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Business Edexcel Theme 2

Total questions: 62

Worksheet time: 31mins

Name
Class
Date
1.
What type of business is Tesco?
a)
LTD (Private Limited Company)
b)
Sole Trader
c)
PLC (Public Limited Company)
d)
Partnership
2.

who has unlimited liability

a)

stakeholder

b)

sole trader

c)

partnership

d)

public limited company

3.
What is the order of the product life cycle?
a)
growth, extension strategies/decline, maturity, introduction
b)
introduction, maturity, growth, extension/decline
c)
introduction, growth, maturity, extension/decline
d)
extension strategies/ decline, maturity, growth, introduction
4.
Which one of these is NOT and advantage of being a PLC?
a)
Ability to raise finance through share capital
b)
Limited Liability
c)
Increased public & media attention
d)
Considered more prestigious and reliable
5.
in a bar gate stock graph, what is the maximum level for?
a)
maximum revenue achievable
b)
maximum amount of stock
c)
maximum level to restock
d)
mximum amount of weeks stock can last
6.
what are examples of organic growth ?
a)
external growth
b)
takeover
c)
new products developed
d)
merger
7.
what is meant by the term 'External sources of finance'?
a)
Finance found outside the business
b)
people who find other businesses interesting
c)
A Business growth
d)
research and development of business
8.
Which one of the following is an example of a barrier to international trade?
a)
Import
b)
Export
c)
Tarrif
d)
Globalisation
9.
which one of the following is an example of how a business might evolve as it grows?
a)
market conditions
b)
reducing workforce
c)
greater share capital
d)
focus on survival
10.
What is the formula for revenue?
a)
gross profit-sales
b)
price x sales
c)
sales+net profit
d)
price x quantity sold
11.

which one of the following is not an example of a barrier to international trade?

a)

quota

b)

exchange rate complications

c)

tariff

d)

globalisation

12.
what is buying and selling online called?
a)
ecommerce
b)
shareholders
c)
shopping
d)
marketing mix
13.
what does the term globalisation mean ?
a)
operating in a large market
b)
operating within only one country
c)
operating your business in a niche market
d)
operating on an international scale
14.
what are disadvantages to a business exporting goods overseas?
a)
expenses are high
b)
access to foreign markets
c)
you have to buy a boat
d)
diseases
15.

Which of the following is most likely to be a benefit of business growth?

a)

Increased costs

b)

Increased sales

c)

Increased competition

d)

Increased chance of failure

16.

Which of the following is NOT a method of internal (organic) growth?

a)

Increasing output

b)

Gaining new customers

c)

Developing new products

d)

Merging with / taking over another business

17.

Dyson started by selling vacuum cleaners...they now sell hand dryers, washing machines, and fans. Which type of business growth is this an example of?

a)

Internal (organic) growth

b)

External growth

18.

The first Tesco store was built in London. Tesco have since opened stores all accross the UK and in other countries. Which type of business growth is this?

a)

Internal (organic) growth

b)

External growth

19.

Kraft took over Cadbury in 2010. Which type of business growth is this an example of?

a)

Internal (organic) growth

b)

External growth

20.

Some mergers / takeovers in the UK are blocked by the government (CMA). This is because mergers / takeovers can lead to a lack of choice for consumers. A lack of competition between businesses in a market could lead to...

a)

Lower prices and better customer service

b)

Higher prices and worse customer service

21.

Which of the following is an example of a horizontal merger/takeover?

a)

A chocolate producer buys another chocolate producer

b)

A chocolate producer buys a cocoa farm

c)

A chocolate producer buys a chain of coffee shops

d)

A chocolate producer buys a car producer

22.

Which of the following best describes the term 'diversification'?

a)

To join with a business in the same industry as you

b)

To join with a business that can supply you with raw materials

c)

To join with a business that sells something similar to you

d)

To join with a business in a completely unrelated industry

23.

If a business currently has sales of £250,000 in a market worth £2 million, what is it's market share?

a)

10%

b)

12.5%

c)

17.5%

d)

25%

24.

As businesses grow in size, they usually benefit from 'economies of scale' - what does this mean?

a)

Lower total costs

b)

Lower average costs per unit

c)

Higher total costs

d)

Higher average costs per unit

25.
Skilled workers are required in flow production.
a)
True
b)
False
26.
Machinery can be used to mass produce items in Job Production.
a)
True
b)
False
27.
Job production is where each item is made to specific instructions and each item is unique.
a)
True
b)
False
28.
Batch Production is where products are made in groups of similar products.
a)
True
b)
False
29.
Flow production would be used for:
a)
Cans of Coke
b)
Fitted Kitchen
c)
Walkers bags of crisps
30.
Batch Production is likely to be used at Cadbury's.
a)
True
b)
False
31.
Flow production is used when hundreds of items the same need to be made.
a)
True
b)
False
32.
Job Production is where the products are:
a)
All the same
b)
Unique
c)
Similar but some groups vary
33.
Which type of production would be used at Warburtons?
a)
Job
b)
Batch
c)
Flow
34.
Which method of production would be used for a Stradivarius violin?
a)
Flow
b)
Job
c)
Batch
35.
Which type of product would be made using flow production?
a)
Speciality Cakes
b)
Cars
c)
Chocolate Bars
36.
There are 2 methods of production
a)
True
b)
False
37.

