Font size
WorksheetsBusiness Studies Unit 1+2+3
Total questions: 100
Worksheet time: 47mins
What is a gap in the market
A hole in a market roof
No markets in a meter square
Lack of good and services in a certain area
None of the above
Which of the following is most likely to be a benefit of business growth?
Increased costs
Increased sales
Increased competition
Increased chance of failure
Which of the following is NOT a method of internal growth?
Increasing output
Gaining new customers
Developing new products
Merging with / taking over another business
Dyson started by selling vacuum cleaners...they now sell hand dryers, washing machines, and fans.
Which type of business growth is this an example of?
Internal growth
External growth
The first Tesco store was built in London. Tesco has since opened stores all across the UK and in other countries.
Which type of business growth is this?
Internal growth
External growth
Kraft took over Cadbury in 2010.
Which type of business growth is this an example of?
Internal growth
External growth
A lack of competition between businesses in a market could lead to...
Lower prices and better customer service
Higher prices and worse customer service
Which of the following is an example of horizontal integration?
A chocolate producer buys another chocolate producer
A chocolate producer buys a cocoa farm
A chocolate producer buys a chain of coffee shops
A chocolate producer buys a car producer
If a business currently has sales of R250,000 in a market worth R2 million, what is its market share?
10%
12.5%
17.5%
25%
As businesses grow in size, they usually benefit from 'economies of scale' - what does this mean?
Lower total costs
Lower average costs per unit
Higher total costs
Higher average costs per unit
Why might a business want to grow?
More Profit
Give employees more time off
To improve the business image
To sell less products
Why might a business want to grow?
To gain more competition
To gain more customers
To reduce the amount of stores
How can we measure the size of a business?
The amount of employees they have
The amount of Facebook reviews they have
How many Twitter followers they have
Size of their carpark
How could we measure the size of a Business?
Charity fundraising
Quality of their adverts
Sales revenue
How much they spend on advertising
Which method of growth carries more risk?
Internal
External
Franchising is a method of ____________ growth
Internal
External
Internal growth is easier to manage and control than external growth.
True
False
Which of the following is NOT Internal growth?
Opening a new location
Expanding through internet selling
Merging with a similar company
Offering franchises
Horizontal integration occurs when...
firms in the same industry and at the same stage of the production process combine to form a larger business.
when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.
Involves take over or merger with another firm in an unrelated industry.
Vertical integration occurs when...
firms in the same industry and at the same stage of the production process combine to form a larger business.
when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.
Involves take over or merger with another firm in an unrelated industry.
Conglomerate occurs when...
firms in the same industry and at the same stage of the production process combine to form a larger business.
when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.
take over or merger with another firm in an unrelated industry.
BMW Purchasing MINI is an example of...
Forward Vertical integration
Horizontal Integration
Backward Vertical Integration
Conglomerate
Apple buying a company that creates microchips for phones and computers is an example of...
Backward Vertical integration
Horizontal Integration
Forward Vertical Integration
Conglomerate
Mcdonalds buying a cattle farm would be an example of...
Backward Vertical integration
Horizontal integration
Forward Vertical Integration
Conglomerate
If Samsung purchased a fruit farm this would be an example of...
Forward Vertical integration
Horizontal integration
Conglomerate
Backward Vertical Integration
Disney and Pixar joining together is an example of...
Forward Vertical integration
Horizontal integration
Conglomerate
Backward Vertical Integration
The possible benefits of growing the business are
Keeping control over decision making
Larger potential profits
Benefit from bulk buying discounts
Security for the future of the business
An example of Internal growth is
Horizontal Integration
Launching new products
Takeover
Advantages of a external growth might be
Better deals because of increased order size, bulk-buying discounts etc.
Increased revenue and market share. Increased size of the combined company increases market power and ability to set higher prices
To gain resources. If one company has resources (e.g. technology) that another one wants then a merger may be the most cost-effective way to get access to those resources
Slow growth so can be easily managed
Disadvantages of external growth could be?
Clash of Cultures. All businesses have a slightly different culture and they may not work well together
Mergers lead to bigger more efficient business
Possible communication problems. As the business gets bigger, or if there are now too many employees
Unreliable partners. A good merger will depend on trust between the businesses
Nike buying a materials producer would be a form of...
Forward Vertical Integration
Horizontal Integration
Backward Vertical Integration
Conglomerate
When a company expands by purchasing and controlling the direct distribution or supply of its products
Horizontal integration
Backward vertical integration
Forward Vertical integration
Conglomerate
Controlling supplies of materials to competitors is an important advantage of?
Horizontal integration
forward Vertical integration
Conglomerate integration
backward Vertical integration
Expanding the product line is an example of what type of growth?
Internal growth
External growth
When a business buys up a firm operating in the same stage of production
Horizontal integration
Vertical integration
conglomerate
Internal growth
A definition of Economies of scale is :-
A reduced unit cost gained from an increase in production
Increasing your turn over through reducing your sales prices
Taking over suppliers
Diversifying by launching new products
Three things that might hold back a company's ability to grow are :-
Increasing demand for their products
Restricted funds
Being a Private Limited Company
Limited skills and experience
Proprietors are happy with their current lifestyle
The primary stage of production is concerned with:
Growing crops and extracting the earths natural resources
Providing services to customers and industry
Converting natural resources into fishing goods
Transporting goods to final customers
The tertiary sector of industry tends to be the most important sector in high income [Most developed] countries because:
agricultural output is more important than service
As customers have a little money to spend, they use most of their income to buy manufactured good
Most workers are employed in manufacturing products in these countries
As customers’ income are high, they spend more on services such as hotels and Leisure
Which one of the following businesses would you classify as being in the second respecter of industry?
