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WorksheetsAQA GCSE Business Studies revision
Total questions: 74
Worksheet time: 2hrs 28mins
A business that sells the rights to trade using its name, logo and products...
A partnership
A franchisee
A franchise
An Ltd
Reasons for starting a business are
To keep all the profits
To get money
To be your own boss
To escape a boring job
To be motivated
A factor for choosing a location could be
Nice working environment
Proximity to customers
Close to where you live
High costs of premises
A Sole Trader would experience
Limited Liability
Stress of decision making
Loneliness of having no employees
Decisions taking too long due to discussion
Which of these are internal stakeholders
Customers
Employees
Government
Shareholders
A benefit of writing a business plan could be
Avoids fines as it is a legal document
Guarantees a profit will be made
A bank is more likely to lend money
Increases the risk of the business failing
Sales Revenue is calculated by...
Price x Total Cost
Profit - Variable Costs
Fixed Costs + Variable Costs
Price x Output
The factors of production are...
Capital, Costs, Risk, Location
Land, Skills, Ideas, Profit
Capital, Enterprise, Land, Labour
Labour, Location, Costs, Enterprise
A farmer is in which industrial sector?
Primary
Secondary
Tertiary
Quarternary
Shareholders are...
Anyone with an interest in a business
Groups of people who can tell the business their ideas
Owners of limited companies who expect a dividend from profits
Local businesses who are in competition with the business
Products whose sales are sensitive to changes in consumers incomes.
Income Elastic Products
Consumer Spending
Services
Fair Trade Products
Goods and services produced by a business in one country and sold in another.
Exports
Imports
Tariff
Globalisation
The trend for markets to expand to become worldwide in scope.
Globalisation
Exports
Imports
Exchange Rate
A tax on foreign goods imported into a country.
Growth
Exports
Imports
Tariff
The act of buying or selling a product using an electronic system like the internet.
E-commerce
M-commerce
Social Media
Cloud computing
Whether a business decision is thought to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right.
Ethics
Social Responsibility
Sustainability
Environmental Reporting
Where a business receives stocks as when needed for production.
Just-in-case Production
Just-in-time Production
Flow Production
Job Production
The cost of borrowing money or the reward for saving money expressed as a percentage
Economic Climate
Interest Rates
Overdraft
Consumer Spending
When a business does not face any competition in a particular market
Monopoly
Uncertainty
Recession
Entrepreneur
Select all the qualities of entrepreneurs below?
Hardworking
Risk Taking
Stubborn
Over confident
Organised
A hospital would be part of which sector of the economy?
Primary
Secondary
Tertiary
Unlimited liability is a disadvantage of which ownership?
Sole Trader
Partnership
Sole Trader & Partnership
Private Limited Company (Ltd)
Select all of the statements that are true about PLC's
Anyone can buy shares
They have limited liability
They are owned by shareholders
The accounts are private
What does the benefit of limited liability give a business?
Increased sales
Reduced competition
Protection of personal assets
Access to a larger market
Which of these is not a typical aim of a business?
Survival
Growth
Increase Market Share
Lower Prices
Social & Ethical
Revenue =
Sales x Price
Price / Sales
Costs x Sales
Profit - Costs
A business sells 20,000 items in a month at £2.50 each. In the same month the total costs are £35,000. How much profit does the business make?
£65,000
£15,000
£50,000
£25,000
Average cost per unit falls as a business expands is called...
Economies of Scale
Diseconomies of Scale
Which of these is not an advantage of buying a franchise?
Potential to make more profit
Access to an established business idea
Have total control of decisions
What would be a reason why a business would create a business plan?
It is a legal requirement
It costs time and money
Banks are more likely to provide loans
It will guarantee profit
Select the two laws that businesses must follow?
Low Pay Act
Equality Act
Health & Safety at Work Act
Employee Act
Which of the following is not a disadvantage of advancing technology for businesses?
Can be expensive
Need to train staff
Out of date quickly
Make processes faster
A business has decided to take more environmental responsibility when making decisions. What is the benefit to the business of doing this?
Increased costs
Employees may leave
It will prevent global warming
Create competitive advantage
Low interest rates means that...
Firms and consumers borrow more money and save less
Firms and consumers borrow less money and save more
Firms and consumers borrow more & save more
Firms and consumers borrow less & save less
Globalisation means the world is more...
Interconnected
Expensive
Risky
Profitable
Which of these has unlimited liability?
Sole Trader
Private Limited Company
Public Limited Company
Multi National Company
What is the primary aim for all businesses?
To survive
To make profit
To expand
To create employment
Operating ethically often increases costs because...
Raw materials are coming from further away
Raw materials are in short supply
Suppliers are paid more for the raw materials they produce
Advertising costs increase to promote their brand image
Low levels of unemployment is good news because...
Consumers have more disposable income to spend with other businesses
Consumers pay lower rates of tax
Consumers have less disposable income to spend with other businesses
Consumers are more likely to be looking for employment
With higher costs, it's difficult for British businesses to compete with foreign rivals. What tactic is often used to maintain market share?
