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WorksheetsPaper 1 (upto 2021)
Total questions: 75
Worksheet time: 38mins
(2021) Which of the following is a financial reward for enterprise?
Authority
Profit
Success
Wages
(2021) A hairdresser charges the same price for haircuts as two other hairdressers in the local area.
Which pricing method is the hairdresser using?
Competitor pricing
Cost-plus pricing
Penetration pricing
Promotional pricing
(2021) The manager of a petrol station uses on-the-job training to train new employees.
Which one of the following is a disadvantage of using on-the-job training to train three new sales assistants?
Likely to be more expensive than sending the employees on a training course
Motorists may experience lower standards of customer service
No petrol can be sold while the training takes place
The employees will be trained on different equipment to that at the garage
(2021) Satisfying the needs of customers is:
a legal requirement
a market research task
a purpose of business activity
the role of the human resources function
(2021) Two clothing manufacturers have different objectives.
Which of the following is not a possible reason why the two businesses have different objectives?
One business makes coats and the other makes jeans
Only one of the businesses makes designer clothing
There is little innovation in the clothing industry
They have different owners
(2021) The owner of a salad bar has done some market research.
Which of the following is an example of a secondary research source the salad bar owner could have used?
Giving out free samples of the salads and collecting feedback
Looking at magazines on healthy eating and nutrition
Online questionnaires emailed to regular customers
Visiting a rival store and noting down the types of salads it sells
(2021) A farmer needs to order a spare part for a tractor. The part is needed urgently but the farmer does not know the name or code number of the part.
Which of the following is the best way for the farmer to deal with this situation?
Post a message on social media saying that the tractor has broken down
Send a letter to the parts supplier showing a sketch of the part required
Send an email to the parts supplier attaching a photo of the part required
Upload a video to the farm’s website showing the importance of the tractor
(2021) A producer chooses to sell its goods to a wholesaler rather than to a retailer.
Which of the following is an advantage to the producer of including a wholesaler in its distribution channel?
The producer is likely to be able to charge higher prices
The producer will have a wider span of control
The producer will have less competition
The producer’s storage costs are likely to be lower
(2021) Jacqui works as a marketing assistant at her local library.
Which of the following would be part of Jacqui’s job role?
Advertising a vacancy for a senior librarian
Arranging induction training for a new library assistant
Designing a competition to encourage people to read more
Improving the way the books are displayed
(2021) Which of the following is not a form of staff development?
Academic qualifications
Apprenticeships
Induction
Vocational qualifications
(2021) According to the diagram:
sales grew quickly at first but are now in decline
sales grew quickly at first but are now in maturity
sales grew slowly at first but are now in decline
sales grew slowly at first but are now in maturity
(2021) Eve is a restaurant owner. She has successfully used social media to attract a lot of new customers to eat in her restaurant.
This is an example of:
diversification
invention
organic growth
skimming
(2021) Xaio and Zhou own a building firm that employs 50 workers. Xaio and Zhou are concerned about the costs of recruitment. They are constantly having to advertise for replacement workers.
Which of the following would help Xaio and Zhou deal with this problem?
Decrease the hourly rate paid to the workers
Find ways to increase employee retention
Give the workers fewer fringe benefits
Obtain additional finance from the bank
(2021) A store which sells frozen food buys oven chips for 29p a pack. The store usually sells the oven chips for 99p a pack.
How much should the store charge for the oven chips if it wishes to use them as a loss leader?
29p a pack
Between 29p and 99p a pack
Less than 29p a pack
More than 99p a pack
(2021) A business whose main objective is to survive is likely to be:
experiencing growth in its market share
making a large profit
well established and successful
working hard to stay in existence
(2019) Which one of the following is a role of human resources in business?
Developing new products
Increasing employee retention
Maximising revenue
Offering price reductions
(2019) A fast food restaurant is currently charging a price of 60p for its new healthy snack. The fast food restaurant intends to increase the price to £2.25 once the healthy snack has become more popular with customers.
The current price is an example of:
competitor pricing
cost-plus pricing
penetration pricing
price skimming
(2019) Which one of the following is unlikely to be a characteristic of a successful entrepreneur?
Being able to create opportunities
Being confident in new situations
Being determined to work through problems
Being uncomfortable with taking risks
(2019) Which of the following is a benefit to a business of advertising on local radio?
Can target a specific geographical area
Detailed financial information can be included
Free samples can be given out with the advertisement
The product can be seen and demonstrated
(2019) Madame Co’s average quarterly spend on market research is:
£1.05 million
£1.075 million
£2.15 million
£4.3 million
(2019) Which of the following is a benefit to an entrepreneur of having limited liability?
All profits are tax free
Own possessions are not at risk
Productivity will fall
Suppliers are more willing to supply
(2019) According to the table, which one of the following statements is true?
Demand for all three drinks decreased significantly
Demand for Drink A increased by 1.1 million litres
Demand for Drink B fell by 10%
Demand for Drink C decreased by a smaller percentage than Drink B
(2019) The ‘objectives of a business’ are:
negative comments from the local community
the buildings and equipment the business owns
the items the business makes and sells
what the business intends to achieve
(2019) Which of the following is an advantage to a fruit farm of employing temporary workers to pick the fruit?
