End of unit 1 Questions

What is the main characteristic of a multinational corporation (MNC)?

• Operates in only one country

• Conducts business in multiple countries

• Focuses exclusively on local markets

• Has limited production capacity

Which of the following is a feature of globalisation?

• Increased interconnectedness and interdependence of economies and cultures
• Decreased communication and interaction between countries
• Limited access to international markets and resources
• Isolation and independence of economies and cultures

Which of the following is an example of visible trade?

• Manufactured aircraft parts

• Buying and selling of stocks
• Investing in real estate
• Tourism

Interest rates decreased in the UK by 2%. What affect did this have on businesses?

• Inflation will fall

• Consumers will spend more

• Business will be less likely to borrow money

• Business sales revenue will decrease

Which of the following is not an external factor that may affect a businesss?

• Political

• Profit

• Social factors

• Environmental factors

Which of the following is most likely to be used by shareholders to measure the success of a business?

• Revenue

• Dividend growth

• Quality of customer service

• Social impacts

Which one of the following desribes a business that begins trading with insuffucient capital?

• Overtrading

• Undercapitalised

• Overdrawn

• Insolvent

Which one of the following is a trade barrier?

• Interest rates

• VAT

• Corporation tax

• Tariff

What is the name of the tax that multinational companies pay?

• VAT

• Corporation tax

• Income tax

• Sales tax

Which one of the following is a political factor?

• Taxation

• Global warming

• Habitat destruction

• Part time workers