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WorksheetsEdexcel GCSE Business: Theme 1, Term 1
Total questions: 50
Worksheet time: 28mins
Which of the following is a key characteristic of an entrepreneur?
Risk aversion
Creativity
Indecisiveness
Pessimism
What does the term "changing consumer needs" refer to?
Consumers always wanting the same products
The static nature of consumer preferences
The evolving preferences and demands of consumers
Consumers' resistance to new products
Which of the following is an example of obsolescence?
A new smartphone model being released
A product that never goes out of style
A typewriter in the digital age
A timeless piece of art
What is a common source of new business ideas?
Ignoring market trends
Copying competitors without innovation
Identifying gaps in the market
Sticking to traditional methods
How can technology lead to the creation of new business ideas?
By limiting access to information
By reducing the need for innovation
By providing new tools and platforms
By making existing products obsolete
What is a potential consequence of not adapting to changing consumer needs?
Increased market share
Business growth
Loss of customers
Enhanced brand loyalty
Which of the following best describes the concept of obsolescence in business?
Products that are always in demand
Products that become outdated or no longer useful
Products that increase in value over time
Products that are immune to technological changes
What role does market research play in generating new business ideas?
It discourages innovation
It provides insights into consumer preferences
It guarantees business success
It limits the scope of new ideas
What is a potential risk of starting a new business?
Guaranteed profit
Financial loss
Immediate market dominance
Unlimited resources
Which of the following is a reward of taking business risks?
Increased competition
Higher potential returns
Regulatory challenges
Market saturation
How can a business mitigate risks?
By ignoring market research
By diversifying products and services
By reducing customer feedback
By avoiding innovation
What is a primary objective of a business enterprise?
To minimize customer satisfaction
To generate profit
To reduce market competition
To limit product innovation
Which of the following is a benefit of innovation in business?
Decreased market share
Increased operational costs
Enhanced competitive advantage
Reduced customer base
What is a common challenge faced by new business enterprises?
Excessive brand loyalty
Limited access to capital
Overwhelming market demand
Abundant resources
What is added value in business?
No change in worth or desirability of a product or service
Increase in worth or desirability of a product or service
Increase in cost of a product or service
Decrease in worth or desirability of a product or service
What is the formula for calculating added value?
Added Value = Sales Revenue / Cost of Goods Sold
Added Value = Sales Revenue * Cost of Goods Sold
Added Value = Sales Revenue - Cost of Goods Sold
Added Value = Sales Revenue + Cost of Goods Sold
Explain the concept of added value with an example.
Added value is when a company keeps the value of raw materials the same throughout the production process
Added value is when a company takes finished products and turns them back into raw materials
Added value is when a company decreases the value of raw materials during the production process
An example of added value is when a company takes raw materials and transforms them into a finished product, increasing the value of the materials through the production process.
What are the key factors that can enhance the added value of a product or service?
Outdated technology and design
Lack of customer support
Low price and affordability
Quality, uniqueness, customer experience, branding, and innovation
Discuss the importance of added value in customer satisfaction.
Added value enhances the overall experience and perceived worth of the product or service.
Added value is only important for the company, not the customer.
Customer satisfaction is not influenced by added value.
Added value has no impact on customer satisfaction.
What is the primary aim for all businesses?
To survive
To make profit
To expand
To create employment
What is the difference between goods and services?
Services cost more
Goods are purchased in a shop
Goods are tangible, Services intangible
They are the same
Which are the three key roles an entrepreneur must fulfill?
organising resources
making business decisions
take customers to lunch
taking risks
Three ways that new business ideas come about are
Ask a friend
Changes in what customers want
Changes in technology
Products becoming obsolete
Which of the following is the role of an entrepreneur?
To be a sole trader
Personal Satisfaction
Taking risks
Going to university
How can a small business add value?
Locate in a convenient place
Pay a higher rate of taxation
Reduce its cash inflows
Use a long term source of finance
Which one of the following is a service?
Birthday cake
Mobile phone
Plane journey
Newspaper
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 primary market research?
Articles on the Internet
Direct observation
Newspaper reports
Face-to-face survey
Government statistics
Which one of the following is not an example of a customer need or expectation?
Convenience
Good quality
Limited choice
Value for money
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 research?
The process responsible for getting the right product to customers at the right price, in the right place, at the right time
The systematic investigation and study of materials and sources to improve knowledge
A place where buyers and sellers get together to exchange products and services
The collection, collation and analysis of data relating to the consumption of goods and services
Which one of the following are customers least likely to consider when choosing between products from competing businesses’?
The standard of customer service provided
The number of staff the business employs
The quality of the product
The price of the product
Which one of the following is an example of quantitative data?
The food we all ate tasted really tangy
Everyone in the group has a Smartphone
Most people in the group are not very happy
Some people in the class are very confident
Which two of the following are customers most likely to consider when choosing between competing businesses’ products?
How many people make the product
How many products the business sells
How easy it is to purchase the product
How many shareholders the business has
How much the product costs to buy
Is this brand of clothing a need or want?
Need
Want
You can live without some of your needs, so go ahead and purchase your wants instead.
True
False
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
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
What does USP stands for?
Universal Standard Pilot
Unique Selling Point
United Service Providers
Ultimate Secondary Procedures
What is a calculated risk?
where a chance of exposure to loss or injury is undertaken
having looked at the disadvantages of taking that risk
where a chance of exposure to loss or injury is undertaken
having carefully assessed the advantages and disadvantages of taking that risk
where a chance of exposure to loss or injury is undertaken
having completely assessed the advantages and disadvantages of taking any risk
Independence is often seen as bonus to starting your own business, it means?
Being your own boss
Not being the boss
Being able to share the risks
Working for only one other company
What are the four customer needs?
Price, quality, choice and convenience
Price, product, place and promotion
Price, quality, promotion and convenience
Which of the following statements are reasons why it is important for a business to identify and understand customer needs? The business is:
More likely to generate sales and less likely to survive
More likely to generate sales and more likely to survive
Less likely to generate sales and less likely to survive
Less likely to generate sales and more likely to survive
It is important that any market research data collected is reliable. Which two of the following are most likely to be examples of unreliable data?
Select two answers:
Collected from a group of friends
Out of date
Typical of the target market
Specific to the business
Free from bias
Lifestyle market segment is
classified according to wants
classified according to needs
classified according to interests
classified according to fashion
Define the term Market Segmentation
A portion of the entire market that your company is targeting
a subsection of the market that shares different characteristics
Distributing Market based on Value for Money
Select random customers from the market
Cruise ships are famous for old age couples. State how they have segmented their market based on
Geographic
Demographic
Psychographic
Typographic
