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Year 10 Edexcel GCSE Business 1.1.1 to 1.2.4

Total questions: 54

Worksheet time: 28mins

Name
Class
Date
1.

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?

a)

Inability to break even

b)

Lack of security

c)

Business failure

d)

Lack of independence

2.

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?

a)

Earn more money

b)

Pursue an interest

c)

Be her own boss

d)

Work more flexible hours

3.

Increased concern from consumers over the environment has led to new business developing products from recycled materials. These business ideas have come about due to:

a)

Services that have become obsolete

b)

Products that have become obsolete

c)

Changes in consumer demand

d)

Changes in the interest rate

4.

Which of the following statements best describes the term, reward?

a)

The probability that something will go wrong

b)

The chance of loss or damage

c)

When a hoped for outcome does not happen

d)

The benefits gained through business activity

5.

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?

a)

An original idea

b)

Adapting an existing product

c)

Adapting an existing service

d)

Adapting an existing idea

6.

Which of the following is a financial reason why an entrepreneur might start-up a new

business?

a)

To make a profit

b)

To pursue a skill or interest

c)

To have more freedom in decision-making

d)

To achieve a work-life balance

7.

Which of the following best describes the term, obsolete?

a)

Demand more of a particular product or service

b)

Want, and can afford, to buy more products and services

c)

Can no longer afford to buy a particular product or service

d)

No longer want to buy a particular product or service

8.

Lack of overall planning and poor decision-making can lead to business failure. This is known as:

a)

Poor management

b)

Poor quality

c)

Poor understanding of the economy

d)

Poor sales levels

9.

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:

a)

Was developed and delivered to the market quickly

b)

Solved a customer problem

c)

Offered a cheaper way of doing something

d)

Is aimed at a fast growing market

10.

Which of the following statements is true in relation to goods and services?

a)

Services can be touched and held, whilst goods are usually invisible

b)

Goods can be touched and held, whilst services are intangible

c)

Services are visible, whilst goods are usually invisible

d)

Both goods and services are intangible

11.

Which of the following are services?

a)

A new bag

b)

A personal trainer

c)

A new computer

d)

A bank account

12.

Which two of the following are examples of risk that can occur from business activity?

a)

Profit

b)

Lack of security

c)

Independence

d)

Business success

e)

Financial loss

13.

Demographics

a)

The laws that a business must comply with

b)

The place where customers live and buy their products

c)

Statistical differences that exist within a population, now and in the future

d)

Out of date products

14.

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

a)

The total sales of all businesses in a particular market

b)

The sales of one particular business as a proportion of the total sales in a market

c)

A group of customers that share a common characteristic

d)

A part or portion of a business owned by another business or individual

15.

Which one of the following is the correct definition of market research?

a)

The process responsible for getting the right product to customers at the right price, in the right place, at the right time

b)

The systematic investigation and study of materials and sources to improve knowledge

c)

A place where buyers and sellers get together to exchange products and services

d)

The collection, collation and analysis of data relating to the consumption of goods and services

16.

Which one of the following is the correct definition of market segmentation?

a)

The collection, collation and analysis of data relating to the marketing and consumption of goods and services

b)

A group of customers in an entire market that share similar needs and wants and common characteristics

c)

Dividing a market up into customers with similar needs and wants and common characteristics

d)

The management process responsible for getting the right product, at theright price, in the right place, at the right time to the customer

17.

The desire for products or services that are not necessary = ???

a)

Consumer hunt

b)

Consumer need

c)

Consumer demand

d)

Consumer want

18.

A successful ____ must be willing to take risks

a)

employee

b)

stakeholder

c)

entrepreneur

d)

consumer

19.

Selling price is greater than the costs of making the product = ???

a)

Added demand

b)

Added value

c)

Added profit

d)

Added finance

20.

What does USP stand for?

a)

Unique Social Profit

b)

Unique Selling Point

c)

Unique Sales Place

d)

Unique Sold Patch

21.

Market research that you go out and do it yourself = ???

a)

Secondary research

b)

Desk research

c)

DIY research

d)

Primary research

22.

Convenience, Branding, Quality. Design. Unique selling points.

a)

Understanding customer needs.

b)

Ways to add value.

c)

THe role on entrepreneurs

23.

Organises resources.

Makes business decisions.

Takes risks.

a)

The role of entrepreneurship. An entrepreneur…

b)

The role of businesses.

24.

Price

Quality

Choice

Convenience

a)

Ways to add value.

b)

The role of an entrepreneur.

c)

What customer needs are.

25.

The following are all forms of what?:
Survey

Questionnaire

Focus group

Observation

a)

Market research.

b)

Primary market research.

c)

Secondary market research.

26.

What does "E-commerce" involve?

a)

Using the internet to promote and sell a good or service

b)

Selling goods exclusively in physical stores

c)

Promoting services through direct mail only

d)

Buying products only through face-to-face transactions

27.

What does "Adding value" mean in a business context?

a)

Reducing costs to increase profit margins

b)

Selling a product for more than it costs through processes applied

c)

Increasing the number of products available

d)

Expanding business operations

28.

Which of the following is a way to achieve competitive advantage?

a)

Increasing prices regularly

b)

Ignoring customer feedback

c)

Innovating new products or services

d)

Reducing the quality of products

29.

Which of the following is most likely to be a benefit of business growth?

a)

Increased costs

b)

Increased sales

c)

Increased competition

d)

Increased chance of failure

30.

