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Business Studies - Exam Prep

Total questions: 45

Worksheet time: 27mins

Name
Class
Date
1.

The best definition of a sole trader form of business organisation is:

a)

the business only employs one person

b)

the business is owned by one person

c)

the firm has a single customer

d)

there is a single firm in the industry

2.

One of the claimed advantages of a sole trader business is that:

a)

owners have limited liability

b)

shares can be sold to raise capital

c)

decisions and responsibilities can be shared

d)

the owner has complete control

3.

One of the disadvantages of a sole trader business is that:

a)

capital is limited to owner’s savings and bank loans

b)

decisions take too long to make

c)

as they are government owned there is no profit motive

d)

the owners may disagree

4.

One of the advantages of a partnership form of business organisation is that:

a)

all partners always have limited liability

b)

shares can be sold on the Stock Exchange

c)

the business survives the death of the partners

d)

the business has access to more capital than a sole trader

5.

Carrying out staff training is done by ...

a)

Human Resources

b)

Marketing

6.

... is responsible for organizing conferences and trade events.

a)

Finance

b)

Marketing

7.

The ... department is in charge for paying local and national taxes.

a)

Sales

b)

Finance

8.

Which of the following businesses is likely to have the most amount of capital

a)

Partnership

b)

Sole Trader

9.

Number of partners in a partnership business are.....

a)

Unlimited

b)

200 maximum

c)

2 to infinite

d)

2-20 partners

10.

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

a)

Partnership

b)

Sole Proprietorship

c)

Franchise

d)

Private limited company

11.

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

a)

Sole Proprietorship

b)

Franchise

c)

Partnership

d)

Private Limited Company

12.

Which of the following is the definition for sole proprietorship

a)

business investment that involves renting or leasing another successful business model

b)

unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

c)

unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;

d)

form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued

13.

Which of the following is an advantage of a partnership?

a)

Which of the following is an advantage of a partnership?

b)

partnerships can usually attract financial capital more easily than proprietorships.

c)

management is hard between two or more people

d)

They are inefficient.

14.

Which of these is a disadvantage of a Partnership?

a)

Easy to set up

b)

More capital

c)

More skills and expertise

d)

Unlimited liability

15.

(a)   is an initiative in business or a project or undertaking that requires boldness or effort.

16.

They are the business owners who by taking risks and making decisions, enable production to be carried out in anticipation of demand. This is called (a)  

17.

(a)   is the exchange of goods or services without the use of money.

18.

(a)   is the excess of revenues over expenses in a business enterprise.

19.

If the income of the business is less than the expenses then it makes a (a)   .

20.

(a)   is the act of selling goods or services.

21.

(a)   is a business or administrative concern which is set up for a particular purpose.

22.

The complex of activities concerned with the production, distribution and consumption of goods and services is called an (a)  

23.

(a)   is a person who engages in or takes overall administrative responsibility for the making of a product.

24.

(a)   is a person who purchases goods and services for his own personal needs.

25.

(a)   is the handing over goods for another item of equivalent value in kind.

26.

Commodities that are tangible and are generally not consumed at the same time that they are produced are called (a)   .

27.

(a)   can be defined as intangible commodities or work that are performed for remuneration.

28.

(a)   is any situation which brings buyers and sellers into contact to transact business.

29.

(a)   is an article of commerce.

30.

(a)   applies to the money and all other assets which are used in the process of production e.g. buildings machines etc.

31.

(a)   can be defined as workers confine themselves to one task and by doing so become experts at these particular tasks.

32.
What are stakeholders?
a)
Anybody who knows the name of the business
b)
Anybody who takes an interest in a business
c)
Anybody who works for the business
d)
Anybody who buys from the business
33.
True or False: stakeholders can be internal and external.
a)
True
b)
False
34.
Which of the following is NOT an example of a stakeholder?
a)
Customers
b)
Shareholders
c)
Local Community 
d)
Children
35.
True or False: financiers are a stakeholder in a business.
a)
True
b)
False
36.
As a stakeholder, what interest would the local community have in a business?
a)
Following Legislations
b)
Expansion
c)
Payment Methods
d)
Staff Pay
37.
As a stakeholder, what interest would the employees have in a business?
a)
Following Legislations
b)
Business Relationships
c)
Payment Methods
d)
Staff Pay
38.
As a stakeholder, what interest would the employers have in a business?
a)
Increasing Profits
b)
Business Relationships
c)
Payment Methods
d)
Staff Pay
39.
True or False: a consequence of a business not listening to their stakeholders is employees could go on strike.
a)
True
b)
False
40.
True or False: a consequence of a business not listening to their stakeholders is they will expand.
a)
True
b)
False
41.

Which card is normally used to withdraw money from a person's personal account ?

a)

Debit card

b)

Credit Card

42.

Which of the following is an advantage of using a credit card?

a)

Interest is charged for the use of a credit card.

b)

Consumers can purchase things now, and pay for them later in the event of an emergency.

c)

You could be a victim of identity theft.

43.

What is the instrument of payment shown in the picture?

a)

prepaid card

b)

postal order

c)

cheque

d)

e-wallet

44.

Which of the following is a feature of a debit card?

a)

Payment of

transactions and

services through

an online account

using the Internet.

b)

Spend first and pay

later to the bank and

card issuer such as

supermarkets.

c)

Direct payment

using notes

and coins.

d)

Payment through

savings or checking account

using card

45.
What is the difference between Debit and Credit?
a)
Debit uses money borrowed from the bank, Credit uses the money you already have.
b)

Credit card uses borrowed money or the bank's money, Debit card uses your money.  

c)
They are both cards, they are the same. 
d)
Debit charges interest until the balance is paid. Credit does not because you are using your own own money.