Edexcel GCSE Buiness 1.4

Which two of the following are examples of methods of promotion?

• Advertising

• Personal shopping

• Sales

• Public relations

• Niche marketing

Which one of the following is not true of e-commerce?

• E-commerce concerns digitally enabled commercial transactions between and among organisations and individuals

• E-commerce concerns the sale or purchase of goods or services, conducted over computer networks

• E-commerce concerns orders made over the web (internet), extranet or electronic data interchange

• E-commerce concerns orders made by telephone calls, faxes or manually typed e-mails

Which one of the following is a true statement about a sole trader business?

• The business is owned by one person

• The owner has a separate legal identity to the business

• The owner has limited liability

• The owner cannot employ anybody else to work for them

Which one of the following is an element of the marketing mix?

• Profit

• Placement

• Production

• Promotion

Which one of the following is a true statement about an ‘ordinary’ partnership?

• Day to day management is usually shared

• A partnership can only be owned by two people

• The owners have a separate legal identity to the business

• The owners have limited liability

Which two of the following are advantages of selling directly to customers over the Internet, via a website with e-commerce facilities?

• Access to a global market

• Concerns over privacy and security

• Cost to design, maintain and update the website

• Customers can’t physically inspect goods prior to purchase

• No opening or closing hours

Which two of the following are true statements about private limited companies (Ltd’s)?

• They are owned by shareholders

• They have to have at least two directors

• They do not have a separate legal identity from the business’s owners

• The owners have limited liability

• They do not have to pay corporation tax

Which one of the following is not an example of a component of a business plan?

• Business idea

• Business aims and objectives

• Market research

• Cash flow statement

Which two of the following are examples of advantages of operating as a sole trader business?

• Unlimited liability

• Easy to set up

• Cheap to set up

• Nobody to share risk and responsibility

• Might be difficult to cover absence

Which one of the following is a disadvantage associated with buying and running a franchise operation instead of a completely independent business?

• Access to large advertising campaigns

• Royalty payments to franchisor

• Recognised brand name

• Tried and tested suppliers