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1. Which of the following is the MAIN function of marketing?
A. To maximise sales volume
B. To identify and anticipate customer needs
C. To persuade potential consumers to convert latent demand into expenditure
D. To identify suitable outlets for goods and services supplied

2. A hospital manager is considering the use of temporary nursing staff to fill shortages due to
sickness. Which level of planning is involved here?
A. Strategic
B. Tactical
C. Operational
D. Business

3. Which of the following organizations is normally found in the public sector?
A. Education
B. Charities
C. Clubs
D. Businesses

4. An Informal organizational structure can arise in an organization due to ---------------. Which one
of the following does not complete the sentence?
A. Friendships
B. Personal relationships
C. The grapevine effect
D. Common interests

5. Conflicting demands over allocation of resources is most likely to be a disadvantage for which
type of organizational structure?
A. Enterpreneurial
B. Matrix
C. Divisional
D. Geographical

6. According to Charles Handy four cultural types, which of the following organizations is least
likely to adopt a person culture?
A. Barristers chambers
B. Advertising Company
C. University Research department
D. Firm of solicitors

7. Which of the following is one of Hofstede’s five traits?
A. Power distance
B. Power measure
C. Power range
D. Power length

8. A supervisor is a person given ------------ for planning and controlling the work of their group.
Which word correctly completes this sentence?
A. Authority
B. Autonomy
C. Autocracy

9. Two people are the only shareholders in a limited liability company. This means that :
A. They must meet all the debts of the company
B. The company cannot become bankrupt
C. They cannot be asked to meet the debts of the company
D. The business has a turnover of less than $100,000.00

10. The staff of Lively share lots of common interest and often meet socially both inside and outside
work. The grapevine is regarded by many staff as the most reliable source of company
information and employees have developed their own approach to many aspects of their work.
This form of organizational arrangement is characteristic of which of the following?
A. Decentralisation
B. Divorce of ownership and control
C. Wide span of control
D. The informal organization

11. Which of the following statements is not true?
A. In a centralized structure, the upper levels of an organisation’s hierarchy retain the authority
to make decisions
B. In a decentralized structure the authority to take decisions is passed upwards to units and
people at higher levels
C. Management style and ability of management affect the amount of decentralization
D. Locational spread and size of the organization/scale of activities affect the amount of


12. Which of the following is the correct definition of the term span of control?
A. The number of employees reporting to one manager
B. The number of managers to whom one employee reports
C. The number of levels in the hierarchy
D. The number of employees at each level of the organization

13. Which of the following is one of the four cultural types identified by Handy?
A. Growth culture
B. Purposeful culture
C. Person Culture
D. Inclusive culture

14. Which of the following is closest to the beliefs of the human relations school?
A. Emphasis on social groups
B. Emphasis on the task to be done rather than the person doing it
C. Emphasis on one best approach
D. Emphasis on the hierarchy of management