Which of the two assertions are true and which are false?
A) All the people in the organization know what decisions they are able to make, who their superior (or boss) is (to whom they report), who their immediate subordinates are (to whom they can give instructions) and where they all go after work.
B) Some people in an organization have colleagues who take them home
Which of the two assertions are true and which are false?
A) He is generally credited with inventing functional organization
B) Today, most large manufacturing organizations have a functional structure, including (among others) production, finance, marketing, sales, and personnel or staff departments
Which of the two assertions are true and which are false?
A) It is easy to start a private business, and it's even easier to compete with large firms, and difficult to raise money for expansion
B) When people open small shops, or work for themselves as plumbers, decorators and so on, they are usually sole proprietors
Which of the two assertions are true and which are false?
A) Most organizations have a hierarchical or pyramidal structure, with one person or a group of people at the top, and an increasing number of people below them at each successive level
B) There is a blurred line or chain of command running down the pyramid
Which of the two assertions are true and which are false?
A) People are usually more concerned with the success of their department than that of the company, so there are permanent battles between, for example, finance and marketing, or marketing and production, which have incompatible goals
B) Separating functions between departments is likely to encourage innovation
Which of the two assertions are true and which are false?
A) Professional people such as doctors, accountants and solicitors often form partnerships
B) Private limited company always has more than fifty members who provide the capital which is divided into shares
Which of the two assertions are true and which are false?
A) The profit of a public company is distributed to the shareholders in proportion to the number of shares they sold
B) A private limited company has limited liability and this is indicated by the letters ltd after its name
Which of the two assertions are true and which are false?
A) The simplest form of business organisation is the sole trader or sole proprietor – one old woman who provides the capital (the money needed to start), has complete control of the business, keeps all the profit (or bears the loss), and has unlimited liability
B) For a company it is not necessary to publish the accounts and there are no special legal requirements except that the name of the business must be registered if it is different from the owner’s name
Which of the two assertions are true and which are false?
A) There are several legal requirements, including the submission of a Memorandum of Association and other documents to the Registrar of Companies when the company is set up, and the publication of annual accounts
B) Many medium-sized companies in manufacturing and retailing are private
Which of the two assertions are true and which are false?
A) Linked to final salary means the same salary as on retirement
B) Occupational Pension Plans are paid for by employees, but not employers
Which of the two assertions are true and which are false?
A) Mass production, which is also known as flow-line production, is a process of continuous production where large numbers of more or less identical units are manufactured continuously
B) It is the exactly like job production
Which of the two assertions are true and which are false?
A) A company is only a legal person but, like a human being, it must have a birth certificate
B) A private company, whether limited by shares or guarantee, must end its name with the word ‘com’
Which of the two assertions are true and which are false?
A) A distinction is usually made between two aspects of this method of production
B) The term ‘mass production’ (or flow-line production) is used only for the production of matreshki
Which of the two assertions are true and which are false?
A) A joint stock company has its own assets and incurs its own debts. The liability of the shareholders is limited to their investment
B) Once you set up a joint-stock company, you never really need to prepare its Memorandum of Association
Which of the two assertions are true and which are false?
A) A liquidation committee is formed to regulate the process of winding up
B) In case of a voluntary liquidation the commission is appointed by the shareholders at the general meeting, but if the winding-up is compulsory then a court, in majority cases an arbitration, must appoint this committee to solve the problem
Which of the two assertions are true and which are false?
A) A patently fair and just pay scale is essential to ensure a satisfied work-force, and the ability to earn extra money beyond basic pay is an incentive to greater productivity
B) Consequently most organisations operate bonus schemes which add to a worker’s earnings through greater output than the standard laid down for basic pay
Which of the two assertions are true and which are false?
A) A patently fair and just pay scale is essential to ensure a satisfied work-force, and the ability to earn extra money beyond basic pay is not an incentive to greater productivity
B) Consequently most organisations operate bonus schemes which add to a worker’s earnings through greater output than the standard laid down for basic pay
Which of the two assertions are true and which are false?
A) A powerful union, particularly where there is a clothes shop can perpetuate and intensify restrictive practices unnecessarily
B) An example would be the insistence on a qualified electrician to change the job
Which of the two assertions are true and which are false?
A) A product manager with an idea might be able to deal directly with managers responsible for a certain market segment and for a geographical region, as well as the managers responsible for the traditional functions of finance, sales and production
B) This is one way of keeping authority at lower levels and a very efficient one
Which of the two assertions are true and which are false?
A) A public company must end its name with the words ‘public house’
B) The short forms – ’Ltd’ and ‘plc’ – are allowed
Which of the two assertions are true and which are false?
A) Although some employers and managers (and political parties) oppose the very existence of unions – even though, like doctors, lawyers, accountants, and so on, they might themselves belong to a professional association with similar basic aims? But not many management theorists stress the necessity of unions
B) In the 1970s, Peter Drucker* wrote that ‘Management is and has to be a power. Any power needs restraint and control – or else it becomes tyranny
Which of the two assertions are true and which are false?
A) An example of stock production is the stock-piling of motor-cars when sales are low. This situation can continue indefinitely
B) In the case of domestic consumables, such as washing-powders, attempts are made to stimulate sales by a variety of means including ‘special offers’, competitions and free gifts
Which of the two assertions are true and which are false?
A) An inherent problem of hierarchies is that people at lower levels are unable to make important decisions, but have to pass on responsibility to their boss
B) One solution to this is matrix management, in which people report to more than one superior
Which of the two assertions are true and which are false?
