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1
Which of the following defines an organisation? 
A 
A social arrangement which pursues collective goals, which controls its own performance and 
which has a boundary separating it from its environment 
B 
A social arrangement which exists to make a profit, controls its own performance and which 
operates within certain boundaries 
2
A private sector organisation is one owned or run by: 
A Central government 
B Local government 
C Government agencies 
D None of the above 
3
Businesses owned by their workers or customers who share the profits are called 
A Limited 
companies 
C Co-operatives 
B Private 
limited 
companies 
D Partnerships 
4
Which one of the following are examples of internal stakeholders? 
A Shareholders 
C Suppliers 
B Employees 
D Financiers 
5
According to Mendelow's matrix, stakeholders in segment C (low interest, high power) should be kept 
informed. Is this true or false? 
CHAPTER ROUNDUP 
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CHAPTER 1
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BUSINESS ORGANISATIONS AND THEIR STAKEHOLDERS 
 
17 
1
A 
This is the definition of an organisation. Not all organisations exist to make a profit. 
2
D 
None of the above. A 
public 
sector organisation is owned or run by central or local government. 
3
C 
Co-operatives are owned by their workers or customers. 
4
B 
The others are all connected stakeholders. 
5
False. Stakeholders in this segment should be kept satisfied.