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Business Studies Term 1 CP

Total questions: 66

Worksheet time: 38mins

Name
Class
Date
1.

the human resources ( HR) is responsible for..

a)

planning for a business future need for labour

b)

the right workers in the right numbers, in the right places and the right time

c)

A & B

d)

the salary of the fabric foreman

2.

The reward for capital resources in a company is:

a)

Rent

b)

Salaries and wages

c)

Interest

d)

Profit

3.

The value of our currency in terms of foreign currency, is known as a..

a)

exchange rate

b)

interest rate

c)

inflation rate

d)

tax rate

4.

The insurance industry forms part of the..... sector

a)

Primary

b)

Secondary

c)

Tertiary

d)

Informal

5.

The minimum number of directors in this type of company is one;

a)

personal liability company

b)

non-profit company

c)

public company

d)

state-owned company

6.

Browns architects Inc, is an example of a...

a)

partnership

b)

close corporation

c)

personal-liability company

d)

private company

7.

The........ sector includes the production industry/ services that is offered by the business and consumers

a)

quality control

b)

primary

c)

Government

d)

secondary

8.

what factors need to be considered when establishing a business?

a)

population on the community

b)

number of people working

c)

geographical factor

d)

crime

e)

all of the above

9.
How can a business reduce the risk of failure?
a)
By selling less products
b)
By keeping the cost of their products low
c)
By carrying out market research
d)
By staying open late.
10.
In order to be successful a business needs to?
a)
Identify its customers needs and wants
b)
Have a big shop
c)
Sell products really cheap
d)
Have lots of sales
11.
What is an entrepreneur?
a)
Someone who takes a calculated risk through starting a business
b)
Someone who gives up when something goes wrong
c)
Someone who doe not understand the business environment
d)
Someone who does not take time to consider the risks
12.
What is meant by 'adding value'?
a)
The money a company invests into a new product
b)
the difference between the price of the finished product/service and the cost of the inputs involved in making it.
13.

What is a sole trader?

a)

A person who is the exclusive owner of a business.

b)

Two people who own a business.

c)

A group of people who own a business

14.
An entrepreneur is someone 
a)
Someone who works for a new business
b)
Someone who starts a new business
c)
Someone who takes over an existing business
d)
Someone who does not want to work
15.

Start up 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

16.

What is an operating cost?

a)

Something a business pays before the company starts

b)

Something the company receives

c)

Something the company pays for their day to day running

d)

Something the company cant afford

17.
Which industry sector is an advertising agency part of?
a)
The primary sector
b)
The secondary sector
c)
The tertiary sector
18.
Which industry sector are raw materials a part of?
a)
The primary sector
b)
The secondary sector
c)
The tertiary sector
19.
What is a car an example of?
a)
A cost
b)
A service
c)
A product
20.
Which of the following describes the money going into a business?
a)
An input
b)
Revenue
c)
An output
21.
Which of these is a method of product differentiation?
a)
Having a unique selling point
b)
Selling a product in multiple territories
c)
Introducing a product at a low price
22.
What helps to create brand identity?
a)
Having multiple products
b)
An increase in profits
c)
Creating a logo for the company/product
23.

Which 3 of these are costs?

a)

Fixed

b)

Variable

c)

Operating

d)

Revenue

24.
Which of the following is the best definition of PROFIT?
a)
The total amount of income a business makes from selling products or services
b)
The amount of money a business has left over after paying for their costs.
c)
The total amount of money a business spends.
25.

If a business's costs exceeds it sales revenue, it will experience a ........?

a)

loan

b)

profit

c)

loss

d)

debt

26.

Expenses can be referred to as 'Overheads'.

a)

True

b)

False

27.

Which 3 of the following costs would be considered as expenses?

a)

Rent

b)

Utility bills

c)

Materials

d)

Tax

28.

Expenses are...

a)

The cost of producing a product, otherwise called direct costs

b)

Other costs that are not related to producing the product, otherwise known as indirect costs

c)

Cost that do not change with output

d)

Running costs

29.

Items that can be seen and touched are known as...

a)

Goods

b)

Services

30.

