The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.
Alex, CEO of Staffordshire Engineering, refers to himself as a ‘caring dictator’ and has created a culture where all employee opinions are listened to.
Which one of the following leadership styles would most apply to Alex?
Select ONE answer:
Laissez-faire
Democratic
Autocratic
Paternalistic
Show your workings to arrive at your answer, and explain and justify your reasons:
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
Not correct – because a laissez-faire leadership style is non-authoritarian and Alex does control his employees.
Not correct – because democratic leaders are prepared to share all decision-making and Alex only listens to his Employees.
Not correct – because an autocratic leader would make all the important decisions with no involvement from workers and would not listen to the opinions of the employees.
Correct – Definition of paternalistic e.g. the leader acts as a father figure to employees. Alex does look after his employees and listens to their opinions. Alex refers to himself as a ‘caring dictator’ indicating that whilst he listens to employees, he makes the final decisions.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
Not correct – because a discount food retailer may have a negative YED and therefore will see an increase in revenue during the recession.
Not correct – because fast food takeaways may see an increase in revenue as consumers switch to cheaper food rather than going to expensive restaurants.
Not correct – because a bus company can be regarded as an inferior good and may see revenue increase as consumers cannot afford to travel by car.
Correct – Definition of recession e.g. two consecutive quarters of negative growth OR definition of revenue e.g. total amount of trading income generated by sales. During a recession many people’s incomes are likely to be reduced so they are unlikely to go on holiday. Demand for holidays fall therefore reducing the revenue of travel agents.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
Not correct – because the span of control will be unaffected because consultation is concerned with employee views rather than the number of workers responsible to a manager.
Not correct – because labour turnover is likely to decrease as employees feel valued and will be less likely to leave.
Correct – Definition of consultation e.g. discussions with employees about working methods/non-financial technique to improve staff performance. Employees may therefore feel more motivated. This results in an increase in employee productivity because their views are listened to.
Not correct – because supervision is likely to be reduced because employees are more motivated to work independently.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
Correct – Definition of zero-based budgeting e.g. a method of budgeting in which all expenses must be justified for each new period by the manager. Managers must bid and justify their budgets. This forces managers to examine all their costs for the current year, which should lead to a more efficient allocation of resources.
Not correct – because zero-based budgeting can be very time consuming to examine every cost each year rather than basing it on previous budgets.
Not correct – because zero-based budgeting is produced by individual managers of each department not by an accountant.
Not correct – because zero-based budgeting does not use any historical data which is used in historical based budgeting.
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