Edexcel Theme 1 - Investigating Small Businesses

Which of the following in an example of a Fixed Cost

• Salaries

• Electricity

• Materials

• Repairs

Which TWO of the following are part of the Marketing Mix for a Mobile Phone

• Raw materials costs are £50 per phone

• Manufactured in China

• Monthly tariff of £30

• An advert on a major supermarkets website

Which ONE of the following is an example of a characteristic of a Private Limited Company

• Can sell shares on a stock market

• Is unincorporated

• Has limited liability

• Shareholders work for the business

Why should an entrepreneur listen to their customers

• To help them through tough times

• To understand their needs with demands, or any issues with the business

• To judge them on their singing skills

• To know if their competitors have told them something wrong about their company

What is a benefit of a company using market reserach

• They understand there customers as people, and don't judge them for their interests

• It costs money

• It takes time

• They could find out what most people like and this could enable them to take their product suit their customers

Which of the following is an advantages of using e-commence for a business

• Setting up a server and paying for it to be run

• Higher internet bills and electricity bills

• 24/7 ordering and easy ordering for customers

• Increasing bank charges and higher levels of emails

What is an advantage of using Primary Reserach

• Easier to sell products

• Easier to advertise

• Better understanding of the business market

• A more detailed explanation of the business industry

Select TWO examples of overheads

• Wages

• Profits

• Revenues

• Rent

Which ONE of the following is an example of a financial objective

• To make the local community a better place

• To set up customer service helplines

• To have control of the business

• To increase the profit margin by 10% over the next few months

Define the term Closing Balance

• The amount remaining in an account, positive or negative, at the end of the accounting period or year end

• The amount remaining in your account when you leave the ATM after taking out a transaction