Edexcel GCSE Business Paper 1 Revision

Which of these is a common reward for a successful business?

• Risk

• Profit

• Lack of security

• Loss

Which of the following is a possible risk for someone who runs their own business?

• Business success

• Financial loss

• Profit

• Independence

What is market segmentation?

• The process of splitting up a business into different departments

• The process of splitting up a target market into different groups

• The process of splitting up the products of a business into different categories

What does geographical segmentation refer to?

• Splitting up a target market based on location

• Splitting up a target market based on the sports the people play

• Splitting up a target market based on how much money the people earn

What is a gap in the market?

• An area of the market where there is demand, but no or little supply of a product

• An area of the market that is highly populated by other products and services

• An area of the market where there is no demand but a lot of supply

What are the four customer needs?

• Price, quality, choice and convenience

• Price, product, place and promotion

• Price, quality, promotion and convenience

What is the break-even point?

• The point at which a business makes a profit

• The point at which a business makes a loss

• The point at which revenue and total costs are the same, meaning the business makes neither a profit nor a loss

What does the margin of safety show?

• The amount sales can fall before the break-even point is reached

• The number of sales a business needs to make to break even

• The maximum number of sales a business can make

What is the correct calculation for break-even?

• Variable costs ÷ (selling price − fixed costs)

• Fixed costs ÷ (selling price − variable costs)

• Selling price ÷ (fixed costs − variable costs)

What is the marketing mix?

• The four Ps – product, people, place and promotion

• The four Ps – product, price, production and promotion

• The four Ps – product, price, place and promotion