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Business studies quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Define scarcity

a)

Shortage of products to fulfill the total wants of the population

b)

Shortage of materials to fulfill the total wants of an individual

c)

People always get enough, that there is never something else that they would like to have

d)

High in supply of product.

2.

Occurs when two businesses join to form a new (but larger) business.

a)

Partnership

b)

Merger

c)

Sponsorship

d)

Licentiateship

3.

Which correct answer leads to a business failure?

a)

Indigent management

b)

Lack of finance

c)

Plan for change

d)

Unlimited trade receivables

4.

What are the two main objectives of a public sector

a)

Profit-making

b)

Offer services

c)

Protect and create employment in certain areas

d)

Reduce cost

5.

Cost advantages that a business can exploit by expanding their scale of production

a)

Economics of scale

b)

Market disequilibrium

c)

Diseconomies of scale

d)

Conglomerate integration

6.

A business owned and controlled by one entity

a)

Lessor

b)

Sole trader

c)

Stakeholder

d)

CEO

7.

Set out the rules according to which a company must be run and administered

a)

Articles of association

b)

Memorandum of association

c)

Separate legal identity

d)

Liabilities

8.

A business whose shares are sellable to the general public

a)

Public limited shares

b)

Public limited company

c)

Franchise

d)

Public sector

9.

A payment made by one party to another that owns a particular asset, for the right to ongoing use of that asset.

a)

Lease liability

b)

Limited liability

c)

Royalty

d)

Separate legal identity

10.

When production is split in different tasks and each worker performs one of these tasks.

a)

Division of labour

b)

Division of capital

c)

Value of outputs

d)

Value of sales

11.

When one company makes a successful bid to assume control of another

a)

Bid

b)

Takeover

c)

Vertical integration

d)

Conglomerate integration

12.

An economy that has a mix of public and private sector

a)

Primary sector

b)

Mixed economy

c)

Economies of scale

d)

Private limited company

13.

Ability of a business to pay back its short term or day to day basis

a)

Liquidity

b)

Technical economics

c)

Vertical integration

d)

Monetary policy

14.

Define legislation

a)

action of making something that previously was illegal permissible by the law

b)

a particular economic activity by reducing tax payments

c)

an amount if money to pay to the government so that it can pay for public services

d)

Monetary charge for the privilege of borrowing money

15.

The act, state or right of possessing something.

a)

Ownership

b)

Debt factoring

c)

Shareholders

d)

Purchasing

16.

The business owners aren't responsible for all the debts of

the business.

a)

Limited liability

b)

Unlimited liability

17.

Organisation whose main/primary

objective is social and any ...

made is reinvested

a)

revenue

b)

profit

c)

expenses

d)

inventories

18.

Not owned and

controlled by the government and do

have to make profit.

a)

Public sector

b)

Private sector

19.

The ... buys the licence to operate this business

from the franchisor.

a)

franchisee

b)

buyer

c)

lessor

d)

sole trader

20.

A product you cannot live without

a)

Air

b)

Wind

c)

Rice

d)

Time