1 – Business Objectives, Resources and Accountability

Name :_______________ Date: ___________

From: Programming / Networking / Multimedia / Electronic Level : _________

PART 1 – OBJECTIVE QUESTIONS (5 marks)

1. Which of the following is not a business’s corporate aim?

A. Global market
B. Leader in market Share
C. Well known franchisor
D. Survival

2. A strategic manager that seeks to reach acceptable profit targets as opposed to making
as much profit as possible is making decisions of which type?

A. Satisfactory
B. Satisficing
C. Irrational
D. Optional

3. In the context of strategic management, stakeholders can be defined as:

A. An individual or a group with a financial stake in the organisation

B. An external individual or a group that is able to impose constraints on the
organisation
C. Internal groups or individuals that are able to influence strategic direction of an
organisation
D. An individual or a group with an interest in the organisation’s activities and who
seeks to influence them

4. In the context of strategic management, resources can be defined as:

A. The knowledge and skills within an organisation

B. Something an organisation owns or controls and cannot be copied
C. Something an organisation owns or controls and has access to on a semi-
permanent basis
D. The physical assets of the organisation

5. Which of the following refer to ethics in business?

A. Reduce pollution
B. Manager should not abuse his/her power
C. Payment on time
D. All of the above
1
 1 – Business Objectives, Resources and Accountability

PART 2 – True or false, short answer and subjective questions (20 marks)

1. Name 5 objectives of the business : (5 marks)

i. Survival ii. Profit maximisation

iii. profitability iv. Penetrate new market
v. Technical Excellence Level of Service

2. The 4 factors of production are as follows:-. ( 4 marks)

i. Land ii. Labour

iii. Capital iv. Managerial skills

3. Name the 4 Business cycles in logical sequence. ( 4 marks)

i. Boom ii. Downturn

iii. Recession iv. Recovery

4. During recession, unemployment rate is high and there are many business failures and
prices of products fall as supply is more than demand. (1 mark)

True False

5. Demand is more than supply, business borrow money to invest in new business and
inflation rate is high. This happens during which period of the business cycle?
(1 mark)

Answer: Boom

6. Name 1 internal stakeholder and 1 external stakeholder and their interest in the
business. (5 marks)

Internal Stakeholder
1 - Workforce is interested in good salary and good working conditions.
2 - Sharedholder’s interest is on profitability and their share of the dividend payment.
External Stakeholder
Customer’s interest is on good quality product and fair price.
Supplier’s interest is on long-term relationship and payment on time.