L3M1

'Trade within major trading blocs tends to expand, whereas this is not necessarily the case regarding trade between major trading blocs'. True or false?A . TrueB . FalseView AnswerAnswer: A Explanation: This is true. The purpose of creating or entering into a trading bloc is to increase the volumes of...

Which one of the following is a commercial document issued by a seller seeking payment for goods or services?A . InvoiceB . Supplier quotationC . Pre-qualification questionnaireD . Delivery noteView AnswerAnswer: A Explanation: This should be straightforward. If unclear, check your notes / textbook.

A market situation where there is only one buyer in the marketplace is called:A . Perfect competitionB . OligopolyC . MonopolyD . MonopsonyView AnswerAnswer: D Explanation: A market with only one buyer is called a 'monopsony'. There may be other questions in this test about the other terms shown, so...

Which of the following could be described as an organisation?A . A local authority / local governmentB . A self-employed tutor of online educationC . The University of Phoenix, ArizonaD . A business such as Ethiopian AirlinesView AnswerAnswer: A, C, D Explanation: All except the self-employed tutor have a social...

The abbreviation ‘SME’ stands for …A . Small and medium-sized entityB . Small and medium-sized enterpriseC . Supply management enterpriseD . Single-minded entrepreneurView AnswerAnswer: C Explanation: This is the standard definition, widely used, and given in your textbook.

A 'mixed economy' is:A . One which is confusedB . One in which private and public sectors operate togetherC . A market economyD . A centrally-planned economyView AnswerAnswer: B Explanation: It is an economy in which the public and private sectors work together. This is now the norm in most...

On a diagram of the Product Life Cycle, the x-axis shows:A . GrowthB . TimeC . DeclineD . ProfitView AnswerAnswer: B Explanation: The x-axis shows time. For some products, it may represent a year; for others, a century. The other answers given could all be shown on the y-axis of...

The letters 'NFP' mean...A . Newly focused (on) profitB . Not for procurementC . Non-funded purchaseD . Not-for-profitView AnswerAnswer: D Explanation: The answer is 'not-for-profit', meaning 'third sector' (charities, co-operatives, NGOs, etc). This is not the same as 'public sector'. You should be clear on this terminology.

Which of the following are ways of classifying organisations? (select all that apply)A . ActivityB . SizeC . Primary objectiveD . Structure and ownershipView AnswerAnswer: A, B, C, D Explanation: All of these are ways of classifying organisations. Examples: Retailers, SMEs, limited companies, etc

‘The optimum combination of whole life costs and quality’ is one definition of:A . Quality circlesB . Life cycle costingC . Contractual agreement (in English law)D . Value for moneyView AnswerAnswer: D Explanation: An earlier widely-used definition of value for money as the right combination of price and quality has...