Revision
Understanding Business
New Higher
Musselburgh Grammar
1
Name the 4 sectors of
industry
Primary
Secondary
Tertiary
Quaternary
Musselburgh Grammar
2
Give one reason why
secondary has declined
over the last century
Goods imported
Cheap labour abroad
Musselburgh Grammar
3
Who owns, controls and
funds a ‘Public Sector’
organisation
Government
Board of Trustees
Tax
Musselburgh Grammar
4
Who owns, controls and
funds a Public Limited
Company
Shareholders
Board of Directors
Shares, Bank loans,
Debentures
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5
Give one reason why a
sole trader may become
a
LTD
Get limited
liability/ security
Expand/growth
Profit
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6
Give 2 objectives of
Tesco plc
Profit Maximisation
Increase market share
Expand/Grow
Socially responsible
Survival
Musselburgh Grammar
7
List 4 methods of
growth
Merger, Demerger, organic,
diversification, takeover,
backward and forward
vertical integration and
horizontal
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8
List the External
Factors
Political
Economic
Social
Technological
Environmental
Competition
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9
Describe how Political
influences has affected
Phones 4 U
Increase in tax
Legislation e.g. Min
wage
Musselburgh Grammar
10
List three internal
factors
Staff
Management
Finance
Technology
Resources
Corporate Culture
Musselburgh Grammar
11
Which stakeholder can
influence a business by
voting at the AGM
Shareholder
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12
What conflict can owners
and employees have?
Owners want profit,
staff want higher pay
Musselburgh Grammar
13
Why is it important to
have interdependence?
People need to work
together to achieve
objectives
Musselburgh Grammar
14
List 4 ways a business
can ‘group’ its activities
Product
Customers
Location
Function
Musselburgh Grammar
15
Give an advantage of
having a flat structure
Communication is
easier/efficient
Musselburgh Grammar
16
Give one advantage of
a tall structure
Promotion
Specialisation
Larger
organisations
Musselburgh Grammar
17
List 2 other structures
instead of tall and flat
Centralised
Decentralised
Matrix
Entrepreneurial
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18
Describe the term ‘Span
of Control’
Its how wide the structure is
with the number of employees
being controlled by a manager
Musselburgh Grammar
19
List 3 types of
decisions
Strategic
Tactical
Operational
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20
Give one structured
decision making
model
PODAGSCIE
SWOT analysis
PESTEC
brainstorming
Musselburgh Grammar
21
Identify an advantage
of a structured
decision model
Takes time to review
solutions
Structured and go through
the process
Musselburgh Grammar
22
What makes a good
manager?
Experience
Resources
Musselburgh Grammar
23
How can internal
factors influence a
decision?
Need the
finance to
buy new
resources
Musselburgh Grammar
24
Why is it important
to be socially
responsible?
Public image
Reduce
waste
Reduce costs
Musselburgh Grammar