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Worksheets1.1 The dynamic nature of business
Total questions: 27
Worksheet time: 14mins
Items that can be seen and touched are known as...
Goods
Services
People who are part owners of a company are known as...
Stakeholders
Shareholders
Customers
People
Someone who starts, operates and assumes the risk of a business is known as an...
Investor
Interest person
Entrepreneur
Business inventor
A business with less than 20 employees can be classified as a...
Small business
Medium business
Large business
extra small business
A business that is owned and operated by a single person is known as a...
Partnership
Sole trader
Private company
Public company
What is e-commerce?
Conducting business transactions using a mobile device
Any business transaction that takes place using the internet
A business transaction that takes place in shop premises
Which best describes the adaption of a product
Making a product obsolete
Changing an existing product to appeal to new customers
The invention of a brand new product
Which of the following statements best describes a dynamic market?
A rapidly changing business environment
Buyers and sellers meeting to exchange goods and services
A shop opening
Which best defines an obsolete product?
An invention that is still being developed for the target market
A product that is out of date, and is near or at the end of its life
Popular products that are widely available
What is a target market?
A group of people or area of a market that a business aims to sell its products to
A group of people that would not want to buy a certain product
A place where buyers and sellers meet to exchange goods and services
If a sole traders business fails, could he lose his house to pay for his debts?
Yes
No
Profit is what?
The money you are paid by your customers
The money you have left after paying all your bills
The money you are owed by your suppliers
The money you have left in your bank
Are non-financial rewards a reason people may setup a business?
Yes
No
Which of these could be more important to an entrepreneur than money?
Personal Wealth
Recognition
A chance to do something new
Not taking risks
Independence is often seen as bonus to starting your own business, it means?
Being your own boss
Not being the boss
Being able to share the risks
Working for only one other company
What are two of the challenges an entrepreneur can face?
Stress
Having a stable income
Independence
Having no challenges
Sara decided to start-up a business as a personal trainer, due to her passion for fitness.
Which of the following is the main reason behind Sara’s business idea?
Earn more money
Pursue an interest
Be her own boss
Work more flexible hours
Increased concern from consumers over the environment has led to new business start-ups developing products from recycled materials. These business ideas have come about due to:
Services that have become obsolete
Products that have become obsolete
Changes in consumer demand
Changes in the interest rate
Which of the following statements best describes the term, reward?
The probability that something will go wrong
The chance of loss or damage
When a hoped for outcome does not happen
The benefits gained through business activity
Which of the following is a financial reason why an entrepreneur might start-up a new business?
To make a profit
To pursue a skill or interest
To have more freedom in decision-making
To achieve a work-life balance
Which of the following best describes the term, obsolete? When consumers:
Demand more of a particular product or service
Want, and can afford, to buy more products and services
Can no longer afford to buy a particular product or service
No longer want to buy a particular product or service
An entrepreneur has produced a shaving oil for customers with sensitive skin to eliminate any pain when shaving. This is an example of a business idea that:
Was developed and delivered to the market quickly
Solved a customer problem
Offered a cheaper way of doing something
Is aimed at a fast growing market
Lack of overall planning and poor decision-making can lead to business failure. This is known as:
Poor management
Poor quality
Poor understanding of the economy
Poor sales levels
A product or service is obsolete when sales:
Start to rise
Rise rapidly
Growth slows
Fall or come to an end
Which of the following statements is true in relation to goods and services?
Services can be touched and held, whilst goods are usually invisible
Goods can be touched and held, whilst services are intangible
Services are visible, whilst goods are usually invisible
Both goods and services are intangible
Which two of the following are examples of risk that can occur from business activity?
Select two answers:
Profit
Lack of security
Independence
Business success
Financial loss
Which two of the following increases the risk of business failure?
Select two answers:
Draws up a detailed business plan
Produces goods that do not meet customer needs
Makes a product that stands out from its competitors
Fails to carry out comprehensive market research
Offers exceptional customer service
