WorksheetsRevision of Topic One
Total questions: 26
Worksheet time: 9mins
An entrepreneur is a person who starts their own business – accepting r...s and hoping for a reward.
(a)
What is the tertiary industry?
Working with the extraction of raw materials
Making things by manufacturing and construction
ICT and Research Development
Providing a service
The transformation process describes what happens inside the business. This is were v...e is added to inputs to create outputs.
(a)
Mission statements are different than objectives. A mission statement is a qualitative statement of an organisation’s aims that uses language intended to motivate employees and convince stakeholders of the firms sincerity and commitment. While objectives are specific g...s that provide a path for achieving the vision.
(a)
Goals that must be achieved in order to realise the stated aims of an organisation. Objectives must c (a) e down the organisation.
Some firms set objectives that involve achieving a minimum level of profit, allowing the business and its managers to focus on other o (a) s
When can survival become a key issue, even for large businesses?
Times of crisis, such as during a hostile takeover bid
When there is more spending in the economy
Periods of recession or intense competition
When a business is launching a new product
To survive a business may have to take actions such as lowering p (a) s that reduce profits but enable it to continue to survive.
A business may be profitable but if they fail to correctly manage cash flow the business can go bust!
True
False
A c..h c...e is the time that elapses between the outflow of cash to pay for the resources needed to produce a product and the receipt of cash following the sale of the product.
(a)
S....l o........s include targets that relate to matters such as providing employment for people or improving facilities for local people (for example, building a play park for local children). Ethical objectives are those that are based on moral principles.
(a)
Diversification is where a firm produces an increased range of unrelated goods and services. This allows the business to spread r..k and potentially grow.
(a)
Many businesses pursue growth because their managers believe that the organisation will not s (a) e otherwise.
Growth will help a be able a business to exploit its market position and earn higher profits. This benefits shareholders (in the long term) by providing greater dividends as well as offering better salaries and more job s (a) y to the employees and managers of the business.
How do you calculate sale revenue?
Profit - Total Costs
Selling Price x Total Costs
Selling price x Quantity
To calculate total costs = fixed costs + total (a) costs
To calculate profit = Total Sales Revenue - Total (a)
Which of these is a variable cost?
Managers Salaries
Rent
Raw Materials/Stock
Fuel
A public sector organisation is owned by the g (a) t
Which of these organisations are in the voluntary sector?
Tesco
Oxfam
Asda
RSPCA
Incorporated – the business has a separate legal identity. It has been formally recognised as a company L.....d L.......y
(a)
Which of these is a benefit of being an LTD?
It is a very small business so easy to control
Shares are sold privately so a hostile bid is not likely
There is only one person running it so decisions are fast
The business can raise extra money from selling shares
A S (a) e is a document representing part ownership of a company. Each share is a title to ownership of the assets of a company.
Market Capitalisation is how much a company is worth and is worked out by multiplying the total number of shares issued by the current (a)
Interest rates are the cost of b (a) g
Market conditions refer to a number of features of a market such as the level of sales, the rate at which they are changing and the number & strength of c (a) s
