Lesson 1.7.1

1.7.1 External growth Quiz: OCR Business, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 1.7.1, External growth: 20 multiple choice questions for the OCR Business (H431), Unit 1: Introduction to Business, written with Revision Ninja.

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The 20 questions

  1. Which term describes two businesses forming a separate, jointly owned new legal entity?

    • Joint venture
    • Strategic alliance
    • Takeover
    • Merger

  2. What is a formal agreement between businesses to collaborate without forming a new legal entity?

    • Strategic alliance
    • Horizontal merger
    • Conglomerate
    • Joint venture

  3. What is a key advantage of entering a joint venture in an overseas market?

    • Zero cost
    • Shared risk
    • Guaranteed profit
    • Complete control

  4. What is a primary risk associated with forming a strategic alliance?

    • Unlimited liability
    • Forced liquidation
    • Double taxation
    • Loss of control

  5. In the context of business objectives, what does the letter S in SMART stand for?

    • Specific
    • Sustainable
    • Strategic
    • Standard

  6. What does the M represent in the SMART objective-setting framework?

    • Managerial
    • Marketable
    • Measurable
    • Maximum

  7. Which objective level sits at the very top of the corporate hierarchy of objectives?

    • Operational target
    • Corporate aim
    • Departmental goal
    • Tactical objective

  8. Which type of objectives focus on short-term day-to-day targets for individual workers or teams?

    • Strategic objectives
    • Operational objectives
    • Mission statements
    • Corporate aims

  9. What term describes any individual or group with an interest in a business's operations?

    • Entrepreneur
    • Director
    • Shareholder
    • Stakeholder

  10. Which of the following is classified as an internal stakeholder of a business?

    • Factory worker
    • Local community
    • Bank manager
    • Supplier

  11. Which stakeholder group is considered an external stakeholder of a commercial bank?

    • Operations manager
    • Government regulator
    • Board member
    • Chief executive

  12. Increasing employee wages to improve retention directly conflicts with which shareholder objective?

    • Market share
    • Ethical sourcing
    • Maximum profit
    • Brand recognition

  13. What is a major negative consequence of miscommunicating business objectives to employees?

    • Increased liquidity
    • Tax exemption
    • Higher dividends
    • Low motivation

  14. Why might a retail business need to urgently alter its primary corporate objectives?

    • Constant demand
    • Fixed exchange rates
    • Stable inflation
    • Economic recession

  15. What is typically the primary objective for a public sector healthcare provider?

    • Market dominance
    • Profit maximisation
    • Service delivery
    • Shareholder dividend

  16. Tactical objectives are designed to help a business achieve targets over what timeframe?

    • Over decades
    • Daily basis
    • Long term
    • Medium term

  17. Raising prices to boost profit margins is most likely to cause conflict with which group?

    • Lenders
    • Customers
    • Shareholders
    • Tax authorities

  18. Two car makers pool capital to build a battery plant in a new company. What is this?

    • Merger
    • Takeover
    • Franchise
    • Joint venture

  19. A business aims to 'increase UK sales by 10% within 12 months'. What is this?

    • Corporate aim
    • Social objective
    • SMART objective
    • Mission statement

  20. An airline partners with a hotel chain to cross-promote without sharing ownership. What is this?

    • Demerger
    • Joint venture
    • Strategic alliance
    • Horizontal integration

All OCR Business quizzes