OCR Unit 1 SAM Section A

Which of the following would be classified as an internal stakeholder of a private limited company?

• Central government

• Directors

• Partners

• Pressure groups

A business operated by a sole trader has:

• no tax liability

• one owner

• one shareholder

• only one stakeholder

A public limited company:

• can sell its shares on the stock exchange

• cannot cease trading

• has unlimited liability

• operates in the public sector

Which of the following functional areas of a business is most likely to be responsible for producing a radio advertisement to raise awareness of its new product?

• Customer service

• Marketing

• Operations

• Sales

Paying above the minimum wage is an example of:

• a business opportunity

• being an ethical employer

• poor cash flow management

• wasting physical resources

A supervisor’s immediate superior is most likely to be:

• a director

• a manager

• an apprentice

• an operative

The Business Support Services function of a large company is most likely to support the purchasing function by

• installing new presentation software

• producing a template letter for customer complaints

• updating the company’s e-commerce website

• upgrading a database of suppliers

A business produces goods which are of an inferior quality compared to that of its competitors. This is an example of:

• a weakness of the business

• being competitive

• delegation of authority

• unethical trading

An overdraft is:

• a long term, external source of finance

• a long term, internal source of finance

• a short term, external source of finance

• a short term, internal source of finance

Nadia makes violins in her garage at home. She estimates her costs for 2016 as follows:

• Machinery hire: £2000 per annum

• Marketing: £400 per annum

• Raw materials: £45 per violin.

If Nadia sells each violin for £125, the break-even output for 2016 would be:

• 19 violins

• 25 violins

• 30 violins

• 192 violins