CIMA BA1 · Chapter 4 · Question 1 of 9
In the assessment of value for money in a not-for-profit organisation, 'effectiveness' refers to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The extent to which the organisation achieves its objectives
Explanation
Value for money is commonly assessed using economy (minimising the cost of inputs), efficiency (the relationship between inputs and outputs) and effectiveness (whether outputs achieve the intended objectives). Fair distribution relates to equity.
More Goals of organisations and stakeholders MCQs
- Q3Which of the following is an example of the principal-agent problem?
- Q4Using Mendelow's power-interest matrix, a stakeholder group with high power and high interest in an organisation's strategy should be:
- Q5The concept of 'satisficing' suggests that managers:
- Q6Which of the following is a key role of independent non-executive directors in a listed company?
- Q7A firm that aims to maximise sales revenue (with no profit constraint) will choose the level of output at which: