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Revision National 5 Business 2022

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

The factors to be considered before choosing a supplier is called....

a)

The Supplier Factors

b)

Material Category

c)

Supplier Choice

d)

The Purchasing Mix

2.

Which of the following is a method of internal recruitment?

a)

Company Intranet

b)

National Press

c)

Recruitment Agencies

3.

What is the finance department responsible for?

a)

Looking after employees

b)

Communicating with customers

c)

Manufacturing the products

d)

Managing the business finances

4.

Which one is NOT a stage in the product life cycle?

a)

Maturity

b)

Growth

c)

Decline

d)

Development

5.

What are the MINIMUM number of partners in a partnership?

a)

1

b)

2

c)

10

d)

20

6.

Which method of production is being described here....

'Where a single product is custom made to meet customer's own specification'

a)

Job

b)

Batch

c)

Flow

d)

Automation

7.

What is the name of the document that is used to show future income and expenditure for a business?

a)

Cash Budget

b)

Cash Statement

c)

Income Statement

d)

Income Budget

8.

What external factor may mean that a company has to purchase new health and safety equipment which will lowers profits and increases costs?

a)

Political / Legislation

b)

Social

c)

Economic

d)

Environmental

9.

Each business needs to decide where to locate. Which factor is NOT a main consideration?

a)

Being close to customers

b)

Availability of potential employees with correct skills

c)

Availability of suitable premises

d)

Availability of machinery especially for flow production

10.

A manager is an external stakeholder

a)

True

b)

False

11.

Which is NOT an advantage of training?

a)

Can improve employee productivity

b)

Can create a multi-skilled workforce

c)

Can help prepare staff for a promotion outwith the company

d)

Increases staff morale, motivation and job satisfaction

12.

Which source of finance is NOT available to ALL types of business organisations?

a)

Selling shares

b)

Selling unwanted assets

c)

Grants

d)

Leasing

13.

What is NOT a reason for having to fill a vacancy within a business?

a)

Employee securing employment with another company

b)

Internal promotion within the company

c)

Employee being awarded Employee of the Month

d)

Employee being sacked for being incompetent

14.

Which factor of the Purchasing Mix does this statement represent....

'Must be considered if the company wants to reduce wastage and complaints from customers.'

a)

Price

b)

Quality

c)

Quantity

d)

Reputation

15.

What are the names of the TWO TYPES of Market Research?

a)

Desk and Field

b)

Primary and Tertiary

c)

Secondary and Tertiary

d)

Desk and IT Based

16.

Which type of recruitment would use this method to advertise a vacancy?

Employment Agencies

a)

Internal

b)

External

17.

What is marketing?

a)

A company identifying, anticipating and satisfying the needs and wants of customers

b)

A company advertising their products and services for sale

c)

A company carrying out research on customer needs

d)

When a company promotes itself and tries to beat a competitor

18.

Which of the following is NOT an advantage of a bank loan?

a)

Interest charged

b)

Repaid in instalments

c)

Arranged relatively quickly

d)

Repaid over a period of time

19.

Inventory Control. There are four factors in inventory (stock) control. Which one is being described here?

'This is the amount of inventory that should be ordered once the trigger point has been reached.'

a)

Maximum inventory (stock) level

b)

Minimum inventory (stock) level

c)

Re-order level

d)

Re-order quantity

20.

What is NOT a factor of production?

a)

Advertising

b)

Labour

c)

Land

d)

Enterprise

21.

What is an example of the sector of industry?

a)

Private

b)

Secondary

c)

Public

d)

3rd Sector

22.

Product is one of the 4P's of Marketing. Which is the best description of Product?

a)

The item the customer purchases which includes, packaging, image, guarantee and after sales service

b)

The actual amount charged by the seller and paid for by the customer

c)

Where the customer meets the seller and makes the purchase

d)

The way in which the customer is made aware of the product and is persuaded to buy

23.

Which is NOT a disadvantage of UNDERstocking?

a)

A business might not be able to cope with an unexpected order which will upset customers

b)

Production may have to stop which means staff will be paid for not working

c)

More frequent rush orders will need to be placed which increases admin costs

d)

Greater risk that inventory will deteriorate or be stolen

24.

