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Mock A Level Business Revision Y12

Total questions: 82

Worksheet time: 48mins

Name
Class
Date
1.

Marketing provides the link between a business and the (a)  

2.

The exchange process typically involves an individual or organisation looking to satisfy a need or want by acquiring a good or service in exchange for (a)  

3.

Relationship marketing looks to build what type of relationship between a company and its customers?

a)

Profitable

b)

Short term

c)

Transactional

d)

Long term

4.

What is the best definition of a market?

a)

A place, real or virtual, where buyers and sellers come together

b)

A place in the centre of town where you can buy vegetables

c)

A process by which companies create value for customers

d)

A way of satisfying customers in order to create value

5.

Marketing objectives need to be SMART. What does this acronym stand for?

a)

Specific, marginal, acceptable, respectable and timed

b)

Specific, measurable, adequate, relevant and time bound

c)

Specific, marketing, achievable, relevant and time bound

d)

Specific, measurable, affordable, relevant and timed

e)

Specific, measurable, achievable, relevant and time bound

6.

A marketing objective might include sales. Sales can be measured in terms of what?

a)

Sales value and sales units

b)

Sales volume and sales performance

c)

Sales value and sales volume

d)

Sales volume and sales growth

7.

Market share is calculated how?

a)

(Total market sales ÷ Sales of the product)×100%\left(Total\ market\ sales\ \div\ Sales\ of\ the\ product\right)\times100\%

b)

(Sales of the product ÷ Total market sales)×100%\left(Sales\ of\ the\ product\ \div\ Total\ market\ sales\right)\times100\%

c)

Change in sales (Change in sales in given period ÷ Existing sales) ×100%\left(Change\ in\ sales\ in\ given\ period\ \div\ Existing\ sales\right)\ \times100\%

8.

Operations, overall strategy, finance, human resources and business objectives. These are examples of internal or external influences on marketing?

a)

External

b)

Internal

9.

Technology, social, economic, political, competition and legal. These are examples of internal or external influences on marketing?

a)

External

b)

Internal

10.

What is the best definition of brand loyalty?

a)

The positive association consumers attach to a particular product or brand.

b)

The promotion of a particular product by means of advertising

c)

The use of market research and advertising to promote and sell products or services

d)

The combination of factors used to influence consumers to purchase a company's products

11.

Costs that alter directly with output level

a)

fixed costs

b)

variable costs

12.

Revenue =

a)

selling price - quantity sold

b)

selling price + quantity sold

c)

selling price x quantity sold

d)

selling price / quantity sold

13.

Unlimited liability applies to :

a)

an LTD

b)

a PLC

c)

a company

d)

a sole trader

14.

Which type of business can sell shares to the public ?

a)

LTD

b)

PLC

c)

sole trader

15.

Which of the following is a disadvantage of being a public limited company?

a)

The business is at risk of takeover

b)

Unlimited liability

c)

Large sums of money can be raised

d)

Limited liability

16.

What are the owners of private and public limited companies called?

a)

Stakeholders

b)

Board of directors

c)

Managers

d)

Shareholders

17.

Private and Public Limited companies both have

a)

Unlimited liability

b)

Limited liability

18.

Which of the following is an advantage of a private limited comapany

a)

You can sell shares openly to anybody around the world

b)

You can choose your own shareholders that are suitable for the business

c)

You can gain more sales as the business is well known

d)

They have unlimited liability

19.

Why does a company issue shares?

a)

To raise money that can be invested in the business

b)

To get more owners

c)

To make more profit

d)

To allow the business to be sold off

20.

What is one advantage of a public limited company?

a)

Unlimited liability

b)

They can buy an unlimited amount of vehicles.

c)

They can tell private limited companies what to do.

d)

Shares are easily transferable.

21.

Which of the following is the least complicated to set up?

a)

Sole Trader

b)

Partnership

c)

Private Limited Company

22.

When profits are shared between shareholders. This is called a (a)  

23.

What is the simple difference between a public and private limited company?

a)

A public limited company is public and a private limited company is private.

b)

There are no differences.

c)

The public limited company can quote shares in a stock exchange while a private limited company cannot.

d)

One does not deal with shares while the other does.

24.

What is meant by the term 'incorporation'?

a)

Two businesses joining together

b)

One business taking over another

c)

Setting up a business as a separate legal entity.

d)

Two separate businesses working together

25.

Functional objectives are usually set for :

a)

individuals

b)

the whole company

c)

departments

d)

senior management

26.

Market capitalisation =

a)

Number of shares divided by share price

b)

Number of shares minus the share price

c)

Number of shares multiplied by share price

27.

Qualitative market research =

a)

large scale surveys, closed questions

b)

small scale interviews, open questions

28.

