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WorksheetsTheme 1.4 for 2025
Total questions: 85
Worksheet time: 43mins
What is the main difference between limited and unlimited liability?
The amount of profit a business can make
The level of risk a business is willing to take
The number of employees a business can have
The type of products a business can sell
In a limited liability business, what is the maximum financial loss for an owner?
The total debt of the business
The value of their personal assets
The value of their financial investment in the business
The annual profit of the business
What type of business ownership does not have its own legal identity?
Limited liability company
Corporation
Unlimited liability business
Partnership
Which of the following is an example of a sole trader?
A large corporation with multiple shareholders
A small online clothing brand owner
A partnership between two friends
A government-owned enterprise
What is one advantage of being a sole trader?
High level of responsibility
Quick and easy to set up
Risk of unlimited liability
Works long hours
What is a disadvantage of sole trading?
Keeps the profits
Makes own decisions
Risk of unlimited liability
Low set-up costs
What is a characteristic of a partnership?
Only one owner
Unlimited liability
Two or more owners
No professional services
What is a document called that outlines the rules in a partnership?
Deed of partnership
Articles of association
Memorandum of understanding
Partnership agreement
Which of the following is an advantage of partnerships?
They are difficult to set up
There is shared decision-making by the owners
They have limited liability
They require more paperwork
What is a disadvantage of partnerships?
Limited liability
Easy to set up
Conflict amongst owners can occur
Less paperwork
What is a characteristic of a private limited company?
Unlimited liability
Shares can be sold to the public
Owners have limited liability
No need for annual financial reports
What is a disadvantage of a private limited company?
Less paperwork
Unlimited liability
More paperwork
No need for registration
What is a franchise?
A business that gives the right to another to sell goods using its name
A business that operates independently without any external help
A business that only sells products online
A business that manufactures goods for other companies
What must a new business do to become part of a franchise?
Pay a fee
Hire new employees
Change its name
Move to a new location
Who is a franchisee?
A business that agrees to manufacture, distribute, or sell branded products under the license of a franchisor
A business that creates its own brand and products
A business that only sells products online
A business that operates independently without any external help
What is the role of a franchisor?
To give franchisees the right to manufacture, distribute, or sell branded products for a fixed sum or royalty payment
To operate independently without any external help
To only sell products online
To manufacture goods for other companies
What is one advantage of setting up a franchise?
Access to free training and marketing
High initial setup cost
Limited decision-making power
Increased local competition
What is a disadvantage of setting up a franchise?
Lower risk for new entrepreneurs
Part of an established business
Paying royalties to the franchisor
Easier to make money
What is required for e-commerce to take place?
A physical store location
A seller with electronic products and services
A local advertising campaign
A traditional cash register
What is an advantage of e-commerce?
Limited customer reach
Increased local competition
Ability to sell at any time of the day or night
High maintenance costs
What is a disadvantage of e-commerce?
Attracting customers globally
Employees needing new skills
Lower operational costs
Increased brand visibility
What is one of the main uses of social media for businesses?
Manufacturing products
Conducting financial audits
Sales and marketing
Developing new software
Which social media platform is mentioned as useful for communicating with stakeholders?
What is a potential downside of using social media to interact with customers?
Increased production costs
Inaccurate or inappropriate responses
Decreased brand visibility
Limited customer reach
Why might businesses use closed (private) social media tools?
To increase public engagement
For informal or internal communication with staff
To advertise products to a wider audience
To reduce marketing costs
Which digital communication tool allows written messages to be sent instantly to others and files to be shared as attachments?
Mobile phones
Social media
Cloud services
What is the primary function of mobile phones in digital communication?
Enable online document editing
Conduct verbal conversations
Share ideas and content
Create documents and capture images
Which digital tool is used for meetings that involve communication over the internet between participants in different locations?
Websites
Mobile applications
Web conferencing
Instant messaging
By what year is it estimated that only 9% of all payments in the UK will be made in cash?
2018
2028
2017
2008
In which year did debit cards become the most frequently used method of making payments in the UK?
2008
2018
2017
2028
What is required to authorize a payment using a chip and pin card?
A signature
A personal identification number (PIN)
A fingerprint
A phone number
When were contactless payments introduced in the UK?
2005
2007
2010
2015
What is the maximum amount typically allowed for contactless payments in the UK?
