Business Organisations and Environment MCQs

An organisation is a social arrangement which pursues collective........................................, which controls its own performance and whic...

Profits
Stakeholders
Goals
Tactics

What is the term given to the idea that the combined output of a number of individuals working together will exceed that of the same individuals work...

Sympathy
Specialisation
Synergy
Systems thinking

Which one of the following statements is true?

Limited company status means that a company is only allowed to trade up to a predetermined turnover level in any one year.
For organisations that have limited company status, ownership and control are legally separate.
The benefit of being a sole trader is that you have no personal liability for the debts of your business.
Ordinary partnerships offer the same benefits as limited companies but are usually formed by professionals such as doctors and solicitors.

An organisation is owned and run by central government agencies. The organisation is best described as which of the following statements?

A voluntary sector organisation
A private sector organisation
A public sector organisation

Which of the following groups may be considered to be stakeholders in the activities of a nuclear power station? (i) The government (ii) Environmen...

(i), (iii) and (iv)
(i), (ii), (iii) and (iv)
(iii) only
(i) and (iii) only

Secondary stakeholders is another term for which group of stakeholders?

Internal stakeholders
Connected stakeholders
External stakeholders

ADB is a business which is owned by its workers. The workers share the profits and they each have a vote on how the business is run. Which of the fo...

Public sector
Private sector
Not-for-profit
Co-operative

What is an acronym used to describe the key elements of an organisation external environment?

SWOT
SMART
PEST

Which of the following is not a legitimate method of influencing government policy in the interests of a business?

Employing lobbyists to put the organisation case to ministers or civil servants
Giving lawmakers non-executive directorships
Offering financial incentives to public officials to use their influence on the organisation behalf
Attempting to influence public opinion, to put pressure on the legislative agenda

........................................ is an analysis of statistics on birth and death rates, age structures of people and ethnic groups within a co...

Ergonomics
Economics
Psychographics
Demographics

A recent trend in organisation and management is the rise in virtual organisation and virtual teamworking. To which of the following environmental (P...

Economic
Socio-cultural
Technological
Political

The stationery and printing company S Co, has recently upgraded its computers and printers so that more production has become automated. Many middle ...

Downsizing
Delayering
Outsourcing

Porterâ€™s five forces model identifies factors which determine the nature and strength of competition in an industry. Which of the following is...

Substitute products or services
New entrants to the industry
Bargaining power of customers
Government regulation of the industry

For what function in an organisation would demographic information about social class be most relevant?

Human Resources
Marketing
Purchasing

Which of the following is a support activity in Porterâ€™s value chain model?

Procurement
Operations
Marketing and sales
Inbound logistics

Which of the following statements about the impact of technological developments is not true?

Technology developments have supported corporate delayering
Technology developments tend to adversely affect employee relations
Technology developments creates risk for long-range product/market planning
Technology developments offer significant advantages for corporate communications

In Porterâ€™s five forces model, which of the following would not constitute a barrier to entry?

Scale economies available to existing competitors
High capital investment requirements
Low switching costs in the market

Three of the following strategies are closely related. Which is the exception?

Downsizing
Delegating
Delayering
Outsourcing

Which of the following would be identified as a cultural trend?

Health and safety legislation
Concern with health and diet
Increasing age of the population

For demographic purposes, which of the following is not a variable in the identification of social class?

Income level
Lifestyle
Occupation
Education

Which of the following statements about an organisation chart is not true?

An organisation chart provides a summary of the structure of a business.
An organisation chart can improve internal communications within a business.
An organisation chart can improve employees understanding of their role in a business.
An organisation chart can indicate functional authority but not line authority within a business.

Which of the following is a correct definition of span of control?

The number of employees subordinate in the hierarchy to a given manager
The number of levels in the hierarchy below a given managers
The number of employees directly responsible to a manager

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

Strategic apex
Support base
Technostructure
Operating core

Y plc is a growing organisation which has recently diversified into a number of significant new product markets. It has also recently acquired anothe...

