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Theme One Business EDEXCEL

Total questions: 38

Worksheet time: 19mins

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 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

11.

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

12.

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

13.

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

14.

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

15.

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

a)

Product

b)

Price

c)

Production

d)

Place

16.

Which one of the following has limited liability?

a)

Private Limited Company

b)

Partnership

c)

Sole Trader

d)

Shareholder

17.

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

18.

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

19.

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

20.

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

21.

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

22.

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

23.

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

24.

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

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.

A budding entrepreneur who is looking to set up a new enterprise is concerned that the business might not provide enough of a stable income to maintain his current standard of living. Which of the following best describes this risk?

a)

Inability to break even

b)

Lack of security

c)

Business failure

d)

Lack of independence

28.

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

29.

Which of the following statements best describes the term, reward?

a)

The probability that something will go wrong

b)

The chance of loss or damage

c)

When a hoped for outcome does not happen

d)

The benefits gained through business activity

30.

An entrepreneur has developed a unique product to launch into the market. Which of the following best describes how this new business idea came about?

a)

An original idea

b)

Adapting an existing product

c)

Adapting an existing service

d)

Adapting an existing idea

31.

Which of the following best describes the term, obsolete? When consumers:

a)

Demand more of a particular product or service

b)

Want, and can afford, to buy more products and services

c)

Can no longer afford to buy a particular product or service

d)

No longer want to buy a product or service

32.

Lack of overall planning and poor decision-making can lead to business failure. This is known as:

a)

Poor management

b)

Poor quality

c)

Poor understanding of the economy

d)

Poor sales levels

33.

A product of service is obsolete when sales...

a)

Start to rise

b)

Rise rapidly

c)

Growth slows

d)

Fall or come to an end

34.

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

35.

What source of finance is for short term emergencies

a)

Overdraft

b)

Bank Loan

c)

Venture Capital

d)

Crowdfunding

36.

What is trade credit

a)

A short term source of finance from a supplier for stock.

b)

A long term source of finance from a supplier for stock

c)

A short term source of finance from a bank for stock

d)

A long term source of finance from a bank for stock

37.

Businesses that have unlimited liability are

a)

incorporated

b)

unincorporated

c)

Limited companies

d)

Franchises

38.

Which is part of the marketing mix

a)

Product

b)

People

c)

Plans

d)

Advertising