Quiz: The Business Management Knowledge Test

62 Questions | By Leeaaronbaker | Updated: Feb 13, 2023 | Attempts: 139

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Quiz: The Business Management Knowledge Test - Quiz

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1.

In the BBC series ‘Theo’s Adventure Capitalists’, Theo Paphitis argued that the most important entrepreneurial characteristic behind success is calculated risk-taking. Each of the following is involved in calculated risk-taking, except:
- A.
  
  There can be unanticipated competition
- B.
  
  All entrepreneurs use their own money
- C.
  
  Setting up in business requires judgement
- D.
  
  The economic climate may change
2.

Sue Russell decided that she would leave her job at Denby Potteries (UK) Ltd in order to set up her own business. Which of the following is the most likely explanation for Sue’s decision to set up her own business?
- A.
  
  To develop a niche market
- B.
  
  To reduce risk-taking
- C.
  
  For non-ethical reasons
- D.
  
  To work independently
3.

The IKEA Group, owned by Swedish entrepreneur Ingvar Kamrad, has a large workforce made up of employees ranging from full-time permanent to part-time seasonal staff. Ingvar’s management style has been described by his staff as restrictive and absolute. Which of the following management styles would most apply to Ingvar Kamprad?
- A.
  
  Democratic – consultative
- B.
  
  Democratic – paternalistic
- C.
  
  Autocratic
- D.
  
  Laissez Faire
- E.
  
  Administration
4.

Ruth Badger, star of the BBC series ‘The Apprentice’, has argued that the most important characteristic of a successful entrepreneur is ‘having the right attitude’. Which of the following is least likely to be a characteristic of a successful entrepreneur?
- A.
  
  Resilience
- B.
  
  Creativity
- C.
  
  Cautiousness
- D.
  
  Hard working
5.

Mike and Carol Clare, husband and wife former owners of Dreams, the UK bed company, decided to sell the company in March 2008. Which of the following is the most likely reason to explain their sale of the business?
- A.
  
  To work fewer hours
- B.
  
  To increase risk taking
- C.
  
  To become more dependent
- D.
  
  To reduce capital to set up another business
6.

Andy Walker, General Manager at Virgin Active Ltd health club in Derby, organizes monthly ‘Coffee and Chat’ meetings with his staff to discuss and agree new ideas with him. Which one of the following leadership styles does Andy seem to be using in this case?
- A.
  
  Democratic
- B.
  
  Theory X
- C.
  
  Paternalistic
- D.
  
  Autocratic
7.

Ruth Badger, star of the BBC series ‘The Apprentice’, has argued that the most important characteristic of a successful entrepreneur is ‘having the right attitude’. Which of the following is least likely to be a characteristic of a successful entrepreneur?
- A.
  
  Resilience
- B.
  
  Creativity
- C.
  
  Cautiousness
- D.
  
  Hard working
8.

Mike and Carol Clare, husband and wife former owners of Dreams, the UK bed company, decided to sell the company in March 2008. Which of the following is the most likely reason to explain their sale of the business?
- A.
  
  To work fewer hours
- B.
  
  To increase risk taking
- C.
  
  To become more dependent
- D.
  
  To reduce capital to set up another business
9.

In 2000, Johngir Saddiq established Big Johns. This chain of 15 fast food outlets in the Midlands uses market segmentation. Market segmentation can help enterprises like Big Johns to:
- A.
  
  Identify the contribution from a range of products
- B.
  
  Reach a desired margin of safety
- C.
  
  Identify a potential market niche
- D.
  
  Distinguish between gross profit and operating profit
10.

Virgin Active Holdings Ltd, a well-known private leisure chain of health clubs, is considering how to position a new health club in a city centre. Which of the following might be described as a method of market positioning?
- A.
  
  Market mapping
- B.
  
  Market orientation
- C.
  
  Market segmentation
- D.
  
  Market sampling
11.

In November 2009, it was reported by the BBC that the world population of 6.5 billion is expected grow to 9 billion by 2100 and, as a result, a shortage of world food supplies is expected.
- A.
  
  Level of technology
- B.
  
  Growth in consumer incomes
- C.
  
  Advertising to consumers
- D.
  
  Fashion, tastes and preferences
12.

In 1995, Laban Roomes prepared a business plan for his business, Gold Genie. Each of the following statements about a business plan is true, except
- A.
  
