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Business GCSE Aspire

Total questions: 123

Worksheet time: 1hrs 20mins

Name
Class
Date
1.

Which of the following statements best describes the term recruitment?

a)

The number of people leaving an organisation in a specific time period

b)

The total amount of job vacancies in an organisation

c)

The number of people that are employed in an organisation

d)

The process of finding people to work for an organisation

2.

Which of the following best describes the term person specification? A document that:

a)

Details the duties and tasks involved in a specific job

b)

Is completed by a person applying for a job vacancy

c)

Details the skills and qualifications required in a specific job

d)

Is completed by a previous employer that comments on a candidate’s skills and abilities

3.

Which of the following would be the most suitable place for a local plumbing firm to advertise for five new plumbers?

a)

Convenience store window

b)

Job centre

c)

Daily national newspaper

d)

Television

4.

Which of the following is a method of selection that uses a series of multiple-choice questions to show a candidate’s character and nature?

a)

Long listing

b)

Team building exercise

c)

Psychometric test

d)

References

5.

A benefit of using zero hour contracts to an organisation is that :

a)

It will attract the best applicants to a role

b)

Employees will have increased freedom over their working hours

c)

It will reduce the total wage bill

d)

Recruitment and selection costs will be reduced

6.

Which of the following is an example of external recruitment?

a)

Advertising a job vacancy on the internet

b)

Advertising a job vacancy on a firm’s intranet

c)

Promoting current employees to more senior posts

d)

A manager recommending an existing member of staff for a new role

7.

Which of the following is a drawback to a firm of using internal recruitment to fill a job vacancy?

a)

It is expensive

b)

Limited new ideas are introduced to the firm

c)

Personalities of potential applicants are known

d)

Gives existing employees a chance to be promoted

8.

Which of the following is a reason why a business would need to recruit new employees?

a)

It is expanding in to new markets

b)

It is delayering its organisational structure

c)

Its staff retention rate this year is 100%

d)

Demand for its products has fallen by 30% during the year

9.

When an employee is contracted to work between 35-40 hours each week it is known as a:

a)

Part time contract

b)

Full time contract

c)

Job share

d)

Zero hour contract

10.

A benefit to a business of effective recruitment and selection is a highly productive workforce. This means:

a)

Less output will be produced in a specific time period

b)

Lower profit margins can be achieved

c)

More employees can be employed

d)

Lower unit costs can be achieved

11.

Which of the following is the most important item to include in a job advertisement for an administration role in a large company?

a)

Closing date for applications

b)

Detailed history of the firm

c)

A photo of the board of directors

d)

Details of health and safety procedures

12.

An organisation employs 240 staff in total. 20% of the staff are on zero hour contracts and 1/4 are part time. The remainder are full time. The number of staff that are full time is:

a)

48

b)

60

c)

120

d)

132

13.

The passing of authority from one level to another is called:

a)

Delegation

b)

Responsibility

c)

Chain of Command

d)

Span of Control

14.

Which of the following is an advantage to a business of delayering its organisational structure?

a)

The duties of employees may be reduced

b)

Spans of control will become narrower

c)

Promotional opportunities will improve

d)

Staff costs will be reduced in the long term

15.

Which of the following statements best describes the term span of control?

a)

The formal channels of communication in an organisation

b)

Removal of a level in an organisational structure

c)

The number of levels in an organisational hierarchy

d)

The number of people that directly report to a line manager

16.

Which of the following is a key feature of centralisation?

a)

Major decisions are made by a small number of senior staff

b)

Major decisions are made by junior staff

c)

Delegation is actively used in the organisation

d)

A democratic management style exists

17.

Which of the following is the main advantage to a business of having a formal, internal organisational structure?

a)

Employees have clearly defined job roles and duties

b)

The layout of the organisation will be detailed on a map for new staff

c)

Every employee will report to at least two line managers

d)

Labour productivity will be lower

18.

Which of the following best describes the term chain of command?

a)

Lines of authority in an organisation along which communication flows

b)

Passing authority to others

c)

A subordinate giving feedback to a superior

d)

The number of employees that directly report into a line manager

19.

In which type of organisational structure would communication from the top of the organisation to the bottom layer of the organisation be the fastest?

a)

Tall

b)

Flat

c)

Hierarchical

d)

Regional

20.

Which of the following best describes the term decentralisation?

a)

The business is organised into different functional areas

b)

Key decisions are made by a small number of senior staff

c)

The business is geographically widespread

d)

Junior managers are given authority to make important decisions

21.

