Business Administration Level 3 Unit 301 City &
Guilds Assessment Review Solved 100% Correct
Give 3 characteristics of the Private Sector - ANS-1. Owned & controlled by
individuals
2. Exist to make a profit
3. Trade in competitive market
Give 3 characteristics of the Public Sector - ANS-1. Funded mainly by government
(through public and business taxes)
2. Provide services to the public
3. Don't exist to make a profit
Give 4 characteristics of the Voluntary Sector (the third sector) - ANS-1. Benefit the
public
2. Motivated to achieve social goals e.g. improving welfare or the environment.
3. Reinvest surplus monies rather than create profit
4. Can include local community projects and groups
Describe what Organisational Culture is? - ANS-How:
1. beliefs,
2. values
3. and practices
are demonstrated and promoted through an organisation.
What are Organisational Values? - ANS-Core principles/standards that guides the
way an organisation carries out their business
What is a mission statement? - ANS-1. Reason for existing
2. Organisations core purpose (remains unchanged)
3. Defines business, its objectives and its approach to reach those objectives.
What is a vision statement? - ANS-1. Defines the desired future position of the
company
2. Outlines what the business hopes to achieve
3. Mission/Vision sometimes combined
Why are Vision/Mission Statements important? - ANS-- Clarifies direction, aims and
objectives
- Highlights appropriate behaviours and attitudes
- Promotes a specific organisational culture
- Attracts customers and stakeholders
,What are the disadvantages of not having mission/vision statements? - ANS-1.
Purpose is not declared
2. Purpose and focus on objectives may be challenging
3. No clear view of what organisation hopes to achieve
What is organisational culture? - ANS-The way an organisation demonstrates its
values
What are organisational values? - ANS-Core principles which outlines the way the
organisation does business.
What are the benefits of communicating organisational values to staff? - ANS-1.
Expectations clear
2. Client/customer satisfaction likely to increase
3. Objectives more likely to be met
Define what organisational aims are. - ANS-Statements of where an organisation
aims to be in the future
What is the importance of organisational aims? - ANS-1. Provide a clear direction
for the organisation
2. Plan activities which are aligned with aims
3. Ensure organisationis moving in right direction
4. Promote culture that works towards same goals
Define business objectives and what they're measured by? - ANS-Measurable
targets of how an organisation plans to achieve its aims
Measured by SMART
Name all the SMART Objectives - ANS-Specific
Measurable
Achievable
Relevant
Time-bound
How do staff benefit from clear aims and objectives? - ANS-1. Ensures staff
awareness
2. Job role and duties clearly defined
3. Expectations are clear so more likely to meet them
4. Increased motivation if staff feel included in their wider objectives of the
organisation
What could unclear aims and objectives result in? - ANS-1. Confused staff
2. Lower profit or bankruptcy
3. Lower opportunities to grow the business
4. Decreasing market share
What 4 areas does the Wider Economy cover? - ANS-1. Inflation
, 2. Labour Market
3. Financial Market
4. Global Market
Define what inflation is and explain the effect. - ANS-1. This rising price for goods
and services
2. Reduces the purchasing power of each unit of currency
3. As prices rise, money buys less.
inflation rate: the percentage increased of proces during a specified period.
What is inflation measured by? - ANS-Retail Price Index (RPI)
Consumer Price Index (CPI)
What does RPI include? - ANS-Includes housing costs, mortgage interest payments
and council tax.
What is (ONS) and what do they do? - ANS-Office for National Statistics (ONS)
provides the official statistics.
What does inflation affect? - ANS-Pressure on organisations to increase prices in
order to cover costs the businesses sell at.
Leading to a decrease in customers, and staff putting pressure on employers to
increase wages, due to the increase in the cost of living.
Saving rates may drop as money is worth less in the future than in the present.
Rising demand and falling unemployment, firms are likely to increase wages to
attract and retain workers.
What is the labour market? - ANS-1. Where employers look and compete for
workers
2. Where workers look and compete for employment the most satisfying and
rewarding jobs.
Economic concept (supply and demand for labour where workers and employers
interact with one another)
How can the labour market affect organisations? - ANS-1. Pay scales and salary
expectations can differ
2. Unemployment rates affect availibility
3. If staff need to be highly qualified or experienced for the post, they will expect a
higher salary to reflect this
4. If unemployment rates are high there will be more competition for roles
What represents the price of labour to organisations? - ANS-Wages, which provide
income to households and represent a cost to firms.
