Question 1

Profit maximisation occurs when total revenue equals total costs

Accepted Answer

A) True 
 B)False  False

Question 2

If marginal revenue is zero

Accepted Answer

A)  Total revenue is constant 
B)  Total revenue falls 
C)  Total revenue increases 
D)  Profits increase A

Question 3

The return on investment

Accepted Answer

A)  Measures liquidity 
B)  Is measured in £ 
C)  Is measured as a percentage 
D)  Is always a forecast. C

Question 4

Satisficing occurs when investors are satisfied by the maximum level of profits

Accepted Answer

A) True 
 B)False

Question 5

An objective is a specific target for a business to achieve

Accepted Answer

A) True 
 B)False

Question 6

If marginal revenue is positive

Accepted Answer

A)  Total revenue is constant 
B)  Total revenue falls 
C)  Total revenue increases 
D)  Profits increase

Question 7

Dividends are the rewards paid out to shareholders

Accepted Answer

A) True 
 B)False

Question 8

Profit is measured by

Accepted Answer

A)  Revenue plus costs 
B)  Costs multiplied by revenue 
C)  Revenue minus costs 
D)  Price multiplied by quantity

Question 9

A mission sets out specific targets for the business to achieve

Accepted Answer

A) True 
 B)False

Question 10

Corporate Social Responsibility means

Accepted Answer

A)  A business has a responsibility to make a profit 
B)  A business accepts a responsibility to be a corporate citizen 
C)  A business accepts a responsibility to be a behave legally 
D)  A business accepts a responsibility not to make a profit

Question 11

A company is owned by shareholders.

Accepted Answer

A) True 
 B)False

Exam 2: Mission and Objectives

Profit maximisation occurs when total revenue equals total costs

If marginal revenue is zero

The return on investment

Satisficing occurs when investors are satisfied by the maximum level of profits

An objective is a specific target for a business to achieve

If marginal revenue is positive

Dividends are the rewards paid out to shareholders

Profit is measured by

A mission sets out specific targets for the business to achieve

Corporate Social Responsibility means

A company is owned by shareholders.