Business week (Y12 & 13)

Which of the following is an advantage of a sole trader

• Easy to start up

• The owner can keep the profits of successful management without having to share them with other owners

• Decisions do not require the approval of a co-owner boss, or other higher ups

• All of the above

An equilibrium price will NOT change unless?

• Both demand & supply change

• Only demand changes

• Either demand & supply change (or both)

• Only supply changes

The use of money in an economy solves which of the following problems

• The condition of opportunity cost

• Scarcity

• An efficient means of economic exchange

• Trade barriers

Which of these are disadvantages of franchising?

• You lose the ability to keep brand quality

• Different franchise owners may have different views & standards

• Highly likely to experience diseconomies of scale

• It’s cheap to expand

Which of the following is NOT a source of internal finance?

• Retained profit

• Issue of shares

• Sale of existing assets

• All are sources of internal finance

Billy has just saved enough money to buy the car he’s dreamed of. He puts down $5,000 in cash and finances the rest through his local credit union. George’s car is

• A capital good

• A renewable resource

• A consumer good

• A production cost

Which school of thought emphasizes the role of monetary incentives to motivate workers

• Human relations school

• Scientific management

• Motivational needs theory

• Process theory

A first is forecasted to have a negative closing bank balance in three months time. Which of the following measures would help to reduce the problem

• Sell more goods on 4 months credit

• Produce more goods

• Ask customers to pay in cash and not sell goods on credit

• Ask suppliers if the firm can pay for goods delivered in cash

If a country exports more goods than it imports, it has a:

• • Trade surplus

• • Trade deficit

• • Balanced trade

• Comparative advantage

Expansionary fiscal policy is characterized by:

• • Increased government spending and decreased taxes

• • Increased government spending and increased taxes

• • Decreased government spending and decreased taxes

• • Decreased government spending and increased taxes