WorksheetsBusiness first Five Chapters IGCSE
Total questions: 45
Worksheet time: 23mins
Which of the following is an example of a want rather than a need?
Water
Shelter
Food
Smartphone
The basic economic problem arises because:
Wants are limited
Resources are limited
Needs are unlimited
Supply is unlimited
Which factor of production refers to natural resources?
Capital
Labour
Enterprise
Land
Opportunity cost refers to:
The price of a product
The next best alternative forgone
Money spent on production
The cost of labour
Specialisation occurs when:
Workers switch tasks frequently
A business focuses on producing one product
Production stops
There are no skilled workers
Which of the following is NOT a factor of production?
Labour
Capital
Profit
Enterprise
Which economic sector extracts raw materials?
Primary
Secondary
Tertiary
Quaternary
Car manufacturing belongs to which sector?
Primary
Secondary
Tertiary
Public
Providing banking services is an example of:
Primary
Secondary
Tertiary
Private
A business owned by the government belongs to:
Private sector
Public sector
Primary sector
Secondary sector
Which of the following is an example of a public sector organisation?
Apple
Toyota
National Police Service
McDonald’s
Deindustrialisation refers to:
Growth of primary sector
Decline of tertiary sector
Decline of secondary sector
Expansion of manufacturing
The reward for enterprise is:
Rent
Interest
Wages
Profit
Which of the following is a characteristic of a successful entrepreneur?
Laziness
Risk-taking
Fear of failure
Avoiding decisions
Business failure is most likely caused by:
Strong financial planning
High profits
Poor cash-flow management
Skilled workers
Which is a common reason for the government to support entrepreneurs?
Increase imports
Decrease employment
Create jobs
Increase inflation
Capital employed is used to measure:
Profit
Business growth
Size of a business
Market share
Internal growth occurs when a business:
Buys another company
Merges with a competitor
Expands by increasing output
Is taken over
The main advantage of a sole trader is:
Limited liability
More capital available
Quick decision-making
Shared losses
A partnership has:
Unlimited liability
No legal identity
Only one owner
Shares sold to the public
A private limited company (Ltd) can:
Sell shares to the general public
Sell shares only to invited people
Not sell shares at all
Must have unlimited liability
A franchisee is the person who:
Creates the brand
Provides the franchise
Buys the right to use the brand
Oversees all franchises
An advantage of a public limited company (PLC) is:
Limited liability
Easy to keep financial information private
Cannot sell shares
Low chance of takeover
A cooperative is a business owned by:
The government
A single entrepreneur
A group of individuals with common interests
Shareholders on the stock exchange
A common objective for new businesses is:
Profit maximisation
Survival
Growth
Market leadership
Profit maximisation means:
Maximising customer loyalty
Making the highest possible profit
Reducing expenses only
Hiring more workers
Which stakeholder is MOST interested in job security?
Customers
Shareholders
Government
Employees
Shareholders mainly want:
Lower prices
Higher dividends
More competition
Job security
A business objective that aims to protect the environment is known as:
Profit maximisation
Survival
Social responsibility
Growth
Conflict of objectives occurs when:
All stakeholders agree
One objective satisfies everyone
Meeting one objective conflicts with another
Objectives are not measurable
Which of the following is a disadvantage of being a sole trader?
Keeps all profits
Easy to set up
Unlimited liability
Total control of the business
Which type of business organisation has a separate legal identity from its owners?
Sole trader
Partnership
Private limited company
Franchise
A major disadvantage of a public limited company is:
Limited liability
High chance of takeover
Ability to raise large capital
Continuity after owner’s death
Which business type is owned by shareholders?
Sole trader
Partnership
Public limited company
Cooperative
In a franchise, royalties are usually paid by the:
Franchisor
Franchisee
Government
Banks
Which of the following is an advantage for the franchisor?
Guaranteed profits
Faster expansion with lower costs
Full control over daily operations
No need for marketing
What is a deed of partnership?
A licence to use a brand name
A legal agreement between partners
A tax form
A document used by a limited company
Which of the following is a characteristic of a cooperative?
Owned by the government
Aimed at maximising profits
Run for the mutual benefit of members
Shares sold to the public
Which objective is most likely for a large, established company?
Survival
Growth
Break-even
Starting up
An objective focusing on customer loyalty is an example of:
Profit maximisation
Growth
Social responsibility
Customer satisfaction
Which stakeholder is MOST concerned with high dividends?
Employees
Shareholders
Customers
Government
Governments are MOST interested in a business:
Lowering prices
Paying taxes
Giving dividends
Offering discounts
Which business objective conflicts with paying higher wages to workers?
Survival
Market share
Profit maximisation
Customer loyalty
Stakeholder conflict occurs because:
All stakeholders want the same thing
Different groups have different objectives
Stakeholders do not influence the business
Only managers make decisions
A business aiming to reduce pollution is following which objective?
Profit maximisation
Growth
Social responsibility
Increase sales
