Higher Business Management (Full
Course) Exam Questions And Answers
Practice Questions with Solutions
Newest 2026 2027 | Already Graded A+
Durable Goods - Answer- Things we can use again and again
Non-durable goods - Answer- Things we can use only once
Service - Answer- A thing that is done for us
Business - Answer- Any organization working towards a set of objectives
Goods - Answer- Things we can see and touch
Wants - Answer- Non-essential things we would like to have
Needs - Answer- Essential things for survival
Land - Answer- An economic term meaning natural resources which businesses use
Labor - Answer- An economic term meaning the workforce of a business
Capital - Answer- An economic term meaning factories, machines, vehicles, tools etc
that a business owns or controls
Enterprise - Answer- This is the business ideas that an entrepreneur or owner has on
how to use land, labour and capital in their business
Entrepreneur - Answer- The person who develops a business idea and combines the
factors of production (land, labour, capital and enterprise). They take the risk of losing
their initial investment if the business idea fails.
Factors of Production - Answer- Land, Labour, Capital and Enterprise
Business Cycle - Answer- The constant process of producing goods and services
Primary Sector - Answer- Businesses involved in extracting natural resources
Secondary Sector - Answer- Businesses involved in manufacturing & construction
Tertiary Sector - Answer- Businesses involved in providing services
,De-industrialisation - Answer- The process of manufacturing decline
Sole Trader - Answer- a business owned by a single person
Partnership - Answer- a business owned by two or more people
Public Limited Company - Answer- a buisness witth limited liabilty whose shares are
availible to the general public to buy on the stock market
Private Limited Company - Answer- a company whose shares are not bought and sold
on the stock market and can only pass to another person with the agreement of other
shareholders
Franchise - Answer- the right to use a specific business's name and sell its products or
services in a given territory.
Public Corporation - Answer- An organisation created by an Act of Parliament
Charity - Answer- An organisation created to promote good causes
Private Sector - Answer- The part of the economy owned by individuals and businesses
Public Sector - Answer- The part of the economy owned by the government
Voluntary Sector - Answer- Organistions set up to rise money for good causes, or to
provide facilities for their members
Deed of Partnership - Answer- Contract drawn up between owners
Memorandum of Association - Answer- Document that regulates a firm's external
activities and must be drawn up on the formation of a plc
Partnership Agreement - Answer- A written agreement among all owners
Limited Liability - Answer- The responsibility of a business's owners for losses only up to
the amount they invest; limited partners and shareholders have limited liability
Unlimited Liability - Answer- The owner is personally and fully responsible for all losses
and debts of the business
Royalty - Answer- Payment to the holder of a patent or copyright or resource for the
right to use their property
Shareholder - Answer- A person who invests in a corporation by buying stock and is a
partial owner
,Stakeholder - Answer- Someone with a key interest in an organisation
Manager - Answer- Person appointed to supervise and control resources and
expenditures
Employee - Answer- A worker who is hired to perform a job
Government - Answer- The institution through which a society makes and enforces its
public policies
Local Community - Answer- People who live in an area
Customer - Answer- Someone who pays for goods or services
Consumer - Answer- A person who uses goods or services
Ordinary Shares - Answer- Stock whose holders are given a vote
Preference Shares - Answer- Stock whose holders are guaranteed priority in the
payment of dividends but whose holders have no voting rights
Share Issue - Answer- Act of introducing more shares onto the market
Debenture - Answer- Bond issued to secure a loan
Hire Purchase - Answer- The buying of equipment by paying in instalments, usually
including interest.
Divestment - Answer- Allows an organisation to sell off minor areas of their business
and concentrate on the core activities of the organisation
Loan - Answer- The temporary provision of money (usually at interest)
Mortgage - Answer- A long-term loan extended to someone who buys property
Multinational - Answer- A corporation that has manufacturing or service operations in a
number of different countries
Globalisation - Answer- Causing distinctively American norms and values to spread
throughout the world
Dividend - Answer- That part of the earnings of a corporation that is distributed to its
shareholders
Legislation - Answer- A law passed by a governing body
, PESTEC - Answer- Political, Economic, Social, Technological, Environmental,
Competitive
Share Price - Answer- The value of all the assets (stocks) divided by the number of
shares
Stock Exchange - Answer- A market for buying and selling stock
Corporation Tax - Answer- The tax which private and public limited companies must pay
on their profits.
VAT - Answer- A tax levied on the difference between a commodity's price before taxes
and its cost of production. It is currently 20%.
Income Tax - Answer- A tax on people's earnings
AGM (Annual General Meeting) - Answer- Event where shareholders meet to discuss
important decisions
Diversification - Answer- When organisations in completely different industries combine
together.
Vertical Integration - Answer- Organisations at a different stage in the same industry
combine together, for example, an oil refinery integrating with a petrol station
Horizontal Integration - Answer- When organisations produce the same type of product
or provide the same type of service combine together, for example, Halifax and Bank of
Scotland = HBOS
Local Authority - Answer- An administrative unit of local government
Profit Maximisation - Answer- The aim to make as much profit as possible
Survival - Answer- A strategy to remain in existence
Turnover - Answer- The volume of sales measured in pounds
Growth - Answer- A process of becoming larger or more numerous
Social Responsibility - Answer- The obligation of organisation management to make
decisions and take actions that will enhance the welfare and interests of society as well
as the organization.
