2020 11BST Multi Choice Exam

Secondary education is part of which industry sector?

• A. Primary

• B. Secondary

• C. Quinary

• D. Quaternary

Answer explanation

Secondary education falls under the quaternary sector, which focuses on knowledge-based services, including education and research. Thus, the correct answer is D. Quaternary.

What is the main aim of a trade union?

• A. Investigate anti-competitive behaviour by businesses

• B. Promote industry by lobbying the government

• C. Ensure all businesses comply with the industry standards

• D. Improve working conditions and pay rates for employees

Answer explanation

The main aim of a trade union is to improve working conditions and pay rates for employees, making option D the correct choice. Trade unions advocate for workers' rights and negotiate better terms on their behalf.

A company has sub-contracted another business to make packaging for its products. This is an example of which of the following?

• A. Distributing

• B. Outsourcing

• C. Industry sharing

• D. Market sharing

Answer explanation

The company subcontracting another business for packaging is an example of outsourcing, as it involves hiring an external party to perform a task that could be done internally.

Which of the following is an example of a private company?

• A. KFC

• B. Service NSW

• C. Afterpay LTD

• D. Futon Furniture Pty Ltd

Answer explanation

Futon Furniture Pty Ltd is a private company, as indicated by 'Pty Ltd' in its name, which signifies a proprietary limited company. In contrast, KFC is a franchise, Service NSW is a government agency, and Afterpay LTD is a public company.

Which level of government is responsible for zoning?

• Federal

• State

• Local

• National

Answer explanation

Zoning is primarily a local government responsibility, as it involves land use regulations and planning specific to communities. Local governments create zoning laws to manage development and land use effectively.

A business that increases prices to maximise their profit is likely to increase conflict between which two stakeholders

• Managers and government

• Employers and employees

• Employees and unions

• Owners and customers

Answer explanation

Increasing prices to maximise profit can lead to dissatisfaction among customers, creating conflict between owners, who seek higher profits, and customers, who may feel exploited or seek better value.

Which type of income is paid to the shareholders of a business?

• Dividends

• Interest

• Profits

• Wages

Answer explanation

Dividends are the portion of a company's earnings distributed to its shareholders. Unlike interest, which is paid on loans, or wages, which are compensation for work, dividends specifically reward shareholders for their investment.

The use of short-term debt finance by a business would best be used for the purchase of which of the following assets?

• Stock

• Buildings

• Machinery

• Motor vehicles

Answer explanation

Short-term debt is ideal for financing current assets like stock, which need quick turnover. In contrast, buildings, machinery, and motor vehicles are long-term investments better suited for long-term financing.

Which form of promotion refers to a business receiving a free news story about their product or service?

• Advertising

• Publicity

• Personal selling

• Sales promotion

Answer explanation

Publicity refers to gaining free media coverage, such as news stories, about a product or service. Unlike advertising, which is paid, publicity is earned through public interest and media attention.

A bank introduces new financial products for customers. The aim is to increase their proportion of sales in the banking industry. Which goal is the bank aiming to achieve?

• Increase market share

• Increase share price

• Personal growth

• Social goal

Answer explanation

The bank aims to increase its proportion of sales in the banking industry, which directly relates to gaining a larger customer base and sales volume. This objective is best described as increasing market share.