terminologies Flashcards
Which of the following is a source of long-term finance for a business?
A) Bank overdraft
B) Trade credit
C) Issuing shares
D) Supplier discounts
Answer: C
Why might a business need short-term finance?
A) To buy machinery
B) To cover daily operating expenses
C) To pay dividends to shareholders
D) To build a factory
Answer: B
What does span of control measure in a business?
A) The number of managers in a business
B) The number of people a manager directly oversees
C) The number of teams in a department
D) The amount of control a business owner has
Answer: B
What is the primary goal of staff retention?
A) To hire new employees
B) To maintain a consistent workforce
C) To reduce wages
D) To implement zero-hour contracts
Answer: B
Which of the following would most likely improve staff retention?
A) Increasing workload
B) Providing regular training
C) Reducing employee benefits
D) Introducing temporary contracts
Answer: B
Who is considered a stakeholder in a business?
A) Only the employees
B) Only the shareholders
C) Anyone with an interest in the business operations
D) Only the government
Answer: C
Which of the following is an internal stakeholder?
A) Customers
B) Employees
C) Suppliers
D) Local community
Answer: B
What does the statement of financial position show?
A) The business’s profit for the year
B) The assets, liabilities, and equity of a business on a specific date
C) The total sales revenue for a year
D) The list of products a business sells
Answer: B
Which of these is classified as an asset on a statement of financial position?
A) Outstanding loans
B) Cash in hand
C) Wages payable
D) Trade credit
Answer: B
What is the main focus of a democratic management style?
A) Allowing employees to participate in decision-making
B) Giving orders without employee input
C) Minimizing communication
D) Strictly following company policies
Answer: A
Which style of management involves centralized decision-making by the leader?
A) Autocratic
B) Laissez-faire
C) Democratic
D) Transformational
Answer: A
What is the role of a supplier in business operations?
A) To sell products directly to consumers
B) To provide goods/services to the business
C) To hire staff for the business
D) To advertise products for the business
Answer: B
What does a supply chain encompass?
A) Only the suppliers of a business
B) The network of activities from supplier to customer
C) The retail locations of a business
D) The marketing strategies used by a business
Answer: B
What is essential for business survival?
A) Selling enough goods/services to cover all costs
B) Expanding into international markets
C) Hiring more employees
D) Reducing product quality
Answer: A
Which of these is an example of a sustainable practice?
A) Using renewable energy sources
B) Increasing the use of single-use plastics
C) Expanding into deforested areas
D) Reducing employee benefits
Answer: A
What happens during a business takeover?
A) A business takes control of another business
B) A business goes out of business
C) A business merges with another business
D) A business launches a new product
Answer: A
Which of the following could be a reason for a takeover?
A) To reduce competition
B) To increase product defects
C) To close more retail stores
D) To avoid paying taxes
Answer: A
What is a target market?
A) The group of employees in a business
B) The group of customers a business aims to serve
C) The shareholders of a business
D) The competitors in a business’s industry
Answer: B
What is total cost?
A) Fixed costs divided by quantity
B) Variable costs minus fixed costs
C) Fixed costs plus variable costs
D) Total revenue minus expenses
Answer: C
What is trade credit?
A) Selling goods/services for cash
B) Buying goods and paying later
C) Receiving goods at a discount
D) Borrowing money from a bank
Answer: B
What does total quality management (TQM) emphasize?
A) Reducing employee wages
B) Continual improvement in quality across the business
C) Cutting costs at all levels
D) Decreasing customer involvement
Answer: B
Which industry does a tertiary business operate in?
A) Agriculture
B) Manufacturing
C) Services
D) Mining
C
What is a unique selling point (USP)?
A) The average cost of a product
B) The key benefit that differentiates a product from others
C) The product’s retail price
D) The manufacturing process of a product
B
What are variable costs?
A) Costs that remain the same regardless of output
B) Costs that change with the level of output
C) Costs of hiring employees
D) Costs of fixed assets
B
What is a wholesaler’s primary role?
A) Manufacturing goods for retailers
B) Buying large quantities and selling to retailers
C) Selling directly to consumers
D) Advertising products for suppliers
B
What does a zero-hour contract mean for an employee?
