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Higher BM - Understanding Business

Total questions: 31

Worksheet time: 16mins

Name
Class
Date
1.

The four sectors of industry are...

a)

Primary, Secondary, Third, Voluntary

b)

Primary, Tertiary, Third, Secondary

c)

Secondary, Tertiary, Primary, Quaternary

d)

Quaternary, Tertiary, Voluntary, Secondary

2.

The three sectors of the economy are...

a)

Primary, Secondary, Tertiary

b)

Private, Voluntary, Secondary

c)

Public, Secondary, Third

d)

Private, Public, Third

3.

3 businesses within the private sector are...

a)

Sole Traders

b)

Private Limited Companies

c)

Government Organisations

d)

Multinationals

4.

3 businesses within the public sector are...

a)

National Government Organisations

b)

Local Government Organisations

c)

Social Enterprises

d)

Agencies

5.

3 businesses within the third sector are...

a)

Franchises

b)

Social Enterprises

c)

Charities

d)

Clubs

6.

A 'franchiser' is...

a)

A person who invests large amounts of capital into growing a business

b)

A person who sells a business to someone else

c)

A person who pays a percentage of profit each year to own a business under someone else's name

d)

A person who starts a business and provides a good/service supplied by another business

7.

A 'multinational' is...

a)

An organisation that is funded by Government grants

b)

An organisation that operates in more than one country

c)

An organisation that has more than one store in one country

d)

An organisation that expands within the same country

8.

2 advantages of being a multinational organisation are...

a)

Legal restrictions can be avoided in other countries compared to the home country

b)

The culture might vary from one country to another and the organisation will need to consider this

c)

Language barriers may make trading more difficult and expensive

d)

Expanding abroad means the organisation will become bigger, increasing sales

9.

Which of the following 2 statements about the public sector are true?

a)

Public Sector organisations aim to make as much profit as possible

b)

Public Sector organisations are owned by the Government on behalf of the taxpayer

c)

Public Sector organisations are funded by taxes that individuals and businesses have to pay

d)

Public Sector organisations aim to achieve as much sales as possible

10.

CSR stands for...

a)

Caring Socially Responsibly

b)

Company Social Responsibility

c)

Corporate Social Responsibility

d)

Company Set Rules

11.

2 ways an organisation can be socially responsible is by...

a)

Recycling as much as possible

b)

Expanding into new markets

c)

Trying to reduce its carbon footprint as much as possible

d)

Giving employees longer working hours

12.

Choose 2.

Businesses might aim to grow to...

a)

Increase the number of customers which will increase profits and market share

b)

To take advantage of economies of scale, thereby reducing costs

c)

To decrease the return on investment for owners

13.

Which of the following are methods of growth?

a)

Merger

b)

Investment

c)

Diversification

d)

Forward Vertical Integration

14.

Backward vertical integration means...

a)

Taking over a supplier

b)

Taking over a customer

15.

Forward vertical integration means...

a)

Taking over a supplier

b)

Taking over a customer

16.

Diversification means...

a)

When a business splits into 2 or more separate businesses

b)

When 1 business introduces different goods and services different to their original business idea

c)

When 2 businesses that provide different goods and services join together

d)

When a business sells off some of its assets to raise finance

17.

Divestment means...

a)

When a large business takes ownership and control of a smaller one

b)

When 2 businesses approximately the same size join together

c)

When a business sells off some of its assets or smaller parts of the business to raise finance

18.

A merger is when...

a)

2 businesses who trade in the same market join together

b)

2 businesses of approximately the same size join together

c)

2 businesses providing the same service join together

19.

A PLC is controlled by

a)

Shareholders

b)

Board of Directors

c)

Managers

d)

Family and Friends

20.

External Factors are

a)

Political, Economic, Social, Technological, Environmental, Competitive

b)

Political, Ergonomic, Social, Technological, Environmental, Competitive

c)

Police, Economic, Standard, Technological, Expected, Corporate

d)

Public, Expected, Standards, Technical, Electronic, Corporate

21.
Functional grouping means
a)
Grouping by department areas
b)
Grouping by location
c)
Grouping by products which are sold
22.
The Span of Control is . . .
a)
How instructions are passed down through an organisation
b)
Giving responsibility and authority to an employee
c)
The number of subordinates (people) who report to 1 manager
23.
What is a matrix structure?
a)
The top level of management
b)
Formed when a specific task or project is to be carried out.
24.
Removing layers of management from an organisation structure is an example of . . . 
a)
Downsizing
b)
Delayering
25.
Henry Fayol created the functions of a manager, what are they?
a)
Planning, Organising, Motivating and Co-Ordinating
b)
Planning, Organising, Controlling and Delegating
c)
Planning, Organising, Commanding, Co-Ordinating, Controlling, Delegating & Motivating
26.

The following disadvantage: Profits have to be split with many shareholders by issuing dividends is associated with which type of organisation?

a)

Sole Trader

b)

Charity

c)

Social Enterprise

d)

LTD

27.

Due to reduced competition, the new larger business can raise prices = increasing profits is an advantage for ...

a)

Horizontal Integration

b)

Lateral Integration

c)

Backwards Vertical Integration

d)

Conglomerate Integration

28.

'Customers gain a sense of a high quality product/service' is an advantage of what Internal Factor?

a)

Staff

b)

Technology

c)

Corporate Culture

d)

Finance

29.

‘Specialists from different areas work together to carry out a specific project’ is a feature of what type of structure?

a)

Entrepreneurial Structure

b)

Matrix Structure

c)

Hierarchical Structure

30.

What type of structure is shown above?

a)

Flat Structure

b)

Tall Structure

c)

Matrix Structure

d)

Entrepreneurial Structure

31.

If a business is looking to save money, what could they do with their business structure?

a)

De-merger

b)

Delayering

c)

Deintegration