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N5 Understanding Business Recall

Total questions: 81

Worksheet time: 3620secs

Name
Class
Date
1.
Which is the best definition of a stakeholder?
a)
A person or group of people who have an interest and/or influence in a business and the way it is run
b)
A person or group of people who own the company and want a say in how it is run
c)
A person or group of people who deal daily with the business
d)
A person or group of people who deal with customers of a business
2.

​ (a)   is an external stakeholder.

Choose from the below words
Employees
Owner (sole trader / partner / shareholder)
Managers
Customers
3.

​ (a)   is an internal stakeholder.

Choose from the below words
Customers
Suppliers
Banks
Employees
4.
Which stakeholder is 'internal'?
a)
Local Government
b)

Owners / Shareholders

c)
Suppliers
d)
Local Community
5.

​ (a)   are interest to the business is that they gain a reward of ownership in form of dividends through profit.

Choose from the below words
Local Government
Suppliers
Local Community
Owners
6.
Which stakeholder has an interest of ...
high quality goods and services provided at reasonable prices
a)
Bank
b)
Owners
c)
Suppliers
d)
Customers
7.
What stakeholder has the following influence...
can increase their prices and charge for delivery which means costs will increase
a)
Managers
b)
Employees
c)
Customers
d)
Suppliers
8.
What stakeholder has the following influence...
can protest and raise awareness of unethical business pratices
a)
Local Community
b)
Employees
c)
Customers
d)
Suppliers
9.
What stakeholder has the following influence...
can refuse planning permission which prevents growth or implement new legislation which means changes to current ways of working (eg. H&S laws)
a)
Local Community
b)
Employees
c)
Customers
d)
Government
10.
What stakeholder has the following influence...
can grant a loan application which allows a company to introduce new products and advertise new brands, or increase overdraft interest rates which reduces profits
a)
Local Community
b)
Employees
c)
Bank
d)
Government
11.
What is the impact of banks refusing to grant loans to the business?
a)
The cost of its supplies will increase
b)
Future plans to expand the business will be put on hold
c)
New procedures for health and safety will have to be introduced
d)
Customers will take their business to a competitor
12.
What is the impact of shareholders buying more shares in the company?
a)
The firm's supplies will be cheaper
b)
Profits will be affected so dividends will be lower
c)
The reputation of the business will suffer
d)
More funds will be available to the business for expansion
13.
What is the impact of the government raising tax?
a)
The firm's operating profit will increase
b)
The firm's share price will fall
c)
The firm will have less profit remaining in the business to use
d)
The firm's market share will fall
14.
Which stakeholder can influence a firm by denying planning permission for a new factory?
a)
Government
b)
Managers
c)
Suppliers
d)
Banks
15.
Which stakeholder can influence a business by increasing the level of the minimum wage?
a)
Banks
b)
Suppliers
c)
Government
d)
Protest Groups
16.
Which stakeholder can damage the reputation of the firm by protesting against it?
a)
Government
b)
Environmental groups
c)
Banks
d)
Owner
17.
Which stakeholder would be DIRECTLY affected by the closure of an organisation?
a)
Banks
b)
Suppliers
c)
Employees
d)
Protest Groups
18.

Which stakeholder influences the business by where they choose to buy products from?

a)

Employees

b)

Customers

c)

Managers

d)

Banks

19.

Which stakeholder can affect the business by deciding not to lend them money to expand?

a)

Employees

b)

Banks

c)

Local Community

d)

Government

20.

Which stakeholder wants the business to provide jobs in the area?

a)

Local Community

b)

Owners

c)

Managers

d)

Banks

21.

How do customers have an effect on the business?

a)

By choosing to buy the products the business sells

b)

By leaving reviews on review websites

c)

By complaining about the product or service

d)

All THREE

22.

How do employees have an impact/influence on the business?

a)

Through the quality of the work they produce

b)

Through spending their money on fancy things

c)

By making friends at work and chatting at break times

d)

Through paying their taxes

23.

The ​ (a)   have an interest in the business because they want the business to have high profit to increase the amount of taxes they receive.

Choose from the below words
Government
Local Council
Owners
Employees
24.

Which stakeholder can have an impact on the business by putting up the price of their products (e.g. raw materials)?

a)

Employees

b)

Customers

c)

Suppliers

d)

Government

25.

Stakeholders can have an impact on the business in some way

a)

True

b)

False

26.

Stakeholders are interested in what the business does

a)

True

b)

False

27.

Which stakeholder wants the business to make a profit because they will get a share of it?

a)

Owners

b)

Suppliers

c)

Customers

d)

Local Community

28.

Organise these stakeholders into the right category

Categorize the following

Manager

Owner

Employee

Shareholder

Bank/Lender

Government

Customer

Supplier

Local Council

Environmental Groups

Internal
External
29.

What are some factors that can affect customer satisfaction?

a)

Social media presence, store layout, and employee uniforms.

b)

Weather conditions, political climate, and global economic trends.

c)

Availability of parking spaces, cleanliness of the store, and variety of payment options.

d)

Quality of the product or service, customer service, price, convenience, brand reputation, and personal preferences.

