Chapter 1 Organisations

Which of the following would be considered to be an organisation?

a) a sole trader

b) a tennis club

c) a hospital

• a, b and c

• a and b

• b and c

Which of the following are usually seen as the primary objectives of companies?

1) to maximise the wealth of shareholders

2) to protect the environment

3) to make profit

• 1, 2 and 3

• 1 and 2

• 2 and 3

• 1 and 3

State whether each of the following statement is true or false:

If financial statements give a true and fair view it means they are accurate.

• True

• False

State whether each of the following statement is true or false:

If financial statements give a true and fair view it means there is no fraud.

• True

• False

Which of the following is NOT a key feature of an organisation?

• Controlled performance

• Collective goals

• Social arrangaments

• Creation of a tangible product

Which ONE of the following organisations is normally found in the public sector?

• Schools

• Charities

• Clubs

• Businesses

The public sector is normally concerned with which ONE of the following objectives?

• Making profit from the sale of the goods

• Providing services to specific groups funded from charitable donations

• The provision of basic government services

• Raising funds by subscriptions from members to provide common services

Which ONE of these organisations would normally be classified as BOTH a not for profit organisation AND a private sector organisation?

• Government departments

• Partnerships

• Charities

• Companies

A sole trader has unlimited personal liability for business debts.

• True

• False

Both public and private limited companies are allowed to sell shares to the public.

• True

• False