NCEA Level 1 Business Studies Practice Test

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• What is the process of estimating figures for the expected sales or costs in a business called?
• What term is used to describe the total amount earned by a business after costs have been deducted?
• What process involves using a third party to help resolve a disagreement?
• What do we call a period when no productive work is occurring?
• What term is used to describe all cash earned by a business?
• Sales Promotion is aimed specifically at:
• What term describes the situation where shareholders are not personally liable for any debts of the business?
• Which of the following best describes the concept of productivity in a business?
• What is a formal agreement between an employee and employer called?
• What factors can lead to an increase in demand for products or services, potentially causing inflation?
• What term describes a market structure where only a few businesses offer a product or service?
• What term describes the various methods through which communication is conducted?
• Why might a larger business face diseconomies of scale?
• What is the name of the document that predicts cash inflows and outflows for a business?
• How do subsidies generally affect businesses receiving them?
• What is an essential requirement for starting a new business?
• Which economic advantage allows large businesses to afford better technology?
• What does Credit Tightening refer to?
• Which type of communication primarily involves the use of images, photos, and videos?
• What term is used to describe something that is unpleasant to look at?
• Publicity can best be described as:
• What is competition in the context of businesses?
• What term describes the point where a product's sales and costs are equal?
• What can the process of induction help with for new employees?
• What are the costs associated with changing prices called?
• Which of the following is true regarding the entrepreneur’s role in business?
• Which model depicts the interactions between different groups within an economy?
• What is the process of providing workers with training for a completely new job called?
• What term is used to describe the ability of large businesses to operate more efficiently due to their size?
• What is a common cause of cash flow issues for businesses?
• What is a crucial element of organizational culture that helps employees feel included?
• What term describes a specific target that a business sets for itself?
• What term refers to faults or flaws found in a product?
• What are 'Slow Payers'?
• What term is used for actions serious enough to warrant immediate employee dismissal?
• Which document serves as a record of what was discussed during a meeting?
• Which pricing strategy is often utilized for products entering a competitive market?
• What are considered Hazards?
• What do we call a market with multiple businesses offering similar products or services?
• What is the result of an employee's actions leading to their loss of employment called?
• What process does a business undergo to become a formal company?
• What is the term for the small text found in advertisements which often includes important details?
• What is the term for charging different prices to different customers?
• What term describes the stages an economy goes through over time?
• What is the process of creating a unique identity for a product or business called?
• Which term refers to resolving workplace issues through a neutral third party?
• What is the marketing strategy of enticing consumers with special offers called?
• What document provides a summary of income, expenses, and profit or loss for a business?
• What is meant by 'risk bearing economies of scale'?
• Which term describes a situation where production is temporarily halted due to unforeseen issues?
• What term refers to a prolonged period of dry weather?
• What term refers to the regular influx of cash that a business receives?
• What is defined as the amount remaining after expenses have been deducted from income?
• Which of the following is primarily responsible for regulating economic policy in New Zealand?
• Which of the following is NOT typically a result of job enlargement?
• What does 'shrinkage' refer to within a business context?
• Which statement best describes fixed costs?
• What does the term 'labour turnover' refer to?
• Which of the following is NOT a characteristic of a small business?
• What is the primary factor that influences seasonality in businesses?
• Which document formally expresses a candidate's interest in a job position?
• Which of the following costs does not change with the level of output?
• What is one of the main focuses of an aptitude test?
• What is the process called that involves choosing the right applicant for a job vacancy?
• Which term describes the value within a business calculated as assets minus liabilities?
• Which term describes a situation of inactivity in the economy?
• What type of economic activity primarily deals with the production of goods and services?
• What is the Official Cash Rate set by?
• What term describes acting in a manner that adheres to rules or laws?
• What term is used for generating attention for a product or business?
• What is an effect of having large businesses in a market?
• What does a 90 Day Trial typically mean for an employee?
• What is the term for finance that will be used or repaid within the next year?
• What is the term for providing customers with information that is misleading or false?
• What is the essential aim of a cashflow forecast?
• What does the term 'fit for purpose' imply?
