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WorksheetsBusiness Revision
Total questions: 85
Worksheet time: 46mins
One drawback to a business if a tariff is placed on the raw materials it imports is:
Increased production costs
Improved product quality
Decreased market competition
Enhanced customer satisfaction
One benefit to a business from exporting its products is:
Increased market reach
Higher production costs
Decreased brand visibility
Reduced customer base
One benefit to a business of using loan capital as a source of finance is:
It does not dilute ownership.
It provides tax benefits.
It is a permanent source of capital.
It requires no collateral.
One drawback to a business of using batch production is:
Increased storage costs
Improved product quality
Faster production times
Lower labor costs
One impact improved technology may have on a business is:
Increased operational efficiency
Decreased customer satisfaction
Higher employee turnover
Reduced market share
Q6. One reason why an entrepreneur would produce a business plan is:
To secure funding from investors
To hire employees
To increase product prices
To reduce competition
(a) may arise between (b) seeking maximum profits and (c) desiring higher wages or better (d) . This tension can lead to disagreements over (e) allocation and company policies.
One objective of employees may be (a) as they seek stable (b) and consistent (c) This drives them to perform well and contribute (d) to the organization's (e)
High salary
Flexible hours
Remote work
One advantage to a business of providing ongoing training to its employees is:
Increased employee turnover
Higher operational costs
Improved employee skills and productivity
Decreased employee satisfaction
One drawback to a business of not being able to retain its employees is:
Increased training costs for new employees
Improved employee morale
Decreased customer satisfaction
Higher employee retention rates
One benefit to a business of setting employees individual targets to achieve is:
Increased employee motivation
Higher operational costs
Decreased productivity
Reduced employee engagement
Q12. One benefit to a business of having performance reviews with its employees is:
Improved employee performance
Increased operational costs
Decreased employee satisfaction
Reduced communication
One advantage to a business of being recognised as environmentally responsible is:
Increased operational costs
Improved public image
Decreased employee morale
Reduced product quality
Q14. Explain one disadvantage to a small business of using an overdraft as a source of business finance.
Overdrafts can lead to high interest costs.
Overdrafts improve cash flow flexibility.
Overdrafts are a permanent source of finance.
Overdrafts require no repayment schedule.
One disadvantage to a small business of using a focus group to collect market research data is:
It is time-consuming and expensive.
It provides quantitative data.
It guarantees accurate results.
It eliminates the need for surveys.
One advantage of opening up a business as a franchise is:
A. Higher risk of failure
B. Established brand recognition
C. Complete operational freedom
D. Lack of support from franchisor
Q17. One advantage of starting a business as a private limited company is:
Limited liability for shareholders
Unlimited liability for shareholders
Easier to raise capital through public shares
No legal distinction between the company and its owners
One advantage to a business of having motivated employees is:
Increased productivity
Higher turnover
Decreased morale
Reduced innovation
Explain one advantage to a business of improving its environmental sustainability.
Cost savings through more efficient resource use
Increased regulatory compliance
Higher employee turnover
Reduced product quality
One advantage to a business of producing a high-quality product is:
Increased customer satisfaction
Higher production costs
Decreased brand reputation
Reduced market share
Q21. Explain one advantage to a business of using just in time (JIT) stock control.
Reduces inventory costs
Increases production time
Decreases product quality
Requires more storage space
Q22. Explain one advantage to a small business from using e-commerce.
E-commerce enables small businesses to reach broader markets beyond their local area without significant overhead costs associated with physical storefronts, facilitating increased sales opportunities.
E-commerce limits small businesses to local markets, increasing overhead costs.
E-commerce requires significant investment in physical storefronts.
E-commerce decreases sales opportunities for small businesses.
One advantage to a small business from using retained profit as a source of finance is:
It does not incur interest costs.
It increases the company's debt.
It requires collateral.
It leads to loss of ownership.
Q24. Explain one advantage to a small business of meeting all employment legislation.
Avoids legal disputes or penalties
Increases operational costs
Reduces employee productivity
Limits business growth
Meeting legal (a) fosters trust among (b) and partners by demonstrating reliability and (c) standards, which can enhance (d) and (e) over time.
One advantage to a small business of using market mapping is:
It helps identify market gaps and opportunities.
It increases production costs.
It guarantees immediate success.
It eliminates competition.
Q27. Explain one advantage to a small business of using trade credit as a source of finance.
It improves cash flow by allowing delayed payment to suppliers.
It increases the business's equity.