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 an overdraft or additional funding in advance of when needed

25.

Which type of recruitment is this statement an advantage of?

New staff appointed will bring into the company additional skills and ideas which will help the business grow

a)

Internal

b)

External

26.

There are two Sectors of Economy

a)

True

b)

False

27.

The main aim of organisations in the Private Sector is to maximise profits for their owners

a)

True

b)

False

28.

The Public Sector includes organisations such as Renfrewshire Council and the NHS

a)

True

b)

False

29.

The names given to owners of Private Sector organsiations are Sole Traders, Partners or Shareholders

a)

True

b)

False

30.

The Private Sector is owned by individuals or groups of individuals

a)

True

b)

False

31.

A company must decided which method of distribution to use to get products to customer/retailer. Which statement is an advantage of using lorries on the road?

a)

It is a quick method for long distances

b)

It is a direct method from door to door

c)

It is not affected by external factors such as breakdowns or traffic jams

d)

Diesel lorries are very environmentally friendly

32.

 A company must decided which method of distribution to use to get product to customer/retailer. Which statement is an advantage of using container ships?

a)

It is a cheaper method for long distances

b)

It is a direct method from door to door

c)

Container ships can leave with small loads

d)

It is flexible regarding delivery times

33.

Which below is an example of a current trend in retailing?

a)

Move to open bigger and bigger supermarkets

b)

Shops reducing their opening hours

c)

Increase in small, independent shops

d)

Increase in e-commerce retailers

34.

Which method of distribution would most likely be use to send daily newspapers across the UK?

a)

Aeroplane

b)

Container Ship

c)

Rail

d)

Road

35.

Which is NOT a disadvantage of OVERstocking?

a)

High storage costs e.g. warehouse staff costs and rental of space

b)

Company money is tied up which could be used more effectively elsewhere

c)

A business will not be able to cope with an unexpected rush order

d)

Higher risk of theft and deterioration of stock

36.

The risk of dissatisfied customers who do not get their deliveries on time is a disadvantage of ....

a)

Understocking

b)

Overstocking

37.

Higher costs such as warehousing, security and rental of larger store rooms is a risk of ....

a)

Understocking

b)

Overstocking

38.

What action might a supermarket manager take when his computerised inventory control system spots a slow moving item?

a)

Have a promotion activity (e.g. BOGOF) to increase sales 

b)

Order more to take advantage of bulk buying discounts

c)

Increase the maximum inventory level to be held for that item

d)

Discipline staff for understocking

39.

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

40.

Which source of finance is only available to organisations in the public sector?

a)

Grants

b)

Selling Shares

c)

Taxes

d)

Hire Purchase

41.

Which is NOT a disadvantages of selling shares to raise finance?

a)

Dividends are paid to shareholders

b)

Ownership is diluted and original shareholders have less control

c)

It is more expensive as interest must be paid

d)

Fees to produce legal share documents can be high

42.

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

43.

There are three main types of training. Which is type below is incorrect?

a)

On the job training

b)

Can create a multi-skilled long life training

c)

Off the job training

d)

Induction training

44.

 On the job training which involves a trainee learning new tasks in different departments for short periods of time is called

a)

Work shadowing

b)

Job rotation

c)

Coaching

d)

Job enhancement

45.

Off-the job training involves the employee attending courses away from their workplace e.g. at college or university.

a)

True

b)

False

46.

Identify whether the benefit is of on the job or off the job training. There will be less distractions from day-to-day work demands

a)

On the job training

b)

Off the job training

47.

What external factor may make it more expensive to pay back a bank loan which may mean a company will delay any big plans that a company has to expand

a)

Political / Legislation

b)

Economic

c)

Social

d)

Environmental

48.

What external factor may mean that the company has greater sales due to a 'boom' which means higher dividends for to owners or profits to use to purchase new machinery and become more efficient

a)

Political / Legislation

b)

Economic

c)

Social

d)

Environmental

49.

What external factor may mean that suppliers cannot deliver raw materials due to bad weather and customer orders are delayed as a result

a)

Political / Legislation

b)

Economic

c)

Social

d)

Environmental

50.

What external factor may mean that the company needs to consider using social media to communicate with customers if they wish to attract new clients

a)

Technological

b)

Economic

c)

Social

d)

Environmental

51.

