BT- Mock (New 1)

The primary objective of a commercial business is to maintain growth, generate profits and continue as a going concern.

Is this statement true or false?

• True

• False

Which of the following sources of finance would be available to a governmental local authority (city hall)?

• Retained earnings

• Investment bond loan capital

• Share issue

• Venture capital

Which one of the following is a feature of all organisations?

• Objective of making a profit

• Structuring of tasks to achieve the organisation’s objective

• Controlled by professional managers who do not own the organisation

A director’s fiduciary responsibilities include exercising due skill and care when performing their duties, avoiding conflicts of interest and acting in the company’s best interest.

Is this statement true or false?

• True

• False

Which of the following is a correct statement regarding stakeholder conflict?

• Conflict may result because different stakeholder groups have different objectives

• Stakeholder conflict is more likely regarding external stakeholders

• External stakeholders are rarely in conflict as they seek to unify their organisational impact

• None

An institutional investor continues to acquire significant shares in a mid-size company and has gradually increased its modest representation on the board of directors. The investor’s primary motivations for buying these additional shares have been the company’s attractive share price and to further diversify its share portfolio.

 

According to Mendelow’s stakeholder grid which of the following is the most likely mapping of the institutional investor’s power and interest over the mid-size company?

• Keep satisfied

• Key players

• Minimal effort

• Keep informed

Shareholders may be considered as which type of stakeholder?

 

• External

• Internal

• Connected

• None

As a longstanding customer, Walter has been highly critical of Fly Co, an airline which he claims has provided him with bad service and poor value for money for many years. He has written many letters and has made numerous telephone calls, all expressing his concerns. Having now inherited a large block of voting shares in Fly Co, Walter can now voice his complaints at the annual shareholders’ meeting for the first time.

 

With reference to Mendelow’s theory, what is the implication of this development?

• Fly Co could previously have expended minimal effort on Walter’s concerns, but it must now keep him informed

• Fly Co should previously have kept Walter informed, but it must now treat him as a key player

• Fly Co should previously have kept Walter satisfied, but it must now regard him as a key player

• None

Which of the following can be used to compare the power and influence of various stakeholder groups and how their needs should be accounted for?

• The Boston Consulting Group matrix

• Mendelow’s framework

• Corporate governance

• Porter’s competitive factors

Which of the following includes four examples of the seven rights of individuals regarding information that is stored about them?

• Right to: take action to rectify, block, erase or destroy personal data; prevent processing for direct marketing; prevent decisions against an individual by purely automated means

• Right to: receive notification each time data about them is amended; take action to destroy personal data; prevent processing for direct marketing; inspect data in situ in the their home country

• Right to: seek compensation; travel abroad to inspect personal data; inspect personal data in situ in their home country; take action to destroy personal data

• Right to: destroy hardware holding personal data; inspect personal data where it is held in their home country; seek compensation; prevent processing for direct marketing