Revision questions form 4

Chapter 1 - Business activity

Definitions:

a) Need b) Opportunity costs

c) Want d) Specialisation
e) Economic problem f) Division of labour
g) Factors of production h) Added value
i) Scarcity
Questions:
1) What are the advantages and disadvantages of division of labour and specialization?
2) How could a business increase added value for its products/service?
Chapter 2 - Classification of businesses

Definitions:

a) Primary sector b) De-industrialisation

c) Secondary sector d) Mixed economy
e) Tertiary sector f) Capital

Chapter 3 - Enterprise, business growth and size

a) Entrepreneur b) Merger
c) Business plan d) Takeover
e) Capital employed f) Horizontal integration
g) Internal growth h) Vertical integration
i) External growth j) Conglomerate integration
Questions

1) What are the benefits and drawbacks of opening one`s own business?
2) What are the characteristics of successful entrepreneurs?
3) Why do governments support business startups (advantages of businesses to society)?
4) How can governments help business startups?
5) How can a business measure/compare size of businesses?
6) Why do businesses want to grow/expand their business?
7) What are the benefits of:
a) Horizontal integration
b) Forward vertical integration
c) Backward vertical integration
d) Conglomerate integration
8) What are the problems associated with growth and how can a business overcome these?
9) Why do some businesses stay small?
10) What are the common reasons for business failure?
11) Why new businesses are at greater risk of failing?
 Chapter 4 - Types of business organisations

Definitions:

a) Sole traders b) Shareholders

c) Limited liability d) Annual general meeting
e) Unlimited liability f) Dividends
g) Partnership h) Joint venture
i) Partnership agreement j) Franchise
k) Unincorporated business l) Public corporation
m) Incorporated business n) Private limited company
o) Public limited company
Questions

1) What are the advantages and disadvantages of:

a) Sole trader e) Joint venture
b) Partnership f) Franchising (for franchisor and franchisee)
c) Private limited company g) Public corporations
d) Public limited company

Chapter 5 - Business objectives and stakeholder objectives

Definitions:

a) Business objectives b) Social enterprise

c) Profits d) Stakeholder
e) Market share
Questions:

1) Describe the objectives that a business could set.

2) What are the objectives of a social enterprise?
3) What are the stakeholders of a business?
4) Why do businesses sometimes need to change the objectives of the firm?
5) What are the objectives of a public sector business?
6) Give examples of conflicts of objectives that may arise between different stakeholders and
explain how a manager could solve these.
 Chapter 6 - Motivating workers

Definitions:

a) Motivation b) Team working

c) Wages d) Piece rate
e) Salary f) Fringe benefits
g) Commission h) Job satisfaction
i) Profit sharing j) Job rotation
k) Bonus l) Training
m) Promotion n) Job enrichment
o) Time rate

Questions:

1) Why do people work?

2) Describe the following motivational theories in details:
a) F.W. Taylor theory of the economic man
b) Maslow`s hierarchy of needs
c) Hertzberg two factor theory
3) How can a business pay its employees?
4) What fringe benefits could a business give to its employees?
5) How can a business increase job satisfaction of its employees?

Chapter 7 - Organisation and management

Definitions

a) Organizational structure b) Autocratic leadership style

c) Chain of command d) Democratic leadership style
e) Span of control f) Laissez faire leadership style
g) Line managers h) Trade unions
i) Delegation j) Closed shop
k) Leadership styles l) Organisational chart
m) Hierarchy n) Level of hierarchy
o) Directors p) Staff managers
q) Supervisors
Questions

1) What are the advantages of making an organizational chart?

2) What are the advantages of having a short chain of command?
3) What are the main roles of management in a business?
4) What are the advantages of delegation for managers and subordinates?
5) Why might a manager decide to not delegate?
6) What is the best leadership style?
7) What are the advantages and disadvantages of joining a trade union for an employee?
 Chapter 8 - Recruitment, selection and training of workers

Definitions

a) Recruitment b) Induction training

c) Job analysis d) On the job training
e) Job description f) Off the job training
g) Job specification h) Work force planning
i) Internal recruitment j) Redundancy
k) External recruitment l) Ethical decision
m) Part time employment n) Industrial tribunal
o) Full time employment p) Contract of employment
q) Employee selection r) Part time
s) Full time t) Dismissal
Questions

1) Describe in details the different functions of the human resource department

2) Assess the advantages and disadvantages of internal and external recruitment
3) Assess the advantages and disadvantages of employing part time staff
4) What are the advantages and disadvantages of:
a) Induction training
b) On the job training
c) Off the job training
5) How do employees get protection from the government?

Chapter 9 - Internal and external communication

Definitions:

a) Communication f) Two way communication

b) Internal communication g) Formal communication
c) External communication h) Informal communication
d) Feedback i) Communication barriers
e) One way communication j) Message
k) Sender or transmitter l) Medium of communication
m) receiver
Questions
1) Why is it important for a business to have effective:
a) Internal communication b) External communication
2) What are the advantages of two way communication over one way communication?
3) What factors should be considered when choosing the appropriate communication methods?
4) What are the advantages and disadvantages of:
a) Verbal communication c) Visual communication
b) Written communication d) Electronic communication
5) What are the common communication barriers and what the solution to these?
 Chapter 10 - Marketing, competition and the customer

Definitions:

a) Market share c) Niche market

b) Mass market d) Market segment
e) Marketing f) Customer
g) Customer loyalty h) Customer relationships
i) Consumer J)
Questions:
1) What is the role of marketing?
2) Why do customers spending patterns change?
3) Why do markets become more competitive?
4) How can businesses respond to changes in consumer patterns and increased competition?
5) How can a business segment the market for its products?
6) What are the benefits of market segmentation?

Chapter 11 - Market research

Definitions:

a) Product orientated business f) Secondary research

b) Market orientated business g) Sample
c) Marketing budget h) Random sample
d) Market research i) Quota sample
e) Primary research j) Focus group
k) Questionnaire l) Online surveys
m) interviews n)
Questions:

1) Why is market research needed?

2) What type of information do we gather when doing market research?

3) What are the advantages and disadvantages of these methods of primary research?

a) Questionnaire b) Interviews

c) Focus groups d) Observation

4) What determines the accuracy of market research?

5) What are the rules that we should follow when writing a questionnaire?

6) How can we present the information gathered through primary research?