Which of the following is a correct definition of 'span of control'? A The number of employees subordinate in the hierarchy to a given manager B The number of levels in the hierarchy 'below' a given manager's C The number

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• 1(a) Which THREE of the following statements reflect the activities of an NGO? A They have targets f

  (a) Which THREE of the following statements reflect the activities of an NGO?

  A They have targets for customer satisfaction

  B They are almost always charities

  C They are aimed at promoting social, political or environmental change

  D They often raise funds through donations

  E They are legally constituted organisations with commercial aims

  F They are measured in terms of effectiveness and efficiency

  (b) What acronym is generally used for performance measurement of an NGO?

  A VFM

  B ROCE

  C PBIT

  D SWOT

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• 2(a) GHJ Co is a manufacturing company that makes one product. The production process is labour inten

  (a) GHJ Co is a manufacturing company that makes one product. The production process is labour intensive and as a result the product is highly specialised. GHJ Co also provides its customers with maintenance and after sales service.

  Department W uses materials and labour to produce the final product.

  Department X stores the final product and delivers it to customers.

  Department Y is in charge of advertising and promotion of the final product.

  Department Z is responsible for providing spare parts to customers.

  The following are all primary activities from Porter's value chain

  A Operations

  B After sales service

  C Outbound logistics

  D Marketing and sales

  For each of the departments, select the corresponding primary activity listed above

  (i) Department W

  (ii) Department X

  (iii) Department Y

  (iv) Department Z

  (b) Which two of the following factors indicate that suppliers have high bargaining power in an

  industry?

  A There are a large number of suppliers

  B There is a lack of substitute products available

  C Switching costs for customers are low

  D The product supplied is highly differentiated

  E Product quality is not important to customers

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• 3 If the absolute value of the price elasticity of demand for dry white wine is greater than one, a

   If the absolute value of the price elasticity of demand for dry white wine is greater than one, a decrease in the price of all wine would result in:

  A A more than proportional decrease in the quantity of dry white wine purchased

  B A less than proportional decrease in the quantity of dry white wine purchased

  C A less than proportional increase in the quantity of dry white wine purchased

  D A more than proportional increase in the quantity of dry white wine purchased

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• 4 Consumer surplus is: A The excess between what consumers are prepared to pay for a good or servic

   Consumer surplus is:

  A The excess between what consumers are prepared to pay for a good or service, and the prevailing market price

  B The indirect tax producers pay on a good or service

  C The marginal utility gained by consuming one more unit of a good or service

  D The indirect tax consumers pay on a good or service

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• 5Using the point method, what is the price elasticity of demand of product X as price falls from its

  Using the point method, what is the price elasticity of demand of product X as price falls from its current

  price of $20 to $15?

  Old New

  Price 20 15

  Quantity 10 15

  A 0.5

  B 1

  C 1.5

  D 2

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• 6The income elasticity of demand for a product is high. This means that: A Sales will fall only slig

  The income elasticity of demand for a product is high. This means that:

  A Sales will fall only slightly when incomes of households fall

  B Sales will rise sharply when incomes of households rise

  C The good is an inferior good

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• 7 (a) The main levels of strategy in an organisation are as follows: A Corporate B Business C Oper

   (a) The main levels of strategy in an organisation are as follows:

  A Corporate

  B Business

  C Operational

  For each of the strategic questions listed below, select the appropriate level of strategy from the list above

  (i) Which business should we be in?

  (ii) Should we specialise in a profitable product?

  (iii) How best can we market the products?

  (iv) Should we segment the market?

  (b) Which two of the following are advantages of centralisation?

  A Decision makers have a greater awareness of local problems

  B Managers are able to take a wider view

  C Avoids overburdening top managers

  D Help to develop junior managers

  E Procedures and documentation can be standardised

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• 8 (a) The following four components of an organisation were identified by Mintzberg A Operating core

   (a) The following four components of an organisation were identified by Mintzberg

  A Operating core

  B Support staff

  C Strategic apex

  D Middle line

  For each of the following jobs, state which component they fit into.

  (i) Canteen worker

  (ii) Production worker

  (iii) Sales manager

  (iv) Director

  (b) Which two of the following statements are not consistent with Handy's shamrock organisation?

  A Self-employed technicians should be hired on a project-by-project basis

  B The contingent work force consists of employees on long-term contracts

  C The professional core should consist of full-time, fixed salary employees

  D The organisation looks for ways that consumers can do part of the work of the organisation

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• 9(a) For each of the following tasks, select whether they are the responsibility of: A The financial

  (a) For each of the following tasks, select whether they are the responsibility of:

  A The financial accounting department

  B The treasury department

  (i) Arranging an overdraft

  (ii) Managing foreign currency exposure

  (iii) Recording financial transactions

  (iv) Cash budgeting

  (v) Reporting to shareholders

  (vi) Repaying loans

  (b) Markets for trading short-term financial instruments such as certificates of deposit are known as Which of the following correctly fills the gap above?

  A Money markets

  B Capital markets

  C Venture capital

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• 10 (a) Fill in the gaps in the King report’s summary of the role of the board below. (i) To define t

   (a) Fill in the gaps in the King report’s summary of the role of the board below.

  (i) To define the ________ of the company

  (ii) To define the ________ by which the company will perform its daily duties

  (iii) To identify the ________ relevant to the company

  (iv) To develop a ________combining these factors

  (v) To ensure ________ of the strategy

  (b) Which of the following is NOT part of the role of a company secretary?

  A Establishment and maintenance of a registered office

  B Filing of annual returns

  C Chairing management committee meetings

  D Maintaining statutory books and records

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