ⅠTrueorFalseQuestions.(1pointeach,25pointstotal)1.Organizationcanbecategorizedbyactivity,namely,basedonturnover,assets,numberofemployees.2.Theaimoforganizationsistogenerateoutputswhichhaveagreatervaluethanthelaborusedup.F3.Objectivesmustbequantifiableandspecific.4.Crisismanagementdescribeshowthemanagersprepareforandreacttoasuddenchange.5.Soletraderisanindividualwhoownsthebusiness.6.Workerco-operativesetuptobenefitconsumers.7.PublicsectororganizationsareownedordirectedbytheGovernment.8.TheoryYmanagersseemtobelievethatemployeesarelazy,donotwanttowork,havetobecontrolledandmonitored.9.PrivatelimitedcompaniesmuststatetheextenttowhichtheycomplywiththeCadburyCodesofBestPracticeintheirannualreport.10.Theissuedsharecapitalcannotbegreaterthantheauthorized.11.BisanassociatecompanyofAifAhasbetween20and50%ofthesharesofB.12.Afranchisorbuystherighttouse/sellaproductorservicetoafranchiseeinreturnforafixedfeeand/orpercentageoftheturnover.13.Mergeroccurswhentwoormorefirmsjointogether,itmightbethroughamergeroratake-over.14.Synergyistheideathatwhentwocompaniesjointogether,overallperformancewillbeworsethanthesumofthetwofirmsindividually.15.Microenvironmentarefactorsbeyondtheimmediateenvironmentofthefirm.16.Nichemarketisasmallpartofthemarketwhichmajorproducersareconcernedwith.17.Stagesoftheproductlifecycleincludedevelopment,introduction,growth,maturityanddecline.18.Marketpenetrationattemptstogainagreatershareofanewmarket.19.Focusofpullstrategyisonconsumers,byappealingtoconsumersdirectly.20.Thelessthevalueoftheadvertisingelasticity,thegreatertherelationshipbetweenadvertisinganddemand.F21.Accountsprovidenumerateinformationtohelpdecisionmaking.22.Daytodayfinanceoftheorganization=currentassets+currentliabilities23.GDPshowshowmuchhasbeenearnedwithinacountry.24.TheMultiplierisbasedontheideathatoneperson’sspendingisanother’sincome.25.Contribution=revenue–variablecostsTⅡAnswertheFollowingQuestions(5pointseach,30pointstotal)26.Whatarethemainelementsofbusinessplan?27.Whatisamerger?Andwhymerge?28.Whatarethereasonsforbecomingmultinational?29.Howdosmallfirmssurvive?30.Howtoimprovecashflow?31.UseadiagramtoillustrateBreakEvenOutputandMarginofSafety.ⅢCalculations(8pointsfor32nd,16pointsforthe33rd,24pointstotal)32.MethodsofinvestmentappraisalPleasecalculatePaybackandARRaccordingtothefollowingtable.Note:Payback:thisisthelengthoftimeittakesforthefirmtorecoupitsinitialinvestment.Averagerateofreturn(ARR):thisistheaverageprofitperyearasapercentageoftheinitialinvestment.33.RatiosRatiosanalysiscomparesonefigurewithanothertoplaceitincontextandassessitsrelativeimportance.Ithelpsanalysedataandaidsdecisionmaking.PleasecalculateAssetTurnover,ProfitMargin,AcidTestandGearingaccordingtothefollowingaccounts.Profitandlossfortheyearending17thJune2008Turnover(orsales)CostofsalesGrossprofitExpensesOperatingprofitNonoperatingincomeProfitbeforeinterestandtaxInterestpayableTaxProfitattributabletoordinaryshareholdersDividendsRetainedprofit£40030010080200204115105Year£DiscountfactorsCalculationPresentvalue0(200)1.000(200)×1.000(200)1500.90950×0.90945.452500.82650×0.82641.3031000.751100×0.75175.1041600.683160×0.683109.28Answers:ⅠTrueorFalseQuestions1.T2.T3.F4.F5.T6.T7.T8.F9.T10.F11.T12.F13.T14.F15.F16.F17.T18.F19.T20.F21.T22.F23.F24.F25.TQuestionsⅡ26.Toemployers:channelofcommunication;canhighlighthumanresourceimplicati...