OCR GCSE (9-1) Business Activity Check-in Quiz PDF

Check In quiz ============= Business Activity ----------------- Questions --------- 1. Which one of the following types of business can sell shares on the stock exchange? A. A partnership B. A private limited company C. A public limited company D. A sole trader Your answer **\[1...

Check In quiz ============= Business Activity ----------------- Questions --------- 1. Which one of the following types of business can sell shares on the stock exchange? A. A partnership B. A private limited company C. A public limited company D. A sole trader Your answer **\[1\]** 2. Which of the following is an internal stakeholder of business that repairs cars? A. E. Motorists who bring their car to the garage to be repaired F. Residents living near to the garage G. The government that creates the laws the garage must obey Your answer **\[1\]** 3. The reward for enterprise is: A. H. profit I. risk J. self-discipline 4. A clothing manufacturer buys a multiscreen cinema. What is this an example of? A. B. C. D. Your answer **\[1\]** 5. [\[CHART\]]{.chart}Six firms operate in a market. The pie chart below shows the annual revenue for each of these six firms. What is the market share of Firm D? A. B. C. D. Your answer **\[1\]** 6. Which one of the following is **not** a reason to start your own business? A. B. C. D. Your answer **\[1\]** 7. A business makes jeans. Which of the following is the role of its suppliers? A. K. To buy large quantities of jeans L. To deliver fabric and fastenings on time M. To pay the wages of the sewing machinists Your answer **\[1\]** 8. The UK government requires sole traders to: A. N. employ staff O. operate from home P. pay tax on profits Your answer **\[1\]** 9. Which of the following would increase the market share of a company? A. B. C. D. Your answer **\[1\]** 10. Two toy shops in Southville have different objectives. Which of the following could be a reason why these two businesses have different\ objectives? A. B. C. D. Your answer **\[1\]** 11. Which one of the following is a benefit of business planning? A. B. C. D. Your answer **\[1\]** 12. A business which operates as a partnership: A. B. C. D. Your answer **\[1\]** 13. Which of the following stakeholder groups is most likely to benefit from a night club owner's decision to close at 11pm instead of at 3am on weekdays? A. B. C. D. Your answer **\[1\]** 14. A business has set an objective to increase profit by 2% each year. If the business made £50 000 profit in 2015, its profit objective for 2016 would be? A. B. C. D. Your answer **\[1\]** 15. A young entrepreneur wishing to start her first business may choose to operate as a partnership because: A. Q. no planning is required R. she can keep all of the profit S. the responsibility for important decisions can be shared Your answer **\[1\]** 16. The owners of a business with limited liability: A. T. can only sell goods to local markets U. do not have to pay business debts with personal funds V. must not change their business objectives Your answer **\[1\]** 17. Which of the following is **most** likely to describe the characteristics of a successful entrepreneur? A. B. C. D. Your answer **\[1\]** 18. Which one of the following is an example of organic growth? A. W. Reducing market share X. Merging with a similar business Y. Increasing selling prices Your answer **\[1\]** 19. Which of the following is most likely to help an established company obtain a bank loan? A. B. C. D. Your answer **\[1\]** 20. Which one of the following is **not** a benefit to a business of setting objectives? A. B. C. D. Your answer **\[1\]** Mark scheme ----------- +-----------------+-----------------+-----------------+-----------------+ | **Question** | **Answer** | **Marks** | **Rationale** | +=================+=================+=================+=================+ | **1** | **(c)** | **1** | **(a)** A | | | | | partnership | | | | | cannot issue | | | | | shares. | | | | | | | | | | **(b)** A | | | | | private limited | | | | | company can | | | | | issue shares, | | | | | but it cannot | | | | | sell them on | | | | | the stock | | | | | exchange. | | | | | | | | | | **(c) Correct | | | | | answer:** A | | | | | public limited | | | | | company is | | | | | listed on the | | | | | stock exchange. | | | | | | | | | | **(d)** A sole | | | | | trader cannot | | | | | issue shares. | +-----------------+-----------------+-----------------+-----------------+ | **2** | **(a)** | **1** | **(a) Correct | | | | | answer:** | | | | | Employees are | | | | | internal | | | | | stakeholders of | | | | | a business. | | | | | | | | | | **(b)** | | | | | Motorists are | | | | | the garage's | | | | | customers; they | | | | | are external | | | | | stakeholders. | | | | | | | | | | **(c)** Local | | | | | residents are | | | | | external | | | | | stakeholders. | | | | | | | | | | **(d)** The | | | | | government is | | | | | an external | | | | | stakeholder.. | +-----------------+-----------------+-----------------+-----------------+ | **3** | **(b)** | **1** | **(a)** | | | | | Enterprise | | | | | involves hard | | | | | work but it is | | | | | not the reward. | | | | | | | | | | **(b) Correct | | | | | answer:** | | | | | Profit is the | | | | | reward for | | | | | enterprise. | | | | | | | | | | **(c)** | | | | | Enterprise | | | | | involves taking | | | | | risks, but the | | | | | risk is not the | | | | | reward. | | | | | | | | | | **(d)** | | | | | Self-discipline | | | | | is a | | | | | characteristic | | | | | likely to be | | | | | needed for an | | | | | entrepreneur to | | | | | be successful, | | | | | but it is not | | | | | the reward. | +-----------------+-----------------+-----------------+-----------------+ | **4** | **(a)** | **1** | **(a) Correct | | | | | answer:** These | | | | | two businesses | | | | | are totally | | | | | different, one | | | | | is a | | | | | manufacturer | | | | | and one offers | | | | | a service, and | | | | | the products | | | | | they deal with | | | | | i.e. clothing | | | | | and | | | | | entertainment | | | | | are totally | | | | | different. | | | | | | | | | | **(b)** A | | | | | horizontal | | | | | merger would | | | | | involve a | | | | | clothing | | | | | manufacturer | | | | | joining with | | | | | another | | | | | clothing | | | | | manufacturer, | | | | | rather than a | | | | | totally | | | | | different type | | | | | of business. | | | | | | | | | | **(c)** A | | | | | partnership is | | | | | a form of | | | | | business | | | | | ownership, not | | | | | a business | | | | | buyout. | | | | | | | | | | **(d)** The | | | | | example is a | | | | | buyout/takeover | | | | | ; | | | | | however it does | | | | | not involve | | | | | buying a | | | | | business in the | | | | | same industry. | | | | | Examples of a | | | | | vertical | | | | | takeover would | | | | | be a clothing | | | | | manufacturer | | | | | buying a | | | | | clothing | | | | | boutique | | | | | (forwards) or | | | | | buying fabric | | | | | printers or | | | | | cotton | | | | | plantation | | | | | (backwards). | +-----------------+-----------------+-----------------+-----------------+ | | **(b)** | **1** | **(a)** | | | | | Candidate puts | | | | | the decimal | | | | | point in the | | | | | incorrect | | | | | place. | | | | | | | | | | **(b) Correct | | | | | answer:** Total | | | | | market size = | | | | | £1,500,000. | | | | | Firm D's market | | | | | share = | | | | | £150,000/£1,500 | | | | | ,000 | | | | | x 100 = 10% | | | | | | | | | | **(c)** | | | | | Candidate | | | | | confuses the | | | | | percentage with | | | | | 360^o^ and | | | | | erroneously | | | | | calculates | | | | | £150,000/360 x | | | | | 100 = 41.66. | | | | | | | | | | **(d)** | | | | | Candidate | | | | | erroneously | | | | | assumes that | | | | | the 150 in | | | | | £150,000 | | | | | equates to | | | | | 150%. | +-----------------+-----------------+-----------------+-----------------+ | | **(b)** | **1** | **(a)** Many | | | | | people start | | | | | their own | | | | | business in | | | | | order to be | | | | | their own boss. | | | | | | | | | | **(b) Correct | | | | | answer:** | | | | | Owning your own | | | | | business | | | | | increases, | | | | | rather than | | | | | reduces | | | | | financial risk. | | | | | | | | | | **(c)** | | | | | Pursuing | | | | | personal | | | | | interests is a | | | | | good way to | | | | | combine | | | | | hobbies/beliefs | | | | | with earning a | | | | | living e.g. | | | | | musician, | | | | | fashion. | | | | | | | | | | **(d)** | | | | | Satisfying | | | | | customer needs | | | | | is a reason to | | | | | set up a | | | | | business e.g. | | | | | to provide | | | | | designer | | | | | clothing or a | | | | | convenience | | | | | store. | +-----------------+-----------------+-----------------+-----------------+ | | **(c)** | **1** | **(a)** This is | | | | | not the role of | | | | | a supplier. | | | | | | | | | | **(b)** The | | | | | jeans are the | | | | | finished | | | | | product; those | | | | | who buy the | | | | | finished | | | | | product are | | | | | called | | | | | customers not | | | | | suppliers. | | | | | | | | | | **(c) Correct | | | | | answer:** The | | | | | role of a | | | | | supplier is to | | | | | supply raw | | | | | materials and | | | | | deliver them on | | | | | time. | | | | | | | | | | **(d)** The | | | | | jeans producer | | | | | needs to pay | | | | | the machinist's | | | | | wages. | +-----------------+-----------------+-----------------+-----------------+ | | **(d)** | | **(a)** Sole | | | | | traders may | | | | | choose to | | | | | advertise | | | | | online, but | | | | | they do not | | | | | have to. | | | | | | | | | | **(b)** A sole | | | | | trader can | | | | | choose whether | | | | | or not to | | | | | employ staff. | | | | | | | | | | **(c)** Many | | | | | sole traders | | | | | operate from | | | | | home, but they | | | | | do not have to. | | | | | | | | | | **(d) Correct | | | | | answer:** One | | | | | effect the | | | | | government has | | | | | on all | | | | | businesses is | | | | | that it | | | | | requires | | | | | payment of tax | | | | | on any profit | | | | | made. | +-----------------+-----------------+-----------------+-----------------+ | | **(b)** | | **(a)** Market | | | | | share measure | | | | | the proportion | | | | | of the market | | | | | secured by a | | | | | firm, the | | | | | number of staff | | | | | employed is | | | | | irrelevant. | | | | | | | | | | **(b) Correct | | | | | answer:** | | | | | Making products | | | | | more appealing | | | | | should increase | | | | | sales, and | | | | | hence market | | | | | share. | | | | | | | | | | **(c)** | | | | | Reducing output | | | | | is likely to | | | | | reduce sales | | | | | rather than | | | | | increase market | | | | | share. | | | | | | | | | | **(d)** | | | | | Spending less | | | | | money is likely | | | | | to increase | | | | | profit, but has | | | | | no link with | | | | | market share. | +-----------------+-----------------+-----------------+-----------------+ | | **(c)** | | **(a)** Central | | | | | government does | | | | | not set | | | | | business | | | | | objectives; | | | | | owners/director | | | | | s/managers | | | | | do this. | | | | | | | | | | **(b)** | | | | | Diversification | | | | | relates to the | | | | | range of | | | | | business | | | | | activities | | | | | undertaken, it | | | | | does not | | | | | explain the | | | | | reason for | | | | | different | | | | | businesses | | | | | having | | | | | different | | | | | objectives. | | | | | | | | | | **(c) Correct | | | | | answer:** The | | | | | objectives of a | | | | | business change | | | | | throughout the | | | | | business' | | | | | lifetime. | | | | | | | | | | **(d)** | | | | | Copyright | | | | | legislation | | | | | stops one | | | | | business | | | | | copying | | | | | another's | | | | | designs etc, | | | | | but it does not | | | | | cover | | | | | objectives. A | | | | | business is | | | | | free to choose | | | | | objectives as | | | | | it deems to be | | | | | appropriate. | +-----------------+-----------------+-----------------+-----------------+ | | **(d)** | | **(a)** | | | | | Increased risk | | | | | is not a | | | | | benefit. | | | | | | | | | | **(b)** The | | | | | legal | | | | | requirements on | | | | | a business | | | | | remain | | | | | unchanged | | | | | irrespective of | | | | | planning. | | | | | | | | | | **(c)** | | | | | Planning should | | | | | increase rather | | | | | than reduce the | | | | | amount of | | | | | profit a | | | | | business can | | | | | make. | | | | | | | | | | **(d)** | | | | | **Correct | | | | | answer:** | | | | | Careful | | | | | planning should | | | | | reduce the | | | | | chances of | | | | | business | | | | | failure. | +-----------------+-----------------+-----------------+-----------------+ | | **(a)** | | **(a) Correct | | | | | answer:** Must | | | | | have a minimum | | | | | of two | | | | | partners. | | | | | | | | | | **(b)** All | | | | | businesses have | | | | | external | | | | | stakeholders | | | | | e.g. suppliers, | | | | | customers, | | | | | government, | | | | | local | | | | | community. | | | | | | | | | | **(c)** | | | | | Companies, | | | | | rather than | | | | | partnerships, | | | | | have | | | | | shareholders. | | | | | | | | | | **(d)** A | | | | | partnership is | | | | | a private | | | | | enterprise and, | | | | | is therefore, | | | | | no government | | | | | controlled. | +-----------------+-----------------+-----------------+-----------------+ | | **(b)** | | **(a)** | | | | | Customers | | | | | generally | | | | | prefer longer | | | | | trading hours, | | | | | shorter trading | | | | | hours | | | | | inconvenience | | | | | customers. | | | | | | | | | | **(b)** | | | | | **Correct | | | | | answer:** Local | | | | | benefits should | | | | | benefit from | | | | | less noise | | | | | pollution/litte | | | | | r/traffic | | | | | congestion. | | | | | | | | | | **(c)** | | | | | Suppliers are | | | | | likely to be | | | | | unaffected or | | | | | negatively | | | | | affected by | | | | | this decision | | | | | (due to the | | | | | potential | | | | | reduction in | | | | | custom). | | | | | | | | | | **(d)** The | | | | | government is | | | | | likely to | | | | | unaffected or | | | | | negatively | | | | | affected by | | | | | this decision | | | | | (due to the | | | | | potential | | | | | reduction in | | | | | tax on | | | | | profits). | +-----------------+-----------------+-----------------+-----------------+ | | **(b)** | | **(a)** | | | | | Candidate | | | | | correctly | | | | | calculates 2% | | | | | of profit, but | | | | | forgets to add | | | | | back the | | | | | original | | | | | profit. | | | | | | | | | | **(b)** | | | | | **Correct | | | | | answer:** | | | | | £50,000/100 x 2 | | | | | = £1000. New | | | | | profit | | | | | objective = | | | | | £50,000 + £1000 | | | | | = £51,000. | | | | | | | | | | **(c)** The | | | | | candidate | | | | | confuses 2% | | | | | with £2000 and | | | | | adds £2000 to | | | | | profit to give | | | | | £52,000. | | | | | | | | | | **(d)** The | | | | | candidate makes | | | | | a decimal place | | | | | error to the | | | | | calculation, | | | | | effectively | | | | | adding 20% to | | | | | the profit | | | | | figure. | +-----------------+-----------------+-----------------+-----------------+ | | **(d)** | | **(a)** Setting | | | | | up as a sole | | | | | trader would be | | | | | the simplest | | | | | type of | | | | | business to set | | | | | up. | | | | | | | | | | **(b)** | | | | | Planning is | | | | | appropriate for | | | | | all business | | | | | start-ups. | | | | | | | | | | **(c)** Profits | | | | | do need to be | | | | | shared between | | | | | both/all | | | | | partners, | | | | | whereas a sole | | | | | trader can keep | | | | | all profits. | | | | | | | | | | **(d)** | | | | | **Correct | | | | | answer:** | | | | | Operating as a | | | | | partnership | | | | | provides a | | | | | fellow owner | | | | | with which to | | | | | share important | | | | | decisions. | | | | | Hopefully, two | | | | | heads are | | | | | better than | | | | | one. | +-----------------+-----------------+-----------------+-----------------+ | | **(c)** | | **(a)** All | | | | | businesses must | | | | | obey employment | | | | | law. | | | | | | | | | | **(b)** | | | | | Candidate | | | | | confuses | | | | | limited | | | | | liability with | | | | | market | | | | | limitations, in | | | | | this case a | | | | | geographical | | | | | limitation. | | | | | | | | | | **(c) Correct | | | | | answer:** | | | | | Limited | | | | | liability | | | | | protects a | | | | | business | | | | | owner's | | | | | personal funds | | | | | from being used | | | | | to pay business | | | | | debts. | | | | | | | | | | **(d)** A | | | | | business is | | | | | always free to | | | | | change its | | | | | objectives; | | | | | indeed a | | | | | periodic review | | | | | is advised. | +-----------------+-----------------+-----------------+-----------------+ | | **(a)** | | **(a) Correct | | | | | answer:** | | | | | Determination | | | | | and creativity | | | | | are key | | | | | characteristics | | | | | of successful | | | | | entrepreneurs. | | | | | | | | | | **(b)** Being | | | | | disorganised | | | | | and inflexible | | | | | are not | | | | | characteristics | | | | | of successful | | | | | entrepreneurs. | | | | | | | | | | **(c)** | | | | | Determination | | | | | is important, | | | | | but | | | | | inflexibility | | | | | is likely to | | | | | hinder the | | | | | potential | | | | | success of an | | | | | entrepreneur. | | | | | | | | | | **(d)** | | | | | Entrepreneurs | | | | | are usually | | | | | risk taking | | | | | rather than | | | | | risk averse. | | | | | Being | | | | | disorganised is | | | | | only likely to | | | | | hinder the | | | | | potential | | | | | success of an | | | | | entrepreneur. | +-----------------+-----------------+-----------------+-----------------+ | | **(a)** | | **(a) Correct | | | | | answer:** | | | | | Organic growth | | | | | is business | | | | | expansion from | | | | | within the | | | | | business. | | | | | Gaining new | | | | | customers is an | | | | | example of | | | | | organic growth. | | | | | | | | | | **(b)** When | | | | | organic growth | | | | | is achieved a | | | | | business is | | | | | likely to | | | | | increase, | | | | | rather than | | | | | reduce, market | | | | | share. | | | | | | | | | | **(c)** Merging | | | | | with another | | | | | business is an | | | | | external | | | | | (inorganic) | | | | | method of | | | | | business | | | | | expansion. | | | | | | | | | | **(d)** | | | | | Increasing | | | | | selling price | | | | | may increase | | | | | revenue (if | | | | | sales hold up); | | | | | however this is | | | | | not a form of | | | | | organic growth. | +-----------------+-----------------+-----------------+-----------------+ | | **(a)** | | **(a) Correct | | | | | answer:** A | | | | | business plan | | | | | is often used | | | | | as way to | | | | | obtain finance. | | | | | | | | | | **(b)** A job | | | | | description | | | | | contains a list | | | | | of the tasks | | | | | and | | | | | responsibilitie | | | | | s | | | | | of a particular | | | | | job. It is most | | | | | commonly used | | | | | in recruitment. | | | | | | | | | | **(c)** A | | | | | person | | | | | specification | | | | | lists the | | | | | skills and | | | | | quality | | | | | required for a | | | | | candidate to be | | | | | suited to a job | | | | | vacancy. It is | | | | | most commonly | | | | | used in the | | | | | selection | | | | | process. | | | | | | | | | | **(d)** An | | | | | organisation | | | | | chart is a | | | | | human resource | | | | | tool which is | | | | | used to map the | | | | | structure of an | | | | | organisation. | | | | | It may be | | | | | included in a | | | | | business plan, | | | | | but it is not a | | | | | crucial part in | | | | | the obtaining | | | | | of finance. | +-----------------+-----------------+-----------------+-----------------+ | | **(d)** | | **(a)** Setting | | | | | business | | | | | objectives | | | | | gives specific | | | | | targets by | | | | | which business | | | | | performance can | | | | | be measured. | | | | | | | | | | **(b)** Setting | | | | | objectives can | | | | | be used to | | | | | motivate | | | | | workers to | | | | | achieve. | | | | | | | | | | **(c)** Setting | | | | | objectives | | | | | clarifies | | | | | business | | | | | direction and | | | | | aids decision | | | | | making. | | | | | | | | | | **(d) Correct | | | | | answer:** | | | | | Setting | | | | | objectives may | | | | | increase | | | | | management | | | | | workload, but | | | | | this is not a | | | | | benefit to a | | | | | business. High | | | | | workloads lead | | | | | to | | | | | inefficiency, | | | | | mistakes, | | | | | demotivation | | | | | and stress. | +-----------------+-----------------+-----------------+-----------------+