Types Of Business Activities: Quiz!

15 Questions | Total Attempts: 677

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Types Of Business Activities: Quiz!

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Questions and Answers
  • 1. 
    The primary stage of production is concerned with:
    • A. 

      Growing crops and extracting the earth’s natural resources

    • B. 

      Providing services to consumers and industry

    • C. 

      converting natural resources into finished goods

    • D. 

      transporting goods to the final consumer.

  • 2. 
    The tertiary sector of the industry tends to be the most important sector in high income (most developed) countries because:
    • A. 

      Agricultural output is more important than services

    • B. 

      As consumers have little money to spend they use most of their income to buy manufactured goods

    • C. 

      Most workers are employed in manufacturing products in these countries

    • D. 

      As consumers, incomes are high they spend more on services such as hotels and leisure.

  • 3. 
    A free-market economy is one in which:
    • A. 

      All resources are owned by the state (government)

    • B. 

      There are only secondary industries

    • C. 

      all resources are privately owned

    • D. 

      Some resources are owned by the state and some are privately owned.

  • 4. 
    Which of the following is a claimed advantage of a free market economy?
    • A. 

      Government control makes sure that all incomes are equal.

    • B. 

      As there is no competition, money will not be wasted on advertising

    • C. 

      Everyone will always have work if they want it.

    • D. 

      Businesses are free to compete with each other and prices will be kept low.

  • 5. 
    In a mixed economy, which of the following groups of industries are most likely to be controlled/owned by the government?
    • A. 

      Hotels and restaurants

    • B. 

      Health and public transport

    • C. 

      Building and taxi services

    • D. 

      food shops and farming

  • 6. 
    Which of the following is the best definition of privatization?
    • A. 

      When private limited companies convert into public limited companies

    • B. 

      When a partnership converts into a private limited company

    • C. 

      When a state owned industry is sold into the private sector

    • D. 

      When a private sector business is purchased by the government

  • 7. 
    Which one of the following is a claimed disadvantage of privatization?
    • A. 

      Jobs might be lost as the private owners will try to cut costs and increase profits.

    • B. 

      The government will raise large sums of money which could help to reduce taxes.

    • C. 

      There will be less competition than when the industry was a nationalised monopoly.

    • D. 

      Politicians will now influence business decisions.

  • 8. 
    Which of the following is NOT a recognized way of measuring the size of a bus?
    • A. 

      Number of employees

    • B. 

      Value of sales

    • C. 

      Value of capital employed

    • D. 

      Number of computers used

  • 9. 
    Using capital employed as a measure, which appears to be the largest firm?
    • A. 

      A

    • B. 

      B

    • C. 

      C

    • D. 

      D

  • 10. 
    Using the number of employees as a measure, which appears to be the largest firm?
    • A. 

      A

    • B. 

      B

    • C. 

      C

    • D. 

      D

  • 11. 
    Using the value of sales turnover as a measure, which appears to be the largest firm?
    • A. 

      A

    • B. 

      B

    • C. 

      C

    • D. 

      D

  • 12. 
    Which of the following is the most likely reason for owners wishing to expand their businesses?
    • A. 

      To keep control of the business

    • B. 

      To make higher profits

    • C. 

      To encourage competition

    • D. 

      To avoid publicity

  • 13. 
    Which of the following is an example of horizontal integration between two businesses?
    • A. 

      An oil company and an insurance company merge.

    • B. 

      A shoe shop buys out the factory making shoes.

    • C. 

      A steel firm takes over a coal mine that supplies coal.

    • D. 

      Coca-Cola takes over a small soft drink business.

  • 14. 
    One of the reasons for vertical integration between two businesses could be to:
    • A. 

      Diversify into a completely different industry

    • B. 

      Reduce competitors supplying the same product

    • C. 

      Control the supply of raw materials needed for production

    • D. 

      Obtain higher market share

  • 15. 
    In some industries, there are many successful small firms. One of the reasons for this could be that:
    • A. 

      The consumers demand specialist products or services

    • B. 

      There are great opportunities for economies of scale

    • C. 

      The industry is owned by the state

    • D. 

      the market is very large.