It reduces the need for a business plan.
It eliminates the need for a bank account.
One advantage to customers from increased competition is:
Lower prices
Reduced quality
Limited choices
Higher taxes
Q29. Explain one benefit to a business from improving the aesthetic element of a product's design mix?
Increases production cost
Enhances brand image
Reduces product quality
Decreases market reach
One benefit to a business of allowing its employees flexible hours is:
Increased employee satisfaction
Higher operational costs
Reduced productivity
Decreased employee retention
One benefit to a business of having a good relationship with its suppliers is:
Increased product prices
Improved supply chain efficiency
Decreased product quality
Reduced customer satisfaction
One benefit to a business of using external recruitment to employ new staff is:
Access to a larger pool of candidates
Lower training costs
Increased employee loyalty
Reduced recruitment time
One benefit to a business of withdrawing a product when it enters the decline phase of its product life cycle is:
Reducing losses from unsold inventory
Increasing production costs
Expanding market share
Enhancing product features
One benefit to a small business from having a unique selling point is:
Increased competition
Higher costs
Differentiation from competitors
Reduced market share
Q35. Explain one benefit to a small business of understanding customer needs.
Improved customer satisfaction
Increased operational costs
Decreased product quality
Reduced market share
Q36. Explain one benefit to an entrepreneur of buying a franchise to start a business.
Access to an established brand and customer base
Complete creative freedom
No initial investment required
Guaranteed success without effort
Q37. Explain one disadvantage of starting a business as a partnership.
A. Limited liability for partners
B. Shared decision-making can lead to conflicts
C. Easier access to capital
D. Complete control over business decisions
One disadvantage of starting a small business as a partnership is:
Limited liability for partners
Shared decision-making can lead to conflicts
Easier access to capital
Complete control over business decisions
One disadvantage to a business of having a flat organisational structure is:
Reduced opportunities for employee promotion
Increased levels of bureaucracy
Slower decision-making process
Higher operational costs
One disadvantage to a business of having a poor relationship with its suppliers is:
Increased costs due to lack of negotiation power
Improved product quality
Faster delivery times
Better supplier loyalty
Q41. Explain one disadvantage to a business of having poor customer service.
Loss of customers
Increased profits
Better brand reputation
Higher employee satisfaction
Q42. Explain one disadvantage to a business of using a just in time (JIT) system of stock control.
A JIT system leaves little room for error in the supply chain.
It ensures a high level of stock at all times.
JIT systems are costlier than traditional systems.
JIT systems guarantee no production delays.
Q43. Explain one disadvantage to a business of using loan capital as a source of finance.
Increased financial risk due to interest obligations
Immediate ownership dilution
Reduced operational control
Increased equity value
One disadvantage to a business of using remote working is:
Increased productivity
Reduced overhead costs
Lack of team cohesion
Access to a wider talent pool
One disadvantage to a small business from an increase in unemployment is:
Increased demand for products
Higher employee turnover
Decreased consumer spending
Lower interest rates
One disadvantage to a small business from using retained profit for expansion is:
It may lead to a lack of funds for other opportunities.
It increases the business's debt.
It requires external financing.
It reduces the owner's control over the business.
One disadvantage to a small business of an increase in interest rates is:
Increased borrowing costs
Decreased borrowing costs
Increased customer spending
Decreased competition
One disadvantage to a small business of manufacturing a high quality product is:
Increased production costs
Lower customer satisfaction
Reduced product lifespan
Decreased brand reputation
One disadvantage to a small business of not paying its employees on time is:
Increased employee satisfaction
Improved cash flow
Decreased employee morale
Enhanced company reputation
One disadvantage to a small business of using qualitative data for market research is:
It is time-consuming and costly to gather.
It provides numerical data that is easy to analyze.
It offers a broad overview of the market.
It is always accurate and reliable.
One drawback to a business from differentiating its product is:
Increased production costs
Higher customer satisfaction
Improved brand loyalty
Expanded market reach
One drawback to a business of having low levels of cash is:
Increased profitability
Improved employee morale
Inability to meet financial obligations
Enhanced customer satisfaction
One drawback to a business of introducing a system of quality assurance is:
Increased costs due to training and implementation
Improved customer satisfaction
Higher employee morale
Enhanced product quality
One drawback to a business of using job production is:
Higher costs due to customization
Faster production times
Lower quality of products
Increased automation
One impact on a business from a lack of communication is:
Increased productivity
Improved employee morale
Decreased efficiency
Enhanced customer satisfaction
One impact on a business from increased globalization is:
Increased competition from international companies
Decreased access to global markets
Reduced innovation and creativity
Lowered standards of quality
Q57. One impact on a business from reducing the size of its workforce is:
Increased operational efficiency
Higher employee morale
Reduced operational costs
Improved customer satisfaction
Q58. Explain one impact on a business if tariffs are placed on its exports.
