section a

Question 1

which one of the following is the definition of a stakeholder
- an individual who owns shares in the business
- an individual who has an interest int he business
- groups or individuals who have an interest in the business

Answer 1

3

Question 2

which one of the following is an internal stakeholder
- employee
- customer
- shareholder
- supplier

Answer 2

1

Question 3

which one of the following is a possible need of the shareholders of a business
- high profit levels
- high levels of pay
- prompt payment of suppliers
- low prices

Answer 3

1

Question 4

a stakeholder group who have a major influence on management decisions would be considered to have which one of the following on a stakeholder map
- high degree of influence and low level of interest
- high level of interest and high degree of influence
- low level of interest and low power

Answer 4

2

Question 5

• which one of the following is an example of the government as a stakeholder
• trade unions
• local community
• environmental health
• pressure groups

Answer 5

3

Question 6

what is an objective of trade unions
- fair pay of customers
- fair pay of employees
- fair return for investors

Answer 6

2

Question 7

which one of the following is an example of an objective of the local community
- boycotting
- reduced noise pollution
- high returns for investors

Answer 7

2

Question 8

• which one of the following is an example of an external stakeholder
• directors
• potential investors
• trade unions
• partners

Answer 8

2

Question 9

which two stakegholder groups are most likely to have conflicting objectives on wages
- shareholders and pressure groups
- shareholders and potential investors
- trade unions and shareholders

Answer 9

3

Question 10

which one of the following is a positive impact a business may have on the community
- create jobs
- conflicting objectives
customer boycotts

Answer 10

1

Question 11

• statement one - internal stakeholders all have the same objectives
  statement two - the objectives of all external stakeholders conflict with those of internal stakeholders
• false and true
• false and false
• true and false
• true and true

Answer 11

1

Question 12

• which stakeholder group is most likely to be involved in conflict management
• suppliers
• trade unions
• internal stakeholder
• supervisor

Answer 12

2

Question 13

what term is used to explain how subtasks are distributed amongst functional areas
- communication paths
- division of work
- span of control
- decentralised

Answer 13

2

Question 14

what generic term is given to the systems put in place to aid communication between employers and employees
- chain of command
- works council
- employee representation
- trade unions

Answer 14

1

Question 15

statement one - authority can be delegated
statement two - responsibility cannot be delegated
- true true
- true false
- false false
- false true

Answer 15

2

Question 16

which one of the following is likely to be a financial objective of a business
- ethical
- social
- profit
- technological

Answer 16

3

Question 17

which one of the following is an alternative name for the human resource function
- procurement
- production
- personnel
- provisions

Answer 17

3

Question 18

which functional area is responsible for promoting the business
- sales
- marketing
- human resources
- customer services

Answer 18

2

Question 19

which task is the responsibility of the procurement function?
- sourcing materials
- resolving queries
- remuneration
- customer service

Answer 19

1

Question 20

which task is the responsibility of the human resources function
- sourcing materials
- resolving queries
- remuneration
- customer service

Answer 20

3

Question 21

which task is the responsibility of the business support service function
- providing IT support
- resolving queries
- remuneration
- developing new products

Answer 21

1

Question 22

which task is the responsibility of the customer service function
- providing IT support
- resolving queries
- remuneration
- developing new products

Answer 22

2

Question 23

which task is the responsibility of the finance function
- administrative support
- record keeping
- converting inputs into outputs
- developing new products

Answer 23

2

Question 24

which task is the responsibility of the operations management function
- administrative support
- record keeping
- converting inputs into outputs
- developing new products

Answer 24

3

Question 25

which is possible consequence of poor interrelationships between business function - threat of new competitors - failure to match supple demand - human resources take over financial control - business meets its objectives

Answer 25

2

Question 26

which task is the responsibility of the RandD function - administrative support - record keeping - converting inputs into outputs - developing new products

Answer 26

4

Question 27

maintaining equipment is likely to be done by which functional area - finance - operations management - business support services - customer service

Answer 27

3

Question 28

which one of the following is a reason why businesses plan - legal requirement - guarantee survival - avoid unnecessary risk - meet pressure group objectives

Answer 28

3

Question 29

which one of the following is an example of were business ideas come from - willingness to take risks - accidental discovery - patents - unique selling point

Answer 29

2

Question 30

which one of the following is an internal source of finance - mortgage - overdrafts - reserves - share issue

Answer 30

3

Question 31

which one of the following is the most appropriate as a short term source of finance - venture capital - loans - overdraft - share issue

Answer 31

3

Question 32

which one of the following is not suitable source of finance for a sole trader - venture capital - share issue - loans - savings

