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IGCSE Business Studies Revision Quiz - 1.1-1.3

Total questions: 33

Worksheet time: 16mins

Name
Class
Date
1.

Businesses including farming, fishing, forestry & the extraction of natural resources e.g. oil, minerals etc.

a)

Tertiary Sector

b)

Primary Sector

c)

Secondary Sector

d)

The economic problem

2.

Land, labour, capital and enterprise are collectively known as

a)

Goods and services

b)

Business cycle

c)

Factors of production

d)

Output

3.

Which of these is the best definition of the ‘economic problem’?

a)

People do not have enough money.

b)

There are not enough resources to satisfy people’s wants.

c)

There are too many factors of production.

d)

The amount of something produced by a person, machine or industry.

4.
Examples of tertiary sector companies include...
a)
Farming, fishing, mining
b)
Transport, banking, teaching, nursing, police
c)
Building, processing food, manufacturing
5.

What is 'added value'?

a)

is the next best alternative given up by choosing another item.

b)

is the difference between the selling price of a product and the cost of bought-in materials and components.

c)

It's a good or service essential for living.

d)

is the lack of sufficient products to fulfil the total wants of the population.

6.
Which of the following is an example of PRIMARY business activity?
a)
Factories
b)
Shops
c)
Schools
d)
Farmers
7.
Which of the following is an example of SECONDARY business activity?
a)
School
b)
Factories
c)
Shops
d)
Farmers
8.
Which of the following is an example of TERTIARY business activity?
a)
Schools
b)
Farmers
c)
Fishermen
d)
Factories
9.

Organisations run by central or local government are often referred to as

a)

Private sector

b)

Voluntary sector

c)

Public sector

d)

Mixed economy

10.

Which of these methods are NOT used to compare the size of a business?

a)

Capital employed

b)

Value of output

c)

Workers employed

d)

Added value

11.

One business merges with or takes over another business in the same industry but at a different stage of production.

a)

Horizontal integration

b)

Conglomerate

c)

Vertical integration

d)

Scarcity

12.

Which of these are NOT included in a business plan?

a)

A description of the market the business is targeting.

b)

Financial information including income statements, sources of capital etc.

c)

Which firms they plan to merge with.

d)

Organisation structure & management.

13.

When one business mergers with or takes over a business in a completely different industry.

a)

Internal growth

b)

Horizontal integration

c)

Vertical backwards integration

d)

Conglomerate integration

14.

What is an 'entrepreneur'?

a)

A person in charge of the business strategy.

b)

A person who lends the funds to set up a new business venture.

c)

A person who organises, operates and takes the risk of a new business venture.

d)

A group of people in charge of creating the business plan of a new venture.

15.

A clothing manufacturer buys a textile firm.

What type of business growth is it?

a)

Backwards vertical acquisition

b)

Forward vertical merger

c)

Horizontal integration

d)

Conglomerate

16.

The process of transferring ownership of a business from the public sector (government) to the private sector.

a)

Planned/Command economy

b)

Nationalisation

c)

Privatisation

d)

De-industrialisation

17.

When a business 'creates or adds value' it increases:

a)

the difference between the cost of purchasing raw materials and the price the finished goods are sold for

b)

the number of products it sells

c)

the difference between the cost of producing a product and the price for which it is sold

d)

the difference between the price of a product and the variable cost of its production

18.

The machinery that is used by a business is an example of which factor of production?

a)

land

b)

labor

c)

capital

d)

enterprise

19.

The most likely difficulty for new business start-ups is:

a)

obtaining finance

b)

identifying a market

c)

marketing

d)

finding suitable employees

20.

What is opportunity cost?

a)

the value of the next best option that is not selected when a choice is made.

b)

there is not enough of it.

c)

things people make to earn money.

d)

actions people do to earn money.

21.

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?

a)

fishing with a friend

b)

going to a concert

22.

An individual who has an idea for a business and takes the financial risk of starting and managing a new business.

a)

managers

b)

entrepreneurship

c)

entrepreneur

d)

leaders

23.

Why do you need to make a business plan as a business owner? (two answers)

a)

It is an annual procedure for every business to do.

b)

It gives sense of purpose and direction

c)

It could help you to gain financial support for your business from lenders, e.g. banks.

d)

It gives your competitors sense of competition to provide better products for consumers in the same industry.

24.

Business start-up! What is it?

a)

an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities

b)

A business that is formed and registered under any of the previous companies' laws.

c)

A newly formed business. It usually starts small, but some might grow to become much bigger

d)

a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses; a sole proprietor.

25.

Here are the reasons why the government support business start-ups, except.....

a)

Job creation

b)

Support the economy for the region

c)

Provide a variety of goods and/or services

d)

Reduce the competition in the same industry

26.

How does a government support business start-ups? (2 answers)

a)

no tax paid for the first several years

b)

grants and interests free or low-interest loans

c)

rent-free premises for workers

d)

help to provide information, advice, and support from specialist agencies (consultant)

27.

One way to measure a business is by seeing the percentage earned of that business against the total revenue of all businesses in the same industry.

a)

capital employed

b)

value of output

c)

market share

d)

number of employees

28.

The command term “Define” is worth 2 marks in your exam. This question is looking for the skill of...

a)

Analysis

b)

Application

c)

Knowledge

d)

Evaluation

29.

The command term “Identify” is worth 2 marks in your exam. This question is looking for the skill of...

a)

Analysis

b)

Application

c)

Knowledge

d)

Evaluation

30.

The command term “Outline” is worth 4 marks in your exam. This question is looking for the skills of...

a)

Knowledge and Analysis

b)

Knowledge only

c)

Knowledge and Evaluation

d)

Knowledge and Application

31.

The command term “Explain” is worth 6 marks in your exam. This question is looking for the skills of...

a)

Knowledge, Analysis and Evaluation

b)

Knowledge, Application and Analysis

c)

Knowledge, Application and Evaluation

d)

Knowledge, Application, Analysis and Evaluation

32.

You will be asked to "Justify" your responses in your exam. This question is looking for the skills of..

a)

Knowledge, Application, Analysis and Evaluation

b)

Knowledge, Application and Evaluation

c)

Knowledge, Analysis and Evaluation

d)

Application, Analysis and Evaluation

33.

The most important thing to remember when asked to "justify" a response in Business Studies is to (a)   the response