1) Which one of these changes is most likely to lead to higher costs and higher demand for a product? a) A. An increase in the rate of inflation b) B. A rise in interest rates c) C. Introducing fair trade principles d) D. More competition 2) A business moves an employee to a different job. a) A. Delayering b) B. Delegating c) C. Redeployment d) D. Redundancy 3) Ordinary shares traded on the stock exchange are those issued by: a) A. Private limited companies b) B. Public limited companies c) C. Public sector organisations d) D. Sole traders 4) Which of the following statements is true? a) A. An increase in interest rates is likely to lead to more demand for houses. b) B. The population size is a demographic factor in the external environment. c) C. A soft approach to human resource management is likely to involve a low level of delegation. d) D. A mission will have a more specific target than a business objective. 5) Lower UK interest rates are likely to lead to an increase in the volume of UK exports because they probably lead to: a) A. A rise in costs of UK businesses and a rise in the exchange rate of the pound b) B. A rise in costs of UK businesses and a fall in the exchange rate of the pound c) C. A fall in costs of UK businesses and a rise in the exchange rate of the pound d) D. A fall in costs of UK businesses and a fall in the exchange rate of the pound 6) Which one of the following does not vary with output in the short-run? a) A. Total revenue b) B. Total costs c) C. Fixed costs d) D. Variable costs 7) Market capitalisation is the total value of a company’s: a) A. Assets b) B. Dividends paid to shareholders c) C. Shares, based on the current share price d) D. Shares, based on the original share price 8) Public limited companies usually pay ordinary shareholders their share of the profits in the form of: a) A. Inventory b) B. Dividends c) C. Fixed interest payments d) D. Retained profits 9) Which one of the following external factors is most likely to cause an increase in demand and a decrease in costs for a highly geared furniture retailer? a) A. New competition entering the market b) B. Increases in incomes for all workers in the country c) C. A decrease in the rate of interest d) D. A fall in the number of people of working age 10) Which one of the following will be a variable cost for a coffee shop? a) A. Ingredients for the cups of coffee b) B. Salary paid to the manager c) C. Advertising costs d) D. Rent paid for the premises 11) A limited liability company goes into liquidation, owing its suppliers £80 000 but only having assets worth £50 000, leaving an imbalance of £30 000. Who suffers the financial loss of this £30 000 imbalance? a) A. The company's bank b) B. Government c) C. Shareholders d) D. Suppliers 12) Which one of these sources of finance may involve the payment of a dividend? a) A. Debt factoring b) B. Loans c) C. Overdrafts d) D. Share capital 13) How will an increase in interest rates be most likely to affect a highly geared house builder? a) A. Decreasing costs and decreasing demand b) B. Decreasing costs and increasing demand c) C. Increasing costs and decreasing demand d) D. Increasing costs and increasing demand 14) A bank overdraft is: a) A. An external source of long-term finance b) B. An external source of short-term finance c) C. An internal source of long-term finance d) D. An internal source of short-term finance 15) The managers of a business propose to retain all of its profit to finance automation of its production. This is most likely to cause conflict with: a) A. Employees and lenders b) B. Employees and shareholders c) C. Lenders and suppliers d) D. Shareholders and suppliers 16) A business is able to reduce unit costs because of lessons learned throughout the period in which it has existed. This is known as: a) A. Economies of scale b) B. Economies of scope c) C. Synergy d) D. The experience curve 17) In a decision tree the net gain of a decision is the: a) A. Average pay-off of the outcomes b) B. Expected value of the best decision minus the expected value of the next best decision c) C. Expected value minus the initial cost d) D. Total pay-off of the outcomes minus the initial cost 18) The owner of a business which sells hot drinks asks a focus group of customers for their views. This market research reveals that customers prefer to have cakes with their drinks. In terms of Ansoff's matrix, the subsequent decision to introduce cakes is an example of: a) A. Diversification, resulting from qualitative market research b) B. Diversification, resulting from quantitative market research c) C. Product development, resulting from qualitative market research d) D. Product development, resulting from quantitative market