Business multiple choice
Business Knowledge Quiz
Test your understanding of essential business concepts with our comprehensive quiz! This engaging challenge consists of 51 multiple-choice questions that cover various aspects of business, from marketing to operational strategies.
Challenge yourself and see how much you really know. Ideal for students, professionals, or anyone interested in enhancing their business acumen.
- 51 Questions
- Multiple Choice Format
- Assess Your Knowledge
What type of risks do successful entrepreneurs tend to take?
Cash flow risks
Enterprise risks
Opportunity risks
Calculated risks
What is a dividend
An annual gift to shareholders
A tax on profits
A payment to shareholders out of profits
A repayment of the share price
The extent to which demand changes in response to a change in price is known as
Price elasticity of demand
Inelasticity of supply
Income elasticity of demand
Price inflation
A possible disadvantage of cutting prices could be
Competition will raise prices in response
Higher profit margin per unit sold
Customer perception of lower quality
Increased demand
A possible disadvantage of using competitor pricing is that
It will not attract target customers
Consumers may feel it's unfair
The price may not cover the costs
The price will skim off too much profit
Who might benefit from a trade discount on a price
A distributor or other intermediary
An overseas customer
A regular shopper
A customer buying for children
A key advantage of advertising on national television is that
The marketing budget can be very small
Visual messages are not needed
The audience is normally very large
Customers only believe TV advertisements
Minimising the unit cost of production is particularly important for a business where
There are many opportunities for adding value
Competition is largely based on price
Consumers are loyal
Production inputs need to be imported
A possible disadvantage of operating at very high levels of capacity utilisation is:
Labour productivity is low
Cannot invest in new technology
Break-even output will be high
Less able to respond to sudden increases in demand
Robots are particularly useful when
Production involves a high degree of customisation
Production task is repeatable
Business operates in the tertiary sector
Low level of precision or accuracy required
Which of these factors would be most likely to reduce a firms demand for labour?
A takeover by a competitor
A competitor goes out of business
A significant recession
A rise in raw material prices
Which of these is an external influence on a firms marketing strategy?
Unit costs of production
Quality of customer care
Changes in household tastes and fashions
Ability to develop new products
Work force planning is about:
The historical demand for staff
How many and what types of staff are required
What the costs of employment are
What products staff can make
Which of the following stock turnovers is likely to represent that of a Domino's Pizza outlet?
45 days
8 days
178 days
123 days
The process of making sure a team takes on responsibility for meeting a goal is called:
Budgeting
Accountability
Responsibility accounting
Flexibility
Which of these is not a feature of an effective team?
Mutual dislike
Task relevant experience
Feeling of involvement
Flexibility
A possible reason why a team may lack cohesion is:
Contributions are recognised
Team goals are poorly defined
Strong leadership
Low turnover of team members
The ability of a team to achieve more than the sum of its parts is usually called:
Synergy
Motivation
Culture
Productivity
When members of a team "stick together" they are said to be:
Seperated
Adhesive
Normed
Cohesive
Which of the following might result in a cash flow problem?
Reduction in stocks of finished goods
Disposal of surplus assets
Increase in profitability
Over investment in capacity
As a firm grows in size, what happens to its unit cost?
They will always fall
They will always rise
They will always stay the same
They can rise or fall
Which of these industries or markets is the most capital intensive?
Fruit farming/picking
Accountancy
Hair dressing and other personal services
Oil extraction and refining
Whose marketing objectives would most need to be lowered by a decline in household incomes?
Discount stores
Cigarette companies
Family restaurants
Fast food chains
Which of these actions would reduce the capacity of a motor manufacturer?
Decrease in the selling price of a new car
Change to a shorter working week
Add an extra shift
Reduce the hourly wage rate
Market share is normally expressed in terms of:
Number of products
Value of output
Percentage share
Sales per customer
The proportion of a markets total value which is taken by one firm or brand is known as:
Market share
Market segmentation
Market growth
Market mix
Cost savings that arise as a result of a firm getting bigger are called:
Opportunity costs
Economies of scale
Fixed costs
Scale savings
A key reason why a firm might significantly cut dividend per share would be
Increase net profit margin
Increase gearing
Conserve cash
Reduce asset turnover
Activities or industries that require significant investment in equipment are said to be:
Capital intensive
Labour intensive
Secondary activities
Unprofitable
The bringing together of two firms to form a new firm is called a:
Consolidation
Flotation
Merger
Takeover
Operating a business without depleting the environment is called:
Ethical sourcing
Sustainability
Efficiency
Fair trade
Car manufacturers have to pay particular attention to environmental laws concerning
Pricing
Packaging
Carbon emissions
Employee training
Businesses must store and treat waste;
Fairly and neatly
Quickly and cheaply
Ethically and safely
Safely and securely
The following would all be environmentally friendly actions except?
Eliminating excess packaging
Maximising the use of hazardous raw materials
Using clean energy in production
Using recycled materials
The following are all bases for company ratios
Inter-firm comparison
Intra-firm comparison
Comparison to an industry average
Comparison with employees
A potential disadvantage of sustainable sourcing is:
Higher input costs
Lower overheads
Lower productivity
Increased efficiency
A "green supply chain" would involve using suppliers that:
Grow their own material
Operate sustainably
Deliver high quality materials
Recycle their waste
A key business benefit of operating in an environmentally-friendly way is;
Greater customer good will
Improved productivity
Lower staff motivation
Higher operating costs
A cash flow advantage of having an overdraft is that:
It provides flexibility to meet short-term liquidity needs
No interest is payable until the overdraft is repaid
Fixed repayments help cash flow planning
Stocks and trade debtors can be offset against an overdraft limit
The formula of sales less cost of goods sold enables you to calculate:
Gross profit
Operating profit
Retained profit
Net profit
Which 3 of the following are true about an income statement?
Measures the net cash flow of a business
It shows assets and liabilities at a point in time
It helps measures the success of a business
It summarises the revenues and costs over a period
It can provide evidence of an ability to repay a debt
Which one of the following actions might improve gross profit but increase expenses?
Negotiate better prices from a supplier
Increase shareholder dividend by 10%
Increase selling price by 5%
Higher advertising for a new product
In which one of these circumstances might gross profit increase but the gross profit margin decline?
Major suppliers agree to better purchase prices
Sales of low margin products are replaced by high margin ones
Problems with quality require greater reworking of output
Slow-moving stocks are sold at a significant discount
What is depreciation?
A cash flow caused by buying fixed assets
An increase in the value of a currency
An estimate of the fall in value of a fixed asset over time
A cost arising when customers fail to pay a bill
Which 2 of these claims about a balance sheet are false? A balance sheet...
Indicates the strength of the firms profit margin
Measures cash flow over the last 12 months
Explains how the firms finances have been invested
Is drawn up at a specific point in time
Shows the assets and liabilities of a firm
Ratios assess financial information by
Looking at external influences
Focusing on cash flow
Comparing two sets of linked data
Analysing historic data
Which of the following is often a cost of poor quality?
Higher customer satisfaction
Lower levels of scrap
More claims on warranties
Positive word-of-mouth recommendations
The main source of information for ratio analysis is a firms
Financial accounts
Business plan
Cash flow forecast
Management accounts
A dividend yield is a measure of the
Return on investment (ROI) in buying a share
Profits available for distribution
Gearing of a business
The number of shares in issue
The dividend per share is calculated by dividing total dividends payable by
Capital employed
Profit after tax
Value of share capital
Number of shares issued
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