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Core Paper 1 Quiz

Total questions: 65

Worksheet time: 33mins

Name
Class
Date
1.

What is the primary aim of a public sector organisation?

a)

To provide goods and services to the public rather than to make a profit.

b)

To maximize shareholder wealth.

c)

To compete in international markets.

d)

To reduce government spending.

2.

What is a stakeholder?

a)

A stakeholder is any individual or group who has an interest in the success and activities of a business.

b)

A stakeholder is a person who only works in the finance department of a business.

c)

A stakeholder is a competitor of the business.

d)

A stakeholder is a customer who buys products from the business.

3.

Which business structure involves one person owning and running the business?

a)

Corporation.

b)

Partnership.

c)

Sole trader (or sole proprietorship).

d)

Limited liability company (LLC).

4.

Which of the following is an external factor affecting a business?

a)

Examples include economic conditions, competition, legal changes, or technological changes.

b)

Employee motivation and morale within the company.

c)

The company’s internal management structure.

d)

The business’s internal communication methods.

5.

What does SWOT stand for?

a)

Strengths, Weaknesses, Opportunities, Threats.

b)

Systems, Workflows, Operations, Tactics.

c)

Sales, Workforce, Objectives, Targets.

d)

Strategies, Weaknesses, Operations, Trends.

6.

What is one key feature of a hierarchical organisational structure?

a)

There are multiple layers of management, with a clear chain of command.

b)

All employees have equal authority and responsibility.

c)

There are no managers or supervisors.

d)

Decisions are always made by employees collectively.

7.

Which term describes the general increase in prices over time?

a)

Depreciation

b)

Inflation

c)

Stagnation.

d)

Inauguration

8.

Which of the following is a financial objective of a business?

a)

Examples include profit maximisation, revenue growth, or cost reduction.

b)

Ensuring employee satisfaction and well-being.

c)

Promoting environmental sustainability.

d)

Improving customer service quality.

9.

Which legal structure allows a business to raise capital through selling shares?

a)

Public limited company (PLC) or corporation.

b)

Sole proprietorship.

c)

Partnership.

d)

Limited liability partnership (LLP).

10.

What is meant by 'limited liability'?

a)

Owners are only responsible for business debts up to the amount they invested.

b)

Owners are responsible for all business debts, regardless of investment.

c)

Owners cannot make any profit from the business.

d)

Owners are not allowed to sell their shares in the business.

11.

Which of the following is a financial objective of a business?

a)

Increasing market share

b)

Improving employee satisfaction

c)

Maximizing profit

d)

Enhancing brand image

12.

Which legal structure allows a business to raise capital through selling shares?

a)

Sole proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

13.

'Limited liability' means:

a)

Owners are responsible for all debts of the business

b)

Owners are only responsible for the amount they invested

c)

Owners have unlimited responsibility for losses

d)

Owners must pay all company taxes personally

14.

Fill in the blank: The term for a business owned and operated by one person is called a _________.

a)

Sole trader

b)

Partnership

c)

Corporation

d)

Franchise

15.

Fill in the blank: _________ refers to rules and laws created by the government that businesses must follow.

a)

Corporate mutation

b)

Market competition

c)

Business ethics

d)

Government Legislation

16.

Fill in the blank: _________ stands for Strengths, Weaknesses, Opportunities, Threats, and is a common business analysis tool.

a)

SOWT

b)

PEST

c)

SWOT

d)

MOST

17.

Fill in the blank: A _________ is a system in an organization where each person has a clear superior.

a)

Clear chain of command

b)

Open office plan

c)

Flexible work schedule

d)

Decentralized network

18.

Fill in the blank: The general increase in prices and fall in the purchasing value of money is known as _________.

a)

Stagflation

b)

Deflation

c)

Inflation

d)

Depreciation

19.

Fill in the blank: Businesses aim to _________ to make more profit from their sales.

a)

Increase profit margins

b)

Reduce customer satisfaction

c)

Decrease product quality

d)

Limit market reach

20.

Fill in the blank: A _________ is a type of company whose shares are traded publicly on the stock exchange.

a)

Private limited company

b)

Public limited company

c)

Sole proprietorship

d)

Partnership

21.

Fill in the blank: In a public limited company, owners are only liable for the money they _________.

a)

Borrowed

b)

Invested

c)

earned

d)

spent

22.

Fill in the blank: The main aim of some organizations is to _________ rather than make a profit.

a)

Provide a public service

b)

Increase shareholder wealth

c)

Expand into new markets

d)

Reduce competition

23.

Fill in the blank: A _________ is anyone who is affected by or has an interest in a business.

a)

supplier

b)

shareholder

c)

stakeholder

d)

manager

24.