A flat organisational structure will usually have:

a)

Rigid rules

b)

A more flexible approach to decision making

c)

Many levels in the hierarchy

d)

More promotional opportunities for employees

22.

Which of the following is a disadvantage of centralisation?

a)

Decisions made may not be in line with the overall business aims

b)

Increased costs of training

c)

Inconsistent decision making across the organisation

d)

Low levels of motivation amongst junior managers

23.

Which of the following is a disadvantage of a private limited company (ltd)?

a)

Finance can be raised by selling shares

b)

Limited liability

c)

Original owners retain control of the company

d)

Shares are sold privately

24.

Which one of the following is an element of the external environment?

a)

Product portfolio

b)

Machinery and equipment

c)

Employees

d)

Interest Rates

25.

Ordinary shares traded on the stock exchange are those issued by:

a)

Sole traders

b)

Private limited companies

c)

Public limited companies

d)

Public sector organisations

26.

Which one of the following will be a variable cost for a coffee shop?

a)

Ingredients for the cups of coffee

b)

Salary paid to the manager

c)

Advertising costs

d)

Rent paid for the premises

27.

The sales revenue for a market has grown by 2% in 2016 compared with sales of £670 million in 2015. What is the new sales revenue for the market?

a)

£13.4 million

b)

£672.0 million

c)

£683.4 million

d)

£1340.0 million

28.

Market capitalisation is the total value of a company’s:

a)

Assets

b)

Dividends paid to shareholders

c)

Shares, based on the current share price

d)

Shares, based on the original share price

29.

Public limited companies usually pay ordinary shareholders their share of the profits in the form of:

a)

Inventory

b)

Dividends

c)

Fixed interest payments

d)

Retained profits

30.

When shareholders can only lose (are therefore liable for) the value of their investment in the share capital of the company is known as what?

a)

Unlimited liability

b)

Limited liability

c)

Insolvency

d)

Market capitalisation

31.

According to the government the vast majority (62.7%) of businesses in the UK are...

a)

Sole Traders

b)

Partnerships

c)

Limited Companies

d)

Not-For-Profit Organisations

32.

Select all the potential external factors which could influence costs and demand for a business:

a)

Incomes

b)

Interest Rates

c)

Marketing

d)

Training

e)

Demographics

33.

What is a business plan?

a)

Written document that only outlines the business practices of the new business.

b)

Written document that describes the financial aspects of the business.

c)

Written document that only describes the ownership of the business.

d)

Written document that describes all the steps necessary for opening and operating a successful business.

34.

Why do you need a business plan?

a)

To explain your idea

b)

the ability to get financing.

c)

it's a road map that sets objectives and goals for the business.

d)

To help reduce the risk of business failure.

e)

All of the above.

35.
Lenders want to know where your business will be located because the location of a business is often critical factor to its success
a)
True
b)
False
36.

Complete the sentence: A business plan...

a)

is useful once your business is operational but not much help during the startup phase

b)

is not usually needed once the business is up and running

c)

can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.

37.
Lenders and investors require a business plan before they will consider financing a business
a)
True
b)
False
38.

Which of the following is NOT a heading on a business plan?

a)

The staff

b)

The idea

c)

Market research

d)

Advertising campaign examples

e)

Competitors

39.

Which of the following is NOT a heading on a business plan?

a)

Finance

b)

Business objectives

c)

The idea

d)

The staff

e)

Motivation techniques

40.

Which of the following would be interested in seeing the business plan of a new company?

a)

Customers

b)

Potential investors

c)

The owners of the company

d)

Banks/ potential lenders

e)

Local council

41.

A business plan would normally be updated:

a)

Every day

b)

A month after the business starts

c)

Once a business adjusts its aims/objectives

d)

Every so often

e)

Never - It stays the same in its original form

42.

Which of the following pieces of information would you expect to find within a business plan

a)

How much staff wages are going to cost

b)

The production method the business will use

c)

Information about competitors products

d)

Opinions collected from the customers

e)

The organisation structure of the company

43.
Horizontal communication is
a)
Communication between two people on the same level within an organisation structure
b)
When communication occurs between staff and customers
c)
Communication between a manager and the staff they are responsible for
d)
The use of digital communication devices to send a message
44.
Which of the following is an advantage of holding meetings
a)
Staff are able to get time away from their normal work to talk about problems
b)
It allows customers views to be explained to the managers
c)
Points can be emphasised with body language and tone
d)
Everybody will be forced to listen to the speaker and pay attention to the important messages
45.
Which of the following is an advantage of written communication?
a)
It is always formal and creates a positive company image
b)
It will be easily understood by the person who receives the message
c)
It will be delivered on time
d)
The message can be re-read if the person doesn't understand it first time
46.