research 19) Based on Kaplan & Norton's Balanced Scorecard model, a policy to increase Research and Development spending on new products by 5% would be an element of the: a) A. Customer perspective b) B. Financial perspective c) C. Internal business process perspective d) D. Learning and growth perspective 20) Which one of the following is least likely to be an advantage of operating in a niche market for a small business? a) A. Economies of scope b) B. Focused marketing c) C. Less competition d) D. Opportunity for tailor-made products 21) A business's decision to increase its level of capital expenditure is most likely to: a) A. Achieve long-term growth b) B. Achieve short-term profits c) C. Avoid cash flow problems d) D. Reduce gearing levels 22) n 2019, the niche market of electric cars increased its share of the global car sales market from 0.8% to 2.4%. However, global car sales fell by 2.5%. Model X was the most popular electric car. On a Boston Matrix for the global car market in 2019, Model X was a: a) A. Cash cow b) B. Dog c) C. Problem child / question mark d) D. Star 23) Assuming no other changes, capacity utilisation is likely to be: a) A. Decreased by dynamic pricing and decreased by penetration pricing b) B. Decreased by dynamic pricing and increased by penetration pricing c) C. Increased by dynamic pricing and decreased by penetration pricing d) D. Increased by dynamic pricing and increased by penetration pricing 24) The leadership crisis occurs at the end of which of Greiner's stages of growth? a) A. Growth through collaboration b) B. Growth through creativity c) C. Growth through delegation d) D. Growth through direction 25) An employee resists change because it will not help her personally. The business overcomes her resistance by offering her a role in managing the change. This is an example of using: a) A. Coercion to overcome fear and misunderstanding b) B. Coercion to overcome self-interest c) C. Manipulation to overcome fear and misunderstanding d) D. Manipulation to overcome self-interest 26) A business replaces some of its workforce with machinery. This leads to a 10% increase in capacity and output and a 5% increase in unit costs. This is an example of: a) A. More capital intensive production and economies of scale b) B. More capital intensive production and diseconomies of scale c) C. More labour intensive production and economies of scale d) D. More labour intensive production and diseconomies of scale 27) Decreasing government subsidies on a country’s agriculture would be: a) A. Fiscal policy which encourages more open trade b) B. Fiscal policy which increases protectionism c) C. Monetary policy which encourages more open trade d) D. Monetary policy which increases protectionism 28) Which one of these strategies from Bowman's strategic clock is most likely to be a successful long-term strategy? a) A. High price and low added value b) B. High price and standard added value c) C. Low price and low added value d) D. Standard price and low added value 29) Which one of the following methods of payment to employees would not be seen as a method of financial motivation by Taylor? a) A. Commission b) B. Performance-related pay c) C. Piece rate d) D. Salary 30) In a SWOT analysis of a business, which one of the following statements is true? a) A. An inefficient quality assurance system is a threat. b) B. Lower unemployment leading to increased demand is a strength. c) C. New legislation that requires a business to modify its products is a weakness. d) D. The liquidation of a competitor is an opportunity. 31) Lower UK interest rates are likely to lead to an increase in the volume of UK exports because they probably lead to: a) A. A rise in costs of UK businesses and a rise in the exchange rate of the pound b) B. A rise in costs of UK businesses and a fall in the exchange rate of the pound c) C. A fall in costs of UK businesses and a rise in the exchange rate of the pound d) D. A fall in costs of UK businesses and a fall in the exchange rate of the pound 32) According to Porter's five forces, which one of these events is most likely to help a business's profitability? a) A. A decrease in supplier power b) B. A new entrant into the market c) C. An increase in buyer power d) D. New product development by a competitor 33) Which one of the following statements is true? a) A. Backward vertical integration is impossible for a retailer. b) B. Conglomerate integration narrows the product range. c) C. Forward vertical integration allows a business better access to its raw materials. d) D. Horizontal integration should give a business an immediate increase in market share. 