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WorksheetsFBT PT2
Total questions: 61
Worksheet time: 31mins
A reduction in the interest rates will increase investment.
True
False
Under the current method of presentation of the UK balance of payments statistics, current account transactions are subdivided into four parts; trade in goods, trade in services, income and _____
transfer
interest
compensation
investment
One of the sources of legal authority is supra national? Which of the following would not be considered supra national?
local council
UN resolutions
European parliament
International court of justice
Which one of the following is consistent with a government's policy objective to expand the level of economic activity?
an increase in taxation
an increase in interest rates
an increase in personal savings
an increase in public expenditure
Which of the following would not correct a Balance of Payment Deficit?
re-valuing the currency
raising domestic interest rates
deflating the economy
imposing import controls
Which of the following would be described as an external stakeholder?
customer
supplier
trade union
competitor
Which of the following is an employer duty to ensure a safe workplace?
The safety policy should be communicated to all staff.
All work practices must be safe.
All plant and equipment must be maintained to the necessary standard.
All of the above.
Which of the following statements is false?
A manager does not need to know the company's possible threats.
Strength is really meaningful only when it is useful in satisfying the needs of a customer.
Delaying the discovery of weaknesses that already exist within a company will only further hurt the firm.
None of the above statements is false.
The factors of production are ______
, labour, capital and entrepreneurship
fixed assets
area
land
machinery
Delayering is a process where the scalar chain is stretched.
Is this statement true or false?
True
False
Which is true about inflation?
A low inflation rate is that prices on average are rising rapidly.
In inflationary periods, retirees are those that are biggest losers since their hard-earned savings will buy less as prices go up.
High inflation rate helps those who save in the past.
None of the statements is correct.
The government of Malta decides to introduce a new tax, which will involve a flat rate levy of €300 on every adult of the population. This new tax can be described as:
regressive
proportional
progressive
ad valorem
An organisation’s weaknesses in SWOT means:
what an organisation cannot do
what an organisation can do
potential unfavorable conditions for an organisation
In managing economic sustainability, a company must consider the following:
its influence on the wider economy
the financial performance of a company
how the company manages intangible assets
all of the above
Which of the following is not one of the four macroeconomic policy objectives of governments?
economic growth
inflation
unemployment
balance of trade
Part of the common features of a business organisation is having customers besides other stakeholders.
True
False
Fiscal policy refers to the level of public expenditure and to the raising of that expenditure via taxation; it is usually understood with the context of which of the following:
supply side policies
classical policies (do nothing)
monetary policies
demand side policies
The following are the drawbacks of outsourcing except one_
confidentiality at stake
cost cutting
locked into unsatisfactory contract
How the company should treat the stakeholder with Low power, high interest?
Keep informed
Keep satisfied
If a government increased its expenditure and reduced levels of taxation the effect would be to (a) ________ demand in the economy and to (b) _________ the size of the Public Sector Net Cash Requirement (PSNCR)
Which words correctly complete this statement?
(a) reduce, (b) reduce
(a) stimulate, (b) reduce
(a) stimulate, (b) increase
(a) reduce, (b) increase
Is statement correct:
The agency problem arises because of the agents' self-interest and information asymmetry, with the agent having more information than the principal.
Yes
No
________ is a basic straightforward model that provides direction and serves as a basis for the development of plans. It assesses the organization's strengths and weaknesses in addition to opportunities and threats.
market research
SWOT analysis
feasibility study
quantitative analysis
Which one of the following would cause a fall in the level of aggregate demand in an economy?
a decrease in the level of imports
a fall in the propensity to save
a decrease in government spending
a decrease in the level of income tax
Which of the following statements is false?
The increasing percentage of the population aged over 65 is creating a pensions crisis in many countries.
Government of countries with low birth rates often introduce tax advantages and other financial incentives to encourage women to have more children.
Governments in countries with rapidly rising population often put in place policies to discourage large families.e.g "one child"policy adopted by China.
All of the statements are correct.
Which of the following is not a Generic Strategy as described by Michael Porter:
cost focus
differentiation
diversification
differentiation focus
Which type of organisation would have the retail prices it charges to personal consumers subject to close scrutiny by a regulator?
A multinational corporation
A multi-divisional conglomerate (a large corporation that has acquired several other firms engaged in different industries)
A national utilities company (have national or local monopolies)
A financial services provider
An organisation’s strengths in SWOT analysis means:
what an organisation can do
potential favorable conditions for an organisation
Demand for goods and services are influenced by the following except:
price of the product
prices of other products
consumer tastes
All of the above are factors which influence the demand for goods and services.
Which of the following is not of the key points mentioned in the MENDELOW framework?
interest
power
influence
satisfaction
Which of the following is an example of cyclical unemployment?
lay-offs amongst ski instructors in the summer months
automation of ticket sales at train stations resulting in the redundancy of ticket officers
recession in the building industry
the restriction of employment in the car industry due to powerful trade union keeping wages high
Which of the following policies for correcting a balance of payments deficit is an expenditure-reducing policy?
cutting the level of public expenditure
devaluation of the currency
the imposition of an import tax
the use of import quotas
______ is the term used to refer to a situation when a company is reducing the number of employees without necessary reducing the work or output.
dismissal
delayering
outsourcing
downsizing
When you ae to enter into a contract for for the purchase of goods, you take into consideration the following except:
you may want the goods delivered for a particular occasion or date
does the seller have a right to sell the goods
the goods should be of reasonable quality and suitable for their purpose
All of the above should be considered.