Why has the use of social media grown as a method of communicating with customers?


(Be careful and read all the reasons before you answer!!)

a)

It is much cheaper than other methods

b)

It allows communication with a mass audience with little effort

c)

It allows constant updates to be added

d)

It allows customers to give feedback on the things they are seeing by making comments

e)

All of these reasons

47.
Which of the following is a disadvantage of running a business website?
a)
People might not like the way it looks
b)
It can only be accessed by people within the country it was created
c)
There is a risk that the website could go down, halting business activity
d)
The cost of running a website is incredibly high
e)
All of these reasons
48.

Letters can be defined as

a)

an information that is transferred from one person to another.

b)

a brief written message used to convey information.

c)

a written document used to give and obtain information.

d)

none of the above

49.
All true communication must have the following:
a)
A sender and a receiver
b)
A speaker and a listener
c)
A hearer and a listener
d)
A speaker and an interpreter
50.

How does he feel?

a)

He is sad

b)

He is excited

c)

He is bored

d)

He is lazy

51.

In writing business letters, one has to be:

a)

Formal

b)

Informal

c)

Dull

d)

Friendly

52.
Why would the school not use SMS as a communicaiton method to tell a parent their child had been excluded?
a)
It costs a lot to set up
b)
It would be too informal
c)
Parents might not see the text in time
d)
It only has a short number of characters to use
53.
True or false: Internal communication is more important that external communication
a)
True
b)
False
54.
Which of the following functional areas would most likely communicate with suppliers?
a)
Finance
b)
HR
c)
Procurement
d)
Operations
e)
Leadership
55.
Which of the following statements is false?
a)
Digital communication involves the electronic transfer of information
b)
Mobile phones, tablets and computers are ways to transfer electronic communication
c)
Digital communication has helped business conduct worldwide business with more efficiency
d)
The use of digital communication means there is no longer a need for verbal communication
56.
True or false: Developments in digital technology has made effective communication more expensive
a)
True
b)
False
57.
If you need to let the employees in your business know that the server will be down this afternoon beginning at 3:00, you would most likely use:
a)
An email
b)
A memo
c)
Business Letter
d)
Personal Business letter
58.

Which of these statements is false?

a)

Digital communication involves the electronic transfer of information.

b)

Mobile phones, computers and tablets are ways in which information can be transferred electronically.

c)

Digital communication is always better than non-digital communication such as people coming together in meetings.

d)

Digital communication has been a major force behind the globalisation of business activity.

59.

Which of the following is always an advantage of meetings?

a)

There is always a record of what has been said

b)

The sender of the message can always be seen as well as heard by the receiver.

c)

The sender can check immediately with the receiver that they have understood the message.

d)

It is a way of avoiding confrontation when the message is given.

60.

Which of the following is not true about developments in digital communication?

a)

It has helped to increase the globalisation of business activity.

b)

The developments of digital networks has benefitted all workers.

c)

The development of digital communications has made it possible for some workers to work from home or while travelling.

d)

The development of digital communication has increased competition between businesses often leading to lower prices for customers.

61.

Items that can be seen and touched are known as...

a)

Goods

b)

Services

62.

Someone who starts, operates and assumes the risk of a business is known as an...

a)

Investor

b)

Interest person

c)

Entrepreneur

d)

Business inventor

63.
Why do business exist?
a)
To satisfy the needs of customers
b)
To help owners make a living
c)
To help the government collect tax
d)
To provide jobs
e)
To realise opportunities within the market
64.
What is enterprise?
a)
The creation of a business
b)
The management of the economy
c)
The skill of being able to sport an opportunity
d)
The skills that an entrepreneur has
e)
Government funded businesses
65.
Which of following are the characteristics of an entrepreneur (as stated by the exam board)
a)
Determination, Academic, Literate, Management
b)
Hard working, Adaptable, Resilient, Creativity
c)
Accounting, Management, Sales technique, Determination
d)
Self belief, Motivation, Confidence, Leadershio
e)
Creativity, Risk taking, Determination, Confidence
66.
True or false: A good entrepreneur will take calculated risks
a)
True
b)
False
67.
Which of the following is NOT a potential reward for taking calculated risks?
a)
Independence - be your own boss
b)
Pay less tax
c)
Financial gain
d)
Self-satisfaction
e)
Changing customers habits
68.
Which of the following is NOT a potential drawback of taking calculated risks?
a)
Loss of investment
b)
Poor health
c)
Strained relationships
d)
Loss of business license
e)
Loss of income
69.
Business exist to:
a)
Provide quality goods to people who can afford them
b)
Sell goods to a particular target audience
c)
Meet the needs of all of their customers
d)
Research ways to make products better
e)
Increase the amount of tax collected by the Government
70.
True or False: A entrepreneur needs to be excellent at financial management
a)
True
b)
False
71.
True or False: All business ideas must start with a brand new idea if they are to be successful
a)
True
b)
False
72.

