Worksheets2024 O/N - 2
Total questions: 40
Worksheet time: 20mins
How is industry defined?
activities that lead to the satisfying of human wants
buying and selling products
extraction, manufacturing and construction
provision of direct services
What is an advantage of specialisation to factory workers?
better production quality
fewer tools used
improved skills
over-production
Mr. X has started a business selling cheese to Germany.
Which types of interrelated commercial activities is Mr. X involved in?
commercial services and direct services
commercial trade and direct services
export trade and commercial services
import trade and commercial services
What is a feature of a multiple chain store?
centralised purchasing
less than five branches
many departments
wide range of services
Why is the branding of goods important for self-service store?
Customers can identify the goods they require.
Goods are less likely to be damaged.
Perishable goods may be stored for long periods.
Prices of goods are clearly marked.
The diagram shows a customer buying goods from a retailer.
loyalty schemes
mobile retailing
omnichannel retailing
showrooming
Which method of credit is most likely to be used to buy a new luxury car?
credit card
extended credit
hire purchase
informal credit
The diagram shows three channels of distribution for goods.
Which statement best explains why wholesalers have been eliminated from channels 2 and 3?
Manufacturers are producing goods that are perishable.
Manufacturers are selling goods that do not require storage.
Manufacturers are trying to reduce costs and increase profits.
Manufacturers want to control the supply of goods.
A retailer purchased goods from a wholesaler and received an invoice for $10 000. The wholesaler then sent the retailer a credit note for $2000.
How much does the retailer owe the wholesaler?
$2000
$8000
$10 000
$12 000
How much would a buyer save when given a cash discount of 2.5% on an item originally priced at $600?
$5
$15
$24
$30
What is a benefit of international trade to a country?
Free trade is common between countries.
The country can dispose of surplus goods.
The country can increase the prices of its goods.
There are currency differences between countries.
The table shows figures relating to a country’s international trade.
What is the Balance of Trade?
- $3 bn
$1 bn
$5 bn
$39 bn
Which organisation is responsible for the collection of import duty?
customs authority
forwarding agent
port authority
public corporation
The diagram shows a newspaper headline.
" US Dollar Hits a New High Rate on Foreign Exchange Markets "
How will this new high rate of the US dollar affect exporters and importers that trade with the US?
Exporters will be forced to develop markets outside the US.
Exporters will benefit from increased revenue from sales to the US.
Importers buying goods from the US will benefit from lower costs.
Importers will be able to buy more goods from the US.
What is a disadvantage of advertising to a consumer?
it adds to the price of goods paid by consumers
it encourages consumers to buy only the advertiser’s product
it is used to remind consumers about an established brand
it makes consumers aware of products to purchase
Which advertising method is most likely to be eye-catching to passing commuters?
digital billboard
direct mail
magazine
sponsorship
A confectionery business has shops nationwide.
Which method should it use to promote its new range of chocolates?
point of sale
product placement
samples
sponsorship
Why is communication important in the global market?
goods can be transported within a country
it guarantees an increase in international trade
replies are received immediately
worldwide suppliers can be contacted quickly
The diagram shows a postal service used by Pet Insurance Company for market research.
What is the advantage to Pet Insurance Company of using this postal service?
It can be used for sending valuable items through the post.
It encourages potential customers to respond.
It provides online tracking of post anywhere in the world.
It provides proof of posting and delivery.
What is an app store?
a barcode reader in a supermarket
a digital platform for installing software on devices
a lightweight portable computer
an in-touch interface used to send signals to a computer
Which statement describes a cruise liner?
It carries bulk cargoes.
It carries containers.
It has no fixed timetables.
It offers luxury travel.
Which facility is not provided by both airport and port authorities?
car parking
container terminal for cargo
cranes for unloading cargo
security service
What is a document of title to goods?
bill of lading
certificate of incorporation
insurance policy
invoice
A regional distribution centre wants to make it possible to pick items quickly from shelves in the warehouse.
Which equipment might it invest in to enable this?
conveyor belts
loading bays
pallets
robots
Which purpose of insurance is related to payments against losses?
business confidence
compensation
financial protection
risk reduction
Which type of insurance covers claims against faulty or dangerous goods?
consequential loss
employers’ liability
product liability
public liability
An insurance company has estimated that 5000 people will purchase fire insurance. The company forecasts 100 claims totalling $720 000 in the next year.
What is the average premium that this insurance company will charge for the 5000 people?
$50
$144
$720
$7200
A retail store suffers fire damage worth $35 000. The store closes for four weeks while the damage is being repaired. The cost of the repair is $30 000. The store owner has insurance policies for premises and consequential loss.
Which statement best explains the store owner’s insurance cover?
They can claim full compensation of $35 000 for the fire damage.
They can claim loss of profit from being closed as well as $30 000 for the fire damage.
They will only receive payment for loss of profit from being closed.
They will receive $65 000 as compensation for the fire damage to the premises.
The diagram shows a banking statement.
What is this document called?
bank statement
bank transfer
paying-in slip
withdrawal form
Which statement describes a cashless society?
closure of bank branches
electronic payments replacing notes and coins
elimination of the cheque system
reduction in bank staff
The diagram shows different forms of business organisation.
Which sector do all these business organisations operate in?
private sector
public sector
secondary sector
tertiary sector
Which term describes a business that has changed ownership from the private sector to the public sector?
franchised
globalised
nationalised
privatised
A study found that the rate of business failure in the first year is much higher for sole traders than for franchises.
Which factor would explain this?
franchises attract more talented business people
operating as a franchise involves less risk
sole traders are able to keep all profits
sole traders have a limited amount of capital to invest
Which term is a source of self-financing?
debentures
factoring
overdrafts
retained earnings (profits)
Which term is used for purchasing inventory?
current liabilities
fixed capital
gross profit
working capital
Which action would increase the working capital of a car manufacturer?
buying more steering wheels
obtaining a loan to design a new car
purchasing car seats on credit
selling unwanted spare parts
What does the letter T stands for in the PEST analysis of the environment of commerce?
tariff
taxation
technological
trade
What is an example of an economic factor that affects commercial activities?
better communications
changes in consumer tastes
political stability
unemployment levels
How might a multinational company reduce its carbon footprint?
advertise its products using digital billboards
conduct regional meetings through videoconferencing
stop giving efficiency ratings on its appliances
use its own transportation vehicles for delivery
Mrs Wang purchased a bed from RR Supplier. The company has the advertising slogan, ‘We guarantee we will not be beaten on price.’ She then found the same model of bed $40 cheaper from a different supplier.
Which action must RR Supplier take when Mrs Wang complains?
accept the bed back and give a refund of $20
change its advertising slogan
refund the difference of $40
supply a voucher for $40
