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What sort of businesses are ABC and DEF?
 
ABC 
DEF 

Limited liability company 
Partnership 

Co-operative society 
Limited liability company 

Partnership 
Limited liability company 

Limited liability company 
Co-operative society 
(b) 
Azif is a customer of both ABC and DEF. 
What type of stakeholder is he?
Select the correct answers from the list below. 
ABC
DEF
Picklist 
Internal 
Connected 
External 
Not a stakeholder 
(4 marks)
5 
For which of the following reasons would dismissal automatically be considered unfair? 

Redundancy 

Pregnancy 

Non-capability 

Misconduct 
(2 marks)
6 
Under which component of PEST analysis would an organisation analyse the media through 
which segments of the youth market access new digital music products? 

Political 

Social 

Economic 

Technological 
(2 marks)
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PRACTICE QUESTION AND ANSWER BANK 
 
514
 
7 
The bargaining power of customers in an industry will be greater in which of the following 
circumstances?

There are one or two dominant suppliers in the industry 

The product is highly important to the customer's business 

There are many customers in the industry 

Switching costs are low 
(2 marks)
8 
Health and safety regulations cover a range of workplace health and safety issues. Which of the 
following is not covered by regulation? 

Handling and storage of chemicals

Lifting 
heavy 
objects 

Computers 

Professional 
disagreements 
(2 marks)
9 
Workplace hazards cover a variety of situations including heavy lifting and VDU usage. What is 
the definition of a hazard? 

Heavy 
machinery 

Electrical 
equipment 

Something likely to cause injury, or a point of exposure to risk of accident, injury or illness 

Tippex 
(2 marks)
10 
Data security is crucially important to an organisation. Certain types of data may be particularly 
at risk. 
Select all of the following data types to which this applies? 

Personal and private information 

Information relating to the security of the organisation 

Information integral to the outcome of dealings in the organisation 

Information integral to the organisation's standing and competitive advantage 
(2 marks)
11 
All of the following except one are data protection principles. Which is the exception? 

Data 
maximisation 

Purpose 
limitation 

Storage 
limitation 

Accuracy 
(2 marks)
12 
Constance is a sole trader operating in the UK. Her main business is in telecommunications: 
providing telephone, broadband and cable television services to the public. Demand for 
Constance's services is growing and she is considering outsourcing some of her operations. She is 
looking into using local contractors for a short period, until she can train her own operatives to 
cover the west of England and Wales.
(a)