PT1 TRIAL 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 Synergy

• B Social arrangement

• C Collective goals

• D Specialisation

• E Controlled performance

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 profits rather than maximise wealth

• managers seek to keep all stakeholders satisfied

• owners seek to meet a satisfactory level of corporate responsibility obligations

• owners seek to make satisfactory profits

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 increase the annual profit after tax by 125% in the next 10 years

• To introduce an average of two new products each year for the next six years

• To double the share price within the next 10 years

• To become the market leader in four market segments within the next 10 years

To establish whether a particular organisation should be classified as a business or not, it is necessary to enquire about the nature of its:

• primary objective

• mission

• vision

• secondary objective

For a business, which two of the following would be classified as secondary objectives?

• The business's market share target for next year

• The business's productivity improvement target for next year

• The business's mission statement

• The business's financial objective of shareholder wealth maximisation

• The business's vision

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?

• Shareholders

• Customers

• Bankers

• Suppliers

• Employees

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?

• Lenders

• Suppliers

• Customers

• Trade unions

The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs is known as

• corporate responsibility

• sustainability

• business ethics

• reversability

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 (2) inaccurate

• Statement (1) inaccurate; Statement (2) inaccurate

• Statement (1) accurate; Statement (2) accurate

• Statement (1) inaccurate; Statement (2) accurate

Hu Song works for Premidian plc. Because of his personal stature and credibility he has strong support from owners, employees and customers for his application to be a senior manager. He generates strong feelings of loyalty and commitment among the people that currently work for him. They know that he has great capabilities and should progress in the company.

Hu Song appears to exhibit which kind of power?

• Legitimate power

• Referent power

• Coercive power

• Expert power