Business Studies - Paper 1

Which of these businesses provides a service to customers?

• Florist

• Bakery

• Dentist

• Butcher

Rising interest rates are an example of a change in:

• Legislation

• Technology

• Environmental expectations

• The economic situation

Which of these businesses operates in the secondary sector?

• Dyson

• Cineworld

• John Lewis

• EE

Which of the following statements best describes an entrepreneur?

• Someone who buys a product from a business

• Someone who uses goods and services product by a business

• Someone who works for a business

• Someone who is willing to take the risk involved in starting a business

Which of the following best describes the term opportunity cost?

• The benefits created by making a particular business decision

• The opportunity created by making a particular decision

• The financial cost of making a particular decision

• The benefits given up by making a particular decision

Which of the following best describes the term limited liability? If the business fails:

• Personal possessions of the owner can be taken to pay any debts

• The owner is personally liable for all the debts of the business

• There is no limit on the amount the owner has to pay to settle debts

• The owner only loses the amount invested in the business

Which of the following is an advantage of a business operating as a partnership over a soletrader?

• Unlimited liability

• Profits are shared

• Shared responsibility

• Financial accounts are kept private

Which of the following is a disadvantage of being a private limited company?

• It has a separate legal identity and therefore continuity

• Control is kept over who buys shares in the company

• Shareholders’ personal possessions cannot be taken to pay any debts

• A summary of the business’s accounts can be viewed by the public

UK supermarket, Tesco has opened stores all over the world. Which of the following objectives has the supermarket met?

• Increasing customer satisfaction

• International growth

• Profit maximisation

• Increasing shareholder value

Which of the following is the most likely objective of a large, established and highly profitable international business?

• Market dominance

• Making a profit

• Survival

• Domestic growth