Guilds Assessment Review Solved 100% Correct
Give 3 characteristics of the Private Sector - ANS-1. Owned & controlled by
individuals
2. Exist to make a profit
3. Trade in competitive market
Give 3 characteristics of the Public Sector - ANS-1. Funded mainly by government
(through public and business taxes)
2. Provide services to the public
3. Don't exist to make a profit
Give 4 characteristics of the Voluntary Sector (the third sector) - ANS-1. Benefit the
public
2. Motivated to achieve social goals e.g. improving welfare or the environment.
3. Reinvest surplus monies rather than create profit
4. Can include local community projects and groups
Describe what Organisational Culture is? - ANS-How:
1. beliefs,
2. values
3. and practices
are demonstrated and promoted through an organisation.
What are Organisational Values? - ANS-Core principles/standards that guides the
way an organisation carries out their business
What is a mission statement? - ANS-1. Reason for existing
2. Organisations core purpose (remains unchanged)
3. Defines business, its objectives and its approach to reach those objectives.
What is a vision statement? - ANS-1. Defines the desired future position of the
company
2. Outlines what the business hopes to achieve
3. Mission/Vision sometimes combined
Why are Vision/Mission Statements important? - ANS-- Clarifies direction, aims and
objectives
- Highlights appropriate behaviours and attitudes
- Promotes a specific organisational culture
- Attracts customers and stakeholders
,What are the disadvantages of not having mission/vision statements? - ANS-1.
Purpose is not declared
2. Purpose and focus on objectives may be challenging
3. No clear view of what organisation hopes to achieve
What is organisational culture? - ANS-The way an organisation demonstrates its
values
What are organisational values? - ANS-Core principles which outlines the way the
organisation does business.
What are the benefits of communicating organisational values to staff? - ANS-1.
Expectations clear
2. Client/customer satisfaction likely to increase
3. Objectives more likely to be met
Define what organisational aims are. - ANS-Statements of where an organisation
aims to be in the future
What is the importance of organisational aims? - ANS-1. Provide a clear direction
for the organisation
2. Plan activities which are aligned with aims
3. Ensure organisationis moving in right direction
4. Promote culture that works towards same goals
Define business objectives and what they're measured by? - ANS-Measurable
targets of how an organisation plans to achieve its aims
Measured by SMART
Name all the SMART Objectives - ANS-Specific
Measurable
Achievable
Relevant
Time-bound
How do staff benefit from clear aims and objectives? - ANS-1. Ensures staff
awareness
2. Job role and duties clearly defined
3. Expectations are clear so more likely to meet them
4. Increased motivation if staff feel included in their wider objectives of the
organisation
What could unclear aims and objectives result in? - ANS-1. Confused staff
2. Lower profit or bankruptcy
3. Lower opportunities to grow the business
4. Decreasing market share
What 4 areas does the Wider Economy cover? - ANS-1. Inflation
, 2. Labour Market
3. Financial Market
4. Global Market
Define what inflation is and explain the effect. - ANS-1. This rising price for goods
and services
2. Reduces the purchasing power of each unit of currency
3. As prices rise, money buys less.
inflation rate: the percentage increased of proces during a specified period.
What is inflation measured by? - ANS-Retail Price Index (RPI)
Consumer Price Index (CPI)
What does RPI include? - ANS-Includes housing costs, mortgage interest payments
and council tax.
What is (ONS) and what do they do? - ANS-Office for National Statistics (ONS)
provides the official statistics.
What does inflation affect? - ANS-Pressure on organisations to increase prices in
order to cover costs the businesses sell at.
Leading to a decrease in customers, and staff putting pressure on employers to
increase wages, due to the increase in the cost of living.
Saving rates may drop as money is worth less in the future than in the present.
Rising demand and falling unemployment, firms are likely to increase wages to
attract and retain workers.
What is the labour market? - ANS-1. Where employers look and compete for
workers
2. Where workers look and compete for employment the most satisfying and
rewarding jobs.
Economic concept (supply and demand for labour where workers and employers
interact with one another)
How can the labour market affect organisations? - ANS-1. Pay scales and salary
expectations can differ
2. Unemployment rates affect availibility
3. If staff need to be highly qualified or experienced for the post, they will expect a
higher salary to reflect this
4. If unemployment rates are high there will be more competition for roles
What represents the price of labour to organisations? - ANS-Wages, which provide
income to households and represent a cost to firms.
