BUSINESS AND TECHNOLOGY

REVISION QUESTIONS

1 Which of the following types of organisation has/have a separate ‘legal

personality’?
Types

1 Sole trader
2 Partnership
3 Public limited company
4 Private limited company

A Type 1 only
B Types 2 and 3 only
C Types 1 and 4 only
D Types 3 and 4 only

2 ‘Private enterprise’ would not describe:

A a sole trader
B a professional body
C a partnership
D a public limited company

3 Which of the following is not a feature of co-operative societies?

A Constitution as corporate bodies with limited liability

B Distribution of surpluses in proportion to the value of member’s purchases
C Political or religious affiliation
D Democratic control of the society’s affairs

4 Which of following organisations is normally found in the public sector?

A Companies listed on a stock exchange

B Charities
C Professional institutes
D Schools

5 Which of the following concepts place the customer at the centre of

organisational decision making?

A Product concept
B Production concept
C Sales concept
D Marketing concept

6 In relation to organisational structures which of the following is the correct

definition of the term ‘span of control’?
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A The number of employees that a manager is directly responsible for
B The number of managers an employee reports to
C The number of management levels in an organisational structure

7 Which one of the following is a potential advantage of decentralisation?

A More accountability at lower levels

B Improved control by senior management
C Improved risk management at the operational level
D Better cooperation of decision making across the organisation

8 Which of the following is the main role of marketing?

A To persuade potential customers to convert latent need to expenditure

B To maximise sales volume
C To identify and anticipate the needs of potential customers
D To inform potential customers of goods and services offered

9 Computer printing devices are relative cheap to buy, however the cartridges
required to operate them are expensive. What kind of pricing strategy is this?

A Price skimming
B Price penetration
C Captive product pricing
D ‘Jewel in the Crown’ (or ‘Goldylocks’) pricing

10 A key decision under ‘place’ when reviewing the marketing mix decisions is
whether to sell direct or to sell indirect (through intermediaries).

Is this statement true or false?

11 The strategic marketing process for a new product has three strategic
elements:

A targeting/analysis/positioning
B competitive analysis/choice/action
C research/market mapping/action
D analysis/targeting/implementation

12 Market research carried out as part of the strategic planning process will
typically fall under which of the following headings?

A Conditioned research/ Ad hoc Research/Test trials

B Primary research/ Secondary research/ Prototype testing
C Desk research/ Field research/In house research
D In house research/Field research/Ad hoc trials

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13 When considering the sequence in which marketing activities take place,
targeting is done first followed by market segmentation.
Is this statement true or false?

14 A company with a marketing orientation believes that:

A products should be made according to the entity’s competence and then sold
actively and aggressively
B meeting customer needs better than competitors is the key to corporate success
C the level of sales, advertising and sales promotion is critical to corporate success
D differentiating goods and services is the key to competitive advantage

15 The marketing mix is best described as:

A a mix of people from the marketing, design, purchasing and finance departments
who are in charge of reviewing the company’s product selection
B the mix of experts in the marketing department who formulate marketing tactics
C the mix of market planning and field selling that integrate to obtain corporate
objectives
D a set of marketing decisions blended to produce desired results

16 In the context of the evaluation of the marketing mix, which of the following
are the two main product issues to consider?

A Quality and Price

B Price and Promotion
C Place and Promotion
D Definition and Positioning

17 Which of the following pricing strategies is aimed at gaining market share?

A Penetration pricing
B Price skimming

18 Deciding which products or services to produce is usually part of:

A strategic planning
B operational planning
C production planning
D budget planning

19 The predominant form of business entity is:

A sole traders and partnerships
B limited liability partnerships
C limited liability companies
D quoted companies

20 Which of the following is an advantage of decentralisation?

A Improved local decisions

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B Increased goal congruence
C More coordination horizontally between managers at the same level
D Reduced need for vertical reporting

21 The entrepreneurial structure is typical of which of the following?

A large and successful entities dominated by a powerful individual

B Small companies in their early days
C Risk taking entities of all sizes
D Fast growing companies

22 Which of the following organisations could be said to be fully owned and

democratically controlled by its members?

