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Supplementary objective test questions

CHAPTER 1 – MICROECONOMICS I – THE GOALS AND DECISIONS
OF ORGANISATIONS

1.1 PPI is a business that imports and retails cables. It is owned and run by Mr F.
Mr F has not hired any employees as the business is currently small and he
wishes to maximise business profits. Mr F creates detailed budgets and
compares these to his actual performance each year.

Which one of the following aspects of Buchanan and Huczynski’s definition
of an organisation has PPI primarily failed to demonstrate?

A Controlled performance

B Collective goals

C Shared skills and knowledge

D Social arrangements

1.2 Which of the following is the primary objective for a not for profit
organisation?

A Controlling costs

B Efficient utilisation of resources

C To maximise the benefit to the beneficiaries

D Achieving maximum output per unit of input

1.3 Which one of the following would not be a stakeholder for a mutual
society?

A shareholders

B customers

C employees

D managers

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