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WorksheetsBusiness Studies - Paper 1
Total questions: 40
Worksheet time: 20mins
Which of these businesses provides a service to customers?
Florist
Bakery
Dentist
Butcher
Rising interest rates are an example of a change in:
Legislation
Technology
Environmental expectations
The economic situation
Which of these businesses operates in the secondary sector?
Dyson
Cineworld
John Lewis
EE
Which of the following statements best describes an entrepreneur?
Someone who buys a product from a business
Someone who uses goods and services product by a business
Someone who works for a business
Someone who is willing to take the risk involved in starting a business
Which of the following best describes the term opportunity cost?
The benefits created by making a particular business decision
The opportunity created by making a particular decision
The financial cost of making a particular decision
The benefits given up by making a particular decision
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which of the following is an advantage of a business operating as a partnership over a soletrader?
Unlimited liability
Profits are shared
Shared responsibility
Financial accounts are kept private
Which of the following is a disadvantage of being a private limited company?
It has a separate legal identity and therefore continuity
Control is kept over who buys shares in the company
Shareholders’ personal possessions cannot be taken to pay any debts
A summary of the business’s accounts can be viewed by the public
UK supermarket, Tesco has opened stores all over the world. Which of the following objectives has the supermarket met?
Increasing customer satisfaction
International growth
Profit maximisation
Increasing shareholder value
Which of the following is the most likely objective of a large, established and highly profitable international business?
Market dominance
Making a profit
Survival
Domestic growth
Last year Marks & Spencer donated £130 million to community programmes. What type of objective is this an example of?
Shareholder
Growth
Social
Profit
Which of the following statements best defines the term market share?
The increase in total sales made by a business
The percentage increase in sales made by a business
The increase in total market sales
The percentage of total market sales made by one business
Which of the following stakeholders is most likely to have the objective of receiving high dividend payments?
Employees
Suppliers
Shareholders
Customers
Which of the following best describes the term supplier? An individual or organisation that provides a business with:
Demand
Raw materials
Labour
Capital
When a furniture manufacturer uses another business to produce sofas on its behalf it is known as:
Merger
Outsourcing
Takeover
Franchising
When Kraft acquired a controlling interest of Cadbury it was classed as a:
Merger
Takeover
Opening new stores
Franchise
Which of the following is an example of an economy of scale?
Reduced staff motivation
Purchasing
Poor communication
Coordination issues
Which of the following retailers is most likely to experience a rise in demand as consumer income falls?
M&S
Waitrose
Home Bargains
House of Fraser
Consumer spending is more likely to increase when:
Interest rates are rising
Employment levels are falling
Interest rates are falling
Unemployment levels are rising
Which of the following is most likely to occur as interest rates rise? Businesses:
Invest less money in the bank & borrow more money from the bank
Invest more money in the bank & borrow more money from the bank
Invest less money in the bank & borrow less money from the bank
Invest more money in the bank & borrow less money from the bank
Which of the following is covered under consumer law?
Employee rights
Product safety
National living wage
Safety in the workplace
Which of the following products is likely to be made using flow production?
A personalised birthday cake
A football stadium
A house extension
A branded can of soft drink
An advantage to a business of using flow production is that:
Unit costs will be high
Staff will usually be highly motivated
Productivity levels will be high
Each item produced will be different
A key component of lean production is:
Paying suppliers the minimum amount possible for materials
Managers telling staff what to do
Quality control
Just in time
Just in time means that:
A business holds minimal quantities of stock
A business holds large amounts of buffer stock
Zero hour contracts are issued to all staff
Customer orders cannot be accepted in advance
An advantage of a business using Total Quality Management is:
Quality standards are consistent in the business
Trained inspectors are used to check quality standards
A sample of products are checked regularly to meet quality standards
A checklist will be used by operatives to check quality standards
Which of the following principles is TQM built around?
All firms should introduce this quality method
All quality errors are passed onto managers for resolution
All products are checked at the end of the manufacturing process
All workers should aim to satisfy their internal or external customers
Which of the following is a benefit to an employee of a business providing excellent customer service?
Lower number of returns
Improved reputation in the marketplace
Customers may increase their spend with the business
Positive working environment
An electrical retailer offers a 3 year warranty on all purchases made. This is an example of which stage in the sales process?
Product knowledge
Closing the sale
Customer engagement
Post sales service
An employee that is directly below another employee in the organisational structure is classed as a:
Superior
Subordinate
Line Manager
Shop floor worker
Which of the following best describes the term decentralisation?
The business is organised into different functional areas
Key decisions are made by a small number of senior staff
The business is geographically widespread
Junior managers are given authority to make important decisions
Which of the following is an advantage of centralisation?
Decision making is consistent across the organisation
Increased motivation amongst junior managers
Reduces the pressure on senior managers
Increased staff involvement in the decision making process
Which of the following would be the most suitable place for a local plumbing firm to advertise for five new plumbers?
Convenience store window
Job centre
Daily national newspaper
Television
A benefit of using zero hour contracts to an organisation is that :
It will attract the best applicants to a role
Employees will have increased freedom over their working hours
It will reduce the total wage bill
Recruitment and selection costs will be reduced
Which stage in the recruitment process would immediately follow the advertisement of a vacant post?
Applicants apply for the position
Short list
Contract of employment
Interview
benefit to a business of having a highly productive workforce is that:
Total output will always increase
Demand will increase
Unit costs will fail
More staff can be employed
Which of the following is an example of a non-financial method of motivation?
Profit sharing
Commission
Performance related pay
Training
A benefit of having a high staff retention rate in a business is:
A large number of new employees need to be employed by the firm
Costs of recruitment and selection will fall
The business will undertake large amounts of induction training
Lots of new skills and experience will be brought into the workplace
A large retail chain has recently invested in a new customer ordering system in all of its branches. Which of the following types of training should the business use to ensure all staff are able to use the new system?
Self-learning
On the job training
Off the job training
Induction training
Which of the following is a benefit to a business of an employee receiving off the job training?
It is tailored specifically to the needs of the firm
It is usually cheaper than providing on the job training
New ideas can be brought into the business
Employees are able to produce whilst being trained