Geographical departmentation
Divisionalisation
Functional departmentation

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

Structuring the organisation on functional lines
Structuring the organisation on geographical lines
Unity of command
Decentralisation of decision-making

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

The influence of the informal organisation was highlighted by the Hawthorne Studies, in the way group norms and dynamics affected productivity.
Informal organisation can pose a threat to employee health and safety.
Informal organisation can stimulate innovation.
Managers in positions of authority generally cannot be part of the informal organisation

Which of the following statements is/are true? (i) An informal organisation exists within every formal organisation (ii) The objectives of the infor...

Statement (i) only
Statements (i) and (iii) only
Statements (ii) and (iii) only
Statement (iii) only

What is an organisation which has removed the internal barriers which separate hierarchy levels and functions and also between the organisation and i...

Modular organisation
Hollow organisation
Jobless structure
Boundaryless organisation

Which of the following statements are true? (i) With a shared service centre services are likely to be less tailored (ii) The IT function is commonl...

Statement (i) and (iii) only
Statements (i) and (ii) only
Statements (ii) and (iii) only

BZ Ness Ltd is an organisation with a strongly traditional outlook. It is structured and managed according to classical principles: specialisation, t...

Role culture
Task culture
Existential culture
Power culture

Which of the following statements is true?

Strong values improve corporate performance
Strong values can replace rules and controls in an organisation
Strong values minimise conflict within an organisation
Strong values are dangerous if they filter out uncomfortable environmental information

Culture is the collective programming of the mind which distinguishes the members of one ........................................ from another. Whic...

Nation
Category of people
Social class

Which of the following is not one of the terms used by Hofstede to describe a key dimension of culture?

Power-distance
Acquisitive/giving
Individualism/collectivism
Uncertainty avoidance

Taxes payable under the Federal Unemployment Tax Act (FUTA) are

Calculated as a fixed percentage of all compensation paid to an employee.
Deductible by the employer as a business expense for federal income tax purposes.
Payable by employers for all employees.
Withheld from the wages of all covered employees.

An unemployed CPA generally would receive unemployment compensation benefits if the CPA

Was fired as a result of the employerâ€™s business reversals.
Refused to accept a job as an accountant while receiving extended benefits.
Was fired for embezzling from a client.
Left work voluntarily without good cause.

After serving as an active director of Lee Corp. for twenty years, Ryan was appointed an honorary director with the obligation to attend directorsâ...

Reportable by Lee as employee compensation subject to social security tax.
Reportable by Ryan as self-employment income subject to social security self-employment tax.
Taxable as â€œother incomeâ€ by Ryan, not subject to any social security tax.
Considered to be a gift not subject to social security self-employment or income tax.

Syl Corp. does not withhold FICA taxes from its employeesâ€™ compensation. Syl voluntarily pays the entire FICA tax for its share and the amoun...

Deductible by Syl as additional compensation that is includible in the employeesâ€™ taxable income.
Not deductible by Syl because it does not meet the deductibility requirement as an ordinary and necessary business expense.
A nontaxable gift to each employee, provided that the amount is less than $1,000 annually to each employee.
Subject to prescribed penalties imposed on Syl for its failure to withhold required payroll taxes.

Social security benefits may include all of the following except

Payments to divorced spouses.
Payments to disabled children.
Medicare payments.
Medicaid payments.

Which of the following forms of income, if in excess of the annual exempt amount, will cause a reduction in a retired personâ€™s social securit...

Annual proceeds from an annuity.
Directorâ€™s fees.
Pension payments.
Closely held corporation stock dividends.

Which of the following types of income is subject to taxation under the provisions of the Federal Insurance Contributions Act (FICA)?

Interest earned on municipal bonds.
Capital gains of $3,000.
Car received as a productivity award.
Dividends of $2,500.

Which of the following parties generally is ineligible to collect workersâ€™ compensation benefits?

Minors.
Truck drivers.
Union employees.
Temporary office workers.

Which of the following provisions is basic to all workersâ€™ compensation systems?

