Higher Business Management – Understanding Business Practice Test

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• What is a potential disadvantage of a de-merger?
• Which statement describes a disadvantage of SWOT analysis?
• Which is an advantage of delayering?
• What does interdependence among stakeholders mean?
• What do customers primarily want from a business?
• Privatised companies are public sector organisations sold to the private sector.
• Which term describes a group formed to produce goods and services to satisfy consumer wants?
• A strong pound enables what effect on the prices of UK-made products?
• What is the general term for groups of people who combine resources to achieve a common goal?
• Political factors include which of the following?
• Which of the following describes tactical decision-making?
• What is an aim of local government organisations?
• Which statement reflects a benefit of public limited companies regarding banking?
• One advantage of conglomerate integration is that the buyer acquires the other company's assets and resources. Which option describes this benefit?
• In the supplier versus owners/managers dynamic, which statement reflects suppliers' pricing preference?
• What is a direct effect when suppliers change account terms on a business?
• Which stakeholder group seeks job security and a possible pay rise, and may adjust their effort or take industrial action?
• Which statement describes a matrix structure in terms of reporting lines?
• Which is a way the Bank of England can influence the value of the pound?
• Which of the following best defines an opportunity in SWOT analysis?
• Which statement best describes managers?
• Which of the following is an advantage of a flat structure?
• Who carries out decision making for local government organisations?
• Which factor can be controlled by organisations?
• GDP is best described as?
• Which of the following is a disadvantage of technology grouping?
• Which statement describes a method of internal growth that targets adding new products or services to meet different market segments?
• What is a key risk of relying on cloud computing?
• Which statement about flexible working arrangements is true?
• Monetary policy concerns the ways the government controls the money supply in the economy, often achieved by varying interest rates.
• Backward vertical integration is when a business takes over an earlier sector such as a supplier. Which example illustrates backward vertical integration?
• Providing a quality service involves which of the following?
• Why do owners/managers need customers?
• Which technology is primarily used to improve the accuracy of calculations through formulae?
• Which statement best describes an advantage of outsourcing?
• In a tall structure, the span of control is typically narrow. Which statement is true?
• Which statement about infrastructure spending and employment is correct?
• Which of the following is a disadvantage for the franchiser?
• Which statement about competition policy is NOT true?
• Outlets and departments of a charity are often run by
• Which option is an example of a human resources factor affecting decision-making?
• Which of the following is a benefit of using apps for a business?
• Which of the following is an example of a technological factor affecting an organisation?
• Which statement describes a typical advantage of a matrix structure?
• What is a likely effect of increasing VAT on consumer purchases?
• Which statement describes market share?
• Which is a potential disadvantage of takeovers?
• Which of the following is an example of a nationalised company?
• What is a disadvantage of product/service grouping?
• Raising interest rates generally aims to
• What is the primary purpose of a mission statement?
• What does the chain of command describe?
• Which structure is typically used by small organisations to enable quick decisions?
• Which statement best describes a tall structure?
• A disadvantage of charities is that they may
• What staffing implication arises when more women have professional careers?
• How are local government organisations financed?
• Charities are typically
• Which statement reflects a growth benefit?
• Which statement describes a disadvantage of centralised management?
• A hostile takeover typically occurs when a smaller, struggling business is exploited by a larger buyer. Which option best reflects this idea?
• In a flat structure, the span of control is wide. What is a common consequence?
• Which statement best describes the primary role of local government organisations?
• Which of the following is a disadvantage of outsourcing?
• One advantage of charities is that they are exempt from paying some taxes such as
• Which of the following describes operational decision-making?
• Which statement best describes what exchange rates determine?
• From the perspective of customers versus owners/managers, which statement best captures their contrasting aims?
• Central government organisations are usually national services that would be difficult to rely on the private sector to provide.
• Which term describes the owner of each individual branch of a franchise?
• Which statement best describes the aim of competition policy?
• Which of the following is a potential drawback of decentralised management related to corporate identity?
• What is an advantage for the franchiser?
• Nationalised companies are private sector businesses bought in part or in full by the government.
• Which statement highlights a benefit of decentralised management for subordinates?
• In human resources, what can managers influence regarding decisions?
• Which of the following is an example of a strength?
