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HBM Understanding Business Exam Revision

Total questions: 35

Worksheet time: 19mins

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.

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

a)

Private sector

b)

Voluntary sector

c)

Public sector

d)

Mixed economy

3.
Examples of tertiary sector companies include...
a)
Farming, fishing, mining
b)
Transport, banking, teaching, nursing, police
c)
Building, processing food, manufacturing
4.
Which of the following is NOT one of the benefits of business growth?
a)
Sales will increase.
b)
Market share will probably rise.
c)
The business will probably become more secure.
d)
Management will have less work to do.
5.

Which of these business activities are usually NOT in the public (government) sector?

a)

grocery stores

b)

health

c)

defence

d)

public transport

6.

How many Sectors of Industry are there?

a)

3

b)

7

c)

4

d)

5

7.

The Sectors of Industry are…..

a)

Secondary

b)

Third

c)

Primary

d)

Tertiary

8.

A PLC is owned by

a)

Shareholders

b)

Managers

c)

Board of Directors

d)

Family and Friends

9.

A PLC is controlled by

a)

Shareholders

b)

Board of Directors

c)

Managers

d)

Family and Friends

10.

External Factors are

a)

Political, Economic, Social, Technological, Environmental, Competitive

b)

Political, Ergonomic, Social, Technological, Environmental, Competitive

c)

Police, Economic, Standard, Technological, Expected, Corporate

d)

Public, Expected, Standards, Technical, Electronic, Corporate

11.

Choose 2.

Businesses might aim to grow to...

a)

Increase the number of customers which will increase profits and market share

b)

To take advantage of economies of scale, thereby reducing costs

c)

To decrease the return on investment for owners

12.

Which of the following are methods of growth?

a)

Merger

b)

Investment

c)

Diversification

d)

Forward Vertical Integration

13.

Backward vertical integration means...

a)

Taking over a supplier

b)

Taking over a customer

14.

Forward vertical integration means...

a)

Taking over a supplier

b)

Taking over a customer

15.

Diversification means...

a)

When a business splits into 2 or more separate businesses

b)

When 1 business introduces different goods and services different to their original business idea

c)

When 2 businesses that provide different goods and services join together

d)

When a business sells off some of its assets to raise finance

16.

Divestment means...

a)

When a large business takes ownership and control of a smaller one

b)

When 2 businesses approximately the same size join together

c)

When a business sells off some of its assets or smaller parts of the business to raise finance

17.

A merger is when...

a)

2 businesses who trade in the same market join together

b)

2 businesses of approximately the same size join together

c)

2 businesses providing the same service join together

18.

What type of structure is shown above?

a)

Flat Structure

b)

Tall Structure

c)

Matrix Structure

d)

Entrepreneurial Structure

19.

A Tall Structure is...

a)

An organisational structure with many levels of hierarchy and a narrow span of control.

b)

An organisational structure with many levels of hierarchy and a wide span of control.

c)

An organisational structure limited levels of hierarchy and a narrow span of control.

d)

An organisational structure limited levels of hierarchy and a wide span of control.

20.

A Flat Structure is...

a)

An organisational structure with many levels of hierarchy and a narrow span of control.

b)

An organisational structure limited levels of hierarchy and a wide span of control.

c)

An organisational structure with many levels of hierarchy and a wide span of control.

d)

An organisational structure limited levels of hierarchy and a narrow span of control.

21.

If a business is looking to save money, what could they do with their business structure?

a)

De-merger

b)

Delayering

c)

Deintegration

22.
Actions that the government take are considered:
a)
Political
b)
Environmental
c)
Economic
d)
Social
23.
If the UK government introduce a new law this is considered what kind of factor?
a)
Economic
b)
Political
c)
Technological
d)
Competitive
24.
The country is in recession and there is high unemployment what kind of factor is this?
a)
Social
b)
Technological
c)
Economic
d)
Political
25.
Interest Rates have been recently increased.  What kind of factor is this?
a)
Political
b)
Technological
c)
Competitive
d)
Economic
26.
Celebrities on social media using a businesses product is an example of:
a)
Economic Factor
b)
Social Factor
c)
Political Factor
d)
Competitive Factor
27.
An ice cream seller is subject particularly to:
a)
Technological Factors
b)
Economic Factors
c)
Environmental Factors
d)
Competitive Factors
28.
Businesses must take more care over recycling and sustainability.  What kind of factor is this?
a)
Economic
b)
Environmental
c)
Social
d)
Technological
29.
Renfrewshire council had increased the cost of removing waste material from businesses in the local area.  What is this an example of?
a)
Political and Environmental Factors
b)
Social and Environmental Factors
c)
Economic and Environmental Factors
d)
Economic and Technological Factors
30.
A local newsagent has discovered a new shop has opened round the corner from them selling similar items and open for longer hours.  What is this an example of?
a)
Social Factors
b)
Economic Factors
c)
Environmental Factors
d)
Competitive Factors
31.
A business generally has to react to competitive factors otherwise they are likely to suffer from
a)
Higher sales and profits
b)
Lower sales and lower profits
c)
Increased customers
d)
Lower quality
32.

PESTEC factors may positivly or negativly affect decision making

a)

True

b)

False

33.

What internal factions can cause difficulties in making decisions

a)

Finance Available

b)

Skills of Employees

c)

Legislation

d)

Number of Employees

e)

Quality of the Decision Maker

34.

Making quality decisions DOES NOT require Quantitative and Qaulitative data

a)

False

b)

True

35.

The role of the manager when making decisions is to plan, organise, command, control, coordinate, delegate and (a)