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WorksheetsUnderstanding Business
Total questions: 30
Worksheet time: 15mins
Businesses including farming, fishing, forestry & the extraction of natural resources e.g. oil, minerals etc.
Tertiary Sector
Primary Sector
Secondary Sector
The economic problem
Organisations run by central or local government are often referred to as
Private sector
Voluntary sector
Public sector
Mixed economy
Which of these is the best definition of the ‘economic problem’?
People do not have enough money.
There are not enough resources to satisfy people’s wants.
There are too many factors of production.
The amount of something produced by a person, machine or industry.
What is 'added value'?
is the next best alternative given up by choosing another item.
is the difference between the selling price of a product and the cost of bought-in materials and components.
It's a good or service essential for living.
is the lack of sufficient products to fulfil the total wants of the population.
Which of these business activities are usually NOT in the public (government) sector?
grocery stores
health
defence
public transport
In a Partnership, ownership and control of the business is shared between how many partners?
2 to 2,000
2 to 20
2 to 200
McDonald's is an example of a Franchise?
True
False
Which Sector of the Economy would Sole Traders, Partnerships and Private Limited Companies be found in?
Public
Private
Third
The abbreviation PESTEC is often used to define
Both internal and external factors that influence a business
Internal factors that influence a business
External factors that influence a business
More and more businesses are becoming active and involved in e-commerce. This is a result of
Technological factors
Environmental factors
Political factors
An employee's main interest in a large company is likely to be
Fair pay for the work they do
Profit maximisation
Ensure the organization does not damage the environment
Organisations run by central or local government are often referred to as
Private sector
Voluntary sector
Public sector
A business owned by one person is called a
Franchise
Sole trader
Small business
Business objectives are sometimes referred to as
Rules and procedures
Obstacles
Goals and targets
What is "internal growth"?
It occurs when a business takes over or merges with another business at the same stage of production.
It occurs when a business expand its internal operations.
It is the total value of capital used in a business.
It occurs when a business takes over or merges with another business in a completely different industry.
One business merges with or takes over another business in the same industry but at a different stage of production.
Horizontal integration
Conglomerate
Vertical integration
Scarcity
Which of these industries does NOT belong to the tertiary sector?
aircraft
banking
catering
insurance
When one business mergers with or takes over a business in a completely different industry.
Internal growth
Horizontal integration
Vertical backwards integration
Conglomerate integration
What is an 'entrepreneur'?
A person in charge of the business strategy.
A person who lends the funds to set up a new business venture.
A person who organises, operates and takes the risk of a new business venture.
A group of people in charge of creating the business plan of a new venture.
A clothing manufacturer buys a textile firm.
What type of business growth is it?
Backwards vertical acquisition
Forward vertical merger
Horizontal integration
Conglomerate
The process of transferring ownership of a business from the public sector (government) to the private sector.
Planned/Command economy
Nationalisation
Privatisation
De-industrialisation
Give a description of the Private Sector.
Owned by the government on behalf of the taxpayer.
Owned by private individuals who aim to make a profit.
Owned and regulated by the government and aim to raise funds and awareness
Owned by a sole trader
Outline ways a business can measure customer satisfaction.
Customer surveys
Provide high quality products
Train staff well
Online reviews
Identify the aims of a charity.
To make profit
To satisfy customers
To raise funds and awareness
To survive
This external factor looks at the trends and beliefs of the customer.
Political
Social
Economic
Competition
Identify an internal stakeholder.
Customer
Banks and lenders
Supplier
Employee
Give an influence of an employee.
They can shop elsewhere
They want job satisfaction and good working conditions
They can take industrial action e.g. strike
They can provide a poor service to the customer
Identify an internal factor of an organisation.
Political
Environmental
Technology
Competition
