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Edexcel Business GCSE All Paper 1 MCQs from past papers

Total questions: 51

Worksheet time: 29mins

Name
Class
Date
1.

Which one of the following is an example of a non-financial objective for an entrepreneur starting a new business?

a)

Survival

b)

Profit

c)

Market share

d)

Independence

2.

Which one of the following is a financial aim for an entrepreneur when starting a new business?

a)

Personal satisfaction

b)

Independence

c)

Market share

d)

Challenge

3.

Which one of the following is an example of a variable cost?

a)

Rent

b)

Raw materials

c)

Insurance

d)

Advertising

4.

Which one of the following is a definition of margin of safety?

a)

The difference between actual and break even levels of output

b)

Where total revenue and total costs are equal

c)

The number of sales required to reach break even

d)

the amount sales can fall before the

break-even

point is reached and the business makes no profit.

5.

Which one of the following best defines the term stakeholder?

a)

An owner of a private limited company

b)

Someone with an interest in the business

c)

Any individual who takes decisions within a business

d)

An individual who owns shares in a business

6.

Which one of the following is an example of a reward from business activity?

a)

Financial loss

b)

Increased overheads

c)

Independence

d)

Lack of security

7.

Which one of the following is a disadvantage of starting a partnership?

a)

Business owners have different skills

b)

Can be easier to raise finance

c)

Business decisions affect all partners

d)

Financial information is kept private

8.

Which one of the following is a long-term source of finance?

a)

Overdraft

b)

Revenue

c)

Trade credit

d)

Venture capital

9.

Which one of the following is a short-term source of finance?

a)

Retained profit

b)

Share capital

c)

Trade credit

d)

Venture capital

10.

Which one of the following is an example of a cash outflow for a small business?

a)

Bank loan

b)

Personal savings

c)

Raw materials

d)

Receipts

11.

Which one of the following is an example of a variable cost?

a)

Insurance

b)

Packaging

c)

Rent

d)

Salaries

12.

Which two of the following areas are covered by employment law?

a)

Consumer rights

b)

Discrimination

c)

E-commerce

d)

Health and safety

e)

Quality of products

13.

Which two of the following are elements of the marketing mix? Select two answers.

a)

Payment

b)

Planning

c)

Price

d)

Product

e)

Profit

14.

Which one of the following could be used to identify a market segment?

a)

Demographics

b)

Inflation

c)

Marketing mix

d)

Revenue

15.

Which one of the following is a characteristic of a sole trader?

a)

They require a business qualification

b)

They have unlimited liability

c)

They can sell shares to raise finance

d)

They do not employ staff

16.

Which one of the following is a definition of an exchange rate?

a)

The flow of goods and services into a country

b)

The value of one currency in terms of another currency

c)

A tax on a particular good or service

d)

When businesses operate on an international scale

17.

Which one of the following is a definition of insolvency?

a)

A product becoming obsolete

b)

Business failure due to unpaid debts

c)

Generating high levels of revenue

d)

Understanding the business environment

18.

Which one of the following is a definition of market share?

a)

Market research that can be collected and analysed

b)

The proportion of sales in a market made by one business

c)

The total amount of money from business sales

d)

A group of people who discuss their views on a product

19.

Which two of the following are examples of secondary market research? Select two answers.

a)

Focus group

b)

Internet

c)

Market report

d)

Observation

e)

Survey

20.

Which two of the following are examples of variable costs? Select two answers.

a)

Advertising

b)

Insurance

c)

Packaging

d)

Raw materials

e)

Rent

21.

Which two of the following are examples of a service? Select two answers.

a)

Birthday cake

b)

Fitness class

c)

Mobile phone

d)

Newspaper

e)

Train journey

22.

Which two of the following are examples of cash inflows?

a)

Bank loan

b)

Insurance

c)

Raw materials

d)

Receipts

e)

Wages

23.

Which two of the following are types of technology that could be used by a business?

a)

Consumer law

b)

Crowd funding

c)

Digital communication

d)

Marketing mix

e)

Payment systems

24.

