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WorksheetsUnit 013 - Business Commercial and Financial Awareness
Total questions: 140
Worksheet time: 1hrs 27mins
A customer owes your company money. What is the term for that customer?
Director
Creditor
Shareholder
Debtor
Your company keeps some money back from its turnover to save for future use. What is this called?
Profit
Capital
Dividend
Revenue
A customer lives two miles from your company headquarters, what type of customer are they?
Local customer
National customer
Distant customer
International customer
The acronym TIMWOOD is used to describe ways of avoiding what?
Staff costs
Debt
Tax
Waste
In the acronym TIMWOOD, what does the W stand for?
Wanting
Waiting
Worst
Wishing
What does R&D stand for?
Research and development
Research and design
Realisation and design
Realisation and development
BMW manufacture automobiles. Which of these companies is a main competitor in the automobile market?
Boeing
Audi
Airbus
Lego
Which of these is a definition of ‘demand’ from the phrase ‘supply and demand’?
How much of a product is wanted
How much of a product is wasted
How much of a product is available
How much of a product costs to make
A legal term for someone mentioned in a contract is:
Consignee
Party
Trader
Trainer
A company is seeking a new supplier of drive belts. They could put this out for what?
Total option
Testing
Trade
Tender
What is the formal term for the numbered paragraphs in a contract?
Clips
Clauses
Parts
Sections
A customer buys a new vacuum cleaner. The manufacturer promises to repair or replace it if it goes wrong in the first three years. What is this usually called?
A warranty
A word of honour
A credit
A delivery notice
A contract can have a clause identifying force majeure. Which of the following is an example of force majeure?
A customer refusing to pay for goods
An earthquake disrupting business activities
A workforce shortage disrupting business activities
The customer no longer wanting the product
A code of conduct is a document presented to a new employee that requires them to adhere to a set of ethical standards and policies whilst working for the organisation. True or false?
True
False
A company can be small when it first sets up business. What is such a business sometimes called?
A start-up
A PLC
An establishment
A not-for-profit
Companies can plan projects and activities by using planning charts and tools. What is an example of this?
A Gibson diagram
A circuit diagram
A Gantt chart
A break-even chart
What does CEO stand for?
Chief Engineering Officer
Casting Executive Officer
Credit Elective Officer
Chief Executive Officer
A full-time employee of a company is best described as?
Someone who works for the company for a large number of hours all week
Someone who works for the company for half the week
Someone who works for the company on a short-term contract
Someone who works flexibly
A customer pays for a product a bit at a time. This is called paying by what?
Installations
Instalments
Instilments
Incomings
Break-even is when what happens?
A company can afford sick pay
An employees get paid
Income equals outgoings
A company sells all its stock
Recording financial transactions is important for maintaining ____.
confusion
financial health
secrecy
chaos
The concept of financial responsibility includes ____.
ignoring financial obligations
managing money wisely
spending without limits
investing in risky ventures.
What is the role of the owner when other stakeholders are involved in the business?
To ignore financial responsibility
To ensure the company is successful and stable
To focus only on personal profit
To delegate all responsibilities to others.
As soon as there are other stakeholders involved, the owner has some financial responsibility.
Legal
Financial
Social
Environmental
Enforcing financial responsibility in the UK is largely left to whom?
The government
The stakeholders
The owner or manager
The board of directors
Loans can be taken out to ______.
Expand a business
Buy a car
Travel abroad
Purchase a house.
Fill in the blank: After the first year, Euan will owe £9,000 × 1.18 = ____.
£10,620
£11,000
£10,500
£10,800
What are indirect costs?
Costs directly associated with one item
Costs generated by multiple activities
Costs that are always fixed
Costs that are always variable.
The Bribery Act 2010 helps prevent companies from gaining a business advantage through .
innovation
marketing
bribery
partnerships
Which of the following is considered a business practice?
Filing taxes
Conducting market research
Hiring employees
All of the above.