• What is the primary purpose of maintenance in a business setting?
• What document outlines the characteristics of the ideal candidate for a job?
• What is the term for a business that creates a product and hopes consumers will buy it?
• Which type of costs would include rent and salaries?
• Which of the following best defines direct competition?
• What does the acronym SMART stand for regarding goal-setting?
• Who is considered a stakeholder in a business?
• What do we call it when an employee fails to report to work without notice?
• To whom does the concept of 'unlimited liability' apply?
• In a financial context, what does the term "debtor" signify?
• What do we call finance sources that originate outside of the business?
• What is a natural hazard?
• In marketing, what is the main purpose of comparative advertising?
• What defines a business owned by only one person?
• Which of the following factors is not related to Consumer Confidence?
• What is a likely result of fraud in a business?
• What term describes the conflict arising from personal differences between individuals?
• Which financial factor can prevent effective communication within a business?
• What does a high level of absenteeism typically indicate within a workforce?
• Which document includes a summary of an individual’s experiences and qualifications?
• What does the term 'quality' refer to in relation to a product or service?
• What does 'Publicity' primarily focus on?
• What is involved in investigating whether a vacancy actually exists?
• What term describes sales generated when customers are already in the local area?
• Which of the following would likely NOT be used as a tactic to improve short-term business performance?
• Which report provides a historical record of cash flows?
• What aspect of advertising might contain essential information about terms and conditions?
• Which document records the actual cash coming into and going out of a business?
• What type of advertising focuses on comparing the features or prices of a product with its competitors?
• What is the amount of cash available to a household for spending after taxes and bills called?
• What term is used for an event that either limits or totally stops the production process?
• What are payments made by a government to businesses to support them called?
• What term describes setting prices high for luxury products to target affluent customers?
• Which term refers to the rate at which inputs are processed into outputs?
• What can be a consequence of a recession for businesses?
• What would likely be assessed in a psychometric test during recruitment?
• Who are considered internal stakeholders in a business?
• What term refers to monitoring the movement of cash in and out of a business?
• What is the term for the exchange value of one currency for another?
• What is the term for a sustained increase in the price of goods and services?
• What is the process of communicating with and persuading the customer called?
• What is the term for a collective decision to stop buying a certain good or service?
• What does malicious damage refer to?
• What differentiates a product in the market, prompting customers to choose it over alternatives?
• Which term best describes the group of potential job candidates?
• What does Business Confidence indicate?
• What are costs that vary directly with the number of products produced called?
• What do you call the total cash amount of a business at the end of a financial period?
• What term describes a decrease in the general level of prices?
• What is the term for the amount of cash a business has at the start of the month?
• Which concept is used to measure the cost of borrowing money?
• What is the most common type of communication that utilizes letters, emails, and reports?
• What are barriers to communication?
• Which type of planning looks at long-term goals and objectives?
• What is referred to as cash used to either start or improve a business?
• What is the income generated by a business from selling its products or services called?
• What term defines a market structure with only two businesses producing a specific product or service?
• Which term describes a valuable item owned by a business?
• What is defined as the governing body of a nation, state, or community?
• What term describes the group of individuals who reside near a business?
• Which term best describes the strategy of temporarily pricing a product below its production cost?
• What is defined as an accident or event that happens in the workplace affecting people and business operations?
• What type of competition focuses on differentiating products based on characteristics other than price?
• What is the name for conflict arising between stakeholders within a business?
• What type of climate lacks extreme temperatures?
• What benefit do larger businesses typically experience?
• How does competition typically affect consumer prices?
• What financial tool provides protection against potential financial loss?
• Which of the following statements about gross misconduct is true?
• What situation occurs when there is little growth in the economy and consumers reduce spending?
• What is the main benefit of using arbitration to resolve conflicts?
• What is the definition of external stakeholders?
• What is the definition of a small business?
• What is used to represent the financial strength of a business in a SWOT analysis?
• Which of the following allows for a single business to control a market?
• Which of the following is NOT a form of communication?
• What signifies a business’s transition from a sole proprietorship to a corporation?
• What is it called when an employee is let go from their job due to misconduct?