True or false. In cost leadership strategy, the objective is to become the lowest-cost producer in the industry.
True
False
Competitive markets would be generally classified as (except one)
perfect competition
imperfect competition
monopolistic competition
free market
A government can try several options to create jobs or reduce unemployment. Among these are:
encouraging growth
offering grant assistance to employers
encouraging training in job skills
All of the above are options.
Personal data shall be accurate and, where necessary, kept up to date. Does this statement comply with Data Protection Act (UK)?
Yes
No
Which of the following statements is false?
In the short run, the firm can raise output by increasing the amount of the variable factor, say labor through overtime.
Costs that are fixed have no impact on a firm's short run decisions.
The short run is the conceptual time period in which at least one factor of production is fixed in amount and others are variable in amount.
None of the statements is false.
The following are the principles of Data Protection Act 1998 except__
Personal data shall be accurate and where necessary,kept up to date.
Personal data shall be obtained only for one or more specified and lawful purpose.
Personal data shall be processed in accordance with the rights of data subjects under the act.
Personal data shall be relevant but excessive in relation to the purpose.
Which of the following is one of the important generic (mainly economic) factors that influence the level of business activity in an economy?
levels of immigration
rising stock markets
exchange rate movements
levels of unemployment
Peter Wong was dancing on his desk one lunch time and tripped, injuring himself. Who is responsible for the accident?
Peter's employer
Peter
Both Peter and his employer
Environmental analysis is relevant when undertaking the strategy making process. Is it true or false?
True
False
Governments in countries with rapidly rising populations put in place policies to discourage large families. An example of which is "one child" policy adopted by China. True or False
True
False
Governments can influence firms through legislation and policy decisions in all sections of the economy including Law and Order, Schools, Construction, Defense, Town Planning, Oil, Gas, Coal and Nuclear Power, Agriculture, Planning Permission and Foreign Policy
Is this statement true or false?
True
False
An agency cost generally includes the following except:
cost to the shareholder through having to monitor the directors
over and above normal analysts costs
a result of comprised trust in directors
substantial amount of travel incentives to directors
Which of the following would not be described as a connected stakeholder?
shareholders
customers
suppliers
managers
The bargaining power of customers in an industry will be greater in which of the following circumstances?
There are one or two dominant suppliers in the industry
The product is highly important to the customer’s business
There are many customers in the industry
Switching costs are low
Cyclical unemployment refers to unemployment:
which occurs because of the seasonal nature of some industries
resulting from the long-term decline of an industry
which occurs at particular times of the year
which occurs during recessions
Porter's five forces model identifies external factors that determine the potential profitability and therefore attractiveness of a particular industry. Which of the following is one of these forces?
government regulation of the industry
bargaining power of buyers
fiscal policy
The following cause population to grow except one________
religion
higher birth rates
lower death rates
immigration
A _____________ is a group of individual who has an interest in what the organization does or an expectation of organization.
stakeholder
employee
customer
supplier
Stakeholders can move from quadrant to quadrant within Mendelow's matrix
True
False
Which of the following is a responsibility of the employee when it comes to safety and health at work?
To take reasonable care of this own health and safety.
To report any injuries, strains or illnesses he suffer as a result of doing his job
To tell the employer if something happens that might affect his ability to work
all of the above
An inflationary gap exists in an economy when:
the government has a budget deficit
aggregate demand is greater than the full employment level of income
the money supply rising faster than national income
the government increases its level of expenditure
Which of the following will not be the immediate purpose of a tax measure by government?
To discourage an activity regarded as socially undesirable
To influence interest rates
To protect a domestic industry from foreign competition
To price certain products go as to take into account their social cost
Which of the following is one of the four typical governmental macroeconomic policy objectives?
maximising taxation revenues whilst sustaining economic growth
reducing the gap between the highest and the lowest paid
control of inflation
ensuring that every citizen has access to a minimum level of state benefits
Which of the following is not a factor that involves the overall economic performance of the nation?
government budget
productivity
foreign trade deficit
population rate
Which of the following is an employer duty with regards to health and safety in workplace?
All work practices must be safe.
The work environment must be safe and healthy.
The employer must identify employees who are at risk.
All of the above.
Which type of unemployment arises from a permanent reduction in demand for the products supplied by a single industry or group of industries with traditionally large workforces?
Frictional
Structural
Cyclical
Seasonal
If the cost of milk rises, and milk is a major ingredient in yoghurt, then the:
Demand curve for yoghurt shifts to the left
Supply for yoghurt curve shifts to the left
Supply curve for yoghurts shifts to the right
Demand and supply curves for yoghurt both shift to the right
Which of the following best describes PEST analysis?
Internal analysis
Micro analysis
External analysis
Macro analysis
