company
dividen. At the meeting many sharefolders said that they accepted the dividend
because the company's profits were low, but were very unhappy with the return
because the company's financial statements showed a large increase in revenue.
Which of the following describes what is most likely to be happening at Boron plc? A Revenue satisficing B Revenue maximising C Profit satisficing D Profit maximising 19.
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: A secondary objective B mission C vision D primary objective
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BTF Chapter 1: Introduction to Business (combined) 20.
Which two of the following characteristics do all organisations have in common? A Pursuing a social arrangement B Pursuing individual goals
Pursuing controlled performance
Pursuing complete integration with C D the environment E Pursuing profit 21.
The directors of Dexion plc have made strategic decisions in the past to enhance
their own prestige rather than the wealth of the company's shareholders. However,
at the recent AGM the shareholders expressed satisfaction at the company's
recent profit record. It would appear, therefore, that the directors are involved in: A profit maximisation B revenue maximisation C constraining the business D satisficing 22.
Borneo plc has increased sales revenue by 8% in each of the last few years. A
stated objective of Borneo plc is now to increase sales volume by 10%. Which key
characteristic of quantitative operational goals does Borneo's objective lack? A Being time-bound B Being specific C Being achievable D Being measurable 23.
Bedard plc states in its annual report that it sees itself as becoming the European
market leader for synthetic tents by 20X1. This statement is the company's: A mission B vision C objective D plan 24.
The directors of Portico plc have engaged a firm of consultants to negotiate
standard terms of trade for one of its strategic business units. The terms include
agreement by Portico plc to pay a 5% penalty on any late invoice settlement. This
policy illustrates the company's concern for which major stakeholder? A Suppliers B Lenders C Customers D Trade unions
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BTF Chapter 1: Introduction to Business (combined) 25.
Whether an organisation is classified as a business or not is dependent on its: A mission B vision C primary objective D secondary objective 26.
For a business, which two of the following would be classified as secondary objectives?
The business's market share target The business's productivity A B for next year
improvement target for next year
The business's mission statement
The business's financial objective of C D wealth maximisation E The business's vision 27.
An entity that ensures it can meet the needs of the present without compromising
the ability of future generations to meet their own needs is behaving: A ethically B responsibly C morally D sustainably 28.
Wheels plc runs bus services for local authorities. It has stated that it seeks to
provide long term client satisfaction; maximise shareholder wealth; ensure
worthwhile careers for its employees and a reliable service for the travelling public.
The chairman of Wheels plc has made the following two statements:
Statement (1) Increasing shareholder wealth is a secondary business objective for Wheels plc
Statement (2) Our primary business objective is long term client satisfaction
Identify whether each statement is accurate.
Statement (1) inaccurate; Statement
Statement (1) inaccurate; Statement A B (2) inaccurate (2) accurate
Statement (1) accurate; Statement
Statement (1) accurate; Statement C D (2) inaccurate (2) accurate
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BTF Chapter 1: Introduction to Business (combined) 29.
The public sector is normally concerned with:
providing services to specific groups
raising funds by subscriptions from A
funded from charitable donations B members to provide common services.
the provision of basic government
making profit from the sale of goods C D services 30.
Private sector business organisations do not include: A private limited companies B public limited companies. C partnerships D public corporations 31.
Which of the following is the primary objective of a profit orientated organisation? A Maximise owners' wealth. B
Reducing costs to maximise profit. C Maximise benefit to customers. D
Annual sales growth of at least 10%. 32.
A Co is considering improving its impact on the environment by adopting a
sustainable approach to business.
Which THREE of the following statements are correct with regards to A's decision?
It may improve employee motivation.
It would be expected to reduce the A B administrative burden on management. It could lead to an improved It may help to reduce the C
relationship with shareholders and D
organisation's operating costs. other stakeholders. 33.
Which of the following is not a benefit to the business of reducing its impact on the environment?
Reduced waste and pollution can
The company will have a wider range A B
help to improve the environment. of suppliers to choose from.
Reduced waste may well lead to cost
Customers often prefer dealing with C
savings, improving business profits. D
an organisation that is seen as being more ethical.
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BTF Chapter 1: Introduction to Business (combined) 34.
Which of the following is a Not-for-profit (NFP) organisation? A All of the above B A local primary school C A hospital D A local charity shop 35.
Which of the following is the correct definition of sustainability? The analysis of the external
The reduction in an organisation’s environment to enable further environmental footprint. A B
understanding of the organisation’s
impact on the world around them.
The organisation should be sensitive The use of resources by the
to the needs of all its stakeholders – organisation that does not C D not just their shareholders. compromise the needs of future generations. 36.
Which of the following statements regarding limited companies is correct? Companies are always owned by
Both public and private limited A many different investors. B
companies are allowed to sell shares to the public. Public limited companies have
Shareholders are liable for any debts C
access to a wider pool of finance than D the company may incur. partnerships of sole traders. 37.
Which of the following would be most likely to be classified as a public organisation? A A charity B A public limited company C A co-operative D A national health service 38.
Which of the following organisations is normally found in the public sector? A Businesses B Education C Charities D Clubs
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BTF Chapter 1: Introduction to Business (combined) 39.
Which of the following is a feature of organisations? A All of the above B Profit motive C International focus D Collective goals 40.
Which of the following is most likely to be an example of a non- governmental organisation? A An accountancy partnership B A police force C A charity 41.
Which of the following is a characteristic of an objective that follows the SMART criteria? A Achievable B Resource-based C Authorised 42.
Red Oval is a charity based in Country V, which has a primary aim of reducing the
impact of natural disasters, such as floods and earthquakes. Consider the
following organisational categories: (i) Public organisation
(ii) Non-governmental organisation
(iii) Not for profit organisation (iv) Private organisation
Which of these categories is Red Oval likely to fall into? A (ii), (iii) and (iv) only B (i), (ii) and (iii) only C (i), (ii) and (iv) only D (i) and (iii) only
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BTF Chapter 1: Introduction to Business (combined) Đáp án 1. b, a, c 2. d 3. a 4. b 5. a 6. a 7. d 8. d, b, a 9. b, e 10. c, a, b 11. e, d 12. c 13. b 14. c 15. b 16. a, d 17. c 18. b 19. a 20. c, a 21. d 22. a 23. b 24. a 25. c 26. a, b 27. d 28. a 29. c 30. d 31. a 32. d, c, a 33. b 34. a 35. d 36. c 37. d 38. b 39. d 40. c 41. a 42. a
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