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WorksheetsUnderstanding Business National 5
Total questions: 60
Worksheet time: 32mins
A good is something which is tangible - can be seen, touched and picked up
True
False
A durable good can only be used once.
True
False
Which of the following are examples of a service?
A train journey
A computer
Hairdresser
CD
This is essential to survive and to satisfy the needs and wants of the consumer.
Wants
Desires
Factors
Needs
For a business to provide us with products they need to coordinate what?
Sectors of Industry
Factors of Production
Added Value
Wealth Creation
Factors of production include combining what...
Land, Labour, Resources and Enterprise
Land, Finance, Capital and Resources
Land, Premises, Capital and Enteprise
Land, Labour, Capital, Enterprise
Identify the Factor of Production: The man-made resources that are needed to make a product, e.g. machines, tools and money.
Land
Capital
Labour
Enterprise
Identify the Factor of Production: Combining all factors of production by the entrepreneur
Land
Labour
Capital
Enterprise
Identify the Factor of Production: The natural resources of the world, e.g. water, air, plants
Land
Labour
Capital
Enterprise
Identify the Factor of Production: The people employed by a business (the workforce) to make the product.
Land
Labour
Capital
Enterprise
What is the term used for adding value to a product as it goes through the production process?
Factors of Production
Wealth Creation
Sectors of Industry
Durable goods
The Sectors of Industry are
Private, Public and Third
Capital, Enterprise, Land and Labour
Primary, Secondary and Tertiary
Political, Economic, Social, Technological, Environmental and Competitive
This sector of industry involves providing a service, e.g. a fitness instructor.
Primary
Secondary
Tertiary
This sector of industry involves businesses taking raw materials from the natural resources such as farming and fishing.
Primary
Secondary
Tertiary
This sector of industry involves businesses using raw materials to make something with them e.g. a cake baker.
Primary
Secondary
Tertiary
A business belong to more than one industry sector
True
False
This sector is owned by individuals and aim to make a profit.
Public
Private
Third
A Sole Trader is in which Sector of the Economy?
Public
Private
Third
Primary
A Sole Trader has
Limited Liability
Unlimited Liability
A Sole Trader is owned and controlled by
Shareholders and Board of Directors
Shareholders
The Sole Trader
A Partnership has
Limited Liability
Unlimited Liability
How many people can own a Partnership?
1
2-40
2-20
Unlimited
A Partnership is owned and controlled by
One Person
The Partners
Shareholders
Board of Directors
A Partnership is in which Sector of the Economy?
Public
Private
Third
Primary
A Private Limited Company has
Limited Liability
Unlimited Liability
Who owns and controls a Private Limited Company?
Owned by shareholders and controlled by Board of Directors
Owned by Board of Directors and Controlled by Shareholders
The Manager
A Private Limited Company is in which Sector of the Economy?
Public
Private
Third
Tertiary
An advantage of ______ is that all profits are kept by the owner and it is easy to set up
Sole Trader
Partnerships
Private Limited Companies
An advantage of _____ is that workload, responsibility and decision making can be shared amongst each other.
Sole Trader
Partnerships
Private Limited Companies
A disadvantage of a _____ is that any profit that the business makes needs to be split
Sole Trader
Partnerships
Private Limited Companies
To be an owner of a Ltd company you have to buy shares
False
True
An advantage of ____ is that finance can be raised by selling more shares to existing shareholders/new individuals.
Sole Trader
Partnership
Private Limited Company
Which sector is owned by the government
Private Sector
Public Sector
Third Sector
Primary Sector
How is the public sector funded?
Donations
Investing in stocks
Selling shares
By the taxpayer
Which of the following are examples of Third Sector organisations
British Heart Foundation
Dogs Trust
McDonalds
Cancer Research
Which sectors aim is to not make a profit?
Private
Public
Third
Primary
What is the differences between a social enterprise and a charity?
Less regulation by government in social enterprise
Less regulation by government in a charity
Social enterprises don't rely on grants and donations
Its legal structure
Which of the following is not an objective of a business
Survival
Provision of a Service
Enterprise
Dividends
This objective involves aiming to not harm the local environment or community e.g. investing into recycling scheme.
Social Responsibility
Provision of a Service
Customer Satisfaction
Enterprise
What does Survival mean?
To combine resources to produce a product that customers want
To increase market share
To continue trading
To become the market leader
Identify the term for when a customers is given the opportunity to ask questions about their purchase after they have bought it.
Customer Care Strategy
Complaints Procedure
PESTEC
After-Sales Service
Which of the following are benefits to a business providing good customer service?
Loss of Market Share
Customer Loyalty
Higher Job Turnover
Improved Reputation
A business can maximise customer satisfaction by..
Not Using a Customer Care Strategy
Using Market Research
Providing After-Sales Service
Using Quality Products
Which of the following is not a consequence of poor customer service?
Low Staff Morale
Loss of Market Share
Legal Action
Increase in Profits
One objective a business may have is Market Share. Which 2 things can this mean to achieve?
To Become the Market Leader
To Increase Market Share
To Have More Income Than Costs
To Continue Trading
This objective means not harming the local environment or community
Enterprise
Social Responsibiliy
External factors are often referred to as what?
Factors of Production
PESTEC
Sectors of Industry
Sectors of the Economy
Which of the following is accurate for PESTEC?
Political
Economic
Social
Technical
Ethical
Competitive
Political
Environment
Social
Technological
Ethical
Competitive
Primary
Educational
Secondary
Tertiary
Environmental
Competition
Political
Economic
Social
Technological
Environmental
Competitive
These are things that are within a business that impact on how it operates
Internal Factors
External Factors
Which PESTEC Factor is concerned with the levels of employment, interest rates and if there is a recession within the country?
Political
Social
Economic
Competitive
Sugar Tax has been introduced to the UK, which PESTEC Factor is responsible for this?
Political
Economic
Social
Environmental
An ice cream business does better in summer months when it is hot. What PESTEC Factor would this relate to?
Social
Environmental
Competitive
Economic
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.
False
True
Which of the following is an internal stakeholder?
Bank
Government
Suppliers
Employees
Which of the following is an external stakeholder?
Owner
Manager
Employee
Customer
Identify the stakeholder that is main interest is in supporting and promoting a specific interest or cause.
Pressure Groups
Local Community
Employees
National Government
Identify the stakeholders which are interested in the business making a profit.
Customers
Local Community
Owners
Shareholders
This stakeholder can take industrial action such as a strike.
Pressure Groups
Local Community
Shareholders
Employees
The influence of these shareholders is that they can invest more or less capital into the business.
Shareholders
Customers
Local Community
Owner
The influence of this stakeholder is that they can refuse or grant planning permission
Local Government
Local Community
National Government
Shareholders
