In business terms, what is the meaning of ‘limited liability’?

Shareholders can only lose the money they invested

Which of the following is a disadvantage of specialisation for a large manufacturing firm?

Workers on the production line do the same job continuously

The following are usually included in a business plan except:

The revenue of close competitors

Which of the following is a likely objective for a public sector organisation?

Providing a service to the whole population

Which of the following is an example of ‘adding value’?

A baker making and selling cakes to customer order

All but one of the following apply to successful entrepreneurs. Which is the exception?

Entrepreneurs are employed by big businesses

An individual gives up their job to become an entrepreneur. Which is their opportunity cost?

The wage or salary from their permanent job

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IGCSE Unit 1, Understanding business activity

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IGCSE Business Understanding business activity

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Questions 10

Answers

1
In business terms, what is the meaning of ‘limited liability’?
Shareholders can only lose the money they invested
A business which only sells shares to friends and family
A business sells a small range of goods and services
The business makes a small profit after paying all costs
2
Which of the following is most likely to be a labour intensive business?
A large soft drinks manufacturer
A car factory
A hotel
A large arable farm
3
Which of the following is a disadvantage of specialisation for a large manufacturing firm?
Workers on the production line do the same job continuously
Workers become highly skilled in their own areas of the firm
Easier for managers to delegate work in their departments
Managerial economies of scale may be gained
4
The following are usually included in a business plan except:
The revenue of close competitors
The results of market research surveys
Personal details of business owners
A cash flow forecast for the upcoming time period
5
Which of the following organisations operates in the secondary production sector?
A bank
A diamond mine
A soft drink bottling factory
A fast food restaurant
6
Which of the following is a likely objective for a public sector organisation?
Maximising profit
Increasing market share
Raising money for a good cause
Providing a service to the whole population
7
Which of the following is an example of ‘adding value’?
A baker making and selling cakes to customer order
BP increasing prices due to the increase in the price of oil
A sportswear company sponsoring a local football club
A shop offering a ‘two for the price of one’ special offer
8
All but one of the following apply to successful entrepreneurs. Which is the exception?
Entrepreneurs are employed by big businesses
Entrepreneurs are risk takers
Entrepreneurs are innovators
Entrepreneurs start their own businesses
9
An individual gives up their job to become an entrepreneur. Which is their opportunity cost?
The profits that will be made by the new business
The costs involved in starting the new business
The freedom to make all the business decisions themselves
The wage or salary from their permanent job
10
Which of the following groups would be an internal stakeholder of a supermarket business?
The local community
Employees
Suppliers
Customers

IGCSE Unit 1, Understanding business activity Flashcards | StudBud