• Location grouping describes grouping into geographical divisions serving particular locations. Which statement describes it?
• Which statement describes a potential negative impact of infrastructure spending?
• Product/service grouping is best described as grouping into divisions dealing with different products or services. Which option reflects this?
• Which type of decision-making is designed to meet the overall purpose and direction of the organisation?
• Which of the following is an advantage of backward vertical integration?
• A strong pound is associated with which of the following?
• Quotas are...
• Which statement describes functional grouping?
• Which statement about mergers is true?
• In a centralised organization, where are important decisions typically made?
• Which sector is associated with information and knowledge-based support services such as ICT, consultancy and research and development?
• Which sector includes charities and voluntary organisations?
• What does satisficing mean in corporate objectives?
• What is a likely effect of a rise in interest rates on consumer behavior?
• Which action exemplifies the coordinating role of a manager?
• Voluntary organisations typically aim to
• Social enterprises are described as
• Which factor helps outsourced services achieve lower unit costs?
• Economic factors are defined as?
• If customers switch to competitors or share negative word of mouth, what is the likely impact?
• Which statement describes a factor that can restrict decisions due to policy?
• If a business fails to meet customer expectations, what is a likely customer reaction?
• Which sector consists of organisations set up to provide goods or services to benefit others, such as charities and voluntary organisations?
• Which of the following statements about private limited companies is true?
• Which statement correctly identifies the franchiser?
• What is a financial drawback of investing in renewable energy to reduce carbon footprints?
• Which statement about disclosure requirements for private limited companies compared with public limited companies is true?
• Which statement best describes owners/shareholders?
• Groups of people who combine their efforts and use resources for a particular purpose
• Which of the following is an example of a merger?
• Downsizing involves what?
• Asset stripping can lead to which of the following outcomes?
• Which statement best describes survival as a business objective?
• Which of the following is listed as an example of a franchise?
• Which statement correctly matches a type of integration with its characteristic?
• The human resource used to produce the good or service
• Asset stripping involves
• Which best describes social factors in business?
• Which statement best describes the typical tone of mergers compared to takeovers?
• The term for money invested into production through capital assets is
• Which statement describes a disadvantage of functional grouping?
• Which of the following is an advantage of a tall organizational structure?
• Which statement describes cartels?
• Which statement is a disadvantage of multinationals related to cultural differences?
• Which of the following is a disadvantage of mergers?
• Which is an advantage of a de-merger?
• Which is an example of how government legislation can positively influence a business reputation?
• Which group is an internal stakeholder?
• If organisations encourage recycling, what is a potential reputational outcome?
• What is a potential long-term financial benefit of reducing carbon footprints?
• Which statement is a disadvantage for franchisers?
• Sales maximisation is a goal that applies exclusively to the private sector.
• Which level of decision-making is most associated with reacting to situations as they arise?
• Which of the following is an advantage of a private limited company?
• Which statement about Public Limited Companies is true?
• What are economies of scale?
• Outsourcing involves moving certain activities to another organization. What is the typical effect on the outsourcing organization's core activities?
• What is market share?
• Which statement is a disadvantage of a strong corporate culture?
• Which of the following is an example of a privatised company?
• Conglomerate integration, also known as diversifying, occurs when two businesses in different markets join through a takeover or merger. Which statement reflects this?
• Which option best demonstrates the use of databases to support decision making by speeding up information retrieval?
• Which statement describes a disadvantage of location grouping?
• An advantage of conglomerate integration is that it can overcome seasonal fluctuations. Which statement best supports this?
• Which method would you use to gather feedback from external customers about a decision's effectiveness?
• Which statement best describes the impact of fashion trends on research and development?
• Which statement best describes functional grouping?
• What is a likely effect of lowering VAT on consumer purchases?
• Which statement best describes the effect of a reduction in interest rates on consumer saving and borrowing?
• What is a likely implication of an ageing population for markets?
• What is corporate culture?
• Which documents are required for a private limited company?
• SWOT analysis is best described as
• An aim of central government organisations is to provide a quality service.
• Co-operatives are
• Which is a disadvantage of centralised management under functional grouping?
• Which factor type is defined as arising from within the organisation and is controllable by management?
• Virgin is most closely associated with which grouping?
