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WorksheetsEdexcel GCSE Business Theme 1 topics 1 to 3
Total questions: 51
Worksheet time: 28mins
Asset
changing an existing product or process
any item of value that a business owns, such as machinery or premises.
the proportion of sales in a market that are taken by one business
the flow of goods and services out of a country
Brand loyalty
This is how you market your business
A customers willingness to buy a product from a particular business rather than from competitors
The logo that you use to advertise your business
A customers willingness to buy a product from competitors
Competitive advantage
Who your competitors are
An advantage a business has over its rivals that is unique and sustainable
A document showing you whats wrong with your business
A financial statement showing you your advantages over your competitors
Consumer
The person who invents the product/service
The person who buys the product/service
The person who buys and uses the products/service
The person who sells the product/service
Customer base
The clients who do not buy/sell to the business
The clients who make money from the sale of products/services
The clients who sell the products/services to a business
The clients who buy the products/services of a business
Demographics
The laws that a business must comply with
The place where customers live and buy their products
Statistical differences that exist within a population, now and in the future
Out of date products
Differentiate
The strength and number of competitors operating in a market
Show that a product is different from similar products
Giving a product or service 'personality' with a name
Features of a product
E-Commerce
Paying your bills online
A telephone company
Using the internet to carry out business transactions
Changing an existing product with technology
Which of the following are services?
A new bag
A personal trainer
A new computer
A bank account
Which two of the following are examples of risk that can occur from business activity?
Profit
Lack of security
Independence
Business success
Financial loss
Which oneof the following is the correct definition of market mapping?
Collecting, collating and analysing data relating to the marketing and consumption of goods and services
A diagram showing where products or services in a market are positioned in relation to two variables
Dividing the market up into customer groups according to where customers are located
Plotting where products or services are positioned in relation to two variables considered important to customers
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
Differentiating your product can help it to stand out from the crowd. Which of the following are methods of differentiation?
Lower prices
better quality
Unique design
Celebrity endorsements
A product or 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
Business plan also consist of your Aims and Objectives.
Financial Objectives and Non-financial objectives.
Short term aims and long term aims.
Objectives must be SMART. What does SMART stand for?
Specific
Measurable
Achievable
Realistic
Time-bound
Specific
Manageable
Aims
Reality
Targeted
Survival
Measurable
Attainable
Revenue
Timely
What is the purpose of 'Research and development' in a business?
To train new employees
To divide the market into different segments
To get a new product ready to launch into a market
To calculate the business's yearly profit
What does 'Segmentation' refer to in a business context?
The process of selling shares
Dividing the market into different groups of potential customers
The method of calculating profits
The strategy for social media marketing
What is the purpose of "Target market" segmentation?
To decrease the variety of products offered
To increase overall business costs
To focus marketing policy on meeting specific customer requirements
To reduce the number of potential customers
Which one of the following is an example of a consumer ‘want’?
Warmth
Shelter
Makeup
Food
Which two of the following are examples of the roles of an entrepreneur?
Organising resources
Producing goods or services
Meeting customer needs
Making business decisions
Offering customer convenience
Which one of the following is a service?
Birthday cake
Mobile phone
Plane journey
Newspaper
What is an example of a reward from starting a business?
Increased overheads
Lack of security
Financial overheads
Independence
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 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
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
What is the definition of a business?
A business is an organisation set up to provide goods or services to customers, such as the public, government or other businesses.
An individual with an idea for a business.
An activity that achieves a reward for society.
This is the result of business activity.
What is the definition of an entrepreneur?
A business is an organisation set up to provide goods or services to customers, such as the public, government or other businesses.
An individual with an idea for a business.
An activity that achieves a reward for society.
This is the result of business activity.
Select the two products from the options below....
Car
Hair cut
Cleaner
Coffee
Select the two services from the options below....
Car
Hair cut
Cleaner
Coffee
What does 'S' in SMART stand for?
Sensible
Specific
Silly
Space
Which of these are financial aims? (Select 2 answers)
To have sales of £30, 000
To increase market share
To have the challenge of running a business
To improve education in the community
Which of these are non-financial aims? (Select 2 answers)
To have sales of £30, 000
To increase market share
To have the challenge of running a business
To improve education in the community
Which of the following is true in relation to e-commerce?
It involves customers buying products by visiting a physical store
It is the least direct channel of distribution
It refers to buying and selling products over the internet
Consumers always have less choice than buying in a physical store
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 two of the following are examples of primary market research?
Articles on the Internet
Direct observation
Newspaper reports
Face-to-face survey
Government statistics
What is meant by the term 'revenue'?
The total amount of money a business spends
The total amount of money a business earns from selling goods or services
The total profit a business makes after deducting costs
The interest a business earns from investments
Which of the following is an example of an entrepreneur?
Employee
Shareholder
Manager
Business owner
What does the acronym USP stand for in marketing?
United States Promotion
Unique Selling Point
Universal Sales Practice
Underlying Service Provider
What is the function of the National Minimum Wage?
To set maximum wages for employees
To ensure workers receive a fair minimum wage
To encourage businesses to maximise profits
To determine executive salaries
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
What is a potential consequence of not adapting to changing consumer needs?
Increased market share
Business growth
Loss of customers
Enhanced brand loyalty
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
Which one of the following is the correct formula for calculating the total revenue generated by each product sold by a business?
Variable costs X Selling price per unit
Fixed costs X Selling price per unit
Quantity sold X Selling price per unit
Total output X Total inputs
Which one of the following is the correct definition of break even?
When the quantity sold equals the quantity produced to sell
When fixed costs equal variable costs
When total revenue equals total costs
When total quantity equals total costs
Which two of the following are examples of cash outflows?
Rent on office premises
Cash from sales
Loans from the bank
Interest on investments
Corporation tax
