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IGCSE Business Review Questions

Total questions: 43

Worksheet time: 24mins

Name
Class
Date
1.

Which business sector deals with extracting raw material and natural resources?

a)

primary sector

b)

secondary sector

c)

tertiary sector

d)

all of the above

2.

primary sector is mostly located in

a)

city centers

b)

urban areas

c)

rural areas

d)

all of the above

3.

Turning raw materials into final finished goods is part of the ________

a)

tertiary sector

b)

developed countries

c)

secondary sector

d)

none of the above

4.

A form of business where the owners of the company are referred to as shareholders.

a)

Sole Proprietorship

b)

Partnership

c)

Corporations

d)

Cooperative

5.

the .....is a legal documents between the employee and the employer

a)

letter of appointment

b)

letter of acceptance

c)

employment contract

d)

appoint contract

6.

A street vendor who sells juices in the city center is an example of

a)

partnership

b)

Sole trader

c)

Business owner

d)

B and C

7.

which of the following is a feature of a public corporation

a)

It is owned by the board of directors

b)

It is owned by the government

c)

it aims to maximise profits

d)

it is not accountable to anyone

8.

Which of the following countries has most likely seen the sharpest decline in employment in the primary sector in the last 50 years

a)

USA

b)

Uganda

c)

Cambodia

d)

Ethiopia

9.

A fast method of growth is a key advantage for which business structure?

a)

Franchisor

b)

Partnership

c)

Franchisee

d)

Social Enterprise

10.

Taking risk in business is a key role of which of the following?

a)

Accountant

b)

Entrepreneur

c)

Company Director

d)

Marketing Manager

11.

The legal responsibility of the owners of a business to repay its debts is limited to the amount of capital they invest in the business.

a)

limited liability

b)

unlimited liability

c)

exchange rate

d)

board of directors

12.

In a private limited company, which of the following is NOT true?

a)

The shareholders have limited liability

b)

The company can sell its shares to the public

c)

People must be invited to buy shares in the business

d)

The company must have at least one shareholder

13.

Sending messages between people working for the same organisation.

a)

Internal communication

b)

External communication

c)

Medium of communication

d)

Communication

14.

_____________ is between the organisation and other organisations or individuals.

a)

Internal communication

b)

Medium of communication

c)

External communication

d)

Communication

15.
The span of control can be defined as
a)

the number of employees directly controlled by one manager

b)

the number of departments in a business

c)

the number of managers who report directly to each worker

d)

the number of levels in a firm's hierarchy

16.

An advantage of having a short chain of command is that

a)

the company will gain unlimited liability

b)

managers will have greater bonuses

c)

fringe benefits will become more common

d)

better communications between the managers and employees

17.
What is recruitment?
a)

The process by which a business hires new employees

b)

The process by which a business trains staff

c)

The process by which a business inducts staff

18.
Which one does NOT belong on a person specification?
a)

Race or age

b)

Skills

c)

Education

d)

Years of Experience

19.

Horizontal communication is ...

a)

Communication between two people on the same level within an organisation structure

b)

When communication occurs between staff and customers

c)

Communication between two people on different levels within an organisation structure

d)

The use of digital communication devices to send a message

20.

Select all the advantages of a tall organizational structure.

a)

It is clear who is responsible for which tasks.

b)

There are more promotional opportunities

c)

Reduced bureaucracy, making the organisation more adaptable to changes.

d)

Increased cooperation and communication between departments.

21.

ShinyAutos wishes to motivate its staff to sell more cars, deciding to pay individual salesmen 5% of each sale they make. This type of payment is called ______________________.

a)

remuneration.

b)

a commission.

c)

a promotion.

d)

a bonus.

e)

a fringe benefit.

22.

___________________________ is the degree to which employees are able to make their own decisions about their day-to-day roles.

a)

Retention

b)

Job enrichment

c)

Productivity

d)

Autonomy

23.

What is the top level on Maslow's Hierarchy?

a)

Physical needs

b)

Safety needs

c)

Self actualisation

d)

Self-esteem

24.

Which theorist believed that people are inherently lazy and are only motivated by money?

a)

Mayo human relations theory

b)

Taylor's scientific management

c)

Herzberg's two factor theory

d)

Maslow's hierarchy of needs

25.

Which financial method of payment was derived from Taylor's theory?

a)

Salary

b)

Bonus

c)

Fringe benefits

d)

Piece rate

26.

Which of the following is an example of a non-financial method of motivation?

a)

Profit sharing

b)

Commission

c)

Performance related pay

d)

Training

27.

Giving staff more challenging and interesting jobs as part of their role is called:

a)

Job enrichment

b)

Job rotation

c)

Job enlargement

d)

On the job training

28.
The location of which of the firms will be influenced by the availability of skilled workers?
a)

computer software design

b)

large supermarket

c)

mass producer of family car models

d)

travel company’s ticket office

29.

1.  Developing countries are attractive locations to open a factory for a company because

a)

a.  High level of market growth rate and potential

b)

a.   More unskilled labors available 

c)

a.  Cheaper raw materials available 

d)

a.  All of the above 

30.

Which of the following businesses is most likely to locate close to its raw materials?

a)

Yoghurt manufacturer

b)

National supermarket chain

c)

A store for luxury bags

d)

British online clothing retailer

31.

Which of the following is NOT a way to motivate its employees

a)

motivate the workers

b)

hire a manager

c)

use more advanced technology

d)

train the workers

32.

A business combines inputs to make products or services.

a)

True

b)

False

33.

Part of the business profit that's used to further expand the business later is called ____________

a)

Retained profits

b)

Share capital

c)

Angel investor

d)

Owner savings

34.

An amount of money that is paid back within an agreed amount of time, with interest is called _____

a)

Bank loan

b)

Angel investment

c)

Overdraft

d)

Retained profit

35.

What is an advantage of an overdraft?

a)

There is never interest

b)

You can pay in smaller installments

c)

Useful for relatively small sums and short term finance

d)

You don't have to pay it back

36.

What happens at Break-even Point?

a)

Company makes neither profit nor loss

b)

Company makes profit

c)

Company makes loss

d)

Company goes bankrupt

37.
Revenue is ...
a)

Money made from selling products or services

b)

Money paid to suppliers for materials

c)

Expenses x Units produced

d)

Monthly rent payments to landlord

38.
Which source of finance is internal?
a)

Government Grant

b)

Personal savings

c)

Bank Loan

d)

Overdraft

39.

Which of the following is a variable cost _____

a)

Rent

b)

Insurance

c)

Raw Materials

d)

Office furniture

40.

The next best alternative given up by choosing another item is the definition of?

a)

Scarcity

b)

Opportunity cost

c)

Purchase

d)

Business activity

41.

An increase in fixed cost will do which of the following?

a)

Shift the break-even point to the left

b)

make the total cost curve more steep

c)

Shift the break-even point to the right

d)

make the total cost function flatter

42.

Which of the following is NOT true for a Public Limited Company?

a)

The company's shares can be sold to the public

b)

The company have to publish its financial accounts to the public

c)

It is cheap and easy to set up and operate

d)

Separation of management and ownership

43.

If the currency of a country depreciates, it means that_____

a)

The exports of that country become more competitive

b)

It's cheaper to import from other countries

c)

The country's trade surplus will grow

d)

The country's trade deficit will grow