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WorksheetsEdexcel GCSE Business Theme 1 (so far)
Total questions: 38
Worksheet time: 21mins
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 of the following statements best describes the term, reward?
The probability that something will go wrong
The chance of loss or damage
When a hoped for outcome does not happen
The benefits gained through business activity
An entrepreneur has developed a unique product to launch into the market. Which of the following best describes how this new business idea came about?
An original idea
Adapting an existing product
Adapting an existing service
Adapting an existing idea
Which of the following is a financial reason why an entrepreneur might start-up a new business
To make a profit
To pursue a skill or interest
To have more freedom in decision-making
To achieve a work-life balance
Which of the following best describes the term, obsolete? When consumers:
Demand more of a particular product or service
Want, and can afford, to buy more products and services
Can no longer afford to buy a particular product or service
No longer want to buy a product or service
Lack of overall planning and poor decision-making can lead to business failure. This is known as:
Poor management
Poor quality
Poor understanding of the economy
Poor sales levels
An entrepreneur has produced a shaving oil for customers with sensitive skin to eliminate any pain when shaving. This is an example of a business idea that:
Was developed and delivered to the market quickly
Solved a customer problem
Offered a cheaper way of doing something
Is aimed at a fast growing market
A product of service is obsolete when sales...
Start to rise
Rise rapidly
Growth slows
Fall or come to an end
Which of the following statements is true in relation to goods and services?
Services can be touched and held, whilst goods are usually invisible
Goods can be touched and held, whilst services are intangible
Services are visible, whilst goods are usually invisible
Both goods and services are intangible
Which two of the following are examples of risk that can occur from business activity? Select two answers:
Profit
Lack of security
Independence
Business success
Financial Loss
Which two of the following increases the risk of business failure? Select two answers:
Draws up a detailed business plan
Produces goods that do not meet customer needs
Makes a product that stands out from its competitors
Fails to carry out comprehensive market research
Offers exceptional customer service
Which of the following is an example of the role of an entrepreneur?
Producing goods or services
Meeting customer needs
Organising resources
Offering customer convenience
Which of the following is NOT an example of adding value
Quality
Branding
Selling an item for less
Unique selling point
What are the resources called that are needed to produce a good or service?
Goods and services.
Needs and wants.
Factors of production.
All of the above.
How many factors of production are needed to produce a good or service?
2
4
6
8
What could be an example of capital?
Buildings
Machines
Money
All of the above
What does USP stands for?
Universal Standard Pilot
Unique Selling Point
United Service Providers
Ultimate Secondary Procedures
The selling price of a product - the cost of bought-in materials and components
added value
input
output
margin
What is the definition of opportunity cost?
The chance that you will lose your money.
The next best alternative that you give up.
All of the choices you could have made but didn't.
The money you spend to buy something.
This is the cash that is generated by the business when it operates successfully
Retained profits
Share capital
Angel investor
Owner savings
An amount of money that is paid back within an agreed amount of time, with interest
Bank loan
Angel investment
Overdraft
Retained profit
What is the formula for break even
Fixed costs / contribution
Fixed costs / selling price
Variable costs / selling price
Fixed costs / margin of safety
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
In limited liability personal assets are protected
True
False
Neither
Both
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 correctly defines a situation of insolvency?
Where the value of items owned is greater than the value of money owed
Where total costs exceed total revenue
Where the value of inputs is greater than the value of outputs
Where debts are unable to be met as they fall due
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 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 of the following is considered a long-term source of finance?
Overdraft
Trade credit
Mortgage
Credit card
