What is the primary aim of most start-up businesses?

• To provide employment

• To make a profit

• To support the local community

• To reduce competition

Which of the following is an example of a fixed cost?

• Raw materials

• Packaging costs

• Rent for a factory

• Wages based on hours worked

What is the purpose of market research?

• To reduce production costs

• To understand customer needs and preferences

• To increase the price of products

• To recruit new employees

Which of the following is a disadvantage of a sole trader business?

• Unlimited liability

• Shared decision-making

• High set-up costs

• Complex legal requirements

What is a unique selling point (USP)?

• A feature that makes a product stand out from competitors

• A method of calculating profit

• A type of business ownership

• A legal requirement for all businesses

Which of the following is a benefit of a business plan?

• It guarantees business success

• It helps secure finance from investors

• It eliminates all risks

• It ensures high profits

What is the formula for calculating total revenue?

• Selling price × Quantity sold

• Fixed costs + Variable costs

• Total costs ÷ Quantity sold

• Profit - Total costs

Which of the following is an example of a secondary market research method?

• Conducting customer surveys

• Analysing government statistics

• Organising focus groups

• Observing customer behavior

What is the main advantage of a franchise business model?

• Complete control over decision-making

• Established brand name and customer base

• No need to pay franchise fees

• Limited financial risk

Which factor is most likely to influence the location of a retail business?

• Proximity to competitors

• Access to raw materials

• Availability of skilled labor

• Low rent costs