SG Business Management
1.1 - What do businesses do?
Credit
KU DM
Business Sector
1
Which sector of industry does Ikea the Swedish Furniture chain operate in?
1
0
1
0
Business Type
2
Suggest a suitable type of business organisation that an entrepreneur could choose to
set up. Justify your choice.
0
2
3
Jock McDonald owns an organic ice-cream manufacturing factory. What type of business
organisation is this? Describe 2 features of this type of business organisation.
3
0
3
2
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 1 of 57
SG Business Management
1.1 - What do businesses do?
Foundation
KU DM
Business Markets
1
Suggest one reason why a local tradesman gets lots of business from the local
community.
0
1
2
Give one example of a buyer and one example of a seller.
2
0
3
A market is a place where buyers and sellers come together. From the list below, which
one cannot be described as a market? a) A car boot sale b) A job centre c) The internet
d) An advertising board
1
0
3
1
3
0
5
0
6
Name the following type of organisation: a It exists to support those in need. b It
provides a service for the community or nation as a whole. c It tries to have greater
income than expenses.
Say whether the following businesses belong to the PUBLIC SECTOR, the PRIVATE
SECTOR or the VOLUNTARY SECTOR. (a) Marks and Spencer PLC, (b) Comic Relief,
(c ) Oxfam, (d) NHS Hospital, (e) J Brown, Sole Trader.
Suggest 2 ways Oxfam could raise money for their work.
0
2
7
Give one advantage of forming a partnership.
1
0
8
What is a charity?
1
0
9
Many of the people working for charities are voluntary workers. What does this mean?
1
0
10
Give 3 advantages of being your own boss.
3
0
11
Name 2 public sector services.
2
0
16
2
Business Type
4
5
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 2 of 57
SG Business Management
1.1 - What do businesses do?
Foundation
KU DM
Goods and Services
12
Everyone has needs and wants. Which of the following items are needs and which ones
are wants? House; Bicycle; Food; Clothes; CD Player and Washing Machine.
4
0
13
Which of the following items are goods and which ones are services? Can of coke,
dentist, video recorder, train journey.
4
0
14
Give one example of a product a company could sell and one example of a service they
could provide.
2
0
10
0
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 3 of 57
SG Business Management
1.1 - What do businesses do?
General
KU DM
Business Sector
1
Identify a primary, secondary and tertiary business.
3
0
2
Name one way a tertiary business depends on a secondary business.
1
0
3
Apart from the service sector, name and describe 2 other sectors of industry.
4
0
8
0
Business Type
4
Identify one difference between a library and a Public Limited Company.
0
1
5
Give 3 features of a Private Limited Company.
3
0
6
Identify one advantage and one disadvantage of a partnership.
2
0
7
Explain what is meant by a public sector organisation by describing who owns it, how it is
financed and who runs it.
3
0
8
1
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 4 of 57
SG Business Management
1.2 - Why do businesses exist?
Credit
KU DM
Business Aims
1
If an organisation's aim is to be environmentally friendly. What steps can they take to
ensure that it meets these objectives?
0
3
2
Other than selling products throughout the world, suggest 3 aims for a large organisation.
0
3
0
6
Social Costs
3
Describe the social costs and benefits to an area from the expansion of existing factories.
4
0
4
What are the possible effects of "environmentally friendly" behaviour on company
profits?
2
0
5
Describe the possible costs and benefits to the surrounding area when a large
organisation opens a new store.
2
0
6
Give one cost and one benefit to an organisation when using local raw materials.
2
0
7
What benefits can a large manufacturing organisation bring to a local economy?
0
2
10
2
Stakeholders
8
Describe the meaning of the term stakeholder.
2
0
9
Describe the conflicting goals that each of the following groups of stakeholders may
have. (a) Employees and Managers, (b) Company Directors and Shareholders.
0
4
2
4
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 5 of 57
SG Business Management
1.2 - Why do businesses exist?
Foundation
KU DM
Business Aims
1
Identify one aim of a public sector business and one aim of a private sector business.
2
0
2
Give 2 objectives of a charity.
2
0
3
Identify 2 aims of a public sector organisation.
2
0
6
0
0
1
0
1
Social Costs
4
Council employees complain about the amount of paper thrown away. How can you
solve this problem?
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 6 of 57
SG Business Management
1.2 - Why do businesses exist?
General
KU DM
Business Aims
1
Identify one aim which a library and a Public Ltd Company may have in common.
1
0
2
Why might the Local Council decide to keep a library open despite rising costs.
0
2
3
Diversification is one aim for a business, suggest 2 others
2
0
4
Suggest 2 suitable aims for a Local Council.
0
2
5
Explain the term entrepreneur.
1
0
6
Suggest an aim that would be suitable for the NHS (National Health Service).
0
1
7
Give one reason why it is important for organisations to have aims.
1
0
8
Explain the term entrepreneur.
1
0
9
Identify 3 skills or qualities that an entrepreneur might have.
3
0
9
5
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 7 of 57
SG Business Management
1.2 - Why do businesses exist?
General
KU DM
Stakeholders
10
Identify a stakeholder in a Local Council and describe how they can influence this
organisation.
1
1
11
Identify a stakeholder in a Private Limited Company and describe how they can
influence this organisation.
1
1
12
Identify 2 stakeholders in Motorola the mobile phone company.
2
0
13
Suggest a reason why a stakeholder of a mobile phone company should be concerned
about a sharp fall in demand for its product.
0
1
14
Name 2 stakeholders who may be interested in an organisations financial information.
2
0
15
Identify 2 stakeholders of an organisation and explain why each one would have an
interest in the company.
2
0
8
3
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 8 of 57
SG Business Management
1.3 - How are businesses structured?
Credit
KU DM
Business Structure
1
Suggest and describe an alternative structure to a hierarchical one.
0
2
2
What effects will changing from a hierarchical structure have on the chain of command
and spans of control.
4
0
3
When relocating a large production organisation from Japan to China some staff will
change to service roles. Explain what this means.
1
0
5
2
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 9 of 57
SG Business Management
1.3 - How are businesses structured?
Foundation
KU DM
Business Structure
2
Who would a Finance Manager issue orders to?
1
0
3
Who is in day charge of an organisation?
1
0
1
Name 2 functional areas of a business.
2
0
4
Suggest 2 ways to make an organisation chart helpful to new employees.
0
2
5
Finance and Operations are two of the main functional areas in every business. Name
two other functional areas of business
2
0
6
From the list below name the functional departments of a business these activities would
be carried out in. (a) Dealing with recruitment in the company, (b) Promoting the
product, (c ) Making the product,(d) Keeping control of the money in the company.
4
0
10
2
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 10 of 57
SG Business Management
1.3 - How are businesses structured?
General
KU DM
Business Structure
1
Suggest 2 duties which could be carried out by a marketing manager.
2
0
2
Suggest an advantage of organisation charts for employees and visitors.
2
0
3
Give one example of a line relationship.
1
0
4
Give one disadvantage created by a long chain of command.
1
0
5
Name and describe the 2 main business structures.
2
0
6
Give one advantage and one disadvantage of a flat structured business.
2
0
10
0
East Dunbartonshire Council - D Mitchell & T Nisbet
Page 11 of 57