Which of the following statements best describes the term, competition?

a)

When different businesses attempt to attract different customers

b)

When businesses do not have any rivals

c)

When different businesses attempt to attract the same customers

d)

When different businesses have only one supplier of raw materials

31.

Which of the following is an example of a business that has a competitive strength based upon quality?

a)

A discount supermarket that offers value for money groceries

b)

A local convenience store that sells a wide range of commonly used products

c)

A restaurant which uses fresh, local produce in all of its dishes

d)

A coffee shop that has an outlet on a busy shopping street

32.

Which of the following ways might a small successful technology firm manufacturing unique products use to compete with its rivals?

a)

Reduce its prices

b)

Offer an excellent after sales service

c)

Reduce its product range

d)

Relocate production to a busy high street

33.

Which of the following is a competitive weakness based on location?

a)

A restaurant locates on a quiet side street in a busy town

b)

A footwear shop offers a kids shoe fitting service by untrained staff

c)

A supermarket frequently runs out of stock of popular product lines

d)

A local café serves food to customers which is cold

34.

In which of the following scenarios would a business face no competition?

a)

When there are several suppliers of gas available to residents

b)

When there are many telephone networks available to residents

c)

When there is only one supplier of water to residents

d)

When there are numerous electricity suppliers available to residents

35.

Which of the following businesses is best known for its ability to compete with its rivals on price?

a)

Primark

b)

Marks & Spencer

c)

J D Sports

d)

Selfridges

36.

An independent, high fashion retailer targeting teenagers has recently opened in a popular shopping centre located in a busy city centre. Which of the following is the best way the business could compete successfully with its rivals?

a)

Charge higher prices and offer a smaller product range

b)

Charge lower prices and offer a wider product range

c)

Charge high prices for low quality clothing

d)

Charge moderate prices and provide a low level of customer service

37.

A national retailer offers to refund the difference if customers find the same product cheaper elsewhere. This is an example of competition based on:

a)

Location

b)

Price

c)

Quality

d)

Product range

38.

Which of the following would be a suitable way for a start-up take away business to use to compete with its rivals?

a)

Offer a limited choice of options on its menu

b)

Offer higher prices for similar food options

c)

Offer a highly efficient and friendly service

d)

Price match in conjunction with offering smaller portion sizes

39.

Which of the following best describes the term, competitive environment?

a)

Where every business attempts to minimise its costs

b)

When a business is the only seller of a good/service in a market

c)

Where different businesses in different markets compete on price

d)

The extent of rivalry between different businesses in the same market

40.

A business faces no direct competition in its market and sells a product that is in high demand. Which two of the following would represent possible decisions that this business would make?

Select two answers:

a)

It will charge similar prices to its competitors

b)

It will be less likely to develop new, innovative products

c)

It will charge lower prices than its competitors

d)

It will promote itself extensively to attract customers

e)

It will charge higher prices

41.

UK Supermarkets like Aldi & Lidl are generally competing based mainly on...

a)

Price

b)

Range of products

c)

Location

d)

Branding

42.

What is the primary purpose of market segmentation?

a)

To increase production costs

b)

To target specific groups of consumers

c)

To reduce the number of competitors

d)

To expand the product range

43.

Which of the following is a characteristic of a monopoly market structure?

a)

Many sellers offering similar products

b)

One seller dominating the market

c)

Free entry and exit for businesses

d)

High level of product differentiation

44.

What is a key benefit of conducting primary market research?

a)

It is less expensive than secondary research

b)

It provides data that is specific to the researcher's needs

c)

It relies on existing data sources

d)

It is quicker to obtain than secondary research

45.

What is the primary aim of a business in the private sector?

a)

To provide public services

b)

To maximize profits

c)

To reduce unemployment

d)

To support government policies

46.

Which of the following is an example of a business objective?

a)

Increasing market share by 10% in the next year

b)

Providing excellent customer service

c)

Being environmentally friendly

d)

Offering a wide range of products

47.

How can a business measure the success of its objectives?

a)

By analyzing customer feedback

b)

By comparing actual performance against set targets

c)

By increasing the number of employees

d)

By expanding into new markets

48.

How can a business measure its success in achieving its objectives?

a)

By analyzing customer feedback

b)

By comparing with competitors

c)

By reviewing financial statements

d)

All of the above

49.

Which of the following is a key factor in determining the target market for a new product?

a)

Product cost

b)

Consumer demographics

c)

Supplier availability

d)

Employee skills

50.

What is a common strategy for a business to differentiate itself in a competitive market?

a)

Lowering product quality

b)

Offering unique features

c)

Increasing operational costs

d)

Reducing customer service

51.

Which of the following is a potential risk for entrepreneurs starting a new business?

a)

Guaranteed profits

b)

Market saturation

c)

Unlimited resources

d)

Stable market conditions

52.

What does the 'S' in S.M.A.R.T. goals stand for?

a)

Simple

b)

Specific

c)

Strategic

d)

Standard

53.

Which of the following is NOT a characteristic of a S.M.A.R.T. goal?

a)

Measurable

b)

Achievable

c)

Realistic

d)

Vague

54.

Why is it important for goals to be time-bound in the S.M.A.R.T. framework?

a)

To ensure goals are easy to achieve

b)

To provide a deadline for accountability

c)

To make goals more flexible

d)

To allow for unlimited resources