Revision Business Studies Preliminary

Question 1

4. Which of the following terms best describes the risk-taking element of business people?

Accepted Answer

Entrepreneurs

Question 2

The term that best describes individuals or groups affected by the operations of a business are

Accepted Answer

Stakeholders

Question 3

An advantage of a differentiation strategy is?

Accepted Answer

Increase in revenue and market share

Question 4

In what industry are tangible products produced by the operation function?

Accepted Answer

Manufacturing, construction and agriculture

Question 5

What does the term separation involve for a business?

Accepted Answer

The ending of the employment contract

Question 6

Changing the features of a product for the precise preferences of a customer is also known as

Accepted Answer

Customisation

Question 7

The margin is the difference between the sale price of the good and the cost to make the good

Accepted Answer

True

Question 8

Which of the following is a method of completing a situational analysis?

Accepted Answer

SWOT

Question 9

Which of the following factors are least likely to influence the location of a business?

Accepted Answer

Availability of finance

Question 10

Which inventory control system would minimise warehousing costs?

Accepted Answer

Just-in-time

Question 11

Which of the following represents an advantage of a partnership?

Accepted Answer

Each of the owners must contribute equal amounts of finance

Question 12

Which of the following forms of income do shareholders in public companies receive?

Accepted Answer

Dividends

Question 13

The statement that enables owners to visualise an ideal position for their business is a

Accepted Answer

vision statement

Question 14

Which of the following financial statements would be used to calculate gross profit?

Accepted Answer

Income statement

Question 15

Which legal structure would best suit a business seeking funds to expand internationally?

Accepted Answer

Public company

Question 16

A feature of a cost leadership strategy is?

Accepted Answer

Assembly-line manufacturing

Question 17

What is output of a serviced-based business?

Accepted Answer

Satisfied customers

Question 18

Who provides the funds in equity finance?

Accepted Answer

Shareholders

Question 19

The business is likely to experience a cash-flow issues & low consumer awareness at the

Accepted Answer

Establishment phase of the business life cycle

Question 20

What is a bank overdraft?

Accepted Answer

A type of short term debt finance

Questions 20