Select the radio button corresponding to your choice of answer for each question, and then click on ‘Submit Answers’ to find out how many you answered correctly.

1			Which of the following is not typically used as a basis for classifying business units?
			A)	Size.
			B)	Market segment.
			C)	Legal form.
			D)	Industry sector.
2			Which of the follow is a key distinguishing feature of a sole trader?
			A)	Size
			B)	Market segment
			C)	Legal form
			D)	Ownership
3			In the UK, sole traders account for:
			A)	the majority of business units
			B)	the majority of business turnover
			C)	the majority of GDP
			D)	the majority of business units where economies of scale are important
4			In general, sole traders are at a competitive advantage compared to other types of organisation where:
			A)	there are few economies of scale
			B)	economies of scale are important
			C)	barriers to market entry are high
			D)	markets are stable
5			The most likely reason for the timing of a company going into administration is:
			A)	it has become unprofitable
			B)	there has been a sudden fall in sales
			C)	there is little prospect of it being able to satisfy creditors’ claims
			D)	the value of its shares has fallen sharply
6			Which of the following is a key distinguishing feature of a limited company?
			A)	Turnover above £50,000 pa
			B)	Turnover above £100,000 pa
			C)	Separation of the business as a legal entity from that of its owners
			D)	Must provide employees with a written contract of employment
7			Nationalised industries have typically been sold to the private sector by any of the following methods, except
			A)	purchase of share capital by government agency, eg Regional Development Agency
			B)	offer of shares to the public
			C)	trade sale to another company
			D)	management buyou
8			Managers in the public and charity sectors are likely to be associated with more of all of the following EXCEPT which?
			A)	managerial discretion
			B)	external benefits
			C)	qualitative objectives
			D)	constraints
9			Which of the following is NOT true of franchisees?
			A)	they are always small owner managed businesses
			B)	they generally agree to charge prices in accordance with the franchisor’s guidelines
			C)	they generally enter an agreement with a franchisor for a fixed period
			D)	they pay a fee to the franchisor based on sales and/or profits
10			Which of the following is LEAST likely to take the form of a Non-Departmental Public Body (NDPB)?
			A)	Housing Association
			B)	Local tourism promotion organisation
			C)	Police force
			D)	Regional Development Agency