The injured employee must prove the employerâ€™s negligence.
The employer may invoke the traditional defense of contributory negligence.
The employerâ€™s liability may be ameliorated by a coemployeeâ€™s negligence under the fellow-servant rule.
The injured employee is allowed to recover on strict liability theory

Workersâ€™ Compensation Acts require an employer to

Provide coverage for all eligible employees.
Withhold employee contributions from the wages of eligible employees.
Pay an employee the difference between disability payments and full salary.
Contribute to a federal insurance fund.

Generally, which of the following statements concerning workersâ€™ compensation laws is correct?

The amount of damages recoverable is based on comparative negligence.
Employers are strictly liable without regard to whether or not they are at fault.
Workersâ€™ compensation benefits are not available if the employee is negligent.
Workersâ€™ compensation awards are payable for life.

Workersâ€™ compensation laws provide for all of the following benefits except

Burial expenses.
Full pay during disability.
The cost of prosthetic devices.
Monthly payments to surviving dependent children.

Under which of the following conditions is an on-site inspection of a workplace by an investigator from the Occupational Safety and Health Administr...

Only if OSHA obtains a search warrant after showing probable cause.
Only if the inspection is conducted after working hours.
At the request of employees.
After OSHA provides the employer with at least twenty-four hoursâ€™ notice of the prospective inspection.

Under the Age Discrimination in Employment Act, which of the following remedies is (are) available to a covered employee? Early Retirement . . . Bac...

Yes Yes
Yes No
No Yes
No No

Which of the following company policies would violate the Age Discrimination in Employment Act?

The company will not hire any accountant below twenty-five years of age.
The office staff must retire at age sixty-five or younger.
Both of the above.
None of the above.

Under the Americans With Disabilities Act, which is (are) true? I. The Act requires that companies with at least ten employees set up a specified p...

I only
II only
Both I and II.
Neither I nor II.

The Americans With Disabilities Act has as a purpose to give remedies for discrimination to individuals with disabilities. Which of the following is...

I only.
I and II only
II and III only
III only.

Which of the following is not true under the Family and Medical Leave Act?

An employee has a right to take a leave from work for the birth and care of her child for one month at half of her regular pay.
An employee has a right to take a leave from work for twelve workweeks to care for his/her seriously ill parent.
An employee, upon returning under the provisions of the Act, must get back the same or equivalent position in the company.
This Act does not cover all employees.

The Family Medical Leave Act provides for I. Unpaid leave for the employee to care for a newborn baby. II. Unpaid leave for the employee to care for...

I only.
II only.
I and II but not III.
III but not I or II.

Under the Fair Labor Standards Act, if a covered, nonexempt employee works consecutive weeks of forty-five, forty-two, thirty-eight, and thirty-thre...

0
7
18
20

Which of the following employee benefits is (are) exempt from the provisions of the National Labor Relations Act? Sick pay . . . Vacation pay

Yes Yes
Yes No
No Yes
No No

Under the Federal Consolidated Budget Reconciliation Act of 1985 (COBRA), when an employee voluntarily resigns from a job, the former employeeâ€�...

Automatically ceases for the former employee and spouse, if the resignation occurred before normal retirement age.
Automatically ceases for the former employeeâ€™s spouse, but continues for the former employee for an eighteenmonth period at the former employerâ€™s expense.
May be retained by the former employee at the former employeeâ€™s expense for at least eighteen months after leaving the company, but must be terminated for the former employeeâ€™s spouse.
May be retained for the former employee and spouse at the former employeeâ€™s expense for at least eighteen months after leaving the company.

Under the Employee Retirement Income Security Act of 1974 (ERISA), which of the following areas of private employer pension plans is (are) regulated...

Yes Yes
Yes No
No Yes
No No

Under the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), which of the following statements is correct?

Employees are entitled to have an employer established pension plan.
Employers are prevented from unduly delaying an employeeâ€™s participation in a pension plan.
Employers are prevented from managing retirement plans.
Employees are entitled to make investment decisions.

Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as Superfund, which of the following partie...

I and II.
I and III.
II and III.
I, II, and III.

Environmental Compliance Audits are used for which of the following purpose(s)? I. To voluntarily discover violations to avoid criminal sanctions. ...