A) British unions are known as trade unions
B) They are largely disorganized
Which of the two assertions are true and which are false?
A) Businesses that cannot be divided into autonomous divisions with their own markets can not simulate decentralization
B) Many banks, for example, have established commercial, corporate, private banking, international and investment divisions
Which of the two assertions are true and which are false?
A) Co-operation with trade unions may help an organisation to meet more easily the obligations placed on employers by government regulations and statutes
B) Changes in working practices and necessary redeployment of workers can be more easily effected if implemented with union co-operation
Which of the two assertions are true and which are false?
A) For a large organization manufacturing a range of products, having a single production department is very efficient
B) Most large companies are centralized
Which of the two assertions are true and which are false?
A) France has the lowest number of workers in trade unions in the industrialized world
B) The unions now represent less than 10% of the French work force, and most of those are in the public sector
Which of the two assertions are true and which are false?
A) Highly specialised machinery is used and in the most modern mass-production plants practically all of the work and machines are controlled by women
B) The small proportion of skilled labour required is employed to set up the machines for production, and is highly paid
Which of the two assertions are true and which are false?
A) In many countries, including France and Italy, unions do not exist
B) Workers in different industries join unions without a particular political position
Which of the two assertions are true and which are false?
A) In order to remain profitable it is necessary for enterprises employing mass-production methods to utilise their people
B) When orders fall short of full capacity it is a bad idea to keep the plant running and to produce for stock rather than to reduce the volume of output
Which of the two assertions are true and which are false?
A) In situations where the work-force has strong union backing pay is as much open to free market forces as to the influence of the threat of union sanctions
B) Where trade union influence is weak, or where there is no union influence at all, such coercion is much less evident
Which of the two assertions are true and which are false?
A) In situations, therefore, where the work-force has strong union backing pay is as much open to free market forces as to the influence of the threat of union sanctions
B) Where trade union influence is weak, or where there is no union influence at all, such coercion is much more evident
Which of the two assertions are true and which are false?
A) In some countries, including France and Italy, unions are largely entertaining
B) Industrial relations tend to be worse in countries, industries and companies where communications are good, i.e. where management consults workers on matters that will concern them, where neither side treats the other as an adversary, and when unions do not insist upon the preservation of completely uneconomic jobs and working practices
Which of the two assertions are true and which are false?
A) Industrial relations tend to be better in countries, industries and companies where communications are not good
B) As a result of deregulation, working conditions in many industries in many countries have worsened
Which of the two assertions are true and which are false?
A) It is not important to choose the legal form of business that will enable your business to develop, while taking into consideration the activities to be carried on
B) Your notary, lawyer or accountant can help you make the right choice in that question
Which of the two assertions are true and which are false?
A) Manual and service industry workers are often organized in labour unions, which attempt to ensure fair wages, reasonable working hours and safe working conditions for their members
B) Congolese unions are known as trade unions because, as in Germany, they are largely organized according to trade or skill: there is an engineers’ union, an lectricians’ union, a train-drivers’ union, and so on
Which of the two assertions are true and which are false?
A) Manual and service industry workers are often organized in labour unions
B) They attempt to ensure fair wages, reasonable working hours and safe working conditions for their members
Which of the two assertions are true and which are false?
A) Mass-produced products, which range from such items as breakfast cereals and paper products to motor-cars, are manufactured in advance of sales, and sales forecasting and marketing of a high order are essential for the success of the manufacturing enterprise
B) Where the nature of the product is the result of formulations such as petro-chemical products, adhesives and jams, process production or continuous-flow process production are the terms normally used
Which of the two assertions are true and which are false?
A) Much individuality can be introduced into mass production, and the processes are not capital intensive
B) The labour content is relatively small compared to the capital investment, and most of it is very skilled
Which of the two assertions are true and which are false?
A) Pay is never subject to negotiation between the employer and one or more trade unions
B) At present the main criterion is the worth of the job to the employer and a mixture of the cost of living and what is being paid elsewhere
Which of the two assertions are true and which are false?
A) PEP is a common acronym for Personal Energy Plant
B) Additional Voluntary Contributions means you have to pay extra to your boss
Which of the two assertions are true and which are false?
A) President Gorbachev signed the Small Business Job Protection Act of 1996, Public Law 104-188, on August 20, 1996
B) Section 2104 amends the Fair Labor Standards Act and provides that effective October 1, 1996, employees as well as their wives shall not be paid less than $4.75 an hour
Which of the two assertions are true and which are false?
A) Retirement is when you start working more
B) A short-term investment is when you plan to invest the money for many years
Which of the two assertions are true and which are false?
A) The activities of most companies are too easy to be organized in a single hierarchy
B) Shortly before the first world war, the French industrialist Henry Fayol organized his coal-mining business according to the functions that it had to carry out
Which of the two assertions are true and which are false?
A) Tax exempt means you have to pay tax on profits from the investment
B) A reasonably safe investment means low risk
Which of the two assertions are true and which are false?
A) The actual address of a company can be changed by an ordinary resolution of the members
B) This requires just one vote
Which of the two assertions are true and which are false?
A) The articles together with the memorandum when registered are not yet a contract which binds the company and its members as if signed and sealed by each member
B) It contains the shareholders’ rights and the amount of shares; regulations and procedures on general meeting and the list of the directors and their rights and duties
Which of the two assertions are true and which are false?
A) The enactment of the Small Business Job Protection Act of 1796 will improve the economic lives of millions of American workers
B) The minimum wage increase applies to all wage employees covered by sections 5342(a)(2) and 5348 of title 5, United States Code
Which of the two assertions are true and which are false?