Which of the following is an example of a business organisation

a)

Google

b)

Primark

c)

Stowmarket High School

d)

National Health Service

e)

All of them

73.

Businesses exist to:

a)

provide quality goods only to rich, young people.

b)

sell goods to older people.

c)

meet the needs of customers.

d)

research what customers a need.

74.

An entrepreneur needs which of the following characteristics?

a)

very well dressed at all times.

b)

know a person in business.

c)

very good at accounts.

d)

confident and determined.

75.

Which of the following is not a reward for risk taking when starting a business?

a)

being able to invest money.

b)

being able to make profits for yourself.

c)

being independent.

d)

being able to see your own ideas work.

76.

Select all the qualities of entrepreneurs below?

a)

Hardworking

b)

Risk Taking

c)

Stubborn

d)

Over confident

e)

Organised

77.

What sector of the economy?

a)

Primary

b)

Secondary

c)

Tertiary

78.

A hospital would be part of which sector of the economy?

a)

Primary

b)

Secondary

c)

Tertiary

79.

What are the four factors of production?

a)

Land, Labour, People, Resources

b)

Resources, Enterprise, People, Land

c)

Land, Labour, Capital, Enterprise

d)

Enterprise, Capital, People, Resources

80.

Unlimited liability is a disadvantage of which ownership?

a)

Sole Trader

b)

Partnership

c)

Sole Trader & Partnership

d)

Private Limited Company (Ltd)

81.

How many people can be in a partnership?

a)

2

b)

2-10

c)

2-20

d)

2-100

82.

Select all of the statements that are true about PLC's

a)

Anyone can buy shares

b)

They have limited liability

c)

They are owned by shareholders

d)

The accounts are private

83.

What does the benefit of limited liability give a business?

a)

Increased sales

b)

Reduced competition

c)

Protection of personal assets

d)

Access to a larger market

84.

Businesses with primarily social objectives whose surplus profits are reinvested for that purpose in the business or community are known as...

a)

Not-for-profit

b)

Social Enterprise

c)

Charity

85.

Which of these is not a typical aim of a business?

a)

Survival

b)

Growth

c)

Increase Market Share

d)

Lower Prices

e)

Social & Ethical

86.

Stakeholders are...

a)

Anyone who is affected by a business

b)

Anyone who invests in a business

87.

Revenue =

a)

Sales x Price

b)

Price / Sales

c)

Costs x Sales

d)

Profit - Costs

88.

Which is an example of a fixed cost?

a)

Raw Materials

b)

Rent

c)

Labour

d)

Running Machinery

89.

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?

a)

£65,000

b)

£15,000

c)

£50,000

d)

£25,000

90.

Average cost per unit falls as a business expands is called...

a)

Economies of Scale

b)

Diseconomies of Scale

91.

When a business pays another firm to carry out some of its tasks is known as...

a)

E-Commerce

b)

Outsourcing

c)

Franchising

d)

Takeover

92.

Which of these is not an advantage of buying a franchise?

a)

Potential to make more profit

b)

Access to an established business idea

c)

Have total control of decisions

93.

Less than half of all takeovers and mergers are successful.

a)

True - It is hard to make two different businesses work as one.

b)

False - It allows businesses to grow quickly and reduce costs.

94.

What would be a reason why a business would create a business plan?

a)

It is a legal requirement

b)

It costs time and money

c)

Banks are more likely to provide loans

d)

It will guarantee profit

95.

Select the two laws that businesses must follow?

a)

Low Pay Act

b)

Equality Act

c)

Health & Safety at Work Act

d)

Employee Act

96.

Which of the following is not a disadvantage of advancing technology for businesses?

a)

Can be expensive

b)

Need to train staff

c)

Out of date quickly

d)

Make processes faster

97.

A business has decided to take more environmental responsibility when making decisions. What is the benefit to the business of doing this?

a)

Increased costs

b)

Employees may leave

c)

It will prevent global warming

d)

Create competitive advantage

98.

