301.1 PRINCIPLES OF BUSINESS ADMINISTRATION CORE QUESTIONS
WITH ANSWERS.18
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
· To ensure that the organisation is moving in the right direction
· To promote a culture that works towards the same goals
Examples of aims - correct answer · To develop services to every country in Europe
· To be the most profitable financial services organisation in the Midlands
· To be the most innovative technology company in the UK
· To be the market leader
Examples of objectives - correct answer · Maintain a 80% or more positive feedback rate
WITH ANSWERS.18
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
· To ensure that the organisation is moving in the right direction
· To promote a culture that works towards the same goals
Examples of aims - correct answer · To develop services to every country in Europe
· To be the most profitable financial services organisation in the Midlands
· To be the most innovative technology company in the UK
· To be the market leader
Examples of objectives - correct answer · Maintain a 80% or more positive feedback rate