A) They must work at least 40 hours per week
B) They are guaranteed regular hours
C) They are not guaranteed any minimum hours of work
D) They receive no pay for overtime
C
What is the purpose of trade descriptions?
A) To provide customers with accurate information about products
B) To reduce the cost of goods sold
C) To promote false advertising
D) To increase the price of products
A
What is a market?
A) A physical place where goods are stored
B) Where buyers and sellers meet to exchange goods/services
C) A business that produces raw materials
D) An advertising strategy
B
What is the main purpose of market research?
A) To monitor competitors’ production levels
B) To collect information about customers’ needs, wants, and preferences
C) To identify new suppliers
D) To track employee performance
B
What is market share?
A) The total revenue generated by a business
B) The proportion of the market owned by a single business
C) The amount of a product sold in a month
D) The percentage of customers who provide feedback
B
Which of the following is part of the marketing mix?
A) Segmentation
B) Place
C) Social media
D) Market share
B
What is price skimming?
A) Selling a product at a low price to quickly gain market share
B) Setting a high price initially to target early adopters before lowering it
C) Selling products below cost to drive competitors out of the market
D) Offering discounts to loyal customers
B
- What is M-commerce?
A) Using mobile phones for advertising
B) Carrying out business transactions electronically via mobile devices
C) Selling products directly through social media platforms
D) A method of tracking mobile users’ shopping habits
B
- What is organic growth?
A) Growth achieved by acquiring other businesses
B) Growth achieved by increasing output or customer base
C) Growth funded by external investments
D) Growth achieved through outsourcing
B
- Which of the following is an example of primary research?
A) Reviewing government reports
B) Conducting surveys and questionnaires
C) Analyzing industry trends from published data
D) Reading competitors’ brochures
B
- What is segmentation?
A) Dividing a product into multiple parts
B) Breaking the market into groups with similar characteristics
C) Allocating business resources by department
D) Separating suppliers based on quality
B
- What is a product portfolio?
A) A record of all products sold in the last year
B) A collection of all products offered by a business
C) A catalog of a business’s suppliers
D) A report detailing customer reviews of products
B
- What does “gap in the market” refer to?
A) A product that is highly successful globally
B) An opportunity to meet an unmet need or serve untapped customers
C) A market segment that has become overcrowded with competitors
D) A temporary halt in production due to supply chain issues
B
- What is a government grant?
A) Money provided by the government that must be repaid with interest
B) A loan available only to large businesses
C) Funding provided by the government that does not need to be repaid but comes with conditions
D) An investment scheme for purchasing equipment
C
- Which of the following is an example of “lean production”?
A) Keeping excess inventory for emergencies
B) Automating processes to increase production speed
C) Reducing waste and optimizing resources
D) Outsourcing production to reduce costs
C
- What is “limited liability”?
A) Owners are personally responsible for all business debts
B) Owners’ liability is limited to the amount they have invested in the business
C) A loan condition that limits repayment amounts
D) A legal structure only available to partnerships
B
- What is the purpose of “logistics” in a business?
A) Managing employee schedules efficiently
B) Ensuring the timely delivery of supplies and products
C) Calculating profit margins and cost efficiencies
D) Advertising products in new markets
B
- What is the “margin of safety”?
A) The percentage of profit retained after all expenses
B) The number of units sold above the break-even point
C) The difference between total revenue and total cost
D) The percentage of resources kept in reserve for emergencies
B
- What does the “Health and Safety at Work Act (1974)” ensure?
A) Employees are paid fairly for their work
B) Employers and employees have clear responsibilities for workplace safety
C) Businesses comply with environmental regulations
D) Companies adopt fair hiring practices
B
- What is the primary advantage of “just in time” (JIT) production?
A) Higher profit margins through bulk purchasing
B) Reduced need for storage space and lower inventory costs
C) Ensured availability of excess stock during emergencies
D) Increased speed of production
B
What is a “loss leader”?
A) A product sold at a high price to increase profit margins
B) A strategy where a product is sold below cost to attract customers
C) A product removed from the market due to low sales
D) A sales technique involving high discounts for bulk purchases
B
- What is “job production”?
A) Mass-producing identical items for a large market
B) Creating a single product tailored to an individual order
C) Using assembly lines to manufacture goods
D) A system where employees share responsibilities for a task
B