Revenue = £100,000

Cost of sales = £50,000

Other expenses = £25,000

What is the gross profit?

a)

£25,000

b)

£50,000

c)

£100,000

d)

£75,000

38.

What is the gross profit margin formula?

a)

Net profit / Total revenue x 100

b)

Gross profit / Total revenue x 100

c)

Total revenue / Gross profit x 100

d)

Cost of sales / Total revenue x 100

39.

Revenue = £80,000

Cost of sales = £30,000

Other expenses = £10,000

What is the total net profit?

a)

£70,000

b)

£65,000

c)

£50,000

d)

£40,000

40.

Revenue = £100,000

Cost of sales = £50,000

Other expenses = £40,000

What is the gross profit margin?

a)

35%

b)

50%

c)

10%

d)

85%

41.

What will impact the gross profit margin?

a)

Cost of sales increase

b)

Decrease in operating (other) expenses

c)

Sales price charged remaining the same

d)

Increase in operating (other) expenses

42.

Revenue = £50,000

Cost of sales = £25,000

Other expenses = £5,000

What is the total net profit?

a)

£10,000

b)

£25,000

c)

£20,000

d)

£30,000

43.

What is the net profit margin formula?

a)

Net profit / other expenses x 100

b)

Net profit / Cost of sales x 100

c)

Gross profit / Total revenue x 100

d)

Net profit / Total revenue x 100

44.

What is meant by the term net profit?

a)

It is what is left over after gross profits have been deducted

b)

It is what is left over after all costs have been deducted

c)

It is what is left over after cost of sales have been deducted

d)

It is what is left over after operating costs have been deducted

45.

What does the net profit margin tell us?

a)

How effectively a business turns operating expenses into profits

b)

How effectively a business turns cost of sales into profits

c)

How effectively a business turns costs into profits

d)

How effectively a business turns sales into profits

46.

Why might the gross profit margin go down?

a)

The enterprise has improved their profitability

b)

Enterprise charging lower prices

c)

Enterprise charges the same prices

d)

Enterprise charging higher prices

47.

Why might the gross profit margin go up?

a)

Cost of sales have decreased

b)

Cost of sales have increased

c)

Operating (other) expenses have increased

d)

Operating (other) expenses have decreased

48.

What does the net profit margin tell us?

a)

How many staff are employed

b)

What type of ownership the business has

c)

How efficiently a business is run

d)

The cash inflows and outflows

49.

Gross profit is the difference between ____

a)

Sales revenue and total costs

b)

Sales revenue and cost of sales

c)

Sales revenue and other expenses

d)

Sales revenue and fixed costs

50.

A fall in the gross profit margin might suggest ____

a)

that suppliers are charging higher prices

b)

that suppliers are charging lower prices

c)

that the business is charging customers higher prices

d)

that operating (other) expenses have increased

51.

What is the gross profit margin formula?

a)

Net profit / Total revenue x 100

b)

Gross profit / Total revenue x 100

c)

Total revenue / Gross profit x 100

d)

Cost of sales / Total revenue x 100

52.

Revenue = £100,000

Cost of sales = £50,000

Other expenses = £25,000

What is the gross profit?

a)

£25,000

b)

£50,000

c)

£100,000

d)

£75,000

53.

What will impact the gross profit margin?

a)

Cost of sales increase

b)

Decrease in operating (other) expenses

c)

Sales price charged remaining the same

d)

Increase in operating (other) expenses

54.

Revenue = £50,000

Cost of sales = £25,000

Other expenses = £5,000

What is the total net profit?

a)

£10,000

b)

£25,000

c)

£20,000

d)

£30,000

55.

What is the net profit margin formula?

a)

Net profit / other expenses x 100

b)

Net profit / Cost of sales x 100

c)

Gross profit / Total revenue x 100

d)

Net profit / Total revenue x 100

56.

A Ferrari is likely to have a high price tag because the design mix is focused on which of the following (pick 2)?

a)

function

b)

aesthetics

c)

economic manufacture

57.

A product that has been designed in a way to keep costs (a)   is focusing on economic manufacture

58.

Differentiating your product by creating a strong brand will..

a)

lead to more loyal customers

b)

lead to more competition

c)

lead to lower costs

59.

Differentiating your product can help it to stand out from the crowd. Which of the following are methods of differentiation?

a)

Lower prices

b)

better quality

c)

Unique design

d)

Celebrity endorsements

60.

What are the reasons why profits may fall during the decline stage of the product life cycle?

a)

sales are increasing

b)

sales volume is decreasing

c)

prices may have to be cut due to a saturated market

d)

the business will be spending more on marketing

61.

Which of the following is an extension strategy used by Coca Cola to extend the product life cycle of Coca Cola (select all that apply)

a)

Range of can sizes

b)

Limited edition packaging

c)

Change brand image

d)

New flavours

62.

Which of the following product life cycles most resembles that of loom bands?

a)
b)
c)