Which of the following statements is/are true? (i) An informal organisation exists within every formal organisation (ii) The objectives of the informal organisation are broadly the same as those of the formal organisation (iii) A strong, close-kni

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• 1Which one of the following is an advantage of centralisation? A It helps to develop the skills of j

  Which one of the following is an advantage of centralisation?

  A It helps to develop the skills of junior managers

  B It avoids overburdening top managers in terms of workload and stress

  C Senior managers can take a wider view of problems and consequences

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• 2Which of the following statements about the informal organisation is not true? A The influence of t

  Which of the following statements about the informal organisation is not true?

  A The influence of the informal organisation was highlighted by the Hawthorne Studies, in the way group norms and dynamics affected productivity.

  B Informal organisation can pose a threat to employee health and safety.

  C Informal organisation can stimulate innovation.

  D Managers in positions of authority generally cannot be part of the informal organisation.

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• 3Which of the following principles of classical management is challenged by matrix management? A Str

  Which of the following principles of classical management is challenged by matrix management?

  A Structuring the organisation on functional lines

  B Structuring the organisation on geographical lines

  C Unity of command

  D Decentralisation of decision-making

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• 4 plc is a growing organisation which has recently diversified into a number of significant new prod

   plc is a growing organisation which has recently diversified into a number of significant new product markets. It has also recently acquired another company in one of its overseas markets.

  What would be the most appropriate form of organisation for Y plc?

  A Geographical departmentation

  B Divisionalisation

  C Functional departmentation

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• 5Which of the following terms is not used by Mintzberg in his description of organisational structure

  Which of the following terms is not used by Mintzberg in his description of organisational structure?

  A Strategic apex

  B Support base

  C Technostructure

  D Operating core

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• 6Which of the following is a correct definition of 'span of control'? A The number of employees subo

  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 of employees directly responsible to a manager

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• 7(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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• 8(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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• 9 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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• 10 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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