34) A farmer takes over a retailer in order to sell its produce. This is an example of: a) A. Horizontal integration b) B. Backward vertical integration c) C. Forward vertical integration d) D. Conglomerate integration 35) Options A to D below show four different combinations of monetary and fiscal policy. Which combination is most likely to lead to an increase in sales for a company that builds houses? Assume there are no other changes. a) A. Decreasing interest rates and decreasing taxation. b) B. Decreasing interest rates and increasing taxation. c) C. Increasing interest rates and decreasing taxation. d) D. Increasing interest rates and increasing taxation. 36) A business helps its local community with a view to improving the quality of life of nearby residents. In Carroll's pyramid of corporate social responsibility, this is most likely to be an example of: a) A. Economic responsibility b) B. Ethical responsibility c) C. Legal responsibility d) D. Philanthropic responsibility 37) An approach to examine the impact of possible changes on the predicted financial outcome of an investment is known as: a) A. Investment criteria b) B. Non-financial factors c) C. Sensitivity analysis d) D. The discount rate 38) Starbucks is an American coffee shop. In recent years it has opened over 300 tea shops in America to appeal to its existing customers. According to Ansoff's matrix this is an example of: a) A. Diversification b) B. Market development c) C. Market penetration d) D. Product development 39) According to Lewin's force field analysis: a) A. Change will occur if driving forces are stronger than restraining forces b) B. Change will occur if negative forces equal positive forces c) C. A company will grow if its strengths and opportunities outweigh its weaknesses and threats d) D. A company will grow if horizontal forces and vertical forces are balanced 40) In a business each employee has a job with clear rules and procedures. Which of Handy's cultures does this description most closely correspond to? a) A. Person culture b) B. Power culture c) C. Role culture d) D. Task culture 41) Bartlett and Ghoshal classified international businesses into four categories, according to their approach to internationalisation. A business whose approach is based on both high levels of global integration and high levels of localisation is known as: a) A. Global b) B. International c) C. Multi-domestic d) D. Transnational 42) A business wants to adopt a strategy to limit the adverse impact arising from one of Porter's five forces. A strategy of forward vertical integration would be most relevant if the adverse impact was the result of: a) A. Buyer power b) B. Entry threat c) C. Rivalry d) D. Substitute threat 43) In Ansoff's matrix, a strategy of growth based on existing products and existing markets is known as: a) A. Diversification b) B. Market development c) C. Market penetration d) D. New product development 44) Which of the following is an example of monetary policy to help businesses expand? a) A. Discouraging banks from lending b) B. Lower corporation tax rates c) C. Increased government subsidies d) D. Lower interest rates 45) Handy identified four different types of organisational culture. Which of these cultures is most likely to be adopted by a business that emphasises problem-solving using employees from different parts of the organisation? a) A. Person culture b) B. Power culture c) C. Role culture d) D. Task culture 46) Which of the following is a definition of strategy? a) A. A target for the whole business b) B. A long-term plan to achieve an objective c) C. Short-term actions to fix a problem d) D. A statement of the values of the business 47) The lowest level of Carroll's Corporate Social Responsibility pyramid shows: a) A. Discretionary or philanthropic responsibilities b) B. Economic responsibilities c) C. Ethical responsibilities d) D. Legal responsibilities 48) One high street bank merges with another high street bank. This is best described as an example of: a) A. Backward vertical integration b) B. Diversification c) C. Forward vertical integration d) D. Horizontal integration 49) Greiner's model of growth describes different phases of business growth over time. What is the order of the first three stages? a) A. Creativity – Delegation – Direction b) B. Creativity – Direction – Delegation c) C. Direction – Creativity – Delegation d) D. Direction – Delegation – Creativity 50) In Bowman's strategy clock, what does a strategy of 'focused differentiation' mean? a) A. High price and high added value b) B. High price and low added value c) C. Low price and high added value d) D. Low price and low added value

Business mutiple choice questions

par
Incorporer

Classement

Style visuel

Options

Changer de modèle

Restauration auto-sauvegardé :  ?