13.1 Introduction

Multiple Choice

1.     What is meant by the term ‘profit’?

• a.     How much money a company spends on new machinery

• b. The amount of money a company receives from selling its goods or services

• c. The money a company pays its shareholders

• d.  The amount of money a company receives minus its running/manufacturing costs

Multiple Choice

2.     What is meant by the term ‘customers’?

• a.     The people who work for a company

• b.     The people who visit the website of the company

• c. The people who buy the company’s goods or services

• d.    The people who use the company’s goods or services

Multiple Select

3.     Which of these can be described as stakeholders?

• a.     The people who work for a company

• b.     The people who buy the goods and services

• c.     The people who own the company

• d.     The people who sell goods or services to the company

Multiple Choice

4.     What is meant by the term ‘competition’?

• a.     Other companies that provide the same goods or services

• b.     The process where employees are given a promotion

• c.     Other companies that deliver to the organisation

• d.     The people who buy the goods and services

Multiple Choice

5.     What is meant by the term ‘value added’?

• a.     The price of a product to the customer

• b.     The price of the raw materials used to make a product

• c.     The extra value added to the goods compared to the raw materials

• d.     The whole cost of running the company for a year