• Which is a disadvantage of horizontal integration?
• What is a financial benefit of cloud computing as mentioned?
• Which of the following is a qualitative way to assess how a decision is performing?
• Which of the following is an advantage of technology grouping?
• What is a plausible benefit of maintaining a social media presence?
• Which statement describes a finance factor affecting decision-making?
• Which policy would increase a business's costs related to environmental requirements?
• How is hierarchy defined in an organization?
• Which of the following is a downside of franchising for the franchisee?
• If the government reduces income tax, what is a likely effect?
• Decentralised management is defined as what?
• Outsourcing is also known as contracting out. Which statement best defines outsourcing?
• Which of the following is an advantage of forward vertical integration?
• External factors are best described as?
• Which is an advantage of a strong corporate culture?
• Which factor related to employees can affect performance?
• Which of the following is a disadvantage of a public limited company?
• Which statement best describes the relationship between managers and employees?
• What is a potential cost when targeting the ageing population?
• Which statement correctly defines quotas and tariffs?
• During a recovery, what tends to happen to sales?
• What is a drawback of recycling certain materials such as waste paper and printer cartridges?
• Which of the following is an example of conglomerate integration?
• What is a potential drawback of flexible working arrangements?
• Which of the following is an external stakeholder?
• What is horizontal integration?
• Internal/Organic growth is growth that occurs when a business grows on its own without involvement with other organisations.
• Which of the following statements is NOT an effect of a new competitor entering the market?
• What characterizes a merger?
• Which of the following is a disadvantage of a private limited company?
• CSR can help a business attract high quality staff who believe in its mission.
• Which statement describes the effect of a weak pound?
• Which statement best defines a multinational?
• Disadvantages of downsizing?
• Which statement best describes a threat in SWOT analysis?
• Forward vertical integration involves a business taking over or merging with a company in a later sector of the industry, such as a distributor or customer. Which example illustrates forward vertical integration?
• Which term describes the human resource used in production?
• In a de-merger, which description of the components is accurate?
• Which statement describes an advantage of using SWOT analysis?
• Delayering refers to removing one or more levels of management from a tall structure to make it flatter.
• Charities are often set up by a trust controlled by which body?
• Which is a valid way to assess the effectiveness of a decision?
• What is a key advantage of horizontal integration?
• Introducing e-commerce is an internal growth method because it enables trading around the clock to a global market.
• Which statement best describes limited liability?
• Which of the following are internal stakeholders?
• What is an advantage of functional grouping?
• Downsizing can have which outcome?
• Items essential for survival are called
• What does technology grouping involve?
• Which of the following is a disadvantage of conglomerate integration?
• Internal factors are defined as factors that arise from inside the organisation and can be controlled by organisations. Which of the following best expresses this definition?
• What is a likely impact of changing fashion trends on a business?
• Which is an advantage of decentralised management?
• What is a common challenge for employees in a matrix structure?
• Which statement describes a potential disadvantage of both forward and backward vertical integration?
• What is a dividend?
• Which statement best captures why owners need employees?
• Which statement accurately describes a de-merger?
• The quaternary sector is primarily concerned with which of the following?
• Which characteristic describes a tall organizational structure?
• In SWOT analysis, which element is external?
• Growth is best described as
• Which statement best describes decentralised management’s impact on local market responsiveness?
• Which of the following is an example of customer grouping?
• Which statement defines a franchise?
• What is a function of competition policy regarding mergers?
• What is an economies of scale benefit often cited in integration?
• Who is the franchisee in a franchise arrangement?
• Which of the following is an effect of competition when a new store opens next to an existing business?
• Intangible things that are done for us
• What is a concern regarding storing information on the cloud?
• Customer satisfaction aims to
• Which branding risk is associated with a takeover or merger?
• Which term best fits the definition: An individual or group who has an interest in the success of an organisation?
• Which statement best describes the governance of Public Limited Companies?
• What is the base rate?
• In a recession, which statement is true?
• In the context of employees vs owners/managers, which statement best reflects employee interests?
• Which sector consists of businesses that aim to maximise profits and are owned by private individuals?
• Which scenario best indicates decentralised management is appropriate?
• Charities are set up to
• Man-made resources used to make the good or service
• During a boom, which condition is typically observed?
