Business Functions and Organization Quiz

What is the responsibility of the sales function in a business organization?

What is the difference between policy and procedure in a business organization?

What is the main responsibility of the human resource or personnel function in a business organization?

Which of the following is NOT a purpose of an organization chart in a business organization?

What does an organization chart demonstrate in a business organization?

What is the benefit of using an organization chart in a business organization?

Which of the following is an advantage of decentralised administration functions?

What is the purpose of policies, procedures and best practices in an organization?

Which of the following is an example of a decentralised function in an organization?

Overview of Business Organization and Functions

A business organization is a group of people who work together to achieve commercial goals.
The focus of MA1 studies is on business organizations, but the techniques learned can apply to managing charities and not-for-profit organizations.
Common functions of all business organizations are purchasing, production and operation, sales and marketing, finance, and human resource or personnel.
Purchasing aims to ensure the business buys products and services of the required quality at the best price.
The production function is responsible for producing the goods or providing the services that the business sells.
The sales function generates sales and ensures that transactions proceed smoothly, while marketing builds awareness and attracts leads to the business.
The finance function processes financial data, monitors cash flow, and records receipts and payments from customers and suppliers.
The human resource or personnel function is responsible for hiring and firing employees, training, health and safety, and overall staff welfare.
Other functions of a business organization may include information technology, research and development, after-sales service/customer care, facilities, and general administration.
The organization of a function will differ according to the size of the organization.
Policy is a guide to be followed in a given set of circumstances, procedure is a sequence of steps for completing a specific activity, and best practice is a consistently effective procedure.
An organization chart shows how the different functions within a business are organized and demonstrates formal relationships, communication flows, and reporting channels within the organization.

Test your knowledge on the functions and organization of businesses with our quiz. Learn about the different roles and responsibilities of purchasing, production, sales and marketing, finance, and human resources departments. Discover how policies, procedures, and best practices are used in business operations and understand the importance of an organization chart. If you're studying MA1 or just interested in the inner workings of businesses, take our quiz now to see how much you know!