Tag: Profit Making

CCBM is a charity providing medical services in remote rural areas of South Africa.

The chief executive, Alex,  is currently involved in preparing a brochure outlining the services provided by the charity.

In that document, Alex hopes to stress that the charity sees itself being the largest global provider of charitable medical services by 2025.

In highlighting this, Alex is stressing the charity’s?

Select ONE answer:

1. Vision
2. Mission
3. Primary objective
4. Secondary objective

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
2. Not correct
3. Not correct
4. Not correct

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

Two of Alex plc’s stakeholder groups are putting the company under pressure to improve its return on investment.

These are most likely to comprise which TWO of the following groups?

A Shareholders

B Bankers

C Customers

D Suppliers

E Employees

Select ONE answer:

1. A & B
2. A & C
3. A & D
4. A & E

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 two groups most likely to put the company under pressure to improve its return on investment are the shareholders and the bankers. Customers want products of a certain quality at a reasonable price; suppliers are interested in regular orders in return for reliable delivery and good service; and employees’ objectives include job security, good conditions of work and job satisfaction.
2. Not correct
3. Not correct
4. Not correct

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

A big airline, Alex Planes plc has been drawing up a mission statement.

Which THRE of the following items would you expect to see in it?

A We will double profits in three years

B We will encourage meritocracy in the workplace

C We intend to be the best airline in the world

D We aim to give excellent customer service

E We intend to take over Lufthansa

F We intend to have a 30% market share on the London to New York route

Select ONE answer:

1. A, B and C
2. A, C and D
3. B, C and D
4. B, D and E

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 mission statement should answer the following fundamental questions: What is our business? What is our value to the customer? What do we want our business to become? What should our business be? (A) and (F) are numerical targets and more likely to be secondary objectives; (E) is a detailed tactic.
4. Not correct

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

For Alex Ltd, which of the following would be classified as secondary objectives?

Select ONE answer:

1. The business’s mission statement
2. The business’s market share target for next year
3. The business’s financial objective of shareholder wealth maximisation
4. The business’s vision

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  –>  The mission statement and vision are general expressions of the business’s basic function and planned future status respectively, whilst shareholder wealth maximisation would rank as the primary objective of any organisation classified as a business.
3. Not correct
4. Not correct

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