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Management of Business Unit 1(sixth week test)

Total questions: 70

Worksheet time: 37mins

Name
Class
Date
1.

In which of the following levels of production would bottling water fall?

a)

Primary

b)

Tertiary

c)

Secondary

d)

Subsistence

2.

One function of a public limited company is that

a)

the shares are traded on the stock exchange

b)

all transactions are made public to the citizen

c)

all transactions are kept private from the citizen

d)

the owners of the factors of production keep the information

3.

A public limited company may decide to go private in order to

I. regain control of the business

II.eliminate the threat of takeover

III. raise additional finance to purchase new equipment

a)

I and II only

b)

I and III only

c)

II and III only

d)

I, II and III

4.

Which of the following is the lowest in the hierarchy of objectives?

a)

Tactical

b)

Strategic

c)

Corporate

d)

Decisional/ Operational

5.

Which of the following best explains unemployment to a country?

a)

A high efficient workforce

b)

An increased in foreign reserves

c)

Reduced demand for goods and services

d)

Increased costs for trade unions

6.

One advantage of Nationalization to a country is

a)

a more efficient public sector

b)

greater profits to the business

c)

better regulation of businesses

d)

greater emphasis on social development.

7.

A firm offering management services to its customers would be regarded as what level of business activity?

a)

Primary

b)

Tertiary

c)

Temporary

d)

Secondary

8.

Which of the following would NOT be regarded as a private- sector organisation?

a)

Franchise

b)

Public limited company

c)

Public corporation

d)

Partnership

9.

ALL of the following EXCEPT one outline the importance of objectives. Which is it?

a)

They give the employees a sense of direction as to where the business is going

b)

They function as a yardstick for tracking an organisation’s performance and progress

c)

They may be limited and take a long time to be achieved

d)

They are used in the decision-making process

10.

It is said that objectives should be SMART. Which one of the following is NOT a part of this acronym?

a)

Timely

b)

Separable

c)

Measurable

d)

Realistic

11.

Which business organisation has as a feature separate legal identity?

a)

Sole trader

b)

Company

c)

Partnershop

d)

Franchise

12.

ALL of the following are included in the articles of association, EXCEPT which one?

a)

The rights of the shareholders

b)

Procedures for meetings

c)

The process for transferring shares

d)

Details of the company’s capital

13.

A sixth-form student’s objective reads: ‘To achieve grade 1 in all my CAPE examinations’. Which type of objective is this?

a)

Medium-term

b)

Long-term

c)

Short-term

d)

None of the above

14.

Middle management deals with which of the following objectives?

a)

Corporate

b)

Tactical

c)

Strategic

d)

Operational

15.

A company that controls other companies but is not involved in their day-to-day operations is known as:

a)

Holding company

b)

Public company

c)

Associate company

d)

Conglomerate

16.

Burger King in the Caribbean would best be described as a:

a)

Sole trader

b)

Public corporation

c)

Franchise

d)

Cooperative

17.

A/An __________ defines the organisation’s purpose and direction.

a)

Aim

b)

Objective

c)

Goal

d)

Mission

18.

To sign up ten more people for health insurance in each quarter this year’ represents a/an __________

a)

Corporate objective

b)

Tactical objective

c)

Operational objective

d)

Strategic objective

19.

The process of government taking over enterprises that were in the private sector is known as:

a)

Globalisation

b)

Privatisation

c)

Nationalisation

d)

Liberalisation

20.

The following are reasons for nationalisation EXCEPT which one?

a)

To offer social benefits

b)

To crowd out investors

c)

To protect consumers

d)

To provide certain goods and services

21.

A firm is responsible to its shareholders in the following ways EXCEPT one. Which is it?

a)

To give fair returns on shareholders’ investment

b)

To keep them informed of the business’s performance

c)

To sell them more shares

d)

To protect their investment

22.

Which of the following would NOT be included in a discussion on ethical issues?

a)

Testing of products on animals

b)

Deceptive advertisement

c)

Evading taxes

d)

The use of child labour

23.

Which of the following is NOT a type of cooperative?

a)

Worker cooperative

b)

Owner cooperative

c)

Producer cooperative

d)

Consumer cooperative

24.

