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Review_01

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

A Business that breaks even has total revenue of US$5 600 000 and fixed costs of US$2 000 000. Therefore the value of variable cost?

a)

US$ 2 000 000

b)

UD$5 600 000

c)

US$7 600 000

d)

US$3 600 000

2.

A business charges US$25 per unit for its output. Fixed costs are US$1000 000 and variable costs are US$5 per unit. How much should the business produce and sell to break even?

a)

US$ 50 000

b)

Us$20

c)

20 units

d)

50 000 units

3.

A Business breaks even when 5000 Units are produced. If price = US$20 and fixed costs are US$20000, then variable cost per unit is?

a)

US$ 16 per unit

b)

UsS50 per unit

c)

US$ 20 per unit

d)

US$ 4 per unit

4.

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 function steeper

c)

Shift the break even point to the right

d)

make the total cost function flatter

5.

Wages paid to production workers is an example of which of the following?

a)

Current Asset

b)

Finance cost

c)

Business expense

d)

Cost of sales

6.

A Business has revenue of US$239 500 cost of sales of US$ 154 000 and expenses of US$65 000. therefore, the value of operating profit is?

a)

US$ 20 500

b)

US$ 85 500

c)

US$ 393 500

d)

US$ 239 500

7.

A statement of comprehensive income might be used to do which of the following?

a)

Calculate labour turnover

b)

Help make investment decisions

c)

Measure the value of assets in a business

d)

Calculate the liquidity ratio

8.

Which of the following is a function of profit?

a)

A measure of global economic success

b)

Used to calculate the break even point

c)

Measure of business performance

d)

Measure of labour productivity

9.

Gross profit is equal to which of the following?

a)

Operating profit + Revenue

b)

Revenue - Cost of Sales

c)

Revenue - operating profit

d)

Revenue + Cost of sales

10.

(a)   is payment for work, usually paid weekly.

11.

(a)   is payment for work, usually paid monthly.

12.

(a)   is payment relating to the number of sales made.

13.

(a)   is an additional amount of payment above basic pay as a reward for good work.

14.

(a)   involves workers swapping around and doing each specific task for only a limited time and then changing around again.

15.

(a)   involves using groups of workers and allocating specific tasks and responsibilities to them.

16.

(a)   is the process of improving a worker’s skills.

17.

(a)   is the advancement of an employee in an organization, for example, to a higher job/managerial level.

18.

(a)   is the reason why employees want to work hard and work effectively for the business.

19.

(a)   refers to a diagram that outlines the internal management structure.

20.

(a)   is the total value of the output of goods and services in a country in one year.

21.

(a)   is when there is a period of falling GDP.

22.

(a)   is the increase in the average price level of goods and services over time.

23.

(a)   exists when people who are willing and able to work cannot find a job.

24.

(a)   is when a country’s GDP increases, more goods and services are produced than in the previous year.

25.

(a)   are goods and services sold from one country to other countries.

26.

(a)   are goods and services bought in by one country from other countries.

27.

(a)   is the price of one currency in terms of another, for example, £1 : $1.5.

28.

What does scarcity mean to humans?

a)

that we have to act irrationally

b)

that we need to use up all our resources for our comfort

c)

that we have to use our resources efficiently so that needs and wants are satisfied

d)

that we have to not use our resources at all because we will run out them if we keep using them

29.
An entrepreneur is someone 
a)
Someone who works for a new business
b)
Someone who starts a new business
c)
Someone who takes over an existing business
d)
Someone who does not want to work
30.
One of the most common reasons for a new business not surviving is:
a)
too much time spent on developing the business plan
b)
no competitors in the industry
c)
poor cash flow as a result of poor financial planning
d)
consumers like dealing with small firms providing a service
31.

Work specialization is the same as _____.

a)

Departmentalization

b)

Division of labor

c)

Decentralization

d)

Job grouping

32.

1. A tall organizational structure would be:

a)

Many levels in hierarchy + wide spans of control.

b)

Few layers in hierarchy + narrow spans of control.

c)

Few levels in hierarchy + wide span of control.

d)

Many levels in hierarchy + narrow span of control.

33.

Which of the following is a type of training provided when a new employee begins work?

a)

On-The-Job

b)

Induction

c)

Off-The-Job

34.
Which of the following best describes quality?
a)
The service provided to a customer before, during and after purchasing.
b)
Products being made to a high standard to meet customer needs.
c)
A high level of productivity.
35.

When products are checked throughout the production process this is called

a)

Quality Circles

b)

Quality Assurance

c)

Quality Control

36.

A business checks products after they are made. What is this an example of?

a)

Quality Control

b)

Quality Circles

c)

Quality Assurance

37.

Making different varieties of identical products. The production process is broken into stages

a)

Job

b)

Batch

c)

Flow

38.
a)

Job

b)

Batch

c)

Flow

39.
What is one limitation to calculating break even?
a)
helps projected sales
b)
based on estimates
c)
based on multiple products
d)
considers stock wastage
40.
If a business's sales double, its variable costs will also likely
a)
remain the same
b)
decrease
c)
increase
d)
double
41.

Which of the following Pricing Strategies describes when you take the cost of producing a good and add on a percentage of profit to arrive at the selling price?

a)

Cost-plus pricing

b)

Low pricing

c)

Promotional Pricing

d)

High pricing

42.

Which of the following presents the strongest reason that markup pricing generally does NOT make sense?

a)

Sellers earn a fair return on their investment.

b)

By tying the price to cost, sellers simplify pricing.

c)

When all firms in the industry use this pricing method, prices tend to be similar.

d)

This method ignores demand.

e)

With a standard markup, consumers know when they are being overcharged.

43.
The product life cycle shows the different stages that a product passes through and sales that can be expected at each stage
a)
True
b)
False
44.

E-Commerce is the process of buying, selling or exchanging products, services or information via computer.

a)

Yes

b)

No

45.

A direct channel of distribution has:

a)

Three intermediaries

b)

Two intermediaries

c)

One intermediary

d)

No intermediaries

46.

(a)   is a good or service which people would like to have, but which is not essential for living.

47.

(a)   are those resources needed to produce goods or services.

48.

(a)   is the cash inflows and outflows over a period of time.

49.

A good or service that is essential for living is called

a)

Want

b)

Needs

c)

Interest

d)

Desire

50.

Which of the following is NOT the example of Capital

a)

Money

b)

Building

c)

Staff

d)

Machinery