F1 MCQs File 2

F1 MCQs Set 2: Business organization/ business environment

Business organization 1 ‘An organization is a social arrangement which pursues collective........................................, which controls its own performance and which has a Page | 1 boundary separating it from its environment.’ Which of the following words best completes this sentence? A Profits B Stakeholders C Goals D Tactics (2 marks) 2 What is the term given to the idea that the combined output of a number of individuals working together will exceed that of the same individuals working separately? A Sympathy B Specialisation C Synergy D Systems thinking (2 marks) 3 Which of the following statements is true? A Limited company status means that a company is only allowed to trade up to a predetermined turnover level in any one year. B For organizations that have limited company status, ownership and control are legally separate. C The benefit of being a sole trader is that you have no personal liability for the debts of your business. D Partnerships offer the same benefits as limited companies but are usually formed by professionals such as doctors and solicitors. (2 marks) 4 An organization owned or run by central or local government or government agencies is part of the voluntary sector. Is this statement true or false? A True B False (1 mark)

KashifKamran-Faculty member for F1 at SKANS Karachi campus

F1 MCQs Set 2: Business organization/ business environment

Business environment 1 What is an acronym used to describe the key elements of an organisation’s external Page | 2 environment? A SWOT B SMART C PEST (1 mark) 2 Which of the following is not a legitimate method of influencing government policy in the interests of a business? A Employing lobbyists to put the organisation’s case to ministers or civil servants B Giving lawmakers non-executive directorships C Offering financial incentives to public officials to use their influence on the organisation’s behalf D Attempting to influence public opinion, to put pressure on the legislative agenda (2 marks) 3 ........................................ is an analysis of statistics on birth and death rates, age structures of people and ethnic groups within a community. Which word correctly completes the sentence? A Ergonomics B Economics C Psychographics D Demographics (2 marks) 4 A recent trend in organization and management is the rise in ‘virtual organization’ and ‘virtual team working’. To which of the following environmental (PEST) factors is this most directly attributed? A Economic B Socio-cultural C Technological (1 mark) 5 The stationery and printing company S Co, has recently upgraded its computers and printers so that more production has become automated. Many middle managers will now be made redundant. This is known as: A Downsizing B Delayering C Outsourcing D Degrading (2 marks)

KashifKamran-Faculty member for F1 at SKANS Karachi campus

F1 MCQs Set 2: Business organization/ business environment

6 In the context of ’best practice’ employment protection law, in which of the following circumstances is dismissal of an employee automatically considered unfair? A Selection for redundancy on the basis of age B Misconduct Page | 3 C Marriage to a key competitor D Incompetence (2 marks) 7 Which of the following socio-cultural trends will have a direct impact on most business organizations? (i) Increasing ethnic and religious diversity in populations (ii) Falling birthrates (iii) Focus on ‘green’ issues (iv) Increase in single-member households A (iii) only B (i) and (iii) only C (i), (ii) and (iii) only D (i), (ii), (iii) and (iv) (2 marks) 8 Porter’s five forces model identifies factors which determine the nature and strength of competition in an industry. Which of the following is not one of the five forces identified in Porter’s model? A Substitute products or services B New entrants to the industry C Bargaining power of customers D Government regulation of the industry (2 marks) 9 For what function in an organization would demographic information about social class be most relevant? A Finance B Human Resources C Marketing 10 Which of the following is a support activity in Porter’s value chain model? A Procurement B Operations C Marketing and sales D Inbound logistics (2 marks) 11 Which of the following statements about the impact of technological developments is not true? A Technology developments have supported corporate delayering B Technology developments tend to adversely affect employee relations C Technology developments creates risk for long-range product/market planning D Technology developments offer significant advantages for corporate communications (2 marks) KashifKamran-Faculty member for F1 at SKANS Karachi campus

F1 MCQs Set 2: Business organization/ business environment

The following question is taken from the December 2008 exam paper. 12 BCD Co is a large trading company. Steve is the administration manager and is also responsible for legal and compliance functions. Sheila is responsible for after sales service and has responsibility for ensuring that customers who have purchased goods from BCD Co are fully satisfied. Sunny deals with suppliers and negotiates on Page | 4 the price and quality of inventory. He is also responsible for identifying the most appropriate suppliers of plant and machinery for the factory. Sam is the information technology manager and is responsible for all information systems within the company. According to Porter’s value chain, which of the managers is involved in a primary activity as opposed to a support activity? A Steve B Sheila C Sunny D Sam (2 marks) The following question is taken from the June 2009 exam paper. 13 What is the latest stage at which a new recruit to a company should first be issued with a copy of the company’s health and safety policy statement? A On accepting the position with the company B As early as possible after employment C After the first few weeks of employment D During the final selection interview (2 marks)

KashifKamran-Faculty member for F1 at SKANS Karachi campus