30.

How is customer satisfaction measured?

a)

Sales revenue

b)

Interviews and focus groups

c)

Surveys, feedback forms, and ratings

d)

Number of complaints

31.

What are some strategies to improve customer satisfaction?

a)

Ignore customer feedback and complaints

b)

Provide excellent customer service, actively listen to customer feedback, personalize the customer experience, resolve customer issues promptly, and continuously improve products and services based on customer needs.

c)

Provide slow and unresponsive customer service

d)

Offer generic and impersonalized customer experience

32.

Why is customer satisfaction important for businesses?

a)

Customer satisfaction is not important for businesses.

b)

Customer satisfaction only leads to increased costs for businesses.

c)

Customer satisfaction is important for businesses because it leads to customer loyalty, repeat business, positive word-of-mouth, and increased profitability.

d)

Customer satisfaction has no impact on customer loyalty or profitability for businesses.

33.

Name one factor that can negatively impact customer satisfaction.

a)

unresponsive communication

b)

product defects

c)

poor customer service

d)

long wait times

34.

What is the Net Promoter Score (NPS) used for?

a)

It is used to measure employee productivity.

b)

It is used to track sales revenue.

c)

It is used to analyze market trends.

d)

It is used to measure customer loyalty and satisfaction.

35.

How can businesses gather feedback from customers to measure satisfaction?

a)

Guessing based on personal assumptions

b)

Analyzing sales data to determine customer satisfaction

c)

Surveys, feedback forms, online reviews, social media monitoring, customer interviews, and focus groups.

d)

Emailing customers directly and asking for feedback

36.

What role does employee training play in improving customer satisfaction?

a)

Employee training only improves employee satisfaction, not customer satisfaction.

b)

Customer satisfaction is solely dependent on the quality of the product or service.

c)

Employee training equips employees with the necessary skills and knowledge to provide excellent customer service.

d)

Employee training has no impact on customer satisfaction.

37.

How can businesses create a customer-centric culture to enhance satisfaction?

a)

By understanding customer needs, training employees, gathering feedback, and delivering quality products/services.

b)

By not training employees and not prioritizing customer satisfaction.

c)

By ignoring customer needs and focusing on internal processes.

d)

By providing subpar products/services and not seeking feedback.

38.
Identify which of the below is NOT a key factor in delivering excellent customer service
a)
Source of finance used which do not need to be paid back
b)
Quality of service or product
c)
Durability of product
d)
After sales service
39.
Customers will want _____ which are reasonable for the quality of the product bought
a)
Prices
b)
Ranges
c)
Packaging
d)
Guarantees
40.
Excellent customer satisfaction brings many rewards to the company. Which is NOT a valid advantage of spending money to deliver excellence? 
a)
Can attract a better calibre of employee to the company
b)
Reputation makes it easier to attract new customers and increase market share
c)
Existing customers return (loyalty) to boost sales and profits
d)
Is easier to negotiate a lower bank interest rate on loans
41.
HR department can help ensure excellent customer service is delivered by ___________ staff regularly on how to handle complaints
a)
training
b)
recruiting
c)
selecting
d)
legislating
42.

A possible impact of poor customer service could be (a)  

Choose from the below words
Attract good publicity in local press
Negative reviews on consumer websites which harms
Customer loyalty increases and sales soar
Easier to recruit high quality staff into company
43.

How could a company measure customer satisfaction levels? Fill in the blank.
By conducting a ​ (a)   which gathers a small number of customers together to seek their opinion

Choose from the below words
mystery shopper
telephone survey
comment box
focus groups
44.

How could a company measure customer satisfaction levels? Fill in the blank.
By arranging a  ​ (a)   who will act like a real customer and report back on their experience of customer service levels to the company

Choose from the below words
focus group
telephone survey
comment box
mystery shopper
45.
How could a company measure customer satisfaction levels? Fill in the blank.
By carrying out a  ___________ which will be on the website allowing customers to quickly answer questions and which is easy to collate responses
a)
focus group
b)
mystery shopper
c)
Internet survey
d)
comment box
46.

How could a company measure customer satisfaction levels? Fill in the blank.
By conducting a one-to-one ​ (a)   with customers as they leave the store or at point-of-sale

Choose from the below words
focus group
Internet survey
comment card
interview
47.
What is not a benefit of having a complaints procedure?
a)
Staff know how to deal with complaints in a consistent way
b)
Staff know the rules of giving compensation to customers 
c)
Customers are reassured that their complaints are being dealt with in a professional manner
d)
It allows a complaints section to be created with dedicated staff
48.
What is NOT an example of suitable compensation to offer a customer who has been seriously let down by an organisation? 
a)
Refund of purchase price for good or service
b)
Free return visit e.g. meal or overnight stay
c)
% off future purchases with the company
d)
Letter of apology
49.

