A Quick Business Quiz (UK Edition)
Test your knowledge of unit 1
- 1.If the price of Apple iPhones increases, the company would be willing to supply more because
- A.
Producing Apple iPhones had become more profitable
- B.
Costs of producing iPhones had recently increased
- C.
VAT on mobile phones had increased
- D.
Prices of competitors’ mobile phones had fallen
- 2.Small businesses, such as Cheeky Cheesecake Ltd of Cheltenham, might source their finance for the expansion of their premises through external methods. Which one of the following might be the most appropriate external method of financing the expansion of Cheeky Cheesecake’s business premises?
- A.
Trade credit
- B.
Venture capital
- C.
Sale of assets
- D.
An overdraft
- 3.During 2009, it was reported that a number of Maclaren baby buggies had a design fault, which made them dangerous to use. Which one of the following would be an immediate consequence of the above?
- A.
An increase in price
- B.
An increase in supply
- C.
A fall in demand
- D.
A fall in profits
- 4.In a consumer survey conducted by Network Rail in 2010, analysts argued that results were not valid because sampling methods used were biased. Which one of the following might lead to a biased set of survey results for Network Rail?
- A.
A range of respondents was chosen representing all rail passengers
- B.
Questions were asked at various times on different days of the week
- C.
First and standard class passengers were included in the sample
- D.
Only passengers with discount cards were used in the sample
- 5.High street retailer, Marks and Spencer, has become more market orientated in recent years. Each of the following is a likely benefit of market orientation, except
- A.
Sales revenue increases
- B.
Advertising costs might fall
- C.
Customer loyalty increases
- D.
Producers can sell what they want
- 6.Between 2009 and 2011, the annual rate of CPI inflation was above the UK government’s target range. Which one of the following could be an effect of higher inflation rates for UK manufacturer’s, such as JCB Ltd?
- A.
Fall in cost of supplies
- B.
Reduction in real wages for its staff
- C.
Increase in exports
- D.
Increase in recruitment
- 7.Neil’s Nuts, a newly established market trader of dried fruit and nuts in Walthamstow, London, successfully entered the market in January 2011. This was most likely because of a low
- A.
Margin of safety
- B.
Pricing strategy
- C.
Sales volume
- D.
Potential profit
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