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Mock Exam - Business Enviroment > Mock Exam > Flashcards

Mock Exam Flashcards

1
Q

1) —- and —- are examples of market failures
A) an unequal distribution of wealth…. No need to provide public goods.
B) a need to provide merit goods…. No need to provide public goods.
C) a need to provide public goods…. A equal distribution of wealth.
D) an unequal distribution of wealth…. A need to provide merit goods

A

D) an unequal distribution of wealth…. A need to provide merit goods

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2
Q
  1. The Uk economy is often described as a ‘mixed economy’ , what does this mean?
    A. Individual income is derived through a mixture of employment and self employment.
    B. Activity is based on a mixture of government intervention and private enterprise.
    C. Needs are satisfied through a mixture of import activity and export activity.
    D. Government spending is funded through a mixture of taxation and borrowing
A

B. Activity is based on a mixture of government intervention and private enterprise

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3
Q
  1. One of the key factors leading to companies achieving cost savings through ‘ hot desking’ has been.
    A. Relaxation’s in employment contract law.
    B. Increases in foreign workers.
    C. Improvements in tax relief levels.
    D. Advances in technology.
A

D. Advances in technology.

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4
Q
  1. Producers of goods are often seen as contributors to market failure by:
    A. Focusing on mass production rather corporate profit.
    B. supplying the needs of the wealthy rather than society as a whole.
    C. Placing too much emphasis on the social costs of their activities.
    D. Failing to work together to benefit from the economies of scale.
A

B. supplying the needs of the wealthy rather than society as a whole.

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5
Q
  1. The Uk working population is everyone ….
    A. Present in the Uk on the day of the census of population.
    B. Over the age of 21.
    C. In employment.
    D. Between school age and retirement.
A

D. Between school age and retirement.

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6
Q
  1. Company A and Company B have ‘ ROCE’ figures of 5% and 10% respectively. This normally means that:
    A. Company B’s shares are more volatile than company A’s.
    B. Company B’s has more shareholders than Company A.
    C. Company B is more profitable than Company A.
    D. Company B is more highly geared than Company A?
A

C. Company B is more profitable than Company A.

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7
Q
  1. Two main advantages in forming a private limited company are ….. and …..
    A. Limited liability….. Selling shares to the public.
    B. Limited liability…. Maintaining control of the operation.
    C. Limited liability …. Issuing shares.
    D. Issuing shares…. Unlimited liability.
A

C. Limited liability …. Issuing shares.

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8
Q
  1. The customers of a company are seen to have conflicting objectives to the local community. The company’s first aim should therefore be to:
    A. Give priority to its customers.
    B. Give in to the demands of the local community.
    C. Offer a solution that satisfies both parties.
    D. Offer the services of an independent arbitration body.
A

C. Offer a solution that satisfies both parties.

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9
Q
  1. Which of the following stakeholders would form part of a bank’s macro-environment?
    A. Computer companies which supply software to the bank.
    B. Departmental managers within the bank’s headquarters.
    C. Financial analysts reporting on the bank’s well being.
    D. Customer who hold large deposits with the bank.
A

C. Financial analysts reporting on the bank’s well being.

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10
Q 
10. If the UK were to adopt the Euro, this is likely to lead to:
A. Reduced opportunities to export.
B. Slower import transactions.
C. Higher import costs.
D. Less uncertainty over export pricing.
A

D. Less uncertainty over export pricing.

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11
Q 
11. Which one of the following areas of activity is most likely to be improved as a result of a company's introduction of ' EFTPOS' ?
A. Staff recruitment.
B. Supplier purchasing.
C. Database marketing.
D. Overdraft management.
A

C. Database marketing.

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12
Q 
12. Where de-regulation takes place within a industry, this is likely to lead to?
A. Higher prices.
B. Increased competition.
C. Technological slowdown.
D. Ecological improvements.
A

B. Increased competition.

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13
Q
  1. One of the main reasons why firms focus on ecological issues is to?
    A. Reduce marketing costs.
    B. Improve labour relations.
    C. Avoid bad publicity.
    D. Satisfy health and safety regulations.
A

C. Avoid bad publicity.

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14
Q 
14. PESTEL factors include.... and .....
A. Political ... Ecological.
B. Economic .... Taxation.
C. Economic .... Local.
D. Scientific ..... Ecological.
A