What is the significance of legal aspects in business?
They enhance creativity
They ensure compliance with laws
They improve artistic skills
They boost culinary expertise.
Indemnities are typically included in contracts to ______.
Provide goods
Offer protection against losses
Enforce laws
Draft agreements
What does 'tendering' mean in legal terms?
Offering a contract
Submitting a bid
Signing an agreement
None of the above
Fill in the blank: 'Warranties' in a contract are ______.
Guarantees
Suggestions
Legal terms
None of the above
The second party in a contract is usually the ______.
Customer
Supplier
Third party
None of the above.
Fill in the blank: The decision to change suppliers involves considering _______.
price
quality
relationship
all of the above
What is the role of a 'guarantor' in a contract?
To provide financial advice
To ensure payment obligations are met
To draft the contract
To negotiate terms
In legal terms, what does 'breach of contract' mean?
Signing a new contract
Failing to fulfil contractual obligations
Amending contract terms
None of the above
Motivation is
the art of persuading people to do something
the drive to do something
leading people to do better
An advantage of profit sharing
Motivates workers and improves efficiency
It only has to be given at the end of the year
Managers are happy to keep employees motivated
There is not an advantage
Which financial methods motivate employees to achieve targets?
Salary
Performance-related pay
Employees having a company car
Time rate
What is the correct definition for 'Commission'?
Monthly pay, same amount despite the number of hours worked
Staff are paid for the number of items produced
Staff are paid a percentage value of items sold
A payment for producing quality goods
What is the correct definition for wage?
An annual amount usually divided into 12 monthly payments
Pay distributed weekly or daily, calculated using number of hours worked
A lump sum given on the completion of a specific task
A percentage of sales made over a given time period
Staff motivation leads to:
The business paying less to employees
Higher labour turnover
Increased output and profit
Which of the following are internal stakeholders?
Shareholders
Creditors
Debtors
Competitors
Which of the following stakeholder groups is classified as external stakeholders?
Owners or shareholders
Employees
Executive directors
Creditors
External stakeholders include
Customers
Shareholders
Employees
Directors
Which of the following stakeholder groups is least likely to be an external stakeholder?
General public
Government
Trade unions
Competitors
A business might want to become involved in community projects even though there are not necessarily any direct financial gains from doing so. Which option below does not provide a reason for doing so?
The subsequent press coverage that it may attract
To enhance the image of the business
To boost staff morale and motivation
For staff professional development
Stakeholders of a socially responsible firm, such as customers and employees, might want the business to donate money to charity. Shareholders of the same firm may not necessarily agree with this as it reduces their potential dividends. This is an example of
Stakeholder conflict
Shareholder compliance
Compliance costs
Unfair competition
Shareholders are
The owners of limited liability companies
Entitled to receive dividends each year irrespective of the profits made
External stakeholders of a private limited company
Individuals or organisations with an investment interest in a particular business
Stakeholders are
People who can influence the behaviour of businesses
Individuals, groups or organisations that are affected by the behaviour of businesses
All those parties directly working for an organisation and are affected by its actions
The people or organisations that own shares in the business
Increased concern from consumers over the environment has led to new business start-ups developing products from recycled materials. These business ideas have come about due to:
Services that have become obsolete
Products that have become obsolete
Changes in consumer demand
Changes in the interest rate
Lack of overall planning and poor decision-making can lead to business failure. This is known as:
Poor management
Poor quality
Poor understanding of the economy
Poor sales levels
The money that a business spends
Income
Profit
Expense
Cash
The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell
Cost of goods
Profit
Competition
Operating expenses
Money remaining after the cost of goods expense and operating expense have each been subtracted from the total income
Gross Profit
Cash
Net profit
Competition
If a company earns £5000 per month and spends £3000 on expenses, what is the monthly profit?
£8000
£2000
£5000
£15000
An individual who works on a self-employed basis would most likely be classed as what?
