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Business Studies Summer Assessment 2nd Year

Total questions: 39

Worksheet time: 44mins

Name
Class
Date
1.

A target market is a group of _______ that the _______ has decided to aim its marketing efforts and ultimately its merchandise towards.

a)

Companies, Business

b)

Companies, Research

c)

Customers, Business

d)

Business, Customers

2.

What is a business plan?

a)

Written document that only outlines the business practices of the new business.

b)

Written document that describes the financial aspects of the business.

c)

Written document that only describes the ownership of the business.

d)

Written document that describes all the steps necessary for opening and operating a successful business.

3.

Why do you need a business plan?

a)

To explain your idea

b)

the ability to get financing.

c)

it's a road map that sets objectives and goals for the business

d)

All of the above

4.

An entrepreneur is creating a business plan for a new business ; they are including a section on sources of finance. Which of these are appropriate sources of finance to suggest? (Suggest as many as are appropriate)

a)

Grant

b)

Retained profit

c)

Owners' savings

d)

Bank loan

5.
This part of a business plan shows the knowledge of the industry and includes statistics on marketing data for the companies products/services, and evaluates competition
a)
Executive Summary
b)
Company Description
c)
Strategy
d)
Market Analysis
6.

A creative ________, he was continually dreaming up new projects.

a)

trader

b)

merchant

c)

entreprenuer

d)

seller

7.
Which of the following is the definition for Franchise
a)
business investment that involves renting or leasing another successful business model
b)
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
c)
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
d)
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
8.

Which of the following is a disadvantage of being a "Sole Trader?"

a)

it is easy to start

b)

the owner is personally and fully responsible for all losses and debts of the business. If the business fails, the owner’s personal possessions may be taken away to satisfy business debts.

c)

requires a partner

d)

it is easy to raise the financial capital to start

9.

What is the name of a person who owns part of a business?

a)

Stakeholder

b)

Shareholder

c)

Trust Agent

d)

Chairman

10.
McDonald's and Burger King are examples of....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
11.

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

a)

Partnership

b)

Sole Trader

c)

Corporation

d)

Franchise

12.
Which business has the slogan "I'm lovin' it"?
a)
Burger King
b)
McDonalds
c)
Subway
d)
KFC
13.
An entrepreneur is someone 
a)
Someone who works for a new business
b)
Someone who starts a new business
c)
Someone who takes over an existing business
d)
Someone who does not want to work
14.
An entrepreneur must know...
a)
Only the parts of the business they like
b)
No parts of the business management
c)
all parts of business:  finance, marketing, etc.
15.
Name one of the reasons people become entrepreneurs.
a)
Feeling insecure
b)
They like to be the ONLY one doing everything
c)
They are doing what they enjoy
16.
An entrepreneur must be...
a)
disorganized
b)
organized
c)
lazy
17.
An entrepreneur can own an online business...
a)
False - entrepreneurs can only create business in person
b)
True - there are companies online as well as in person
18.

What is Field Research?

a)

Field Research involves gathering new data that has not been collected before. For example, surveys using questionnaires or interviews with groups of people in a focus group.

b)

Field Research involves gathering existing data that has already been produced. For example, researching newspapers

c)

Field Research involves gathering existing data that has already been produced. For example, researching the internet

d)

Field Research involves gathering existing data that has already been produced. For example, researching company reports.

19.

What is Desk Research?

a)

involves gathering new data that has not been collected before. For example, surveys using questionnaires or interviews with groups of people in a focus group.

b)

involves gathering existing data that has already been produced. For example, researching the internet, newspapers and company reports.

20.
How can a business reduce the risk of failure?
a)
By selling less products
b)
By keeping the cost of their products low
c)
By carrying out market research
d)
By staying open late.
21.
What are the 4 p's of marketing?
a)
price, product, promotion, place
b)
price, person, promotion, place
c)
place, perspective, promotion, place
22.
Groups of people form consumer cooperatives to 
a)
purchase goods and services more cheaply than they could as individuals
b)
reduce the amount of property taxes that each member must pay
c)
generate a profit for each member of the group
d)
increase their political power in their community
23.

Complete the sentence: A business plan...

a)

is useful once your business is operational but not much help during the startup phase

b)

is not usually needed once the business is up and running

c)

can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.

24.

What can a business sell?

a)

goods

b)

services

c)

goods and services

25.

Which of the following best describes the term limited liability? If the business fails:

a)

Personal possessions of the owner can be taken to pay any debts

b)

The owner only loses the amount invested in the business

26.

What are the owners of private and public limited companies called?

a)

Stakeholders

b)

Managers

c)

Board of directors

d)

Shareholders

27.

Which of the following is a drawback for an entrepreneur setting up a business as a sole trader?

a)

Profit is shared

b)

Financial accounts are kept private

c)

Limited liability

d)

Unlimited liability

28.

Which of the following is an advantage of operating a large established business as a public limited company?

a)

Shares can be sold to the public to raise additional finance

b)

Financial accounts are published

29.

What does the Finance Department not do?

a)

Forecasting cash flow.

b)

Producing accounting information for managers.

c)

Hold Annual General Meetings.

d)

Take important decisions on finance.

30.
What is asset?
a)
An item of property owned by a person or company
b)
An item owned by a business that lasts for several years.
31.

Which of the following is NOT usually considered a personal source of finance.

a)

Savings

b)

Overdraft

c)

Crowdfunding

32.

An amount of money that is paid back within an agreed amount of time, with interest

a)

Bank loan

b)

Retained profit

c)

Overdraft

33.

Which of the following statements about bank loans is not true?

a)

Usually used for large amounts of money that need to be paid back over a longer time-frame

b)

Interest rates make the loan more expensive

c)

Easy to get

d)

Usually cheaper than consistently using a bank overdraft

34.

A short-term source of finance from a bank that usually is only used in an emergency/when needed

a)

Overdraft

b)

Loan

c)

Share capital

d)

Credit card

35.

Case study: Apple plans to develop a prototype for an iPhones with a flexible display. Which of the following sources of finance would be most appropriate?

a)

Retained profits

b)

Selling shares

c)

Crowdfunding

d)

Bank loan

36.

What is an advantage of an overdraft?

a)

There is never interest

b)

You can pay in smaller installments

c)

Useful for relatively small sums and short term finance

d)

You don't have to pay it back

37.

What type of finance involves less profit going to the owners?

a)

Retained profit

b)

Sale of assets

c)

Overdraft

d)

Bank loan

38.

Short Term sources of finance usually require money to be repaid within.....

a)

1 week

b)

1 month

c)

1 year

39.

Which of the following would be the most appropriate source of funds for a new business (which is just launching) that makes mobile phone accessories?

a)

Retained Profit

b)

Sale of Assets

c)

Share Capital

d)

Trade Credit