I only.
I and II only.
II only
I, II, and III.

Which of the following is (are) true under the Federal Insecticide, Fungicide, and Rodenticide Act? I. Herbicides and pesticides must be certified a...

I only
I and II only.
II and III only.
I, II, and III.

Under the Comprehensive Environmental Response, Compensation and Liability Act as amended by the Superfund Amendments, which of the following is (ar...

I only.
II only.
Both I and II.
Neither I nor II.

The National Environmental Policy Act was passed to enhance and preserve the environment. Which of the following is not true?

The Act applies to all federal agencies.
The Act requires that an environmental impact statement be provided if any proposed federal legislation may significantly affect the environment.
Enforcement of the Act is primarily accomplished by litigation of persons who decide to challenge federal government decisions.
The Act provides generous tax breaks to those companies that help accomplish national environmental policy.

The Clean Air Act provides for the enforcement of standards for I. The emissions of radioactive particles from private nuclear power plants. II. T...

I and II only.
I and III only.
II and III only
I, II and III.

Under the Clean Air Act, which of the following statements is (are) correct regarding actions that may be taken against parties who violate emission...

I only
II only
Both I and II.
Neither I nor II.

The Environmental Protection Agency is an administrative agency in the federal government that aids in the protection of the environment. Which of th...

It adopts regulations to protect the quality of water.
It aids private citizens to make cases for private civil litigation.
It may refer criminal matters to the Department of Justice.
It may refer civil cases to the Department of Justice.

Whenever a federal agency recommends actions or legislation that may affect the environment, the agency must prepare an environmental impact stateme...

A description of the source of funds to accomplish the action without harming the environment.
An examination of alternate methods of achieving the goals of the proposed actions or legislation.
A description in detail of the proposed actions or legislation on the environment.
A description of any unavoidable adverse consequences.

Which of the following is (are) possible when a company violates the Clean Air Act? I. The company can be assessed a criminal fine. II. Officers of...

I only.
I or II only.
III only
I, II or III.

Green, a former owner of Circle Plant, caused hazardous waste pollution at the Circle Plant site two years ago. Sason purchased the plant and caused...

The most Green can be held liable for is 20%.
Green is not liable for any of the cleanup costs since the site was sold.
Green is not liable for any of the cleanup costs because Green was responsible for less than half of the problem.
Green can be held liable for all the cleanup costs even if Sason has some funds.

Which of the following would be a horizontal agreement to fix prices and thus be illegal per se under Section 1 of the Sherman Act? I. An agreement...

I only.
I and II only.
I, II, and III.
None of these agreements is illegal per se.

Loop Corp. has made a major breakthrough in the development of a micropencil. Loop has patented the product and is seeking to maximize the profit po...

Require its retailers to sell only Loopâ€™s products, including the micropencils, and not sell similar competing products.
Require its retailers to take stipulated quantities of its other products in addition to the micropencils.
Sell the product at whatever price the traffic will bear even though Loop has a monopoly.
Cut the price Loop is charging to retailers below its cost anytime a competitor attempts to compete against Loopâ€™s micropencil.

Robinsonâ€™s pricing policies have come under attack by several of its retailers. In fact, one of those retailers, Patman, has instigated legal...

Will fail unless Patman can show that there has been an injury to competition.
Will be sufficient if the complaint alleges that Robinson charged different prices to different customers and there is a reasonable possibility that competition may be adversely affected.
Is groundless since one has the legal right to sell at whatever price one wishes as long as the price is determined unilaterally.
Is to be tested under the Rule of Reason and if the different prices charged are found to be reasonable, the complaint will be dismissed.

Corporations are formed in accordance with:

The Model Business Corporation Act.
Federal statutes.
The laws of individual states.
Federal trade commission regulations.

The Model Business Corporation Act:

Uses the words "common" and "preferred" in describing distinguishing characteristics of stock.
Defines legal capital as the amount of net assets not available for distribution to shareholders.
Provides guidance for choosing an appropriate par value for new issues of stock.
Has affected the laws of most states.

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Business Organisations and Environment MCQs