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20 Firms

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

This sector contains firms that manufacture goods, constructions and changing raw materials into finished products.

a)

Primary Sector

b)

Secondary Sector

c)

Tertiary Sector

d)

Quaternary Sector

2.

____________ means that the three sectors of industry depend on each other and cannot operate alone to produce goods and services.

a)

Intercultural

b)

International

c)

Interdependence

d)

Intersectoral

3.

It refers to economic activity owned by private individuals and firms.

a)

Private Sector

b)

Public Sector

c)

Sole Trader

d)

Partnership

4.

It is a business owned by shareholders, who are unable to buy or sell shares without the consent of other shareholders.

a)

Sole Trader

b)

Partnership

c)

Private Limited Company

d)

Public Limited Company

5.

Which of the following statement is the aims of public sector.

a)

To earn profits for its owners.

b)

To embargo the local products.

c)

To provide service.

d)

To dismantle trade unions.

6.

Which of the following is not a measure of relative size of firms.

a)

market share

b)

market capitalisation of a firm

c)

number of employees

d)

market place

7.

It is an increase in the size of a firm resulting from it enlarging existing plants or opening new ones.

a)

internal growth

b)

external growth

c)

franchise

d)

merger

8.

It occurs when two or more firms join together to form just one firm.

a)

merger

b)

demerger

c)

franchise

d)

takeover

9.

It occurs when two or more firms from unrelated areas of business integrate to create a new firm.

a)

horizontal merger

b)

backward vertical merger

c)

forward vertical merger

d)

conglomerate merger

10.

__________ are the cost-saving benefits of large scale operations which reduce average costs of production.

a)

Economies of scale

b)

Diseconomies of scale

c)

Internal Economies of scale

d)

External Economies of scale

11.

What is most likely to be supplied by small firms?

a)

Banking

b)

Film production

c)

Shoe repair

d)

Steel

12.

A toy manufacturer merges with chemical company. What type of merger is this?

a)

Conglomerate

b)

Horizontal

c)

Vertical Merger Backwards

d)

Vertical Merger Forwards

13.

What is meant by financial economies of scale?

a)

Lower average costs experienced by large banks and other financial institutions.

b)

Lower average costs arising from a large operating its finance department more efficiently

c)

Lower average costs due to the ability of large firms to borrow more cheaply

d)

Lower average costs occurring because of the use of larger capital equipment.

14.

What occurs when firms expand using their own resources?

a)

Internal Growth

b)

External Growth

c)

Internal Economies of scale

d)

External Economies of scale

15.

Which option is an external economy of scale?

a)

availability of skilled labour

b)

bulk buying

c)

financial

d)

risk-bearing