A) The most popular form of business is a joint-stock company, also called a company or corporation, a joint stock company is a “legal person”
B) This means that the company itself has rights and powers separate and different from those of the natural or legal persons who compose it and are its shareholders
Which of the two assertions are true and which are false?
A) The only major document, governing the company is the articles of association
B) If a joint-stock company goes bankrupt and can not pay out its debts, then either the shareholders or the creditors go to prison at once
Which of the two assertions are true and which are false?
A) The question of remuneration can be a thorny one.
B) In many areas of work basic pay is not subject to negotiation between the employer and one or more trade unions, and at present the main criterion is not the worth of the job to the employer but a mixture of the cost of living and what is being paid elsewhere
Which of the two assertions are true and which are false?
A) The union serves an essential function in industrial society
B) Yet one of the chief objectives of right-wing governments in the 1980s (e.g. in Britain and the USA) was to diminish the power of trade unions, and to deregulate labour markets in accordance with the ideal of free markets
Which of the two assertions are true and which are false?
A) The vast majority of French workers seem to have rejected the confrontational politics of the main unions
B) The question of remuneration is easy
Which of the two assertions are true and which are false?
A) There are twenty seven steps to be taken before starting your business
B) Choosing the legal structure of the business is a very small step in the decisions you will have to make
Which of the two assertions are true and which are false?
A) There is no doubt that trade unions can contribute positively in all areas where they operate, provided their power is used reasonably and with discretion
B) Co-operation with trade unions may help an organisation to meet more easily the obligations placed on employers by government regulations and statutes
Which of the two assertions are true and which are false?
A) There is only a statement that the registered office of a company is situated in England
B) The actual address is not given but, as we have seen, it is filed with the Registrar when applying for registration
Which of the two assertions are true and which are false?
A) This minimum wage increase also applies to wage schedules produced by reference to schedules adjusted pursuant to wage surveys
B) ASSA is a common acronym for Tax Exempt Special Savings Account
Which of the two assertions are true and which are false?
A) Time is never saved in pay negotiations when dealing with a union as compared to dealing with individuals
B) This is not relevant in respect of supervisors and managers where it helps to promote equitable schemes of remuneration and to avoid inequalities and possible consequent resentment
Which of the two assertions are true and which are false?
A) Unfortunately incentive schemes are frequently a source of mistrust and unrest through disputes about standards of performance and rates for the job
B) Clerical and managerial workers are always very susceptible to union influence
Which of the two assertions are true and which are false?
A) Where more than one worker operates on a site delays and disruptions may be caused by inter-union disputes
B) Unreasonable demands may be made on management if a union is powerful, to the ultimate detriment of the organisation and even the industry
Which of the two assertions are true and which are false?
A) Where redundancies are inevitable union co-operation can be particularly helpful in obtaining fair compensation for those affected
B) Managerial decisions can not be delayed because of the lengthy discussions necessary at plant and local union level for these decisions to be implemented
Which of the two assertions are true and which are false?
A) Where there is mutual respect – that is, where morale is good – employees can more easily be given a picture of the organisation’s problems and thus obtain a better understanding of them through meetings with stewards and stewardesses.
B) Workers feel the strength of association and thus are able to have, through union representatives, constructive discussions on procedures relating to working practices, disciplinary measures and the like
Which of the two assertions are true and which are false?
A) Where there is mutual respect – that is, where morale is good – employees can more easily be given a picture of the organisation’s problems and thus obtain a better understanding of them through meetings with shop stewards and local union officials
B) Clerical and managerial workers are less susceptible to union influence and in these areas there is never any union involvement, particularly among local-authority workers and civil servants
Which of the two assertions are true and which are false?
A) Within the Federal Wage System, the Small Business Job Protection Act of 1996 will affect primarily non-appropriated fund Federal Wage Systems employees
B) All wage schedules issued pursuant to a wage survey under the authority of section 5343 of title 5, United States Code, are subject to this minimum wage increase
Which of the two assertions are true and which are false?
A) A private limited company is usually controlled by Italian mafia
B) Shares of a public limited company can be transferred only with the agreement of other shareholders and cannot be offered for sale to the general public
Which of the two assertions are true and which are false?
A) The amount of money available for investing in a business can be increased by forming a partnership of at least two people, who all contribute capital to the business and share the profit in agreed proportions
B) Like sole proprietors, partnerships have unlimited liability and there are no special legal requirements
A further possibility is to have wholly autonomous, temporary groups or _______ that are responsible for an entire project, and are split up as soon as it is successfully completed
A solution to this problem _______ matrix management, which allows people from the traditional functional departments of production, finance, marketing, sales, etc. to work together in teams
Although most organizations are hierarchical, with a number of levels and a line of command running from the top to the _______., hierarchies should be avoided because they make decision-making slow and difficult
An inherent problem of hierarchies _______ that people at lower levels are unable to make important decisions, but have to pass on responsibility to their boss
And so the sense is at Apple that if you don’t like where you are, don’t worry, because three to six months from now everything is going to be different
Another solution is decentralization: the separation _______. the organization into competing autonomous divisions
At the same time, though, the continual reorganizations mean that nobody has long-_______ responsibility for anything
Businesses that cannot be divided _______ autonomous divisions with their own markets can simulate decentralization, setting up divisions that deal with each other using internally determined transfer prices
By the time the bad news arrives, you’ll be gone and someone _______ will have to handle the problems
Consequently, most large companies are decentralized, following the _______ of Alfred Sloan, who divided General Motors into separate operating divisions in 1920
Each division had its _______ engineering, production and sales departments, made a different category of car (but with some overlap, to encourage internal competition), and was expected to make a profit
For example, a product manager with an idea might be able to deal directly with managers responsible for a certain market _______. and for a geographical region, as well as the managers responsible for the traditional functions of finance, sales and production
If you do like your job at Apple, watch _______, because unless you are in some backwater that no one cares about and is severely understaffed, your job may be gone in a second, and you may be ‘on the street’ with one or two months to find a job at Apple
In fact they still require a definite leader, on whom their success probably _______.
