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WorksheetsTheme 2 - Last Minute Revision
Total questions: 81
Worksheet time: 45mins
who has unlimited liability
stakeholder
sole trader
partnership
public limited company
which one of the following is not an example of a barrier to international trade?
quota
exchange rate complications
tariff
globalisation
explain one advantage to a business of being a public limited company?
that only public limited companies can raise share capital
an incorporated business that can sell shares to the public
ability to rise additional finance
limited liability
Internal growth is also known as
Merger
Sales maximisation
Organic growth
Inorganic growth
External growth is also known as
Organic growth
Inorganic growth
Merger
Sales maximisation
An example of inorganic growth is
Increasing sales
Merger
Developing new products
Opening new retail stores
An example of Organic growth is
Merger
Launching new products
Acquisition
Takeover
The possible benefits of growing the business are
Keeping control over decision making
Larger potential profits
Reduced costs via Economies of Scale
Security
A merger is
Two business agreeing to becoming one new business
One business buying shares in another business
One business taking over control of another business
Two businesses co operating with each other.
The possible advantages inorganic growth are
A business that grows from within can retain their own company culture
Higher production means the business can benefit from economies of scale and lower average costs
It is a fast instant method of growth
More influence comes with more market share, the business can start setting prices for the industry
The disadvantages of Organic growth are
There is little or no risk in growing slowly
This is a very high risk strategy, opening lots of stores or taking on new staff is very risky
Long period between investment and return on investment
Growth may be limited and is dependent on reliability of sales forecasts
Which is a benefit of inorganic growth?
Often easier to manage and control than internal growth
Market share can be increased overnight
Tends to be less expensive than organic growth
Growth is often slow
Internal sources of finance are?
the business finding the money that it needs itself, for example through selling an asset or through using the profits that it has
the business will need to borrow the money to expand somehow, this includes loans, shares and even floating on the stock market
Private Limited Companies (Ltd) can raise Share Capital by selling shares to anyone?
True
False
Public Limited Companies (PLC's) can raise Share Capital by selling shares to anyone?
True
False
Which of the following is NOT usually considered a personal source of finance.
Savings
Redundancy payments
Crowdfunding
Credit card
An amount of money that is paid back within an agreed amount of time, with interest
Bank loan
Angel investment
Overdraft
Retained profit
Case study: Apple plans to develop a prototype for an iPhones with a flexible display. Which of the following sources of finance would be most appropriate?
Retained profits
Selling shares
Crowdfunding
Bank loan
Which of the following is the correct order of organizational levels?
Middle managers, supervisors, operative employees, top management
Operative employees, supervisors, middle managers, top management
Middle managers, operative employees, supervisors, top management
Operative employees, middle managers, supervisors, top management
Which of the following is the term used to describe a business where key decisions are made at head office?
Hierarchical organisational structure
Flat organisational structure
Centralised business
Decentralised business
Which of the following is a feature of a flat organisational structure?
Rigid rules
A more flexible approach to decision making
Many levels in the hierarchy
More promotional opportunities for employees
In which of the following situations would decentralisation be the most appropriate?
When directors wish to keep a tight control on all areas of decision-making within the organisation
When standardisation of products and outlets is required
When the business wants to give local managers more authority to make key decisions
When a strong corporate image is important to business success
Which of the following is an advantage of a centralised business?
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 organisations is most likely to be decentralised?
A hotel chain that aims to solve customer complaints in any of its hotels immediately
A national fast food chain that prides itself on consistent levels of customer service across all of its outlets
A national clothes retailer that wants to offer customers the same product range in all branches and benefit from bulk buying stock
A chain of coffee shops that aims to offer the same experience to customers regardless of the outlet visited
Which of the following is a benefit to a business of having a hierarchical organisational structure?
There will be a flexible approach to decision making
More responsibility is given to employees lower down the hierarchy
Communication is likely to be faster
More promotion opportunities available for staff
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 situations would be most suited to a hierarchical organisational structure?
An established sole trader organisation with three employees
Where the business needs to make quick decisions involving all staff
Where managers wish to keep a tight control over their staff
A new business start-up with five staff members
Which of the following is a key feature of centralisation?
Major decisions are made by a small number of senior staff
Major decisions are made by junior staff
Delegation is actively used in the organisation
Branch managers have full decision making power
An organisation with few layers of hierarchy
Span of control
Flat structure
Tall structure
Responsibility
Which of the following is a key feature of centralisation?
Major decisions are made by a small number of senior staff
Major decisions are made by junior staff
Delegation is actively used in the organisation
Branch managers have full decision making power
Which of these is NOT a monetary method of motivation?
Comission
Pay Rise
Recognition
Bonuses
Which of these roles would most likely be motivated by commission?
Financial Director
Sales Assistant
Manager
Producer
Motivating staff by giving them additional responsibility is known as ...
