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GCSE Edexcel Business 11.1

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

How will you be assessed in this course?

a)

Examination only

b)

Examination and coursework

c)

Coursework only

2.

How many examinations will you take at the end of year 11?

a)

One

b)

Two

c)

Three

d)

Four

3.

What two components will you study during this course?

a)

Enterprise

b)

Enterprise and Entrepreneurship

c)

Growing a business

d)

Investigating small businesses

4.

Internal growth is when a business grows by ….

a)

Merging with other businesses

b)

Taking over other businesses

c)

By opening new stores in the UK and abroad

5.

An example of internal growth could include

a)

Mergers and takeovers

b)

Mergers and opening new stores

c)

Take-overs and opening new stores

d)

Opening new stores and expanding into e-commerce

6.

External growth is when a business grows by joining or buying other businesses?

a)

True

b)

False

7.

Examples of external growth include..

a)

Mergers and opening new stores

b)

Mergers and expanding into e-commerce

c)

Take-over and expanding into e-commerce

d)

Merger and takeovers

8.

A business may grow externally for all of the following reasons except?

a)

To increase costs

b)

To benefit from economies of scale

c)

To increase their market share

d)

To gain better distribution links

9.

The benefits of economies of scale are that …..

a)

As output increases costs increase

b)

As output increases costs decrease

c)

As output increases costs remain the same.

10.

Horizontal integration occurs when ….

a)

A business merges with another business at the same stage in the production process

b)

A business merges with a business that operates in a different market

c)

A business that merges with a business that operates in the same market but at a different stage in the production process

11.

Vertical integration occurs when ….

a)

A business merges with another business at the same stage in the production process

b)

A business that merges with a business that operates in the same market but at a different stage in the production process.

c)

A business that merges with another business that operates in a different market.

12.

A conglomerate is a business that ….

a)

Merges with another business that operates in a different market.

b)

Merges with another business in the same market but at a different stage of the production process.

c)

Merges with another business in the same market and at the same stage of the production process.

13.

The advantage of becoming a public limited company is that?

a)

It is easier to raise finance

b)

You are more likely to be taken-over

c)

You financial history is made public

d)

You can not control who buys your shares

14.

Internal finance is ...

a)

Finance obtained from within the business.

b)

Finance obtained from outside the business

15.

An example of internal finance includes?

a)

Selling stocks and shares

b)

A government grant

c)

A bank loan

d)

Retained profit

16.

A example of external finance includes

a)

Retained profit

b)

Finance from family and friend

c)

Owners own savings

d)

A bank loan

17.

An advantage of retained profit is that ….

a)

The interest rate charged is low

b)

You can raise as much as you need

c)

You do not have to pay it back

d)

You are told by the bank how you must spend it.

18.

The advantage of selling assets as a way of raising finance are...

a)

Interest rates are low

b)

A large amount of finance may be raised easily

c)

You still have use of it once you have sold it.

d)

All businesses have assets they do not need.

19.

A disadvantage of a bank loan are that...

a)

You do not pay interest on them

b)

They are quick and easy to arrange

c)

You can agree a payback period with the bank

d)

The bank may require collateral as security

20.

The advantages of selling shares are that ….

a)

Only Ltd.'s and PLC's can sell shares

b)

You could lose ownership of your business

c)

There are no interest payments due

d)

You usually have to pay dividends to shareholders

21.

The reason why Tesco's is opening its first Jack's store is because of?

a)

Changes in technology

b)

Deciding to enter new markets

c)

To reduce its workforce

d)

To increase its product range

22.

Tesco is reducing its workforce so that it can?

a)

Reduce its costs and reduce its prices so that it can compete with discount supermarkets.

b)

Enter new markets

c)

Invest in new technology

d)

Increase its product range

23.

The advantage to a business of globalisation is?

a)

Increased competition

b)

The increased threat of take-over

c)

The ability to increase profits

d)

The introduction of new competitors into the market

24.

A tariff is a?

a)

Tax on imported goods

b)

A limit on the number of goods that can be imported

c)

Group of nations that encourage and promote trade

d)

Good that is sold overseas

25.

An exchange rate is?

a)

The value of one currency expressed in terms of another

b)

A currency that is getting stronger in value against another.

c)

A currency that is getting weaker in value against another

26.

A currency getting stronger or appreciating is a currency that is …...

a)

going up in value against another.

b)

going down in value against another

c)

Staying the same in value against another

27.

A currency getting weaker or depreciating against another is ….

a)

going up in value against another

b)

staying the same in value against another

c)

going down in value against another

28.

A change in the exchange rate could.....

a)

Increase or lower the price of a product sold abroad

b)

Change the price of imported raw materials

c)

Change the price of competitors' product in the home market

d)

All of the options mentioned

29.

A fall in the value of the UK £ against the US$ will be good for which two groups?

a)

UK tourists visiting the USA

b)

US tourists visiting the UK

c)

UK companies importing US goods

d)

UK companies exporting US goods

30.

A fall in the value of the UK £ against the US$ will be bad for which two groups?

a)

UK tourists visiting the USA

b)

US tourists visiting the UK

c)

UK businesses exporting to The USA

d)

UK businesses importing from the USA

31.

The UK £ exchange rate against the Euro is presently £1 = E1.20. If a French consumer wants to buy a British car priced at £20,000 it will cost them in Euros?

a)

E24,000

b)

E20,000

c)

E12,000

d)

E14,000

32.

The UK £ exchange rate against the Euro was £1 = E1.20. The UK £ has weakened to £1 = E1. If you were a French consumer buying a British car for £10,000 how much has the price changed in Euros?

a)

It has increased by E2,000

b)

It has stayed the same

c)

It has fallen by E2,000

33.

The UK £ exchange rate against the Euro is presently £1 = E1.20. If a British consumer wants to buy a French car priced at E24,000 it will cost them in UK £'s?

a)

£12,000

b)

£16,000

c)

£20,000

d)

£24,000

34.

The UK £ exchange rate against the Euro was £1 = E1.20. The UK £ has weakened to £1 = E1. If you were a British consumer buying a French car for E24,000,000 how much has the price changed in UK £'s?

a)

Increased by £4,000

b)

Increased by £2,000

c)

Decreased by £4,000

d)

Decreased by £2,000

35.

The GBP is currently depreciating against the US$ and the Euro. This is good for?

a)

UK tourists travelling to The USA

b)

UK tourists travelling to Europe

c)

UK businesses importing raw materials from The USA and Europe

d)

UK businesses exporting to The USA and Europe