• Which of the following is NOT a cause of cash flow issues?
• What does the term 'Bad Debtors' refer to?
• What is a period when the economy is not performing well and consumer spending decreases called?
• Which of the following is a key component of the Marketing Mix?
• What is the process of integrating an employee into the culture of a business called?
• What document outlines the topics to be covered during a meeting?
• What term describes the ability to survive or continue in operation?
• What document describes the duties and responsibilities for a job role?
• Which of the following best defines protocols in a professional environment?
• What economic condition often results in Credit Tightening?
• Which concept explains fluctuating demand patterns experienced by some businesses?
• What term describes the act of spending capital today with the expectation of future profit increase?
• Which of the following is a system for producing and distributing goods and services?
• Which of the following best describes the state of having sufficient cash inflow to support business operations?
• What term best describes the overall approach to achieving corporate objectives over an extended period?
• What phase of the business cycle is characterized by increasing output and sales of goods and services?
• Why is it important to have minutes from a meeting?
• What is a common problem faced by larger businesses?
• What is the term for planning who will move into different roles when people leave a business?
• Which document is provided to applicants for a vacancy to fill in their personal details?
• What type of inflation results from rising costs of production?
• What is the act of misleading consumers into believing something that is not true?
• Short term finance is primarily used for what purpose?
• Which advantage enables larger businesses to conduct better promotional activities?
• What does a psychometric test assess?
• What is NOT typically considered a component of pricing strategies?
• What advantage allows larger businesses to borrow funds more easily and cheaply?
• What does the concept of 'fit for purpose' ensure regarding products?
• What is the process of dividing the market into groups with similar characteristics called?
• What term is used to describe a widespread outbreak of a disease across large regions?
• What term refers to the deliberate act of obtaining funds dishonestly?
• Which type of communication is often characterized by a face-to-face interaction?
• Which term refers to finance sources that come from within the business itself?
• What is the term used to describe a period of rapid economic growth?
• What is the term for taxes paid to the local council to fund services?
• What term refers to how positive consumers feel about spending?
• What pricing strategy involves selling a product for less than its production cost to attract customers?
• What pricing strategy involves setting a low introductory price to attract customers?
• What do we call the rules or processes that must be followed in business operations?
• Which of the following best defines unlimited liability?
• What are demographics in business?
• What is the economic principle that explains how money moves through the economy?
• What does 'marketplace changes' refer to?
• What term describes issues that arise in the workplace between internal stakeholders?
• Who are individuals that attempt to sell products by making calls to potential customers?
• What does a Skills Shortage indicate?
• What do we call a market dominated by a single business that produces a product or service?
• Which pricing strategy is aimed at making customers believe they are getting a good deal?
• Which of the following is not considered a part of the Marketing Mix?
• What does an increase in labour turnover generally indicate about a business?
• What is the term for a process of reviewing or checking business practices?
• What is job enlargement in the context of business roles?
• What is a mission statement?
• What term describes physical currency and instantly accessible funds?
• What is indicated by a candidate's acceptance of a job offer?
• What is a common drawback of written communication?
• What term refers to a business's responsibility for repaying debt?
• Which stage of the business cycle typically leads to increased employment rates and consumer spending?
• What process is performed to ensure the relevance and necessity of a job vacancy?
• What type of test is used to evaluate a candidate's abilities?
• What is a key feature of visual communication?
• What term refers to the costs associated with running a business?
• Which organization is responsible for monitoring health and safety in New Zealand businesses?
• What type of company is defined as one that only sells shares to invited individuals?
• What is the definition of an entrepreneur?
• What type of pricing is used primarily to respond to customer perception of value?
• What is the term for making decisions about short or medium-term actions in business?
• Which process involves a third party helping to resolve conflicts between parties?
• What distinguishes a market-oriented business from a product-oriented business?
• What is the financial term for the remaining cash flow after expenses and taxes have been deducted?
• What is involved in the initial step of a hiring process that gathers candidate applications?
• What is a letter of application primarily used for?
• Who are the individuals or entities that own shares in a company?
• Which type of inflation is caused by increased consumer demand for products and services?