• Which of the following is an example of a takeover?
• Which policy would most likely raise wage costs for a business?
• What best defines a subsidiary?
• What do suppliers typically want in terms of payment and stability of business?
• What is a subsidiary?
• Which is an advantage of centralised management?
• Which of the following is a benefit of a mission statement?
• Which statement about functional grouping is true?
• Which statement about technology grouping is true?
• Organisations whose purpose is to satisfy consumers' wants by producing goods and services
• Which statement is NOT an effect of competition entering the market?
• CSR is defined as
• What is the stock exchange?
• Which of the following is an example of a weakness?
• Divestment is best described as
• Disadvantage of location grouping?
• Natural resources used to make a good or service
• How do charities raise finance?
• What is an advantage of product/service grouping?
• Tariffs are...
• Which is a potential disadvantage of delayering?
• Which statement is true about public limited companies?
• Which of the following is an example of divestment mentioned?
• Which of the following is a disadvantage of a tall structure?
• Which statement best describes a merger advantage?
• Which is a disadvantage of a matrix structure?
• What is a consequence of an evolving work-life balance for businesses?
• Which pairing best describes mutual dependency between owners/managers and suppliers?
• Opening new branches to reach new markets is a method of internal growth.
• Who typically manages a private limited company?
• When finance is tight, which action may an organisation take?
• Which statement describes managerial objectives?
• Which structure best suits smaller organisations?
• Tangible items that we own after purchase are called
• Which statement describes an entrepreneurial structure?
• What do customers expect from a business?
• Which is a disadvantage of an entrepreneurial structure?
• Which statement describes centralized management?
• Which sector comprises government-owned organisations and agencies that aim to provide a service to society?
• Which of the following is an advantage of conglomerate integration?
• What does maximising profits refer to?
• Which statement describes one role of government in relation to owners/managers?
• What is a key advantage and limitation of 4G for a business?
• Which sector provides services rather than goods?
• Increasing production capacity allows the business to make more products themselves.
• Which statement illustrates how technology can reduce travel requirements for decision meetings?
• An increase in the minimum wage would likely result in what for many organisations?
• Which sector consists of businesses involved in the extraction and exploitation of natural resources?
• In central government organisations, who controls policy and who controls individual departments?
• Profit from trading arms of charities is used for
• A flat structure is best described by which statement?
• Which statement is NOT part of the 'Other factors affecting decision-making' category?
• If corporation tax is lowered, what happens to a business's profits?
• One of the equal parts into which a business' capital is divided, entitling the holder to a proportion of the profits
• Which statement best defines increasing market share?
• Which term describes intangible services such as banking or haircuts?
• Fiscal policy concerns the tax rates and public spending. Which policy does this statement describe?
• Which example illustrates a potential benefit of favourable weather?
• Which of the following is not typically an objective of the public sector?
• Which of the following is an advantage of franchising for the franchisee?
• Why do owners/managers need suppliers?
• Which statement about the use of email in business is incorrect?
• What is an objective?
• Which statement accurately describes providing free WiFi in a business?
• Which of the following is a disadvantage of customer grouping?
• Which concept is described as aiming for a satisfactory result rather than the best possible outcome?
• What is an advantage of an entrepreneurial structure?
• Which of the following is an advantage of multinationals?
• What is a risk associated with adverse weather for a business?
• Which is an advantage of takeovers?
• What is customer grouping?
• Delayering results in which outcome?
• Which of the following is an external stakeholder?
• Which of the following describes strategic decision-making?
• Which action may organisations take to address lack of finance besides downsizing?
• Which of the following lists correctly names the main functional areas of a typical organisation?
• Which statement describes economies of scale?
• Which sector turns natural resources into goods through manufacturing and construction?
• Which of the following is an advantage of customer grouping?
• Which of the following describes a potential downside of downsizing?
• Which of the following is an example of a franchise?
• Which of the following best describes vertical integration?
• Which is a consequence of a strong pound?
• Which statement best describes a positive impact of government infrastructure spending on local businesses?
• What does survival mean in business terms?
• Which statement best captures sales maximisation?
• Which of the following is a disadvantage of a flat structure?
• What defines a takeover in business?
• Luxury items not essential for survival are called