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N5 Business Management - Understanding Business

Total questions: 53

Worksheet time: 18mins

Name
Class
Date
1.

Which sector of the economy is owned and controlled by the government?

a)

Public

b)

Private

c)

Third

2.

Which sector of the economy would a supermarket business operate?

a)

Public

b)

Private

c)

Third

3.

Which business is an example of a public sector organisation?

a)

Supermarket

b)

Charity shop

c)

NHS Scotland

4.

Which of the following items is NOT a need?

a)

Mobile phone

b)

Water

c)

Shelter

5.

In which sector of the economy would a social enterprise operate?

a)

Public

b)

Private

c)

Third

6.

Which sector of industry is concerned with extracting raw materials from the land?

a)

Primary

b)

Secondary

c)

Tertiary

7.

Which sector of industry manufactures finished products?

a)

Primary

b)

Secondary

c)

Tertiary

8.

Which sector of the economy has the main aim of maximising profits?

a)

Private

b)

Public

c)

Third

9.

In which sector of industry would a hairdresser operate?

a)

Primary

b)

Secondary

c)

Tertiary

10.

Which of the following is NOT a good?

a)

Car

b)

Haircut

c)

Mobile phone

11.

What is customer service?

a)

The service a customer receives before, during and after a sale

b)

The service a customer receives during a sale

c)

The service a customer receives after a sale

12.

What is the purpose of a customer care strategy?

a)

To find out the needs and wants of a customer

b)

To let the customer know the level of service to expect

c)

To ensure no faulty or low quality products reach customers

13.

Which of the following is a direct consequence of bad customer service?

a)

Increased competition

b)

Lower quality of product or service

c)

Low staff morale

14.

What is meant by customer loyalty?

a)

If customers receive a good quality service they are more likely to return

b)

If a customer receives a good quality service they are more likely to recommend the company to family and friends

c)

If a customer receives a good quality service they are less likely to complain

15.

Why are satisfied customers important to a business?

a)

They cause an increase in sales of goods and services

b)

They cause a reduction in a business’s competition

c)

They improve a company's market research

16.

Which sector of economy is run by the government?

a)

Private

b)

Public

c)

Third

17.

Private Limited Companies (LTD) are found in which sector of economy?

a)

Private

b)

Public

c)

Third

18.

How do public sector organisations raise finance?

a)

Bank loans

b)

Retained profit(s)

c)

Tax revenues

19.

Which of the following is a disadvantage of being a sole trader?

a)

They possess unlimited liability

b)

They possess limited liability

c)

They receive annual dividends

20.

What is a sleeping partner?

a)

A partner who does not invest equity into the business

b)

A partner not involved in day to day running of the business

c)

A partner who does not have a vote

21.

What are the minimum and maximum number of partners allowed in a partnership?

a)

1-50

b)

2-25

c)

2-20

22.

What does limited liability mean?

a)

A shareholder only receives a limited share of the profits

b)

A shareholder is liable for all debts

c)

A shareholder is only liable for their equity invested

23.

Which sector of economy is a social enterprise organisation found in?

a)

Private

b)

Public

c)

Third

24.

Who is appointed to run a charity?

a)

Board of trustees

b)

Board of shareholders

c)

A collection of volunteers

25.

What is the most basic objective for all businesses?

a)

To maximise profits

b)

To survive

c)

To provide a service

26.

What does profit mean?

a)

Total income ÷ by total costs

b)

Total costs - total income

c)

Total income minus total costs

27.

Which of the following organisations is most focused on offering a high-quality service?

a)

NHS Scotland

b)

Computer shop

c)

Supermarket

28.

If an organisation has environmental issues as a focus, which objective will they prioritise?

a)

Provision of a high-quality service

b)

Ensuring maximum social responsibility

c)

Maximising customer satisfaction

29.

What does being the market leader mean?

a)

Being the best in the market

b)

Being the most well known in the market

c)

Being number one in sales in the market

30.

Which of the following is a political factor?

a)

Unemployment

b)

Laws

c)

Interest rates

31.

Which of the following is an environmental factor?

a)

Lifestyles

b)

Automation

c)

Recycling

32.

Which of the following is a social factor?

a)

Imitators

b)

Demographics

c)

Unemployment

33.

Which of the following is an economic factor?

a)

Tax

b)

Exchange rates

c)

Demographics

34.

Which of the following is an economic factor?

a)

Inflation

b)

Automation

c)

Demographics

35.

Which of the following is a social factor?

a)

E-commerce

b)

Consumer tastes and trends

c)

Recycling

36.

Which of the following is an economic factor?

a)

Product differentiation

b)

Exchange rates

c)

Tax

37.

Which of the following is a technological factor?

a)

Imitators

b)

Demographics

c)

E-commerce

38.

Which of the following is a competitive factor?

a)

Rivals relocating stores

b)

Automation

c)

Inflation

39.

Employees often influence a business through which of the following?

a)

Creating policies

b)

Conducting appraisals

c)

Industrial action

40.

Which of these sources of finance do not have to be paid back?

a)

Bank loan

b)

Government grant

c)

Commercial mortgage

41.

Employees can influence a business through which of the following?

a)

Setting budgets

b)

Productivity

c)

Hiring and firing

42.

Managers can influence a business through which of the following?

a)

Hiring and firing

b)

Industrial action

c)

Mobile applications

43.

Employees can influence a business through which of the following?

a)

Buying new machinery

b)

Satisfying customers through the purchasing process

c)

Creating effective policy

44.

Which of the following is an internal stakeholder?

a)

Government

b)

Employees

c)

Bank

45.

Which of the following is an external stakeholder?

a)

Owners or Shareholders

b)

Managers

c)

Customers

46.

Which of the following stakeholders have an interest in receiving a dividend?

a)

Governemnt

b)

Owner or Shareholder

c)

Employee

47.

Which of the following stakeholders has an interest in ensuring loans are paid back?

a)

Government

b)

Suppliers

c)

Banks

48.

Which of the following stakeholders has an interest in firms paying corporation tax?

a)

Government

b)

Local community

c)

Suppliers

49.

Which of the following stakeholders can vote at an Annual General Meeting (AGM)?

a)

Manager

b)

Employee

c)

Owner or Shareholders

50.

Which of the following stakeholders is most concerned with the effects of the business on infrastructure?

a)

Local community

b)

Suppliers

c)

Customers

51.

Which of the following stakeholders can hold industrial action?

a)

Owners or Shareholders

b)

Employees

c)

Local community

52.

Which of the following stakeholders can hire and fire employees?

a)

Managers

b)

Government

c)

Suppliers

53.

Which of the following stakeholders provide raw materials to the business?

a)

Customers

b)

Suppliers

c)

Employees