The formula for price elasticity of demand (PED) =

a)

% change in price divided by

% change in quantity demanded

b)

% change in price multiplied by

% change in quantity demanded

c)

% change in quantity demanded

divided by % change in price

d)

% change in quantity demanded

multiplied by % change in price

29.

A strong brand should :

a)

increase price elasticity of demand

b)

reduce price elasticity of demand

c)

have no effect on price elasticity of demand

30.

A product with low market growth and high market share =

a)

Cash cow

b)

Dog

c)

Question mark

d)

Star

31.

In the Boston Matrix, a Problem child (question mark) =

a)

High market growth and low market share

b)

Low market growth and high market share

c)

High market growth and high market share

d)

Low market growth and low market share

32.

The product life cycle stages in order :

a)

Introduction, Development, Growth, Maturity, Decline

b)

Development, Introduction, Maturity, Growth, Decline

c)

Introduction, Growth, Development, Maturity, Decline

d)

Development, Introduction, Growth, Maturity, Decline

33.

A _________ acts like business, but its purpose is to benefit society.

a)

Franchise

b)

Limited Liability Partnership

c)

Nonprofit organization

d)

corporation

34.

Distribution is NOT about getting a product to consumers...

a)

...in the right place

b)

...in the right way

c)

...in the right packaging

d)

...at the right time

35.

A role of a retailer is to:

a)

Provide manufacturers with access to consumers over a wide area and in convenient locations.

b)

Provide a simple sales option for manufacturers

c)

Help buyers to find the right business to buy from in complicated markets

d)

Make the goods eventually used by consumers

36.

Fast moving consumer goods are often sold through wholesalers who add value by 'breaking __________'

a)

bad

b)

bulk

c)

bones

d)

businesses

37.

Cutting out intermediaries will not directly reduce

a)

cost

b)

complexity

c)

stages of distribution

d)

customer satisfaction

38.
Secondary source documents are all of the following EXCEPT:
a)
An analysis of primary sources or events
b)
Interpretations of original documents
c)
Sources created later by someone who did not participate in the event
d)
Original materials
39.

Using the government statistics to find out about the favorite cereals among children

a)

Primary research

b)

Secondary research

40.
True or False: all samples lead to a good prediction about an entire population.
a)
True
b)
False
41.
_________ is a sample in which each individual or object in the entire population has na equal chance of being selected.
a)
Sample
b)
Population
c)
Random Sample
d)
Quartile
42.

Which data is less expensive to obtain and less time-consuming?

a)

Primary Data

b)

Secondary Data

43.

When a business ‘creates or adds value’ it increases:

a)

the difference between the cost of purchasing raw materials and the price the finished

goods are sold for

b)

the number of products it sells

c)

 the difference between the cost of producing a product and the price for which it is sold

d)

the difference between the price of a product and the variable cost of its production

44.

An entrepreneur is someone who:

a)

is an employee of a business enterprise

b)

takes the risk of starting and managing a business venture

c)

works for the government to provide public services

d)

just provides capital to a business start-up

45.

The most important difference between social enterprises and profit-seeking businesses is:

a)

social enterprises never aim to make a profit

b)

social enterprises will have objectives other than profit

c)

profit-seeking businesses will always make a profit

d)

social enterprises do not sell goods and services but profit seeking businesses do

46.

Targeting different products to type of customer due to age, social factors, income levels, geographic or sociological factors.

a)

Market research

b)

Market segmentation

c)

Market planning

d)

Market share

47.

Which one is NOT the definition of "market research" ?

a)

Process of collecting and analysing data to identify customer needs.

b)

Collecting primary and secondary data, such as when setting up a new business.

c)

Discussion process with customers, competitors, and suppliers to find the best solution.

d)

Identifying aspects of the market to aid decision making by using methods like surveys, interviews, internet.

48.

One person, no continuity, unlimited liability, keep all profits.

a)

Sole trader

b)

Partnership

c)

Private Limited Company

d)

Joint Venture

49.

What is a niche market?

a)

A market in which businesses sell to a large customer group with similar needs.

b)

A market in which businesses sell to a variety of customers.

c)

A market in which businesses sell to a small customer group with specific needs.

d)

A market in which businesses sell one product to many consumers.

50.

What is a mass market?

a)

When a business sells different products to all consumers and markets them in the same way.

b)

When a business sells the same products to all consumers and markets them in a different way.

c)

When a business sells different products to all consumers and markets them in a different way.

d)

When a business sells the same products to all consumers and markets them in the same way.

51.

What is the problem with trying to determine market share?

a)

There are too many products in the market

b)

Can be difficult to determine what “counts”

c)

The market is too small to try and calculate

d)

The market has too many competitors

52.