The collapse of the UK steel industry is mainly due to cheap imports from China who have 'over-produced'. This is an example of what external factor?

a)

Political

b)

Social

c)

Environmental

d)

Competition

52.

The strength of £ sterling against the euro in 2015 meant that it was dearer for companies abroad to purchase UK goods. This is an example of which external factor

a)

Political

b)

Social

c)

Economic

d)

Competition

53.

In many towns, fast food outlets such as McDonalds are suffering from falling sales due to a preference for more healthy snacks. This is an example of which external factor?

a)

Political

b)

Social

c)

Competition

d)

Economic

54.

Identify whether the stage below is part of the RECRUITMENT or part of SELECTION process

Prepare a job description.

a)

Recruitment Process

b)

Selection Process

55.

 Identify whether the stage below is part of the RECRUITMENT or part of SELECTION process.Identify that the vacancy exists.

a)

Recruitment Process

b)

Selection Process

56.

 Identify whether the stage below is part of the RECRUITMENT or part of SELECTION process.

Carry out one-to-one or panel interviews

a)

Recruitment Process

b)

Selection Process

57.

Which stage has rapid sales?

a)

Introduction

b)

Maturity

c)

Decline

d)

Growth

58.

What is a product extension?

a)

Longer production time

b)

Products with extension feature

c)

Strategies to keep the product from declining

d)

Products that keep going through the different stages

59.

Which stage has the least production costs?

a)

Introduction

b)

Maturity

c)

Decline

d)

Growth

60.

What stage has numbers of prototypes?

a)

Introduction

b)

Growth

c)

Maturity

d)

Decline

61.

What stage will have decreases in production?

a)

Introduction

b)

Growth

c)

Maturity

d)

Decline

62.

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

63.

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

64.

 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

65.

Which source of finance is only for limited companies?

a)

Bank loan

b)

Share issue

c)

Mortgage

d)

Overdraft

66.

Aimee has just received an unexpected bill, which source of finance would you suggest?

a)

Savings

b)

Retained Profits

c)

Bank loan

d)

Bank overdraft

67.

What are fixed costs?

a)

Costs which vary in line with production

b)

Costs which stay the same regardless of production levels

c)

Costs incurred by the customer

68.

How are total costs calculated?

a)

Fixed Costs + Variable Costs

b)

Fixed Costs - Variable Costs

c)

Sales - Fixed Costs

d)

Sales - Variable Costs

69.

 

What is an income statement?

a)

Shows the businesses cash flow

b)

Shows how much money the business has borrowed

c)

Shows the value of the business

d)

Shows the profit or loss made by a business

70.

What is the gross profit?

a)

Overall profit made

b)

Profit from selling goods

c)

Money from sales

71.

Which of the following is an example of an expense?

a)

Purchases

b)

Sales

c)

Inventory

d)

Wages

72.

 Jacob's decide to build a new factory in the local area what stakeholders would have an influence on this?

a)

Customers, employees and the local community

b)

Local community, banks and the government

c)

Suppliers, banks and the local community

d)

Customers, banks and the government

73.

Jacobs decide to employ a new manager who would be interested in this decision?

a)

Employees, managers and owner

b)

Customers, government and banks

c)

Suppliers, banks and local community

d)

Banks, government and suppliers

74.

 What is the missing word in this sentence ...Wealth is created by adding _____________ 

a)

Layers

b)

Services

c)

Products

d)

Value

75.

Which sector of industry provides a service such as entertainment, beauty, banking etc?

a)

Tertiary

b)

Secondary

c)

Primary

d)

Private

76.

. Select which business organisation would be found in the private sector

a)

Local Government such as Renfrewshire Council

b)

Sole Trader

c)

Social Enterprise companies such as Fresh

d)

Non-profit making organisation such as the BB

77.

 Which is NOT a benefit of being a sole trader?

a)

All profits are kept by owners

b)

Easy to set up with no official paperwork such as Memorandum of Association needed

c)

Unlimited liability for sole trader

d)

Owner makes all the decisions without having to consult anyone else

78.

