Business Administration
Apprenticeship Level 3 -Knowledge
Test Revision Questions Fully Solved.
Mission - Answer the purpose of the organization, what it is and who it serves
the organizations reason for existing
Vision - Answer where the business aim to go over long term
Values - Answer the organization also has values which represent what the organization
stands for
Importance of aims and objectives for a business - Answer It is important to have aims and
objectives as they cover an organizations aims to achieve as well as the outcomes
They assist an organization by making its purpose clearer
Aim - Answer Aims are known as statements of intent and they set out what the organization
hopes to achieve
Objective - Answer Objectives should be specific statements that define measurable
outcomes
Inflation - Answer Inflation, which is a general increase in prices and fall in the purchasing
value of money.
This effects the organisation by putting pressure on them through the increase of prices in order
to cover cost, the prices the organisaton sell at, whether it sells products of services, or the cost
of what they purchase as an organisation
Labour market - Answer Labour market affects an organisation as staff need to carry out the
work necessary, however if qualified staff are not available, the organisation will find it costly to
recruit. In addition, if there is a favourable market, staff will be tempted to leave and move to
other organisations, often competitors
, Financial market - Answer A broad term describing any markletplace where buyers and
sellers participate in the trade of assets such as equities, bonds, currencies and derivatives.
Financial markets are typically defined by market forces.
The financial market has an impact on organisations as it dictates interest rates, what they can
borrow and what they can earn in terms of interest.
Currency rates can also affect those organisations who buy or sell overseas.
The financial market can also affect the share price of an organisation. In addition the financial
market will cover the stock exchange, which does not own shares but acts as a market where
those wanting to buy stocks can connect with those selling.
Stocks - Answer Stocks can be traded on one or more possible exchanges throughout the
world.
Stock market - Answer where stocks are traded
Stock exchange - Answer a stock exchange is more specific to the place where the training is
carried out
Global market - Answer Global market affects the wider economy through cultural
differences. There are many cultural differences such as language, values and what things mean
in one country may not be seen in the same way in another.
Currency can also affect the global market as there can be fluctuations that will affect the price
of goods that are exported and imported.
Trade restrictions have to be considered eg some countries set quotas where they limit the
amount of imported goods to protect the domestic businesses. Trade barriers can include taxes,
tariffs and duties. These are applied to protect the country's own industries.
Market forces - Answer the 'economic factors affecting the price of, demand for, and
availability of a commodity. In general, excess demand causes prices and quantity of supply to
rise, and excess supply causes them to fall.'
Policy and regulatory change - Answer Where there may be some changes in legislation,
regulations which in turn require a change to policies in the organisation. The policies and
procedures require to be altered to put in place those legislative and regulatory changes.
Apprenticeship Level 3 -Knowledge
Test Revision Questions Fully Solved.
Mission - Answer the purpose of the organization, what it is and who it serves
the organizations reason for existing
Vision - Answer where the business aim to go over long term
Values - Answer the organization also has values which represent what the organization
stands for
Importance of aims and objectives for a business - Answer It is important to have aims and
objectives as they cover an organizations aims to achieve as well as the outcomes
They assist an organization by making its purpose clearer
Aim - Answer Aims are known as statements of intent and they set out what the organization
hopes to achieve
Objective - Answer Objectives should be specific statements that define measurable
outcomes
Inflation - Answer Inflation, which is a general increase in prices and fall in the purchasing
value of money.
This effects the organisation by putting pressure on them through the increase of prices in order
to cover cost, the prices the organisaton sell at, whether it sells products of services, or the cost
of what they purchase as an organisation
Labour market - Answer Labour market affects an organisation as staff need to carry out the
work necessary, however if qualified staff are not available, the organisation will find it costly to
recruit. In addition, if there is a favourable market, staff will be tempted to leave and move to
other organisations, often competitors
, Financial market - Answer A broad term describing any markletplace where buyers and
sellers participate in the trade of assets such as equities, bonds, currencies and derivatives.
Financial markets are typically defined by market forces.
The financial market has an impact on organisations as it dictates interest rates, what they can
borrow and what they can earn in terms of interest.
Currency rates can also affect those organisations who buy or sell overseas.
The financial market can also affect the share price of an organisation. In addition the financial
market will cover the stock exchange, which does not own shares but acts as a market where
those wanting to buy stocks can connect with those selling.
Stocks - Answer Stocks can be traded on one or more possible exchanges throughout the
world.
Stock market - Answer where stocks are traded
Stock exchange - Answer a stock exchange is more specific to the place where the training is
carried out
Global market - Answer Global market affects the wider economy through cultural
differences. There are many cultural differences such as language, values and what things mean
in one country may not be seen in the same way in another.
Currency can also affect the global market as there can be fluctuations that will affect the price
of goods that are exported and imported.
Trade restrictions have to be considered eg some countries set quotas where they limit the
amount of imported goods to protect the domestic businesses. Trade barriers can include taxes,
tariffs and duties. These are applied to protect the country's own industries.
Market forces - Answer the 'economic factors affecting the price of, demand for, and
availability of a commodity. In general, excess demand causes prices and quantity of supply to
rise, and excess supply causes them to fall.'
Policy and regulatory change - Answer Where there may be some changes in legislation,
regulations which in turn require a change to policies in the organisation. The policies and
procedures require to be altered to put in place those legislative and regulatory changes.
