Year 11 Unit 1 Revision Quiz 7

Raj has developed an idea for a new business.  This is an example of:

• discrimination

• enterprise

• flexible working

• productivity

Which stakeholder does limited liability protect?

• customers

• employees

• shareholders

• suppliers

A plumbing firm is struggling to keep up with demand.  What would help the business to success?

• asking regular customers with blocked toilets to ring back another day

• giving customers unrealistic appointment times

• ignoring customer complaints about delays in fixing water leaks

• planning all business activity and work schedules carefully

Limited liability protects:

• business owners

• customers

• suppliers

• the local community

Finley and Umi are business partners.  They create personalised pictures, using shells and pebbles.  They started the business after attending an art class together.  What would not be an appropriate reason for Finley and Umi to have started this business?

• they developed an idea for a business by making pictures that are unique

• they satisfied the needs of customers looking for sustainable gifts

• they spotted an opportunity to earn money from a leisure activity they loved

• they wanted to test their physical and mental health by working long hours

Which type of ownership is most suitable for an entrepreneur who wishes to start up their own business quickly and with as little paperwork as possible?

• partnership

• private limited company

• public limited company

• sole trader

DM plc manufactures canned drinks.  The company’s main objective for the coming financial year is to increase its market share by 2%.  What would help the company achieve its objective?

• increasing the cost of its canned drinks

• increasing the number of retail outlets it supplies

• increasing the price of its canned drinks

• increasing the time it takes to process orders

Firms A and B both operate in the same industry.  Firm A’s objective is to make a profit.  Firm B’s objective is survival.  What would explain this difference in objectives?

• Firm A has a low market share and Firm B a high market share

• Firm B is a start-up business and Firm A is an established business

• the owners of Firm A have less determination that the owners of Firm B

• the owners of Firm B are more confident than the owners of Firm A

The directors of a public limited company have decided to reduce the size of the workforce to increase profits.  Which stakeholder is most likely to benefit from this decision?

• customers

• employees

• owners

• the local community

Alex, a sole trader, opened a hair salon three years ago.  He has recently changed the main objective of the business from ‘profit’ to survival’.  What would explain this change of objective?

• the hair salon has already achieved its profit objective

• the hair salon has gained a lot of new customers

• the hair salon is experiencing intense competition

• the hair salon is now an established business