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GCSE Business - Section 1

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Which of these statements describes a competitor?

a)

A business that sells something completely different

b)

A business that sells a similar product but at a much higher quality and price

c)

A business that sells a similar product at a similar level of quality and price

2.

What does USP stand for?

a)

Unique selling point

b)

Unique selling price

c)

Unique selling potential

3.

What does ‘the interdependent nature of business activity’ refer to?

a)

Businesses working closely together to achieve success

b)

Businesses avoiding working with any other business

c)

Where one department in a business works closely with one other department

4.

What is the difference between goods and services?

a)

Goods are intangible products that you experience, services are tangible goods

b)

Goods are tangible products that you can touch, services are intangible experiences

c)

Goods and services are both tangible products

5.

Which of the following is a good?

a)

A calculator

b)

A taxi ride

c)

A swimming lesson

6.

What is a producer good?

a)

A producer good is a good that consumers use

b)

Producer goods are goods that businesses use to either produce other goods or in the provision of providing services

c)

A producer good is an experience offered to customers by large businesses

7.

What best describes a public sector business?

a)

A business that is owned and run by individuals or shareholders

b)

A business that provides a mixture of goods and services

c)

A business that is owned and run by the government

8.

Which is an example of a private sector business?

a)

A school

b)

A consumer electronics business

c)

The emergency services

9.

What four resources are needed to produce goods and services?

a)

Land, labour, commercial and personal

b)

Land, labour, durable and non-durable

c)

Land, labour, capital, and enterprise

10.

What best describes an entrepreneur?

a)

A person that works in a business

b)

A person that sets up a business

c)

A group of people that work together to set up a business

11.

Which of the following is not a characteristic of an entrepreneur?

a)

Being hardworking

b)

Determination

c)

Not taking risks

12.

What is a social enterprise?

a)

A business that is set up to make money

b)

A business that is set up for a challenge and personal satisfaction

c)

A business that is set up to achieve objectives related to the community or environment

13.

Which of the following is not an element that is included in a business plan?

a)

Marketing mix

b)

Stock market price

c)

Sources of finance

14.

What acronym is used when creating business objectives?

a)

SWOT

b)

SMART

c)

PESTLE

15.

Why would a bank primarily be interested in seeing a business plan?

a)

To determine whether a business would be able to pay back a grant or mortgage

b)

To determine whether a business would be able to pay back a loan or mortgage

c)

To check a business’ aims and objectives

16.

What is the difference between an aim and an objective?

a)

An aim is the overall goal and objectives are the steps to achieve it

b)

An objective is the overall goal and aims are the steps to achieve it

c)

A aim is where the business wants to be in 10 years and the objectives are where the business wants to be in five years

17.

What does the SMART acronym stand for?

a)

Specific, measurable, agreed, realistic, time bound

b)

Specific, marketable, agreed, realistic, time bound

c)

Sales based, measurable, agreed, realistic, time bound

18.

Which of these best defines a stakeholder?

a)

Anyone who works for a business

b)

Anyone with an interest in a business

c)

Anyone who buys from a business

19.

Which of these is a non-financial objective?

a)

To make a profit of £6000 in the first 12 months

b)

To use 100% renewable electricity within the first two years

c)

To have a 5% market share of the coffee industry within 100 miles in 12 months

20.

A business that offers good career progression is most likely to please which stakeholder group?

a)

Suppliers

b)

Managers

c)

Government

21.

What type of liability does a sole trader have?

a)

Limited

b)

Unlimited

c)

Private

22.

What is a private limited company often abbreviated as?

a)

LTD

b)

ARR

c)

PLC

23.

Who can a public limited company sell its shares to?

a)

Anyone

b)

Friends

c)

Employees

24.

Which of these is a benefit of being partnership?

a)

There are more ideas in the business

b)

The owners have to give away a share of the business profits

c)

There is unlimited liability

25.

Who owns an Worker co-operative?

a)

The employees

b)

Shareholders

c)

The customers

26.

Which of the following is a definition of the term ‘a takeover’?

a)

When two or more businesses voluntarily join together

b)

When two businesses work together to design a new product

c)

When one business buys enough shares in another business to control it

27.

What is hiring more staff an example of?

a)

External growth

b)

Internal growth

c)

A merger

28.

What do economies of scale result in?

a)

Lower unit costs

b)

Unchanged unit costs

c)

Higher unit costs

29.

What name is given to a business who sells the rights to use the business name and products?

a)

Franchisee

b)

Franchisor

c)

Conglomerate

30.

Which type of external growth involves a range of different businesses being merged or taken over?

a)

Forward vertical

b)

Conglomerate

c)

Horizontal