The government may privatise public corporations for the following reasons EXCEPT which one?

a)

To generate much-needed income

b)

To improve efficiency

c)

To lay off workers

d)

To encourage competition

25.

A firm Practices ethical behaviour when it

a)

recalls a specific batch of products because of flaws in a few

b)

Places more emphasis on social responsibilities over profits

c)

delays paying its supplier in order to improve its liquidity position

d)

pays large salaries to its executives during a redundancy exercise.

26.

A &. B Electronics is in the business of providing internet and cellular phone services.


In which of the following economic activities is A& B Electronics involved?

a)

Tertiary

b)

Primary

c)

Secondary

d)

Elementary

27.

A multi-national company will most likely be located in a country which has

a)

Limited services

b)

low taxation rates

c)

high employment

d)

limited access to raw material

28.

Which of the following factors is NOT a challenge of globalization to Caribbean firms?

a)

wider market access

b)

increased competition

c)

removal of protection policies

d)

conformity to international standards

29.

John wishes to start a business with branches in different countries, However, he has no advertising experience but needs quick business success. he also needs easily available sources of raw materials.


Which of the following types of business is best suited for John?

a)

Franchise

b)

Partnership

c)

Sole trader

d)

Multinational

30.

The benefits which many large firms enjoy over smaller firms are referred to as

a)

economies of scale

b)

economic wellness

c)

profit maximization

d)

goodwill of the firm

31.

One benefit of Multinational corporations to the host country is

a)

better knowledge of consumers taste

b)

increased foreign exchange earnings

c)

better access to local natural resources

d)

lower transportation costs for the finished product

32.

The term 'Technological obsolescence' refers to technology being

a)

outdated

b)

expensive

c)

ineffiecient

d)

inappropriate

33.

Ms.Clarke is concerned that although the new business plan promises that her business will be more profitable, the business would have a negative impact on the community. Which of the following BEST describes Ms.Clarke's concern?

a)

Legal

b)

Ethical

c)

Political

d)

Financial

34.

One benefit of a private limited company over a partnership is that

a)

shareholders can sell their shares on the stock market

b)

the private company is an unincorporated association

c)

shareholders have limited liability

d)

the private company can issue a prospectus to the general public

35.

Which of the following is a non-financial reward ?

a)

Gain sharing

b)

Job enrichment

c)

Lump-sum bonus

d)

Employee stock ownership plan

36.

In which of the following activities is the tertiary sector of economy engaged?

a)

harvesting

b)

providing services

c)

manufacturing

d)

extracting raw materials

37.

Singh's Engineering Company and Ram's Architectural firm have decide to work together on a government project to construct a bridge. This type of arrangement can be referred to as

a)

a franchise

b)

a co-operative

c)

a joint venture

d)

an unlimited company

38.

Which of the following statements represents and advantage of a franchise to a franchisee?

a)

Advertisement by the franchisor will also benefit the franchisee

b)

The initial capital investment is relatively low

c)

the franchisee exercises total control over the franchise

d)

Royalties are received from the franchiser

39.

Mr.John is thinking of asking his employees to work overtime. He calls a meeting with them and asks for their suggestions.


Mr.John's leadership style can be BEST described as

a)

autocratic

b)

democratic

c)

bureaucratic

d)

laissez faire

40.

Which of the following would NOT be regarded as a private- sector organisation?

a)

Franchise

b)

Public limited company

c)

Public corporation

d)

Partnership

41.

A firm offering management services to its customers would be regarded as what level of business activity?

a)

Primary

b)

Tertiary

c)

Temporary

d)

Secondary

42.

The tertiary sector earns foreign exchange from the products that are exported

a)

True

b)

False

43.

An advantage of the secondary sector-Creation of jobs, especially because the sector is mostly labour intensive

a)

True

b)

False

44.

The private sector includes businesses that are owned and controlled by the government or local authorities of a country.

a)

True

b)

False

45.

An advantage of a co-operative is that it members have limited liability.

a)

True

b)

False

46.
What is a business objective?
a)
A statement of what the company has achieved.
b)
A statement of what the company is trying to achieve.
c)
A statement of what the company is currently achieving.
47.

