WorksheetsEdexcel A Level Business Paper 3 2022
Total questions: 34
Worksheet time: 17mins
What is the selling price of an item which costs £5 to make and has a 50% mark up (profit added)?
£7.50
£5.00
£10.00
What is an advantage of price skimming?
Gains market share
Covers costs and breaks even
Allows an organisation to make the largest profit possible
What is Loss Leader pricing?
A product is sold at production cost price
A product is sold at less than cost price
A product is sold to make a small profit
_________ refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants.
Selection
Training
Recruitment
Induction
The poor quality of selection will mean extra cost on _______ and supervision.
Training
Recruitment
Work quality
None of the above
The process of hiring an external provider to do the work that was previously done internally
Offshoring
Reshoring
Outsourcing
Insourcing
A business policy of permanently reducing production capacity is known as:
Outsourcing
Rationalisation
Redundancies
Depreciation
A disadvantage of a business having significant spare capacity is that:
Higher return on investment in fixed assets
Employees may become de-motivated and bored
Business can respond to sudden increases in demand
Fixed costs are a low percentage of total costs
Which of the following might result in increased spare capacity?
A major competitor goes bust
Successful response to a marketing campaign
Closure of a surplus production facility
A major product reaches end of product life cycle
How do train companies improve capacity utilisation
Serve food onboard
Charge more during peak times and less during off peak
Run more regular services
Buy more trains
Mothballing means that
A business has too many resources
Leaving machines and building unused and unmaintained.
A business reduces its resources
Leaving machines and building unused but maintained.
The Business Cycle describes :
a popular form of transport to the office
up and downs of interest rates
up and downs of economic growth
up and downs of inflation rate
If an economic boom leads to inflation then :
taxes and interest rates will be lowered
taxes and interest rates will be increased
government will spend more on big projects
Which of the following demonstrates the impact of a weak pound on a UK business that imports raw materials and exports finished goods?
Imported raw materials dearer and exported finished goods cheaper
Imported raw materials cheaper and exported finished goods cheaper
Imported raw materials dearer and exported finished goods dearer
Imported raw materials cheaper and exported finished goods dearer
Gross Domestic Product (GDP) refers to
the total monetary value of a country based on goods and services produced
the total value of all goods and services that are required for the production process
the total value of all goods and services produced in a business in a given period of time
the total value of all goods and services produced in a country in a given period of time
Which of the following is the most likely cause of cost - push inflation?
An increase in consumer demand
An increase in demand for a country's exports
A rise in demand for essential commodities such as oil
An increase in government subsidies to industry
Which of the following statements relates to consumer law?
Businesses are required to provide 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 & employee have a duty to maintain a safe workplace
Which of the following is most likely to be true if a business obeys consumer law?
Sales are likely to decrease
Bad publicity may be avoided
Fines will be issued and will need to be paid
Reputation in the marketplace decreases
Porter’s five forces are:
The extent of industry rivalry, Bargaining power of buyers, Bargaining power of suppliers, Threat of substitutes, Threat of new entry
The extent of industries, Bargaining power of buyers, Bargaining power of suppliers, Threat of suspension, Threat of new entry
The extent of industry rivalry, Bargaining power of buyers, Bargaining power of suppliers, Threat of substitutes, Threat of new bargins
The NPV method discounts shrinks...
the future inflows into present values by multiplying them by a set of cost factors
the future inflows into present values by dividing them by a set of discounting factors
the future outflows into present values by multiplying them by a set of discounting factors
the future inflows into present values by multiplying them by a set of discounting factors
A shareholder’s perspective differs from that of a stakeholder in that their interests are mostly related to
environmental issues
profitability
the threat of new entrants
product quality
_____ usually include creditors and suppliers
Internal shareholders
Internal stakeholders
External shareholders
External stakeholders
____ argues that businesses should take account of its responsibilities to stakeholders rather than just focus on shareholders.
The profit concept
The consumer concept
The shareholder concept
The stakeholder concept
Which method of protection raises revenue for the government?
domestic subsidies
embargo
quota
tariff
An argument against trade protectionism is that it will increase
competition for domestic industries
domestic price level
the current account deficit
opportunities for domestic infant industries
Which of the following is NOT an argument in favor of protectionism?
Protectionism shields infant industries from foreign competition
Protectionism safeguards workers’ jobs
Protectionism promotes industries that are essential to national security
Protectionism makes domestic firms more competitive in the long run
A total ban on imported products is a .....
Tariff
Quota
Embargo
Subsidy
Over-production in developed countries may be released into the markets of developing nations, which undercuts domestic prices and domestic producers may be forced to leave the market. This is called....
Dumping
Quota
Tariffs
Embargo
In 2015 the EU paid British Farmers 10p for every pint of milk produced. This is an example of a .....
Tariff
Quota
Form of Financial Protectionism
Subsidy
