business

A steel manufacturing company has experienced steady growth in recent years and thus has increased its pollution levels in violation of environmental laws. Which of the following stakeholder interests have been affected?

All of the choices

In the process of _____ ______ ; representatives of the employer (management) and of the employees attempt to negotiate work-related agreements that benefit both parties.

Collective bargaining

According to Peter Drucker, which of the following is not a basic function of managers?

Commanding

XYZ is a public limited company that wishes to expand further by raising more shares. Which of the following could be a drawback of this decision for the owners?

Dilution of control

Outsourcing manufacturing activities may provide several advantages to a company, including:

Drawing on expertise not available in the company.

What is the best explanation of why Daniel Pink argued that motivational models developed in the early 1900s are not applicable in today's work environment?

During the early 1900s, employees focused on the reward, rather than solving a problem.

All of the following are benefits of Social Media Marketing and give it a competitive advantage over competition, except:

Easy for any business to use

What kind of culture exists in firms that empower workers to make important decisions and to act on their own initiative?

Innovative culture

According to John Adams, what are the cognitive and affective attributes an employee brings to a business?

Inputs

If a company does 80% of its hiring internally, what type of non-financial motivator would it be using?

Job enrichment

A business making exclusive wedding gowns for the fashion elite is using which production method?

Job production

Which of the following is a hygiene factor according to Herzberg's theory?

Job security

Which of the following can be used as a method to resolve conflict between the shareholders and the managers of a business?

Justified distribution of profits

Peter started up his own bakery. He was doing well, and was soon to make a return on his investment. He had five employees who worked long hours with no breaks. He often had them work overtime, without additional pay. Soon, however, Peter was faced with legal issues and attorney fees which cut into his profits. Based on the information above, what legal requirements has Peter violated?

Labour laws

All of the following are advantages of operating as a sole trader except:

Lack of continuity of the business

Which of the following describes the difference between the current ratio and acid test (quick) ratio?

The acid test ratio excludes the inventories figure from the current assets

Which of the following can be a benefit to society of having the electricity service operated by a public sector corporation?

The service is made available to all

In a given situation, which of the following factors is the least likely to cause a leader to adjust his or her leadership style?

The stage of the product lifecycle of the task

Which of the following is an advantage of external recruitment?

There is a wide choice of potential candidates

Carpets Co. have an acid test ratio result of 0.8 and a current ratio result of 1.6. Which of the following is most likely to be true in this situation?

They are holding too many inventories

If a business's sales are falling but its market share is increasing, what must be happening to the total sales in the market?

They must be decreasing

Kotter and Heskett suggested that there are two types of organisational culture, adaptive and inert. Inert cultures are so named because:

They tend to be inward-looking and resistant to change.

Methods used by employers engaged in conflict with organised labour include:

Threats of redundancies, changes of contract, lock-outs, closure.

Organisation X operates in a developing country and is experiencing a low rate of motivation among its employees. What would be an appropriate way to try and motivate the employees?

Time and piece rate wages

The primary objective of a labour union is:

To advocate in the interests of its members on issues such as wages and working conditions.

The main reason for a contingency plan is:

To ensure a smooth return to operations after a crisis.

Which of the following is an unlikely reason for having a no-strike agreement?

To provide employers with greater leverage in negotiations with employee union representatives.

What is the role of the supplier as a stakeholder?

To provide the business with inventories needed for production

Which of the following is not a purpose of a business plan?

To support a well-established business

A leader who is both willing and able to adjust his or her leadership style, allowing for varying degrees of control, collaboration, and group decision making according to the demands of the situation and the employees involved, can be said to use a ______ leadership style

situational

Which of the following is both an internal and external stakeholder of a nuclear power plant?

A company shareholder who resides near the plant

Which of the following denotes the extent to which a person is held responsible for oversight of a duty or task?

Accountability

When employees engage in methods such as slowdowns or overtime bans, the main purpose is to:

Achieve objectives such as improved compensation and working conditions.

This ratio deals with a firm's ability to use its liquid assets, excluding stock, to pay for its short-term liabilities.

Acid test (quick) ratio

Which theory of motivation supports the idea that workers are motivated if there is fairness in remuneration packages?

Adams

Which of the following would be considered an inappropriate marketing mix?

Advertising swimwear in a skiing magazine

Which of the following is not a reason for a worker to migrate to another country?

Ageing population

Which of the following is not directly linked to sustainable production?

Aims and objectives that are poorly articulated

The operations manager recommends extending the product life cycle by adding new products to the portfolio. Which department would this have an impact on?