Fill in the blank: A business objective to ________ means to make more profit from each sale or operation.

a)

increase profit margins

b)

reduce employee benefits

c)

expand office space

d)

decrease product quality

25.

What type of company is owned by shareholders and can sell shares to the public?

a)

Private limited company

b)

Public limited company

c)

Sole proprietorship

d)

Partnership

26.

Fill in the blank: In a public limited company, owners are only liable for the money they ________.

a)

invested

b)

borrowed

c)

earned

d)

spent

27.

Define the term: Maximise profit.

a)

To increase the difference between total revenue and total costs to the highest possible level.

b)

To reduce total revenue to the lowest possible level.

c)

To increase total costs to the highest possible level.

d)

To keep total revenue and total costs equal at all times.

28.

Define the term: Only shareholders.

a)

Individuals or entities that own shares in a company and are its partial owners.

b)

Employees who manage the daily operations of a company.

c)

Customers who purchase products from a company.

d)

Suppliers who provide raw materials to a company.

29.

Define the term: Limited company.

a)

A business structure where the company is a separate legal entity from its owners, and the owners' liability is limited to their investment.

b)

A business owned and operated by a single individual with unlimited liability.

c)

A partnership where all partners share equal responsibility and liability.

d)

A government-owned organization that operates for public welfare.

30.

Define the term: Employee morale.

a)

The financial incentives given to employees for good performance..

b)

The process of hiring new employees for a company.

c)

The set of rules and regulations employees must follow.

d)

The overall outlook, attitude, satisfaction, and confidence that employees feel at work.

31.

Define the term: Sales, Work, Organisation, Tasks.

a)

Key business functions or activities that involve selling products, performing work, organizing resources, and completing tasks.

b)

A list of unrelated hobbies and interests.

c)

A set of random words with no connection to business.

d)

A type of software used for entertainment purposes only.

32.

Define the term: Everyone reports to the same manager.

a)

An organizational structure where all employees have a single direct supervisor.

b)

A system where employees report to multiple managers simultaneously.

c)

A structure where employees have no direct supervisor.

d)

A setup where employees only communicate with peers and not with any manager.

33.

Define the term: Deflation.

a)

A decrease in the general price level of goods and services in an economy over a period of time.

b)

An increase in the general price level of goods and services in an economy over a period of time.

c)

A situation where the value of money increases due to higher production costs.

d)

A government policy to increase public spending.

34.

Define the term: Improve staff morale.

a)

To implement stricter rules and regulations for staff..

b)

To reduce the number of staff in an organization.

c)

To increase the workload of employees to boost productivity.

d)

To take actions that increase employees' job satisfaction, motivation, and overall happiness at work.

35.

Define the term: Sole trader.

a)

A business owned and operated by one individual, with no legal distinction between the owner and the business.

b)

A business owned by two or more people who share profits and losses.

c)

A company whose shares are traded publicly on the stock exchange.

d)

A non-profit organization run by a board of trustees.

36.

Define the term: Owners pay less tax.

a)

A situation where business owners benefit from lower tax rates or tax advantages compared to other business structures.

b)

A scenario where owners are exempt from all taxes regardless of income.

c)

A case where owners pay more tax than employees.

d)

A situation where only employees benefit from tax reductions.

37.

Fill in the blank: One way to increase productivity in a business is to _________.

a)

Reduce employee benefits

b)

Increase unnecessary meetings

c)

Ignore customer feedback

d)

Improve staff morale.

38.

Fill in the blank: A business owned and run by one person is called a _________.

a)

Sole trader

b)

Partnership

c)

Corporation

d)

Cooperative

39.

Fill in the blank: One advantage of certain business structures is that _________

a)

Owners pay less tax

b)

They are always non-profit

c)

They require no legal paperwork

d)

They guarantee unlimited profits

40.

Define the term: Maximise shareholder value.

a)

To increase the wealth of a company's shareholders by raising the value of their shares.

b)

To reduce the company's market share.

c)

To minimize the company's profits.

d)

To focus only on employee satisfaction.

41.

Define the term: Only employees.

a)

Refers to external consultants hired by the organization.

b)

Refers to all individuals associated with an organization, including customers and suppliers.

c)

Refers to the management team and board of directors only.

d)

Refers to a group that includes only the employees of an organization.

42.

Define the term: Public limited company.

a)

A type of company whose shares are traded publicly on a stock exchange and can be bought by anyone.

b)

A company owned and managed by a single individual.

c)

A business that is owned by the government.

d)

A partnership firm with unlimited liability.

43.

