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WorksheetsCambridge Technical Business Unit 1 LO1, LO2 and LO3
Total questions: 49
Worksheet time: 26mins
Which of the following would be classified as an internal stakeholder of a private limited company?
Central government
Directors
Partners
Pressure groups
Which of the following would be classified as an internal stakeholder of a private limited company?
Central government
Directors
Partners
Pressure groups
A business operated by a sole trader has:
no tax liability
one owner
one shareholder
only one stakeholder
A public limited company:
can sell its shares on the stock exchange
cannot cease trading
has unlimited liability
operates in the public sector
A business produces goods which are of an inferior quality compared to that of its competitors. This is an example of:
a weakness of the business
being competitive
delegation of authority
unethical trading
Which of the following is a political factor which may affect a public sector organisation?
A change in cultural beliefs
A change of government
An improvement in communication technology
An improvement in the standard of living
One purpose of a public limited company’s Annual General Meeting (AGM) is to:
find a venture capitalist
inform employees of future changes
listen to customer viewpoints
meet legal requirements
A partnership is owned by three brothers. The partnership goes bankrupt with debts of £30 000. According to the Partnership Act:
each brother is jointly and severally liable for the full £30 000
each brother is liable for only £10 000 of the debt
the brothers do not have to repay the debt from personal funds
the brothers would only lose the amount they have invested in the business
Which of the following is not a source of finance available to a sole trader?
Bank Loan
Crowd funding
Share issue
Venture capital
Which of the following is an example of an organisation that operates in the public sector?
A charity shop
A clothing manufacturer
A local council
A restaurant
A public limited company:
has unlimited liability
must hold an Annual General Meeting (AGM)
pays income tax
requires a deed of partnership
Which of the following is not an example of a financial objective for a sole trader?
To break even
To make a profit
To pursue own interests
To reduce variable costs
The liability of a partnership is:
a strength of the business
calculated using an income statement
dependent on the number of partners
unlimited
Which of the following is the main business activity of a primary sector organisation?
Extract raw materials
Provide a service
Sell goods on the Internet
Turn raw materials into finished goods
Identify the natural resources that are being exploited in the primary sector? (REM)
Agriculture
Fishing
Forestry
All the above
Relate the secondary sector to the best option? (ANA)
Activities include bringing the products from the secondary sector to the end customer.
Activities include harvesting, collecting or extraction of raw materials.
Processes raw materials and supplies to the shops for the end customers to buy.
All the above
Connect the tertiary sector with the role it plays in the economy. (ANA)
Creates income – contribution to the GDP and provides employment.
Earner of foreign exchange.
Agriculture produces food which is regarded important for a country’s independence from the rest of the world.
All the above
Classify another name for the tertiary sector? (UND)
Farming
Manufacturers
Service industry
All the above
Choose a photo which best describes the tertiary sector? (APP)
All the above
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which of the following is an advantage of operating a large established business as a public limited company?
Shares can be sold to the public to raise additional finance
Financial accounts are published
Shares can only be sold to invited investors to raise finance
Owners have unlimited liability
Which of the following statements is always true of a public limited company?
Shareholders have day to day control of the company
Liability is limited
The ability to expand is limited
Board of directors own the business
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole trader
Partnership
LTD
PLC
Which of the following functional areas of a business is most likely to be responsible for recruiting new staff?
Business support services
Finance
Human resources
Operations management
Which of the following functional areas is most likely to be responsible for maintaining the IT equipment in a large organisation?
Business support services
Customer services
Operations management
Research and development
Which functional area is most likely to purchase stationery supplies in a public sector organisation?
Business support services
Finance
Procurement
Sales
Which of the following functional areas of a business is most likely to be responsible for producing a radio advertisement to raise awareness of its new product?
Customer service
Marketing
Operations
Sales
Which of the following functional areas is responsible for converting inputs into outputs?
Finance
Operations Management
Research and Development
Sales
Which one of the following is a task which is most likely to be carried out by an employee working in the research and development department of a chocolate bar manufacturer?
Create new recipes
Design an advertising campaign
Find cheaper suppliers of ingredients
Redesign the packaging label
Which of the following is a correct definition of the term ‘remuneration’?
An unnecessary risk
Financial reward
Non-monetary payment
Shortlisting applicants
The human resources function of a large organisation is most likely to support the finance function by:
purchasing a new accounts package
recruiting an additional employee
updating its supplier database
using social media to encourage more sales
The IT function of a large organisation is most likely to support the sales function by:
backing up employee records
creating a production schedule
updating payroll software
upgrading a customer database
A customer service assistant who works for a theme park is most likely to:
deal with visitor enquiries
make staff redundant at the end of the season
order stock for the gift shop
update the technology which controls the rides
Which of the following is the most likely consequence to a manufacturer of a poor relationship between its purchasing function and its operations management function?
Incorrect prices
Insufficient stocks of raw materials
Late payment of employee wages
Too few staff
Define what is meant by span of control
The number of levels of authority that are in the chain of command
Number of subordinates who report directly to the line manager
Workers that a line manager is responsible for
The power that one person has to make decisions and control what other workers do
Functional structure means that employees are grouped into?
Pay scales
Ability
Specialities
Date of employment
A matrix structure gives more of what to it's employees?
productivity
ability
pay
responsibility
The passing of authority from one level to another is called:
Delegation
Responsibility
Chain of Command
Span of Control
Which of the following is an advantage to a business of delayering its organisational structure?
The duties of employees may be reduced
Spans of control will become narrower
Promotional opportunities will improve
Staff costs will be reduced in the long term
Which of the following statements best describes the term span of control?
The formal channels of communication in an organisation
Removal of a level in an organisational structure
The number of levels in an organisational hierarchy
The number of people that directly report to a line manager
Which of the following is the main advantage to a business of having a formal, internal organisational structure?
Employees have clearly defined job roles and duties
The layout of the organisation will be detailed on a map for new staff
Every employee will report to at least two line managers
Labour productivity will be lower
Which of the following best describes the term chain of command?
Lines of authority in an organisation along which communication flows
Passing authority to others
A subordinate giving feedback to a superior
The number of employees that directly report into a line manager
In which type of organisational structure would communication from the top of the organisation to the bottom layer of the organisation be the fastest?
Tall
Flat
Hierarchical
Regional
A flat organisational structure will usually have:
Rigid rules
A more flexible approach to decision making
Many levels in the hierarchy
More promotional opportunities for employees
Which of the following is the term used to describe a business where key decisions are made at head office?
Hierarchical organisational structure
Flat organisational structure
Centralised business
Decentralised business
Which of the following organisations is most likely to have a hierarchical organisational structure?
An accountancy firm with two partners and ten employees
A mobile hairdressing business with two employees
A sole trader plumber who works alone
A chocolate manufacturer with 250 employees
