Question 1

When a partnership or sole trader business fails, the partners or sole trader, respectively, are fully responsible for all of the business' liabilities, or debts.

Accepted Answer

A) True 
 B)False  True

Question 2

Why do vertically integrated organisations own and often manage their upstream (or backward) suppliers?

Accepted Answer

A)  In order to create raw materials of a consistent quality 
B)  In order to create a secure supply of raw materials 
C)  To set up forward (or downstream) subsidiaries to distribute and market their products or services 
D)  To use products or services themselves 
E)  All of these responses are correct. 
A)  In order to create raw materials of a consistent quality 
B)  In order to create a secure supply of raw materials 
C)  To set up forward (or downstream) subsidiaries to distribute and market their products or services 
D)  To use products or services themselves 
E)  All of these responses are correct. E

Question 3

Which of the following performance measurements would not be a common key performance indicator (KPI) for a business operating in the private sector?

Accepted Answer

A)  Profit 
B)  Market share 
C)  Productivity 
D)  Sales revenue 
E)  Reduction in poverty in the areas in which they provide their product or service 
A)  Profit 
B)  Market share 
C)  Productivity 
D)  Sales revenue 
E)  Reduction in poverty in the areas in which they provide their product or service E

Question 4

The statement, 'To excel at securing and enhancing the financial wellbeing of people, businesses and communities' is an example of:

Accepted Answer

A)  a vision statement. 
B)  a statement of organisational values. 
C)  an organisational strategy. 
D)  a customer charter. 
E)  a business plan. 
A)  a vision statement. 
B)  a statement of organisational values. 
C)  an organisational strategy. 
D)  a customer charter. 
E)  a business plan.

Question 5

Which of the following groups would be considered to be stakeholders of organisations in the private sector?

Accepted Answer

A)  Customers 
B)  Employees 
C)  Suppliers 
D)  Owners of private-sector business 
E)  All of these responses are correct. 
A)  Customers 
B)  Employees 
C)  Suppliers 
D)  Owners of private-sector business 
E)  All of these responses are correct.

Question 6

A strategy consists of an action with measurable results, and is used as an immediate reaction to new factors in the operational environment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements would not be considered to be a value of an organisation?

Accepted Answer

A)  'We care about our customers.' 
B)  'We conduct all business dealings with integrity.' 
C)  'We are accountable to all our stakeholders.' 
D)  'We will be the largest producer in the world by 2020.' 
E)  'We place trust ahead of profit.' 
A)  'We care about our customers.' 
B)  'We conduct all business dealings with integrity.' 
C)  'We are accountable to all our stakeholders.' 
D)  'We will be the largest producer in the world by 2020.' 
E)  'We place trust ahead of profit.'

Question 8

What does a SWOT analysis examine?

Accepted Answer

A)  The strengths and threats that exist in an organisation's internal environment 
B)  The strengths and opportunities that exist in an organisation's internal environment 
C)  The opportunities and threats that exist in an organisation's external environment, and the strengths and weaknesses that exist in its internal environment 
D)  The opportunities and threats that exist in an organisation's internal environment, and the strengths and weaknesses that exist in its external environment 
E)  The strengths and opportunities that exist in an organisation's external environment, and the weaknesses and threats that exist in its external environment 
A)  The strengths and threats that exist in an organisation's internal environment 
B)  The strengths and opportunities that exist in an organisation's internal environment 
C)  The opportunities and threats that exist in an organisation's external environment, and the strengths and weaknesses that exist in its internal environment 
D)  The opportunities and threats that exist in an organisation's internal environment, and the strengths and weaknesses that exist in its external environment 
E)  The strengths and opportunities that exist in an organisation's external environment, and the weaknesses and threats that exist in its external environment

Question 9

Which of the following statements is true of boards of public sector organisations?

Accepted Answer

A)  Boards of government enterprises are predominantly profit-driven. 
B)  Boards of government enterprises have final decision-making power. 
C)  Boards of government enterprises are responsible to the organisation's shareholders. 
D)  Boards of government enterprises have the power to fire CEOs and appoint new directors. 
E)  Boards of government enterprises are responsible to a range of different stakeholders, and major decisions concerning their personnel and direction are ultimately made by government. 
A)  Boards of government enterprises are predominantly profit-driven. 
B)  Boards of government enterprises have final decision-making power. 
C)  Boards of government enterprises are responsible to the organisation's shareholders. 
D)  Boards of government enterprises have the power to fire CEOs and appoint new directors. 
E)  Boards of government enterprises are responsible to a range of different stakeholders, and major decisions concerning their personnel and direction are ultimately made by government.

