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SGS Y10 Summary Test

Total questions: 30

Worksheet time: 16mins

Name
Class
Date
1.

A second hand car dealership offers all customers a one-year warranty on vehicles

purchased. This is an example of the business competing on:

a)

Location

b)

Price

c)

Quality

d)

Customer Service

2.

Which of the following stakeholders are classed as the owners of a private limited

company?

a)

Stakeholders

b)

Managers

c)

Employees

d)

Shareholders

3.

Last year, a local building firm, donated £1,000 to a community project. This is an example

of:

a)

A sales objective

b)

A social objective

c)

A market share objective

d)

A profit objective

4.

Which of the following is a possible benefit to businesses of providing a safe working

environment?

a)

Productivity decreases

b)

Costs increase

c)

Efficiency decreases

d)

Motivation increases

5.

An extract from a firm’s cash flow forecast for April is shown in the table above.


Based on this information, its closing balance for April is:

a)

£47,726

b)

£52,497

c)

£57,268

d)

£102,774

6.

Which of the following best describes the aim of employment law? To allow employers to

use labour efficiently while preventing unfair treatment of:

a)

Customers

b)

Employees

c)

Suppliers

d)

Workers

7.

The development of music streaming businesses, such as Spotify, have come about due to

changes in:

a)

Legislation

b)

Economic climate

c)

Technology

d)

The Government

8.

Which of the following allows business owners to identify gaps in a market in relation to

rival businesses?

a)

Market mapping

b)

Market segmentation

c)

Market Share

d)

Marketing mix

9.

Which of the following businesses is most likely to be concerned with being close to

competitors rather than customers?

a)

Newsagent

b)

Dog grooming parlour

c)

Estate agent

d)

Butcher

10.

Which of the following is the most likely impact of sharply rising employment levels on a

business selling value, unbranded goods?

a)

Falling sales and rising profit

b)

Rising sales and falling profit

c)

Falling sales and falling profit

d)

Rising sales and rising profit

11.

The decision to not pay out a yearly dividend is most likely to be opposed by:

a)

Employees

b)

Shareholders

c)

Suppliers

d)

Customers

12.

Which two of the following would be true if a business experiences a rent increase?

Select two options:

a)

The business would need to sell more units to break even

b)

The break even point would rise

c)

The break even point would fall

d)

The break even point would stay the same

13.

Which two of the following are examples of fixed costs for a coffee shop?

Select two options:

a)

Coffee ingredients

b)

Rent for the shop

c)

Serviettes

d)

Insurance for the shop

e)

Milk

14.

Which of the following is a disadvantage of organic growth?

a)

Unit costs can be reduced as the business grows

b)

Growth may be slow

c)

Can often be financed through internal funds

d)

It is often hard to control and manage compared to external growth

15.

Which of the following products is likely to be made using job production?

a)

Heinz baked beans

b)

Cadburys Dairy Milk

c)

Land Rover car

d)

Made to measure wedding dress

16.

The market share of 4 different businesses in a small, local market is shown in the pie chart above.

If the market size by value is £120,000, what is the value of sales in £’s made by Business B?

a)

£14,400

b)

£24,000

c)

£36,000

d)

£45,600

17.

Which of the following is an example of an internal source of finance?

a)

Loan capital

b)

Selling assets

c)

Share capital

d)

Stock market flotation

18.

Which two of the following are limitations to a business of using job production?

a)

Employee demotivation due to the boring nature of work

b)

High cost of purchasing the production line machinery

c)

Difficult to change the production line

d)

Unit costs are likely to be high

e)

Difficult for the business to grow due to shortages of specialist skills

19.

A successful public limited company is looking to expand into new markets whilst minimising the risk of takeover. The business wants to use internal sources to raise funds. Which two of the following sources of finance would be the most suitable to fund this expansion?

a)

Share capital

b)

Selling unwanted assets

c)

Retained profit

d)

Stock market flotation

e)

Loan capital

20.

Which of the following is a positive impact on a business of efficient logistics and supply

decisions?

a)

Customer satisfaction can increase

b)

Costs will rise

c)

Reduction in reliability

d)

Reputation will fall

21.

At which of the following stages in a product’s life are product sales always zero?

a)

Research and development

b)

Introduction

c)

Maturity

d)

Decline

22.

Which of the following production methods is a new hairdressing business likely to use?

a)

Batch production

b)

Job production

c)

Flow production

d)

Mass production

23.

Which of the following is a disadvantage to a business of selling assets to raise business finance?

a)

A business plan will need to be produced

b)

The amount generated is usually lower than the amount originally paid for the asset

c)

Interest will be payable on the amount raised

d)

The business will need to replace the asset sold as soon as possible

24.

Which of the following is the correct formula for calculating revenue?

a)

Quantity/price

b)

Quantity + price

c)

Price - quantity

d)

Price x quantity

25.

Which of the following is true for a UK business operating in a global market?

a)

Less expensive to transport goods to the end consumer

b)

Good publicity if UK production jobs are lost to other countries

c)

Cost reductions could lead to lower profits

d)

Access to a larger market

26.

Which of the following departments has the role of coordinating people and resources to ensure everything is in the right place at the right time?

a)

Logistics

b)

Procurement

c)

Customer services

d)

Production

27.

Which of the following is a drawback to a business of accepting greater environmental responsibility?

a)

Reputation may be damaged

b)

Loss of customers if price has to be increased

c)

Savings can be made through recycling

d)

Increased profit if customers pay a higher price

28.

An independent ice cream producer sells its products directly to large supermarkets, such as Tesco. The supermarkets then sell the ice cream to customers through a network of physical stores. Which of the following methods of distribution is being used to deliver the

product to the customer?

a)

E-commerce

b)

E-tailer

c)

Retailer

d)

M-commerce

29.

Which two of the following businesses are most likely to set low prices, sell high volumes and

experience low profit margins?

a)

John Lewis

b)

Harvey Nicholls

c)

Primark

d)

Selfridges

e)

Jack’s

30.

Which two of the following might a supermarket use to measure the quality standards provided at its checkouts?

a)

How long it takes an employee to scan each item

b)

Whether customers pack their own shopping

c)

The payment method used by the customer

d)

If a customer brings their own shopping bags

e)

The number of customers served per hour