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Worksheets2108A Revision (A2)
Total questions: 40
Worksheet time: 20mins
Which one of the following is NOT considered to be a likely benefit
of privatisation?
Raises revenue for the state to fund other activities.
Subjects the business to market forces and, therefore, improves efficiency.
Enables the business to secure funds from stock markets.
Increases the opportunities for making workers redundant.
Which one of the following is NOT considered to be a likely benefit
of free trade?
It reduces the exposure of an economy to adverse changes in the world economy.
Specialisation can lead to economies of scale.
Increased competition encourages domestic industries to reduce costs.
There is increased consumer choice.
One of the claimed benefits to a country of a multinational business
operating there:
It will increase the level of imports into that country.
Foreign managers will be employed.
Total output in the economy should increase.
The profits of the multinational may be taken out of the country.
Which one of these examples of external growth is a form of horizontal integration?
An airline takes over an insurance company.
A mining company takes over a manufacturer of earth moving equipment.
A bank mergers with another bank.
A clothing manufacturer mergers with a clothing retail business.
Which one of these examples of external growth is a form of forward vertical integration?
An airline takes over an insurance company.
A clothing manufacturer mergers with a clothing retail business.
A bank mergers with another bank.
A mining company takes over a manufacturer of earth moving equipment.
One of the benefits that is often claimed to result from integration between
two businesses is:
redundancies
bureaucracy
synergy
diseconomies
The most likely reason why some mergers and takeovers fail to result in the
expected benefits is:
cultural clash
economies of scale
internal growth is slow
higher coordination
Which one of the following is the most likely effect of a decision to
introduce technology in a small business manufacturing furniture:
output will fall but quality will improve
more employees will be needed but with fewer skills
fewer workers will be needed but will require training
less training will be needed as machines always operate automatically
Why do most countries pass laws to protect the employment
rights of workers?
Governments are anti-business
To reduce the costs of business
To increase the costs of business
Imbalance of power exists between employees and employers
What is the most likely benefit to business of strict health and
safety legislation being introduced to a country?
A reduction in lost output that results from accidents at work.
An immediate reduction in labour- training costs.
A reduction in fines for failing to meet minimum standards.
Wage costs will fall.
Which one of the following is NOT considered to be a likely benefit
to consumers of free and fair competition?
A wider choice of goods.
Reduced promotional expenditure by firms.
Lower prices.
Improved quality of products.
An argument for a business adopting environmentally friendly
strategies is:
they will reduce costs of production
green consumerism is increasing
government provide subsidies to polluting businesses
they increase external costs, which are not paid by the firm
An external cost is defined as:
the cost of production to the firm
the cost of production to society
fixed costs
the costs of production paid for by society, not the producing firm
One effect of an ageing population on a computer manufacturer is most
likely to be:
easier to recruit new trainees for the production department
products might need to be redesigned with easier to use controls
reduces corporation tax and other business taxes to pay for pensions
prices might have to be reduced as older consumers never have much income to spend
What is real GDP?
a measure of an economy's rate of inflation
the total value of exports less imports of an economy
the total value of goods and services produced in an economy in a year, adjusted for inflation
the value of household consumption in an economy in one year
Which one of the following is not a factor that leads to economic growth?
technological progress
an increase in the working population
an increase in investment
an increase in the rate of inflation
What is an economic recession?
the recovery phase of the business cycle
two successive quarters of declining real GDP
two successive quarters in which inflation is falling
any time period where GDP declines
When is an economy most likely to suffer from demand-pull inflation?
during an economic recession
when there is a rise in the value of a country's exchange rate
during an economic boom
when interest rates rise
What is the cause of cyclical unemployment?
workers being between jobs
a low level of aggregate demand
technological progress
a shift in demand causing a decline in important industries
Which one of the following is an example of a contractionary fiscal policy?
an increase in interest rates
a reduction in interest rates
an increase in income tax
an increase in government spending
A reduction in interest rates is most likely to lead to which of the following
economic outcomes?
an increase in consumer spending
an increase in unemployment
an increase in the value of the exchange rate
a reduction in the rate of inflation
One of the possible disadvantages to a business of using flexible employment contracts is:
there will often be too many workers employed during periods of low demand
there will often be too few workers when demand is rising
labour turnover might increase because all workers prefer full-time permanent contract
workers can be demotivated by a lack of employment security
Which one of the following statements about trade unions is CORRECT?
