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WorksheetsHigher BM - Understanding Business
Total questions: 31
Worksheet time: 16mins
The four sectors of industry are...
Primary, Secondary, Third, Voluntary
Primary, Tertiary, Third, Secondary
Secondary, Tertiary, Primary, Quaternary
Quaternary, Tertiary, Voluntary, Secondary
The three sectors of the economy are...
Primary, Secondary, Tertiary
Private, Voluntary, Secondary
Public, Secondary, Third
Private, Public, Third
3 businesses within the private sector are...
Sole Traders
Private Limited Companies
Government Organisations
Multinationals
3 businesses within the public sector are...
National Government Organisations
Local Government Organisations
Social Enterprises
Agencies
3 businesses within the third sector are...
Franchises
Social Enterprises
Charities
Clubs
A 'franchiser' is...
A person who invests large amounts of capital into growing a business
A person who sells a business to someone else
A person who pays a percentage of profit each year to own a business under someone else's name
A person who starts a business and provides a good/service supplied by another business
A 'multinational' is...
An organisation that is funded by Government grants
An organisation that operates in more than one country
An organisation that has more than one store in one country
An organisation that expands within the same country
2 advantages of being a multinational organisation are...
Legal restrictions can be avoided in other countries compared to the home country
The culture might vary from one country to another and the organisation will need to consider this
Language barriers may make trading more difficult and expensive
Expanding abroad means the organisation will become bigger, increasing sales
Which of the following 2 statements about the public sector are true?
Public Sector organisations aim to make as much profit as possible
Public Sector organisations are owned by the Government on behalf of the taxpayer
Public Sector organisations are funded by taxes that individuals and businesses have to pay
Public Sector organisations aim to achieve as much sales as possible
CSR stands for...
Caring Socially Responsibly
Company Social Responsibility
Corporate Social Responsibility
Company Set Rules
2 ways an organisation can be socially responsible is by...
Recycling as much as possible
Expanding into new markets
Trying to reduce its carbon footprint as much as possible
Giving employees longer working hours
Choose 2.
Businesses might aim to grow to...
Increase the number of customers which will increase profits and market share
To take advantage of economies of scale, thereby reducing costs
To decrease the return on investment for owners
Which of the following are methods of growth?
Merger
Investment
Diversification
Forward Vertical Integration
Backward vertical integration means...
Taking over a supplier
Taking over a customer
Forward vertical integration means...
Taking over a supplier
Taking over a customer
Diversification means...
When a business splits into 2 or more separate businesses
When 1 business introduces different goods and services different to their original business idea
When 2 businesses that provide different goods and services join together
When a business sells off some of its assets to raise finance
Divestment means...
When a large business takes ownership and control of a smaller one
When 2 businesses approximately the same size join together
When a business sells off some of its assets or smaller parts of the business to raise finance
A merger is when...
2 businesses who trade in the same market join together
2 businesses of approximately the same size join together
2 businesses providing the same service join together
A PLC is controlled by
Shareholders
Board of Directors
Managers
Family and Friends
External Factors are
Political, Economic, Social, Technological, Environmental, Competitive
Political, Ergonomic, Social, Technological, Environmental, Competitive
Police, Economic, Standard, Technological, Expected, Corporate
Public, Expected, Standards, Technical, Electronic, Corporate
The following disadvantage: Profits have to be split with many shareholders by issuing dividends is associated with which type of organisation?
Sole Trader
Charity
Social Enterprise
LTD
Due to reduced competition, the new larger business can raise prices = increasing profits is an advantage for ...
Horizontal Integration
Lateral Integration
Backwards Vertical Integration
Conglomerate Integration
'Customers gain a sense of a high quality product/service' is an advantage of what Internal Factor?
Staff
Technology
Corporate Culture
Finance
‘Specialists from different areas work together to carry out a specific project’ is a feature of what type of structure?
Entrepreneurial Structure
Matrix Structure
Hierarchical Structure
What type of structure is shown above?
Flat Structure
Tall Structure
Matrix Structure
Entrepreneurial Structure
If a business is looking to save money, what could they do with their business structure?
De-merger
Delayering
Deintegration