Discrimination laws do not apply because the work is only for a few weeks
Induction training will not be required because the work is not permanent
The number of workers employed can be varied according to the season
Workers are likely to be more committed to their jobs and pick more fruit
(2019) A national retailer intends to trial a new product in some of its stores.
Which of the following is not a benefit of trialling the product?
It avoids wasting money on an unsuccessful national launch
It helps identify the target market
It requires a lot of national advertising and promotion
It shows whether there is sufficient demand for the product
(2019) A market research agency needs to constantly improve its digital communications to keep up with the competition. In 2017 it spent £250 000 on digital communication. In 2018 it spent £525 000.
The agency’s percentage increase in spending on digital communications from 2017 to 2018 was approximately equal to:
48%
52%
110%
210%
(2019) A photography business is owned by three sisters. The sisters have unlimited liability. Which one of the following types of business does the sisters own?
A partnership
A private limited company
A public limited company
Sole trader
(2019) Which one of the following is required by law?
All employees must be given a voucher for a free eyesight test each year
Employees who work from home must work a maximum of 16 hours a week
Everyone who is self-employed must have private medical insurance
Full-time employees must be given at least 5.6 weeks paid holiday per year
(2019) Radi owns Chimney Restore Ltd, a company he set up in 2018. The company has grown rapidly and now employs 12 workers. However, Radi is becoming increasingly concerned about the level of risk he faces as the owner of a rapidly growing business.
Which of the following would help Radi to reduce his level of risk?
Becoming a sole trader
Carefully planning all business activity
Ignoring the needs of customers
Making employees work long hours
(2019) Which of the following is a benefit to a business of using off-the-job training?
Large numbers of employees can be trained at the same time
Likely to be cheaper than on-the-job training
The training can take place while the employee is working
Workers need to be paid for time spent doing off-the-job training
(2020) Understanding customer needs is the main purpose of:
employee retention
innovation
market research
the product lifecycle
(2020) A manufacturer of jam buys a fruit farm. This is an example of:
a business partnership
a vertical takeover
diversification
flexible working
(2020) A business may choose to have a flat organisational structure because it:
gives employees more opportunities for promotion
lengthens the organisation’s chain of command
reduces the likelihood of mistakes in vertical communication
slows down the organisation’s response to changes in the market
(2020) Which sizes of the sailing jumper does the data suggest Sailing Clothes Ltd should concentrate on producing?
L, XL and XXL
M, L and XL
S, L and XXL
S, XL and XXL
(2020) Which of the following types of ownership is most suitable for an established business that needs to raise a large amount of capital to expand overseas?
Partnership
Private limited company
Public limited company
Sole trader
(2020) Gina is an employee on a dairy farm. One benefit to Gina of staff development is:
higher profits
increased retention of farm workers
more opportunities for promotion
the animals will be better cared for
(2020) A motorcycle manufacturer doubled its spending on promotion. This has led to motorcycle sales increasing to £15 million from £12 million.
What is the percentage increase in motorcycle sales?
12.5%
20%
25%
50%
(2020) A wine enthusiast has spotted an opportunity to turn their interest into a business by becoming a blogger. This is called:
delegation
enterprise
market research
productivity
(2020) Which one of the following is not a potential benefit of improving communication between a business and its customers?
Better customer service
Greater market share
Higher chances of survival
Increased risk
(2020) A publishing company’s marketing mix identifies:
appropriate sources of market research
digital distribution channels for its books
how many short-story authors to interview
which of its editors have training needs
(2020) What is the mean average managerial span of control at POD Ltd?
7.7
8.5
9.2
10.2
(2020) Which one of the following is not a risk of entrepreneurship?
Failing health
Loss of money
Self-satisfaction
Strained personal relationships
(2020) A business is deciding on a marketing mix for its latest product.
The product is • innovative • of the highest quality • expensive to produce.
The marketing mix for this business is most likely to also include:
advertising aimed at low income customers
placing the product for sale in high income locations
promotion using free samples
using social media to discuss the limitations of the product
(2020) A business has gained more customers by improving the way it markets its products. Which one of the following statements must be true for this business?
The business has developed a new product
The business has grown organically
The business has increased its market share
The business has made a profit
(2020) A jet ski retailer with limited funds has a problem with the motivation levels of its 25 sales assistants. Which one of the following methods should the jet ski retailer use to improve the sales assistants’ motivation levels?
Increase the sales assistants’ pay rate by £3 per hour
Offer sales assistants a bonus of £500 for each jet ski sold
Reduce the number of fringe benefits given to employees
Set up a ‘seller of the month’ award scheme
(P2018) A flat organisational structure has:
a long chain of command
few levels of authority
narrow spans of control
no specific person in overall charge
(P2018) A focus group is an example of:
a digital distribution channel
a primary market research method
market segmentation
point of sale promotion
(P2018) Which one of the following is a disadvantage of being a sole trader?
May need to work long hours
Not being allowed to employ staff
Profits must be shared with others
Shares must be sold on the stock exchange
(P2018) The percentage change in the training costs is approximately equal to:
–20.6%
–17.1%
17.1%
20.6%
(P2018) A bakery manufactures and supplies a range of bread loaves to local supermarkets.