They use collective bargaining to pursue their goals.
They always take strike action to achieve their aims.
Their main purpose is to help management to achieve their aims.
They exist solely to increase the wages of their members.
Which one of the following statements about Management by Objectives is correct?
Company aims and objectives form the basis of departmental and individual targets.
It leads to the workforce setting the long term aims of the business.
Tactical objectives are converted into long term company aims.
Long-term company aims never have to be changed as MBO ensures that they are met.
Which one of the following is considered to be a critical advantage of matrix structures?
There is a more clearly defined chain of command than under a bureaucratic structure.
Decision-making is centralised.
It promotes teamwork and a focus on what is good for the business rather than the
department.
It encourages top-down communication.
Which one of the following outcomes is LEAST likely to be a consequence of a tall
organisational structure?
a long chain of command
a wider span of control
distortion of messages as they pass from top to bottom of the structure
lower levels of the organisation feeling distant from decision-making power
Delegation is defined as:
the number of subordinates reporting directly to a manager
the route through which authority is passed down an organisation
passing authority down the organisational structure
centralisation of decision-making
Delayering is most likely to occur in which of the following situations?
where management adopts a Theory X attitude towards employees
where management favours a hierarchical structure
where there are few layers of hierarchy
retrenchment during an economic recession
Which one of the following statements about staff managers is accurate?
They do not have line authority over others.
They are poorly paid relative to line managers.
They are only used in centralised organisations.
They are not part of the formal organisational structure of a business.
Which one of the following is a drawback of electronic forms of communication such as email?
not very quick
no opportunity for feedback
may create information overload
too complex for workers to understand
An integrated or connected network is best defined as:
where communication starts off at the top of the hierarchy and is passed downwards
where there can be two-way communication between all group members and any two
group members
where a manager communicates with each subordinate individually
where the leader is at the centre and there is two-way communication
between the leader and the other parts of the wheel
Which one of the following is a potential benefit of informal communication?
It counteracts the problems associated with gossip.
It helps spread rumours.
It can be used to test out new ideas.
It ensures that official messages are understood.
A manager who wishes to communicate a large quantity of detailed information would be advised to use which form of communication?
a report
a written memo
a face-to-face meeting
a noticeboard
Following an increase in consumer income of 6%, the demand for sports shoes s at a highstreet retailer increased by 3%. The income elasticity of demand for sport shoes, based on these data, is:
2
-2
-0.5
0.5
The cross price elasticity of demand for Product A with respect to Product B is –0.7. It may, therefore, be inferred that:
Product A is an inferior good.
Product A is a normal good.
Product A is a complementary good to Product B.
Product A is a substitute for Product B.
One of the limitations of the moving average method of sales forecasting is that:
it only leads to qualitative forecasts
it is only accurate for making past predictions
it is only based on future forecasts
it is only based on past data
The quarterly moving average for Q1 in 2014 is ($000):
16.25
16
15.75
15.5
The average seasonal variation for Q1 is ($000)
3.06
- 3.06
2.75
- 2.75
Which one of the following factors has NOT contributed to globalisation?
improvements in communications such as the widespread use
of the internet
improvements in transport
payment of subsidies by national governments to strategic industries such
as agriculture
the objectives and work of the World Trade Organization
Global localisation is best defined as:
adapting the marketing mix to meet pan-regional tastes
international marketing that adopts standardised products across the globe
a marketing approach that treats local markets in a globalised manner
adapting the marketing mix to meet national tastes
