Business Management Quiz
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Questions and Answers

What is a potential downside of increasing a product's price?

  • Increased customer loyalty
  • Higher quality perception
  • Greater employee motivation
  • Lower sales (correct)

Specialisation in a business always leads to improved employee morale.

False (B)

What is the term for when production is divided into different tasks performed by different workers?

Division of labour

The __________ sector is involved in extracting and using the earth's natural resources.

<p>Primary</p> Signup and view all the answers

Match the following sectors of business with their primary focus:

<p>Primary Sector = Extracting raw materials Secondary Sector = Manufacturing goods Tertiary Sector = Providing services</p> Signup and view all the answers

Which of the following is a method to increase a business's added value?

<p>Increasing product quality (C)</p> Signup and view all the answers

Repetitive tasks in a workplace can cause employees to feel more motivated.

<p>False (B)</p> Signup and view all the answers

What occurs if a worker is not present in a specialised production setting?

<p>Disruption of production</p> Signup and view all the answers

Which of the following is NOT considered a motivator for increasing effort?

<p>Supervision style (D)</p> Signup and view all the answers

Abraham Maslow's hierarchy of needs is based on the idea that unsatisfied needs will not motivate individuals.

<p>True (A)</p> Signup and view all the answers

What is one advantage of giving employees increased responsibility for their tasks?

<p>It enhances their sense of ownership and can lead to higher productivity.</p> Signup and view all the answers

Financial rewards can be in the form of cash and __________ rewards to motivate workers.

<p>non-cash</p> Signup and view all the answers

Match the following methods of motivation with their descriptions:

<p>Financial Rewards = Incentives that include cash or benefits Job Enrichment = Increasing variety and responsibility in tasks Advancement = Opportunities for promotions Recognition = Acknowledgment for achievements</p> Signup and view all the answers

Which of the following is a disadvantage of a sole trader?

<p>Unable to sell shares to the public (A)</p> Signup and view all the answers

A franchisor is responsible for training and some administration aspects.

<p>True (A)</p> Signup and view all the answers

Name one advantage a franchisor gains from franchising.

<p>Expansion is faster</p> Signup and view all the answers

The _____ contains the rules for managing the company.

<p>Articles of Association</p> Signup and view all the answers

Match the following concepts related to franchising:

<p>Franchisee = Keeps some profit Franchisor = Receives percentage of sales revenue Training = Provided by franchisor Limited liability = Protects shareholders</p> Signup and view all the answers

What is a disadvantage to the franchisee?

<p>Inability to make local decisions (B)</p> Signup and view all the answers

Sole traders have unlimited liability.

<p>True (A)</p> Signup and view all the answers

What is a key advantage of limited liability for shareholders?

<p>Protection of personal assets</p> Signup and view all the answers

What is the primary disadvantage of delegation for managers?

<p>Managers lose some control over subordinates (A)</p> Signup and view all the answers

A centralised organisation has decision-making power distributed among various levels of management.

<p>False (B)</p> Signup and view all the answers

What does a flat structure in an organisation imply?

<p>A short chain of command with a wider span of control</p> Signup and view all the answers

Delegation is giving a subordinate the authority to perform ______ tasks.

<p>particular</p> Signup and view all the answers

Which of the following is an advantage of having a short chain of command?

<p>Quicker communication and decision-making (B)</p> Signup and view all the answers

Managers are often eager to delegate tasks to subordinates.

<p>False (B)</p> Signup and view all the answers

What psychological need does job enrichment help achieve, according to Maslow's hierarchy?

<p>Esteem needs</p> Signup and view all the answers

Match the following terms with their definitions:

<p>Delegation = Giving authority to subordinates Centralised Organisation = Decision-making power at head office Flat Structure = Short chain of command Job Enrichment = Enhancing job satisfaction</p> Signup and view all the answers

What is a main disadvantage of a highly structured working environment?

<p>Does not take input from others (B)</p> Signup and view all the answers

Trade unions aim to demotivate employees by negotiating with employers.

<p>False (B)</p> Signup and view all the answers

What is the primary role of trade unions?

<p>To protect the interests of employees.</p> Signup and view all the answers

A job description outlines the ______ and duties to be carried out by someone employed to do a specific job.

<p>responsibilities</p> Signup and view all the answers

What is a primary responsibility of a business regarding health and safety?

<p>Comply with health and safety laws (A)</p> Signup and view all the answers

Match the following characteristics with their appropriate descriptions regarding trade unions:

<p>Negotiating with employers = Improve pay and working conditions Resolving conflict = Negotiating solutions for members Providing legal support = Advice on legal matters Offering member services = Including holiday and insurance schemes</p> Signup and view all the answers

Which leadership style involves employee participation in decision-making?

<p>Democratic Leadership (A)</p> Signup and view all the answers

The redundancy process only occurs when an employee's performance is unsatisfactory.

<p>False (B)</p> Signup and view all the answers

What does job analysis identify?

<p>Responsibilities and tasks relating to a job</p> Signup and view all the answers

A leader in a structured environment is likely to encourage creativity among employees.

<p>False (B)</p> Signup and view all the answers

Name one advantage of democratic leadership.

<p>Encourages employee involvement in decision-making.</p> Signup and view all the answers

The external requirement involves filling a vacancy by any suitable applicant __________ the business.

<p>outside</p> Signup and view all the answers

Match the following advantages of redundancy with their corresponding disadvantages:

<p>Increased competitiveness = Higher employee turnover Reduced business costs = Effects on employee morale Finding specialized candidates = Increased costs due to advertising Adding fresh perspectives = Possible loss of experienced staff</p> Signup and view all the answers

What is one advantage of recruiting part-time workers?