A. Political … Ecological.

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15
Q
  1. The existence of a ‘ holding company’ within an organisational structure often indicates that:
    A. A stock market flotation recently occurred.
    B. There has previously been a merger.
    C. Expansion has been achieved using venture capital.
    D. Heavy losses have recently been incurred
A

B. There has previously been a merger.

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16
Q 
16. Which of the following leadership styles is most likely to result in subordinates being allowed to make key decisions on their own?
A. Democratic.
B. Laissez-faire.
C. Autocratic.
D. Dictatorial.
A

B. Laissez-faire.

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17
Q 
17. One of the main advantages of the 'Sells' approach to decision making, when compared to the 'joins' approach , is that it is usually more.
A. Speedy.
B. Democratic.
C. Considered.
D. Effective
A

A. Speedy.

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18
Q 
18. The owner of a building firm established 20 years ago employs a team of three and staff turnover has traditionally been high. Which one of the following organisational cultures is this firm most likely to have adopted.
A. Role culture.
B. Power culture.
C. Person culture.
D. Task culture.
A

B. Power culture.

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19
Q
  1. To motivate individual staff within any organisation, it is important to:
    A. Communicate information solely via the cascade system.
    B. Group employees in small working units.
    C. Identify what factors are important to an individual.
    D. Adopt a laissez -faire style of leadership
A

C. Identify what factors are important to an individual.

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20
Q
  1. One of the main disadvantages of performance related pay is that it:
    A. Can be difficult to measure improvements.
    B. Is taxed more heavily than conventional pay.
    C. Is considered to favour less experience staff.
    D. Cn undermine the hierarchical approach of a management structure.
A

A. Can be difficult to measure improvements.

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21
Q
  1. A company wants to implement an effective succession planning strategy . In order to achieve this, it is important to:
    A. Keep job description documents brief.
    B. Operate a staff development programme.
    C. Encourage reverse/ upward appraisal.
    D. Minimise any job rotation activites.
A

B. Operate a staff development programme.

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22
Q
  1. A large company wants to improve its inter-departmental co-ordination. One recommended way of doing this is to:
    A. Introduce flexible working.
    B. Form lots of very small teams.
    C. Educate staff beyond their immediate job areas
    D. Increase the frequency of employee appraisals.
A

C. Educate staff beyond their immediate job areas

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23
Q 
23. According to Belbin's team role theory, which of the the following team roles is likely to give rise to the least problems if occupied by two people?
A. Chair.
B. Innovator.
C. Administrator.
D. Shaper.
C.
A

C. Administrator.

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24
Q
  1. One of the members of a company’s debt recovery team clearly falls into the ‘ shaper’ role outlined by Belbin. One of her skills is therefore likely to be that she:
    A. Frequently comes up with creative ideas.
    B. Encourages other teams members to achieve the common goal.
    C. Diffuses conflict between team members.
    D. Identifies common errors and swiftly corrects them.
A

B. Encourages other teams members to achieve the common goal.

25
Q
  1. One of the recommended ways for a large organisation to overcome communication barriers is to:
    A. Filter messages through one of more intermediaries.
    B. Adopt an autocratic style of leadership.
    C. Only allow information to flow downwards within the hierarchy.
    D. Minimise the number of recipients of individual emails.
A

D. Minimise the number of recipients of individual emails.

26
Q 
26. In team theory .... Is " when the group settles down and defines its procedures and customs", and .... is " when there are changes in the norm established for the group and there may be conflict"
A. Storming.... Forming.
B. Forming.... Storming.
C. Forming.... Norming.
D. Norming.... Storming.
A

D. Norming…. Storming.

27
Q
  1. When setting the price of a product, adopting a ‘ market skimming’ approach is only feasible where:
    A. Distribution is being carried out through a third party.
    B. The maturity stage of the life cycle has been reached.
    C. Elasticity of demand is relatively low.
    D. Economies of scale are significant.
A

C. Elasticity of demand is relatively low.

28
Q 
28. If a company has a product which primarily appeals to credit managers, which type of advertising medium, is likely to be most suitable?
A. Radio.
B. Trade magazine.
C. Poster.
D. Local newspaper
A

B. Trade magazine.

29
Q 
29. A company is conducting research on elasticity of demand issues. Which type of research would this best be described as?
A. Promotion research.
B. Distribution research.
C. Product research.
D. Price research.
A

