WorksheetsIGCSE Bus Unit 6 Knowledge Check Quiz 1
Total questions: 31
Worksheet time: 16mins
Which of the following is not an example of a legal control used by governments to limit the negative effects of business activity on the environment?
Issuing fines to businesses who ignore reduction in pollution targets
Not permitting businesses to set up in certain areas
Allowing businesses to dispose of waste how they wish
Setting standards on the use of renewable energy sources
An increase in import tariffs could benefit local businesses as demand for their products could increase while sales for businesses selling imported goods could decrease.
True
False
It is argued that the growth of globalisation is at the cost of damage to the environment.
True
False
Businesses shouldn’t have environmentally friendly and ethical business practices if they want to stop pressure groups from opposing their business activities.
True
False
Importers will benefit from the appreciation of their currency, while depreciation in their currency will benefit exporters as it should increase demand for them.
True
False
A group of countries trading with each other that agree to lower trade barriers between them is called?
Trade Bloc
Multinational company
Home country
Host country
Where a multinational company first sets up its operations is called?
Trade Bloc
Multinational company
Home country
Host country
The foreign country where a multinational company sets up its operations is called?
Trade Bloc
Multinational company
Home country
Host country
A large company that has business operations in lots of countries is called?
Trade Bloc
Multinational company
Home country
Host country
Businesses have to weigh up the external costs and external benefits when making business decisions. What is this process called?
Cost benefit analysis
Break-even analysis
Ratio analysis
Positive negative analysis
Which of the following is an example of a direct tax?
VAT (Value Added Tax)
Sales Tax
Excise Duty
Income Tax
All of the following are examples of pressure group activity, apart from one. Which of the following is not a pressure group activity?
Petitioning
Supporting businesses with unethical practices
Raising awareness of a cause or issue through their websites
Boycotting
Social benefits include which of the following?
a) employment of local people
b) improved infrastructure
c) Improved products
d) air and noise pollution
a and d
a, b and c
b and d
All of the above
Which stage of the business cycle is most likely to have falling GDP and rising unemployment?
Growth
Boom
Recession
Recovery
During a boom, which of the following is most likely to happen to businesses?
Demand falls sharply and many firms close
Inflation rises and skilled labour shortages may occur
Prices fall and profits always increase
Interest rates must fall to zero
A rise in unemployment is most likely to affect a business by:
Increasing wage costs because workers are scarce
Making it harder to recruit workers
Reducing demand for many products because incomes fall
Increasing sales of luxury goods
If inflation rises, which impact on a business is most likely?
Costs of raw materials rise, which may force higher prices
Costs fall, so profits rise automatically
Sales always increase
Imports always become cheaper
A government increases income tax rates. Which is the most likely effect on many businesses?
Consumers have less disposable income, so demand may fall
Demand rises because consumers feel richer
Business costs fall because wages must fall
Exports become cheaper automatically
If interest rates increase, which decision is most likely for a business planning expansion with a bank loan?
Borrow more because loans become cheaper
Delay expansion because borrowing costs rise
Increase wages because profits rise
Reduce prices because demand rises
Which is the best example of an external cost of a business decision?
Customers receive better quality products
Local residents suffer from air pollution from a factory
Shareholders receive higher dividends
Workers receive training paid by the business
Sustainable development is best described as:
Maximising short-term profit at all costs
Meeting current needs without harming future generations’ ability to meet theirs
Only using renewable energy in every business
Closing factories to reduce pollution
Which is most clearly an ethical issue a business might face?
Using a cheaper supplier that uses child labour
Changing the price of a product during a sale
Paying workers on time
Advertising a new product
Which action is the best example of a business responding to ethical concerns about suppliers?
Reducing product quality to cut costs
Introducing supplier audits and a code of conduct
Increasing pollution to raise output
Avoiding all overseas suppliers
Which is most likely to reduce pressure group opposition?
Ignore the campaign completely
Increase prices immediately
Move the head office without changing behaviour
Improve environmental practices and publish evidence (e.g., reduced emissions)
Which is a key reason for increased globalisation?
Businesses only selling locally
Less international competition
Improved transport and communication technology
Higher barriers to trade
Which is most likely to be a threat of globalisation for a small local business?
Easier access to finance in all cases
Guaranteed higher profits
Less competition from overseas firms
Increased competition from cheaper imports
An import quota is best defined as:
A ban on exports
A tax on imported goods
A legal limit on the quantity of imports allowed
A reduction in interest rates
Why might a government introduce import tariffs or import quotas?
To protect local firms and jobs from foreign competition
To make imported goods cheaper
To reduce government revenue
To increase competition in local markets
Which is a likely benefit to a business of becoming a multinational company (MNC)?
It will always face less competition
It can access new markets and customers in other countries
It cannot be affected by exchange rates
It must only use home country suppliers
Which is a likely drawback to a host country when an MNC locates there?
Consumers have less choice
No jobs are created
Profits may be repatriated back to the home country
Less investment in the country
If a country’s currency depreciates, which is most likely for an importing business?
Exchange rate calculations will be tested in the exam
Export prices in foreign markets rise automatically
Imported raw materials become more expensive
Imported raw materials become cheaper