Question 10

To be able to determine the success of a strategic goal, the goal must be:

Accepted Answer

A)  agreed upon. 
B)  positive. 
C)  challenging. 
D)  measurable. 
E)  All of these responses are correct. 
A)  agreed upon. 
B)  positive. 
C)  challenging. 
D)  measurable. 
E)  All of these responses are correct.

Question 11

Which of the following business types can issue shares?

Accepted Answer

A)  Public companies and partnerships 
B)  Proprietary limited companies and sole traders 
C)  Sole traders and partnerships 
D)  Proprietary limited companies and public companies 
E)  Public companies and not-for-profit organisations 
A)  Public companies and partnerships 
B)  Proprietary limited companies and sole traders 
C)  Sole traders and partnerships 
D)  Proprietary limited companies and public companies 
E)  Public companies and not-for-profit organisations

Question 12

The term 'conscious capitalism' refers to a business approach in which the main focus is placed on:

Accepted Answer

A)  maximising returns to shareholders. 
B)  benefiting employees. 
C)  consumers and customers. 
D)  protecting the environment. 
E)  benefiting all stakeholders. 
A)  maximising returns to shareholders. 
B)  benefiting employees. 
C)  consumers and customers. 
D)  protecting the environment. 
E)  benefiting all stakeholders.

Question 13

If the director of a company engaged the services of an organisation of which he or she was a part-owner, and therefore stood to make financial gains from the arrangement, it would be:

Accepted Answer

A)  illegal. 
B)  only permissible if agreed to by a majority vote of shareholders at the company's annual general meeting (AGM). 
C)  a conflict of interest. 
D)  a breach of the director's employment contract. 
E)  all of the above. 
A)  illegal. 
B)  only permissible if agreed to by a majority vote of shareholders at the company's annual general meeting (AGM). 
C)  a conflict of interest. 
D)  a breach of the director's employment contract. 
E)  all of the above.

Question 14

Which of the following is an example of a strategic goal?

Accepted Answer

A)  Implement a uniform accounting system by December 2020 to promote consistency across the organisation in financial record-keeping. 
B)  Raise employee retention from 43 per cent to 78 per cent by April 2018. 
C)  Increase the use of robotics in the organisation's three factories so that this contributes 35 per cent of total production by January 2019. 
D)  Improve responses to critical incidents by raising to 90 per cent the number of employees who hold first aid qualifications. 
E)  All of these responses are correct. 
A)  Implement a uniform accounting system by December 2020 to promote consistency across the organisation in financial record-keeping. 
B)  Raise employee retention from 43 per cent to 78 per cent by April 2018. 
C)  Increase the use of robotics in the organisation's three factories so that this contributes 35 per cent of total production by January 2019. 
D)  Improve responses to critical incidents by raising to 90 per cent the number of employees who hold first aid qualifications. 
E)  All of these responses are correct.

Question 15

Which of the following is true in regards to a vision statement?

Accepted Answer

A)  It should specifically set out what the organisation wishes to achieve. 
B)  The goals it sets should be modest and easily attainable. 
C)  It should challenge and motivate an organisation's employees, but also be realistic. 
D)  It should only be made available in full to senior management, with a simplified version then provided to staff members who are lower in the organisational hierarchy. 
E)  It should contain strategies for achieving organisational goals. 
A)  It should specifically set out what the organisation wishes to achieve. 
B)  The goals it sets should be modest and easily attainable. 
C)  It should challenge and motivate an organisation's employees, but also be realistic. 
D)  It should only be made available in full to senior management, with a simplified version then provided to staff members who are lower in the organisational hierarchy. 
E)  It should contain strategies for achieving organisational goals.

Question 16

Which of the following describes the correct order of actions to follow when developing a strategy?

Accepted Answer

A)  Agree on values, mission and vision; conduct a SWOT analysis; perform a gap analysis; implement the strategy 
B)  Perform a gap analysis; agree on values, mission and vision; conduct a SWOT analysis; implement the strategy 
C)  Agree on values, mission and vision; perform a gap analysis; conduct a SWOT analysis; implement the strategy 
D)  Agree on values, mission and vision; implement the strategy; perform a gap analysis; conduct a SWOT analysis 
E)  Implement the strategy; agree on values, mission and vision; conduct a SWOT analysis; perform a gap analysis 
A)  Agree on values, mission and vision; conduct a SWOT analysis; perform a gap analysis; implement the strategy 
B)  Perform a gap analysis; agree on values, mission and vision; conduct a SWOT analysis; implement the strategy 
C)  Agree on values, mission and vision; perform a gap analysis; conduct a SWOT analysis; implement the strategy 
D)  Agree on values, mission and vision; implement the strategy; perform a gap analysis; conduct a SWOT analysis 
E)  Implement the strategy; agree on values, mission and vision; conduct a SWOT analysis; perform a gap analysis

Question 17

Which of the following questions is not one that would be asked when creating an organisational strategy?

