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Business - Unit 1 Exam Revision

Total questions: 46

Worksheet time: 36mins

Name
Class
Date
1.

A sole trader is the simplest form of legal ownership.

a)

True

b)

False

2.

There are 3 types of environments which impact a business.

a)

False

b)

True

3.

STEEPLE analysis stands for

a)

social, technological, economic, environmental, political, legal & ethical

b)

social, technological, economic, environmental, political, loyalty & ethical

c)

Social, terminology, ethical, equality, policy, legal & economy

d)

ethical

e)

personal

4.

A vision and mission statement are part of the strategic planning process.

a)

True

b)

False

5.

A partnership has between

a)

a. 1 - 2 owners

b)

b. 2 - 20 owners

c)

c. 2 - 50 owners

d)

d. Both B and C

6.

Which environment does a business have some degree of control over:

a)

External environment

b)

Macro Environment

c)

Internal Environment

7.

A government owned corporation can be defined as

a)

A. a commonwealth entity including Australia Post, Snowy Hydro and Defence housing Australia.

b)

B. Established by Government in response to a need in the community.

c)

C. Owns commercial businesses in energy, water, rail & ports.

d)

D. Providing a service and product with an aim of making a profit whereby profits are distributed to owner/s or shareholders.

e)

E. Both B & C.

8.

The business life cycle consists of 5 stages.

a)

False

b)

True

9.

The internal business environment consists of

a)

Organisational culture

b)

Owner/s and management

c)

Employees

d)

Organisational structure

e)

All of the above

10.

A profit based business provides services and products to customers and profits are distributed to owner/s or shareholders.

a)

True

b)

False

11.

The four types of businesses include:

a)

Profit based

b)

Not-for profit

c)

Government owned corporations

d)

Government business enterprises

e)

All of the above

12.

The micro external business environment factors include:

a)

Owners, management, employees and customers

b)

Social, ethical, interest groups, suppliers and competitors

c)

Organisational culture, owners, management, employees and organisational structure

d)

Customers, interest groups, suppliers & competitors

13.

Some advantages of being a sole trader include

a)

The owner receiving all profits

b)

Simplest form of ownership with low start up costs

c)

Finances are limited to the owner's financial situation

d)

Unlimited liability

e)

All of the above

14.

Business goals are statements:

a)

of intention that provide direction for achieving a goal. E.g. to improve skills in customer service

b)

of direction that identify what a business wants to achieve. E.g. to provide training to all staff

15.

Business goals include:

a)

profitability, growth, customer service, market share & retention of employees

b)

profitability, being a monopoly, eliminating all competition, hiring new employees often to refresh the organisation's culture

c)

Both of the above answers

16.

Business objectives can be defined as:

a)

a statement of intention that provide direction for achieving a goal

b)

a statement of direction that identifies what a business wants to achieve

17.

Strategic planning involves 3 key stages - vision and mission statements, goals and objectives and strategies and tactics.

a)

True

b)

False

18.

SWOT stands for

a)

Strengths, weaknesses, opportunities & tactics

b)

Strategies, weaknesses opportunities & threats

c)

Strengths, weaknesses, opportunities & threats

19.

Are the following characteristics disadvantages of a partnership?

  • owners are responsible for all debts (unlimited liability)
  • possible conflict between partners
  • profits to be shared
  • change in structure can be difficult
a)

Yes

b)

No

20.

For a business to make a profit the amount of revenue earnt must exceed the expenses of the business.

a)

True

b)

False

21.

Market share:

a)

Is critical success factor for the continuation of a business in a competitive business environment.

b)

a strong market share indicates a business leader in the industry.

c)

Is the percentage of the industry that a business controls.

d)

None of the above.

22.

Reducing operating costs by 10% in 18 months is a ___________ business goal.

a)

growth

b)

market share

c)

profitability

d)

societal needs & wants

e)

sustainability

23.

Identifying and understanding customer needs and wants is a ___________________ business goal.

a)

growth

b)

profitability

c)

employment

d)

societal needs and wants

e)

sustainability

24.

Strengths & weaknesses examine the

a)

internal business environment

b)

external business environment

25.

Improve the employee skills in retail service is a ________________ business goal.

a)

profitability

b)

employment

c)

sustainability

26.

Smart goals are:

a)

Specific, measurable, achievable, realistic & timely

b)

Specific, measurable, attainable, reliable & timely

27.

Stakeholders can have an impact on the internal and external of a business.

a)

False

b)

True

28.

When you analyse you examine the parts of something in detail and how the relationship of the parts to each other; this may involve description, comparison, interpretation and critical comment.

a)

True

b)

False

29.

Identify all the stakeholders below:

a)

customers

b)

competitors

c)

suppliers

d)

interest groups

30.

Smart goals can:

a)

help a business grow

b)

achieve business aims

c)

improve collaboration and team work

d)

set a clear direction for the business

31.

New competition is a:

a)

strength

b)

opportunity

c)

weakness

d)

threat

32.

Choose the correct statements:

a)

businesses must gain loyalty from customers

b)

positive relationship = revenue and certainty

c)

high level of customer satisfaction = good reputation and profit

33.

A competitor can be defined as

a)

a business that provides resources that they need to operate

b)

any business that is in the same or similar industry and offers the same or similar product or service.

34.

The external operating environment includes:

a)

trade unions

b)

public interest groups

c)

suppliers

d)

professional associations

e)

customers

35.

Trade unions are concerned with:

a)

environmental protection, social justice and civil liberties

b)

protecting rights of members, negotiating working conditions, regulating relationships between employers and employees

c)

protecting and promoting a specific industry

36.

Organisational culture

a)

Refers to the shared values, beliefs, expectations, attitudes and behaviour of the people in the business.

b)

Determines how management and employees interact and deal with business situations.

c)

evolves over time.

d)

outlines the roles and responsibilities of each member of the business.

37.

Overseas demand for product is a:

a)

strength

b)

weakness

c)

opportunity

d)

threat

38.

Socio-cultural factors include:

a)

diversity in the workplace

b)

changes in family structures

c)

ageing population

d)

automation & research and development

39.

Falling number of customers within a specific age group is a:

a)

strength

b)

weakness

c)

opportunity

d)

threat

40.

Economic environmental factors include:

a)

climate change

b)

inflation

c)

waste disposal and recycling

d)

interest rates

e)

consumer confidence

41.

Environmental factors include:

a)

climate change

b)

power usage (fossil fuels)

c)

sustainability

d)

inflation

42.

a new market opened up is a:

a)

strength

b)

weakness

c)

opportunity

d)

threat

43.

Macro environment - legal factors include:

a)

taxes

b)

industry regulations

c)

health & safety law

d)

employment law

e)

consumer law

44.

A loyal customer base is a:

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

45.

Which items below are benefits of strategic planning

a)

establishes goals and objectives that are time framed

b)

provides a base measurement to evaluate progress

c)

creates cohesion within the business

d)

defines the purpose of the business

e)

develops a sense of ownership of the plan

46.

Expansion of a business to overseas is a:

a)

strength

b)

weakness

c)

opportunity

d)

threat