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 conseq

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.

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

 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

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

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

(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

(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

 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

 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

Using the point method, what is the price elasticity of demand of product X as price falls from its current

price of $20 to $15?

Old New

Price 20 15

Quantity 10 15

A 0.5

B 1

C 1.5

D 2