The term "Demographics" refers to

a)

Grouping potential customers based on their beliefs and preferences

b)

Grouping potential customers based on whether or not they have purchased a product in the past

c)

Grouping potential customers using statistical data such as age, race and gender

d)

Grouping potential customers based on where they live

53.

A business' target market includes

a)

Everyone

b)

All the people who might use a product or service

c)

The specific people that the company is aiming to reach with its marketing and sales efforts

d)

One segment of the market

54.

Which of the following is the BEST definition of 'mission statement'?

a)

A statement defining the future aspirations of a business

b)

A statement defining what an organisation is, why it exists and its purpose

c)

A statement explaining what the business does

d)

A statement explaining which stakeholders a business will serve

55.

Which of the following are true about Interest Rates? Tick all that apply.

a)

Interest rates are the cost of borrowing money.

b)

Interest rates are earned on savings.

c)

All businesses will be negatively affected by a rise in interest rates.

d)

All of the above.

56.

(a)   is the special feature of a product that differentiates it from the products of competitors

57.

(a)   is when consumers keep buying the same brand again and again instead of choosing a competitor's brand

58.

Which stage of the product life cycle needs a lot of promotion?

(a)  

59.

How does a business extend the product life cycle?

a)

introduce new types of the product

b)

Develop a new product

c)

extend advertising

d)

sell at more retailers

60.
Which of the options places the stages of a typical product life cycle in the correct order?
a)
Growth, maturity, decline, introduction
b)
Introduction,maturity, growth, decline
c)
Introduction,decline, growth, maturity
d)
Introduction,growth, maturity, decline
61.
Which combination of price and promotion could be used for a product in decline?
a)
Raise the price and use an expensive advertising campaign
b)
Lower the price and tell consumers with an advertisement
c)
Raise the price and stop all advertising of the product
d)
Lower price & use  promotion to tell people to buy product
62.

Business that produce only one product will use this pricing method

a)

Cost plus pricing

b)

Competitive Pricing

63.

A business that has many competitors will use this pricing methods

a)

Premium pricing

b)

Competitive pricing

64.

A business that sells innovative technological products use this type of pricing method

a)

Price skimming

b)

Cost plus pricing

65.

A business that wants to increase sales or enter a new market use this type of pricing

a)

Promotional pricing

b)

Competitive pricing

66.
Products sold over the internet will use which of the following channels of distribution?
a)
Producer - Consumer
b)
Producer - Wholesaler - Retailer - Consumer
c)
Producer- Agent - Retailer - Consumer
d)
Producer - Retailer - Consumer
67.
Name the brand
a)
Nike
b)
Addidas
c)
Puma
d)
Converse
68.

Which is a way that a business can extend the life cycle of an established product?

a)

By promoting the product to current users

b)

By finding new uses for the product

c)

By restricting distribution

d)

By attracting consumers who are innovators

69.

Why does a company need to know the life-cycle stages of its products?

a)

To prevent imitators from entering the market

b)

To find new uses for the product

c)

To predict the length of the life cycle

d)

To adapt its marketing strategies

70.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
71.
According to the wage-price spiral, if a company gives a worker a raise in pay, what must they also do?
a)
 Raise the price of their products
b)
go out of business
c)
lower the price of their products
72.

The Business Cycle measures :

a)

GDP

b)

CPI

c)

OCG

d)

GPD

73.

A business can pass-on the extra cost of inflation, by raising prices if :

a)

demand is price elastic

b)

demand is price inelastic

74.

Interest rates = the cost of borrowing, and the reward for (a)   (one word)

75.

P for the PESTLE mnemonic stands for

a)

Political

b)

Principal

c)

Phenomenon

d)

None of the above

76.

Acquiring permits in establishing a business is a concern of what part of the PESTLE analysis?

a)

Legal

b)

Political

c)

Economic

d)

None of the above

77.

The inclusion of the Inflation Rate as a determinant in running a business is one example of applying of what factors that could be seen in the PESTLE analysis?

a)

Political

b)

Legal

c)

Economic

d)

None of the above

78.
which of the following is not a determinant of demand elasticity?
a)
availability of substitutes
b)
share of consumer's budget spend on good
c)
duration of adjustment period
d)
government spending
79.
The price elasticity of demand measures how much
a)
quantity demanded responds to a change in price.
b)
quantity demanded responds to a change in income.
c)
price responds to a change in demand.
d)
demand responds to a change in supply.
80.

Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.

a)

elastic

b)

unitary elastic

c)

inelastic

d)

hyperelastic

81.

Water has seen an increase in demand 8% this summer, while the price has decreased 12%

a)

1.5 inelastic

b)

1.5 elastic

c)

.67 inelastic

d)

.67 elastic

82.

Price of 1 share multiplied by the total number of shares outstanding equals ___.

a)

P/E Ratio

b)

Dividend Yield

c)

Market Capitalization

d)

Stock Index