Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
11. 1.5 External environment - questions
    1. The social environment - self-test
    2. The economic environment - self-test
    3. Technological change - short answer questions
    4. Technological change - case study
    5. Economic growth - short answer questions
    6. Inflation - short answer questions
    7. Exchange rates - short answer questions
    8. Exchange rates - Case Study
    9. Unemployment - short answer questions
    10. Interest rates - short answer questions
    11. Apple's iPad goes global
    12. Anti-monopoly probe by EU
    13. Oiling the wheels of industry?
    14. Japan cuts Interest rates
    15. China relaxes controls on Yuan
    16. External influences and market structure
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

The social environment - self-test

1

Ethical behaviour What effect might acting in an ethical way have on a business? a) Improve relations with suppliers b) Decrease its export potential c) Cause more staff to leave d) Cause customers to move to another brand Yes, that's correct. Well done. An increasing number of firms like to do business with others who behave in an acceptable ethical way.No, that's not right. The correct answer is A as increasing numbers of firms like to do business with others who behave in an acceptable ethical way. B might actually improve as other countries and their citizens appreciate the way you do business. Both C and D are less likely to happen now that ethical behaviour is so widely accepted by business.Your answer has been saved.

2

Pressure groups How might a pressure group encourage corporate responsibility? a) By refusing to join in negotiations over employee rights with a business b) By threatening to expose what it considers to be wrong doings by a particular business c) By not publishing its own ideas on values and visions of modern capitalism d) By ignoring anything outside its own area of concern Yes, that's correct. Well done. Pressure groups will threaten to expose irresponsible behaviour by firms.No, that's not right. The correct answer is B. A would probably allow the business to feel that the pressure group is not really interested in building a dialogue and so it would probably not be watching for wrong doings. C is not the way to shift opinions and most pressure groups use all the means at their disposal to inform what they stand for. D is no longer the case as pressure groups communicate with each other.Your answer has been saved.

3

Social auditing Social auditing might involve: a) Removing all stakeholders from the 'need to know' category b) Noting how much money has been spent on advertising c) Establishing performance indicators d) Reducing the amount of record keeping within the organisation Yes, that's correct. Well done. Most companies now develop social performance indicators.No, that's not right. The correct answer is C. Most companies now develop social performance indicators. A would be a poor move though it is not directly connected with social audits. However, failure to keep stakeholders informed would have some potential serious consequences. D would not be the case as companies now keep detailed records on their actions, lest the lawyers or the press come to call.Your answer has been saved.

4

Environmental auditing Why might a business carry out an environmental audit? a) To see which areas are best to locate in b) To assess the environmental impact of the firm's policies c) To develop cost cutting ideas d) To improve productivity Yes, that's correct. Well done. Many companies now carry out environmental audits to assess the environmental impact of the firm's policies.No, that's not right. The correct answer is B. A refers to location policy and is not directly involved in this area of our studies. C is unlikely to take place and many of these more 'modern' policies cost money to implement but can you afford not to? D might arise if employees feel proud of the firm's environmental record but it will take time.Your answer has been saved.

5

Externalities What are 'externalities'? a) The normal costs of a business b) A situation where private costs are different to social costs and private benefits are different from the social benefits c) The average cost of production on society d) Factors from outside the business that affect its performance Yes, that's correct. Well done. Many companies now carry out environmental audits to assess the environmental impact of the firm's policies.No, that's not right. The correct answer is B. A refers to the fixed, variable etc costs of any business and do not include any social costs and benefits. C is just the total cost divided by the output and so again does not include social costs and benefits. D is referring to the external environment, but externalities has a more specific meaning than this.Your answer has been saved.