Business and Economics Quiz

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

• Controlled performance

• Collective goals

• Social arrangements

• Creation of a product or service

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

• making profit from the sale of 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 of the following statements is correct?

• Not-for-profit organisations are only found in the public sector

• Not-for-profit organisations are only found in the private sector

• Not-for-profit organisations can be found in both the public and the private sector

• Not-for-profit organisations cannot survive without profits

Consider the following list of different organisations: (i) Government departments (ii) Partnerships (iii) Charities (iv) Companies Which of these organisations would normally be classified as BOTH a not-for-profit organisation AND a private sector organisation?

• (i) and (iii) only

• (iii) only

• (i) only

• (ii) and (iii) only

Consider the following statements: (i) Not-for-profit organisations (NFPs) have varied objectives, which depend on the needs of their members or the sections of society they were created to benefit. (ii) The primary objective of government-funded organisations is to reduce costs of their operations and thus minimise the burden on tax payers. Which of these statements is/are correct?

• (i) only

• (ii) only

• Both

• Neither

An example of the principal-agent problem in business is where principals, such as _________ , delegate control to agents, such as _________. The problem is one of devising methods to ensure that agents act in the best interest of the principals. Managerial reward systems which link pay and bonuses to the improvement in _________ is one such method.

• Management

• stakeholders

• shareholder wealth

• shareholders

• efficiency

Over the past year the X Co earned profits before tax and interest of $110,000. It has interest charges of $45,000 and a tax bill of $30,000. Preference share dividends of $15,000 were paid out, as were ordinary dividends of $5,000. X Co has $125,000 of share capital in issue and the shares each have a nominal value of $0.50. Calculate the earnings per share for the year.

• $0.06 per share

• $0.08 per share

• $0.12 per share

• $0.16 per share

The dividend yield is

• 8.6%

• 6.4%

• 4.2%

• 2.1%

The earnings per share is

• $0.15

• $0.185

• $0.214

• $0.243

In the short run, companies will attempt to improve shareholder wealth by maximising:

• Return On Capital Employed

• Net Present Value

• Normal profits

• Average revenue