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Understanding Business National 5

Total questions: 60

Worksheet time: 32mins

Name
Class
Date
1.

A good is something which is tangible - can be seen, touched and picked up

a)

True

b)

False

2.

A durable good can only be used once.

a)

True

b)

False

3.

Which of the following are examples of a service?

a)

A train journey

b)

A computer

c)

Hairdresser

d)

CD

4.

This is essential to survive and to satisfy the needs and wants of the consumer.

a)

Wants

b)

Desires

c)

Factors

d)

Needs

5.

For a business to provide us with products they need to coordinate what?

a)

Sectors of Industry

b)

Factors of Production

c)

Added Value

d)

Wealth Creation

6.

Factors of production include combining what...

a)

Land, Labour, Resources and Enterprise

b)

Land, Finance, Capital and Resources

c)

Land, Premises, Capital and Enteprise

d)

Land, Labour, Capital, Enterprise

7.

Identify the Factor of Production: The man-made resources that are needed to make a product, e.g. machines, tools and money.

a)

Land

b)

Capital

c)

Labour

d)

Enterprise

8.

Identify the Factor of Production: Combining all factors of production by the entrepreneur

a)

Land

b)

Labour

c)

Capital

d)

Enterprise

9.

Identify the Factor of Production: The natural resources of the world, e.g. water, air, plants

a)

Land

b)

Labour

c)

Capital

d)

Enterprise

10.

Identify the Factor of Production: The people employed by a business (the workforce) to make the product.

a)

Land

b)

Labour

c)

Capital

d)

Enterprise

11.

What is the term used for adding value to a product as it goes through the production process?

a)

Factors of Production

b)

Wealth Creation

c)

Sectors of Industry

d)

Durable goods

12.

The Sectors of Industry are

a)

Private, Public and Third

b)

Capital, Enterprise, Land and Labour

c)

Primary, Secondary and Tertiary

d)

Political, Economic, Social, Technological, Environmental and Competitive

13.

This sector of industry involves providing a service, e.g. a fitness instructor.

a)

Primary

b)

Secondary

c)

Tertiary

14.

This sector of industry involves businesses taking raw materials from the natural resources such as farming and fishing.

a)

Primary

b)

Secondary

c)

Tertiary

15.

This sector of industry involves businesses using raw materials to make something with them e.g. a cake baker.

a)

Primary

b)

Secondary

c)

Tertiary

16.

A business belong to more than one industry sector

a)

True

b)

False

17.

This sector is owned by individuals and aim to make a profit.

a)

Public

b)

Private

c)

Third

18.

A Sole Trader is in which Sector of the Economy?

a)

Public

b)

Private

c)

Third

d)

Primary

19.

A Sole Trader has

a)

Limited Liability

b)

Unlimited Liability

20.

A Sole Trader is owned and controlled by

a)

Shareholders and Board of Directors

b)

Shareholders

c)

The Sole Trader

21.

A Partnership has

a)

Limited Liability

b)

Unlimited Liability

22.

How many people can own a Partnership?

a)

1

b)

2-40

c)

2-20

d)

Unlimited

23.

A Partnership is owned and controlled by

a)

One Person

b)

The Partners

c)

Shareholders

d)

Board of Directors

24.

A Partnership is in which Sector of the Economy?

a)

Public

b)

Private

c)

Third

d)

Primary

25.

A Private Limited Company has

a)

Limited Liability

b)

Unlimited Liability

26.

Who owns and controls a Private Limited Company?

a)

Owned by shareholders and controlled by Board of Directors

b)

Owned by Board of Directors and Controlled by Shareholders

c)

The Manager

27.

A Private Limited Company is in which Sector of the Economy?

a)

Public

b)

Private

c)

Third

d)

Tertiary

28.

An advantage of ______ is that all profits are kept by the owner and it is easy to set up

a)

Sole Trader

b)

Partnerships

c)

Private Limited Companies

29.

An advantage of _____ is that workload, responsibility and decision making can be shared amongst each other.

a)

Sole Trader

b)

Partnerships

c)

Private Limited Companies

30.

A disadvantage of a _____ is that any profit that the business makes needs to be split

a)

Sole Trader

b)

Partnerships

c)

Private Limited Companies

31.

To be an owner of a Ltd company you have to buy shares

a)

False

b)

True

32.

An advantage of ____ is that finance can be raised by selling more shares to existing shareholders/new individuals.

a)

Sole Trader

b)

Partnership

c)

Private Limited Company

33.

