What does the term "franchise" refer to in the context of business?

• A type of business partnership
• A business that is owned and operated by the government
• A nonprofit organisation
• A business licensing another to use its brand

What is the main advantage of a franchise for the franchisee?

• Full control over the business
• No sharing of profits
• Minimal support and training
• Using existing brand recognition

Which expansion activity is classed as "internal"?

• Buying a competitor
• Being acquired by a larger competitor
• Conglomerate integration
• Opening a new store

In a market economy, what determines the prices of goods and services?

• Government regulations
• Supply and demand
• Central planning
• The number of businesses in the industry

Which of the following is an example of a fixed cost for a business?

• Employee salaries
• Raw materials
• Shipping costs
• Overtime wages

In which type of market structure does a single firm dominate the entire industry with no competitors?

• Perfect competition
• Monopolistic competition
• Oligopoly
• Monopoly

Sarah sells glasses of lemonade for £2. Her fixed costs are £20 for the day, and her variable cost per glass is £1. What is her profit after selling 50 glasses of lemonade?

• £8
• £18
• £30
• £70

Which of the four factors of production could be described as "the physical or natural resources used in production"?

• Land
• Labour
• Capital
• Enterprise

Which of the following is a characteristic of a partnership?

• Limited liability
• Ease of formation
• Double taxation
• Dividends paid to shareholders

A business purchasing a business in a different market is…

• Conglomerate integration
• Forward vertical integration
• Backward vertical integration
• Horizontal integration