£10
£20
£30
£50
What is one positive impact of e-commerce on sales activity?
Businesses can only sell locally
Prices cannot be updated easily
Businesses can attract customers across the world
Customers cannot see which items are in stock
How can digital communication systems impact sales activity?
They make it harder to contact a business
They decrease customer trust
They help increase sales by making it easier to contact a business
They prevent customers from making purchases
What is a negative impact of e-commerce on sales activity?
Customers are restricted to local businesses
There is more potential competition
Logistical issues are not a concern
Customer service is easier for small businesses
How can social media impact sales activity positively?
By damaging the reputation of a business
By making it difficult to interact with customers
By building customer relationships through direct communication
By preventing sales and marketing campaigns
Why might businesses that only accept cash find it difficult to attract customers?
Cash is the most convenient payment method
Customers prefer easy and convenient payment methods
Cash payments are faster than electronic payments
Customers dislike using digital payment methods
What is one benefit of digital communication systems for businesses?
Increased need for physical office space
Higher costs for printing and postage
Ability for employees to work remotely
More expensive face-to-face meetings
How does e-commerce help reduce costs for businesses?
Requires more sales staff
Needs larger premises
Avoids high street location expenses
Increases warehousing costs
What is a cost associated with e-commerce?
Reduced need for online payments
Increased sales staff requirements
Costs involved in hosting a website
Decreased warehousing needs
How does social media impact business costs?
Increases the need for physical advertising
Provides a cost-effective way to reach a wide audience
Requires more in-person customer interactions
Necessitates larger office spaces
What is a disadvantage of new payment technologies for businesses?
Immediate payment processing
No need for cash on premises
Small percentage fee for transactions
Increased cash handling costs
Which aspect of the marketing mix allows products to be adapted and accessed easily in a format convenient to the customer?
Price
Product
Place
Promotion
How does digital communication help businesses with pricing?
It increases the cost of products.
It makes products more expensive.
It helps keep prices low.
It has no effect on pricing.
What is one way digital communication impacts the 'Place' aspect of the marketing mix?
It limits access to services.
It allows access to services regardless of location.
It makes services more expensive.
It reduces the number of available services.
How can businesses use digital communication for promotion?
By increasing product prices.
By reducing the number of products.
By emailing newsletters and advertising online.
By limiting customer access to services.
What is one impact of e-commerce on the 'Product' aspect of the marketing mix?
Customers can only purchase physical products.
Customers can download digital products immediately after payment.
Customers have to wait for product delivery.
Customers cannot access digital products.
How does e-commerce affect the 'Price' aspect of the marketing mix?
It makes price comparison difficult.
It eliminates the need for competitive pricing.
It allows easy price comparison across online sellers.
It increases the cost of products.
Which aspect of the marketing mix allows businesses to interact with customers worldwide, regardless of location?
Product
Price
Place
Promotion
What is a cost-effective way of targeting promotions at specific groups of customers using social media?
Product
Price
Place
Promotion
Which payment method feature allows digital products to be purchased easily?
Cash payments
Online payment methods
In-store purchases
Cheque payments
What must be considered when setting the price of a product due to specific payment methods?
Product quality
Customer feedback
Fees incurred
Marketing strategies
Which act forms the basis of consumer rights in the UK alongside the Consumer Protection Act (1987)?
The Consumer Safety Act (1990)
The Consumer Rights Act (2015)
The Consumer Fairness Act (2000)
The Consumer Equality Act (2010)
What does the Consumer Protection Act (1987) cover?
Only digital products
The product or service, returns, repairs and replacement, delivery
Only physical goods
Only services
What must goods be according to the Consumer Protection Act?
Cheap and affordable
Described accurately, fit for purpose, satisfactory quality
Available in all stores
Made locally
What is required of service providers under the Consumer Protection Act?
They must offer free services
They must use reasonable care and skill, provide services in a reasonable time, and for a reasonable price
They must provide services 24/7
They must offer discounts
What can consumers do if a product is not as described within 30 days?
Keep the product and do nothing
Return it for a full refund
Exchange it for a different product
Complain to the manufacturer
What happens if a fault develops within the first six months of ownership?
The consumer must prove the fault
The business must prove the fault was not there at the time of sale
The consumer cannot return the product
The consumer must pay for repairs
What is the main purpose of the Act mentioned in the document?
