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WorksheetsY10 +2.1 and 2.2 GCSE Edexcel Business
Total questions: 40
Worksheet time: 20mins
What source of finance is for short term emergencies
Overdraft
Bank Loan
Venture Capital
Crowdfunding
What is the break even point
Where sales revenue is the same as fixed costs
Where sales revenue is the same as variable costs
Where sales revenue is the same as total costs
Where fixed costs is the same as variable costs
What is trade credit
A short term source of finance from a supplier for stock.
A long term source of finance from a supplier for stock
A short term source of finance from a bank for stock
A long term source of finance from a bank for stock
Which is part of the marketing mix
Product
People
Plans
Profit
What is the term for using mobile phones to sell products/services
E commerce
Apps
M Commerce
Payment platform
How do new business ideas come about
Changes in technology
Adapting an exiting idea
Products being obsolete
Changes in consumer wants
Which of these is an example of primary research
Focus Group
Internet
Company reports
Government statistics
Which of these is an example of qualitative market research
Government statistics
Questionnaire
Focus group
Trade reports
A budding entrepreneur who is looking to set up a new enterprise is concerned that the business might not provide enough of a stable income to maintain his current standard of living. Which of the following best describes this risk?
Inability to break even
Lack of security
Business failure
Lack of independence
Sara decided to start-up a business as a personal trainer, due to her passion for fitness. Which of the following is the main reason behind Sara’s business idea?
Earn more money
Pursue an interest
Be her own boss
Work more flexible hours
Increased concern from consumers over the environment has led to new business start-ups developing products from recycled materials. These business ideas have come about due to:
Services that have become obsolete
Products that have become obsolete
Changes in consumer demand
Changes in the interest rate
Which two of the following are examples of qualitative data?
In an entire school there are 1053 students
The new born baby has very soft skin
The average height for women in the UK is 5ft 4.7 inches
9 million people in the UK are members of a gym
The colour of the school uniform is mauve
Which two of the following are examples of how entrepreneurs can use market mapping
To identify a gap in the market
To identify where competing products fall across two dimensions
To identify the location of competitor businesses
To identify the best location for a new business
To advertise to customers where the business is located
Which one of the following is the correct definition of market share?
The total sales of all businesses in a particular market
The sales of one particular business as a proportion of the total sales in a market
A group of customers that share a common characteristic
A part or portion of a business owned by another business or individual
Which one of the following is the correct definition of market segmentation?
The collection, collation and analysis of data relating to the marketing and consumption of goods and services
A group of customers in an entire market that share similar needs and wants and common characteristics
Dividing a market up into customers with similar needs and wants and common characteristics
The management process responsible for getting the right product, at theright price, in the right place, at the right time to the customer
Which one of the following is a true statement about a sole trader business?
The business is owned by one person
The owner has a separate legal identity to the business
The owner has limited liability
The owner cannot employ anybody else to work for them
Which one of the following is an element of the marketing mix?
Profit
Placement
Production
Promotion
Which two of the following are true statements about private limited companies (Ltd’s)?
They are owned by shareholders
They have to have at least two directors
They do not have a separate legal identity from the business’s owners
The owners have limited liability
They do not have to pay corporation tax
Which one of the following is a disadvantage associated with buying and running a franchise operation instead of a completely independent business?
Access to large advertising campaigns
Royalty payments to franchisor
Recognised brand name
Tried and tested suppliers
Which two of the following are examples of disadvantages of a private limited company compared with sole traders?
Greater continuity
More costly to set up
Limited liability
Unlimited liability
Less flexible
Which one of the following is the correct formula for calculating the total revenue generated by each product sold by a business?
Variable costs X Selling price per unit
Fixed costs X Selling price per unit
Quantity sold X Selling price per unit
Total output X Total inputs
Which one of the following is an example of a fixed cost for a business that makes shoes?
Leather for making the shoes
Rent on the factory premises
Boxes used in packaging the shoes
Electricity to run the cutting machines
Which one of the following is the correct formula for calculating the break even level of output?
Total fixed costs / selling price per unit
Total costs / contribution per unit
Total fixed costs / contribution per unit
Which one of the following is the correct definition of margin of safety?
The amount by which total revenue can fall before a business is unable to cover its total fixed costs
The amount by which output can fall before a business reaches its break even level of output
The amount by which the total revenue of a business exceeds its total costs
The amount by which a business’s actual output exceeds its planned level of output
A business’s fixed costs are £10 000, selling price per unit is £4, and total variable costs per unit are £1.50. Which one of the following is the break even level of output (to the nearest whole number)?
2 500 units
2 857 units
4 000 units
6 667 units
Which one of the following is the correct formula for calculating profit?
Total costs - Total revenue
Total quantity sold - Total costs
Total output - Total input
Total revenue - Total costs
Which two of the following are examples of an overhead?
Rent
Insurance
Packaging
Raw materials
Wages to production staff
Which one of the following is the correct definition of variable costs?
The cost of producing all output over a period of time
Costs that stay the same regardless of the output quantity
Costs that change according to output quantity
Costs that are not directly related to the production of a product or Process
Which two of the following are examples of cash outflows?
Rent on office premises
Cash from sales
Loans from the bank
Interest on investments
Corporation tax
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
Which of the following is NOT a method of internal (organic) growth?
Increasing output
Gaining new customers
Developing new products
Merging with / taking over another business
Which of the following best describes the term 'diversification'?
To join with a business in the same industry as you
To join with a business that can supply you with raw materials
To join with a business that sells something similar to you
To join with a business in a completely unrelated industry
Which two of the following are examples of non-financial business objectives?
Market Share
Survival
Personal Satisfaction
Profit
Social Objectives
Which one of the following is not a typical example of a stakeholder?
Local Community
Government
Customers
Overseas Bank
Employees
Which two of the following are examples of external influences on a business?
Skill level of employees
Company's Equipment
Employment Law
Sales Revenue
Exchange Rate