Which two of the following can be interpreted from a break even diagram? Select two answers.

a)

Insolvency

b)

Margin of safety

c)

Market share

d)

Net cash flow

e)

Profit

25.

Which one of the following could be used to identify customer needs? Select one answer.

a)

Business idea

b)

Business objectives

c)

Market research

d)

Marketing mix

26.

Which one of the following could a small business use to add value?

a)

Locate in a convenient place

b)

Pay a higher rate of taxation

c)

Reduce its cash inflows

d)

Use a long-term source of finance

27.

Which one of the following could market mapping be used for?

a)

Identifying how many customers there are in a market

b)

Identifying how many employees work in a business

c)

Spotting where there is a gap in the market

d)

To identify the location of a business

28.

Which one of the following is an impact of a decrease in interest rates?

a)

Businesses will borrow less money

b)

Customers will borrow less money

c)

Customers will borrow more money

d)

Repayments on loans should go up

29.

Which two of the following are examples of customer needs? Select two answers.

a)

Choice

b)

Profit

c)

Quality

d)

Risk

e)

Taxation

30.

Which two of the following are roles of an entrepreneur? Select two answers.

a)

Going to University

b)

Organising resources

c)

Personal satisfaction

d)

Taking risks

e)

To be a sole trader

31.

Which two of the following are examples of primary market research? Select two answers.

a)

Internet research

b)

Market reports

c)

Customer survey

d)

Government statistics

e)

Focus group

32.

Which one of the following is an example of secondary market research?

a)

Customer survey

b)

Focus group

c)

Market report

d)

Observation

33.

Which one of the following statements about a franchise is correct?

a)

A franchisee makes all their own decisions

b)

The franchisor pays the franchisee to set up in business

c)

The franchisor provides continued help and support

d)

Franchises pay lower Value Added Tax than sole traders

34.

Which one of the following is a benefit of starting a business as a franchise?

a)

Lower variable costs

b)

Support from the franchisor

c)

Higher interest rates for borrowing

d)

Franchisees pay lower tax

35.

Which one of the following describes the role of an entrepreneur? Select one answer:

a)

Being employed by a large organisation

b)

A willingness to take risks

c)

Having sufficient money to start a new business

d)

Being able to work alone

36.

Which two of the following are examples of services? Select two answers:

a)

Train journey

b)

Magazine

c)

Headphones

d)

Haircut

e)

Mobile phone

37.

Which one of the following is a benefit of market research for a new business?

a)

It reduces all business costs

b)

It helps understand customer preferences

c)

It guarantees business success

d)

It eliminates competition

38.

Which one of the following is a characteristic of a partnership?

a)

Only one owner is allowed

b)

Unlimited liability for all partners

c)

Profits are not shared

d)

Shares can be sold to the public

39.

Which one of the following is an example of a fixed cost for a small business?

a)

Raw materials

b)

Electricity used in production

c)

Packaging

d)

Monthly rent

40.

Which one of the following is an example of a fixed cost for a business?

a)

Commission paid to sales staff

b)

Raw materials

c)

Monthly insurance premium

d)

Packaging

41.

Which one of the following is a short-term source of finance for a small business?

a)

Bank overdraft

b)

Retained profit

c)

Venture capital

d)

Share capital

42.

Which one of the following is a non-financial objective for an entrepreneur?

a)

Achieving independence

b)

Raising capital

c)

Increasing market share

d)

Profit maximisation

43.

A business seeks to have a competitive (a)   .

44.

(a)   : "Changing an existing product or process"

45.

"The laws that a business must comply with"

(a)  

46.

The 4 P's are Product, Price, Promotion and Place. They are known as the "_________ ___"

(a)  

47.

???????? : "Out of date or no longer used"

(a)  

48.

The proportion of revenue left over after costs have been deducted.

(a)  

49.

investors who are part owners in the company.

(a)  

50.

Which one of the following is a benefit of being a sole trader?

a)

Full control over business decisions

b)

Business profits are shared

c)

Limited liability

d)

Ability to sell shares to the public

51.

Which one of the following is a reason why a business might conduct market research?

a)

To reduce staff numbers

b)

To avoid paying taxes

c)

To understand competitors

d)

To increase production costs