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Year 10 GCSE Business (9-1) End of Year 2

Total questions: 30

Worksheet time: 17mins

Name
Class
Date
1.

Machinery is an example of which factor of production:

a)

Land

b)

Labour

c)

Capital

d)

Enterprise

2.

A business which grows potatoes and makes them into crisps is said to be operating in the:

a)

Primary and secondary sectors

b)

Primary and tertiary sectors

c)

Secondary and tertiary sectors

d)

Primary, secondary & tertiary sectors

3.

Which of the following is an advantage of growth through opening new stores?

a)

Growth may be dependent on overall market growth

b)

Less risky than taking over other businesses

c)

Fast way of growing market share compared to external growth

d)

New stores are guaranteed to be successful

4.

Last year, a business sold 19,600 units and made £98,000 in revenue. Its annual fixed costs were £30,000 and its variable cost per unit was £1.10. How much profit did it make last year?

a)

£46,440

b)

£68,000

c)

£76,440

d)

£128,000

5.

Which type of business is likely to have increasing shareholder value as an objective?

a)

Sole trader

b)

Partnership

c)

Public limited company

d)

Not-for-profit organisation

6.

The most likely advantage of being a sole trader business is being able to:

a)

Share decision making

b)

Raise large amounts of finance

c)

Keep all profit made

d)

Receive dividend payments

7.

A business sells 450,000 units per year. Fixed costs per year are £370,000 and variable costs are £1.20 per unit the businesses total costs are:

a)

£444,000

b)

£540,000

c)

£820,000

d)

£910,000

8.

Which of the following statements best describes an entrepreneur?

a)

Someone who buys a product from a business

b)

Someone who uses goods and services produced by a business

c)

Someone who works for a business

d)

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

9.

A high street coffee shop uses recyclable cups. The stakeholder objective being met is:

a)

Minimising the time it takes to pay its suppliers

b)

Maximising dividend payments for its owners

c)

Minimising environmental impact on the local community

d)

Maximising pay for employees

10.

A manufacturer is most likely to move production from the UK to the Far East because it is closer to:

a)

Customers

b)

Raw materials

c)

Competitors

d)

Cheaper labour

11.

Selling goods online is an example of which expansion method?

a)

Franchising

b)

Opening new stores

c)

E-commerce

d)

Outsourcing

12.

When Kraft acquired a controlling interest of Cadbury it was classed as a:

a)

Merger

b)

Franchise

c)

Opening new stores

d)

Takeover

13.

Which of the following is a feature of a weak economic climate?

a)

High levels of consumer spending

b)

Low levels of consumer spending

c)

High levels of employment

d)

Low levels of unemployment

14.

Which of the following is an example of a franchise?

a)

Morrisons

b)

Greggs

c)

Subway

d)

i-Fry

15.

Which of the following statements is true in relation to UK legislation?

a)

Product descriptions must be true, accurate and not misleading

b)

Employers do not have to pay the national minimum or living wage

c)

Customers cannot reject a falsely described product once purchased

d)

Gender is not a protected characteristic of the Equality Act (2010)

16.

Tesco’s F&F clothing brand has committed that, by 2020, it will only use cotton that has a minimal impact on the environment. This is an example of:

a)

Waste disposal

b)

Recycling

c)

Using scarce resources

d)

Sustainability

17.

Which of the following is an external risk faced by businesses?

a)

Low levels of employee motivation

b)

Employees taking industrial action

c)

Falling sales leads to lower profits

d)

New legislation introduced

18.

Within the next five years, supermarket chain, Iceland, is to replace all plastic packaging of own-brand products with a paper-based alternative. This is an example of the business:

a)

Behaving unethically

b)

Using scarce resources

c)

Accepting greater environmental responsibility

d)

Reducing traffic congestion

19.

Which of the following is an example of an electronic payment system?

a)

Instagram

b)

eBay

c)

Twitter

d)

PayPal

20.

Which of the following is true in relation to a UK exporter?

a)

A UK exporter wants a strong pound

b)

A strong pound makes UK exports cheaper abroad

c)

A UK exporter wants a weak pound

d)

A weak pound makes UK exports more expensive abroad

21.

Which of the following is true for a UK importer of goods from Italy if the value of the pound becomes weaker against the euro?

a)

Sales increase and profit increases

b)

Sales decrease and profit increases

c)

Sales increase and profit decreases

d)

Sales decrease and profit decreases

22.

A business has borrowed money from a bank in the form of an overdraft. If interest rates rise, how will this affect this business?

a)

Costs increase and profit decreases

b)

Costs decrease and profit increases

c)

Costs increase and profit increases

d)

Costs decrease and profits decrease

23.

Which of the following is an example of a fringe benefit?

a)

Holiday pay

b)

Overtime payment

c)

Praise at work

d)

Free lunches

24.

When two or more people come together to fulfill a single job role this is called:

a)

Part time employment

b)

Job sharing

c)

Zero hours contract

d)

Full time employment

25.

Which of the following would be the most suitable place for a large public limited company to advertise for a senior director?

a)

National newspaper

b)

Job centre

c)

Staff noticeboard

d)

Company intranet

26.

Induction training is:

a)

Training given to members of staff when they first start a new job

b)

Ongoing training given to existing members of staff

c)

Usually provided away from the place of work at a local college

d)

Will lead to a professional qualification being gained by the employee

27.

The passing of authority from one level to another is called:

a)

Delegation

b)

Responsibility

c)

Chain of command

d)

Span of control

28.

Which of the following is a key feature of centralisation?

a)

Major decisions are made by a small number of senior staff

b)

Major decisions are made by junior staff

c)

Delegation is actively used in the organisation

d)

A democratic management style exists

29.

Which of the following is a financial method of motivation that a business could use to motivate its staff?

a)

Profit sharing

b)

Free uniform

c)

Staff discount

d)

Company car

30.

Which of the following is a drawback to a firm of training its staff?

a)

Higher staff motivation

b)

Increased labour productivity

c)

Higher staff retention

d)

Increased business costs