section a Flashcards
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
3
which one of the following is an internal stakeholder
- employee
- customer
- shareholder
- supplier
1
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
1
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
2
- which one of the following is an example of the government as a stakeholder
- trade unions
- local community
- environmental health
- pressure groups
3
what is an objective of trade unions
- fair pay of customers
- fair pay of employees
- fair return for investors
2
which one of the following is an example of an objective of the local community
- boycotting
- reduced noise pollution
- high returns for investors
2
- which one of the following is an example of an external stakeholder
- directors
- potential investors
- trade unions
- partners
2
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
3
which one of the following is a positive impact a business may have on the community
- create jobs
- conflicting objectives
customer boycotts
1
- 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
1
- which stakeholder group is most likely to be involved in conflict management
- suppliers
- trade unions
- internal stakeholder
- supervisor
2
what term is used to explain how subtasks are distributed amongst functional areas
- communication paths
- division of work
- span of control
- decentralised
2
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
1
statement one - authority can be delegated
statement two - responsibility cannot be delegated
- true true
- true false
- false false
- false true
2
which one of the following is likely to be a financial objective of a business
- ethical
- social
- profit
- technological
3
which one of the following is an alternative name for the human resource function
- procurement
- production
- personnel
- provisions
3
which functional area is responsible for promoting the business
- sales
- marketing
- human resources
- customer services
2
which task is the responsibility of the procurement function?
- sourcing materials
- resolving queries
- remuneration
- customer service
1
which task is the responsibility of the human resources function
- sourcing materials
- resolving queries
- remuneration
- customer service
3
which task is the responsibility of the business support service function
- providing IT support
- resolving queries
- remuneration
- developing new products
1
which task is the responsibility of the customer service function
- providing IT support
- resolving queries
- remuneration
- developing new products
2
which task is the responsibility of the finance function
- administrative support
- record keeping
- converting inputs into outputs
- developing new products
2
which task is the responsibility of the operations management function
- administrative support
- record keeping
- converting inputs into outputs
- developing new products
3
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
2
which task is the responsibility of the RandD function
- administrative support
- record keeping
- converting inputs into outputs
- developing new products
4
maintaining equipment is likely to be done by which functional area
- finance
- operations management
- business support services
- customer service
3
which one of the following is a reason why businesses plan
- legal requirement
- guarantee survival
- avoid unnecessary risk
- meet pressure group objectives
3
which one of the following is an example of were business ideas come from
- willingness to take risks
- accidental discovery
- patents
- unique selling point
2
which one of the following is an internal source of finance
- mortgage
- overdrafts
- reserves
- share issue
3
which one of the following is the most appropriate as a short term source of finance
- venture capital
- loans
- overdraft
- share issue
3
which one of the following is not suitable source of finance for a sole trader
- venture capital
- share issue
- loans
- savings
2
which one of the following source of finance dilutes the owners equity
- loans
- hire purchase
- reserves
- venture capital
4
which one of the following is an appropriate long-term source of finance for a start-up business
- reserves
- venture capital
- trade credit
- overdraft
2
which one of the following sources of finance is available from a bank
- trade credit
- reserves
- overdraft
- venture capital
3
which one of the following sources of finance is available from a supplier
- trade credit
- reserves
- overdraft
- venture capital
1
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
1 - 1 and 2
which source of finance is most appropriate for buying fuel for a delivery van
- hire purchase
- crowd funding
- credit card
- mortgage
3
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
2
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
2
which one of the following may result in a fall in costs to a business
- ageing population
- falling competition
- interest rates
- income rise
3
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
2
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
1
which one of the following is most likely to decrease demand in a market?
a rise in:
- real incomes
- interest rates
- employment
- investment
2
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
4
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
3
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
3
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
2
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
1
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
4
which one of the following is an example of corporate objective of a firm
- tactical decision making
- short term goals
- mission statements
4
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
3
which one of the following is most likely advantage of setting environmental objective
- increased costs
- higher labour turnover
- improved competitiveness
- greater flexibility
3
in which business form is divorce of ownership and control most likely to occur
- sole trader
- partnership
- private limited company
- public limited company
4
a business has an objective to support underprivileged children. this is an example of
- profit objective
- growth objective
- survival objective
- social objective
2
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
2
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
4
which one of the following forms of business has unlimited liability
- sole trader’
- private limited company
- public limited company
- a business plan
1
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
4
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
3
in the short term which aim is most appropriate for a start-up business
- survival
- make a profit
- increase market share
- increase provision
1
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
4
