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6 Business Structure (A Level) : Multiple-Choice Questions

This document contains 4 multiple choice questions that test understanding of business structures and concepts like privatization, free trade, multinational corporations, and their benefits. The questions cover likely benefits of privatization, free trade, the definition of a multinational corporation, and claimed benefits of a multinational operating in a country.

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Katherine Pierce
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228 views1 page

6 Business Structure (A Level) : Multiple-Choice Questions

This document contains 4 multiple choice questions that test understanding of business structures and concepts like privatization, free trade, multinational corporations, and their benefits. The questions cover likely benefits of privatization, free trade, the definition of a multinational corporation, and claimed benefits of a multinational operating in a country.

Uploaded by

Katherine Pierce
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Cambridge International AS and A Level Business

6  Business structure (A Level)


Multiple-choice questions
1 Which one of the following is not considered to be a likely benefit
of privatisation?

a Raises revenue for the state to fund other activities.

b Subjects the business to market forces and, therefore,


improves efficiency.

c Enables the business to secure funds from stock markets.

d Increases the opportunities for making workers redundant.

2 Which one of the following is not considered to be a likely benefit


of free trade?

a Specialisation can lead to economies of scale.

b Increased competition encourages domestic industry to reduce costs.

c There is increased consumer choice.

d It reduces the exposure of an economy to adverse changes in the world


economy.

3 A multinational corporation, such as Coca-Cola, is best defined as a business that:

a sells its goods or services in more than one country

b is very large

c has its headquarters in one country, but with operating branches,


manufacturing or assembly plants in other countries

d employs people from a variety of ethnic backgrounds

4 One of the claimed benefits to a country of a multinational business


operating there:

a It will increase the level of imports into that country.

b Foreign managers will be employed.

c Total output in the economy should increase.

d The profits of the multinational may be taken out of the country.

© Cambridge University Press 2014  Cambridge International AS and A Level Business Multiple-choice questions – Chapter 6 1

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