All departments

A business has decided to cut its workforce by 25%. Which of the following stakeholders will be affected by this decision?

All of the choices

A company decides to increase the production of its product line by 10%. Which stakeholder groups will be affected?

All of the choices

A manufacturing company burns an enormous amount of coal in its production process. Its emission levels are dangerously high and unhealthy. The government has just passed a law to fine such manufacturing companies for excessive emission release. The company now needs to plan accordingly. What elements of the STEEPLE analysis should the company carefully examine?

All of the choices

Which of the following is considered to be a variable cost?

Sales commission

Company 'X' dominates the technology industry. Which of the following concepts does it most likely focus on?

Innovation

Factors of production do not include:

Innovation

If a business's opening stock is $15,000 and closing stock is $10,000, the average stock is:

$12,500

Peter Drucker, the famed management guru, is associated with which of the following statements?

'What gets measured gets improved.'

Calculate a firm's stock turnover in terms of times, if it has opening stock worth $15,000, closing stock worth $5,000, and the cost of the goods sold was $12,000.

1.2 times

Ritzy Dance School Ltd has current assets to the value of £75,000 and current liabilities to the value of £50,000. Their inventory of dance wear is worth £5000. Which of the following is their acid test (quick) ratio result?

1.4 : 1

Which of the following is the recommended ratio range for the current ratio?

1.5 to 2:1

Calculate a firm's stock turnover in days if its average stock is $13,000 and the cost of goods sold is $25,000.

189.8 days

If a business invests $100 in capital, and this generates a $20 return before interest and tax, what is the ratio of return on capital employed?

20%

If a business has a sales revenue of $500,000 and its net profit before interest and tax is $130,000, its net profit margin is:

26%

Lamp Ltd has current assets to the value of £100 000 and current liabilities to the value of £50 000. Which of the following is their current ratio result?

2:1

A company asks workers to evaluate their immediate supervisor to gather information about the supervisor's leadership abilities. This is most likely a component of:

360-degree feedback

If a business has expenses of $25,000, gross profit of $340,000 and capital employed of $700,000, its return on capital employed is:

45%

If a business has long-term liabilities (loan capital) of $50 million, share capital of $20 million and retained profits of $35 million, calculate its gearing ratio.

47.6%

Calculate the creditor days ratio if a firm owes $60,000 to creditors and has sold goods that cost it $450,000.

48.7 days

The cost of goods sold for Kushion Co. is $275,000 and their average inventory is $55,000. Which of the following is the correct result for their inventory turnover ratio (represented in number of times per year)?

5 times per year

Lion Ltd's profit before interest and tax was £550 000 and their capital employed was £1 000 000. Which of the following is their ROCE?

55%

If a business has debtors of $35,000, cash of $50,000 and stock of $15,000, and current liabilities of $13,000, what is its current ratio?

7.69

Which of the following would be least likely to cause a culture clash within an organisation?

A change in the method of training new hires from internal to outsourced.

Which of the following is not an external factor that impacts human resource planning?

A change to a company's organisational structure

Which of the following is not an example of a 'sectoral change'?

A farmer in Austria begins growing organic food

Which of the following would not likely be a cause of a cultural clash within an organisation?

A firm decides to relocate its headquarters from San Francisco to Los Angeles, keeping and moving all of its employees in the process.

To which of the following would an appreciation of the US dollar most likely represent a threat?

A grapefruit farmer in Florida

Which of the following is not likely to be a cause of high labour turnover in an organisation?

A high rate of unemployment

Which of the following is not a feature of a partnership?

A partnership has less legal accountability than a sole trader

Couples are getting married increasingly later in life and having fewer children. To which of the following would this likely be a threat?

A retailer selling in bulk

Under which conditions might a laissez-faire leadership style be most appropriate?

A university humanities department with highly experienced professors.

Which of the following is not a personal characteristic of an effective leader?

Ability to deal with a constant flow of dilemmas

All of the following are features of a company except:

Access to funding is difficult

Susan would like to open up her own art gallery. She is a passionate artist who would like her work and the work of local artists to be recognised. She is also looking to make more money than she is currently making, by selling the art work. She would also like to be her own boss. What are the reasons that Susan wanted to start up her own business?

All of the choices

The process of starting up a business involves: Organising the basics, researching the market, planning the business, as well as which of the following?

All of the choices

What is the purpose of using a stakeholder analysis?

All of the choices

Which of the following is a disadvantage of operating as a public limited company?

All of the choices

Which of the following is a disadvantage of operating as a sole trader?

