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1			Which of the following statements provides the strongest challenge to the idea that commercial organisations necessarily aim to maximise their profits?
			A)	it is easy to identify all costs
			B)	it is easy to identify all revenues
			C)	managers make do with a satisfactory level of profits
			D)	shareholders are solely motivated by higher profits
2			A College offering an established training programme to new groups of students is best described as pursuing a policy of:
			A)	product development
			B)	market development
			C)	conversion
			D)	diversification
3			A breakfast cereal manufacturer seeking to expand by encouraging its customers to buy larger size packages of its cereal is pursuing a strategy best described as:
			A)	market penetration strategy
			B)	product development strategy
			C)	diversification strategy
			D)	cost leadership strategy
4			Compared to growth by acquisition, organic growth is normally considered to be:
			A)	more rapid
			B)	more risky
			C)	less risky
			D)	appropriate only to small organisations
5			A brewery acquiring a hop farm is an example of:
			A)	forward vertical integration
			B)	backward vertical integration
			C)	horizontal integration
			D)	sideways integration
6			A company’s ratio of share capital to loan finance is referred to as its:
			A)	diversification percentage
			B)	focus ratio
			C)	driving ratio
			D)	gearing
7			The acronym 'SME' is often used to describe which type of organisation?
			A)	Small Manufacturing Enterprise
			B)	Small- & Medium-sized Enterprise
			C)	Small Manufacturing Employer
			D)	Smart, Multifunctional, Entrepreneurial
8			In the UK, approximately ____ % of all enterprises employ fewer than 50 people:
			A)	1
			B)	10
			C)	50
			D)	99
9			The BCG ’Growth-share’ matrix analyses firms’ decisions whether or not to invest in products. Which of the following are NOT investment/divestment product typologies?
			A)	Cash cow
			B)	Dogs
			C)	Cats
			D)	Question marks
10			Economies of scale within a slow growth industry sector is likely to be most easily achieved by which form of growth?
			A)	organic
			B)	growth by acquisition
			C)	growth by diversification
			D)	structured growth