Theme 1 - Mixed questions - Part 2

Which of the following methods of market research- best describes a small group of people selected to give in depth opinions on specific business issues, face to face?

• Observation

• Questionnaire

• Survey

• Focus group

Which of the following is a drawback to an entrepreneur of starting a business as a sole trader?

• Profit is shared

• Financial accounts are kept private

• Limited liability

• Unlimited liability

Details regarding estimated sales are most likely to be found in which section of a business plan?

• Aims & Objectives

• Target market

• Financials

• Sources of finance

Which of the following is a consequence to every business of having cash flow problems?

• It may not be able to pay its day-to-day bills

• It may not be able to pay its day-to-day bills

• The national press will report trading difficulties to the general public

• The business should reduce selling prices straight away

Which of the following best describes the blend of price, product, promotion and place, upon which a business must make decisions in order to generate sales?

• Market research

• Market mapping

• Market segments

• Marketing mix

Which of the following is most likely to occur as interest rates rise? Businesses:

• Invest less money in the bank & borrow more money from the bank

• Invest more money in the bank & borrow more money from the bank

• Invest less money in the bank & borrow less money from the bank

• Invest more money in the bank & borrow less money from the bank

A supermarket stocks different products according to the demands of the local market. This is an example of segmentation according to:

• Income

• Gender

• Age

• Location

Private limited companies have to pay tax on profits made during a financial year. Which of the following types of tax is this type of business required to pay on its profit?

• Income tax

• Corporation tax

• Value added tax

• Sugar tax

Last year, a business sold 500 units. Fixed costs for the year were £25,000 and its variable cost per unit was £90. This year sales and fixed costs remained the same, but variable costs per unit have increased by 10%. What are the business’s total costs this year?

• £20,000

• £24,500

• £70,000

• £74,500

An entrepreneur needs to be a risk taker. A characteristic of a risk taker is:

• Being prepared to work long hours

• Having lots of business ideas

• Being prepared to make mistakes when making decisions

• Having the ability to manage their time effectively