GCSE Business 1

Which of these has unlimited liability?

• Sole Trader

• Private Limited Company

• Public Limited Company

• Multi National Company

Why do many companies use outsourcing?

• To improve production quality

• To increase costs

• To decrease costs

• To grow internationally

A small business requires a new website but the owner lacks the skills and knowledge to do this. What would the best option be?

• Advertise for and recruit a website designer

• Try to produce a website

• Outsource the job

• Contact a competitor to ask them how they did it

Which of these cannot retain profit?

• LTD

• PLC

• MNC

• NPO

What is the primary aim for all businesses?

• To survive

• To make profit

• To expand

• To create employment

Business plans should be SMART what do the letters R and T stand for?

• Reasonable and Team

• Realistic and Time Specific

• Rational and Timely

• Responsible and Targeted

Which stakeholders would be most affected by redundancies?

• Local residents

• Employees

• Shareholders

• Suppliers

Revenue - …………….. = Gross Profit

• Cost of Sales

• Fixed Costs

• Variable Costs

• Total Costs

What type of costs change according to the number of units required?

• Fixed Costs

• Variable Costs

• Start Up Costs

• Expansion Costs

Which of these is often a benefit of expansion?

• Lower total costs

• Improved quality

• Guaranteed profit increase

• Economy of Scale