Answer 32

2

Question 33

which one of the following source of finance dilutes the owners equity - loans - hire purchase - reserves - venture capital

Answer 33

4

Question 34

which one of the following is an appropriate long-term source of finance for a start-up business - reserves - venture capital - trade credit - overdraft

Answer 34

2

Question 35

which one of the following sources of finance is available from a bank - trade credit - reserves - overdraft - venture capital

Answer 35

3

Question 36

which one of the following sources of finance is available from a supplier - trade credit - reserves - overdraft - venture capital

Answer 36

1

Question 37

business planning should include which 2 of the following 1 identifying start-up costs 2 setting financial objectives 3 attracting potential investors 4 contacting the bank manager - 1 and 2 - 2 and 3 - 3 and 4 - 1 and 4

Answer 37

1 - 1 and 2

Question 38

which source of finance is most appropriate for buying fuel for a delivery van - hire purchase - crowd funding - credit card - mortgage

Answer 38

3

Question 39

which one of the following would not be on a business plan - results of market research - cash flow statement - required number of employees - prioritisation of business objectives

Answer 39

2

Question 40

which one of the following may result in the demand for products or services increasing - minimum wage increases - interest rates rise - income tax rises - prices increase

Answer 40

2

Question 41

which one of the following may result in a fall in costs to a business - ageing population - falling competition - interest rates - income rise

Answer 41

3

Question 42

which one of the following is most likely to see a rise in demand following an increase in real disposable incomes - potatoes - restaurant meals - toilet roll - newspapers

Answer 42

2

Question 43

which one of the following is most likely to have an adverse effect on demand - competition increases - cut in income tax - minimum wages rise - interest rates fall

Answer 43

1

Question 44

which one of the following is most likely to decrease demand in a market? a rise in: - real incomes - interest rates - employment - investment

Answer 44

2

Question 45

which one of the following is a non-legal implication of a business failing to meet its legal requirements - fine - loss of licence - exploiting child labour - damage to reputation

Answer 45

4

Question 46

which one of the following actions would be against labour market legislation - dismissing a worker for incompetency - members of trade union taking strike action - discriminating against an application on grounds of gender

Answer 46

3

Question 47

which one of the following factors is most likely to cause a rise in costs for a soft drinks manufacturer - lower income tax - increased immigration - rising interest rates - new suppliers entering the market

Answer 47

3

Question 48

which one of the following is an example of consumer protection - equality act - supplier of goods and services act - partnership act - copyright, design and patents act

Answer 48

2

Question 49

which one of the following is an example of employer protection - equality act - supplier of goods and services act - partnership act - copyright, design and patents act

Answer 49

1

Question 50

which one of the following is an example of how a business can behave ethically as an employer - land management - fair price - waste management - fair working practices

Answer 50

4

Question 51

which one of the following is an example of corporate objective of a firm - tactical decision making - short term goals - mission statements

Answer 51

4

Question 52

which one of the following is applicable to a business operating as a public limited company - has the term LTD after their name - shareholders have unlimited liability - can advertise their shares for sale - restrictions placed on who's shares are sold to

Answer 52

3

Question 53

which one of the following is most likely advantage of setting environmental objective - increased costs - higher labour turnover - improved competitiveness - greater flexibility

Answer 53

3

Question 54

in which business form is divorce of ownership and control most likely to occur - sole trader - partnership - private limited company - public limited company

Answer 54

4

Question 55

a business has an objective to support underprivileged children. this is an example of - profit objective - growth objective - survival objective - social objective

Answer 55

2

Question 56

which two statements are correct for a public limited company - limited liability owned by the government - limited liability sells shares on the stock exchange - unlimited liability owned by the government - unlimited liability sells shares on the stock exchange

Answer 56

2

Question 57

which one of the following is an implication of limited liability - can only sell a small product range - must have public liability insurance - investors personal possessions are at risk - shareholders can only lose up to the amount invested

Answer 57

4

Question 58

which one of the following forms of business has unlimited liability - sole trader' - private limited company - public limited company - a business plan

Answer 58

1

Question 59

statement one - all new businesses will have an objective to make a profit in one year statement two - new businesses will set a target of sufficient cash reserves in order to survive - true and true - true and false - false and false - false and true

Answer 59

4

Question 60

which one of the following is an example of a financial aim of a business - increase provision - offering value for money - reduce costs - purse an interest

Answer 60

3

Question 61

in the short term which aim is most appropriate for a start-up business - survival - make a profit - increase market share - increase provision

Answer 61

1

Question 62

statement one - to trade as a community interest group permission must be obtained from the community - statement two - a CIC must make a legally binding promise that the company's assets will only be used for stated social purposes - true and true - true and false - false and false - false and true

Answer 62

4