Worksheets3.1 and 3.3 AQA Business A Level Revision
Total questions: 37
Worksheet time: 20mins
Functional objectives are usually set for :
individuals
the whole company
departments
senior management
The 'M' in SMART objectives =
manageable
motivating
marginal
measurable
Costs that alter directly with output level
fixed costs
variable costs
Revenue =
selling price - quantity sold
selling price + quantity sold
selling price x quantity sold
selling price / quantity sold
Unlimited liability applies to :
an LTD
a PLC
a company
a sole trader
Which type of business can sell shares to the public ?
LTD
PLC
sole trader
Market capitalisation =
Number of shares divided by share price
Number of shares minus the share price
Number of shares multiplied by share price
Qualitative market research =
large scale surveys, closed questions
small scale interviews, open questions
Which of the following is the BEST definition of 'mission statement'?
A statement defining the future aspirations of a business
A statement defining what an organisation is, why it exists and its purpose
A statement explaining what the business does
A statement explaining which stakeholders a business will serve
What do shareholders want from a business? Tick all that apply.
Dividend payments
Capital Growth
Voting rights at the AGM
All of the above
Which of the following are true about Interest Rates? Tick all that apply.
Interest rates are the cost of borrowing money.
Interest rates are earned on savings.
All businesses will be negatively affected by a rise in interest rates.
All of the above.
What is the best definition of a market?
A place, real or virtual, where buyers and sellers come together
A place in the centre of town where you can buy vegetables
A process by which companies create value for customers
A way of satisfying customers in order to create value
Technology, social, economic, political, competition and legal. These are examples of internal or external influences on marketing?
External
Internal
Quantitative analysis is...
Not important
Numbers
Opinions
Numbers and opinions
Individual / group with an interest to a business and might be affected by decisions of a business.
Shareholders
Board of directors
Customers
Stakeholders
Which one is NOT the definition of "market research" ?
Process of collecting and analysing data to identify customer needs.
Collecting primary and secondary data, such as when setting up a new business.
Discussion process with customers, competitors, and suppliers to find the best solution.
Identifying aspects of the market to aid decision making by using methods like surveys, interviews, internet.
Long-term plan for the whole business to give a business vision and direction.
Objective
Target
Tactic
Strategy
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
What are the owners of private and public limited companies called?
Stakeholders
Managers
Board of directors
Shareholders
Which of the following is a drawback for an entrepreneur setting up a business as a sole trader?
Profit is shared
Financial accounts are kept private
Limited liability
Unlimited liability
Which of the following is an advantage of operating a large established business as a public limited company?
Shares can be sold to the public to raise additional finance
Financial accounts are published
Shares can only be sold to invited investors to raise finance
Owners have unlimited liability
A private limited company may change into a public limited company because it wants:
Limited liability
To raise additional finance
Unlimited liability
To avoid takeover
Which of the following statements is always true of a public limited company?
Shareholders have day to day control of the company
Liability is limited
The ability to expand is limited
Board of directors own the business
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole trader
Partnership
LTD
PLC
Advantages of a sole trader are:
Limited liability
The owner makes all the decisions
The owner takes all the profit
Can raise substantial capital
Private Limited Companies are owned by
Sole Traders
Partners
Shareholders
The Government
Sole Traders have
Unlimited Liability
Limited Liability
Private Limited Companies have
Limited Liability
Unlimited Liability
Qualitative market research gathers :
replies from closed questions
statistically significant data
opinions and attitudes
data from large scale surveys
A firm sells 3000 units at £9 each, total revenue =
270
27000
2700
3900
A group of people or business with common characteristics or needs.
Target Market
Market Segment
Mass Market
Micro-Marketing
A specific group of customers at which a company aims its products and services.
Target Market
Market Segment
Micro-Market
Mass Market
Shareholders recieve a share of the profits a LTD makes called a
Dividend
Bonus
Commission
Cash Prize
When profits are shared between shareholders. This is called a (a)
What is meant by the term 'incorporation'?
Two businesses joining together
One business taking over another
Setting up a business as a separate legal entity.
Two separate businesses working together
Which is an advantage of a public limited company?
Risk of takeover due to the availability of the shares on the stock exchange
Legal formalities in formation
Share prices subject to fluctuation
Separate legal identity
A _________ acts like business, but its purpose is to benefit society.
Franchise
Limited Liability Partnership
Nonprofit organization
corporation
