PRINCIPLES OF BUSINESS ADMINISTRATION QUESTIONS WITH
CERTIFIED ANSWERS .1
Private sector organisations
- correct answer
· owned and controlled by individuals
· exist to make a profit
. Trade in a competitive market
Public sector organisations
- correct answer
· are funded by the government
· provide services to the public
Do not exist in order to make a profit
Voluntary sector organisations
- correct answer
· are motivated by the desire to achieve social goals (e.g. Improving public welfare or the
environment)
· reinvest surplus monies rather than create profit
· benefit the public
· can include local community projects and groups
What is organisational culture?
- correct answer
· a set of shared beliefs, values and practices that are demonstrated and promoted throughout
an organisation
· the way an organisation demonstrates it values and purpose
, What are values? - correct answer · business values are the core principles or standards that
guide the way an organisation does business
· they sum up what your business stands for and what makes it special
Mission statements - correct answer · the purpose of the organisation or its reason for existing
· a written declaration of an organisation's core purpose and focus that normally remains
unchanged over time
· defines the company's business, its objectives and its approach to reach those objectives
Vision statement - correct answer · describes the desired future position of the company
· usually outlines what the business hopes to achieve.
What are vision and mission statements important for?
- correct answer ·
. clarifying direction, aims and objectives
· highlight appropriate behaviour and attitudes
· promoting specific organisational cultures
· attracting customers and stakeholders
What is an aim? - correct answer · an aim is where a business wants to go in the future
· it is a statement of purpose about where an organisation would like to be in the future
What are business objectives? - correct answer · these are the stated, measurable targets of
how an organisation plans to achieve its aims
Why are aims and objectives important? - correct answer
· to provide a clear direction for the organisation
· to plan activities that are aligned with aims
CERTIFIED ANSWERS .1
Private sector organisations
- correct answer
· owned and controlled by individuals
· exist to make a profit
. Trade in a competitive market
Public sector organisations
- correct answer
· are funded by the government
· provide services to the public
Do not exist in order to make a profit
Voluntary sector organisations
- correct answer
· are motivated by the desire to achieve social goals (e.g. Improving public welfare or the
environment)
· reinvest surplus monies rather than create profit
· benefit the public
· can include local community projects and groups
What is organisational culture?
- correct answer
· a set of shared beliefs, values and practices that are demonstrated and promoted throughout
an organisation
· the way an organisation demonstrates it values and purpose
, What are values? - correct answer · business values are the core principles or standards that
guide the way an organisation does business
· they sum up what your business stands for and what makes it special
Mission statements - correct answer · the purpose of the organisation or its reason for existing
· a written declaration of an organisation's core purpose and focus that normally remains
unchanged over time
· defines the company's business, its objectives and its approach to reach those objectives
Vision statement - correct answer · describes the desired future position of the company
· usually outlines what the business hopes to achieve.
What are vision and mission statements important for?
- correct answer ·
. clarifying direction, aims and objectives
· highlight appropriate behaviour and attitudes
· promoting specific organisational cultures
· attracting customers and stakeholders
What is an aim? - correct answer · an aim is where a business wants to go in the future
· it is a statement of purpose about where an organisation would like to be in the future
What are business objectives? - correct answer · these are the stated, measurable targets of
how an organisation plans to achieve its aims
Why are aims and objectives important? - correct answer
· to provide a clear direction for the organisation
· to plan activities that are aligned with aims
