Form Four Principles of Business Quiz 1

Internal Organizational Environment

1. LFJ Ltd. manufactures and sells local fruit juices. The company is made of several
departments which carry out specific functions.
(a) State TWO functions of EACH of the following departments of LFJ Ltd.
(i) Production
(ii) Personnel
(iii) Finance
(iv) Marketing (8 marks)
(b) The manager of the marketing department made a request for 500 more packages of
fruit juices than were available in stock. The request made by the marketing department
will affect the other departments.
Explain ONE way in which EACH of the departments (a) (i) – (iii) above, may be affected by
the request. (6 marks)
(c) (i) Define the terms ‘span of control’ and ‘chain of command’. (4 marks)
(ii) State any two types of organizational structure that maybe be used in an
organization. (2 marks)
(Total 20 marks)

2. The Ministry of Finance is undergoing reform. The permanent secretary who heads the
ministry holds frequent meetings with various groups of staff to solicit their ideas to guide
the reform process and to ensure that the lines of communication remain open. He is often
commended for employing a leadership style that aims to ensure the involvement of all
stakeholders in the reform process.
(a) (i) Define the term ‘leadership style’. (2 marks)
(ii) Identify the leadership style exhibited by the permanent secretary. (2 marks)
(iii) Name TWO other leadership styles. (2 marks)
(b) Outline TWO characteristics of EACH leadership style identified in (a) (iii) above.
(4 marks)
Total 10 marks