Partnership
Sole Trader
Public Limited Company
Private Limited Company
In a partnership, both parties' assets are liable if there is a problem.
True
False
What would you call a company that is registered with Companies House and has shares available for the public to purchase?
Sole Trader
Partnership
Public Limited Company
Private Limited Company
Which one of these would be classed as a social objective within a business?
Testing regimes
Adhering to Building Regulations
Only employing local people
Using eco-friendly processes
Financial stability, Ethical Values, Care for Life and Collaborative Working are all examples of what?
Sustainable technologies
A business' values
CSR
ISO 9000
What does the acronym KPI mean?
Key Performance Indicators
King Performance Indicators
Key Preferable Indicators
Key Performance Instances
... is defined as the amount of money paid for the use of someone else's money.
profit
interest
loan
What is the purpose of a balance sheet in business financial records?
To provide a snapshot of a company's financial position
To track employee attendance
To calculate the cost of goods sold
To determine the company's marketing strategy
What is the difference between accounts receivable and accounts payable?
Accounts receivable is the money the company has already paid, while accounts payable is the money the company will receive in the future.
Accounts receivable is money owed to the company, while accounts payable is money the company owes to others.
Accounts receivable is the money the company pays to suppliers, while accounts payable is the money owed by customers.
Accounts receivable is money the company owes to others, while accounts payable is money owed to the company.
What is the purpose of a cash flow statement?
To track the number of employees in the company
To provide information about the cash generated and used by a company
To measure the company's social media engagement
To monitor the company's inventory levels
What is the formula to calculate the gross profit of a business?
Gross Profit = Revenue + Cost of Goods Sold
Gross Profit = Revenue / Cost of Goods Sold
Gross Profit = Revenue - Cost of Goods Sold
Gross Profit = Revenue x Cost of Goods Sold
What is the difference between a profit and loss statement and a balance sheet?
A profit and loss statement shows the company's financial position at a specific point in time, while the balance sheet provides a snapshot of the company's financial performance over a period of time.
Both are financial statements, but the profit and loss statement shows the company's financial performance over a period of time, while the balance sheet provides a snapshot of the company's financial position at a specific point in time.
A profit and loss statement includes assets and liabilities, while the balance sheet includes revenue and expenses.
A profit and loss statement is used for tax purposes, while the balance sheet is used for internal financial analysis.
What is the purpose of an audit in business financial records?
To provide entertainment for the auditors
To create more work for employees
To increase the company's expenses
To ensure accuracy, compliance, and detect/prevent fraud
The absence of an essential element will always render a contract void.
true
false
All contracts formed must be in writing.
true
false
What is the refusal of an offer by an offeree?
Revocation
Counteroffer
Insanity
Rejection
Which of the following is the most common/ acceptable reason to discharge a contract.
Performance
Fraud
Breach
Agreement
Any agreement enforceable by law
Offer
Contract
Agreement
Consideration
What is required to form a legally binding contract?
Offer, Acceptance, Consideration, Intention, Certainty.
Duty, Breach, Causation, Damages
Offer, Acceptance, Collateral, Sufficiency.
Invitation to treat, Offer, Counter Offer, Acceptance.
What is the definition of an offer?
An expression of willingness to negotiate.
A declaration that one party will contract with another.
Expression of willingness to contract with the party to whom it is addressed, as soon as the latter accepts its terms.
An invitation for other parties to consider whether they are able to purchase the goods/services.
Which of the following describes the revocation or termination of an offer?
Rejection
Failure to satisfy or fulfil conditions.
Counter offer or rejection of the offer.
The offer may be terminated by the passage of time or the death of the offeree/offeror
All of the above are correct.
A contract is:
a promise between two parties that is enforceable by law
a promise between two parties to do something
What is the term used to describe the document that is entered into by the Service Provider and the Client?
Invoice
Memo
Agreement
Receipt
Under which section of the Contract are the services that the Service Provider agrees to provide to the Client described?
