WorksheetsTheme 2 - 2.1 end of unit recap
Total questions: 20
Worksheet time: 10mins
Which of the following is true in relation to sources of finance for growing and established businesses?
Selling assets is an external source of finance
Share capital is an external source of finance
Retained profit is an external source of finance
Loan capital is an internal source of finance
Which of the following best describes the term takeover?
When two firms agree to join together to make one new business
When a business finds a new market in another country
When one business purchases another business
When a business brings something new to the market
Which method of growth will most likely reduce the number of businesses that operate in a domestic market?
Expansion overseas
Opening of new stores
Takeover of another business in the home country
Entry into new foreign markets
Which of the following is true in relation to sources of finance for growing businesses?
A private limited company can raise finance through the stock exchange
Interest payments have to be made when using retained profit
A public limited company can sell more shares to fund growth plans
Selling an unused building is an example of loan capital
Which of the following best describes growth by expanding overseas? When a business:
Finds new customers to buy its products in its domestic market
Purchases another business in its home country
Finds a new market in another country
Invests heavily in research and development
ALDI plans to recruit 4,000 new employees in the UK over the next 3 years. This is an example of the business:
Focusing on survival
Exiting markets
Growing its workforce
Decreasing its product range
Factors such as the economic climate, competition and changing tastes and fashions can affect the aims and objectives of a business. These would be classed as a change in aims and objectives in response to:
Internal reasons
Technology
Legislation
Market conditions
Which of the following statements is true in relation to why an evolving business’s aims/objectives may change?
A newly appointed management team is an example of a change in market conditions
A business sales and profits increasing is an example of a response to business performance
A new competitor entering the market is an example of an internal change
The introduction of regulations meaning businesses have to charge for plastic bags is an example of a change in response to technology
When Marks & Spencer announced its intentions to close stores in several countries, including Belgium and The Netherlands, it was classed as:
Focusing on growth
Exiting markets
Growing the workforce
Increasing product range
A business has experienced a significant fall in sales due to a slowdown in the economy. In this situation, the business is likely to focus upon:
Growing the workforce
Domestic expansion
Increasing its product range
Survival
Which of the following is an example of a business behaving ethically?
Paying employees above the living wage
Buying non fair trade products rather than the fair trade alternative
Paying suppliers the lowest possible price for raw materials
Setting high retail prices as the only producer of an essential product
Which of the following best describes the term pressure group?
An individual that has shares in a business
Anyone who has an interest or is affected by the activities of a business
An individual or organisation that provides a business with materials
An organisation with shared aims that seek to influence opinions, decisions and policy
Which of the following best describes the term trade-off?
Having more of one thing may mean having less of another
Having more of one thing may mean having even more of another
Having the same amounts of everything
Having less of everything
Businesses often face a trade-off between environmental responsibility and profit. Which of the following is an example of a cosmetics business prioritising profit over the environment?
Using more expensive ingredients that create less pollution
Using less expensive ingredients that create less pollution
Using more expensive ingredients that create more pollution
Using less expensive ingredients that create more pollution
Which of the following is an example of how a business could accept greater environmental responsibility?
Reduce the trade credit period to pay suppliers by five days
Pay material suppliers a fair price for any goods purchased
Use more fuel efficient methods to transport bulky products
Pay all employees above the National Living Wage
Which of the following best describes the term globalisation?
Goods purchased from overseas by UK businesses and consumers
The process by which the world is increasingly becoming one market
When a business produces goods in more than one country
When goods and services are made in one country and sold in another
Imports are a feature of global markets. Which of the following is an example of a UK import?
A lamp made in China is sold to UK customers
A vase made in Spain is sold to customers in Spain
A table made in the UK is sold to customers in Germany
A kettle made in the UK is sold to UK customers
A UK business extends its delivery service to include overseas markets. This is an example of changing which element of the marketing mix to compete internationally?
Product
Price
Promotion
Place
Which of the following is a benefit to UK businesses of globalisation?
Being vulnerable to the world economic climate
Increased competition can lead to business failure
Access to new and bigger markets
Multinational firms are increasingly powerful
Which of the following best describes the term imports?
Which of the following best describes the term imports?
Goods produced by UK businesses and purchased by other UK businesses
Goods purchased from overseas by UK businesses and consumers
Goods produced by a business in one country and sold in another
Goods purchased by UK businesses from other UK producers
