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WorksheetsWeek 4 summary sheet questions
Total questions: 1
Worksheet time: 21mins
Why do some business owners prefer to become limited companies for financial protection?
To avoid sharing control with new partners or shareholders
To protect their personal financial position due to limited liability
To raise more capital by becoming a public limited company (PLC)
To maintain complete control of their business
What is one of the main reasons why owners change the legal status of their business?
To change the type of products or services they offer
To reduce the size of their business
To change the type of organisation and raise capital
To limit their business activities to a specific region
Which type of business ownership is most likely chosen by hairdressers, window cleaners, and gardeners?
Partnerships
Public limited companies (PLCs)
Sole traders
Private limited companies
What might be a reason for a growing business to remain a private limited company instead of becoming a PLC?
To pay dividends to their shareholders
To reinvest a large portion of its profits
To dominate global markets
To reduce the amount of capital raised
Why might a sole trader choose to remain as such instead of seeking growth through other forms of business ownership?
To avoid the responsibility associated with growth
To be able to dominate global markets
To raise more capital for expansion
To share control with new partners or shareholders
Which sector is involved in the production of services in the economy?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
What is the term used to describe the decline in manufacturing and increase in the tertiary sector?
Industrialisation
Post-industrialisation
De-industrialisation
Re-industrialisation
In less developed countries, which sector is likely to have more employment?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
What is one of the reasons for de-industrialisation in developed countries?
Decrease in public sector services
People prefer to spend more income on manufactured goods
Advances in technology mean that machines replace people
Decrease in competition from other countries
Why might businesses that make large or heavy products choose to locate close to their customers?
To increase the cost of transportation
To keep transport costs down
To avoid direct sales to customers
To reduce the number of employees needed
What is one reason service providers have to locate their businesses close to their markets?
Because they require large amounts of raw materials
Because their services are sold direct to the customer
To minimize competition
To ensure they have enough parking space
Which factor is important for businesses needing a large number of workers when choosing a location?
Proximity to raw materials
Supply of labor
Proximity to competitors
Good access and parking
Why might some businesses deliberately choose locations where there are many competitors?
To minimize customer parking
To avoid areas of traffic congestion
To catch the excess demand from existing demand
To reduce wage costs
What is a benefit of out-of-town shopping centers mentioned in the text?
They offer limited parking
They are located close to raw materials
They offer plenty of parking and ease of access
They are suitable for businesses that require small land areas
What might large supermarkets or manufacturers look for to minimize land and property costs?
Expensive residential areas
High business rates areas
Cheap premises in a business park or industrial estate
Central urban locations
Why do many office-based businesses with large numbers of employees locate their offices in popular cities?
Because it is cheaper than other locations
To avoid government control of location
To attract highly qualified staff by offering a wide range of facilities
To minimize their internet usage
What is one of the impacts of the internet on locating a business?
It has decreased the need for good internet connectivity
It has increased the need to locate operations close to transport networks for some large online retailers
It has made it unnecessary for businesses to consider location flexibility
It has eliminated the need for customer service
Which of the following is a reason why governments control business locations?
To ensure all businesses are located in urban areas
To avoid congestion and reduce strain on infrastructure
To discourage businesses from offering financial incentives
To prevent businesses from accessing the internet
What are 'assisted areas' in the context of government influence on business location?
Areas where businesses are prohibited from setting up
Areas where the local economy is thriving
Areas where businesses receive financial incentives to locate there
Areas designated for residential use only
What is the purpose of trade blocs?
To increase the cost of imports and exports between member countries
To control the level of imports into their country and avoid tariffs and quotas
To prevent any trade between the member countries
To enforce government laws on international trade
What is the definition of globalisation according to the text?
The restriction of trade between different parts of the world
The growing separation of the world’s economies
The growing integration of the world’s economies
The government control over international trade
What has been the trend in trade barriers in recent decades?
Increase in trade barriers
No significant change in trade barriers
Fall in trade barriers
Trade barriers have remained constant
What is a fundamental right within the European Union?
Free movement of services
Free movement of labour
Free movement of goods only within the home country
Restricted movement between member countries
What does the free movement of capital allow?
Only domestic investment within a country
Capital to flow freely between different countries
Investment in technology only
Restriction on buying shares in foreign companies
Which country is now a major player in telecommunications due to globalisation?
The United States
India
China
Germany
What is one of the reasons for the trend in globalisation?
Decrease in international transport networks
Developments in technology
Increase in trade barriers
Reduction in data transfer capabilities
How has deregulation affected competition in many industries?
It has decreased competition
It has had no impact on competition
It has increased competition
It has made industries more regulated
What has led to a change in consumer tastes according to the text?
The availability of more domestic products
The influence of social media and advertising
Experiences from traveling
Government regulations
Why do many firms want to sell abroad?
Because they prefer international markets
Because domestic markets are saturated
Because it is less expensive
Because the government encourages it
How can governments aid globalization?
By keeping international borders closed
By putting up trade barriers
By relaxing laws and regulations that complicate trade
By denying planning permission for overseas business development
What are the opportunities of globalization to a business?
Decreased living standards
Access to smaller markets
Higher costs
Access to larger markets
What is one of the reasons why access to a bigger pool of labor is important for businesses?
It can lead to a shortage of domestic labor
It can boost the labor supply and potentially improve productivity
It can increase the costs of hiring
It can limit the development of a business
What is one benefit of globalisation for businesses in terms of taxation?
Businesses can choose where to locate their base to reduce tax.
Globalisation increases the overall tax burden on businesses.
Businesses must pay taxes in every country they operate in.
Globalisation eliminates the need for businesses to pay taxes.
What is a skills gap?
A surplus of workers with specific skills.
A shortage of workers with specific skills.
A government policy to improve worker skills.
A training program offered by businesses.
What is considered the most worrying threat for most businesses due to globalisation?
Reduced taxation
Skills gap
Increased competition
International takeovers
What can be a consequence of the interdependence that results from globalisation?
Decreased risk of external shock
Increased cultural exchange
Serious problems due to conflict or natural disasters
More stable economic conditions worldwide
What is a hostile takeover?
A business collaboration agreed upon by all parties.
A business buying a majority share in another with mutual consent.
A business buying a majority share in another against the wishes of the target company's directors or management.
A government seizing control of a private business.
