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Worksheets

IGCSE Business 1, 2, 4 review

Total questions: 35

Worksheet time: 17mins

Name
Class
Date
1.
The location of which of the firms will be influenced by the availability of skilled workers?
a)
computer software design and production
b)
large supermarket
c)
mass producer of family car models
d)
travel company’s ticket office
2.
The location decision of a firm in the primary sector is most likely to be affected by:
a)
the location of the main markets
b)
the available supplies of labour
c)
the available sources of the main raw material
3.

Which of the following is likely to be the main factor influencing the location of a small barber shop? Proximity to:

a)

Customers

b)

Labour

c)

Raw materials

d)

Competitors

4.

Which business sector deals with raw material and natural resources?

a)

primary

b)

secondary

c)

tertiary

d)

all of the above

5.

the .....is a legal documents between the employee and the employer

a)

letter of appointment

b)

letter of acceptance

c)

employment contract

d)

appoint contract

6.

The Board of Directors control daily business operations for this type of business.

a)

Sole proprietorship

b)

Partnership

c)

Public Company

d)

Franchise

7.

A form of business where the owners of the company are referred to as shareholders.

a)

Sole Proprietorship

b)

Partnership

c)

Public Company

d)

Cooperative

8.

Scarcity is the main economic problem. What is scarcity?

a)

It is a situation that exists when there are unlimited wants and limited resources to produce the goods and services to satisfy those wants

b)

the next best alternative forgone by choosing another item

c)

is the physical and mental efforts put in by the workers in the production process

d)

is the finance, machinery and equipment needed for the production of goods and services

9.

Division of labor can be defined as

a)

Workers specialize on just one task and become better at it

b)

Workers become specialist in all jobs

c)

All firms only have one worker

d)

No workers are employed as machines always do all the work

10.

The next best alternative given up by choosing another item is the definition of?

a)

Scarcity

b)

Opportunity cost

c)

Purchase

d)

Business activity

11.

Which of the following is a non financial business objective?

a)

Increase market share

b)

Independence and control

c)

Profit maximixation

d)

Survival

12.

DEFINE infastructure

a)

the fancy name for a uniform

b)

food, water,and shelter that's needed for employees

c)

money that is required to start a business

d)

building, roads,and electricity that's needed for an operation

13.

What is 'added value'?

a)

is the next best alternative given up by choosing another item.

b)

is the difference between the selling price of a product and the cost of bought-in materials and components.

c)

It's a good or service essential for living.

d)

is the lack of sufficient products to fulfil the total wants of the population.

14.

What is a business plan?

a)

Written document that only outlines the business practices of the new business.

b)

Written document that describes the financial aspects of the business.

c)

Written document that only describes the ownership of the business.

d)

Written document that describes all the steps necessary for opening and operating a successful business.

15.

Continuous production of identical products, therefore giving scope for high levels of automation

a)

Job production

b)

Productivity

c)

Flow production

d)

Batch production

16.

Producing a limited number of identical products

a)

Flow production

b)

Batch production

c)

Productivity

d)

Job production

17.

A measure of efficiency, measured as output per person in a particular time period

a)

Productivity

b)

Automation

c)

Product quality

d)

Competitive advantage

18.

An increase in morale and motivation can lead to what?

a)

Reduction of costs

b)

Improvements in quality

c)

Increased productivity

d)

Decreased productivity

19.

A business makes 28,000 items a week and employs 35 staff.

Calculate the productivity per worker.

a)

1500 units/week

b)

35 units/week

c)

800 units/week

d)

900 units/week

20.

Management salaries are an example of what?

a)

Quality control

b)

Fixed Costs

c)

Variable costs

d)

Material costs

21.

The labour productivity of a business is 475 units a month. The business employs 52 staff. Calculate its total output.

a)

24,600 units

b)

26,800 units

c)

24,700 units

d)

27,600 units

22.

What does automation mean?

a)

Using machines that can operate without people

b)

The development of production into batch production

c)

Handcrafted production

d)

Leading to a fall in quality

23.

The ability to switch quickly and easily from one task to another

a)

Flexibility

b)

Quality

c)

Flow production

d)

Batch production

24.
What is recruitment?
a)
The process by which a business hires staff
b)
The process by which a business trains staff
c)
The process by which a business inducts staff
25.
How is a business most likely to encourage applications for a post?
a)
Job adverts
b)
Staff appraisal
c)
Internal recruitment
26.
Which should NOT be on a job description?
a)
Qualifications
b)
Hours
c)
Duties
d)
Location
27.

Employing a specialist cost accountant in a growing business is an example of which type of economy?

a)

Technical economy

b)

risk-bearing economy

c)

Managerial economy

d)

Marketing economy

28.

What impact will internal economics of scale have on costs?

a)

Total costs will fall

b)

Average costs will rise

c)

variable costs will rise

d)

Average costs will fall

29.

___________ raising average costs when a firm becomes too big

a)

economics of scale

b)

Dis-economics of scale

c)

managment

d)

business decision

30.
If a business is located in the wrong area then it is likely to experience:
a)
low costs of production
b)
low inefficiency
c)
low break-even point
d)
low profits.
31.

Total costs are...

a)

the amount of money spent setting up a business

b)

money spent on a regular basis to keep a business running

c)

Fixed Costs + Variable Costs

d)

costs which change with output

32.

A break even chart does not show what?

a)

the margin of safety

b)

how much output a business has to produce to break even

c)

how much money a business will make at the break even point

d)

costs, revenue and profit at different levels of output

33.

Which describes "chain of command"?

a)

it allows instructions to be passed down

b)

it is the number of subordinates

c)

refers to the levels of management and division of responsibilities

d)

It is the enjoyment derived frin that feeling you have done a good job

34.

When products are checked at the end of the production process this is called

a)

Quality Assurance

b)

Quality Circles

c)

Quality Control

35.
what is unlimited liability?
a)
Personal possessions CAN be taken to repay a debt
b)
Personal possessions CANNOT be taken to repay a debt