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WorksheetsTopic 3 Business Planning
Total questions: 28
Worksheet time: 21mins
Name
Class
Date
1.
Which of the following is a quantitative measurement that can be used to determine whether a business is a small business?
a)
Legal structure
b)
Sources of finance
c)
Type of ownership
d)
Number of employees
2.
Which of the following would not be a common characteristic of a SME?
a)
Personalised service
b)
Independently operated
c)
Large share of total industry output
d)
Bulk of capital provided by owner
3.
Which of the following statements best defines balance of payments?
a)
The total value of debts a company owes to external creditors
b)
The total money value of all goods and services produced in Australia over a one year-period
c)
A record of a country’s trade and financial transactions with the rest of the world over time, usually one year
d)
A system used to determine what to produce, how to produce and to whom production will be distributed
4.
Apple has recently introduced the new iPhone 4, which has a lot more features than the previous model. What would this be an example of?
a)
Branding
b)
Diversification
c)
Innovation
d)
Invention
5.
Which of the following reasons for business failure is attributed to the external business environment?
a)
Complacency
b)
Supplier problems
c)
Insufficient capital
d)
Negative cash flow
6.
Which of the following would most likely occur during a period of economic growth?
a)
A decrease in GDP
b)
An increase in GDP
c)
A decrease in the number of SMEs
d)
An increase in the number of SMEs
7.
Which of the following sources of advice for small businesses is not a government agency?
a)
AusIndustry
b)
Business Enterprise Centres Australia
c)
NSW Department of State and Regional Development
d)
Chambers of commerce
8.
Michael plans to start his own small business. He is looking for an organisation that could provide him with specific industry information and assistance. Which of the following sources of information would be the most useful?
a)
AusIndustry
b)
Trade associations
c)
Business Enterprise Centres Australia
d)
Small Enterprise Association of Australia and New Zealand
9.
Maria wants to start her own laser hair removal clinic; however, she lacks experience and is very fearful of her business failing. Which of the following establishment options would be best suited for Maria?
a)
Buying a franchise
b)
Starting up a new business
c)
Buying an existing business
d)
All of the above
10.
Which of the following would be a disadvantage of buying an existing business?
a)
Time is needed to develop a customer base.
b)
It may be difficult to assess the value of goodwill.
c)
Existing employees can offer advice and assistance.
d)
The owner does not have complete control over the operations.
11.
Isabella opened a pharmacy in her local shopping centre and decided to copy the prices of Pharmacy King, a competitor located on the shopping strip outside the shopping centre. Which price-setting method did Isabella use?
a)
Price leadership
b)
Percentage mark-ups
c)
What the market will bear
d)
Recommended retail price
12.
Which of the following statements would be an advantage of using equity finance?
a)
There are taxation advantages.
b)
Regular payments have to be made.
c)
There is less risk for the business owner.
d)
The owner does not have to sell ownership of the business.
13.
Which of the following is an operating cost?
a)
Stock
b)
Legal fees
c)
Fixtures and fittings
d)
Electricity costs
14.
Monica owns a real estate agency. She decided to purchase a property and then resold it six months later. What type of tax would Monica be liable to pay?
a)
Group tax
b)
Capital gains tax
c)
Fringe benefits tax
d)
Goods and services tax
15.
John owns a hairdressing salon. His employees are very skilled and qualified. What would this factor be classified as?
a)
Strength
b)
Opportunity
c)
Threat
d)
Weakness
16.
Michelle is starting her own small business and writes down what she expects to achieve in her first year of operation. What would this best be described as?
a)
Goal
b)
Mission
c)
Objective
d)
Vision
17.
Elizabeth is a supervisor of a large company. She holds a team meeting each week where she communicates to her staff what their goal for that week is. What is this an example of?
a)
Vision
b)
Strategic goal
c)
Tactical objective
d)
Operational objective
18.
Which of the following are the three types of business goals?
a)
Financial, social and personal
b)
Vision, mission and objectives
c)
Strategic, operational and tactical
d)
Increase market share, increase profit and increase share price
19.
Which of the following would not be a financial goal of a business?
a)
Increase market share
b)
To open up 10 new stores
c)
To diversify into new markets
d)
To provide employment to the local community
20.
What is the formula to calculate total revenue?
a)
Price × Quantity
b)
Price – Quantity
c)
Total cost × Quantity
d)
Fixed costs + Variable costs
21.
Domenic is a carpenter. He decides to make bookshelves and sell them at the market. He decides to price the bookshelves at $230. His fixed costs come to $1000 and the variable costs are $130 per bookshelf. How many bookshelves does Domenic need to sell to break even?
a)
0.1
b)
2.7
c)
20
d)
10
22.
Marc owns a computer store. Which of the following would not be a fixed cost?
a)
Rent
b)
Delivery
c)
Telephone
d)
Interest on loan
23.
Which of the following is not an advantage of using an external recruitment company?
a)
The recruitment agency has specialist skills in this area.
b)
Recruitment agencies do not charge a lot for their services.
c)
It decreases the time businesses need to spend when recruiting future employees.
d)
Recruitment agencies use a variety of methods to find the most suitable employee.
24.
Which of the following statements best defines a skills audit?
a)
An agency that assesses a business in relation to their employee’s skills
b)
A database containing information on the skills, abilities, and qualifications of existing staff
c)
A process that establishes the current skills levels of employees and future skills requirements
d)
A process of investigating changes over time in relation to employee skills and looking for a pattern to predict the future
25.
Which of these statements is false in relation to team work?
a)
Teams can make more informed and creative decisions.
b)
Teams are replacing individuals as the basic building blocks of businesses.
c)
It can cost the business money and time to build effective teams.
d)
There is less potential for internal conflict when businesses use a team approach.
26.
Which of the following would not lead to a competitive advantage?
a)
If a business decided to open a new store in another area
b)
If a business was able to lobby the government to limit foreign competition
c)
If a business developed a product that was of superior quality than their competitors
d)
If a business moved their manufacturing plant overseas to take advantage of lower labour costs
27.
Which of the following would be an example of e-commerce?
a)
A business uses the internet to pay their accounts.
b)
A business uses the internet to purchase their raw materials online.
c)
A business uses the internet to market their goods and services.
d)
A business has set up an e-mail account to enable them to communicate with their customers and suppliers.
28.
Which of the following economic conditions would be experienced in a recession?
a)
Increased production
b)
Rising unemployment
c)
Increase in sales and profits
d)
High levels of consumer spending
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