A Local government council

B Privately owned hospice funded from donations
C A fast-food franchise chain
D A wholesale cooperative

23 Which of the following is strategic by nature?

A Planning to enhance a customer-relationship management system on the entity’s

e-commerce website
B Negotiating with an outsourcing organisation concerning the production of a sub-
assembly for one of the entity’s major products
C Planning to design a paper-free workflow system which would ultimately restrict
paper only to the mail-room
D Planning to develop a market in China

24 Which of the following is one of the three planning levels?

A Budget planning
B Divisional planning
C Project planning
D Operational planning

25 Which of the following organisations are only found in a public sector?

A Military units
B Schools
C Hospitals
D None of the above

26 The public sector is normally concerned with:

A making profit from the sale of goods and services

B the provision of basic government services
C raising funds by subscriptions from the population in general to provide common
services
D providing services to targeted groups funded from charitable donations

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27 Sole traders, partnerships, private limited companies and public limited
companies would all be considered as private sector organisations.
Is this statement true or false?

28 Ten people are the only shareholders in a private limited liability company.
This is a company that is not listed on a recognised stock exchange. This
means that:
A they are responsible for the debts of the company
B they cannot be asked to pay the debts of the company
C the company cannot become legally bankrupt
D the total debts carried by the company cannot exceed a specified figure (in the UK
this would be £1,000,000)

29 When considering the roles of different departments, which one of the

following is likely to be concerned with identifying and satisfying customer
needs?

A Customer Support Service

B Research and Development
C Marketing
D Credit Control (in the Treasury Department)

30 Downsizing is the process of removing layers of management .

Is this statement true or false?
A True
B False

31 Which of the following can be delegated?

A Obligation
B Authority
C Liability
D Responsibility

32 Conflicting demands over allocation of resources is most likely to be

disadvantage from which type of organisational structure?

A Divisional
B Matrix
C Geographical
D Entrepreneur

33 The line authority relates to …………….

Which phrase completes the sentence?
A Scalar chain
B Ownership versus control
C Span of control
D Number of managerial levels

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34 A narrow span of control is likely to lead to a tall management structure.

Is this statement true or false?

A True
B False

35 Which one of the following listed below does not have an organisation
structure as defined by Peter Drucker:

A political parties
B charities
C shareholders in a quoted company
D retail companies

36 A college departmental head is considering the use of temporary staff

(supply teachers) to fill shortages due to maternity and sickness leave. Which
level of planning is involved here?

A Tactical
B Strategic
C Operational

37 Selling at a low price with the intention of damaging weaker competitors is

referred to as
A price skimming.
B opportunistic pricing.
C penetration pricing.
D predatory pricing.

38 An approach of producing goods or purchasing inventory only when

required is referred to as

A just-in-time.
B ad hoc.
C level capacity strategy.
D plan-do-check-act (PDCA) quality.

39 Public relations activity can be used within marketing as part of

A marketing decision support activities.

B a promotional mix.
C customer feedback processes.
D segmentation practices.

40 Effective product promotion is centred on

A production processes.
B customers and communication.
C bonuses for sales staff and product quality.

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D effective systems of monitoring and control.

41 Conventional marketing wisdom suggests that for successful segmentation

of markets, segments must be

A relatively unsophisticated in their needs.

B economic, efficient and effective
C measurable, accessible and substantial.
D currently lacking in providers.

42 Analysing a market into sub-groups of potential customers with common

needs and behaviours in order to target them through marketing techniques is
called

A market research.
B market development.
C segmentation.
D product adaptation.

43 Which ONE of the following perspectives of strategy is where an

organisation avoids radical strategies but instead takes small steps based on
what has been done before and worked in the past?

A Ecological
B Positioning
C Bounded rationality
D Logical incrementalism

44 In a multi-divisional organisation producing a range of products for

different markets, the business level strategy of each unit or division is mainly
concerned with

A setting the direction for the organisation.

B the competitiveness of a particular division.
C the efficiency of production, marketing and other functions.
D alignment of strategy with other organisations.

45 In the typical hierarchical organisation, the requirement of a lower-level

manager to answer to a higher-level manager in the chain of command is
referred to as

A authority.
B empowerment.
C accountability.
D super ordination.

46 When designing an organisational structure, or reviewing the effectiveness

of an existing structure, the first thing that must be clarified is

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A informal organisational relationships.
B objectives of the organisation.
C size of organisation.
D division of labour.

47 Decisions about acquisitions, mergers and sell-offs occur at which ONE of

the following levels?

A Functional level
B Corporate level
C Business level
D Competitive level