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WorksheetsHigher Understanding Business
Total questions: 60
Worksheet time: 33mins
Which process involves goods or services increase by adding value?
Primary process
Production process
Tertiary process
Needs identification process
Which sector of business is involved with extracting natural resources?
Primary
Secondary
Tertiary
Quaternary
Coal, fish and oil are outputs from which sector of industry?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
Which sector of industry is involved with manufacturing and construction?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
Which sector of industry is involved with areas such as: Food production, clothing, electronics and car manufacturing?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
Which sector of industry changes natural resources into things consumers need and want such as clothing?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
Which sector of industry provides a service such as train services?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
Which sector of industry provide specific information services such as research and development?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
The UK has a high population of people working in the primary and secondary sectors
True
False
Which type of business is not allowed to sell shares to the general public on the stock market?
Public Limited Companies
Private Limited Companies
Neither - All businesses can sell shares to the general public
Which type of business organisation is divided into shares, with each shareholder owning a number of shares each?
Private Limited Company
Public Limited Company
Franchises
Which of the following are advantages of operating as a private limited company?
Company control cannot be lost to outsiders
More finance can be raised from shareholders
Shares can be given to employees to motivate them
Can raise large amounts of capital by selling shares on the stock market
Which of the following are disadvantages of operating as a public limited company?
There is no control over who purchases share
Control of the company cannot be lost to outsiders
Death and illness do not affect the operation of the business
A plc must publish its annual accounts
Marks and Spencer is an example of what type of business organisation?
Private Limited Company
Public Limited Company
Sole Trader
Partnership
Which term is used to describe a business owned and controlled by one person?
Partnership
Sole Trader
Private Limited Company
Public Limited Company
In which sector would you expect to find an organisation helping a cause or providing a service to members?
Third sector
Public sector
Private sector
Which of the following are advantages of a partnership?
Profit is shared between the partners
Unlimited liability
Workload is shared
Different partners bring different skills
Which type of organisation has its headquarters in one country but assembly/production facilities in another?
Public Limited Company
Sole Trader
Multinational Companies
Which sector of economy is run by the government?
Private sector
Public sector
Third sector
Limited companies are within which sector of the economy?
Private sector
Public sector
Third sector
How do public organisations raise finance?
Bank loans
Retained profit
Taxation
Bank overdrafts
What are the minimum and maximum number of partners allowed in a partnership?
2-12
2-20
1-50
1-30
What does limited liability mean?
A shareholder only receives a limited share of the profits
A shareholder is liable for all debts
A shareholder is only liable for their equity invested
A shareholder is not liable for any of the debt
A Public Limited Company wants to expand overseas to choose a cheaper manufacturer. What does the business want to achieve in this case?
To penetrate markets protected by import controls
To reduce production costs
To earn higher after-tax profits
To take advantage of host-government financial assistance
Which of the following are advantages of Multinational Companies?
Profits earned in host country are usually transferred back to shareholders country of origin
Employment is created in the host countries
Economies of scale can be achieved
Can introduce new management style in host countries
A franchisor buys the right to copy a business format
True
False
Which of the following are advantages of Multinational Companies?
Employment is created in the host countries
Economies of scale can be achieved
Profits earned in host country usually transferred back to country of origin
Company may withdraw from host country if requests are not granted
Which of the following are the main objectives of Franchises?
Profit maximisation
Market growth
Sales maximisation
Survival
Which type of organisations are regulated by central government?
Voluntary organisations
Franchises
Public corporations
Sole traders
Which of the following is an example of a voluntary organisation?
Morrisons
BBC
Subway
Girl Guides
A social enterprise should...
Generate most income through trade
Be dependent of state intervention
Be independent of state intervention
To hold onto any profits rather than reinvest into social causes
Which of the following are advantages of the third sector?
It is a quick way to increase market share
Business risks and uncertainties are shared between different the franchiser and the franchisee
Social enterprises have an opportunity for employment of local people
Charities raise awareness of a particular cause
Survival is an organisational objective of which type of sector?
Private
Public
Third
To serve public interest is an organisational objective of which type of sector?
Private
Public
Third
To be socially responsible is an organisational objective of which type of sector?
Private
Public
Third
What organisational objective involves profits reinvested into a business allowing growth and increased market share?
Sales maximisation
Survival
Managerial objectives
Profit maximisation
Which of these actions would help a private company seem more ethical and responsible?
Recycling
Growing the business
Working within a budget
Working within time frames
Which term describes a business objective of being just good enough to achieve their own objectives?
Growing
Maturing
Satisficing
Recycling
What is the purpose of a mission statement?
The opening and closing times of the business are legally entered
A training document used by businesses for staff
The short term objectives involved in the business
To explain what the business does and wishes to achieve
External factors are factors within the organisation that impact upon the way it operates
True
False
Strong leaders with a clear vision will make positive impactful decisions. Which internal factor does this involve?
Finance
Information
Management
ICT
Which of the following is a benefit of corporate culture?
Staff are more likely to feel motivated
Quick and easy to develop
Staff are always comfortable with changes
Encourages creativity and new ideas
The UK sugar tax impacted pricing on many food and drink products. Which external factor imposed the sugar tax?
Economic
Competitive
Social
Political
Which stakeholder has a clear financial invested interest in the performance of a business?
Employees
Shareholders
Customers
Suppliers
The main interest of this shareholder is to have high quality products and good customer service.
Shareholders
Employees
Customers
Suppliers
Which stakeholder has detailed information and responsibility for making decisions?
Employees
Customers
Lenders
Management
Employees often influence a business through which of the following?
Creating policy
Conducting appraisals
Industrial action
Electing directors
Which of the following are advantages of functional grouping?
Each division can be more responsive to market changes
Staff with similar specialised skills work together
Clear organisational structure and roles
Strong team culture developed in each division
What are the disadvantages of Product/Service grouping?
Breakdown in communication between departments
Focus department aims rather than organisational aims
Duplication of resources
Division competition
What structure is best suited forming to complete a specific project?
Hierarchical structure
Flat structure
Matrix structure
What organisational structure are decisions made by senior management at the top of organisation and passed down to middle managers then general workforce?
Hierarchical structure
Flat structure
Matrix structure
A flat organisational structure is mainly used by small organisations
True
False
What organisational structure is typically found in small businesses and organisations require quick decisions to be made e.g. daily newspaper production?
Centralised structures
Decentralised structures
Entrepreneurial structures
Which term refers to the number of employees who report to a supervisor?
Downsizing
Delayering
Structures
Span of control
A business reduces the scale of their operations to meet current market demand. What is this known as?
Span of control
Downsizing
Delayering
Informal structures
What are strategic decisions?
Long term aims
made by most senior people
Medium term aims
made by e.g senior management & middle management
Short term aims
made by e.g. low level managers
What does SWOT analysis stand for?
Strengths, Weaknesses, Opportunities, Threats
Strategy, Weakness, Operations, Tactics
Strengths, Weakness, Organisation, Threats
Solutions, Weakness, Operations, Tactics
If two businesses combine to become larger on equal terms what would this be?
Backwards vertical integration
A takeover
A merger
Forward vertical integration
What are reasons for diversification of a businesses product/service range?
Spreading risk
Becomes larger and more financially secure
Overcome seasonal fluctuations in markets
Work is undertaken by a more skilled business
When does organic growth occur?
When a company hires more staff
When a company merges with a rival
When a company takes over a rival
When a company stops trading
