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WorksheetsBusiness GCSE Theme 1
Total questions: 40
Worksheet time: 20mins
Asset
changing an existing product or process
any item of value that a business owns, such as machinery or premises.
the proportion of sales in a market that are taken by one business
the flow of goods and services out of a country
Overdraft
A facility offered by a bank that allows an account holder to borrow money at short notice
When an individual is unable to pay their debts
When a company ceases trading
A long term source of finance
Brand loyalty
This is how you market your business
A customers willingness to buy a product from a particular business rather than from competitors
The logo that you use to advertise your business
A customers willingness to buy a product from competitors
Business plan
A document that tells you who owns it
A document that outlines how a business will advertise their products
A document that outlines how a business will fund a new business only
A document that outlines how an entrepreneur is going to set up a new business
Competitive advantage
Who your competitors are
An advantage a business has over its rivals that is unique and sustainable
A document showing you whats wrong with your business
A financial statement showing you your advantages over your competitors
Consumer
The person who invents the product/service
The person who buys the product/service
The person who buys and uses the products/service
The person who sells the product/service
Convenience
Making life easier for customers, i.e. great location or product that saves time in preparation or consumption
Making life harder for customers, i.e. making it hard to get, which means higher demand
Making life cheaper for customers, i.e. offering the product at a loss
Making life better for customers, i.e. the product will improve their life
Customer base
The clients who do not buy/sell to the business
The clients who make money from the sale of products/services
The clients who sell the products/services to a business
The clients who buy the products/services of a business
Differentiate
The strength and number of competitors operating in a market
Show that a product is different from similar products
Giving a product or service 'personality' with a name
Features of a product
E-Commerce
Paying your bills online
A telephone company
Using the internet to carry out business transactions
Changing an existing product with technology
Which of these has unlimited liability?
Sole Trader
Private Limited Company
Public Limited Company
Multi National Company
What is the primary aim for all businesses?
To survive
To make profit
To expand
To create employment
Business plans should be SMART what do the letters R and T stand for?
Reasonable and Team
Realistic and Time Specific
Rational and Timely
Responsible and Targeted
Revenue - …………….. = Gross Profit
Cost of Sales
Fixed Costs
Variable Costs
Total Costs
What type of costs change according to the number of units required?
Fixed Costs
Variable Costs
Start Up Costs
Expansion Costs
Which of these is often a benefit of expansion?
Lower total costs
Improved quality
Guaranteed profit increase
Economy of Scale
Operating ethically often increases costs because...
Raw materials are coming from further away
Raw materials are in short supply
Suppliers are paid more for the raw materials they produce
Advertising costs increase to promote their brand image
Why are many car manufacturers moving away from producing petrol and diesel models?
Electric cars are in high demand
They are too expensive to manufacture
It is not a sustainable business model
There is a shortage of raw materials
What must business owners be aware of when requesting a variable rate bank loan?
The interest rate could change at any time causing higher repayment costs
The exchange rate could change at any time causing higher repayment costs
The rate will not change during the repayment period
The bank may request all of the money back at any given time
What can business owners apply for to prevent rivals from copying their design features?
Trademark
Copyright
Patent
Restraining Order
Which is an example of an internal source of finance?
Owners' Funds
Venture Capital
Overdraft
Trade credit
Which is an example of an external source of finance?
Owners' Funds
Sale of assets
Retained profits
Bank loan
What is an advantage of an overdraft?
There is never interest
You can pay in smaller installments
Useful for relatively small sums and short term finance
You don't have to pay it back
What type of finance involves less profit going to the owners?
Retained profit
Sale of assets
Overdraft
Bank loan
Which of the following facts about crowd-sourcing is/are TRUE? (choose as many as apply!)
It is a method of internal fund raising
Can also be an excellent marketing tool for a business
It doesn't matter if the product launched is not successful
Great way of raising money quickly, esp. for a new business idea
Short Term sources of finance usually require money to be repaid within.....
1 week
1 month
6 months
1 year
Long Term sources of finance are for when the time needed to pay the money back is more than...
6 months
1 year
5 years
10 years
Which of the following would be the most appropriate source of funds for a new business (which is just launching) that makes mobile phone accessories?
Retained Profit
Sale of Assets
Share Capital
Trade Credit
What is the break even point
Where sales revenue is the same as fixed costs
Where sales revenue is the same as variable costs
Where sales revenue is the same as total costs
Where fixed costs is the same as variable costs
Businesses that have unlimited liability are
incorporated
unincorporated
Limited companies
Franchises
In limited liability personal assets are protected
True
False
Neither
Both
What is trade credit
A short term source of finance from a supplier for stock.
A long term source of finance from a supplier for stock
A short term source of finance from a bank for stock
A long term source of finance from a bank for stock
Which is part of the marketing mix
Product
People
Plans
Advertisinf
Which of these is an example of primary research
Focus Group
Internet
Company reports
Government statistics
Which of these is an example of qualitative market research
Government statistics
Questionnaire
Focus group
Trade reports
What is a business plan?
Written document that only outlines the business practices of the new business.
Written document that describes the financial aspects of the business.
Written document that only describes the ownership of the business.
Written document that describes all the steps necessary for opening and operating a successful business.
