IGCSE Term 1 Business Studies Assessment

For each question, choose the correct answer by writing “T” (True) or “F” (False).

1. Needs are unlimited and wants are limited.

2. Basic need includes water, food, clothing, housing and transport.

3. Land and labour are called factors of production.

4. The use of limited resources to satisfy needs and unlimited wants is the problem of scarcity.

5. Division of labour refers to breaking down the production process into stages so that one worker can
work in all the stages conveniently.

6. Businesses can add value to their products or services by branding and financing.

7. A country’s economy is made up of the primary, secondary and tertiary sectors.

8. Manufacturing is an important activity within the primary sector.

9. The tertiary sector is service-oriented.

10. Developed countries normally have a sizeable primary sector.

11. The public sector is owned and controlled by the government.

12. Some entrepreneurs are indecisive and must consult with others constantly.

13. A business plan can be used to persuade bankers and investors to finance the business.

14. Governments offer many assistance packages to multi-national corporations and big businesses.

15. The number of employees cannot be used to measure the size of a business.

16. Protection from the risk of takeover (survival) is the reason why businesses opt for growth.

17. Buying out similar firms is a way of business growth known as vertical integration.

18. The secondary sector stemming from oil palm plantation is the promotion of beta carotene oil.

19. Cash flow is never a cause of business failure.

20. Sole traders and partnerships are popular due to limited liability.

21. KLSE-listed companies are not allowed to raise funds through the sale of shares.

22. The initial cost of buying into a franchise is usually very low.

23. CSR is a business objective that has become more prominent in recent years.
24. Besides ethical, environmental and social concerns, CSR also incorporates popular culture.

25. SMART objectives are usually not very specific though realistic.

26. When a business is experiencing high growth in sales, the focus should be survival.

27. Shareholders, managers and employees are external stakeholders / influencers.

28. The services provided by government departments are usually excluded from poor people.

29. Maslow’s hierarchy of needs is a pyramid that puts financial needs at the very top.

30. Herzberg is a pioneer of Scientific Management.

31. If the pay is high and the environment is comfortable, employees will be motivated even the work is
less than interesting.

32. Motivated employees can sometimes show high rate of absenteeism and labour turnover.

33. When we pay production workers by piece-rate, they will be motivated to produce more so that they
get more money.

34. Delegation is a well-practiced financial method to increase motivation.

35. Commission is a financial reward that can be applied to all of the functional departments of a business
including production, administration, HR, R&D and IT.

36. Businesses usually give out year-end bonus even though performance targets are not achieved.

37. Job rotation and job enlargement cannot motivate workers.

38. The highest-ranking personnel in the hierarchy of an organisation chart is usually the Director.

39. A flat organisational structure has many layers and must go through delayering.

40. A centralised decision model is in effect when the HQ allows lower-level managers to make decisions.

41. A laissez-faire leader will likely favour centralised decision making for ease and convenience.

42. Managerial team do not get involved in setting objectives and motivating employees.

43. Management control is about setting goals and does not involve the checking of the actual working of
the plan.

44. Trade unions are formed to provide recreational services to workers.

45. Usually prospective job applicants must go through the interview phase before getting a job offer.

46. Job advertisements can only be seen from websites so online connection is vital to job search.

47. Short-listed job candidates are those who will not be considered further for a job offer.
48. The position of Research Assistant does not require very high GPA but the applicants must be outgoing.

49. To be considered for the position of Marketing Supervisor, a job applicant must know how to follow
orders but does not need leadership quality.

50. Employee training is only possible within the business premise.