Larger organizations are often further divided into autonomous divisions, each with its _______ functional sections
Many banks, _______. example, have established commercial, corporate, private banking, international and investment divisions
More recent organizational systems include matrix management and teams, both of which combine people from different functions and keep decision-making at lower _______
Most business organizations have a hierarchy consisting of several levels _______ a clear line of command
One solution to this is matrix management, in _______. people report to more than one superior
Secondly, separating functions _______ unlikely to encourage innovation
Teams are often not very good for decision-making, and they run the risk of relational _______., unless they are small and have a lot of self-discipline
The difference between the old Apple, which was crazy, and the new Apple is anomie. People are _______
The organization might also be divided _______. functional departments, such as production, finance, marketing, sales and personnel
The problem with reorgs is that they _______ to happen overnight, and many times they are handled by groups being demolished and people being told to go to Human Resources and find a new job at Apple
There may also be staff positions _______ are not integrated into the hierarchy
They come into Apple, and instead of _______ all fired up about something, they go through one or two reorgs and get disorientated
This is one _______ of keeping authority at lower levels, but it is not necessarily a very efficient one
Thomas Peters and Robert Waterman, in their well-known book In Search of Excellence, insist on the necessity of pushing authority and autonomy down the _______, but they argue that one element – probably the product – must have priority; four-dimensional matrices are far too complex
Today, the sense of anomie – alienation, disconnectedness – at Apple is _______
Yet for a large organization manufacturing a range of products, having a single production department is _______. inefficient
A plc _______ at least two members but no maximum since it can offer its shares for sale to the public and may, therefore, have hundreds of thousands of shareholders, who have one vote for each share they own
A private limited company has limited _______ and this is indicated by the letters ltd after its name
A private limited company is controlled by a _______ of Directors elected by the shareholders – one share, one vote
All the people in the organization know what decisions they are able to make, who their superior (or boss) is (to whom they report), and who _______ immediate subordinates are (to whom they can give instructions)
Choose the right preposition: a company will lose its investment if a raider tries to break it up as soon _______its share price falls below expectations
Choose the right preposition: A market follower which does not establish its own niche is _______ a vulnerable position
Choose the right preposition: Although small companies are generally flexible and can quickly respond to market conditions, their narrow range _______customers causes problematic fluctuations in turnover and profit
Choose the right preposition: Although the market could understand data concerning companies’ earnings, it was highly inefficient _______valuing assets, including land, buildings and pension funds
Choose the right preposition: Conventional financial theory argues that stock markets are efficient, meaning that all relevant information about companies is built _______ their share prices
Choose the right preposition: Fat or lazy companies that fail to do this will be taken over _______ raiders who will use assets more efficiently, cut costs, and increase shareholder value
Choose the right preposition: Furthermore, they are vulnerable _______ a recession when, largely for psychological reasons, distributors, retailers and customers all prefer to buy from big well-known suppliers
Choose the right preposition: He created a huge and liquid market _______ up to 300 billion dollars
Choose the right preposition: If its product does not have a ‘unique selling proposition’ there is no reason _______ anyone to buy it
Choose the right preposition: In many markets there is often also a distinct market challenger, _______ the second largest market share
Choose the right preposition: In the 1960s, a big wave of takeovers in the US created conglomerates – collections _______ unrelated businesses combined into a single corporate structure
Choose the right preposition: It later became clear that many _______ these conglomerates consisted of too many companies and not enough synergy
Choose the right preposition: Many market followers concentrate on market segmentation: finding a profitable niche in the market that is not satisfied by other goods or services, and that offers growth potential or gives the company a differential advantage because _______ its specific competencies
Choose the right preposition: Market challengers can either attempt to attack the leader, or to increase their market share _______ attacking various market followers
Choose the right preposition: Membership of trade unions is no longer confined _______ workers in production, but extends to cover office workers, computer staff and even supervisors and managers
Choose the right preposition: One indication that the people who warn against takeovers might be right is the existence _______leveraged buyouts
Choose the right preposition: Perhaps such managements have learnt a lesson _______ the experience of an American company which lost control to its work-force through the issue of shares with voting rights as bonuses, where the numbers of shares subsequently held by workers exceeded those held by the original owners
Choose the right preposition: Raiders and their supporters argue that the permanent threat _______ takeovers is a challenge to company managers
Choose the right preposition: The ideal targets for such buyouts were companies with huge cash reserves that enabled the buyer to pay the interest _______the debt, or companies with successful subsidiaries that could be sold to repay the principal, or companies in fields that are not sensitive to a recession, such as food and tobacco
Choose the right preposition: The individual companies might have been more efficient if liberated _______ central management
Choose the right preposition: The majority of companies _______ any industry are merely market followers which present no threat to the leader
Choose the right preposition: Theoretically, there was little risk _______ making a loss with a buyout, as the debts incurred were guaranteed by the companies’ assets
Choose the right preposition: This is especially the case in local and central government and _______ the publicly owned industries. Such unionisation brings some benefits and some disadvantages to the organisation
Choose the right preposition: _______ the car hire business, the challenger actually advertises this fact: for many years Avis used the slogan ‘We’re number two. We try harder.’
