Page 395 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Supplementary objective test questions

1 Value for money is an important objective for not-for-profit organisations.

Which of the following actions is consistent with increasing value for
money?

A Using a cheaper source of goods and thereby decreasing the quality of
not-for-profit organisation services

B Searching for ways to diversify the finances of the not-for-profit
organisation

C Decreasing waste in the provision of a service by the not-for-profit
organisation

D Focusing on meeting the financial objectives of the not-for-profit
organisation

2 Which of the following statements are correct?

1 Maximising market share is an example of a financial objective

2 Shareholder wealth maximisation is the primary financial objective for a
company listed on a stock exchange

3 Financial objectives should be quantitative so that their achievement can
be measured

A 1 and 2 only

B 1 and 3 only

C 2 and 3 only

D 1, 2 and 3

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