It is more expensive to find new customers than to get repeat business.

a)

True

b)

False

50.

Customer Experience is

a)

Process of dealing with members/clients query with first time right approach

b)

The process of empathetic listening and responding to emails

c)

Answer all of the questions asked

d)

All of the above

51.

A member writes an email and we can observe words that indicate member is unhappy, dissatisfied etc. What should you do?

a)

Log a complaint

b)

Take ownership and investigate to resolve the concern

c)

Both options

52.

Good Customer Service can help:

a)

Advocate and promote our organization services

b)

Retain existing clients and gain new clients

c)

Increase organization reputation and credibility

d)

All the options

53.
Which is not a way to provide consistent and reliable service?
a)
Product knowledge
b)
Dealing with problems
c)
Long waiting time
d)
Short waiting time
54.

Match the following sectors of industry to their definition

a)

Primary

1.

Extracting natural resources

b)

Secondary

2.

natural resources into finished goods

c)

Tertiary

3.

Providing a service

d)

Quarternary

4.

Knowledge-based

55.

Match the appropriate factor of production to its definition.

a)

Capital

1.

Man-made resources; equipment/machinery

b)

Enterprise

2.

Person responsible for the idea

c)

Land

3.

Natural resources used in production

d)

Labour

4.

workforce/employees of the business

56.

A good is (a)   , which means it can be touched.

57.

A service is (a)   , which means it cannot be touched.

58.

Businesses exist to combine the ​ (a)   so they can ​ (b)   the wants and needs of ​ (c)   . They usually aim to do this ​ (d)   .

Choose from the below words
satisfy
factors of production
customers
profitably
59.

A private sector business is owned by ​ (a)   . The owners of the business get to make all big ​ (b)   . Private sector business aim to make a ​ (c)   . Private sector businesses are financed by the money put in by the ​ (d)   .

Choose from the below words
private individuals
profit
decisions
owners
60.

A public sector business is owned by the​ (a)   . Government ​ (b)   are elected and get to make the decisions. Public sector businesses are funded by ​ (c)   . They aim to ​ (d)   .

Choose from the below words
government
officials
taxpayers
provide a service
61.

A third-sector business is owned by ​ (a)   . A ​ (b)   is responsible for making decisions for a third-sector business. Businesses in this sector are funded by ​ (c)   . Finally, they usually aim to ​ (d)   .

Choose from the below words
private individuals
board of trustees
donations
support a cause
62.

Match the business with the sector of economy.

a)

Oxfam

1.

Third-Sector

b)

Apple

2.

Private Sector

c)

NHS

3.

Public Sector

63.
Doctor: Goods or Service?
a)
Goods
b)
Service
64.

Pick the three sectors of economy...

a)

Private

b)

Public

c)

Third

d)

Secondary

65.

What sector does Starbucks operate in?

a)

Private

b)

Public

c)

Third

66.

What sector does the Big Issue operate in?

a)

Private

b)

Public

c)

Third

67.

A private limited company is run by what...

a)

A board of directors

b)

Shareholders

c)

The owner

d)

The employees

68.

A partnership has...

a)

2-20 partners

b)

2-16 partners

c)

2-22 partners

d)

2-18 partners

69.

The 4 factors of production are ​ (a)   ​ (b)   ​ (c)   ​ (d)  

Choose from the below words
Land
Labor
Captial
Entrepreneur
Goods
Factories
Tools
People
70.

What Factor is this?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneur

71.

Match the following

a)
1.

Land

b)
2.

Labor

c)
3.

Captial Goods

d)
4.

Entrepreneur

72.

What is a Sole Proprietorship?

a)

A business where 2 or more people share ownership

b)

A business owned by shareholders

c)

A business that is owned by one individual

73.

What percentage of the profits in sole proprietorship is the owner designated to?

a)

75%

b)

100%

c)

54%

d)

0%

74.

Which of the following is an advantage of sole proprietorship?

a)

Owner has complete control

b)

Owner gets all the stress

c)

Cannot raise capital

d)

All the above

75.

A limited liability partnership means

a)

liability is unlimited

b)

liability is shared up to a certain percentage

c)

no liabilities

76.

Which of the following best describes a business objective?

a)

It sets out specifically how a business aim can be met in a certain time

b)

It is a general goal of the business

c)

It is a qualitative statement that is displayed publically in the firm

d)

It is target that will never change

77.

A business objective is a long term goal?

a)

True

b)

False

78.

Market leadership is a main business aim for private businesses?

a)

True

b)

False

79.

Which of the following type of objective would an entrepreneur set who is aiming to ensure revenue is greater than total costs?

a)

Personal objective

b)

Profit objective

c)

Social objective

d)

Market share objective

80.

The purpose of a business setting objectives is:

a)

To maximise profits

b)

To reduce market share

c)

To provide targets

d)

To increase sales

81.

Which of the following objectives is a start-up business, operating in a competitive market, most likely to set in its first year of trading?

a)

Minimise sales

b)

National expansion

c)

Survival

d)

Maximise profit