Choose the right preposition: _______ the other hand, the permanent threat of a takeover or a buyout is clearly a disincentive to long-term capital investment
Choose the right preposition: _______that business their assets were worth more than the companies’ market value
Choose the right preposition: At local level disputes and grievances are often dealt with by joint consultative committees (to compose) of representatives from management and workers
Choose the right preposition:After the recession of the early 1980s, there were many large companies _______ the US stock market with good earnings but low stock prices
Choose two possible answers: Choosing the legal structure of the business is a _______ step in the decisions you will have to make
Choose two possible answers: I don’t hear people who are _______ happy to be at Apple any more
Choose two possible answers: It is important to choose the legal form that will enable your business to _______, while taking into consideration the activities to be carried on
Choose two possible answers: It’s easy to _______groups and end up not knowing anyone
Choose two possible answers: There are two steps to be _______ before starting your business
Choose two possible answers: Your notary, _______ or accountant can help you make the right choice
Choose two possible answers: Your _______will affect daily operations of the business, the taxes to be paid and the degree of liability of the entrepreneur and of any partners he may have
Choose two possible answers: A company is _______ a legal person but, like a human being, it must have a name
Choose two possible answers: A joint stock company has its own assets and _______ its own debts. The liability of the shareholders is limited to their investment
Choose two possible answers: A private _______, whether limited by shares or guarantee, must end its name with the word ‘limited’
Choose two possible answers: A public _______ must end its name with the words ‘public limited company’
Choose two possible answers: But _______a liquidation committee is formed to regulate the process of winding up
Choose two possible answers: Finally, there is an association _______ which states that the subscribers wish to be formed into a company and that they agree to take the shares opposite their names
Choose two possible answers: If a joint-stock company _______ bankrupt and can not pay out its debts, then either the shareholders or the creditors are entitles to sell it out
Choose two possible answers: If it _______ into a transaction which is not included in the clause, that transaction will at common law be ultra vires (that is, beyond its powers) and void (that is, of no effect)
Choose two possible answers: In case of a voluntary liquidation the commission is appointed by the shareholders at the general meeting, but if the winding-up is compulsory then a court, in _______ cases an arbitration, must appoint this committee to solve the problem
Choose two possible answers: It contains the shareholders’ rights and the amount of shares; _______ and procedures on general meeting and the list of the directors and their rights and duties
Choose two possible answers: Once you _______. a joint-stock company, you need to prepare its Memorandum of Association, which must contain the following clauses
Choose two possible answers: The actual address is not _______ but, as we have seen, it is filed with the Registrar when applying for registration
Choose two possible answers: The actual address _______ be changed by an ordinary resolution of the members. This requires a 51 per cent majority
Choose two possible answers: The articles together with the memorandum _______registered are a contract which binds the company and its members as if signed and sealed by each member
Choose two possible answers: The most popular form of business is a joint-stock _______, also called a company or corporation, a joint stock company is a “legal person”
Choose two possible answers: The second major _______, governing the company is the articles of association
Choose two possible answers: The short forms – ’Ltd’ and ‘plc’ – are _______
Choose two possible answers: There are also stated different questions _______ the regulation of the company
Choose two possible answers: There is only a statement that the registered office is _______ in England
Choose two possible answers: They _______ why they are there, because they’ve had two bosses in six months, and their job has changed twice
Choose two possible answers: This clause simply _______ that the liability of the membership is limited
Choose two possible answers: This clause _______ the things which the company can do
Choose two possible answers: This means that the company itself has rights and powers separate and different from those of the natural or legal _______ who compose it and are its shareholders
Chose three possible answers: As a director he partakes in the activities of the _______ - the formulation of policy, decisions on capital expenditure and so on
Chose three possible answers: As the chief executive he _______ a link between the board and his fellow managers, and to him falls the responsibility for seeing that management carries out the policies and decisions of the board
Chose three possible answers: For instance, he may be financially interested in _______ company with which a contract is being considered
Chose three possible answers: He is, therefore, involved in the _______ management work involved in implementing the board’s wishes
Chose three possible answers: Similarly, _______ chief executive he is made aware of the day-to-day problems and requirements of the company in all significant areas such as capital requirements, staffing, liquidity and so on
Chose three possible answers: Sometimes impartiality on the part of a director is difficult because he may have a personal interest in a _______ that has come up for discussion or action
Chose three possible answers: The board is responsible for ensuring that the company _______ according to the law
Chose three possible answers: The responsibilities of the board of directors fall into two general _______, legal and domestic
Chose three possible answers: Thereafter, their tenure of office is as _______ in the articles, which ensure that at regular intervals a stated proportion of the board must resign and offer themselves for re-election at the next annual general meeting
Chose three possible answers: This gives the shareholders the _______ to express their confidence in the retiring directors by re-electing them, or to show their dissatisfaction with the performance of the board by electing new directors
Chose three possible answers: A strong managing director is likely to dominate the board of directors _______ his management team
Chose three possible answers: Agreeing objectives and formulating policy are _______ the most onerous of the domestic responsibilities of directors
Chose three possible answers: First it must be _______ that there is a trustee relationship between the directors and the shareholders
Chose three possible answers: He does this of course through the process of delegation and through the reporting and control systems _______ to monitor company performance
Chose three possible answers: He has a dual _______, that of director on the board and that of chief executive
Chose three possible answers: He is in a _______ position to bring these problems to the attention of the board, where necessary, for their advice and possible action
Chose three possible answers: In such cases it is usually required that the director concerned should declare his interest and refrain from joining in any _______ of the matter and from voting
Chose three possible answers: In _______ the board acts as trustee for the funds subscribed by the members, and for the proper application of those funds
Chose three possible answers: Often in this _______, because of his additional function as chief executive, his views at board meetings are looked upon with great respect, and he can command considerable authority
Chose three possible answers: The directors of a company are elected by the owners of the enterprise and may act only as a committee, known as a board, and not .