  It is a legal requirement for a new business
- B.
  
  It helps to predict profits and liquidity
- C.
  
  It can be modified once written
- D.
  
  Usually it includes sections on finance, staffing and marketing
13.

The price of petrol increased on average by 20% in the European Community in 2009. Which of the following is a demand factor which would most likely lead to an increase in the price of petrol?
- A.
  
  A decrease in the price of oil
- B.
  
  A decrease in the price of cars
- C.
  
  A decrease in promotional costs of petrol retailers
- D.
  
  A reduction in government tax charged to oil companies
14.

Sir Alan Sugar, star of the BBC’s The Apprentice, has a personal fortune of around£800 million, stemming from a range of successful businesses. Sir Alan Sugarconsiders himself to be successful because he is effective at positioning hisbusinesses.Which of the following is not an aspect of positioning a business?
- A.
  
  Evaluating the competition
- B.
  
  Estimating profitability
- C.
  
  Market mapping
- D.
  
  Considering the competitive advantage of the product/service
15.

If the price of Apple iPhones increases, the company would be willing to supplymore 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
16.

During 2009, it was reported that a number of Maclaren baby buggies had adesign 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
17.

The chocolate confectionery market in the United Kingdom (UK) is highly segmented.In a segmented market there will always be:
- A.
  
  Many rival producers and fierce competition
- B.
  
  Small differences in sales levels between regions
- C.
  
  Higher sales revenues from younger consumers
- D.
  
  Distinct types of products to meet varied preferences of consumer types
18.

Sebastian Bertollini, the owner of a new clothing manufacturing company based in the town of Biella in Italy, chose to lease a machine rather than buy it.As a result of this decision, Sebastian will benefit from
- A.
  
  More sales revenue
- B.
  
  Lower start-up costs
- C.
  
  Lower labour costs
- D.
  
  Better quality output
19.

Prices in the computer games console market are affected by both supply and demand factors.An increase in which one of the following is most likely to lead to a decrease in the price of computer games consoles?
- A.
  
  The salaries of console designers
- B.
  
  The rate of sales tax
- C.
  
  The supply of components for manufacturing consoles
- D.
  
  Promotional costs of computer games console retailers
20.

Before setting up in business as a personal trainer in 2010, Marvin Burtonundertook qualitative and quantitative market research.Which one of the following questions is most likely to lead to qualitative results?
- A.
  
  How often do you visit a gym?
- B.
  
  What price are you currently paying for gym membership?
- C.
  
  What motivated you to join a gym?
- D.
  
  How long have you been a member of a gym?
21.

Founded in London in 1982, Rubicon manufactures Exotic Tropical Drinks. It wasset up by two ex-employees of an international soft drinks company, after theyundertook product trials.Each of the following is a way to turn a product trial into a repeat purchase, except
- A.
  
  Market mapping
- B.
  
  High operating profit margins
- C.
  
  Product differentiation
- D.
  
  Word-of-mouth advertising
22.

The University of Warwick conducts secondary research in order to assist inimproving its market position as one of the leading universities in the UK.Which of the following is not an example of secondary research?
- A.
  
  In-depth interviews with open day visitors
- B.
  
  Using market intelligence reports
- C.
  
  Information from the University and Colleges Admissions Service
- D.
  
  Higher Education articles in the Times Education Supplement
23.

In December 2009, it was reported that Ferrero chocolates, imported from Italy,are available only in niche shops in India.Which of the following is not true about niche markets?
- A.
  
  Prices tend to be high
- B.
  
  Supply tends to be low
- C.
  
  The number of consumers tends to be low
- D.
  
  Effective demand tends to be high
24.

The opportunity cost of an entrepreneur setting up a business, such as a florist, is
- A.
  
  The tax on profit
- B.
  
  Lost earnings from employment
- C.
  
  The risk of business failure
- D.
  
  The cost of advertising to attract customers
25.

It has been reported that ‘the growth of the Wagamama chain of noodlerestaurants in central London has been phenomenal’. Growth centred aroundWagamama’s ‘competitive advantage’.Each of the following might provide Wagamama with a competitive advantage, except
- A.
  
  Paying the national minimum wage to employees
- B.
  
  Paying the national minimum wage to employees
- C.
  
  All food is cooked fresh to order
- D.
  
  The average stay of customers is relatively short