Type of Organization MCQs
Economies contain different types of organisation and the economy itself can be divided into the public and private sectors. Here on MCQs.club we have prepared Multiple-Choice Questions (MCQs) on types of organizational structure that fully cover MCQs on types of business, the organizational structure definition and the different forms and kinds and their objectives with examples. These MCQ on forms of business organization are useful for Competitive exams, Business management exams and Competitive exams.
- Economies contain different types of organisation and the economy itself can be divided into the public and private sectors.
- True
- False
- Private sector organisations, also called businesses, are owned and operated by private individuals or institutions, while organisations in the public sector are usually owned by the state.
- True
- False
- Types of Private sector organisations include:
- Profit oriented organisation
- Not-for-profit organisations
- Both A&B
- None
- Not-for-profit organisations –
- The essence of their status is not that they seek to avoid generating a surplus of funds, but that the generation of wealth for their owners is not the purpose of their existence.
- They include co-operatives, charities and unincorporated clubs, societies and associations.
- They use the surplus they generate to further their other objectives
- All of the above
- Profit seeking organisations –
- The economy is mostly driven by the profit-seeking part of the private sector.
- They provide the bulk of employment opportunities and tax revenue and create the growth needed to enhance economic welfare.
- Both A&B
- None
- Multinational corporations (MNC’s) –
- These organisations have the capacity to produce in more than one country, either by owning or controlling a foreign subsidiary.
- They are often large, well-known organisations such as petrol companies, but they may also be small in size.
- Both A&B
- None
- Advantages of becoming multinational corporations (MNC’s) include:
- Production should increase as products are sold more widely.
- Multinationals may attract a higher calibre of staff in terms of experience or ability.
- Operations can be located to take advantage of low-cost materials, labour, transport and other operating costs
- All of the above
- The growth of multinational corporations (MNC’s) can be attributed to:
- Innovation in communications technology
- Improved transport and infrastructure
- Market homogenization
- Political stability
- All of the above
- Public sector organisations –
- It includes public services (such as hospitals, schools) and state-owned industries
- Public sector bodies are all, ultimately, responsible to government for their activities, and their purposes are defined in the laws that establish them.
- Both A&B
- None
- Non-governmental organisations (NGOs) – are private organisations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services or undertake community development.
- The above is correct
- The above is incorrect
- The NGOs who seeks to influence government policy through lobbying and generating public feeling in its favour – through marketing and public relations techniques are known as:
- Campaigning NGOs
- Operational NGOs
- Both A&B
- None
- The NGOs which attempts to make a positive impact directly in the area it is interested in. This might be through though specific projects or undertaking work to make a change. These are known as:
- Campaigning NGOs
- Operational NGOs
- Both A&B
- None
- An organisation’s culture is influenced by many factors including:
- The organisation’s founder – A strong set of values and assumptions may have been established by the organisation’s founder. Even after they have retired, these values have their own momentum.
- The organisation’s history – The effect of history can be determined by stories, rituals and symbolic behaviour. They legitimise behaviour and promote priorities.
- Both A&B
- None
- A factor which has an impact on the culture of transnational organisations, or organisations competing in global markets, is management culture.
- True
- False
- Management Culture is a part of overall organisational culture and relates to the prevailing view within management about how to do its job.
- True
- False
- Hofstede identified a number of dimensions that contributed to cross-cultural differences in beliefs and values including:
- Individualism versus collectivism
- Masculinity versus femininity
- Uncertainty avoidance
- All of the above
- Hofstede found cultural differences in the areas of employee attitude including:
- Incentives used to motivate employees must match the culture. Not all cultures are motivated by money.
- In some cultures, a bureaucracy works best, in others a more open and professional approach is more effective.
- In some cultures, a manager is expected to take a personal and social interest in their subordinates, in other cultures this is discouraged.
- All of the above
- key characteristics of national culture as identified by Ronen and Shenkar include:
- The importance placed on work goals
- The role of job satisfaction
- The impact of organisational and managerial factors
- The impact of work roles and interpersonal relationships
- All of the above
- As far as management processes and decision making are concerned, typical problems include:
- Poor information systems and communications.
- Interpretation of information.
- Both A&B
- None
- Expatriate staff are sometimes favoured over local staff because:
- Some senior managers believe that a business run by expatriates is easier to control than one run by local staff.
- Expatriates might be better able than locals to communicate with the corporate centre.
- The expatriate may know more about the organisation overall, which is especially important if they are fronting a sales office.
- All of the above
- The use of expatriates in overseas markets has certain disadvantages including:
- They cost more
- A substantial training programme might be needed
- Both A&B
- None
- Employing local managers raises issues including:
- It may be hard for locals to assimilate into the corporate culture, and this might lead to communication problems.
- They will have greater local knowledge but may not be trained to understand the wider corporate picture, but this is true of most management at operational level.
- Both A&B
- None
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