Lower the selling price to compete
Produce higher quality products and services
Increase spending on promotion
Produce lower quality items to reduce costs
Which piece of legislation was introduced to prevent discrimination in the workplace?
The Health and Safety at Work at 1974
Consumer Law
The Equality Act 2010
Employment Law
Two drawbacks of a franchise
More risk for a start-up business
Other franchisees could give the brand a bad reputation
Franchise businesses usually have established customer bases
Initial costs can be high for the franchisee
Two benefits of a business plan
Helps to consider the business idea thoroughly
Is a waste of time for the small business
Could persuade lenders to invest capital
It cannot be monitored or reviewed
Two pros of partnerships
There are more people involved with discussing problems and deciding on strategies
There could be disputes over decision making
The rewards will have to be divided up between partners
Several people are involved in a partnership so can contribute money
Two advantages of setting up as a private limited company (ltd)
Have to disclose information on sales and profits
Limited liability
Can bring in more investors
If there are other investors the original founder is not in full control of the business
Two advantages of Job production
It is easier to customise an item
Best option when each customer's needs are different
Expensive
Takes a long time and requires highly skilled labour
Two advantages of Flow/Mass production
Machinery can break down
Production can be automated so continue 24/7
Economies of scale (cheaper costs per unit with increased production)
Work can become boring for employees
Jenny Carson makes and ices wedding cakes. Which method of production is she likely to use?
job production
batch production
flow production
robotic production
When buying any goods or services, consumers are entitled to expect:
the goods to be of the best standard possible
the goods to be of satisfactory quality
the goods to be guaranteed for three years
the goods to be the same price as competitors
A way in which a business can be affected by consumer law is:
having compensation claims because goods are of high quality
profits being reduced by paying higher wages
having to sack staff who are always late for work
losing reputation due to defective goods
Bringing a new idea to the market, such as Warburton’s idea of an extra-large crumpet
Maturity
Invention
Innovation
Extension Strategy
When two businesses of roughly equal size agree to come together to form one big business
Innovation
Take over
Merger
Organic Growth
A company that can float its shares on the stock market
Partnership
Private Limited Company
Public Limited Company
Sole Trader
Growth from within the business, such as creating and launching successful new products
Take over
Merger
Inorganic Growth
Organic Growth
A business that issues shares by invitation only – usually to family and friends
Multinational business
Partnership
Public Limited Company
Private Limited Company
What is an advantage of flow production?
It is expensive to set up
Large amounts can be made
Products are usually very high quality
Products can be made to meet the needs of individual customers.
Unlimited liability means?
The owner is personally liable to cover business debts and any costs the business can not cover
The owner(s) do not have to cover all business costs personally in the case of them being sued or going into debt
A corporation is not responsible for taking care of lawsuits
A sole Proprietorship will have enough money and coverage to pay any and all debts
Why may an entrepreneur prefer to set up a business as a partnership?
The entrepreneur would get to make all the decisions
They entrepreneur would get to keep all the profit
The business would benefit from a greater range of skills and knowledge
The business would make more money quicker
A limited company is owned by
Shareholders
Stakeholders
Directors
Employees
Which of the following is an advantage of operating as a franchise?
You can choose your own location
You can sell whatever you want
You have an established brand name
You do not have to pay for staff training
Two benefits of a business plan
Helps to consider the business idea thoroughly
Is a waste of time for the small business
Could persuade lenders to invest capital
It cannot be monitored or reviewed
A definition of Economies of scale is :-
A reduced unit cost gained from an increase in production
Increasing your turn over through reducing your sales prices
Taking over suppliers
Diversifying by launching new products
New technology is released that allows a person to move rapidly from one location to another, how will this affect the airline industry?
Negative effect as customers will choose this new faster method of travel
Positive effect as airlines will be able to replace their old planes with these new devices
Neutral effect, airlines will not be effected by the technology change
What happens to the cost of imports as the pound gets stronger?
They get more expensive for foreign customers
Nothing happens
They get cheaper for UK customers
More people buy exports
What does 'ethical behaviour' mean in relation to business
Using fair trade suppliers
Being compliant with Health & Safety laws
Paying a fair (living) wage
Only selling their products to financially stable nations
Which of these apply to a business trying to operate in an environmentally friendly way?
Reducing the amount of traffic to and from stores
Sending waste to landfill sites
Publishing 'green' reports on their website
Cutting noise pollution
Which of these is a correct definition of Interest Rates
The cost of using a bank
The cost of borrowing
The reward for saving
The fee charged for arranging a loan
Who is an entrepreneur?
Grants a license to another
person or business
Entrepreneur is a person who organizes, operates and takes the risk for a new business venture.
The owner of a business
These are closely held businesses usually by family, friends and relatives.
Which situation will result in greater efficiency?
The same output is achieved with fewer inputs.
The same input is needed for fewer outputs.
Fewer inputs are needed to produce fewer outputs.
More inputs are needed to achieve the same output.
What is the equation to calculate the average cost of making 1 product?
Profit/Costs
Total Costs/Total output
Fixed Costs/Sales
Sales/output