All of the choices

Which of the following is an element of the marketing plan?

All of the choices are elements of the marketing plan.

In a fish market, where one would expect to find many small, similar businesses in a single location, which elements of the marketing mix would you anticipate being roughly the same across all sellers?

All of the options

Which of the following is a function of the human resources department?

All of them

An advantage of operating as a sole trader is:

All of these

Which of the following is a factor that can lead to changes in sector importance in an economy?

All of these

Which of the following is a function of the finance department?

All of these

Which of the following is an example of an activity carried out by a charity?

All of these

Managers are likely to experience conflict with which stakeholder group?

All of these stakeholder groups

Which of the following methods can businesses use to predict sales?

All three methods

A dismissal is different from a redundancy in that a redundancy is the result of a cost-cutting measure, an employee's position being eliminated, or both. A dismissal however, involves:

An employee being replaced by another employee in the same job

Demographic changes that can impact human resource planning may include all of the following except:

An increase in the use of 360-degree feedback by companies to appraise employees.

When a hair stylist locates herself in a posh locality the rent that she has to pay for her high-end salon is

An overhead

The six change approaches to change management involve management using all of the following except:

Assessment and dismissal

Which of the following is an advantage of contingency planning?

Assurance to stakeholders including employees and customers

Roxanne owns and runs a small bakery in rural England. Wanting to support her local farming industry, she uses only locally milled flour in all her pies. Which of the following best describes the transaction in which Roxanne purchases her flour?

B2B

A business with a gearing ratio of 65% would:

Be risky for investors; however, the chance of high returns may be possible

Identify the item which is not a type of appraisal.

Behavioural

The challenge for leaders is to get all workers to follow and share the vision of the company. Which of the following could be a strategy to achieve this?

Being a role model

Which of the following is an example of an opportunity that technology provides for businesses?

Better quality of products, mass production

The purpose of the Annual General Meeting for the shareholders is:

Both of these

Which of the following is an advantage to partners of forming a partnership business?

Both of these

Which of the following is an example of the opportunities presented to business by the sociocultural environment of an economy?

Both of these

Which of the following is least likely a disadvantage of contingency planning?

Brand image mantained by contigency planning.

Which of the following is associated with long chains of command, inefficient use of resources, and excessive attention to procedures and rules, as typified by large institutions (e.g. the Department of Justice).

Bureaucracy

Which of the following is not a feature of the organisational chart?

Bureaucracy

Which of the following is not an example of a crisis?

Business location

Which element of the business plan emphasises who will make the decisions and what type of business structure the enterprise will have?

Business organisation

According to the power interest model, how should a business address the interests of a group of stakeholders that have high interest in the business, and a high degree of power over it?

Businesses should prioritise these stakeholders' needs over all other stakeholders' needs.

Sales forecasting is very important to a firm in order to plan appropriately. However, sales data can have different fluctuations, making it difficult to properly predict. What is the method that helps in developing accurate trend lines, smoothing out any fluctuations in the data?

Calculating moving averages

Which of the following is not a characteristic of a service:

Can be returned

Which of the following is not a feature of an intangible product?

Can be stored as stock

A business uses a combination of human, physical and financial resources to produce goods and services. A car manufacturer uses heavy machinery as a form of input, to produce different parts of its cars. How would you categorise the production process for this manufacturer?

Capital-intensive

Which of these industries is most likely to be affected by seasonal variations in sales?

Carbonated soft drinks

Which of the following refers to the hierarchy of reporting relationships from the entry-level employee to senior management, who must answer to whom, and the order in which authority and power is established from top to bottom?

Chain of command

All the following points are consequences of cultural clashes except:

Change in leadership

The disappearance of Malaysia Airlines flight MH370 was a catastrophic crisis for the airline. Aside from the lost aircraft that disappeared off radar screens, grieving relatives were not satisfied with the airline's action and response to this crisis. In this situation, what approach would have been best for Malaysia Airlines?

Communicate to its external stakeholders in an open and timely way, ensuring they are aware of every action that the airline is taking to find the aeroplane.

Which of the following does effective crisis management most rely on?

Communication

Administrative costs include

Costs on office rent, salaries, office equipment.

What are direct costs?

Costs that can be attributed to a particular product or service.

Labour intensive production includes:

Cotton picking

Identify the sustainable business strategy that focuses on waste reduction and reuse of resources for the next processes.

Cradle-to-cradle manufacturing

What kind of labour union is the one that only accepts members who share the same skill?

Craft union

Which of the following, is most unlikely to be the objective of for-profit organisations?