• What does the induction process involve?
• What does indirect competition refer to?
• What term refers to individuals who will recommend you to an employer?
• Which strategy allows larger businesses to achieve higher productivity by producing in larger quantities?
• Which of the following activities is primarily associated with telemarketers?
• What term is used for the process of reviewing applications and removing any that are unsuitable?
• Pricing strategies can impact which of the following?
• What term describes the release of harmful substances into the environment?
• What is the term for paying to create and transmit a message in order to attract customers?
• What is the name of New Zealand's central bank responsible for monitoring the economy?
• Which promotional method encourages customers to make an immediate purchase?
• What term best describes a climate characterized by moderate temperatures throughout the year?
• What is referred to when consumers share their opinions about products or brands?
• Which of the following best describes workplace incidents?
• What type of business is owned by 2 to 25 people?
• Who are the businesses that provide raw materials or products to other businesses?
• What do we call all cash coming into a business?
• In business, what does “equity” primarily represent?
• What is the term for preparing a list of applicants a business wishes to interview for a job?
• What concept refers to the decrease in average cost per unit as production increases?
• Which of the following best describes the characteristic of limited liability?
• What form of communication is primarily conducted through speaking, such as phone calls and meetings?
• What does unlimited liability mean for business owners?
• Which analysis technique assesses the strengths, weaknesses, opportunities, and threats of a business?
• What is the purpose of the Fair Trading Act?
• What strategy involves charging a temporary special price to attract customers?
• Which term refers to routes by which goods are moved from producers to consumers?
• What does the term 'Interest Rates' refer to?
• In terms of marketing, what benefits do larger businesses typically have over smaller ones?
• What is the primary purpose of communication in a business context?
• What is the purpose of an interview in the job application process?
• What term refers to the problem caused by harmful waste being released into surroundings?
• What type of competition involves businesses creating a unique selling proposition rather than competing on price?
• What do businesses call the strategies they utilize to determine the prices they charge for their products or services?
• What process directly follows the recruitment phase in hiring?
• What term is used for someone who owes the business cash?
• What term describes a potential danger or risk in a business context?
• Which of the following training methods combines both on-the-job and off-the-job learning?
• What is the primary focus of progression planning within a business?
• Which of these is an aspect of marketing?
• Which term best describes the unpredictability of the economy?
• What do we call it when a business operates with little to no cash reserve?
• Which business approach focuses on listening to consumer wants and producing accordingly?
• What are mandatory payments made by consumers and businesses to the government called?
• Which of the following best defines an objective in business?
• What influence do pricing strategies have on a business?
• What type of incident disrupts workplace operations significantly?
• What is the potential result of a workplace incident?
• Which type of company has the ability to sell shares on the stock exchange?
• Which of the following describes the role of a creditor?
• What is an offense called when a law is violated?
• Procedures for doing something correctly in a business are called what?
• Which process involves attracting applicants for a job vacancy?
• Which of the following best describes the confidence, enthusiasm, and discipline of a person or group?
• What term describes the group of consumers that a product is aimed at?
• Which of the following could be categorized under capital for a startup?
• What pricing method involves setting prices at a similar or lower level compared to rivals?
• Which economic condition is most likely to lead to Skills Shortages?
• Which of these is an example of a production disruption?
• What is the practice of assigning employees more engaging or diverse tasks to enhance their work experience called?
• What do sources of finance refer to?
• Finance that will be used or repaid over a period longer than a year is called?
• Which pricing method is based on calculating production costs and adding a profit margin?
• Which term refers to customers who have trouble meeting payment obligations?
• What is the role of civil defence in society?
• What document provides contact information, education, qualifications, and work experience of a job applicant?
• What does longevity refer to in a business context?
• Which of the following best defines capital in the context of business?
• What term refers to the movement of individuals into a new area?
• What term describes the receipts of a business minus its payments within a time period?
• In the context of market competition, which term refers to companies offering different goods but competing for the same consumer base?
• What term describes all sources of cash received by a business?
• What is the practice called when a business uses another company to perform a function instead of employing its own staff?
• Who is referred to as a creditor in a business context?