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GCSE Business Mock Revision

Total questions: 35

Worksheet time: 1hrs 5mins

Name
Class
Date
1.

What type of 'external influence' would interest rates, inflation and unemployment be classified as?

a)

Technology

b)

Legislation

c)

Economic Climate

d)

Stakeholders

2.

If the pound becomes weaker, a UK importer may experience...

a)

A decrease in sales and costs

b)

An increase in sales and costs

c)

A decrease in costs and an increase in sales

d)

An increase in costs and a decrease in sales

3.

Which of the following are businesses most likely to experience a decrease in demand as consumer incomes rise?

a)

A budget gym

b)

A designer clothes store

c)

A new car dealership

d)

A discount supermarket

e)

An upmarket restaurant

4.

Which of the following areas of law prevents businesses from treating customers unfairly?

a)

Employment Law

b)

Health and Safety Law

c)

National Minimum Wage

d)

Consumer Law

5.

Which of the following statements relating to employment law is true

Employees...

a)

Do not have to be provided with equal pay for work of equal value

b)

Are not entitled to health and safety training

c)

Do not have to be provided with a safe working environment

d)

Must be paid a minimum amount as set out by the government

6.

Which of the following statements relates to consumer law?

a)

Businesses are required to provided and maintain safety equipment

b)

Goods sold must be free from defects and be safe to use

c)

Businesses must provide employees with any necessary safety training

d)

The employer and employee have a duty to maintain a safe workplace

7.

A business fails to pay the national minimum wage to its employees. Which two of the following statements are true in relation to the business's actions?

a)

Employers may be publicly named and shamed

b)

Employers will be paid any money owed to them by employees

c)

Employees may be sued

d)

Employees will be told to pay outstanding amounts to employers

e)

Employers may be taken to court

8.

Which two of the following are benefits to a business of abiding by employment law?

a)

Help retain employees

b)

Number of work related accidents should increase

c)

Employee motivation increases

d)

Increases volume of administration and paperwork in the business

e)

Time consuming for the employer

9.

Which of the following definitions best describes digital communication?

a)

The use of the internet to create online communities e.g. Twitter , Facebook

b)

Electronic exchange of information e.g. email , social media

c)

The facility used between customers and businesses to pay for goods and services e.g. Apple Pay

d)

When buyers and sellers come together to trade in a virtual location e.g. over the internet

10.

In which of the following situations is a local NHS doctor's surgery most likely to use digital communications ?

a)

To provide information on its website for customers about their goods

b)

To message patients to remind them of their appointments

c)

To receive payment for goods/ services sold in the surgery

d)

To sell goods to patients

11.

Which two of the following are disadvantages to consumers of buying clothing through e-commerce?

a)

Risk of personal details being fraudulently used

b)

Likely to incur increased costs and time of returning any unwanted items

c)

Higher prices charged due to less competition online

d)

Business will need to follow legislation linked to trading online

e)

Difficult to establish brand loyalty

12.

Which of the following describes one way employees could have an impact on business activity?

a)

By demanding a longer payment period for suppliers

b)

By negotiating better working conditions

c)

By no longer purchasing the goods or services of a business

d)

By increasing the amount of tax payable on profits

13.

Which of the following stakeholders is most likely to have the objective of maximising pay?

a)

Local community

b)

Customers

c)

Owners

d)

Employees

14.

The rise of the internet has meant that many businesses costs are:

a)

Lower as there is more need for expensive retail premises

b)

Lower as there is less need for expensive retail premises

c)

High as there is more need for expensive retail premises

d)

Higher as there is less need for expensive retail premises

15.

Which of the following businesses is most likely to locate close to the market?

a)

A clothes retailer with a national chain of fixed premises stores

b)

An internet book store

c)

A manufacturer of high performance sports cars

d)

A small chocolate producer

16.

Which of the following best describes the term limited liability? If the business fails:

a)

Personal possessions of the owner can be taken to pay any debts

b)

The owner is personally liable for all the debts of the business

c)

There is no limit on the amount the owner has to pay to settle debts

d)

The owner only loses the amount invested in the business

17.

