Page 225 - BA1 Integrated Workbook STUDENT 2018

Answers to supplementary objective test

questions

1 A, C and D

Not all organisations have a profit focus (B)

Most organisations would aim to use resources efficiently but this is not part of
the definition (E)

2 C

Controlling costs (A) is a measure of economy, efficient resource utilisation (B)
reflects efficiency and achievement of stated objectives (D) concerns
effectiveness. These are all secondary objectives of an NFP organisation and
relate to how well it performs rather than why it exists.

3 You may feel that some of the descriptions could apply to more than one
organisation, so try to pick the best matches:

Type of
organisation Definition

Sole trader An organisation owned and run by one person.

An organisation that has a separate legal identity to its
Private limited owners and whose shares are not available for sale to
company
general investors.

Partnership An organisation owned and run by two or more individuals.

Public limited An organisation that can attract finance from a range of
company external investors.

4 B, C and D

A mission statement mainly focusses on the present (where we are now). This
should not be confused with a vision which sets out where the organisation
expects to be.

A mission statement does not normally contain quantifiable, measureable
targets but deals with broader themes.

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