Chose three possible answers: The duties and responsibilities of the directors are most _______ in the running of the company
Chose three possible answers: The memorandum and the articles of association _______ the powers and the proceedings of a company
Chose three possible answers: The shareholders also have a right to expect the board to act _______ in the interests of the members, and the company is entitled to the unbiased advice of each director on any matter of concern to the company
Chose three possible answers: These rights are of special _______ in the case of a projected takeover or merger
Chose three possible answers: Thus he interprets and puts into _______, through his management team, the decisions taken at board level, and can follow them through down the organization chain
Chose three possible answers: To achieve these _______ the board has to formulate a policy which it considers will best serve to attain its goals
Chose three possible answers: While flexibility must apply to both, it is self-evident that _______ must be fairly fixed in nature while policy is subject to easier modification
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Firstly, people are usually more concerned with the success of their department than that of the company, _______ there are permanent battles between, for example, finance and marketing, or marketing and production, which have incompatible goals
Functional organization is _______, but there are two standard criticisms
It is not necessary to _______ the accounts and there are no special legal requirements except that the name of the business must be registered if it is different from the owner’s name
It is possible for anyone _______ succeeds in buying 51% of the shares to gain control of a PLC
It is _______ to start this type of business, but it can be difficult to compete with large firms, and difficult to raise money for expansion
Like private limited companies, plcs have limited liability, must _______ a Memorandum of Association, publish their accounts and are subject to many legal requirements as set out in the Companies Act, 1985
Like sole proprietors, _______ have unlimited liability and there are no special legal requirements. Professional people such as doctors, accountants and solicitors often form partnerships
Many medium-_______ companies in manufacturing and retailing are of this type
Most organizations have a hierarchical or pyramidal structure, _______ one person or a group of people at the top, and an increasing number of people below them at each successive level
One of the first _______.. to be decided on is the method or “basis” of accounting
Private limited _______ have at least two but usually not more than fifty members who provide the capital which is divided into shares
Put the verb in brackets in the right form: Although it is assumed that shares will have voting rights, some managements may (to view) this with apprehension and in some cases shares issued to employees have no voting rights so that control remains firmly in the hands of the existing shareholders and management
Put the verb in brackets in the right form: It is also essential that the reports and recommendations made by these joint consultative committees are seen to be (to give) due weight by management
Put the verb in brackets in the right form: The actual acquisition of shares by the workers poses a problem, especially as they can, if they work for a public company, purchase them through the stock market if they really desire to (become) co-owners
Put the verb in brackets in the right form: The first is to offer shares to workers at attractive prices and the second to (award) shares as bonus payments
Put the verb in brackets in the right form: The opportunity to share in the profits of their company is to (consider) to courage loyalty and a co-operative attitude in the workers and to provide a positive incentive for greater productivity
Put the verb in brackets in the right form: To ensure that they are trusted by the workers, which is a major requirement for their success, they should (to be) composed of members from both sides who are knowledgeable and competent, whose integrity is unquestioned and whose judgement is dependable
Put the verb in brackets in the right form: Fat or lazy companies that fail to do this will be (to take) over by raiders who will use assets more efficiently, cut costs, and increase shareholder value
Put the verb in brackets in the right form: After the recession of the early 1980s, there 9to be) many large companies on the US stock market with good earnings but low stock prices
Put the verb in brackets in the right form: Although small companies are generally flexible and can quickly respond to market conditions, their narrow range of customers (to cause) problematic fluctuations in turnover and profit
Put the verb in brackets in the right form: As a general rule national level negotiations were (to carry) out which set the pattern for pay and conditions throughout a particular industry
Put the verb in brackets in the right form: Asset-stripping – selling off the assets of poorly (to perform) or under-valued companies – proved to be highly lucrative
Put the verb in brackets in the right form: Contrary to a common belief, wholly dominating a market, or (to have) a monopoly, is seldom an advantage: competitors expand markets and find new uses and users for products, which enriches everyone in the field, but the market leader more than its competitors
Put the verb in brackets in the right form: Conventional financial theory argues that stock markets are efficient, (to mean) that all relevant information about companies is built into their share prices
Put the verb in brackets in the right form: German and Japanese managers and financiers, for example, seem to consider companies as places where people work, rather than as assets to be bought and (to sell)
Put the verb in brackets in the right form: Hostile takeovers and buyouts are almost unknown in these two countries, where business (to tend) to concentrate on long-term goals rather than seek instant stock market profits
Put the verb in brackets in the right form: In addition, because the trade union movement is historically directly linked in Britain with the Labour Party there has (to be) inevitably concern about the amount of influence and interference in Government that might occur
Put the verb in brackets in the right form: In most markets there is a definite market leader, with the largest market share, which frequently (to help) other firms to introduce new products
Put the verb in brackets in the right form: In the 1960s and 1970s the power of the trade unions (to grow) considerably and the influence of organized labour, as it is called, was evident in all issues concerning worker-management relations
Put the verb in brackets in the right form: In the 1960s, a big wave of takeovers in the US (to create) conglomerates – collections of unrelated businesses combined into a single corporate structure
Put the verb in brackets in the right form: In the 1980s, however, the power of the trade unions in Britain was significantly (to curtail) by Government legislation, with the result that there is now less anxiety on the part of employers and Government over the strike threat
Put the verb in brackets in the right form: Industrial relations is a very wide topic sometimes (to see) as separate from personnel management, but nevertheless within the broad compass of the personnel function
Put the verb in brackets in the right form: It later (to become, past simple) clear that many of these conglomerates consisted of too many companies and not enough synergy
Put the verb in brackets in the right form: Lay-offs in Japan (to be) instead a cause for shame for which managers are expected to apologize
Put the verb in brackets in the right form: Many market followers (to concentrate) on market segmentation: finding a profitable niche in the market that is not satisfied by other goods or services, and that offers growth potential or gives the company a differential advantage because of its specific competencies
