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WorksheetsBusiness Chapter 1 Review
Total questions: 55
Worksheet time: 9mins
Which of these products is designed to meet a customer need?
Potato crisps
Cricket bat
Bread
Smartphone
Which of the following is a business stakeholder?
Lawyer
Tax collector
Customer
Police officer
Which of the following business activities is a service?
House construction
Dental treatment
Coconut farming
Gold mining
An example of a producer good is?
Tractor
Newspaper
Package holiday
Meal at a restaurant
Which of the following is a non-financial business objective?
Increase market share
Independence and control
Profit maximisation
Survival
Which of the following is a financial business objective?
Improve customer service
Independence and control
Sales growth
Improve social responsibility
Which of the following might cause business objectives to change over time?
Technological development
A rise in the price of shares
Following the introduction of a new accounting system
A change in weather patterns
Which of the following is likely to be an objective of a public sector organisation?
Increase profit by 5% in the next financial year
Survival
Increase revenue by 20% over a three year period
Improve the quality of customer service
Which of the following is an advantage of a sole trader?
Limited liability
More capital can be raised than a partnership
Unlimited liability
Independence for owners
Having a clear social and/or environmental mission is a feature of which business structure?
Franchise
Sole trader
Social enterprise
Partnership
A fast method of growth is a key advantage for which business structure?
Franchisor
Partnership
Franchisee
Social enterprise
Taking risk in business is a key role of which of the following?
Accountant
Entrepreneur
Company director
Marketing manager
Which document would be issued to a limited company giving it permission to trade?
Memorandum of association
Articles of association
Certificate of incorporation
Prospectus
Which item of information would be contained in the memorandum of association?
Rights of shareholders
Name of the company
Price of the shares to be issued
Procedures for appointing directors
Selling shares to the public for the first time to raise capital for a company is called:
Flotation
Prospectus
Joint venture
Venture capital
Which of the following is a disadvantage of a private limited company?
Shareholders have limited liability
Owners have to share the profits with "outsiders"
It can take time to transfer shares to a new owner
Control could be lost to outsider
An industry where efficiency is improved if there is just one operator is which of the following?
Segmented industry
Saturated industry
Natural monopoly
Oligopoly
Which of the following is a feature of a public corporation?
It is owned by the board of directors
It is funded by the government
It aims to maximise profits
It is not accountable to anyone
The transfer of public sector resources to the private sector is called what?
Nationalisation
Rationalisation
Segmentation
Privatisation
Which of the following is a reason against the public ownership of a business?
Public corporations may be too large and difficult to control
Public corporations cannot raise enough funding
The government cannot employ business people
Public corporations cannot employ overseas employees
Which of the following business activities is likely to be operated by a sole trader?
Motor car manufacturer
Chemical processing
Banking
Gardening service
What is the most appropriate form for a multinational operator?
Partnership
Public corporation
Public limited company
Social enterprise
What is an appropriate form of business for a self-employed taxi driver?
Multinational
Public limited company
Sole trader
Cooperative
Which of the following is most likely to affect the appropriateness of a particular form of business?
The rate of inflation in the economy
Geographical location
The financial risk owners are prepared to take
The views of employees
Gold mining in South Africa is an example of business activity in which sector>
Primary sector
Secondary sector
Tertiary sector
Non of the above
Which of the following business operate in the secondary sector?
Santander bank
Qatar airways
Ford motor company
McDonald's
Which of the following countries has most likely seen the sharpest decline in employment in the primary sector in the last 50 years?
USA
Uganda
Bangladesh
Chad
An area of ground that was once used for urban development is called?
Brownfield site
Enterprise zone
Science park
Greenfield site
Which of the following factors is likely to be most important when choosing a location for a supermarket?
Proximity to suppliers
Low-cost land
Exchange rate
Energy costs
Which of the following businesses is likely to have the most choice when deciding upon a suitable location to base their operations?
Coal-burning power station
Diamond mine
High street fashion retailer
An online tutor service
Which of the following is a likely reason for the manufacturer to relocate its business?
To provide space for expansion
To set up an online operation
To avoid higher interest payments
To avoid having to market its products
Which is a reason for increasing globalisation?
Lower exchange rates
Decreased regulation, such as privatisation
An increase in environmental legislation
An increase in the world's population
Which of the following is a feature of globalisation?
The free flow of goods and services across international borders
Rising unemployment in the EU
Higher rates of inflation in Africa
Greater standardisation of goods and services
Which of the following is an opportunity for businesses that might result from Globalisation?
Lower costs resulting from economies of scale
Protection from international takeovers
Lower levels of inflation
An improvement in product quality
Which of the following might be a threat to businesses that could result from globalisation?
Lower interest rates
Increased competition
More health and safety legislation
A lack of diversification opportunities
Which of the following is an example of visible trade?
Banking products
Manufactured aircraft components
Tourism
Training services
Which of the following is an example of invisible trade?
Insurance
Machinery
Coal
Electronic components
If US$1.00 = €1.20, the cost in euros to a German business buying US$6,700,000 of goods from the USA will be?
€6,700,000
€5,583,333
€8,040,000
€1,200,000
Which of the following will improve the international competitiveness of a country?
A sustained rise in the exchange rate
A sustained fall in the interest rates
Higher rates of inflation in that country
A sustained fall in the exchange rates
Which of the following is a tared barrier?
Interest rates
VAT
Corporation tax
Tariff
Which of these effects are likely to result from lower interest rates?
Savings will increase
Inflation will fall
Consumer spending may rise
Less business investment
Which of these measures might help a company manufacturing power boats?
Lower levels of corporation tax
Higher VAT
Higher income tax
Higher interest rates
Which of the following is likely to rise when taxation is decreased?
Unemployment
Business investment
Average costs
Tariffs
Which of these external factors is likely to help reduce production costs?
Social
Political
Environmental
Technological
Which of the following is a possible social factor that might affect a business?
Attitude toward saving
Industrial action by employees
Global warming
The development of water powered cars
The formation of a pressure group campaigning for manufacturers to use less sugar in products is an example of which type of factor?
Technological
Environmental
Ethical
Political
A rise in the number of retired people making themselves available for work is an example of what factor?
Political
Environmental
Social
Human
Which of the following is most likely to be used by shareholders to measure the success of a business?
Revenue
Dividend growth
The quality of customer service
Social impact
Which of the following might be used by a business to help measure customer satisfaction?
Online survey
Labour turnover
Sales forecast
Cash flow forecast statement
Employees might measure the success of a business by looking at what?
Dividend growth
Turnover
Job security
Net profit margin
What must be taken into account when using profit to measure the success of a business?
Labour productivity
The location of the business
Product mix
The size of the business
Which of the following is a possible cause for business failure owing to ineffective marketing?
Charging a price that is too high
Investing too much in fixed assets
Over borrowing
Relocating production to a country where wages are lower
What term describes a business that begins trading with insufficient capital?
Overtrading
Undercapitalised
Overdrawn
Insolvent
Which of the following is most likely to cause a cash flow problem?
Obtaining a bank overdraft
Investing too little in innovation
Spending too much on expensive fixed assets
A weak marketing strategy
Overtrading might occur if a business tries to do which of the following?
Expand too quickly
Take over a rival
Sell in overseas markets
Outsource production
