1) Which one of the following types of business can sell shares on the stock exchange? a) A partnership b) A private limited company c) A public limited company d) A sole trader 2) Which of the following is an internal stakeholder of business that repairs cars? a) Mechanics who work at the garage b) Motorists who bring their car to the garage to be repaired c) Residents living near to the garage d) The government that creates the laws the garage must obey 3) The reward for enterprise is: a) hard work b) profit c) risk d) self-discipline 4) A clothing manufacturer buys a multiscreen cinema. What is this an example of? a) A diversification b) merger c) A partnership d) A vertical takeover 5) Which one of the following is not a reason to start your own business? a) To be your own boss b) To increase financial risk c) To pursue personal interests d) To satisfy customer needs 6) A business makes jeans. Which of the following is the role of its suppliers? a) To advertise the jeans on national television b) To buy large quantities of jeans c) To deliver fabric and fastenings on time d) To pay the wages of the sewing machinists 7) The UK government requires sole traders to: a) advertise online b) employ staff c) operate from home d) pay tax on profits 8) Which of the following would increase the market share of a company? a) Employing fewer staff b) Making its products more appealing c) Reducing output d) Spending less money 9) Two toy shops in Southville have different objectives. Which of the following could be a reason why these two businesses have different objectives? a) Central government sets specific objectives for every business b) Diversification is not allowed c) One business is a new start-up and the other is well established d) The law does not allow businesses to have identical objectives 10) Which one of the following is a benefit of business planning? a) It increases business risk b) It increases the legal requirements on a business c) It reduces the amount of profit a business can make d) It reduces the chances of business failure 11) A business which operates as a partnership: a) has at least two owners b) has no external stakeholders c) is controlled by shareholders d) is owned by the government 12) Which of the following stakeholder groups is most likely to benefit from a night club owner’s decision to close at 11pm instead of at 3am on weekdays? a) Customers b) Local residents c) Suppliers d) The government 13) A business has set an objective to increase profit by 2% each year.If the business made £50 000 profit in 2015, its profit objective for 2016 would be? a) £1000 b) £51 000 c) £52 000 d) £60 000 14) A young entrepreneur wishing to start her first business may choose to operate as a partnership because: a) a partnership is the simplest form of business to set up b) no planning is required c) she can keep all of the profit d) the responsibility for important decisions can be shared 15) The owners of a business with limited liability: a) are not required to obey employment law b) can only sell goods to local markets c) do not have to pay business debts with personal funds d) must not change their business objectives 16) Which of the following is most likely to describe the characteristics of a successful entrepreneur? a) Determined and creative b) Disorganised and inflexible c) Inflexible and determined d) Risk averse and disorganised 17) Which one of the following is an example of organic growth? a) Gaining new customers b) Reducing market share c) Merging with a similar business d) Increasing selling prices 18) Which of the following is most likely to help an established company obtain a bank loan? a) A business plan b) A job description c) A person specification d) organisation 19) Which one of the following is not a benefit to a business of setting objectives? a) Business performance can be measured against targets b) Can be used to motivate the workforce c) Clear direction for decision makers d) Increased manager workload

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