WorksheetsIGCSE Business Studies Section 1
Total questions: 45
Worksheet time: 22mins
Businesses including farming, fishing, forestry & the extraction of natural resources e.g. oil, minerals etc.
Tertiary Sector
Primary Sector
Secondary Sector
The economic problem
Land, labour, capital and enterprise are collectively known as
Goods and services
Business cycle
Factors of production
Output
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.
Organisations run by central or local government are often referred to as
Private sector
Voluntary sector
Public sector
Mixed economy
Which of these methods are NOT used to compare the size of a business?
Capital employed
Value of output
Workers employed
Added value
One business merges with or takes over another business in the same industry but at a different stage of production.
Horizontal integration
Conglomerate
Vertical integration
Scarcity
Which of these are NOT included in a business plan?
A description of the market the business is targeting.
Financial information including income statements, sources of capital etc.
Which firms they plan to merge with.
Organisation structure & management.
When one business mergers with or takes over a business in a completely different industry.
Internal growth
Horizontal integration
Vertical backwards integration
Conglomerate integration
What is an 'entrepreneur'?
A person in charge of the business strategy.
A person who lends the funds to set up a new business venture.
A person who organises, operates and takes the risk of a new business venture.
A group of people in charge of creating the business plan of a new venture.
A clothing manufacturer buys a textile firm.
What type of business growth is it?
Backwards vertical acquisition
Forward vertical merger
Horizontal integration
Conglomerate
The process of transferring ownership of a business from the public sector (government) to the private sector.
Planned/Command economy
Nationalisation
Privatisation
De-industrialisation
When a business 'creates or adds value' it increases:
the difference between the cost of purchasing raw materials and the price the finished goods are sold for
the number of products it sells
the difference between the cost of producing a product and the price for which it is sold
the difference between the price of a product and the variable cost of its production
The machinery that is used by a business is an example of which factor of production?
land
labor
capital
enterprise
The most likely difficulty for new business start-ups is:
obtaining finance
identifying a market
marketing
finding suitable employees
What is opportunity cost?
the value of the next best option that is not selected when a choice is made.
there is not enough of it.
things people make to earn money.
actions people do to earn money.
Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?
fishing with a friend
going to a concert
Which of the following answers are business objectives?
Survival
Profit
Specific
Market share
A business with social objectives that reinvests most of its profits back into the business or into benefiting society at large.
Social network
Social enterprise
Corporation
Multinational company
An Individual or group which has interest in business because they are affected by its activities and decisions.
Shareholders
Travellers
Stakeholders
Students
Owners, shareholders, managers and employees are:
Internal stakeholders
External stakeholders
Intruders
Supporters
Lenders, suppliers, customers, government, and local community are:
Business stakeholders
Pressure groups
External stakeholders
Managers
The best definition of a sole trader form of business organisation is:
the business only employs one person
the business is owned by one person
the firm has a single customer
there is a single firm in the industry
One of the claimed advantages of a sole trader business is that:
owners have limited liability
shares can be sold to raise capital
decisions and responsibilities can be shared
the owner has complete control
One of the disadvantages of a sole trader business is that:
capital is limited to owner’s savings and bank loans
decisions take too long to make
as they are government owned there is no profit motive
the owners may disagree
One of the advantages of a partnership form of business organisation is that:
all partners always have limited liability
shares can be sold on the Stock Exchange
the business survives the death of the partners
the business has access to more capital than a sole trader
Which of the following is NOT a feature of a private limited company?
Shares can be issued to raise capital
Shares can be bought and sold on the Stock Exchange
All owners of the business have limited liability
The business continues after the death of shareholder
Which of the following statements best applies to a public limited company (plc)?
It is owned by the government and is in the public sector
It is owned by shareholders who can sell their shares in the Stock Exchange
It is quick and easy to set up with few legal formalities
Its accounts can be kept private and it receives little coverage in the business press
The main reason why the owners of many private limited companies convert their businesses into public limited companies is because:
they do not want to remain in the private sector
they want to gain the benefits of limited liability
they want to keep the annual accounts secret
they want to raise additional capital to expand the business
One of the main drawbacks of many public limited companies is that:
there can be a loss of control by the original owners as additional shares are sold
firms in the public sector are often less efficient
if the company were to fail the shareholders could lose all of their assets
workers have to be asked for their opinions before major decisions are taken
Which of the following statements about most public limited companies is true?
They are owned and controlled by the workers
They are owned by the directors but controlled by the shareholders
The are owned by shareholders but controlled by directors
They are owned and controlled by the government
One of the reasons for a business buying a franchise is because:
it is always much cheaper than setting up a new business venture
there is complete control over important decisions
the business can use its own name in advertisements
the risks of failure are lower as it is buying a well known business idea
One of the advantages to a business of selling a franchise licence to franchisees is that:
the business can expand more quickly
the franchisor owns all of the shops
the businesses buying the franchises are certain to be successful
the products sold in each shop will be different
One of the limitations for an entrepreneur of setting up a new business as a franchise is:
the profits of the franchised business will be lower than if it was not a franchise
a share of the costs will have to be paid to the franchisor
some decisions will be taken by the franchisor not the franchisee
consumers will be less likely to have heard of the franchisor than the entrepreneur
Unlimited liability means that
the liability of of shareholders is limited to the amount they invested
cash flow is low
no profit is being made
that owners are held responsible for all debt and not just limited to the amount invested in the business.
An unincorporated business is one
that does not have a separate legal identity.
that has a separate legal identity.
that is a public sector business
that is a private sector business