Accepted Answer

A)  'Where are we now?' 
B)  'Where do we want to be?' 
C)  'How will we get there?' 
D)  'How many staff members will be required to maintain the operation of the factory over the upcoming Christmas period?' 
E)  'Should we aim for inorganic growth, through acquisitions or mergers, or organic growth?' 
A)  'Where are we now?' 
B)  'Where do we want to be?' 
C)  'How will we get there?' 
D)  'How many staff members will be required to maintain the operation of the factory over the upcoming Christmas period?' 
E)  'Should we aim for inorganic growth, through acquisitions or mergers, or organic growth?'

Question 18

An organisation's values define the organisation, in the sense that they influence its:

Accepted Answer

A)  culture. 
B)  profits. 
C)  structure. 
D)  strategic direction. 
E)  All of these responses are correct. 
A)  culture. 
B)  profits. 
C)  structure. 
D)  strategic direction. 
E)  All of these responses are correct.

Question 19

The weekly allocation of tasks and duties to each of a section's employees would most likely to be the responsibility of:

Accepted Answer

A)  the chief executive officer (CEO). 
B)  the board of directors. 
C)  a first-line or front-line manager. 
D)  a middle manager. 
E)  a human resources (HR) manager. 
A)  the chief executive officer (CEO). 
B)  the board of directors. 
C)  a first-line or front-line manager. 
D)  a middle manager. 
E)  a human resources (HR) manager.

Question 20

A paper manufacturer expanding the range of its production capability to include making compatible A4 folders and plastic sheets is an example of:

Accepted Answer

A)  vertical integration. 
B)  horizontal integration. 
C)  organic growth. 
D)  inorganic growth. 
E)  both horizontal integration and organic growth. 
A)  vertical integration. 
B)  horizontal integration. 
C)  organic growth. 
D)  inorganic growth. 
E)  both horizontal integration and organic growth.

Exam 2: The Operating Environment

When a partnership or sole trader business fails, the partners or sole trader, respectively, are fully responsible for all of the business' liabilities, or debts.

Why do vertically integrated organisations own and often manage their upstream (or backward) suppliers?

Which of the following performance measurements would not be a common key performance indicator (KPI) for a business operating in the private sector?

The statement, 'To excel at securing and enhancing the financial wellbeing of people, businesses and communities' is an example of:

Which of the following groups would be considered to be stakeholders of organisations in the private sector?

A strategy consists of an action with measurable results, and is used as an immediate reaction to new factors in the operational environment.

Which of the following statements would not be considered to be a value of an organisation?

What does a SWOT analysis examine?

Which of the following statements is true of boards of public sector organisations?

To be able to determine the success of a strategic goal, the goal must be:

Which of the following business types can issue shares?

The term 'conscious capitalism' refers to a business approach in which the main focus is placed on:

If the director of a company engaged the services of an organisation of which he or she was a part-owner, and therefore stood to make financial gains from the arrangement, it would be:

Which of the following is an example of a strategic goal?

Which of the following is true in regards to a vision statement?

Which of the following describes the correct order of actions to follow when developing a strategy?

Which of the following questions is not one that would be asked when creating an organisational strategy?

An organisation's values define the organisation, in the sense that they influence its:

The weekly allocation of tasks and duties to each of a section's employees would most likely to be the responsibility of:

A paper manufacturer expanding the range of its production capability to include making compatible A4 folders and plastic sheets is an example of:

The Changing World of Work

The Formal Organisation

The Informal Organisation

Establishing and Managing Priorities

Building a Strong Communication Foundation

Strengthening Your Personal Skills

Building Effective Working Relationships

Understanding Leadership

Understanding Motivation, Engagement and Retention

Increasing Performance and Productivity

Assigning Work and Delegating Duties

Building Productive Work Teams

Leading Todays Teams

Providing Formal and Informal Performance Feedback

Managing Underperformance

Developing, Managing and Monitoring Operational Plans

Solving Problems and Making Decisions

Satisfying the Quality, Innovation and Continuous Improvement Imperatives

Caring for Customers

Planning and Managing Projects

Introducing and Managing Change

Identifying and Managing Risks

Managing for Sustainability

Recruiting and Inducting Employees

Making the Most of Diversity

Encouraging a Learning Environment and Developing Employees

Leading and Attending Meetings

Ensuring a Safe and Healthy Workplace

Managing for Psychological Safety and Well-Being

Filters