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N5 Business Management

Total questions: 71

Worksheet time: 35mins

Name
Class
Date
1.

Oxfam is a charity that operates in the Third Sector. Identify 2 other Sectors of Economy.

a)

Primary and Secondary

b)

Primary and Tertiary

c)

Private and Public

d)

Private and Third

2.

Give a description of the Private Sector.

a)

Owned by the government on behalf of the taxpayer.

b)

Owned by private individuals who aim to make a profit.

c)

Owned and regulated by the government and aim to raise funds and awareness

d)

Owned by a sole trader

3.

Enterprise is a Factor of Production. Identify the other Factors of Production.

a)

Land, Labour and Country

b)

Primary, Secondary and Tertiary

c)

Private, Public and Third

d)

Land, Labour and Capital

4.

Identify an example of an Entrepreneur.

a)
b)
c)
d)
5.

Outline ways a business can measure customer satisfaction.

a)

Customer surveys

b)

Provide high quality products

c)

Train staff well

d)

Online reviews

6.

Identify the aims of a charity.

a)

To make profit

b)

To satisfy customers

c)

To raise funds and awareness

d)

To survive

7.

This external factor looks at the trends and beliefs of the customer.

a)

Political

b)

Social

c)

Economic

d)

Competition

8.

Identify an internal stakeholder.

a)

Customer

b)

Banks and lenders

c)

Supplier

d)

Employee

9.

Identify an internal factor of an organisation.

a)

Political

b)

Environmental

c)

Technology

d)

Competition

10.

Which of the following images would come under the 'Environmental' heading in PESTEC?

a)
b)
c)
d)
11.

Give an influence of an employee.

a)

They can shop elsewhere

b)

They want job satisfaction and good working conditions

c)

They can take industrial action e.g. strike

d)

They can provide a poor service to the customer

12.

How do we choose our suppliers?

a)

They are our friends but their reputation for business is bad

b)

They are companies we don't know about

c)

They are dependable, reliable and offer competitive prices.

d)

They are as far away as possible

13.

Having an overstocked supply of goods means what for a business?

a)

Customers go to competitors

b)

All inventory never goes out of date

c)

Inventory is never at a risk of being stolen.

d)

Money is tied up in inventory so may cause cashflow problems

14.
Which source of finance is ONLY available to an Ltd or PLC company?
a)
Selling shares
b)
Bank loan
c)
Grants
d)
Retained profits
15.
What is the name for a large amount of money borrowed from a bank to pay for property/premises?
a)
Overdraft
b)
Loan
c)
Mortgage
d)
Debt
16.
Which source of finance involves getting rid of unwanted items that the company owns?
a)
Sale of liabilities
b)
Sale of assets
c)
Jumble sale
d)
Sale of equity
17.
Name the person who likes to take on risky investments in return for part ownership of the business?
a)
Adventurer
b)
Investor
c)
Donor
d)
Venture Capitalist
18.
What source of finance involves paying a deposit for an asset then making monthly payments, after which you own the asset outright.
a)
Leasing
b)
Renting
c)
Hire purchase
d)
Savings
19.
What is NOT a benefit of leasing?
a)
Can get to use asset quickly
b)
You own it after a certain period of time
c)
Asset is replaced if it becomes obsolete
d)
Do not need to pay out a large sum of money up front
20.
Which source of finance is only available to organisations in the public sector?
a)
Grants
b)
Selling shares
c)
Taxes
d)
Hire purchase
21.
Which source of finance do most sole traders use at the start of the business?
a)
Own savings
b)
Retained profits
c)
Donors
d)
Debentures
22.
What is the name of the document which is used to show future income and expenditure for a business?
a)
Cash budget
b)
Cash statement
c)
Income statement
d)
Income budget
23.
What is NOT a benefit of preparing a cash budget?
a)
helps determine profits for owners and shareholders
b)
ensures there will be enough cash to pay employees and suppliers
c)
will help business plan when to invest in new equipment
d)
helps to plan a bank overdraft or additional funding in advance of when needed
24.
What name is given to the situation of having excess cash expected at the end of next month?
a)
Cash surplus
b)
Cash deficit
c)
Cash profit
d)
Cash loss
25.
What name is given to the situation of having a negative cash balance expected at the end of next month?
a)
Cash surplus
b)
Cash deficit
c)
Cash profit
d)
Cash loss
26.
Identify the action below which would NOT help a cash deficit situation?
a)
Implement tighter inventory control and reduce wastage
b)
Negotiate a temporary overdraft with the bank
c)
Sell unwanted assets
d)
Award bonuses to staff to help motivate them
27.
What is the name given to fixed costs + variable costs?
a)
Overall costs
b)
Total costs
c)
Company costs
d)
Break-even costs
28.
If total costs are greater than sales, what will the company make?
a)
Neither a profit or loss
b)
A loss
c)
A profit
d)
A surplus
29.
Select the example of a variable cost from list below
a)
Rent
b)
Insurance
c)
Raw materials
d)
Bank loan repayments
30.
Select the example of a fixed cost from the list below
a)
Wages of piece rate staff
b)
Raw materials
c)
Machine fuel
d)
Light and heat
31.

Product

a)

The cost to the buyer of goods or services

b)

Informing customers about products and persuading them to buy them

c)

Where goods or services are available

d)

Goods or services that are sold

32.

Promotion

a)

The cost to the buyer of goods or services

b)

Where goods or services are available

c)

Informing customers about products and persuading them to buy them

d)

Goods or services that are sold

33.

Place

a)

Informing customers about products and persuading them to buy them

b)

The cost to the buyer of goods or services

c)

Goods or services that are sold

d)

Where goods or services are available

34.

