Machinery is an example of which factor of production:

• Land

• Labour

• Capital

• Enterprise

A business which grows potatoes and makes them into crisps is said to be operating in the:

• Primary and secondary sectors

• Primary and tertiary sectors

• Secondary and tertiary sectors

• Primary, secondary & tertiary sectors

Which of the following is an advantage of growth through opening new stores?

• Growth may be dependent on overall market growth

• Less risky than taking over other businesses

• Fast way of growing market share compared to external growth

• New stores are guaranteed to be successful

Last year, a business sold 19,600 units and made £98,000 in revenue. Its annual fixed costs were £30,000 and its variable cost per unit was £1.10. How much profit did it make last year?

• £46,440

• £68,000

• £76,440

• £128,000

Which type of business is likely to have increasing shareholder value as an objective?

• Sole trader

• Partnership

• Public limited company

• Not-for-profit organisation

The most likely advantage of being a sole trader business is being able to:

• Share decision making

• Raise large amounts of finance

• Keep all profit made

• Receive dividend payments

A business sells 450,000 units per year. Fixed costs per year are £370,000 and variable costs are £1.20 per unit the businesses total costs are:

• £444,000

• £540,000

• £820,000

• £910,000

Which of the following statements best describes an entrepreneur?

• Someone who buys a product from a business

• Someone who uses goods and services produced by a business

• Someone who works for a business

• Someone who is willing to take the risk involved in starting a business

A high street coffee shop uses recyclable cups. The stakeholder objective being met is:

• Minimising the time it takes to pay its suppliers

• Maximising dividend payments for its owners

• Minimising environmental impact on the local community

• Maximising pay for employees

A manufacturer is most likely to move production from the UK to the Far East because it is closer to:

• Customers

• Raw materials

• Competitors

• Cheaper labour