Recis
True or False
Governments frequently offer financial grants, tax breaks, or subsidies to encourage multinational corporations to locate factories in regions suffering from high unemployment.
True
True or False
A franchise franchisee operates independently without having to pay any ongoing royalties to the the franchisor.
False
Franchisees must pay continuous royalty fees based on revenue.
True or False
Shares in a Private Limited Company (LTD) can be bought and sold freely by the general public on a stock exchange.
False
Only Public Limited Companies (PLCs) can sell shares to the general public on a stock exchange.
True or False
Public corporations are created, funded, and controlled by the state to provide essential goods or services to the public.
True
True or False
Primary sector businesses convert processed raw materials into finished consumer goods.
False
Primary businesses extract natural resources directly from the earth.
Multiple Choice
Why do retail clothing stores choose expensive city centers?
A. Finding cheap raw materials
B. Securing large storage space
C. Lowering total worker wages
D. Maximising daily shopper visits
D. Maximising daily shopper visits
Multiple Choice
Which business activity belongs directly to the secondary sector?
A. Manufacturing consumer motor vehicles
B. Extracting raw coal underground
C. Offering personal banking services
D. Farming organic wheat crops
A. Manufacturing consumer motor vehicles
Multiple Choice
What is a major benefit brought by foreign multinationals?
A. Lowering local property prices
B. Removing national export taxes
C. Eliminating all market competition
D. Creating local job opportunities
D. Creating local job opportunities
Multiple Choice
Which factor of production includes manufactured resources such as machinery, factory buildings, and vehicles?
A. Enterprise
B. Capital
C. Labour
D. Land
B. Capital
Multiple Choice
What is a major limitation of sole trader businesses?
A. Publishing public financial accounts
B. Paying high dividend payments
C. Carrying unlimited personal liability
D. Sharing decisions with shareholders
C. Carrying unlimited personal liability
Definition
... is group or organisation that tries to influence the opinions of ordinary people and persuade the government to do something.
Pressure group
Definition
... refers to business owner is only liable for the original amount of money invested in the business.
Limited liability
Definition
... is rate at which goods are produced, and the amount produced, especially in relation to work, time and money needed to produce them.
Productivity
Definition
... refer to goods and services bought from overseas
Imports
Definition
... is value of one currency in term of another.
Exchange rate
State 2 examples of invisible trade.
Banking
Tourism
Education
Insurance
Shipping
Other possible answers are accepted
State 2 internal stakeholders of a business.
Owners
Customers
Employees
Managers
Other possible answers are accepted
State 2 tertiary sector businesses.
Banks
Hotels
Insurance
Plumbing
Delivery
Other possible answers are accepted
State 2 non-financial business objectives
Social objectives
Personal Satisfaction
Challenge
Independence and control
State 2 factors influencing the location and relocation of a business.
Proximity to the market
Proximity to labour
Proximity to materials
Proximity to competitors
A UK manufacturer exports a jacket priced at £150. The exchange rate shifts from £1 = $1.20 to £1 = $1.30. Calculate the dollar price increase for US buyers.
$15
Original price =£150 x 1.20 = $180
New price = £150 x 1.30 = $195
Increase = $195 - $180 = $15
A franchisee earns $250 000 in annual revenue and pays a 6% annual royalty fee to the franchisor. Calculate the total royalty fee paid.
$15 000
Royalty fee = $250 000 x 0.06 = $15 000
A business sells 1 200 units at $15 per unit. Monthly fixed costs are $5 000 and variable costs are $8 per unit. Calculate total profit.
$3 400
Total Revenue = 1 200 x $15 =$18 000
Total Costs = $5 000 + (1 200 x $8) = $14 600
Profit = $18 000 - $14 600 = $3 400
Two partners share profits in a 3:2 ratio. If total partnership profit is $60 000. Calculate Partner A's share (3 parts).
$36 000
Total ratio parts = 3 + 2 = 5
Partner A's share = (3/5) x $60 000= $36 000
Total industry sales in a market equal $2 000 000. Firm X records annual sales of $400 000. Calculate Firm X's market share percentage.
20%
Market share = ($400 000/$2 000 000) x 100% = 20%