Unit 1 Quiz

Which of the following is an internal stakeholder of business that repairs cars?

• Mechanics who work at the garage
• Motorists who bring their car to the garage to be repaired
• Residents living near to the garage
• The government that creates the laws the garage must obey

The reward for enterprise is:

• Hard work
• Profit
• Risk
• Self-discipline

Which one of the following is not a reason to start your own business?

• To be your own boss
• To increase financial risk
• To pursue personal interests
• To satisfy customer needs

A business makes jeans. Which of the following is the role of its suppliers?

• To advertise the jeans on national television
• To buy large quantities of jeans
• To deliver fabric and fastenings on time
• To pay the wages of the sewing machinists

Which of the following would increase the market share of a company?

• Employing fewer staff
• Making its products more appealing
• Reducing output
• Spending less money

Two toy shops in Southsea have different objectives. Which of the following could be a reason why these two businesses have different objectives?

• Central government sets specific objectives for every business
• Diversification is not allowed
• One business is a new start-up and the other is well established
• The law does not allow businesses to have identical objectives

Which one of the following is a benefit of business planning?

• It increases business risk
• It increases the legal requirements on a business
• It reduces the amount of profit a business can make
• It reduces the chances of business failure

Which of the following stakeholder groups is most likely to benefit from a night club owner’s decision to close at 11pm instead of at 3am on weekdays?

• Customers
• Local residents
• Suppliers
• The government

Which of the following is most likely to describe the characteristics of a successful entrepreneur?

• Determined and creative
• Disorganised and inflexible
• Inflexible and determined
• Risk averse and disorganisedOption 1

Which of the following is most likely to help an established company obtain a bank loan?

• A business plan
• A job description
• A person specification
• An organisation chart