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S3 Understanding Business

Total questions: 25

Worksheet time: 25mins

Name
Class
Date
1.

Why do businesses exist ?

a)

To provide a good or service to customers/ make a profit

b)

To fulfil customer’s needs and wants

c)

To develop an idea/fill ina gap in the market

d)

All of the previous answers

2.

What is the difference between a need and a want ?

4 lines
3.

Goods are the products we can see and touch. True or False?

a)

True

b)

False

4.

What are durable goods ?

a)

Goods that can be used more than once

b)

Goods thats cannot be used more than once

5.

Which of the following are examples of non-durable goods?

a)

Bread

b)

Car

c)

Coffee

d)

Mobile phone

6.

Which of the following are the Factors of Production?

a)

Land

Labour

Buildings

Enterprise

b)

Land

Labour

Capital

Enterprise

c)

Land

Wages

Capital

Enterprise

7.

Describe the role of an entrepreneur

4 lines
8.

What are the Sectors of Industry?

a)

Primary

Secondary

Public

b)

Primary

Secondary

Tertiary

c)

Private

Public

Third

9.

The secondary sector involves providing a service. True or False?

a)

True

b)

False

10.

What do organisations in the primary sector do ?

a)

Provide a service

b)

Extract raw materials from the ground

c)

Use raw materials and make something with them

11.

What are the Sectors of the Economy?

a)

Primary

Secondary

Tertiary

b)

Private

Public

Third

c)

Private

Public

Primary

12.

Name three features of a Sole trader?

4 lines
13.

Who owns a Public Limited Company (PLC)

a)

Government on behalf of the UK population

b)

Shareholders

c)

Partners

14.

Shareholders have limited liability. What does this mean?

a)

The money they make can make in dividends will be capped

b)

They will only lose the value of their shares and not their private assets or belongings

c)

The will lose their own personal assets and belongings if the business has debts.

15.

A social enterprise aims to make profits but what do they use their profits for ?

4 lines
16.

A social enterprise belongs in which Sector of the Economy ?

a)

Private

b)

Public

c)

Third

17.

Increasing market share is one of the main objectives of private sector organisations. What does this mean?

4 lines
18.

How can you increase market share ?

a)

By cutting prices to be more affordable

b)

By Increasing money spent on advertising

c)

By opening a store in a new area

d)

All of the previous answers

19.

Identify 2 ways that businesses could increase customer satisfaction

4 lines
20.

Does PESTEC refer to internal or external factors affecting businesses ?

a)

Internal

b)

External

21.

What does the ‘P’ represent in PESTEC

a)

Place

b)

Political

c)

Promotion

d)

Price

22.

What kind of stakeholder is an employee?

a)

Internal

b)

External

23.

What interest does an employee have in an organisation.

4 lines
24.

Are suppliers internal or external stakeholders?

a)

Internal

b)

External

25.

Why would suppliers be interested in an organisation and how it is performing ?

4 lines