Define the term: Product quality.

a)

The marketing strategy used to promote a product.

b)

The price at which a product is sold in the market.

c)

The number of products produced in a given time period.

d)

The standard of a product as measured against similar products; how well a product meets customer expectations

44.

Define the term: Strategy, Workforce, Operations, Targets.

a)

Key components of business management: strategy (plan), workforce (employees), operations (processes), and targets (goals).

b)

Types of financial statements used in accounting.

c)

Different marketing channels for product promotion.

d)

Levels of government regulations in business.

45.

Define the term: No clear roles.

a)

A situation where everyone has a specific job title and task.

b)

A situation in an organization where responsibilities and job descriptions are not well defined.

c)

A scenario where all employees work independently without any collaboration.

d)

A case where roles are assigned based on seniority only.

46.

Define the term: Recession.

a)

A period of temporary economic decline during which trade and industrial activity are reduced.

b)

A period of rapid economic growth and expansion.

c)

A time when inflation rates are at their highest.

d)

A situation where unemployment is at its lowest and wages are rising.

47.

Define the term: Support community events.

a)

To discourage participation in local gatherings.

b)

To organize private parties for friends only.

c)

To provide assistance or sponsorship for events that benefit the local community.

d)

To limit access to public spaces during events.

48.

Define the term: Partnership.

a)

A business structure in which two or more individuals manage and operate a business in accordance with terms set out in a Partnership Agreement.

b)

A business owned and operated by a single individual.

c)

A type of company where shares are traded publicly on the stock exchange.

d)

A non-profit organization formed for charitable purposes.

49.

Define the term: Business debts are ignored.

a)

A case where business assets are distributed to employees.

b)

A scenario where business profits are doubled.

c)

A situation where the financial obligations of a business are not acknowledged or addressed.

d)

A situation where business taxes are reduced to zero.

50.

Fill in the blank: One way businesses can engage with their local area is to _________.

a)

Reduce local outreach

b)

Ignore local needs

c)

Discourage local partnerships

d)

Avoid local hiring

e)

Support community events

51.

Fill in the blank: A business structure where two or more people share ownership is called a _________.

a)

Partnership

b)

Corporation

c)

Sole Proprietorship

d)

Franchise

52.

Fill in the blank: In some business structures, _________ are ignored when considering personal liability.

a)

Business debts

b)

Personal assets

c)

Company profits

d)

Shareholder dividends

53.

Increase brand awareness means:

a)

Reducing advertising costs

b)

Selling more products

c)

Improving product quality

d)

Making more people know about a brand

54.

'Only customers' refers to ________ in a business context.

a)

People who purchase goods or services from a business

b)

Employees of the business

c)

Suppliers to the business

d)

Competitors in the market

55.

A 'Partnership' in business is:

a)

A business owned by one person

b)

A business owned by two or more people sharing profits and losses

c)

A government-owned business

d)

A non-profit organization

56.

Organisational culture is:

a)

The financial structure of an organisation.

b)

The shared values, beliefs, and practices within an organisation.

c)

The marketing strategy of an organisation.

d)

The legal policies of an organisation.

57.

'Structure, Wealth, Outputs, Time' refer to what in a business context?

a)

Stages of business growth

b)

Types of business risks

c)

Key elements of a business model

d)

Components of a marketing plan

58.

'Complete autonomy for all staff' means:

a)

Staff must follow strict rules at all times.

b)

Only managers have decision-making power.

c)

All staff have full independence in their work decisions.

d)

Autonomy is given only to senior staff.

59.

Economic growth is:

a)

an increase in unemployment

b)

a decrease in the population

c)

a reduction in government spending

d)

an increase in a country's output of goods and services

60.

'Encourage innovation' in a business context means:

a)

Promote new ideas and creative thinking

b)

Discourage risk-taking

c)

Maintain traditional methods only

d)

Avoid change in processes

61.

A 'Franchise' is:

a)

A type of business arrangement where one party grants another the right to use its trademark or business model

b)

A government-issued license to operate a business

c)

A type of partnership between two companies

d)

A form of business owned by shareholders

62.

'Business can't borrow money' means:

a)

The business is expanding rapidly.

b)

The business is making a profit.

c)

The business is unable to obtain loans or credit.

d)

The business is hiring new employees.

63.

Fill in the blank: One way to promote new ideas and advancements in a company is to ________ innovation.

a)

ignore

b)

suppress

c)

delay

d)

encourage

64.

Fill in the blank: A business model where an individual can operate a branch of a larger company is called a ________.

a)

partnership

b)

sole proprietorship

c)

corporation

d)

Franchise

65.

Fill in the blank: If a business can't borrow money, it may face challenges in expanding or covering its ________.

a)

products

b)

employees

c)

expenses

d)

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