Check-In Test: Business Activity

Which one of the following types of business can sell shares on the stock exchange?

• A partnership

• A private limited company

• A public limited company

• A sole trader

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

A clothing manufacturer buys a multiscreen cinema.

• A. A diversification

• B. A horizontal merger

• C. A partnership

• D. A vertical takeover

Six firms operate in a market. The pie chart below shows the annual revenue for each of these six firms. What is the market share of Firm D?

• 1%

• 10%

• 41⅔%

• 150%

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

The UK government requires sole traders to:

• advertise online

• employ staff

• operate from home

• pay tax on profits

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 Southville 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