Delegation
Delayering
Job Enrichment
Job Rotation
When workers take a percentage of profits from the company they work for, what is this called?
Bonus
Fringe Benefits
Profit-sharing
Salary
A highly motivated workforce will not lead to higher levels of
productivity
quality
labour turnover
customer service
Rewards you get from work other than pay, such as a company car or phone
Salary
Autonomy
Fringe benefits
Commission
Which option is a benefit to a business of employing a motivated workforce?
Labour turnover increases
Employee retention decreases
Reduced numbers of job vacancies
Labour productivity decreases
Which option is an example of a non-financial method of motivation?
Autonomy
Commission
Bonus
Perks
Which of the following methods would an environmentally responsible business use to manage waste?
Send all waste to landfill
Reduce the amount of waste created and recycle where possible
Incinerate waste
Use non-recyclable packaging
Which of the following statements best describes the term ethical behaviour? When a business behaves in a way that:
Is classed a morally wrong
Minimises costs
All stakeholders consider fair and honest
Maximises profits
Which option best describes the term globalisation?
Goods purchased from overseas by UK businesses and consumers
The process by which the world is increasingly becoming one market
When a business produces goods in more than one country
When goods and services are made in one country and sold in another
Which of these is NOT a monetary method of motivation?
Comission
Pay Rise
Recognition
Bonuses
Motivating staff by giving them additional responsibility is known as ...
Delegation
Delayering
Job Enrichment
Job Rotation
A highly motivated workforce will not lead to higher levels of
productivity
quality
labour turnover
customer service
Rewards you get from work other than pay, such as a company car or phone
Salary
Autonomy
Fringe benefits
Commission
A Permanent Contract is
An agreement over one job usually over a couple of months between a company and self-employed worker.
A contract between a company and an employee that doesn’t specify how many hours of work will be provided
An agreement between a company and an employee that work and income will be provided constantly into the long-term future
Remote working is...
Using the remote control for the television to complete your work.
Working away from the central office.
Working at the central office.
One disadvantage for an employee of a permanent contract is...
They are locked in to the contract and would usually need to give notice of leaving (usually 3 months)
They have to work a lot harder for less money, meaning they would be unhappy.
They have a stable sustained job therefore they will have a stable income which means they will be able to sustain their lifestyle.
Which of the following would be the job role to which a senior manager would report in a hierarchical organisational structure?
Director
Support staff
Team leader
Supervisor
Which of the following terms describes the factors that prevent the flow of successful communication within an organisation?
Effective communication
Insufficient communication
Excessive communication
Barriers to communication
Which of the following is the most likely negative impact of developments in communication technology such as e-mails?
Effective communication
Insufficient communication
Excessive communication
Barriers to communication
When products are checked at the end of the production process this is called
Quality Assurance
Quality Circles
Quality Control
Which option best describes the term, just in time (JIT) stock control?
The stock which a business holds
A diagram which shows business stock levels and usage over time
A system whereby stock arrives only when it is needed by the business
The minimum amount of stock that a business holds at any one time
Which option is a drawback to a business of using just in time (JIT) stock control?
High insurance costs
Stock could become out of date or obsolete
Storage costs will be high
Delays in deliveries could result in idle resources
Which of the following statements is true in relation to the bar gate stock graph?
The business experienced a stock out in month one
The maximum stock level the business wishes to hold is 4 cartridges
The lead time for each delivery is always two months
The re-order quantity in month two is 6 cartridges
Which option describes the time difference between a business ordering and receiving stock?
Re-order quantity
Lead time
Buffer stock
Re-order level
Which stage of the sales process is demonstrated when an employee provides a customer with detailed information about the product?
Customer engagement
Product knowledge
Response to customer feedback
Post-sales service
Which stage of the sales process would providing wide aisles and exciting visual displays be an example?
Customer engagement
Speed of service
Post-sales service
Product knowledge
Which of the following is a benefit to a manufacturer of using a national retailer as a channel of distribution?
A higher price can be charged
Profit margins will be increased
Product sales will be guaranteed
A wider audience may be reached
Which of the following best describes the term e-tailer? A business that:
Buys goods from a producer and sells them via a physical shop
Manufactures goods and sells them through physical stores
Buys goods from a wholesaler and sells them via both physical outlets and online
Sells goods online only, as its customers buy electronically
Giving your product or service a name that helps recall and recognition, and gives a sense of personality
News letters
Price promotion
Branding
Targeted marketing
When a business gives potential customers a free taste of a new product
Advertising
Sponsorship
Branding
Product trials
Which of the following bests describes the process of a business establishing a distinct identity or personality for its products?
Sponsorship
Branding
Advertising
Promotion
A business donates money to a local football team and, in return, the team displays the name and logo of the business on its kit. This an example of:
Special offers
Product trial
Sponsorship
Branding