Increased production costs
Reduced competitiveness in foreign markets
Improved domestic market share
Higher employee wages
One impact on a business of introducing job rotation is:
Increased employee motivation
Decreased employee productivity
Higher training costs
Reduced employee satisfaction
One impact on a business of using flow production is:
Increased production speed
Higher labor costs
Decreased product quality
Reduced automation
One impact on a small business of an increase in unemployment is:
Increased demand for luxury goods
Higher employee turnover
Reduced consumer spending
Expansion of business operations
Q62. Explain one impact that a pressure group can have on a business.
Pressure groups can increase a business's costs by forcing them to implement changes.
Pressure groups can decrease a business's costs by providing financial support.
Pressure groups have no impact on a business's operations.
Pressure groups always lead to positive publicity for a business.
One method a business could use to differentiate its product is:
Lowering the price
Improving product quality
Increasing advertising
Expanding distribution channels
One method a business could use to improve the quality of its products is:
Implementing a quality management system
Increasing the price of the product
Reducing the workforce
Decreasing production time
Explain one method that a business could use to extend the life cycle of one of its products.
Rebranding the product
Increasing the price
Reducing the quality
Discontinuing the product
One method that a business could use to reduce its environmental impact is:
Implementing a recycling program
Increasing production hours
Using more packaging materials
Expanding office space
One possible barrier to effective communication within a business is:
Cultural differences
Advanced technology
Open office layout
Flexible working hours
Explain one possible non-financial aim an entrepreneur may have when starting a small business.
To achieve personal satisfaction
To maximize profits
To increase market share
To reduce costs
One reason why a business may decide to reduce the size of its workforce is:
To increase production capacity
To reduce operational costs
To expand into new markets
To hire more employees
One reason why a business may increase its product range is to:
increase market share
reduce production costs
decrease brand visibility
limit customer choices
One reason why a business may use sponsorship to promote a product is:
To increase brand visibility
To reduce production costs
To improve employee satisfaction
To enhance product quality
Q72. Explain one reason why a business might use performance reviews with its employees.
To provide feedback and improve employee performance
To increase the workload of employees
To reduce the number of employees
To avoid giving promotions
Q73. Explain one reason why having a post-sales service may be important to a business.
It helps in building customer loyalty.
It increases the cost of operations.
It reduces the need for marketing.
It decreases product quality.
Q74. One reason why it is important to include financial information in a business plan is:
To attract potential investors
To comply with legal requirements
To increase employee satisfaction
To enhance product quality
Q75. Explain one reason why new business ideas come about.
To solve existing problems
To increase competition
To reduce costs
To follow trends
Q76. Explain one risk for an entrepreneur when starting a new business.
Financial risk due to personal savings or debt with no guarantee of success.
Risk of losing market share to competitors.
Risk of not having a unique selling proposition.
Risk of not having a strong online presence.
Q77. One way a business can differentiate its product is by:
lowering the price
improving product quality
increasing advertising
expanding distribution channels
One way a business can improve cash flow is by:
increasing expenses
delaying customer payments
offering discounts for early payments
hiring more staff
One way a business can increase its market share is by:
reducing prices to attract more customers
increasing employee salaries
decreasing product quality
limiting advertising efforts
One way a business could respond to a fall in sales is to:
increase prices
reduce marketing efforts
improve product quality
decrease customer service
One way in which a business could use technology to improve its customer service is by:
Implementing a chatbot for 24/7 customer support
Reducing the number of customer service representatives
Increasing the price of products
Limiting customer interaction to email only
One way in which a business may respond to an increase in competition is by:
lowering prices
increasing prices
reducing product quality
ignoring the competition
One way in which a business might use market segmentation is:
to increase production costs
to target specific customer groups
to expand globally
to reduce employee turnover
Q84. Explain one way in which social media can be used by a business.
Social media can be used for customer engagement.
Social media can be used for accounting purposes.
Social media can be used for legal compliance.
Social media can be used for office maintenance.
Q85. A business may decide to change its pricing strategy because:
it wants to increase market share.
it is facing increased competition.
it needs to improve profit margins.
all of the above.