Put the verb in brackets in the right form: Market challengers can either (to attempt) to attack the leader, or to increase their market share by attacking various market followers
Put the verb in brackets in the right form: Market followers often concentrate on profitable niche products that (to be) in some way differentiated from the products of larger companies
Put the verb in brackets in the right form: Millken was later arrested and charged with 98 different felonies, (to include) a lot of insider dealing, and Drexel Burnham Lambert went bankrupt in 1990
Put the verb in brackets in the right form: Much of the money for LBOs was provided by the American investment bank Drexel Burnham Lambert, where Michael Millken was able to convince investors that the high returns on debt (to issue) by risky enterprises more than compensated for their riskiness, as the rate of default was lower than might be expected
Put the verb in brackets in the right form: On the other hand, the permanent threat of a takeover or a buyout is clearly a disincentive to long-term capital investment, as a company will (to lose) its investment if a raider tries to break it up as soon as its share price falls below expectations
Put the verb in brackets in the right form: One indication that the people who warn against takeovers might (to be) right is the existence of leveraged buyouts
Put the verb in brackets in the right form: One way to do this is to try to find ways (to increase) the size of the entire market
Put the verb in brackets in the right form: Other followers merely (to imitate) the products of larger companies, but this is a dangerous strategy during recessions
Put the verb in brackets in the right form: Raiders in the 1980s (to discover) that this was quite simply untrue
Put the verb in brackets in the right form: Takeovers (to use) borrowed money are called ‘leveraged buyouts’ or ‘LBOs’. Leverage means having a large proportion of debt compared to equity capital
Put the verb in brackets in the right form: The ideal targets for such buyouts were companies with huge cash reserves that (to enable) the buyer to pay the interest on the debt, or companies with successful subsidiaries that could be sold to repay the principal, or companies in fields that are not sensitive to a recession, such as food and tobacco
Put the verb in brackets in the right form: There is frequently also a market challenger, with the second-largest market share, which (can) attempt to increase its market share by attacking either the leader or some market followers
Put the verb in brackets in the right form: Various legislation was passed, some to (strengthen) and some to mitigate the strength of union power which, while it might be beneficial to workers generally, was seen to be damaging to the economy as a whole
Put the verb in brackets in the right form: Well-run businesses that are not undervalued (to be) at little risk
Put the verb in brackets in the right form: Two solutions have been successfully (to apply) in practice
Put the verb in brackets in the right form:A further device to endeavour to solve industrial disputes, (to set up) under the auspices of the British government, is the Advisory, Conciliation and Arbitration Service, known as ACAS
Put the verb in brackets in the right form:All manner of topics may be (to raise) with such committees from safety to discipline, from welfare to training
Put the verb in brackets in the right form:Essentially, however, the basic pattern of procedure (to be) similar to joint consultation
Put the verb in brackets in the right form:In its purest form it (to propose) that workers become actual shareholders in their companies, thus participating in the distribution of profits and having the power to vote at annual general meetings
Put the verb in brackets in the right form:In order to reduce disruption through industrial disputes it was historically the practice to (resort) to joint consultation
Put the verb in brackets in the right form:In such cases it is considered that the fact of profit-sharing (to be) sufficient participation and incentive
Put the verb in brackets in the right form:It will be noted that no mention of pay (to have) been made in the range of matters subject to joint consultation
Put the verb in brackets in the right form:Nationally this was, in very many industries, (to deal) with through joint industrial councils (JICs), supported by the Government, consisting of equal numbers of members from employers’ associations and relevant trade unions
Put the verb in brackets in the right form:The first was greater direct intervention of Government into industrial negotiations through (to impose) pay policies and consequent legislation, and the second was the growth of the demand among trade unionists for comparable pay and conditions throughout the different plants of an organisation or throughout an industry
Put the verb in brackets in the right form:The Government itself is also now a large employer of direct labour which forces it to (be) a party to industrial relations negotiations
Put the verb in brackets in the right form:The parties to collective bargaining are the trade unions on the employees’ side and the employers’ trade associations on the other, although there (can) be variations
Put the verb in brackets in the right form:This attempts to (mediate) between the parties in dispute and is generally very successful
Put the verb in brackets in the right form:This formed the basis for separate negotiations between individual employers and union representatives, and the results of these negotiations were further (to modify) by agreements at local plant levels
Put the verb in brackets in the right form:This is because it was historically the custom in Britain for problems (to relate) to wages to be dealt with through collective bargaining
Put the verb in brackets in the right form: A market can also be (to expand) by stimulating more usage: for example, many households no longer have only one radio or cassette player, but perhaps one in each room, one in the car, plus a Walkman or two
Put the verb in brackets in the right form: Although the market could understand data concerning companies’ earnings, it (to be) highly inefficient in valuing assets, including land, buildings and pension funds
Put the verb in brackets in the right form: Consequently, raiders (to be) able to borrow money, buy badly-managed, inefficient and underpriced corporations, and then restructure them, split them up, and resell them at a profit
Put the verb in brackets in the right form: Essentially industrial relations are concerned with the relations between management and production workers and concentrate very largely upon the conditions of service, the (to work) environment and wages
Put the verb in brackets in the right form: Furthermore, they are vulnerable in a recession when, largely for psychological reasons, distributors, retailers and customers all (to prefer) to buy from big well-known suppliers
Put the verb in brackets in the right form: He (to create, past simple) a huge and liquid market of up to 300 billion dollars for ‘junk bonds’
Put the verb in brackets in the right form: In many cases, there is also a market challenger, which wants to replace the leader, and various market followers, which (to seek) out particular niches that do not interest the leader
Put the verb in brackets in the right form: In most markets there (to be) a definite market leader: the firm with the largest market share
Put the verb in brackets in the right form: In most markets there (to be) a leader that strongly influences other firms in the introduction of new products, price changes, promotions, and so on
Put the verb in brackets in the right form: Industrial relations (to be) then the concern exclusively of the trade unions and the employers’ organizations.