Creating awareness of social issues

This ratio measures the average number of days it takes a firm to pay its short-term debts.

Creditor days

With the rise of multinational companies, increasing mobility of labour, and increasing diversity in the workforce, we would expect ______; sensitivities to play a greater role in management decisions regarding human resources.

Cultural

Which of the following human resource activities should not be outsourced?

Cultural change programmes

Company 'Y' has changed its marketing strategies to targeting younger customers in an affluent city. They have taken the impact of which concept into consideration?

Culture

Baby Bees Shampoo manufactures natural shampoos and body wash made from soy proteins. Its products are known to be safe for children's scalps, skin and hair. It differentiates itself by being plant-based. What advantage will Baby Bees Shampoo experience due to this differentiation?

Customer loyalty

Governments may choose to block mergers between large businesses if they believe that the resulting business's market share will be too high and therefore anti-competitive. Who are the Government predominantly trying to protect by blocking such a merger?

Customers

Which of the following is not an internal stakeholder group?

Customers

A home construction company has decided to increase production of its single family homes, as demand for them has steadily increased over the past two years. Increased home sales in an economy is an indication of overall growth. The company is experiencing which type of fluctuation in regards to its sales?

Cyclical fluctuation

A car dealership is forecasting that sales will increase based on a trend of economic growth. Which type of variation are they taking into consideration when forecasting sales?

Cyclical variation

What is the most cost-effective medium for social marketing?

Depends on the target audience

Without damaging their relationship with a supplier or customer, which of the following is preferred by businesses?

Debtor days to be as short as possible and creditor days to be as long as possible

Which of the following is the most appropriate strategy for adding value?

Delivering excellent service, offering convenience to customers and building a brand

A small taco stand has been offering extremely cheap meals in the local town square for more than five years. It has recently experienced a drop in sales as customers prefer more upscale restaurants in the area. New job opportunities have opened up in the city with the establishment of new companies. The owner of the taco stand overlooked which element of the STEEPLE analysis, and did not anticipate the loss of sales?

Economic

The gap between the rich and the poor is widening in many countries. A smartphone company is looking to expand globally and needs to consider the purchasing power of individuals in the countries they wish to sell their products in. Which element of the STEEPLE analysis should be prioritised by this smart phone company?

Economic

Which of the following are the three 'Es' of STEEPLE?

Economic, Environmental, and Ethical factors

If a company gives its workers the authority to be in charge of their own jobs and execute their own ideas, what kind of non-financial reward is it using?

Empowerment

Which of the following is not a limitation of laissez-faire management?

Encouraging personal growth

Which factor of production combines the other three factors in order to generate outputs?

Entrepreneurship

Analytical tools of the external environment have evolved over time from PEST to PESTLE and finally STEEPLE. What is the final element reflected in STEEPLE that is not found in the previously used tools?

Ethical

Identify which element of the organisational culture lists the dos and don'ts that must be observed by staff when dealing with external stakeholders.

Ethical code of conduct

When businesses consider the moral implications of their marketing strategies, that is in direct relation to which concept?

Ethics

An example of a contingency plan for a fire in a hotel would be:

Evacuate all staff and guests, gather everyone in a safe place outside, and register all people.

A firm must cover its opportunity cost, variable costs and fixed costs to stay in business. True or false?

False, only variable and fixed costs need to be covered.

Which function of the firm is directly related to the following: the liquidity (how quickly an asset can be turned into cash) of the firm and sales forecasting.

Finance and accounts

Mo and Sam have made the decision to form a partnership and will be selling second-hand books. Which of the following is an advantage to Mo and Sam of setting up their business as a partnership?

Financial performance remains confidential

Planning based on STEEPLE allows a business to adapt quickly to changes. What is this type of strategy known as?

First mover advantage

Which of the following organisational structures limits opportunities for employee advancement within the company or organisation?

Flat structures

Identify which of the following practices supports employee work-life balance.

Flexible working practices

Which of the following is not an example of a capital resource?

Forest

Which of the following individuals believed in the standardisation of work methods?

Frederick Winslow Taylor

Different approaches to structuring an organisation can include divisions according to:

Function, product, and/or region

This ratio measures the extent to which the capital employed by a firm is financed from loan capital.

Gearing ratio

A clothing company that makes seasonal products for all age groups would like to expand its business to different locations across the United States. What would be the best type of segmentation to use in order to properly target consumers across the country?

Geographic

Which is least likely a benefit of a contingency plan?

Gives managers a chance to predict crises.

Which of the following is a disadvantage of job enlargement?