Which of the following is the most likely effect of the bakery employees refusing to work?
Deliveries to supermarkets will be disrupted
Different ingredients will be used to make the bread loaves
More bread loaves will be produced
The bread market will become segmented
(P2018) Which one of the following is not a benefit to a business of using television advertising to promote its products?
Celebrity endorsements can be used
Financial risks are large
Millions of potential customers can be reached
Sound and moving images are very effective
(P2018) According to the pie chart, which one of the following statements is true?
Firm A controls a third of the market
Firm B has the smallest market share
Firm C controls a quarter of the market
Firm F has the largest market share
(P2018) A telesales company has arranged digital communication training for all relevant employees.
What is the most likely reason for this digital communication training?
The company is trying to reduce employee retention
The company needs to reduce the productivity of its sales staff
The company wants workers to enjoy using social media during their breaks
The company wishes to encourage more of its workforce to work from home
(P2018) Which one of the following is not a role of human resources within a business?
Gaining new customers
Improving employee retention
Processing job application forms
Reducing skills shortages
(P2018) A printing firm is researching the market for road maps.
Which of these would be the main purpose of this market research?
To calculate the amount of paper that needs to be purchased
To find out whether customers are likely to buy the maps
To locate the cheapest supplier of coloured inks
To work out how many maps the workforce could make in a week
(P2018) Employment legislation states that an employee cannot be forced to work more than an average of 48 hours per week in a 17-week period.
Emma worked 782 hours in a 17-week period.
The average amount of time that Emma has worked during the 17-week period is:
0.96 hours per week
16.29 hours per weeK
46 hours per week
13294 hours per week
(P2018) Raj has developed an idea for a new business.
This is an example of:
discrimination
enterprise
flexible working
productivity
(P2018) Which stakeholder does limited liability protect?
Customers
Employees
Shareholders
Suppliers
(P2018) A toiletries manufacturer sells its products to a wholesaler.
Which one of the following correctly shows the distribution channel of the products?
Producer -
Retailer -
Customer
Producer -
Wholesaler -
Retailer -
Customer
Retailer -
Producer -
Wholesaler -
Customer
Retailer -
Wholesaler -
Customer -
(P2018) A frozen food manufacturer is experiencing problems with its freezers. The manufacturer needs its maintenance contractor to repair the freezers urgently.
Which of the following communication methods should the frozen food manufacturer use to deal with this situation?
Post a message on its own website stating it has problems with its freezers
Produce a presentation to explain the problem to the maintenance contractor
Send a letter to the maintenance contractor by first class post
Telephone the maintenance contractor and explain the problem
(S2018) Which of these is an example of digital communication?
A face-to-face interview
A letter
A magazine
A website
(S2018) What is the final stage of the product life cycle?
Decline
Delegation
Distribution
Diversification
(S2018) Which of the following is an internal stakeholder of a business that trades as a partnership?
A customer
A shareholder
A supplier
An employee
(S2018) Which of the following are the customers of a business most likely to be interested in?
Employee wages
Job security
Product range
Share dividends
(S2018) What is the market share of Firm E?
25%
30%
33.3%
90%
(S2018) Invention involves:
behaving dishonestly
creating new products
developing existing products
discrimination in the workplace
(S2018) In response to market research data, a hairdressing salon reduces the price it charges for a haircut from £22.00 to £18.00.
The percentage reduction in the price charged for a haircut is approximately
4.5%
5.5%
18.2%
22.2%
(S2018) Which one of the following is not a benefit to a business of improving employee retention?
Cost saving
Less time spent on recruitment
Lower selling price
Reduced need for training
(S2018) Who is a director’s subordinate?
A customer
A manager
A shareholder
A supplier
(S2018) A well-known restaurant chain buys another well-known restaurant chain.
What is this an example of?
A horizontal takeover
A vertical merger
Diversification
Innovation
(S2018) One benefit to a hospital of encouraging staff development is:
increased skill shortages
improved patient care
lower morale of doctors and nurses
more medical staff can be employed
(S2018) A small business that sells baby clothes has done some market research using a range of information sources.
Which of the following would have been obtained from internal data?
Articles in parenting magazines
Competitor websites
Government statistics on birth rates
Sales figures showing the shop’s best-selling products
(S2018) Which one of the following is not a benefit of being a sole trader?
Keep all profits
Own boss
Pursue personal goals
Shared responsibility
(S2018) Which one of the following is a benefit to a flower shop of employing extra temporary sales staff on Valentine’s Day?
More customers can be served
Roses can be sold for cheaper prices
The flowers will be fresher
Workers can be paid less than the minimum wage
(S2018) A firm only has the resources to introduce one new product to the market. The results of its market research survey are shown below:
* 5% of women and 18% of men said they would consider buying the product.
* Of these, 30% favoured the basic model and 70% favoured the advanced model.
Which one of the following does the market research suggest it would be best for the firm to do?
Produce the advanced model and target men
Produce the advanced model and target women
Produce the basic model and target men
Produce the basic model and target women