<p>Fits with employees' personal circumstances (D)</p> Signup and view all the answers

One disadvantage of external recruitment is that it is typically less costly than internal recruitment.

<p>False (B)</p> Signup and view all the answers

List one potential impact of diversity on a business.

<p>Enhancing creativity or broadening perspectives</p> Signup and view all the answers

Flashcards

Opportunity Cost

The cost of choosing one option over another. It represents the value of the next best alternative.

Specialization

When workers focus on specific tasks, becoming skilled and efficient in a particular area.

Division of Labor

Breaking down production into smaller, individual tasks, with each worker performing a specific part.

Added Value

The extra value added to a product through production processes, making it more desirable to consumers.

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Increasing the Selling Price

Increasing the selling price of a product due to improved quality or features.

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Reducing the Cost of Materials

Reducing the cost of materials used to make a product while keeping the selling price the same, increasing profit.

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Primary Sector

The industry that extracts and uses natural resources to produce raw materials.

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Secondary Sector

The industry that manufactures goods using raw materials from the primary sector.

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Sole Trader

A business structure where one person owns and manages the entire business. All profits belong to the owner, and they are fully responsible for any debts or losses.

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Limited Liability

The owner's personal assets are not at risk if the business fails. The owner's liability is limited to the amount of money invested in the business.

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Continuity

The business can continue to operate even if the owner dies, becomes ill, or leaves the business.

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Articles of Association

A document that outlines the internal rules for managing the company, such as how directors are appointed and how meetings are conducted.

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Memorandum of Association

A document containing vital information about the company, including its name, registered office address, and the scope of its business activities.

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Sale of Shares

The process of raising capital by selling shares to the public. This allows the company to access a larger pool of funds for growth and expansion.

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Franchising

The expansion of a business by granting licenses to other businesses to operate under the brand name and use its business model.

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Franchisee

A business owner who receives a license to operate a franchise. They pay a fee to the franchisor for the right to use the brand and business model.

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Motivators

Factors that encourage people to put in more effort at work, making them more motivated.

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Responsibility in Work

Giving employees more responsibility for tasks can make them feel valued and motivated.

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Advancement Opportunities

The chance to advance in a company, such as getting a promotion, can be a strong motivator.

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Recognition of Achievements

Recognizing and rewarding achievements, like giving praise or a bonus, can boost employee motivation.

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Hourly Wage Rate

Payment to workers based on a fixed amount for each hour worked.

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Health and Safety

Ensuring the workplace is safe for all employees by following government regulations.

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Redundancy and Dismissal

The process of letting employees go, either due to business changes or unsatisfactory performance.

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Job Analysis

Identifying and recording the specific tasks and responsibilities of a job.

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Internal Recruitment

Hiring someone from within the company for an open position.

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External Recruitment

Filling a vacant position with someone from outside the company.

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Advantages of Internal Recruitment

Benefits of hiring from within the company.

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Disadvantages of Internal Recruitment

Drawbacks of hiring from within the company.

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Advantages of External Recruitment

Benefits of hiring from outside the company.

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What is a trade union?

A group of employees who have joined together to protect their interests and improve their working conditions.

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What's the main role of a trade union?

Trade unions negotiate with employers to improve wages, working conditions, and benefits for their members.

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How do trade unions help resolve conflicts?

Trade unions can help resolve conflicts between employees and employers by finding a solution that benefits both parties.

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What other services might trade unions offer?

Trade unions may offer additional services to their members, such as legal advice, holiday schemes, or pension plans.

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What's a job description?

A document that describes the responsibilities and duties of a specific job.

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What is autocratic leadership?

A leadership style where a single leader makes all the decisions, without input from others.

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Why is autocratic leadership a disadvantage?

Employees may feel demotivated if they don't have the opportunity to contribute to important decisions.

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What is democratic leadership?

A leadership style where the leader encourages employees to participate in decision-making.

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Delegation

Giving a subordinate responsibility for specific tasks, allowing them to make decisions.

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Job Enrichment

The process of giving employees more control and responsibility over their work, often leading to greater job satisfaction.

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Flat Structure

A company structure with fewer layers of management, allowing for quicker communication and decision-making.

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Centralized Organization

A company where most decision-making power resides at the top, with instructions passed down to lower levels.

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Head Office

A central control point for information and decision-making in an organization, often located at the head office.

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Chain of Command

The hierarchical arrangement of positions within a company, with a clear chain of command.

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Span of Control

The number of employees that a manager supervises directly.

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Effective Touch

Effective interaction with employees, fostering communication and understanding.

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Study Notes

CAIE IGCSE Business Studies Summary Notes

  • This document is a summary of the CAIE IGCSE Business Studies syllabus.
  • It covers topics related to understanding business activity, business classifications, and business operations.
  • The document also discusses business growth and size, government support for startups, different business structures (sole traders, partnerships, LTD, PLCs) as well as Joint ventures and franchises.
  • The document further details the concept of motivation, the role and functions of managers, and effective communication styles.
  • It also explores the marketing mix (product, price, place, and promotion), and market segmentation as well analyses the production of goods and services, lean production and technology in production.
  • The document eventually discusses the issues related to external influences, business cycles, and government economic policy
  • Topics also include finance, income statements, and statements of financial position.

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Related Documents

CAIE IGCSE Business Studies Past Paper Summary (2023-2025)

Description

Test your knowledge on key concepts in business management, including pricing strategies, employee morale, motivation, and production specialization. This quiz will help you understand various sectors of business and the impact of different methods on employee motivation and company performance.

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