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Unit 1 Quiz

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Which of these is an example of a business operating in the PRIMARY sector?

a)

Car manufacture

b)

Hairdresser

c)

Burger bar

d)

Fisherman

2.

Which of these is defined "a small, specialised market for a particular product or service, e.g. luxury chocolates, exotic pet food"?

a)

Gap in the market

b)

Targeted marketing

c)

Niche market

d)

Mass market

3.

Which of these is an ADVANTAGE of writing a business plan?

a)

It is quick and easy to do

b)

It allows the entrepreneur to focus on what the objectives are

c)

It means that the business is free from any risk

d)

Sometimes the entrepreneur can over-exaggerate in the plan leading to issues later on

4.

Which of these is a DISADVANTAGE of starting as a franchise rather than an independent business?

a)

It is less risky as you trade under a well-known brand name

b)

You have complete control in how you want to run the franchise

c)

There may be little room for creativity as the franchise agreement dictates what you can/cannot do

d)

You get no help or support - you are on your own

5.

Why is unlimited liability a problem?

a)

If the business goes bankrupt your personal possessions can be sold to pay off the debts

b)

It means you have shareholders telling you what to do

c)

You have to pay dividends to the shareholders

d)

Only the assets of the business are at risk if the business gets into debt

6.

Which stakeholder is likely to want good value for money?

a)

Shareholders

b)

Customers

c)

Government

d)

Local community

7.

What type of data do you get from a research focus group?

a)

Secondary data

b)

Quantitative data

c)

Qualitative data

d)

Statistical data

8.

Which of these is NOT one of the 4Ps of the marketing mix?

a)

Place

b)

Price

c)

Product

d)

Publicity

9.

What is e-commerce?

a)

Another name for the internet

b)

Buying and selling online

c)

Business over the phone

d)

A type of teleworking

10.

Which of these is NOT a source of finance available to a small business?

a)

Overdraft

b)

Mortgage

c)

Share issue

d)

Bank loan

11.

What is a cash flow forecast

a)

A financial document that shows the money in and out over the PAST 12 months

b)

A financial document that shows the assets and liabilities of a business

c)

A financial document that shows the profit or loss made over the PAST 12 months

d)

A plan that shows how much money a business expects to receive in, and pay out, over a given period of time

12.

Which of these is NOT a feature of an LTD?

a)

They have a separate legal entity from the owners

b)

They are limited by shares that are owned by family and friends

c)

They have limited liability for debts

d)

They are owned and controlled by 2 to 20 owners

13.

How do you calculate the net cash flow?

a)

Cash inflows-cash outflow

b)

Cash outflow - cash inflow

c)

Cash inflow + cash outflow

d)

Cash inflow x cash outflow

14.

Which of these is NOT a way to resolve poor cash flow?

a)

Give your customers a longer trade credit period to pay their bill

b)

Ask for a longer trade credit period from your suppliers

c)

Ask the bank for an overdraft

d)

Pay your staff monthly instead of weekly

15.

What is a typical aim of a start-up when just getting started?

a)

Survival

b)

Growth

c)

Ethical

d)

Shareholder value

16.

What is the first stage in hiring a new worker?

a)

Job description

b)

Interviews

c)

References

d)

Job analysis

17.

Which of these is an ADVANTAGE of hiring a new worker EXTERNALLY?

a)

Less training is needed

b)

It is faster

c)

There is a wider pool of candidates to select from

d)

It is cheaper

18.

Which of these is the most accurate selection method?

a)

Interview

b)

Graphology - analysing handwriting

c)

Assessment centres

d)

Aptitude tests

19.

Which of these is paying workers based on the amount produced?

a)

Time-rate

b)

Piece-rate

c)

Bonus

d)

Commission

20.

Which of these is NOT a way to decide the level of pay awarded to a job?

a)

Look at typical market pay rates for that job through an online tool

b)

Look at the experience and qualifications that the candidate has

c)

Add up the costs of making the product and add a margin and that's the wage to pay

d)

Link it to performance

21.

Which of these is a BENEFIT of on-the-job training?

a)

It is more cost-effective as the training is done in the working environment

b)

The trainer may pass on their bad habits

c)

Being able to train people is a skill everyone has

d)

The trainee can really focus on the training without any distractions

22.

When does induction training take place?

a)

At the interview

b)

At the beginning of a new job to help the new worker settle

c)

It is on-going throughout the working life of an employee

d)

Each year to review performance and equip staff with new skills

23.

What type of promotional technique is BOGOF an example of?

a)

Public relations

b)

Sponsorship

c)

Demonstration

d)

Sales promotion

24.

What is market segmentation?

a)

Splitting up the market into different groupings according to demographics such as age, income and social class

b)

Carrying out research by asking only certain people

c)

When you market a product to the mass market

d)

When you decide who your competitors are based on the markets they target

25.

Which law would make it unlawful to ask a woman if she ever plans to have children?

a)

Minimum Wage Act

b)

Employment Rights Act

c)

Working Time Directive

d)

Equality Act

26.

What type of production involves making one-offs to meet customer specifications?

a)

Job production

b)

Kaizen

c)

Batch production

d)

JIT

27.

What is 'efficiency'?

a)

How many employees a business has

b)

How well a business is using its resources to produce its goods/services

c)

The output per worker

d)

The use that a business makes of its resources

28.

Which of these is NOT a measure of efficiency?

a)

Labour productvity

b)

Capacity utilisation

c)

Cash flow forecast

d)

Average unit costs

29.

Which law states that "All products sold to customers must be: Satisfactory quality, Fit for purpose and As described"?

a)

Consumer Rights Act 2015

b)

Consumer Protection Act, 1987

c)

Consumer Protection from Unfair Trading Regulations, 2008

d)

Distance Selling Regulations, 2000

30.

Which of these is NOT a method of using ICT to provide good customer service?

a)

FAQs on the business website

b)

Online customer service questionnaires

c)

Comment/rating systems on e-commerce sites, e.g. Trip Advisor

d)

Mystery shoppers