D. Price research.

30
Q
  1. What is the main benefit of combining demographic and geographic segmentation as part of a corporate strategy?
    A. It reduces the volatility of the operational costs.
    B. it eases the degree of dependence on technological support.
    C. It helps the marketing to be focussed.
    D. It enables the business plan to be more flexible.
A

C. It helps the marketing to be focussed.

31
Q 
31. Psychographic segmentation can involve segmenting customers according to their:
A. Age.
B. Address.
C. Race
D. Lifestyle
A

D. Lifestyle

32
Q
  1. A company is collating data on various families. Which one of the following facts compiled will best help with demographic segmentation?
    A. Family religion.
    B. Family size.
    C. Hobbies undertaken by the family members.
    D. Holiday locations used by the family members.
A

B. Family size.

33
Q 
33. During which recognised stage of the product life cycle are unit costs likely to be falling fastest?
A. Introduction.
B. Growth.
C. Maturity.
D. Decline.
A

B. Growth.

34
Q 
35. A company recently produced a time based sales graph which was segmented according to the recognised stages of the product life cycle. During which segment is the line likely to appear most horizontal?
A. Introduction.
B. Growth.
C. Maturity.
D. Decline
A

C. Maturity.

35
Q
  1. Which one of the following factors is likely to accerlerate the ‘ decline’ stage of a product life cycle?
    A. A launch of a next generation replacement.
    B. A fall in interest rates.
    C. An easing in competitor activity.
    D. An improvement in the economies of scale.
A

A. A launch of a next generation replacement.

36
Q 
37. In which industry are 'natural monopolies' most likely to exist?
A. Utilities
B. Agriculture.
C. Financial services.
D. Leisure.
A

A. Utilities

37
Q 
38. Which one of the following characteristics is associated with firms whose market structure is centred around monopolistic competition ?
A. Product innovation.
B. Absence of guarantees.
C. Exclusive marketing agreements.
D. Price fixing between competitors
A

A. Product innovation.

38
Q
  1. Which of the following are factor of production?
    A. Land, buildings,capital,production
    B. Labour, production,capital, enterprise
    C. Land, labour, production, enterprise.
    D. Enterprise, labour, land, capital
A

D. Enterprise, labour, land, capital

39
Q 
40. Which one of the followings a typical example of diseconomies of scale in credit management?
A. Specialisation shortages.
B. Training overload.
C. Internal bureaucracy.
D. Falling demand.
A

C. Internal bureaucracy.

40
Q
  1. Which one of the following scenarios best indicates that a company is experiencing economies of scale?
    A. Marginal costs are becoming increasingly volatile.
    B. Variable costs are starting to rise.
    C. Average total costs are falling as output increases.
    D. Fixed costs per unit are closely approaching variable costs per unit.
A

C. Average total costs are falling as output increases.

41
Q
  1. If the government imposed a substantial increase in petrol duty, the most likely effect would be:
    A. Increase in supply of new cars.
    B. Decrease in demand for both new and used cars.
    C. Increase in demand for both new and used cars.
    D. Increase in total revenue of petrol retailers.
A

B. Decrease in demand for both new and used cars.

42
Q
  1. If there is a shortage in the supply of oil, the total revenue of an oil company is most likely to :
    A. Increase due to an increase in the world price of oil.
    B. Decrease as there is less oil supplied.
    C. Remain unchanged because the demand for oil is price inelastic.
    D. Remain unchanged because the supply of oil is price inelastic.
A

A. Increase due to an increase in the world price of oil.

43
Q
  1. Oligopolistic markets are those where ……. and ……. exist
    A. The industry is dominated by a few large firms….. There are barriers to entry.
    B. The industry comprises one large firm …. There are barriers to entry.
    C. The industry is dominated by a few large firms ….. There are no barriers to entry.
    D. The industry comprises one large firm….. There are no barriers to entry.
A

A. The industry is dominated by a few large firms….. There are barriers to entry.

44
Q
  1. Product A is deemed to be a substitute good for Product X and Product B is deemed to be a complimentary good for Product X . In accordance with supply and demand theory, a fall in the price of Product X will cause:
    A. A increase in demand for both Product A and B
    B. a decrease in demand for Product A and B.
    C. An increase in demand for Product A and a decrease in Product B.
    D. A decrease in demand for Product A and a increase in Product B.
A