The occupation in which people work for others and get remunerated in return is known as

a)

Business

b)

Employment

c)

Profession

d)

None of them

48.

What objective do all 3 sectors share?

a)

Profit Maximisation

b)

Social Responsibility

c)

Growth

d)

Provision of a service

49.

What is meant by the 'objective' of a business?

a)

Long-term vision or goal of the business

b)

Are more specific steps to achieve the aim; they tend to be S.M.A.R.T

50.

What are business objectives?

a)

ways that businesses will grow their customer database in line with inflation

b)

Objectives are defined by government policy

c)

Business objectives are set only by looking at results from the previous year

d)

stated, measurable targets of how business can achieve business aims

51.

Which of the following statements is true in relation to business aims and objectives?

a)

Aims are specific and objectives are general

b)

Aims and objectives are both general

c)

Aims are general and objectives are specific

d)

Aims and objectives are both specific

52.

Which of the following statements best defines the term, market share?

a)

The increase in total sales made by a business

b)

The percentage increase in sales made by a business

c)

The increase in total market sales

d)

The percentage of total market sales sold by one business

53.

Marketing objectives need to be SMART. What does this acronym stand for?

a)

Specific, marginal, acceptable, respectable and timed

b)

Specific, measurable, adequate, relevant and time bound

c)

Specific, marketing, achievable, relevant and time bound

d)

Specific, measurable, affordable, relevant and timed

e)

Specific, measurable, achievable, relevant and time bound

54.

What is the best definition of brand loyalty?

a)

The positive association consumers attach to a particular product or brand.

b)

The promotion of a particular product by means of advertising

c)

The use of market research and advertising to promote and sell products or services

d)

The combination of factors used to influence consumers to purchase a company's products

55.
A mission statement...
a)
is where the business wants to go in the future, it’s goals. It is a statement of purpose
b)
stated, measurable targets of how to achieve business aims. They act as stepping stones in achieving an overall aim. They give clear targets about the business, so plans can be made to reach these targets.
c)
sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.
56.
"We want to achieve sales of £10 million in European markets in 2017" is an example of...
a)
a business aim.
b)
a business objective.
c)
a vision from a company mission statement.
57.
"Our core purpose is to create value for customers to earn their lifetime loyalty." is an example of...
a)
a business aim.
b)
a business objective.
c)
a company mission statement.
58.
When applying for a job, it is always a good idea to look at ......................... to give you an idea of the vision and values of that business.
a)
the company aims
b)
the company objectives
c)
the company mission statement
59.

In the hierarchy of objectives which one is the second one:

a)

Aims

b)

Strategic objective

c)

Tactical objective

d)

Operational objective

60.

The objectives that are set by the middle managers are

a)

Vision

b)

Mission

c)

Tactical objective

d)

Operational objective

61.

Profit maximization means that a business aims to produce goods and services at a level that achieves the highest level of profit possible

a)

True

b)

False

62.

Corporate social responsibility (CSR) is when a business has NO consideration for the impact it has on the community and the environment.

a)

True

b)

False

63.

The long-term goals of a business, often expressed in the firm's mission statement

a)

Targets

b)

Strategy

c)

Aims

d)

Vision

64.

The short-term actions that firms use to achieve their objectives

a)

Visions

b)

SMART

c)

Tactics

d)

Analysis

65.

Plans of action that a firm uses to achieve its long-term objectives

a)

Strategies

b)

SMART objectives

c)

SWOT

d)

Tactics

66.

The declaration of a firm¨s overall purpose

a)

Strategic plan

b)

Mission statement

c)

Annual Report

d)

Code of Practice

67.

The moral principles that guide decision-making

a)

Profit

b)

Ethics

c)

Growth

d)

Laws

68.

An analytical tool used to examine a firm's opportunities in the market place

a)

PESTLE

b)

GANTT chart

c)

SWOT

d)

Force Field Analysis

69.

First step in planning is setting_________

a)

Objectives

b)

Plans

c)

Process

d)

Rules

70.

The overall aim of any public sector business is to ...

a)

Make profit

b)

Provide facilities and services

c)

benefit the society/community