People who are part owners of a company are known as...

a)

Stakeholders

b)

Shareholders

c)

Customers

d)

People

31.

A business with less than 20 employees can be classified as a...

a)

Small business

b)

Medium business

c)

Large business

d)

extra small business

32.

A business that is owned and operated by a single person is known as a...

a)

Partnership

b)

Sole trader

c)

Private company

d)

Public company

33.

The owner of a business being responsible for all debts is known as....

a)

Limited liability

b)

Unlimited liability

34.

Environmental factors over which businesses have very little control over are known as...

a)

internal

b)

existing

c)

external

d)

international

35.

(a)   is an initiative in business or a project or undertaking that requires boldness or effort.

36.

They are the business owners who by taking risks and making decisions, enable production to be carried out in anticipation of demand. This is called (a)  

37.

(a)   is the exchange of goods or services without the use of money.

38.

(a)   is the excess of revenues over expenses in a business enterprise.

39.

If the income of the business is less than the expenses then it makes a (a)   .

40.

(a)   is the act of selling goods or services.

41.

(a)   is a business or administrative concern which is set up for a particular purpose.

42.

The complex of activities concerned with the production, distribution and consumption of goods and services is called an (a)  

43.

(a)   is a person who engages in or takes overall administrative responsibility for the making of a product.

44.

(a)   is a person who purchases goods and services for his own personal needs.

45.

(a)   is the handing over goods for another item of equivalent value in kind.

46.

Commodities that are tangible and are generally not consumed at the same time that they are produced are called (a)   .

47.

(a)   can be defined as intangible commodities or work that are performed for remuneration.

48.

(a)   is any situation which brings buyers and sellers into contact to transact business.

49.

(a)   is an article of commerce.

50.

(a)   applies to the money and all other assets which are used in the process of production e.g. buildings machines etc.

51.

(a)   is the factor of production which is people’s physical and mental contribution to the creation of goods and services.

52.

(a)   can be defined as workers confine themselves to one task and by doing so become experts at these particular tasks.

53.

How many economic sectors are there?

a)

0

b)

4

c)

3

54.
This is NOT part of the primary sector of the economy
a)
Mining
b)
Forestry
c)
Retail
d)
Fishing
55.

Which of these examples is a service?

a)

Mr. Farr sells guitars.

b)

Mr. Swenson gives art supplies to consumers.

c)

Coach provides lessons for different sports.

d)

Ms. Miller writes books.

56.
Fishing, Mining, Farming, and Forestry are examples of what economic activity?
a)
Primary
b)
Secondary
c)
Teritiary
d)
Quaternary 
57.

Which sector does an amusement park belong in?

a)

Primary

b)

Secondary

c)

Tertiary

d)

Quaternary

e)

Quinary

58.
What is meant by the term production?
a)
Changing raw materials into goods and service
b)
What happens on a movie set
c)
A small shop selling groceries
d)
Producing products by recycling
59.

What is the production chain for the diagram?

a)

Cars

b)

Fuel

c)

Lorries

d)

Motorbikes

60.

Which is a feature of a partnership?

a)

Shares can be sold to family and friends

b)

Income tax must be paid on profit.

c)

The owners have limited liability.

d)

Financial information is sent to Companies House.

61.

An owner of a sole Proprietorship is personality liable for all assets

a)

True

b)

False

62.

A sole proprietorship has to share their profits with a partner

a)

True

b)

False

63.

Unlimited liability means?

a)

The owner is personally liable to cover business debts and any costs the business can not cover

b)

The owner(s) do not have to cover all business costs personally in the case of them being sued or going into debt

c)

A corporation is not responsible for taking care of lawsuits

d)

A sole Proprietorship will have enough money and coverage to pay any and all debts

64.
A Business owned by 1 Person
a)
Sole Proprietorship
b)
Partnership
c)
Franchise
d)
Corporation
65.
A Business owned by two or more people
a)
Sole Proprietorship
b)
Partnership
c)
Franchise
d)
Non-Profit Organization
66.
A contract between a parent company and a franchisee to use the name and see the goods or services of the parent company.
a)
Franchise
b)
Corporation
c)
Non-Profit Organization
d)
Partnership