Which sector is owned by the government

a)

Private Sector

b)

Public Sector

c)

Third Sector

d)

Primary Sector

34.

How is the public sector funded?

a)

Donations

b)

Investing in stocks

c)

Selling shares

d)

By the taxpayer

35.

Which of the following are examples of Third Sector organisations

a)

British Heart Foundation

b)

Dogs Trust

c)

McDonalds

d)

Cancer Research

36.

Which sectors aim is to not make a profit?

a)

Private

b)

Public

c)

Third

d)

Primary

37.

What is the differences between a social enterprise and a charity?

a)

Less regulation by government in social enterprise

b)

Less regulation by government in a charity

c)

Social enterprises don't rely on grants and donations

d)

Its legal structure

38.

Which of the following is not an objective of a business

a)

Survival

b)

Provision of a Service

c)

Enterprise

d)

Dividends

39.

This objective involves aiming to not harm the local environment or community e.g. investing into recycling scheme.

a)

Social Responsibility

b)

Provision of a Service

c)

Customer Satisfaction

d)

Enterprise

40.

What does Survival mean?

a)

To combine resources to produce a product that customers want

b)

To increase market share

c)

To continue trading

d)

To become the market leader

41.

Identify the term for when a customers is given the opportunity to ask questions about their purchase after they have bought it.

a)

Customer Care Strategy

b)

Complaints Procedure

c)

PESTEC

d)

After-Sales Service

42.

Which of the following are benefits to a business providing good customer service?

a)

Loss of Market Share

b)

Customer Loyalty

c)

Higher Job Turnover

d)

Improved Reputation

43.

A business can maximise customer satisfaction by..

a)

Not Using a Customer Care Strategy

b)

Using Market Research

c)

Providing After-Sales Service

d)

Using Quality Products

44.

Which of the following is not a consequence of poor customer service?

a)

Low Staff Morale

b)

Loss of Market Share

c)

Legal Action

d)

Increase in Profits

45.

One objective a business may have is Market Share. Which 2 things can this mean to achieve?

a)

To Become the Market Leader

b)

To Increase Market Share

c)

To Have More Income Than Costs

d)

To Continue Trading

46.

This objective means not harming the local environment or community

a)

Enterprise

b)

Social Responsibiliy

47.

External factors are often referred to as what?

a)

Factors of Production

b)

PESTEC

c)

Sectors of Industry

d)

Sectors of the Economy

48.

Which of the following is accurate for PESTEC?

a)

Political

Economic

Social

Technical

Ethical

Competitive

b)

Political

Environment

Social

Technological

Ethical

Competitive

c)

Primary

Educational

Secondary

Tertiary

Environmental

Competition

d)

Political

Economic

Social

Technological

Environmental

Competitive

49.

These are things that are within a business that impact on how it operates

a)

Internal Factors

b)

External Factors

50.

Which PESTEC Factor is concerned with the levels of employment, interest rates and if there is a recession within the country?

a)

Political

b)

Social

c)

Economic

d)

Competitive

51.

Sugar Tax has been introduced to the UK, which PESTEC Factor is responsible for this?

a)

Political

b)

Economic

c)

Social

d)

Environmental

52.

An ice cream business does better in summer months when it is hot. What PESTEC Factor would this relate to?

a)

Social

b)

Environmental

c)

Competitive

d)

Economic

53.

A Stakeholder is a person or a group of people who have an interest in the success of a business whom can influence it in different ways.

a)

False

b)

True

54.

Which of the following is an internal stakeholder?

a)

Bank

b)

Government

c)

Suppliers

d)

Employees

55.

Which of the following is an external stakeholder?

a)

Owner

b)

Manager

c)

Employee

d)

Customer

56.

Identify the stakeholder that is main interest is in supporting and promoting a specific interest or cause.

a)

Pressure Groups

b)

Local Community

c)

Employees

d)

National Government

57.

Identify the stakeholders which are interested in the business making a profit.

a)

Customers

b)

Local Community

c)

Owners

d)

Shareholders

58.

This stakeholder can take industrial action such as a strike.

a)

Pressure Groups

b)

Local Community

c)

Shareholders

d)

Employees

59.

The influence of these shareholders is that they can invest more or less capital into the business.

a)

Shareholders

b)

Customers

c)

Local Community

d)

Owner

60.

The influence of this stakeholder is that they can refuse or grant planning permission

a)

Local Government

b)

Local Community

c)

National Government

d)

Shareholders