To ensure products are safe
To increase product sales
To promote international trade
To reduce manufacturing costs
What does the term 'employment law' refer to?
A set of rules for product safety
A piece of government legislation to protect employees
A guideline for increasing company profits
A policy for reducing taxes
Which area of employment law is designed to ensure fair treatment of all people?
Recruitment
Pay
Discrimination
Health and safety
What is the focus of health and safety legislation in the workplace?
To increase employee salaries
To ensure employees are safe at work
To promote employee recruitment
To enhance employee benefits
Which act requires employers to treat people fairly and not discriminate in any way?
Data Protection Act (2018)
Employment Rights Act (1996)
Equality Act (2010)
National Minimum Wage Act (1998)
What must businesses do under the National Minimum Wage Act (1998)?
Pay staff based on their performance
Pay staff a minimum hourly rate
Provide free health insurance
Offer flexible working hours
What is required by the Employment Rights Act (1996) when a new employee starts a job?
A verbal agreement of employment terms
A written statement outlining employment details
A probation period of six months
A mandatory training session
According to the Equality Act (2010), what is illegal for businesses to do regarding pay?
Pay based on experience
Pay different rates for the same job based on gender
Pay based on education level
Pay based on location
According to the Equality Act (2010), can businesses discriminate against someone based on their age?
Yes, if they are too young.
Yes, if they are too old.
No, unless there is a specific reason like a driving license requirement.
Yes, if they are not experienced.
What must businesses do to comply with the Equality Act (2010) regarding disability?
Provide free healthcare.
Ensure access to the workplace and necessary equipment.
Offer higher salaries.
Give extra vacation days.
Under the Equality Act (2010), can people be discriminated against for undergoing gender reassignment?
Yes, if they are in the process.
No, they cannot be discriminated against.
Yes, if they have completed the process.
Yes, if they plan to undergo the process.
Is discrimination based on marital status allowed under the Equality Act (2010)?
Yes, if they are single.
No, it is not allowed.
Yes, if they are married.
Yes, if they are in a civil partnership.
Can women be discriminated against during pregnancy according to the Equality Act (2010)?
Yes, during the first trimester.
No, they cannot be discriminated against.
Yes, after giving birth.
Yes, if they are not married.
What does the Equality Act (2010) say about discrimination based on race?
It is permitted if the person is not a citizen.
It is not permitted.
It is allowed in certain jobs.
It is allowed if the person agrees.
Can people be discriminated against based on their religion according to the Equality Act (2010)?
Yes, if they have no religious beliefs.
No, discrimination based on religion is not allowed.
Yes, if they belong to a minority religion.
Yes, if they change their religion.
Under the Equality Act (2010), can businesses treat men and women differently?
Yes, if they have different roles.
No, unless there is a specific exception.
Yes, if they work in different departments.
Yes, if they agree to it.
What is one of the responsibilities of employers under the Health and Safety at Work Act (1974)?
Provide free meals
Offer flexible working hours
Supply safety equipment
Ensure job promotions
According to the Working Time Regulations, how many consecutive hours off must employees have in every 24-hour period?
8 hours
11 hours
10 hours
9 hours
What is an example of an additional cost for businesses under the Consumer Protection Act (1987)?
Provide health insurance
Test products for safety standards
Offer retirement benefits
Supply office supplies
Under the Employment Rights Act (1996), what must employers provide within two months?
A salary increase
A written statement of employment details
A performance review
A health check-up
What is the main purpose of the National Minimum Wage Act (1998)?
Employ additional staff to cover hours required
Pay staff higher wages
Make financial contributions to employee pensions
Review the data that is held, and delete it when it is no longer required
Which act requires employers to make financial contributions to employee pensions?
Equality Act (2010)
Consumer Rights Act (2015)
Pensions Act (2008)
Data Protection Act (2018)
What is a consequence of meeting legal obligations for a business?
Increased legal fees
Loss of reputation
Staff are more likely to work harder
Higher recruitment costs
What might happen to employers who do not comply with employment laws?
Gain a good reputation
Attract more customers
Face expensive legal fees
Increase sales
What could be a consequence of bad publicity for a business?
Increased sales and staff
Improved reputation
Damage to the business's reputation
More suppliers wanting to associate
Why might suppliers and stakeholders be reluctant to associate with a business?
Due to high profits
Due to bad publicity
Due to excellent customer service
Due to innovative products