Low interest rates means that...

a)

Firms and consumers borrow more money and save less

b)

Firms and consumers borrow less money and save more

c)

Firms and consumers borrow more & save more

d)

Firms and consumers borrow less & save less

99.

How might a fine dining restaurant be affected by consumer incomes falling?

a)

Increased sales

b)

Decreased sales

100.

Which market has the most competition?

a)

Supermarkets

b)

Petrol Stations

c)

Car Manufacturers

d)

Restaurants

101.

Globalisation means the world is more...

a)

Interconnected

b)

Expensive

c)

Risky

d)

Profitable

102.

A strong pound means...

a)

Imports are more expensive and exports are cheaper

b)

Imports are cheaper and exports are more expensive

103.

A business has made a decision to become decentralised. What is the benefit of them doing this?

a)

More profitable

b)

Keeps decisions consistent

c)

Authority is shared out

104.

The CEO has a span of control of...

a)

1

b)

4

c)

7

d)

13

105.

This image helps to explain the concept of...

a)

Delayering

b)

Chain of Command

c)

Heirarhcy

d)

Delegation

106.

Which is not a feature of contract of employment?

a)

Job Title

b)

Starting Pay

c)

Holidays

d)

Lunch Options

107.

Which of the statements below is false?

a)

A job can be shared between two people

b)

Working full-time means around 35-40 hours a week

c)

Part-time workers have less rights than full-time

d)

Zero hour contact means that the employer doesn't have to offer them any work

108.

A business has decided to recruit someone externally rather than internally because...

a)

They will already have good experience of the business

b)

It will be cheaper

c)

They may have new ideas

d)

The business will know the candidate well

109.

Qualifications, experience, skills and attitudes needed for the job will be listed on...

a)

Job Description

b)

Person Specification

110.

Which is not a method of financial motivation?

a)

Commission

b)

Profit Sharing

c)

Salary

d)

Piece Rate

e)

Fringe Benefits

111.

Training benefits the employer because...

a)

Employees get paid more

b)

Employees become less productive

c)

Employees have up-to-date skills

d)

It is expensive

112.

A business has decided to do off-the-job training because..

a)

Its cost effective

b)

Often higher quality

c)

Its the most common form of training

d)

Employees learn from others

113.

What is a benefit of an effective recruitment & selection process?

a)

Increased profit

b)

Staff retention

c)

Extra training

d)

Styles of management

114.

The break-even chart below shows details of costs and revenue for a business. At 200 units of output, profit is shown by the distance:

a)

vw

b)

vx

c)

vy

d)

vz

115.

Which of the following sources of finance is used primarily for short-term uses?

a)

Debt factoring

b)

Share capital

c)

Sale of buildings

d)

Venture capital

116.

The following data relates to the financial position of Whittaker plc for the 2016–2017 financial year.

• Revenue: £25 750 million

• Dividends paid: £2 655 million

• Gross profit margin: 24.5%

• Net profit margin: 5.6%

Whittaker plc’s gross profit for the 2015–2016 financial year was:

a)

£1 442.00 million

b)

£148.68 million

c)

£650.48 million

d)

£6 308.75 million

117.

Payables are the value of:

a)

a firm’s overdraft from its bank

b)

inventory held by a business

c)

money owed to a firm by customers

d)

money owed to suppliers by a business

118.

Which of the following will result in an adverse variance?

a)

Actual expenditure on fuel lower than in the budget

b)

Actual raw material costs higher than the budgeted figure

c)

Sales revenue actually received greater than in the budget

d)

Budgeted wages less than actual wages

119.

Which one of these sources of finance may involve the payment of a dividend?

a)

Debt factoring

b)

Loans

c)

Overdrafts

d)

Share capital

120.

A takeaway noodle bar owner believes that she will break-even if she manages to sell 400 takeaway meals per week. The fixed costs of running the bar are £800 per week and each takeaway meal sells for £5. The variable cost per takeaway meal for the owner is

a)

£4

b)

£3

c)

£2.50

d)

£2

121.

The table shows financial information relating to a business in 2014. Based on the above information, the business’s gross profit for 2014 was

a)

£180 000

b)

£100 000

c)

£70 000

d)

£20 000

122.

The formula for calculating break-even output is:

a)

Total Costs/Contribution per unit

b)

Fixed Costs/Contribution per unit

c)

Fixed Costs/Total Contribution

d)

Total Costs - Total Revenue

123.

Which one of the following sources of finance should a business use to solve a cash flow problem?

a)

a 5 year bank loan

b)

a mortgage

c)

an overdraft

d)

venture capital [1