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WorksheetsGCSE Business Mock Revision
Total questions: 35
Worksheet time: 1hrs 5mins
What type of 'external influence' would interest rates, inflation and unemployment be classified as?
Technology
Legislation
Economic Climate
Stakeholders
If the pound becomes weaker, a UK importer may experience...
A decrease in sales and costs
An increase in sales and costs
A decrease in costs and an increase in sales
An increase in costs and a decrease in sales
Which of the following are businesses most likely to experience a decrease in demand as consumer incomes rise?
A budget gym
A designer clothes store
A new car dealership
A discount supermarket
An upmarket restaurant
Which of the following areas of law prevents businesses from treating customers unfairly?
Employment Law
Health and Safety Law
National Minimum Wage
Consumer Law
Which of the following statements relating to employment law is true
Employees...
Do not have to be provided with equal pay for work of equal value
Are not entitled to health and safety training
Do not have to be provided with a safe working environment
Must be paid a minimum amount as set out by the government
Which of the following statements relates to consumer law?
Businesses are required to provided and maintain safety equipment
Goods sold must be free from defects and be safe to use
Businesses must provide employees with any necessary safety training
The employer and employee have a duty to maintain a safe workplace
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?
Employers may be publicly named and shamed
Employers will be paid any money owed to them by employees
Employees may be sued
Employees will be told to pay outstanding amounts to employers
Employers may be taken to court
Which two of the following are benefits to a business of abiding by employment law?
Help retain employees
Number of work related accidents should increase
Employee motivation increases
Increases volume of administration and paperwork in the business
Time consuming for the employer
Which of the following definitions best describes digital communication?
The use of the internet to create online communities e.g. Twitter , Facebook
Electronic exchange of information e.g. email , social media
The facility used between customers and businesses to pay for goods and services e.g. Apple Pay
When buyers and sellers come together to trade in a virtual location e.g. over the internet
In which of the following situations is a local NHS doctor's surgery most likely to use digital communications ?
To provide information on its website for customers about their goods
To message patients to remind them of their appointments
To receive payment for goods/ services sold in the surgery
To sell goods to patients
Which two of the following are disadvantages to consumers of buying clothing through e-commerce?
Risk of personal details being fraudulently used
Likely to incur increased costs and time of returning any unwanted items
Higher prices charged due to less competition online
Business will need to follow legislation linked to trading online
Difficult to establish brand loyalty
Which of the following describes one way employees could have an impact on business activity?
By demanding a longer payment period for suppliers
By negotiating better working conditions
By no longer purchasing the goods or services of a business
By increasing the amount of tax payable on profits
Which of the following stakeholders is most likely to have the objective of maximising pay?
Local community
Customers
Owners
Employees
The rise of the internet has meant that many businesses costs are:
Lower as there is more need for expensive retail premises
Lower as there is less need for expensive retail premises
High as there is more need for expensive retail premises
Higher as there is less need for expensive retail premises
Which of the following businesses is most likely to locate close to the market?
A clothes retailer with a national chain of fixed premises stores
An internet book store
A manufacturer of high performance sports cars
A small chocolate producer
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which of the following is an advantage of operating a business as a public limited company?
It is easier to raise finance as the business can sell shares
Owners have unlimited liability
Partners can provide specialist knowledge and skills
It is very quick and easy to set up
Which two of the following statements are always true of a sole trader?
The owner has day to day control of the business
Liability is limited
Losses will be shared between partners
Shareholders own the business
Liability is unlimited
Which two of the following are advantages of starting up and running as a franchise operation ?
The franchisee:
Has to provide all equipment such as IT systems
Gets advice and training from the franchisor
Has to pay royalties to the franchisor
May have to buy goods from the franchisor at a mark-up
Is part of a well-known firm with established brand name and product
Which of the following sources of finance would interest always need to be paid ?
Share capital
A loan from family/friends
Overdraft
Venture capital
Which type of business would venture capitalists be usually interested in investing funds?
An established private limited company
A small business with slow sales
A well-known franchise operation
An entrepreneurial start-up with the possibility of high profits
Which source of finance leads to a dilution of business ownership
Personal savings
Bank Loan
Share capital
Sale of assets
Which one of the following statements is true in relation to cash-flow and/or profit?
Cash-flow and profit have the same meaning in business
Businesses should always be more concerned about profit than cash flow
The profit figure is always shown in the cash-flow forecast
A positive cash flow is important to ensure business survival
The correct formula to calculate net cash flow in a cash-flow forecast is :
Total cash inflows - total cash outflows in a given period
Total cash outflows - total cash inflows in a given period
Opening balance - closing balance
Opening balance + closing balance
Which two of the following are benefits to a business of having a positive cash flow?
The business will be guaranteed to make a profit
The business will no longer need to produce a cash-flow forecast
All employees in the business will be highly productive
It will help to prevent insolvency
It will help to secure business survival
Which one of the following best describes a fixed cost?
A cost that:
Changes directly with output
Stays the same regardless of output
Only needs to be paid once, when the business first starts-up
Needs to be paid once a month
Which two of the following are examples of variable costs?
Salaries of management
Insurance
Rent
Raw materials
Packaging
Which two of the following are advantages to a business to a business of having a high margin of safety?
The business will be operating below its break even point
The business's sales price will be consistently set at a high level
The business will have a larger gap between its current level of output and its break even point
The business will be producing small volumes of output
The business will have more flexibility in its pricing decisions
Which of the following statements best describes the term Competition?
When different businesses attempt to attract different customers
When businesses do not have any rivals
When different businesses attempt to attract the same customers
When different businesses have only one supplier of raw materials
In an extremely competitive market, a business may be forced to:
Increase costs to enable price reductions
Increase costs to enable price rises
Cut costs to enable price reductions
Cut costs to enable price rises
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:
Market segmentation
Market share
Market mapping
Marketing mix
A business manufactures and sells vegetarian ready meals. Which type of market segmentation would the business most likely use?
Location
Lifestyle
Gender
Age
Segmenting the market can help a business because:
Prices are most likely to be set that customers are prepared to pay
Products developed will always successfully sell on the market
The distribution channel chosen will always ensure high sales
Promotion methods chosen will be guaranteed to reach the customer
Which of the following best describes the term Quantitative data?
Data based on opinions, beliefs and attitudes
Data collected using primary research
Data based on numbers that can be analysed statistically
Data collected using secondary research
Which of the following is a method of primary market research?
Internet
Government reports
Questionnaires
Market reports