Payment Terms
Termination
Services
Confidentiality
When does the Contract commence as per the text?
Termination Date
Payment Date
End Date
Start Date
What is the clause that states both parties must keep confidential information obtained during the Contract?
Payment Terms
Intellectual Property
Confidentiality
Termination
What is the clause that states the Contract will be governed by the laws of a specific State or Country?
Governing Law
Dispute Resolution
Entire Agreement
Amendments
Which of the following is the most common/ acceptable reason to discharge a contract.
Performance
Fraud
Breach
Agreement
Agreement consists of reciprocal promises between at least _________
three parties
six parties
four parties
two parties
The contract can be ______ if either party fails to fulfil its obligations.
entitled to
terminated
at the present time
in the near future
Which of the following is NOT a common use of data analytics in business?
Predicting customer behaviour
Identifying market trends
Hiring more employees
Improving operational efficiency
What is data analytics?
The storage of business records
The process of examining data to find patterns and insights
The study of computer programming languages
A method of financial auditing
What is a database?
A type of hardware used for data storage
An organised collection of data stored electronically
A security system for protecting business documents
A business strategy for market expansion
Why do organisations use databases?
To store and organise large amounts of data
To create physical records of customer transactions
To prevent cybercrime
To increase office space
What is the main advantage of cloud-based databases?
They are always free to use
They can be accessed from multiple locations securely
They eliminate the need for cybersecurity measures
They replace the need for employees
Which of the following is a risk associated with cloud computing?
Data breaches
Increased employee motivation
Higher rental costs
Reduced need for customer service
One benefit of cloud computing is:
Scalability and cost savings
Increased paperwork
Higher maintenance costs
Reduced online security
Employees self-reporting, automatic data collection and analysis, and meetings are all methods that managers can use to:
take corrective action
set standards of excellence
compare performance with standards
measure the organisation's performance
Introducing a product to a limited group of customers to see what its acceptance will be is what type of control?
marketing
technology
human resources
product/production
When managers control their businesses' finances, their primary goal is to ensure that:
money is being set aside for community outreach programmes
the organisation is spending more money than it is taking in.
the company is using its funds wisely, while earning as much as it can.
employees are taking full advantage of the company's financial savings benefits.
What is the job of a business manager
oversee the activities of workers
ensure that a company or department is on track to meet its financial goals
hire, train and evaluate new employees
All of the above
In this type of business, the owner is responsible for all debts.
Corporation
Sole-Proprietorship
Partnership
Cooperative
A business that takes natural resources and converts them into a consumer good.
Extrator
Manufacturer
Marketer
Wholesaler
A form of production that makes a product to fit one customer's needs.
Mass Production
Bulk Manufacturing
Custom Manufacturing
Marketing
A ____ is an agreement between two parties to carry out a transaction, such as the sale of goods from a seller
to buyer.
patent
regulation
copyright
contract
Functions of management include:
Plan
Organise
Staff
All of the above
What involves deciding what work will be done and how it will be accomplished?
Organising
Planning
Staffing
Directing
What involves providing guidance to workers and work projects?
Managing
Staffing
Organising
Directing
_______ involves monitoring the work effort.
Observing
Controlling
Planning
Staffing
Managers need what type of skills?
Technical Skills
Interpersonal Skills
Conceptual Skills
All the Above
A single unit business is also called an independent business.
True
False
Which form of ownership is operated by only one person?
Sole proprietorship
Partnership
Corporation
Which form of ownership is run by shareholders?
Sole Proprietorship
Partnership
Corporation
A(n) _________________ shows how tasks are organised, who performs them, and the levels of responsibility.
Operations Manual
Organisational Chart
Schedule
Contract
Why is it important to learn about business management?
To understand different management theories
To gain a broad understanding of business-related aspects
To experience all aspects of business
To analyse information and make decisions
What are the main functions of business management?
