A The business organisation and its external environment

Which type of organisation is mainly set up to make a profit for its owners?

• 1 A commercial organisation
• 2 A non-governmental organisation
• 3 A not-for-profit organisation
• 4 A public sector organisation

In an agency relationship in a company, who is the agent?

• 1 The government
• 2 The shareholders
• 3 The customers
• 4 The directors who run the company for the shareholders

In Mendelow's matrix, a stakeholder with high power and high interest should be:

• 1 Kept informed only
• 2 Monitored only
• 3 Kept satisfied only
• 4 Managed closely

A government raises interest rates to reduce inflation. This is an example of:

• 1 Industrial policy
• 2 Monetary policy
• 3 Environmental policy
• 4 Fiscal policy

A market has a few large firms and each firm's actions affect the others. This is:

• 1 A monopoly
• 2 Monopolistic competition
• 3 Perfect competition
• 4 An oligopoly

Which of these is one of Porter's five forces?

• 1 The size of the finance department
• 2 The age of the workforce
• 3 The bargaining power of buyers
• 4 The level of inflation

Removing layers of management from an organisation is known as:

• 1 Offshoring
• 2 Delayering
• 3 Decentralisation
• 4 Outsourcing

Which analysis looks at strengths, weaknesses, opportunities and threats?

• 1 Ratio analysis
• 2 SWOT analysis
• 3 PESTEL analysis
• 4 Value chain analysis

A rising proportion of older people in a country is an example of which kind of factor?

• 1 A legal factor
• 2 A political factor
• 3 A social and demographic factor
• 4 A technological factor