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Business 2.1

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Which of these is the correct definition for business growth

a)

The process of a firm getting smaller

b)

The process of a firm getting bigger

c)

The process of a firm gaining customers

d)

The process of a firm increasing sales price

2.

Which of these aren't external ways of expanding a business

a)

Takeover

b)

Opening new outlets

c)

Merger

d)

Expanding overseas

3.

Which of these are factors that can affect growth

a)

Size of a business

b)

Competitors

c)

Position in the market

d)

Financial position of the business

4.

True or false? 'Involves expansion from within a business, for example by expanding the product range or number of business units and locations' is the definition for internal growth

a)

True

b)

False

5.

Which of these are internal growth strategies

a)

Being merged with another business

b)

Developing new product ranges

c)

Launching existing products directly into new international markets

d)

Opening new business locations

6.

True or false? External growth is when one business joins with another business by a merger or takeover and is achieved through integration

a)

False

b)

True

7.

Which of these is a benefit of a merger

a)

Can include reduce costs and increased revenue

b)

Can provide access to new markets suppliers, technology

8.

Which of these isn't an advantage of a PLC

a)

Can raise large sums of money

b)

Limited liability

c)

Firm is more prestigious

d)

Risk of the company being taken over

9.

Which of these cause changes in business objectives

a)

Internal reasons

b)

Market conditions

c)

Competitors

d)

Technology

e)

Legislation

10.

Which of these are the benefits of Globalisation

a)

Increased markets

b)

Access to cheaper labour and cheaper raw materials

c)

Higher costs

d)

International specialisation

11.

Which of these are drawbacks of Globalisation

a)

International competitors with cheaper costs

b)

Whole industry closures

c)

Effects of events in other countries

d)

Increased level of efficiency

12.

True or False? Imports are goods or services brought into one country from another.

a)

False

b)

True

13.

True or False? Exports arise as a function of international trade, whereby good and services produced by one country and sold to another

a)

False

b)

True

14.

Which of these are barriers to international trade

a)

The Police

b)

Trade Blocs

c)

Tariffs

d)

Quotas

15.

Which are some effects of barriers to trade

a)

They protect jobs

b)

They stop the entry of any harmful or undesirable goods

c)

They increase costs

d)

They increase demand for domestic goods

16.

True or False? Quotas are limits to the volume or value of specific imports allowed into a country in a given time period

a)

True

b)

False

17.

True or False? A tariff is a tax on goods coming into the country from abroad. They are implemented by a government wishing to boost demand for demand from the home country

a)

False

b)

True

18.

True or False? A trading bloc is a group of countries in specific regions that manage and promote trade activities.

a)

True

b)

False

19.

True or False? Ethics is where businesses make decisions based on what morally right rather than what is more profitable

a)

True

b)

False

20.

Which of these are benefits of behaving ethically

a)

Higher costs

b)

Easier to attract and recruit staff

c)

Higher revenues

d)

Improved brand/business awareness and recognition