Giving employees more duties, just for the sake of adding more work

Which of the following is an external stakeholder group that would likely have a high stake in a casino's financial performance?

Government

When a manager has a greater span of control than another, this is to say that he or she:

Has a higher number of employees under his or her direct supervision.

There are both limits and benefits to marketing planning. Which of the following is not a limitation of marketing planning?

Having a marketing budget makes sure that funds are not wasted on failing activities.

A form of external recruitment that relies on luring an employee away from his or her current employer is known as:

Headhunting

Which of the following theorists had a motivation theory based on hygiene and motivational needs?

Herzberg

Amaze Travellers provides exclusive products including smartphone accessories for travelling content creators and scratch maps for travellers who love to treasure travel experiences. Which of the following will be a disadvantage to Amaze Travellers due to targeting a niche market?

High Risk

Which of the following is a warning sign of poor motivation in the workplace?

High absenteeism

In anticipation of rising fuel costs, which strategy would least suit an airline's contingency planning?

Hiring the most qualified pilots.

A mechanical problem on an aircraft during flight is most likely a crisis triggered by:

Human error during maintenance checks.

Determining whether the business has the right quantity and quality of staff in order to achieve marketing objectives is a function of:

Human resource management

Which function of the firm is directly related to the following: Sales forecasting helps a firm plan in regard to how many employees are currently needed, as well as how many will be needed in the future.

Human resources management

Which of the following is an indirect cost?

ICT costs

In comparing a partnership to a sole trader, all of the following are considered advantages to a partnership, except:

In a partnership, profits need to be shared among the partners

Which would be the most effective way to get promotional material to a target market of mobile games users.

In-game adverts

Which of the following is a strategy to improve the current ratio?

Increase payment period with trade payables

Which of the following is not an advantage of being a market-oriented business?

Increased expenses due to continuous research

Steve has decided to acquire a business further down the chain of production from his current business. This is known as vertical integration. This will result in all of the following except:

Increased market share

Which of the following is not an advantage of being a market leader?

Increased rivalry

The need for managers to be more paternalistic and nurturing of staff in difficult times.

Increases in unethical behaviour.

Which of the following tactics is not a reason for workers to resist strategic change?

Incremental change

Global advertising expenses for an auto manufacturer is a form of ______cost

Indirect

Which of the following is a technological factor in a STEEPLE analysis?

Infrastructure

Deal and Kennedy expressed an implicit criticism of 'process' organisational cultures, where risk-taking is minimal and feedback and rewards are little to none. These process cultures have been known to exist in:

Insurance and government agencies.

Which of the following current assets is deducted when calculating the acid test (or quick) ratio?

Inventories

Vivaan Mathreja, a fashion and business enthusiast, wishes to introduce a new range of clothing. Which of the following elements will not be a part of his marketing plan?

Investment appraisal

Which of the following is a valid reason to convert a business from a private limited company to a public limited company?

It can make it easier for the firm to grow through mergers and acquisitions

Identify which of the following is a benefit of a single union agreement.

It causes fewer disruptions for the employer

Marketers use a position map as a tool to plan their positioning strategies, in order to give their products a competitive advantage. Which of the following is not a characteristic of a position map?

It is a complicated and time consuming process

Which of the following is true of a STEEPLE analysis?

It should be reviewed constantly

Which of the following is an advantage of delegation?

It shows trust in subordinates, which can motivate them

Which of the following is an opportunity for businesses presented by the legal system?

It stops anti-competitive practices.

Which of the following is an advantage of a profit-related pay system to a firm?

It strengthens employee loyalty

Jennifer and Robert have three adult children. They have just moved into a new house, and are thinking about converting their antique shop from a partnership to a private limited company. Which of the following is the most likely reason why they are considering this change?

It would better secure the continuity of their business

Which of the following is not a characteristic of being a market leader?

Its status doesn't affect its future strategy and objectives

It can be said that leadership roles contrast with that of management in which of the following ways?

Leadership is concerned with setting the direction, management is about executing the plan.

A parachute jumping business is starting up in southern Australia. It is currently conducting a STEEPLE analysis for the business. One of the business owners is concerned about safety issues and regulations. Which element of the STEEPLE analysis needs to be carefully examined in regards to the safety of the customers?

Legal

The bargaining strength of labour representatives will depend on a number of factors, including all of the following except:

Legal parameters established by governing bodies such as the International Court of Justice.

Which stakeholder would most likely not be interested in a firm's profitability?

Local community

Capital employed is the addition of:

Long-term liabilities + share capital + retained profit

Which of the following is a strategy to improve the gross profit margin?