Risk - Answer- When you are exposed to the chance of loss or damage
Course) Exam Questions And Answers
Practice Questions with Solutions
Newest 2026 2027 | Already Graded A+
Durable Goods - Answer- Things we can use again and again
Non-durable goods - Answer- Things we can use only once
Service - Answer- A thing that is done for us
Business - Answer- Any organization working towards a set of objectives
Goods - Answer- Things we can see and touch
Wants - Answer- Non-essential things we would like to have
Needs - Answer- Essential things for survival
Land - Answer- An economic term meaning natural resources which businesses use
Labor - Answer- An economic term meaning the workforce of a business
Capital - Answer- An economic term meaning factories, machines, vehicles, tools etc
that a business owns or controls
Enterprise - Answer- This is the business ideas that an entrepreneur or owner has on
how to use land, labour and capital in their business
Entrepreneur - Answer- The person who develops a business idea and combines the
factors of production (land, labour, capital and enterprise). They take the risk of losing
their initial investment if the business idea fails.
Factors of Production - Answer- Land, Labour, Capital and Enterprise
Business Cycle - Answer- The constant process of producing goods and services
Primary Sector - Answer- Businesses involved in extracting natural resources
Secondary Sector - Answer- Businesses involved in manufacturing & construction
Tertiary Sector - Answer- Businesses involved in providing services
,De-industrialisation - Answer- The process of manufacturing decline
Sole Trader - Answer- a business owned by a single person
Partnership - Answer- a business owned by two or more people
Public Limited Company - Answer- a buisness witth limited liabilty whose shares are
availible to the general public to buy on the stock market
Private Limited Company - Answer- a company whose shares are not bought and sold
on the stock market and can only pass to another person with the agreement of other
shareholders
Franchise - Answer- the right to use a specific business's name and sell its products or
services in a given territory.
Public Corporation - Answer- An organisation created by an Act of Parliament
Charity - Answer- An organisation created to promote good causes
Private Sector - Answer- The part of the economy owned by individuals and businesses
Public Sector - Answer- The part of the economy owned by the government
Voluntary Sector - Answer- Organistions set up to rise money for good causes, or to
provide facilities for their members
Deed of Partnership - Answer- Contract drawn up between owners
Memorandum of Association - Answer- Document that regulates a firm's external
activities and must be drawn up on the formation of a plc
Partnership Agreement - Answer- A written agreement among all owners
Limited Liability - Answer- The responsibility of a business's owners for losses only up to
the amount they invest; limited partners and shareholders have limited liability
Unlimited Liability - Answer- The owner is personally and fully responsible for all losses
and debts of the business
Royalty - Answer- Payment to the holder of a patent or copyright or resource for the
right to use their property
Shareholder - Answer- A person who invests in a corporation by buying stock and is a
partial owner
,Stakeholder - Answer- Someone with a key interest in an organisation
Manager - Answer- Person appointed to supervise and control resources and
expenditures
Employee - Answer- A worker who is hired to perform a job
Government - Answer- The institution through which a society makes and enforces its
public policies
Local Community - Answer- People who live in an area
Customer - Answer- Someone who pays for goods or services
Consumer - Answer- A person who uses goods or services
Ordinary Shares - Answer- Stock whose holders are given a vote
Preference Shares - Answer- Stock whose holders are guaranteed priority in the
payment of dividends but whose holders have no voting rights
Share Issue - Answer- Act of introducing more shares onto the market
Debenture - Answer- Bond issued to secure a loan
Hire Purchase - Answer- The buying of equipment by paying in instalments, usually
including interest.
Divestment - Answer- Allows an organisation to sell off minor areas of their business
and concentrate on the core activities of the organisation
Loan - Answer- The temporary provision of money (usually at interest)
Mortgage - Answer- A long-term loan extended to someone who buys property
Multinational - Answer- A corporation that has manufacturing or service operations in a
number of different countries
Globalisation - Answer- Causing distinctively American norms and values to spread
throughout the world
Dividend - Answer- That part of the earnings of a corporation that is distributed to its
shareholders
Legislation - Answer- A law passed by a governing body
, PESTEC - Answer- Political, Economic, Social, Technological, Environmental,
Competitive
Share Price - Answer- The value of all the assets (stocks) divided by the number of
shares
Stock Exchange - Answer- A market for buying and selling stock
Corporation Tax - Answer- The tax which private and public limited companies must pay
on their profits.
VAT - Answer- A tax levied on the difference between a commodity's price before taxes
and its cost of production. It is currently 20%.
Income Tax - Answer- A tax on people's earnings
AGM (Annual General Meeting) - Answer- Event where shareholders meet to discuss
important decisions
Diversification - Answer- When organisations in completely different industries combine
together.
Vertical Integration - Answer- Organisations at a different stage in the same industry
combine together, for example, an oil refinery integrating with a petrol station
Horizontal Integration - Answer- When organisations produce the same type of product
or provide the same type of service combine together, for example, Halifax and Bank of
Scotland = HBOS
Local Authority - Answer- An administrative unit of local government
Profit Maximisation - Answer- The aim to make as much profit as possible
Survival - Answer- A strategy to remain in existence
Turnover - Answer- The volume of sales measured in pounds
Growth - Answer- A process of becoming larger or more numerous
Social Responsibility - Answer- The obligation of organisation management to make
decisions and take actions that will enhance the welfare and interests of society as well
as the organization.
Risk - Answer- When you are exposed to the chance of loss or damage
