CHAPTER 4 : MICRO ECONOMY 1. A shift of the market supply curve occurs when supply conditions change.

Which of the following could caused an upward shift (leftward) in supply curve? i) An increase in the cost of factor of production ii) An increase of the price of the good itself iii) A decrease in the price of other goods which would make them more attractive to producer iv) Increase in direct taxes A. B. C. D. i,ii and iv i and ii i,ii and iii i and iv

2. Are the following statements true or false? i) Micro environment refers to the immediate operational environment ii) Micro environment includes the groups and organisations that have a two-way operation relationship with the business A. B. C. D. Both statements are true Statement i is true and statement ii is false Statement i is false and statement ii is true Both statements are false

3. Which statement is/are true for the fluctuation of the quantity of a good supplied to a market Statement 1 : Existing suppliers may increase or reduce their output quantities. Statement 2 : Firms may stop production altogether and leave the market. A. Statement 1 is true , statement 2 is false. B. Statement 1 is false, statement 2 is true. C. Both statements are true. D. Both statements are false.

Chapter 5 1. What are the advantages to geographic departmentation? i) Expertise is pooled thanks to the division of work into specialist areas. ii) There is local decision-making at the point of contract between the organisation iii) It suits centralised business iv) It may be cheaper to establish are factories/offices than to service market from one location A. ii and iv only B. i,ii and iii only C. i,iii and iv only D. i and iii only

2. Which of the following is not the requirement for successful divisionalisation? A. The unit must rely on head office for excessive management support B. Each unit must be large enough to support the quantity and quality of management it needs C. Each unit must have potential for growth in its own area of operation D. There should be scope and challenge in the job for the management of each unit

3. Are the following statements true or false? Statement 1 : A tall organisation implies a wide span of control Statement 2 : A narrow organisation implies a narrow span of control A. Statement 1 is true , statement 2 is false. B. Statement 1 is false, statement 2 is true. C. Both statements are true. D. Both statements are false.

CHAPTER 6 1. What shapes organisation culture ? I. Leadership and management style's II. Organisation's environment III. Organisation's history IV. Organisation's customers A. I, II and III B. II, III and IV C. I and III D. III and IV

2. Marketing activities in organisation can be grouped broadly into four roles. Which one of these is incorrect ? A. Sales support B. Marketing communication C. Management support D. Strategic marketing

3. What is/are the importance of human resource management ? I. To increase productivity II. Increase staff turnover III. To encourage initiative IV. To enhance group learning A. I, II and III B. II, III and IV C. I, III and IV D. I, II, III and IV