Tag: Profit Making

Lucy is a manager who can authorise her own travel expenses up to £2,000.

Lucy is about to travel abroad on business and has a choice between flying economy class for £650 or flying business class for £2,250.

Lucy is an old friend of the company’s travel administrator, Alex, who arranges bookings.

Lucy persuades Alex to book the business class seat without proper authorisation.

This is an example of Lucy exercising her…?

Select ONE answer:

1. Authority without power
2. Power without authority
3. Delegation of authority
4. Power with authority

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 2

1. Notcorrect
2. Correct  –>  Referent power is based on identification with, admiration of or respect for the individual. This can be summed up as power based on force of personality.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Alex who is a regional lending manager with Big Bank plc based in Staffordshire has the authority to lend up to £1 m on an unsecured basis to any single corporate customer without reference to his head office.

What sort of power is this?

Select ONE answer:

1. Referent power
2. Expert power
3. Legitimate power
4. Reward power

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 3

1. Not correct
2. Not correct
3. Correct –>  A company’s procedures allow the manager to authorise lending up to £1m. This is legitimate power – power given by his position and bank procedures.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Alex works for Lucy plc.

His personal stature and credibility and his relationship with owners, employees and customers bring strong support from these quarters for his application to a senior management post.

He generates strong feelings of loyalty and commitment among the people that currently work for him, and they know that he has great capabilities and should go far in the company.

Alex appears to exhibit which kind of power?

Select ONE answer:

1. Legitimate power
2. Referent power
3. Coercive power
4. Expert power

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 2

1. Notcorrect
2. Correct  –>  Referent power is based on identification with, admiration of or respect for the individual. This can be summed up as power based on force of personality.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs is known as?

Select ONE answer:

1. Corporate responsibility
2. Sustainability
3. Business ethics
4. Reversability

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 2

1. Notcorrect
2. Correct  –>  This is the definition of sustainability as set out in the Brundtland report
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Alex plc is a large group which processes waste for local authorities.

It has stated that it seeks to provide:

“our shareholders with increased value, our customers with value for money, our employees with secure and interesting jobs and the public with safe and environmentally sustainable waste disposal.’

This is analysed below into four statements.

Identify which is Alex plc’s primary business objective.

Select ONE answer:

1. To provide our shareholders with increased value
2. To provide our customers with value for money
3. To provide our employees with secure and interesting jobs
4. To provide the public with safe and environmentally sustainable waste disposal

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 1

1. Correct – the other statements are secondary objectives
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.