A The business organisation and its external environment

Written by Mahnoor Sheikh (ACCA)

ACCA · Business and Technology · 9 questions

Name: ____________________ Date: ____________

Which type of organisation is mainly set up to make a profit for its owners?
- A A commercial organisation
- B A non-governmental organisation
- C A not-for-profit organisation
- D A public sector organisation
In an agency relationship in a company, who is the agent?
- A The government
- B The shareholders
- C The customers
- D The directors who run the company for the shareholders
In Mendelow's matrix, a stakeholder with high power and high interest should be:
- A Kept informed only
- B Monitored only
- C Kept satisfied only
- D Managed closely
A government raises interest rates to reduce inflation. This is an example of:
- A Industrial policy
- B Monetary policy
- C Environmental policy
- D Fiscal policy
A market has a few large firms and each firm's actions affect the others. This is:
- A A monopoly
- B Monopolistic competition
- C Perfect competition
- D An oligopoly
Which of these is one of Porter's five forces?
- A The size of the finance department
- B The age of the workforce
- C The bargaining power of buyers
- D The level of inflation
Removing layers of management from an organisation is known as:
- A Offshoring
- B Delayering
- C Decentralisation
- D Outsourcing
Which analysis looks at strengths, weaknesses, opportunities and threats?
- A Ratio analysis
- B SWOT analysis
- C PESTEL analysis
- D Value chain analysis
A rising proportion of older people in a country is an example of which kind of factor?
- A A legal factor
- B A political factor
- C A social and demographic factor
- D A technological factor

Answer key

1. A, 2. D, 3. D, 4. B, 5. D, 6. C, 7. B, 8. B, 9. C

Commercial organisations aim to make a profit. The others have other main purposes.
The owners (principals) appoint managers (agents) to act on their behalf.
High power and high interest means the stakeholder is a key player.
Monetary policy uses interest rates and the money supply. Fiscal policy uses tax and spending.
An oligopoly is dominated by a small number of firms.
The five forces are new entrants, buyers, suppliers, substitutes and rivalry.
Delayering flattens the structure.
SWOT combines internal strengths and weaknesses with external opportunities and threats.
An ageing population changes demand and the labour supply.