D. A decrease in demand for Product A and a increase in Product B.

45
Q
  1. Under a floating exchange rate system for sterling, the value of sterling is most likely to:
    A. Rise with a fall in business confidence in the UK economy.
    B. Fall with a rise in demand for UK exports.
    C. Result in businesses being able to export more easily.
    D. Causes uncertainty in business planning for the export market.
A

D. Causes uncertainty in business planning for the export market.

46
Q
  1. If the value of the US $ falls against sterling the most likely outcome will be :
    A. An increase in demand for US imports in the UK.
    B. An increase in demand for UK exporters in the US.
    C. An increase in US tourists travelling to the UK for holidays.
    D. An increase in investment by US companies in the UK
A

A. An increase in demand for US imports in the UK.

47
Q
  1. Aggregate demand , in economic terms, Is defined as consumer , investment and government spending, together with what other component :
    A. Taxation minus national insurance contributions.
    B. Industry variable costs minus industry fixed costs.
    C. Private pension expenditure minus private pension income.
    D. Exports minus imports.
A

D. Exports minus imports.

48
Q
  1. If the government plans to increase public spending in order to generate extra income within the economy, the degree to which the ‘ multiplier effect’ will aid this process will primarily depend on the :
    A. Volatility of equilibrium exchange rates.
    B. Degrees of regressive taxation.
    C. Marginal propensity to consume.
    D. Resilience of institutional barriers.
A

C. Marginal propensity to consume.

49
Q
  1. If there is 0.5% increase in interest rates, this will tend to trigger a :
    A. Fall in the impact of regressive taxation.
    B. Rise in the money supply.
    C. Rise in public expenditure.
    D. Fall in consumption.
A

D. Fall in consumption.

50
Q
  1. A cartel is an agreement between ….. to fix…. and ….. for an industry.
    A. Government and suppliers ……….. prices …….. distribution
    B. Members …….. Prices ……… Output
    C. Supermarkets………prices…… Opening hours
    D. Members ……. Distribution….. Output
A

B. Members …….. Prices ……… Output

51
Q 
53. During the recovery stage of the business cycle, what economic factor will assist economic growth?
A. Equilibrium pricing.
B. Diseconomies of scale.
C. Demand-pull inflation
D. Multiplier effect
A

D. Multiplier effect

52
Q
  1. One of the typical characteristics of the business economy during periods of falling gross domestic product (GDP) is that:
    A. New debt levels will be relativity high
    B. Demand for its good will become relativity price-inelastic
    C. Demand for its goods will become relativity income-inelastic.
    D. Stock levels will be kept relativity low.
A

D. Stock levels will be kept relativity low.

53
Q 
55. One of the typical characteristics of the recovery phase of the business cycle is that:
A. Inflation levels become volatile.
B. Interest rates gradually fall.
C. Net investment starts to increase.
D. Demand for goods flattens
A

C. Net investment starts to increase.

54
Q
  1. Among the main objectives of government macroeconomic policy are ….. and …
    A. Economic growth … Demand pull inflation
    B. Cost push inflation… Unemployment
    C. Demand pull inflation….. Favourable balance of payments.
    D. Favourable balance of payments…. Economic growth.
A

C. Demand pull inflation….. Favourable balance of payments.

55
Q 
57. Where rising prices trigger higher wage demands, which in turn forces up prices, this type of spiralling effect is normally known as:
A. Disinflation.
B. Deflation.
C. Demand-pull inflation
D. Cost-push inflation
A

D. Cost-push inflation

56
Q
  1. One of the main problems associated with achieving the four principal aims of government economic policy is that they:
    A. Normal change on a monthly basis.
    B. Are solely expressed in percentage terms
    C. Are only influenced by fiscal measures.
    D. Can be mutually exclusive
A

D. Can be mutually exclusive

57
Q 
59. One of the main tools used by a country to operate monetary policy is :
A. Direct taxes.
B. Public borrowing
C. Interest rates
D. States benefits
A

C. Interest rates

58
Q 
60. Which one of the following government activities is an example of a ' supply side ' policy?
A. Increasing unemployment benefit.
B. Operating a surplus budget.
C. Deregulating an industry 
D. Reducing the inflation rate target
A

C. Deregulating an industry

Mock Exam - Business Enviroment (1 decks)

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