Is this ...

a)

Price?

b)

Place?

c)

Promotion?

d)

Product?

35.

Is this...

a)

Place?

b)

Product?

c)

Promotion?

d)

Price?

36.

A marketing .............. refers to a business's overall plan for reaching prospective consumers.

a)

price

b)

promotion

c)

strategy

d)

place

37.

..................... are people who have a big social media following.

a)

Borrowers

b)

Investors

c)

Influencers

d)

Bankers

38.

When someone famous uses their own image to help promote a particular product, it is called ........... .

a)

billboard

b)

endorsement

c)

placement

d)

spread

39.

A ...................... is a special saying made from a few words that helps identify the company or brand.

a)

logo

b)

coupon

c)

banner

d)

slogan

40.

Process of gathering, analyzing, and interpreting information about market, product, or service to be offered for sale in the market, about the past, present and potential customers for the product or service.

a)

MARKETING PLAN

b)

MARKET RESEARCH

c)

MARKETING STRATEGY

d)

PRODUCT TESTING

41.

Pinterest, Instagram, Facebook are example of ........

a)

DISPLAY ADS

b)

PODCASTS

c)

SOCIAL MEDIA ADS

d)

VIDEO ADS

42.

Which of the following is the term for information that is second hand that has already been collected by someone else

a)

Field Research

b)

Desk Research

43.

Which of the following are disadvantages of Desk Research?

a)

May be out of date

b)

Expensive to collect

c)

Time Consuming

44.

Which of the following Pricing Strategies describes when you take the cost of producing a good and add on a percentage of profit to arrive at the selling price?

a)

Cost-plus pricing

b)

Low pricing

c)

Promotional Pricing

d)

High pricing

45.

Which of the following pricing strategies describes when the price of a product is lowered for a short period of time?

a)

Cost-plus pricing

b)

Loss leader

c)

Physiological Pricing

d)

Promotional Pricing

46.

Which of the following pricing strategies describes when a product is priced at £4.99 rather than £5.00 to give the buyer the impression they are getting a good deal.

a)

Loss Leader

b)

Cost Plus Pricing

c)

Psychological Pricing

d)

High Pricing

47.

Identify which of the following is NOT a market segment...

a)

Age

b)

Gender

c)

Favourite food

d)

Lifestyle

48.

Which stage in the Product Life Cycle would the IPhone 4 be in?

a)

Introduction

b)

Maturity

c)

Decline

d)

Growth

49.

"Products move along a production line and something is added to them at each stage." What method of production is this?

a)

Job

b)

Batch

c)

Flow

50.
The finished product is ready for consumers to purchase refers to:
a)
Output
b)
Input
c)
Process
51.

Holding too much inventory is called

a)

Understocking

b)

Overstocking

c)

Raw Materials

d)

Finished Goods

52.

What is the missing stage of the product life cycle?

(a)  

53.

At what point on the product life cycle do sales reach their highest level?

a)

Introduction

b)

Growth

c)

Maturity

d)

Decline

54.

Select the possible consequences of overstocking

a)

Cash flow problems as money is tied up and could be use din other places

b)

If trends change your stock may go out of fashion and be wasted

c)

Production may stop if there are not enough raw materials

d)

Customers may not get their orders in time

55.

Quality assurance is when...

a)

Products are checked throughout the production process

b)

Products are checked at the end of the production process

c)

Products are checked at the beginning of the production process

56.
Job Production uses mostly machines.
a)
True
b)
False
57.
How many methods of production are there?
a)
1
b)
2
c)
3
d)
4
58.
Which of the below are factors to consider when choosing a supplier.
a)
Cost of Raw Materials & Quality of Raw Materials
b)
Input, Process, Output
59.

Which of the following is not an impact of overstocking.

a)
Stock may go out of date
b)
You will not have enough stock to satisfy demand
c)
Stock may get stolen
d)
Money is tied up in stock
60.

The human resource management (HRM) function in a business deals with any issue relating to the management of staff (employees).

a)

True

b)

False

61.

What is the first stage of the recruitment process?

a)

Identify a job vacancy

b)

Carry out a job analysis

c)

Advertise the job

d)

Prepare a person specification

62.

People can apply for jobs by handing in a CV or by completing an application form.

a)

True

b)

False

63.

What two main ways can a business motivate its staff?

a)

Financial Incentives

b)

Non-financial Incentives

c)

Pat on the back

d)

Give them a thumbs up for finishing a job

64.

_________ refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants.

a)

Selection

b)

Training

c)

Recruitment

d)

Induction

65.

Benefits of a Motivated Workforce are:

a)

Increased productivity

b)

Lower absenteeism

c)

Higher staff turnover

d)

Less Tax

66.

Which financial method would include the employee being paid for additional hours worked?

a)

Time Rate

b)

Overtime Payment

c)

Piece Rate

d)

Commission

67.

Which payment system involves the employee being paid for every product they produce?

a)

Commission

b)

Salary

c)

Piece Rate Pay

d)

Time Rate Pay

68.

Trade unions support:

a)

Staff

b)

Customers

c)

Suppliers

d)

Community

69.
Job satisfaction can be defined as:
a)
being happy when work is finished
b)
being happy when more jobs come in
c)
being happy when an unemployed person finds a job
d)
being happy at work because of the type of job being done
70.
Off-the job training involves the employee attending courses away from their workplace e.g. at college or university.
a)
True
b)
False
71.

Identify whether the benefit is of on the job or off the job training.

Less expensive and tailored to the business.

a)

On the job training

b)

Off the job training