Oil exportation company
Family run farm business
Doxie operating business
shoe manufacturer
In a mixed economy, which of the following groups of industries are most likely to be controlled/owned by the government?
Hotels and restaurants
Health and public transport
Building and taxi services
What shops and farming
Which of the following is NOT an example of primary sector business activity?
Forestry
Fishing
Oil refining
Mining for gold
Tertiary sector business activity is
Providing services to customers only
Turning the raw materials into fished goods
The extraction of natural resources
Providing services to customers and businesses
Tick the characteristics of successful entrepreneurs
Lazy
confident
Shy
Initiative
Risk-taker
What can a business sell?
goods
services
goods and services
What is profit?
the money you spend - the price you sell it for
the price you sell if for- the money you spend
the price you sell it for + the money you spend
Governments can support business start-ups buy:
Increasing taxes
Increasing regulations
Increasing grants
Increasing interest rates
Which of the following is Not a method form to determine business size?
Value of output
Number of employees
Capital employed
Profit
Which statement best describes conglomerate integration?
A frozen food manufacturer buying a poultry farm
An Ice-cream producer opening its own ice cream shop
The merger of two taxi firms
The owners of an airline buying a music company
Which statement is an example of forwards vertical integration?
A frozen food manufacturer buying a poultry farm
An ice-cream producer opening its own Ice-cream shop
The merger off two taxi firms
The owners of an airline buying a music company
What is a Business Plan?
Written document that only outlines the business practices of the new business
Written document that only describes the ownership of the business.
Written document that describes the financial aspects of the business.
Written document that describes all the steps necessary for opening and operating a successful business.
Why do you need a Business Plan?
To explain your idea
The ability to get financing
It's a road map that sets objectives and goals for the business
All of the above
Which of the following should be left out of a business plan?
Purpose of the Business
Employees and their potential roles
A guide to start-up costs
Target Market
None of the above
Complete the sentence: A business plan...
is useful once your business is operational but not much help during the startup phase
is not usually needed once the business is up and running
can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.
Which of the following would be interested in seeing the business plan of a new company?
Customers
Potential investors
The owners of the company
Banks/ potential lenders
Local council
A target market is a group of _______ that the _______ has decided to aim its marketing efforts and ultimately its merchandise towards.
Companies, Business
Companies, Research
Customers, Business
Businesses, Customer
Which of the following statements about business plans is TRUE?
Business plans eliminate risk to lenders
Business plans reduce risk to lenders
Business plans increase risk to lenders
Business plans have no impact on risk to lenders
An entrepreneur is creating a business plan for a new business; they are including a section on sources of finance.
Which of these are appropriate sources of finance to suggest?
Grant
Retained profit
Owner savings
Bank loan
Reena maintains her family by using her private vehicle for hire. Identify as the public or private sector.
private
public
The public sector is the part of the economy owned and controlled by
Non-profit organizations
The government
What is the main aim of the Private sector?
To provide essential services such as hospital care
To maximise profits
Government organizations are a part of the ______________ sector.
public
private
Mary goes to Florida every three month to shop. On her return she sells her goods in the vendors' mall.
private
public
A public transport company that is funded by taxpayers.
private
public
A group of designers and seamstresses formed themselves into a company, Jamaica Garments, which supplies uniforms and variety of clothes for the government.
private
public
A multinational firm that has been serving food and related beverages to the Caribbean area.
private
public
Samson's Housing Development builds homes throughout the Caribbean and Latin American countries.
private
public
The factor market includes which of the following as factors of production?
land, labor, capital, and entrepreneurship
land, labor, and capital
land only
land and labor only
The private sector is funded by tax
True
False
What sector does Starbucks operate in?
Private
Public
Which is the correct definition of an entrepreneur
Someone who owns a business.
A person who organises and manages an enterprise, especially a business, usually with considerable initiative and risk.
A group of people making a business.
A person who buys another person's business.
Why is it important for an entrepreneur to have problem solving skills?
They can find solutions and turn such problems into opportunities. Problem solving relates to all aspects of business.
So they can identify problems quickly and make the necessary changes.
They are able to see where things go wrong.
They need to be able to find solutions quickly.
A __________ is a tangible good, something you can touch.
Customer
Service
Advertisment
Product
A business that does $10,000 in sales, and has $7,000 in expenses has a profit of?
$17,000
$10,000
$7,000
$3,000
If you offer someone 10% of your company in exchange for $100,000, you value your company at:
$10,000
$100,000
10%
$1,000,000
Which is a characteristic of a successful entrepreneur?
Motivated
Takes very little risk
Passionate
Hard-working
What is a disadvantage of being an entrepreneur?
You have more control over your work
You have a more flexible schedule
You do not always receive a regular paycheck
Your work schedule is always predictable
Why do you need a business plan?
To raise capital
Gets everyone involved to focus on the same goals
Gives an objective look at what you are doing and why
It is required by law
Adding value can be done with the help of :
Excellent Service quality
Product features
Convenience
All of them
Primary Sector activity example is:
Farming
Refining
Banks
Construction
All of them
Which of the following is NOT an example of adding value
Quality
Branding
Selling an item for less
Unique selling point
Which of these is the best definition of the ‘economic problem’?
People do not have enough money.
There are not enough resources to satisfy people’s wants.
There are too many factors of production.
The amount of something produced by a person, machine or industry.
What is 'added value'?
is the next best alternative given up by choosing another item.
is the difference between the selling price of a product and the cost of bought-in materials and components.
It's a good or service essential for living.
is the lack of sufficient products to fulfil the total wants of the population.