Lowering the cost of goods sold

What might be the conflict between the management of a public limited company and its owners when deciding how to use the company's profits?

Manager wishes to reinvest profits in the business while owners aspire to earn higher returns or dividends.

Which of the following is not one of the three key roles of management identified by Charles Handy?

Managers as organisers of the structure

Which of the following steps is not part of the conciliation process?

Manipulation

Which of the following is a benefit of the market-oriented approach?

Market research reduces the risk of failure

Which of the following is not a factor in the effectiveness of crisis management?

Marketing

Which of the following is not a limitation to sales forecasting?

Marketing strategies can be modified based on future trends in order to increase market share.

A major beverage company decides to target an entire market in order to sell its products to a large number of people, thereby increasing sales. Which targeting strategy have they used?

Mass marketing

The manufacture of large quantities of a standardised good is:

Mass production

Which of the following is one of the major advantages of the matrix structure?

Matrix structures are a good way of sharing resources across functional departments.

What can be a weakness of using product positioning maps?

Measuring qualitative factors can be difficult

Which of the following is a kind of training that involves an experienced member of staff working closely with another employee in order to coach him or her, imparting specific knowledge and skills?

Mentoring

Linda is a home baker, who often sells baked goods in her small town. She would like to buy a new stove and try to increase her production. She is considered to have low income and does not have any assets to her name. What would be the best option for Linda to get the money needed to buy a new stove?

Micro-financing

Which of the following are NOT considered basic needs in Abraham Maslow's theory?

Morality, lack of prejudice, problem solving

All of the following are profit-based organisations except:

NGO

Which of the following resources are included in the factor of production known as land?

Natural resources, renewable and non-renewable resources

Innovation can bring about positive as well as negative impacts on employer-employee relations. Examples of negative impacts on employer-employee relations may include all of the following except:

New technologies have allowed employees to train and educate themselves, making supervisors effectively redundant.

Which of the following is used to calculate capital employed?

Non-current liabilities/Long-term Liabilities + Share capital + Retained profits

Which of the following is a characteristic of a non-governmental organisation (NGO)?

Non-profit organisation

Kim's role in her organisation is to ensure that there are no defects in any of the widgets that leave the factory floor. She also strives to keep cost to a minimum by identifying inefficiencies in the production process. Kim's position would best fit in which functional area?

Operations

Which function of management is concerned with acquiring and controlling inputs to produce goods and services (output) in order to satisfy the needs and wants of consumers?

Operations management

Which function of the firm is directly related to the following: Sales forecasting helps a firm to determine how much of the product to produce in relation to the available stock, as well as to plan how much is needed in the future.

Operations management

It's a good idea for job-seekers to pursue organisations whose culture matches their own beliefs and values. For example, people who prefer to have greater autonomy and less formalisation in their work may seek:

Organisations with flatter structures and more decentralisation.

Firms may conduct induction training of employees in order to:

Orient new hires to the company's work environment

Which of the following gearing ratio results would be considered 'highly geared'?

Over 50%

Disadvantages of centralisation include all of the following except:

Overall loss of control

One of the potential problems associated with delayering in an organisation is:

Overburdening remaining employees and managers

A decision to introduce new machinery at a refinery could reduce the number of jobs but lead to higher profits. Which stakeholder groups have the most conflicted interests in this scenario?

Owners and employees

Which stakeholder groups have the most conflicted interests in a scenario where a business uses a cheap method of production that raises profits but also increases pollution?

Owners and pressure groups

Which kind of leadership style is exemplified in the following statement: 'I just love my boss. He always looks out for all his staff, almost like we're his kids! As long as you do as you're told and keep his trust, you know you'll be well taken care of as an employee. I think that's why so many people have chosen to stay with the firm a long time."

Paternalistic

An employee receiving a cash bonus in addition to ordinary pay, based upon pre-determined targets, is a form of what type of financial pay?

Performance-related pay (PRP)

What kind of organisational culture might we expect to find more prevalent within small professional practices (lawyers, architects, doctors), in celebrity agencies, and in professional sports organisations?

Person culture

Which of the following types of business might expect to be least affected by an economic downturn in terms of their forecast sales?

Pharmaceuticals

What is the type of financial reward that motivates through increased output?

Piece rate wages

A popular beverage company established its unique selling point by having its product available globally in many stores. Which of the 4 'Ps' has it used to differentiate itself from its competition?

Place

Which of the following are the key functions of management?

Planning, commanding, controlling, coordinating, organising

Which of the following is not a pillar of sustainability for businesses to follow?