Which of the following is an advantage of operating a business as a public limited company?

a)

It is easier to raise finance as the business can sell shares

b)

Owners have unlimited liability

c)

Partners can provide specialist knowledge and skills

d)

It is very quick and easy to set up

18.

Which two of the following statements are always true of a sole trader?

a)

The owner has day to day control of the business

b)

Liability is limited

c)

Losses will be shared between partners

d)

Shareholders own the business

e)

Liability is unlimited

19.

Which two of the following are advantages of starting up and running as a franchise operation ?

The franchisee:

a)

Has to provide all equipment such as IT systems

b)

Gets advice and training from the franchisor

c)

Has to pay royalties to the franchisor

d)

May have to buy goods from the franchisor at a mark-up

e)

Is part of a well-known firm with established brand name and product

20.

Which of the following sources of finance would interest always need to be paid ?

a)

Share capital

b)

A loan from family/friends

c)

Overdraft

d)

Venture capital

21.

Which type of business would venture capitalists be usually interested in investing funds?

a)

An established private limited company

b)

A small business with slow sales

c)

A well-known franchise operation

d)

An entrepreneurial start-up with the possibility of high profits

22.

Which source of finance leads to a dilution of business ownership

a)

Personal savings

b)

Bank Loan

c)

Share capital

d)

Sale of assets

23.

Which one of the following statements is true in relation to cash-flow and/or profit?

a)

Cash-flow and profit have the same meaning in business

b)

Businesses should always be more concerned about profit than cash flow

c)

The profit figure is always shown in the cash-flow forecast

d)

A positive cash flow is important to ensure business survival

24.

The correct formula to calculate net cash flow in a cash-flow forecast is :

a)

Total cash inflows - total cash outflows in a given period

b)

Total cash outflows - total cash inflows in a given period

c)

Opening balance - closing balance

d)

Opening balance + closing balance

25.

Which two of the following are benefits to a business of having a positive cash flow?

a)

The business will be guaranteed to make a profit

b)

The business will no longer need to produce a cash-flow forecast

c)

All employees in the business will be highly productive

d)

It will help to prevent insolvency

e)

It will help to secure business survival

26.

Which one of the following best describes a fixed cost?


A cost that:

a)

Changes directly with output

b)

Stays the same regardless of output

c)

Only needs to be paid once, when the business first starts-up

d)

Needs to be paid once a month

27.

Which two of the following are examples of variable costs?

a)

Salaries of management

b)

Insurance

c)

Rent

d)

Raw materials

e)

Packaging

28.

Which two of the following are advantages to a business to a business of having a high margin of safety?

a)

The business will be operating below its break even point

b)

The business's sales price will be consistently set at a high level

c)

The business will have a larger gap between its current level of output and its break even point

d)

The business will be producing small volumes of output

e)

The business will have more flexibility in its pricing decisions

29.

Which of the following statements best describes the term Competition?

a)

When different businesses attempt to attract different customers

b)

When businesses do not have any rivals

c)

When different businesses attempt to attract the same customers

d)

When different businesses have only one supplier of raw materials

30.

In an extremely competitive market, a business may be forced to:

a)

Increase costs to enable price reductions

b)

Increase costs to enable price rises

c)

Cut costs to enable price reductions

d)

Cut costs to enable price rises

31.

The method used to identify where a product is positioned in the market in terms of certain criteria, such as high priced/low priced, is best known as:

a)

Market segmentation

b)

Market share

c)

Market mapping

d)

Marketing mix

32.

A business manufactures and sells vegetarian ready meals. Which type of market segmentation would the business most likely use?

a)

Location

b)

Lifestyle

c)

Gender

d)

Age

33.

Segmenting the market can help a business because:

a)

Prices are most likely to be set that customers are prepared to pay

b)

Products developed will always successfully sell on the market

c)

The distribution channel chosen will always ensure high sales

d)

Promotion methods chosen will be guaranteed to reach the customer

34.

Which of the following best describes the term Quantitative data?

a)

Data based on opinions, beliefs and attitudes

b)

Data collected using primary research

c)

Data based on numbers that can be analysed statistically

d)

Data collected using secondary research

35.

Which of the following is a method of primary market research?

a)

Internet

b)

Government reports

c)

Questionnaires

d)

Market reports