Which is not a benefit of being in a partnership?

a)

Different partners can bring in different skills to help improve the business

b)

Finance can be raised more easily

c)

Workload and responsibility can be shared

d)

Profit is split between the different partners

79.

What does Ltd mean?

a)

Private Limited Company

b)

Public Limited Company

c)

Private Licenced Company

d)

Public Licenced Company

80.

What type of research is being described here? It involves using second hand information already gathered for another purpose

a)

Desk

b)

Field

c)

Primary

d)

Secondary

81.

What type of research is being described here? It involves gathering brand new, first-hand information for a specific purpose

a)

Desk

b)

Field

c)

Primary

d)

Secondary

82.

. What type of research is this an advantage of? Information will be up-to-date and best currently available

a)

Desk

b)

Field

c)

Primary

d)

Secodary

83.

What type of research is this an advantage of? Information will not be available to rivals therefore is very valuable

a)

Desk

b)

Field

c)

Primary

d)

Secondary

84.

Which METHOD of research is being described here?It is conducted face-to-face with customers and a series of questions are asked

a)

Personal Interview

b)

Telephone Survey

c)

Online Survey

d)

Focus Group

85.

Which METHOD of research is being described here? A company gathers a small group of customers together at the same time, led by a chair person who encourages discussion

a)

Personal Interview

b)

Telephone Survey

c)

Online Survey

d)

Focus Group

86.

. Which METHOD of research is being described here? Where products are given to customers (gathered in one location) to try and feedback is obtained e.g. in a supermarket aisle

a)

Postal Survey

b)

Hall Test

c)

Customer Panel

d)

EPOS

87.

Inventory Control. There are four factors in inventory (stock) control. Which one is being described here?

'this is the amount of inventory which should be ordered once the trigger point has been reached.'

a)

Maximum Inventory (Stock) level

b)

Minimum Inventory (Stock Level)

c)

Re-order Level

d)

Re-order Quantity

88.

Inventory Control. There are four factors in inventory (stock) control. Which one is being described here?

'this is the lowest level of inventory which should ensure the company does not run out and avoids expensive production delays and customer dissatisfaction'.

a)

Maximum Inventory (Stock) Level

b)

Minimum Inventory (Stock) Level

c)

Re-order Level

d)

Re-order Quantity

89.

Higher costs such as warehousing, security and rental of larger store rooms is a risk of ...

a)

Understocking

b)

Overstocking

90.

The risk of dissatisfied customers who do not get their deliveries on time is a disadvantage of ..

a)

Understocking

b)

Overstocking

91.

The potential loss of bulk buying discounts and increased cost of rush orders is a disadvantage of ...

a)

Understocking

b)

Overstocking

92.

Which is NOT a disadvantage of OVERstocking?

a)

High storage costs e.g. warehouse staff costs and rental of space

b)

Company money is tied up which could be used more effectively elsewhere

c)

A business will not be able to cope with an unexpected rush order

d)

Higher risk of theft and deterioration of stock

93.

 Which is NOT a disadvantage of UNDERstocking?

a)

A business might not be able to cope with an unexpected order which will upset customers

b)

Production may have to stop which means staff paid for not working

c)

Greater risk that inventory will deteriorate or be stolen

d)

More frequent rush orders will need to be placed which increases admin costs

94.

What is a job description?

a)

A form consisting of pre-prepared questions set by the organisation

b)

A document that states the tasks and responsibilities of a job

c)

A document that states the skills and qualifications needed to do the job

95.

What type of training would include a tour of the premises, introduction to colleagues and a basic run through of health and safety information?

a)

On the job

b)

Off the job

c)

Induction

96.

Which type of recruitment is this statement an advantage of?It allows the vacancy to be filled much more quickly than the alternative method.

a)

Internal

b)

External

97.

 Identify whether the stage below is part of the RECRUITMENT or part of SELECTION process. Prepare a job description.

a)

Recruitment Process

b)

Selection Process

98.

The private sector is mainly funded through donations and fund raising activities.

a)

True

b)

False

99.

The Public Sector aims to provide a good service to the public and stay within their budget limits.

a)

True

b)

False

100.

I am going to revise well and I know I can ask my teacher for help and support anytime. I will do my absolute best in my exam as I am awesome : )

a)

True

b)

False