Orginisational Structures

Question 1

Calculate the weekly profits or losses of a business selling computers, if:
Selling price of each computer is £250
80 computers are sold weekly
Fixed costs are £1000
Total variable costs are £5000

Answer 1

250x80= £20,000
1,000+5,000= £6,000
20,000-6,000= £14,000

£14,000 profit.

Question 2

Must-

Answer 2

Identify the difference business structures

Question 3

Should-

Answer 3

Explain the benefits and drawbacks of structures

Question 4

Could-

Answer 4

Assess the effectiveness of business structures

Question 5

What is an organisational structure-

Answer 5

The way a business arranges its departments. The roles of employees within the business are shown on its organisational chart.

Question 6

Organisational chart-

Answer 6

A diagram that shows the roles of employees within the business

Question 7

Tall structure advantages & disadvantages

Answer 7

Advantages:
Communication is quicker from staff to managers
Learn new skills from delegation
Disadvantages:
Demotivated staff - not included in decision making
Information takes a longer time to reach top managers

Question 8

Flat structure advantages & disadvantages

Answer 8

Advantages:
Staff complete a wide range of skills
Disadvantages:
Not suitable for a large organisation

Question 9

Span of control-

Answer 9

The area of activity and number of function, people, or things for which an individual or organisation is responsible. This is represented as a numerical number

Question 10

Fixed costs = £10,187.00
Chocolate bar = 30p + 10p packaging (per product)
Selling price = £1.20 (per product)

Answer 10

What is the break even point?
10,817/(1.20-40)
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