Political

Which of the following could lead to a low inventory turnover ratio?

Poor range of goods

XYZ Ltd manufactures a high volume of soaps, detergents, body wash and lotions for global export. Which of the following is not an advantage to XYZ Ltd?

Premium pricing

For years, Andrew has dreamed of owning and operating a food truck. Today, following months of intensive feasibility studies, Andrew has decided to turn his dream into a reality. What is Andrew's next step?

Prepare a business plan

You are the manager of an IB international school in China and you hire teachers from all over the world. Which payment system would you use for your staff?

Salary and fringe benefits

A truck company is drafting a contingency plan to prepare them for any possible crises. Part of the company's crisis management plan is to ensure that they can swiftly return to hauling cargo as quickly as possible in case of an emergency incident. In order to do this, the most urgent action would be to:

Prepare links with alternative car parts suppliers.

Presidential Properties have a gearing ratio result of 70%. Which of the following most accurately describes this result?

Presidential Properties has high gearing, meaning that the firm's operations rely heavily on funding by long-term debt.

Which stakeholder group would be most likely to use boycotts, lawsuits, lobbying, and the media to bring about the end of the shark fin trade?

Pressure groups

All of the following statements are true of external stakeholders except:

Pressure groups focus on the general interests of all.

A restaurant determines how much it costs to make each item on its menu. Which element of the marketing mix is this most likely to affect?

Price

What would be the most appropriate pricing strategy when targeting 'innovators' for the release of a new smartphone?

Price skimming

Which of the following is not a business function?

Primary Sector

Company X would like to create a unique selling point for its mobile phone. The phones are of good quality with a long term warranty. Which element of the marketing mix might company X highlight to differentiate its mobile phones?

Product

A cosmetics company that does not test its products on animals may have a USP in which area or areas of the marketing mix based on this?

Product and promotion

A not-for-profit school decides to offer martial arts classes after school for €50€50 per term in the school gym. Details of these classes are emailed to all students and parents/carers. Which aspects of the marketing mix does this offer consider?

Product, price, promotion and place

All of the following are examples of companies evolving their marketing strategies in response to customer preference except:

Product-oriented strategies

Which of the following is not a feature of a public-private partnership (PPP)?

Profit is the priority

Gross Profit Margin measures a firm's:

Profitability

Net Profit Margin measures a firm's:

Profitability

Businesses operating in industries such as construction, oil extraction, and software development benefit from this kind of organisational structure, where teams are assembled from different functional departments to complete a specific programme.

Project-based organisation

Company X reviewed the elements of its marketing mix and decided to revise its form of communication to the consumer. Which of the four 'Ps' has it addressed?

Promotion

Which month has the worst variation between sales and the eight-quarter moving average?

Q3

A business operating in a developing country used past sales data to predict future sales. Based on these predictions they decided to increase production. However, their sales were much lower than the predicted amounts, and thus the business suffered huge losses. What factors did the business overlook?

Qualitative factors

Which of the following accurately describes the return on capital employed?

ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed

Frederick Herzberg's 'hygiene needs' do not include which of the following?

Recognition

Which of the following is a strategy that can be used to improve a company's return on capital employed percentage?

Reduce non-current liabilities

Which of the following is a strategy to improve the acid test (quick) ratio?

Reduce overdrafts

A firm may want to reshore jobs in order to:

Reduce the risks of losing intellectual property

Which of the following is not an advantage associated with decentralisation in an organisation?

Reduced chance of mistakes in decision making

Which of the following is a disadvantage of mass production?

Reliance on machinery

The main aim of any crisis management situation is to:

Return to normal business operations as swiftly as possible.

Which of the following is a characteristic of successful entrepreneurs?

Risk taker

According to Charles Handy's theory, what kind of culture would be suitable for a school?

Role culture

Which of the following is a direct cost?

Running costs for one branch in a chain of restaurants

A swimsuit retailer is analysing its financial position and needs to make a decision to be able to remain profitable throughout the year. One of the managers suggests that the business expands its product line in the form of warmer clothing. Which of the following fluctuations is the business trying to address?

Seasonal fluctuations

Which type of variation should a swimsuit company take into consideration when forecasting sales?

Seasonal variation

What is the name given to periodic fluctuations in sales revenue over a given time period, usually during certain times in the year?

Seasonal variations

Which is the best way for a business to reduce its gearing ratio?

Seek alternative sources of finance

Which of the following can be a major barrier to effective change management?

Self-interest

Which of the following strategies could be used to improve the gearing ratio?

