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Edexcel Business Theme 1

Total questions: 30

Worksheet time: 18mins

Name
Class
Date
1.

Which one of the following is an example of a consumer ‘want’?

a)

Warmth

b)

Shelter

c)

Makeup

d)

Food

2.

Which two of the following are examples of the rewards of business

a)

Risk of financial loss

b)

Lack of security

c)

Personal Wealth

d)

Independence

e)

Personal Debt

3.

Which two of the following are examples of the roles of an entrepreneur?

a)

Organising resources

b)

Producing goods or services

c)

Meeting customer needs

d)

Making business decisions

e)

Offering customer convenience

4.

Which one of the following is an example of a product

a)

Spotify

b)

Drake Concert

c)

Apple Air pods

d)

Business Lesson

5.

Which two of the following are examples of reasons for business failure

a)

Lack of security

b)

Failing to respond to market conditions

c)

Taking a calculated risk

d)

Selling online

e)

Lack of demand for the product or service

6.

Which one of the following is an example of market segmentation?

a)

Interview

b)

Questionnaire

c)

Income

d)

Observation

7.

Which two of the following are examples of primary market research?

a)

Market Report

b)

Interview

c)

Internet

d)

Focus Group

e)

Government Statistics

8.

Which two of the following are disadvantages of secondary market research?

a)

Time consuming to collect and analyse

b)

Requires a lot of money

c)

Data may be unreliable

d)

Data might not be up to date

e)

Needs specialist training and skills

9.

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

a)

Rent

b)

Package Costs

c)

Raw Materials

d)

Wages

10.

Which two of the following are examples of non-financial business objectives?

a)

Market Share

b)

Survival

c)

Personal Satisfaction

d)

Profit

e)

Social Objectives

11.

Which two of the following are examples of cash inflows?

a)

Loan Repayments

b)

Sales Receipts

c)

Interest on savings in the bank

d)

Interest on a bank loan

e)

Wages

12.

Which one of the following is an example of a variable cost for a Dog Groomer?

a)

Set of scissors for nail trimming

b)

Shampoo

c)

Vehicle

13.

Which two of the following are examples of short-term sources of business finance?

a)

Crowd Funding

b)

Trade Credit

c)

Bank Loan

d)

Personal Savings

e)

Overdraft

14.

Which one of the following is not an element of the marketing mix?

a)

Product

b)

Price

c)

Production

d)

Place

15.

Which one of the following has limited liability?

a)

Private Limited Company

b)

Partnership

c)

Sole Trader

d)

Shareholder

16.

Which one of the following is not a factor that influences business location?

a)

Speed of the business website

b)

Proximity to market

c)

Proximity to suppliers

d)

Ability to sell online

17.

Which two of the following are advantages of starting up as a partnership?

a)

Limited Liability

b)

Shared ideas

c)

Shared Profit

d)

Shared responsibility

e)

Possible disputes

18.

Which one of the following is the most likely implication for a business of rising unemployment?

a)

Falling sales

b)

Falling Costs

c)

Falling Productivity

d)

Small number of job applications

19.

Which one of the following is the most likely implication for a business of rising levels of consumer income?

a)

Increase in import prices

b)

Increase in demand

c)

Increase in customers defaulting on their payments

d)

Increased tax rates

20.

Which one of the following is not a typical example of a stakeholder?

a)

Local Community

b)

Government

c)

Customers

d)

Overseas Bank

e)

Employees

21.

Which two of the following are examples of external influences on a business?

a)

Skill level of employees

b)

Company's Equipment

c)

Employment Law

d)

Sales Revenue

e)

Exchange Rate

22.

Asset

a)

changing an existing product or process

b)

any item of value that a business owns, such as machinery or premises.

c)

the proportion of sales in a market that are taken by one business

d)

the flow of goods and services out of a country

23.

Brand loyalty

a)

This is how you market your business

b)

A customers willingness to buy a product from a particular business rather than from competitors

c)

The logo that you use to advertise your business

d)

A customers willingness to buy a product from competitors

24.

Competitive advantage

a)

Who your competitors are

b)

An advantage a business has over its rivals that is unique and sustainable

c)

A document showing you whats wrong with your business

d)

A financial statement showing you your advantages over your competitors

25.

Differentiate

a)

The strength and number of competitors operating in a market

b)

Show that a product is different from similar products

c)

Giving a product or service 'personality' with a name

d)

Features of a product

26.

Increased concern from consumers over the environment has led to new business start-ups developing products from recycled materials. These business ideas have come about due to:

a)

Services that have become obsolete

b)

Products that have become obsolete

c)

Changes in consumer demand

d)

Changes in the interest rate

27.

Which of the following statements is true in relation to goods and services?

a)

Services can be touched and held, whilst goods are usually invisible

b)

Goods can be touched and held, whilst services are intangible

c)

Services are visible, whilst goods are usually invisible

d)

Both goods and services are intangible

28.

What is the formula for break even

a)

Fixed costs / contribution

b)

Fixed costs / selling price

c)

Variable costs / selling price

d)

Fixed costs / margin of safety

29.

What is the break even point

a)

Where sales revenue is the same as fixed costs

b)

Where sales revenue is the same as variable costs

c)

Where sales revenue is the same as total costs

d)

Where fixed costs is the same as variable costs

30.

Which of these is not a method of adding value

a)

Branding

b)

Convenience

c)

Design

d)

Price