What is a business's primary objective?
- Maximising profits
- Providing employment
- Minimising costs
- Maximising market share
What is the primary purpose of a business plan?
- To provide a CV for the business owners
- To secure financing from investors
- To provide a roadmap for the business's operations and goals
- To advertise the business
A business purchasing a supplier is…
- Conglomerate integration
- Forward vertical integration
- Backward vertical integration
- Horizontal integration
Which of the following is a factor that affects a business's choice of location?
- The legal structure of the organisation
- The location's proximity to competitors
- The business's advertising strategy
- The size of the business's logo
What is meant by "diseconomies of scale"?
- Unit costs increase as production increases
- Unit costs decrease as production increases
- Unit costs stay the same as production decreases
- Unit costs stay the same as production increaes
Improving efficiency by investing in new machines and processes is called…
- Purchasing economies of scale
- Technical economies of scale
- Service economies of scale
- Production economies of scale
A business sells 150 pogo sticks at £20 each. What is its revenue?
Which expansion activity is classed as "external"?
- Opening a new factory
- Buying a competitor
- Selling additional shares
- Expanding an existing store
Which of the following is a common feature of a not-for-profit organisation?
- The primary goal is to maximise profits
- All staff are volunteers, so there are no wages to pay
- Surpluses are reinvested into the organisation's mission
- Not subject to any government regulations
Which of the following is a characteristic of a partnership?
- Limited liability
- Ease of formation
- Double taxation
- Dividends paid to shareholders