Sell more shares

Which of these groups of workers is not a part of Handy's Shamrock organisation?

Senior management

Which of the following is considered to be an internal stakeholder?

Shareholders

Which stakeholder group would most likely have the following priorities: return on investment, profitability, capital gains and dividends?

Shareholders

______ ;are interested in the returns they receive on their investment in the company.

Shareholders

Which of the following statements is not true with regard to internal stakeholders?

Shareholders are interested in wage increases to employees.

An online clothing company is making several changes to its objectives. The firm is looking closely at the age group it is targeting. It is exploring whether its products are considered fashionable and what improvements can be made to accommodate different lifestyles. Which element of the STEEPLE analysis is the company currently examining?

Social

Which of the following is considered to be a fixed cost?

Staff salaries

Organisations are focusing more on development and maintenance of strong corporate culture, 'having widely shared and strongly held norms and values'. This is because:

Strong culture results in improved coordination and control within the firm, improved goal alignment between the firm and its members, and increased employee motivation.

Which of the following internal stakeholders are interested in the day-to-day operations of a business and meeting operational objectives?

Supervisors and foremen

Identify the concept which focuses on business activity to meet the needs of the current generation without jeopardising the needs of future generations.

Sustainability

Which of the following are management skills or roles?

Tactical planning and monitoring

Identify which of the following is a disadvantage of performance-related pay for employees.

Targets might be unrealistic or unachievable

Which of the following motivational theories promotes the use of the division of labour?

Taylor

Which of the following theories of motivation ignores non-financial factors?

Taylor

A business conducts sales forecasting for its newly introduced gadgets. Which of the following is not an advantage of conducting sales forecasting?

Technical innovation

An international delivery company is operating in a country that has just made improvements to its roads and bridges. Which element of the STEEPLE has been affected?

Technological

What element does the T in STEEPLE refer to?

Technological

Which of these market segments for a fishing equipment business is based on demographics?

Teenagers

Which of the following refers to a situation where work is conducted remotely, relying on a network connection such as phone or internet?

Teleworking

Which of the following would be the most likely source of conflict between a supplier of beef and the directors of a fast food chain during a recession?

Terms of credit

Which of the following points makes unions and employees stronger in an industrial dispute?

The business is operating at close to full capacity

Which of the following would most likely be undertaken through a private-public partnership (PPP)?

The construction of a new train line

A firm is transitioning to a matrix organizational structure that will allow it to respond more quickly to developments in the marketplace. Many employees dislike the changes, even they realise their company is falling behind its rivals in this area. A reason for the resistance to change might be:

The employees feel more secure in a structure that they are familiar with, reducing uncertainty and anxiety associated with change.

Which of the following can ratio analysis not address?

The market share of the firm

John Paul Kotter, professor of Harvard Business School and change management guru, suggested that there are six change approaches to helping deal with resistance to change in an organisation. One of these approaches is 'facilitation and support', which refers to:

The need for managers to be more paternalistic and nurturing of staff in difficult times.

Which of the following conflicts is caused by product and process innovation in a company?

The need for workers to acquire new skills

Debtor days is a ratio which measures:

The number of days it takes a firm on average to collect its debts from customers it has sold goods to

McDonald's additional revenue streams come from

The rent that it gets from the real estate it owns

Which of the following is not a marketing function?

Training employees concerning a new product launch

Which model evaluates the business activity with regard to economic, social and ecological factors rather than just profits.

Triple bottom line

Revenue comes from the sale of goods or services; revenue streams include other forms of earnings besides sales of goods and services. True or false?

True

After three years of employment, an employee is fired shortly after admitting to his coworkers that he is homosexual, in spite of meeting or exceeding job performance expectations in all past evaluations. This is likely a case of:

Unfair dismissal

Which of the following is not a feature of a sole trader?

Unlimited finance

All of the following are elements of being a non-profit organisation except:

Using a market-led approach, focusing on the needs of customers

Which term indicates the difference between the price of the product and the cost of raw materials including components, which allows firms to make a profit?

Value added

The expenses that a candy store incurs for goods such as butter, sugar, cocoa and flour are

Variable costs

Which of the following tactics is not a method used by employers to negotiate with employees?

Walk-out

Which of the following could be classified as a green technology?

Wind power

In which of the following industrial actions do employees perform the absolute minimum required of them according to the rules set by their employer?

Work-to-rule

Total variable costs in a restaurant will ______; when its clientele increases.

increase

Their role in employee supervision, enforcement of rules and policy, and executing plans made by senior management tends to make ______ ; more risk averse in their work.

mid-level managers