Business Chapter 1 Review

Which of these products is designed to meet a customer need?

• Potato crisps

• Cricket bat

• Bread

• Smartphone

Which of the following is a business stakeholder?

• Lawyer

• Tax collector

• Customer

• Police officer

Which of the following business activities is a service?

• House construction

• Dental treatment

• Coconut farming

• Gold mining

An example of a producer good is?

• Tractor

• Newspaper

• Package holiday

• Meal at a restaurant

Which of the following is a non-financial business objective?

• Increase market share

• Independence and control

• Profit maximisation

• Survival

Which of the following is a financial business objective?

• Improve customer service

• Independence and control

• Sales growth

• Improve social responsibility

Which of the following might cause business objectives to change over time?

• Technological development

• A rise in the price of shares

• Following the introduction of a new accounting system

• A change in weather patterns

Which of the following is likely to be an objective of a public sector organisation?

• Increase profit by 5% in the next financial year

• Survival

• Increase revenue by 20% over a three year period

• Improve the quality of customer service

Which of the following is an advantage of a sole trader?

• Limited liability

• More capital can be raised than a partnership

• Unlimited liability

• Independence for owners

Having a clear social and/or environmental mission is a feature of which business structure?

• Franchise

• Sole trader

• Social enterprise

• Partnership