REVISION: UNIT 301 CITY & GUILDS - BUSINESS ADMINISTRATION
LEVEL 3 QUESTIONS AND ANSWERS
Give 3 characteristics of the Private Sector - correct answer 1. Owned & controlled by
individuals
2. Exist to make a profit
3. Trade in competitive market
Give 3 characteristics of the Public Sector - correct answer 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) - correct answer 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? - correct answer How:
1. beliefs,
2. values
3. and practices
are demonstrated and promoted through an organisation.
What are Organisational Values? - correct answer Core principles/standards that guides the
way an organisation carries out their business
,What is a mission statement? - correct answer 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? - correct answer 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? - correct answer - 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? - correct answer 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? - correct answer The way an organisation demonstrates its
values
What are organisational values? - correct answer Core principles which outlines the way the
organisation does business.
What are the benefits of communicating organisational values to staff? - correct answer 1.
Expectations clear
,2. Client/customer satisfaction likely to increase
3. Objectives more likely to be met
Define what organisational aims are. - correct answer Statements of where an organisation
aims to be in the future
What is the importance of organisational aims? - correct answer 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? - correct answer Measurable targets
of how an organisation plans to achieve its aims
Measured by SMART
Name all the SMART Objectives - correct answer Specific
Measurable
Achievable
Relevant
Time-bound
How do staff benefit from clear aims and objectives? - correct answer 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? - correct answer 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? - correct answer 1. Inflation
2. Labour Market
3. Financial Market
4. Global Market
Define what inflation is and explain the effect. - correct answer 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? - correct answer Retail Price Index (RPI)
Consumer Price Index (CPI)
What does RPI include? - correct answer Includes housing costs, mortgage interest payments
and council tax.
What is (ONS) and what do they do? - correct answer Office for National Statistics (ONS)
provides the official statistics.
What does inflation affect? - correct answer Pressure on organisations to increase prices in
order to cover costs the businesses sell at.
LEVEL 3 QUESTIONS AND ANSWERS
Give 3 characteristics of the Private Sector - correct answer 1. Owned & controlled by
individuals
2. Exist to make a profit
3. Trade in competitive market
Give 3 characteristics of the Public Sector - correct answer 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) - correct answer 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? - correct answer How:
1. beliefs,
2. values
3. and practices
are demonstrated and promoted through an organisation.
What are Organisational Values? - correct answer Core principles/standards that guides the
way an organisation carries out their business
,What is a mission statement? - correct answer 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? - correct answer 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? - correct answer - 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? - correct answer 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? - correct answer The way an organisation demonstrates its
values
What are organisational values? - correct answer Core principles which outlines the way the
organisation does business.
What are the benefits of communicating organisational values to staff? - correct answer 1.
Expectations clear
,2. Client/customer satisfaction likely to increase
3. Objectives more likely to be met
Define what organisational aims are. - correct answer Statements of where an organisation
aims to be in the future
What is the importance of organisational aims? - correct answer 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? - correct answer Measurable targets
of how an organisation plans to achieve its aims
Measured by SMART
Name all the SMART Objectives - correct answer Specific
Measurable
Achievable
Relevant
Time-bound
How do staff benefit from clear aims and objectives? - correct answer 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? - correct answer 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? - correct answer 1. Inflation
2. Labour Market
3. Financial Market
4. Global Market
Define what inflation is and explain the effect. - correct answer 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? - correct answer Retail Price Index (RPI)
Consumer Price Index (CPI)
What does RPI include? - correct answer Includes housing costs, mortgage interest payments
and council tax.
What is (ONS) and what do they do? - correct answer Office for National Statistics (ONS)
provides the official statistics.
What does inflation affect? - correct answer Pressure on organisations to increase prices in
order to cover costs the businesses sell at.