Planning, organising, leading, controlling
Analysing information, setting timelines, making decisions
Creating detailed plans, gathering information, evaluating decisions
Attracting like-minded employees, reducing uncertainties, improving resource utilisation
Which of the following best describes the difference between short-term and long-term goals?
Short-term goals take less than 12 months to achieve, while long-term goals take at least 1-10 years to achieve.
Short-term goals take at least 1-10 years to achieve, while long-term goals take less than 12 months to achieve.
Short-term goals and long-term goals take the same amount of time to achieve.
Short-term goals are not important in business management.
What is the purpose of objectives in business management?
To help expectations, measure progress, and offer a sense of achievement.
To create confusion and chaos within the organisation.
To make employees feel overwhelmed and stressed.
To discourage employees from reaching their goals.
What is the main purpose of organising in business management?
To establish orderly uses of all resources and activities to work towards the set goals.
To create unnecessary complexity and confusion within the organisation.
To delegate responsibilities to the appropriate employees.
To prevent the achievement of goals.
What is the purpose of employee evaluations in business management?
To provide feedback, discuss areas for improvement, and reward high-performing employees.
To discourage employees and lower their morale.
To avoid any form of performance measurement.
To decrease employee satisfaction and motivation.
Which of the following are business expenses?
personal care
advertising
revenue
profit
Which bank services is a new business likely to need?
a loan and a checking account
loan
balance
debit card
What is the term for revenue left over after paying business costs?
gross balance
profit
inventory
loss
Charging more for an item guarantees a higher profit.
true
false
A quality business follows a model of best practices such as...
trying to meet the customer's needs
continuous improvement
innovative ideas
all of these
Net pay is
the money a worker earns
money to invest
the money earned by an employee after taxes.
None of these choices.
Selling price is the amount of money a buyer pays and a seller ______ for a good or service.
wants
receives
costs
uses
To make a profit, a business's revenue has to be _____ than its costs.
greater
less than
equal to
None of the these
The goods that a business has in stock to sell are called _______.
items
natural resources
inventory
stuff
Teamwork is important in any business because
it takes everyone to get the job done.
everyone needs money
one person is the boss
time is limited
The total of all expenses needed to run a business is called
income
budget
salary
operating costs
Functional areas of IS (Information System) in Business
Accounting
Manufacturing
Marketing
All of the above
It deals with the coordination and use of three very important organisational resources - information, people and technology.
Maintenance Information Systems
Management Integrative Systems
Management Information Systems
Management Informative Systems
The most important of all organisational/business resources, as they set goals, carry out tasks, make decisions, serve customers, and provide a reliable technological environment so the organisation/business can run smoothly.
Information
People
Technology
Units of product that have been completed but not yet sold to customers
cycle inventory
finished goods
intangible inventory
raw materials
The combination of processes and activities related to the upkeep of a facility, including maintenance of the facility, the systems operating within it, and the assets and equipment used within the facility to produce the main business output.
Buffer Inventory
Decoupling Inventory
Finished Goods
MRO
(Maintenance, Repair and Operations) goods
Usually have fewer than 100 employees; run by a few managers; “mum and dad” businesses
Production
Marketplace
Small Businesses
Big Businesses
Usually have more than 100 employees; usually are national or global; can be divided into many different departments
Production
Marketplace
Small Businesses
Big Businesses
Organisational system found in traditional businesses; managers look up to supervisors or executives look down to employees
Vertical Organisation
Horizontal Organisation
Green Marketing
Product Recalls
Organisational system which involves self-management teams who set their own goals and make their own decisions; management levels are eliminated and supervisors are reduced; “flattening” of an organisation
Vertical Organisation
Horizontal Organisation
Green Marketing
Product Recalls
Comparing what you planned with the actual performance
Planning
Organisation
Control
Business Plans
Written proposals describing a prospective business to potential investors and lenders
Planning
Organisation
Control
Business Plans