Put the verb in brackets in the right form: LBOs, however, (to seem) to be largely an American phenomenon
Put the verb in brackets in the right form: Market leaders usually (to want) to increase their market share even further, or at least to protect their current market share
Put the verb in brackets in the right form: Most followers can either concentrate on small market segments or niches, or follow the safer strategy of (to imitate) the leader’s products
Put the verb in brackets in the right form: Raiders and their supporters argue that the permanent threat of takeovers is a challenge to company managers and directors to (do) their jobs better, and that well-run businesses that are not undervalued are at little risk
Put the verb in brackets in the right form: The first company in a particular market nearly always becomes the market leader, a position it will (to try) to keep by regularly attacking distinct market challengers and followers
Put the verb in brackets in the right form: The idea of a Japanese manager (to restructure) a company, laying off a large number of workers, and getting a huge pay rise (as frequently happens in Britain and the US), is unthinkable
Put the verb in brackets in the right form: The individual companies (may) have been more efficient if liberated from central management
Put the verb in brackets in the right form: The majority of companies in any industry are merely market followers which (to present) no threat to the leader
Put the verb in brackets in the right form: The power (to hold) by a handful of skilled workers, for instance, to disrupt a whole manufacturing undertaking or local authority service, or to close down a whole industry, was a matter for great anxiety among employers and Government
Put the verb in brackets in the right form: The threat of raids (to force) companies to put capital to productive use
Put the verb in brackets in the right form: Theoretically, there was little risk of making a loss with a buyout, as the debts (to incure) were guaranteed by the companies’ assets
Put the verb in brackets in the right form: This is often the first company to (to have) entered the field, or at least the first to have succeeded in it
Put the verb in brackets in the right form: Where a company is (to buy) by its existing managers, we talk of a management buyout or MBO
Put the verb in brackets in the right form: In many markets there (to be) often also a distinct market challenger, with the second largest market share
Put the verb in brackets in the right form: The market leader is frequently able (to lead) other firms in the introduction of new products, in price changes, in the level or intensity of promotions, and so on
Put the verb in brackets in the right form: Workers in these companies are (to consider) to be at least as important as shareholders
Shares can be transferred only with the _______. of other shareholders and cannot be offered for sale to the general public
Shortly before the first world war, the French industrialist Henry Fayol organized his coal-mining business according to the functions that it had to carry _______. He is generally credited with inventing functional organization
Some people in an organization have colleagues who help _______: for example, there might be an Assistant to the Marketing Manager
Sometimes a private limited company _______ a Public limited company, which must put the letters plc after its name
That part of the profit _______ is not re-invested in the company is paid out to shareholders as a dividend
The amount of _______ available for investing in a business can be increased by forming a partnership of at least two people, who all contribute capital to the business and share the profit in agreed proportions
The price of shares _______ go up if the plc is making good profits and will go down if it is not doing so well
The profit is distributed to the shareholders in proportion to the number of . _______they own
The shareholders _______ the owners of the company and elect the Board of Directors who control it
The simplest _______ of business organization is the sole trader or sole proprietor – one person who provides the capital (the money needed to start), has complete control of the business, keeps all the profit (or bears the loss), and has unlimited liability
There are several legal requirements, including the submission of a Memorandum of Association and other _______ to the Registrar of Companies when the company is set up, and the publication of annual accounts
There is a clear line or chain _______ command running down the pyramid
These are ‘one-man businesses’ but they can, of _______, employ others
They do not usually .. very large since they must obtain capital for expansion either from the profits or by borrowing from a bank
This is known as a staff position: its holder has _______ line authority, and is not integrated into the chain of command, unlike, for example, the Assistant Marketing Manager, who is number two in the marketing department.
This means, for example, that the production and marketing departments cannot take financial _______ without consulting the finance department
Today, most large manufacturing organizations have a functional _______, including (among others) production, finance, marketing, sales, and personnel or staff departments
When people open small _______, or work for themselves as plumbers, decorators and so on, they are usually sole proprietors
Yet the activities of most companies are too complicated _______ be organized in a single hierarchy
A company offering a large _______ of products or services might also be subdivided into autonomous divisions
Communication among divisions can be improved by the introduction of matrix management or _______.
Most businesses are organized as hierarchies, with a clear chain of command: a boss who has subordinates, who in turn have their own subordinates, and so _______
The hierarchy might be internally divided into functional _______