N5 Understanding Business

Land is one of the factors of production. Which statement below best describes this term?

• Man-made resources

• Resources being combined

• The workforce

• The world’s natural resources

Which of the following organisations belong to the third sector of the economy?

• Sole traders

• Social Enterprises

• Public Sector Organisations

• Charities

Which of the following are examples of goods?

• T-Shirt

• Haircut

• Television

• Supermarket Home Delivery

Which statement best describes what happens at Stage X?

• Consumers use their income to satisfy their wants

• Businesses find out what customers want

• Businesses produce goods and services as required by society

• Wealth is created by adding value at each stage of production

What does the term ‘consumption’ mean?

• Selling goods and services

• Using goods and services

• Manufacturing goods and services

• Extracting natural resources

What is the purpose of a customer care strategy?

(Select all that apply.)

• To inform customers how complaints will be handled.

• To let employees know about types of customers.

• To inform customers about the quality of service to be provided.

• To inform customers about other customers in the business.

Why is customer satisfaction important to a business?

(Select all that apply.)

• To gain a good reputation.

• To keep prices low.

• To ensure it maximises sales.

• To use cheap raw materials.

What is an after-sales service?

• Customers buying more goods.

• Providing advice and support to customers once a product is bought

• Customers paying for a service before they buy a good.

• Keeping customers happy when buying.

What is the main purpose of a customer complaints procedure?

• To keep customers happy.

• To look good to new employees.

• To handle complaints in the most effective way.

• To increase market share.

Businesses aim to be socially responsible. What does this mean?

• To do things in a way that won’t harm anyone or the environment.

• To make as much profit as possible.

• To have as many customers as possible.

• To employ only people who have been unemployed for longer than one year.