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WorksheetsBusiness Y11 mainly Paper 2
Total questions: 109
Worksheet time: 1hrs 5mins
What is the primary focus of public relations in a business context?
To ensure all employees are satisfied
To promote a business using media and other indirect methods to foster a positive image
To directly increase sales through advertising
To manage the financial accounts of the business
What does the term 'Quality assurance' refer to?
The process of hiring new employees
The marketing strategies to promote products
Setting up processes in production to ensure that quality is achieved
Developing new business locations
Which of the following is an extension strategy used by Coca Cola to extend the product life cycle of Coca Cola (select all that apply)
Range of can sizes
Attracting a new demographic
Change brand image
New flavours
What are the reasons why profits may fall during the decline stage of the product life cycle?
sales are increasing
sales volume is decreasing
prices may have to be cut due to a saturated market
the business will be spending more on marketing
A Ferrari is likely to have a high price tag because the design mix is focused on which of the following (pick 2)?
function
aesthetics
Flow Production
A fall in the gross profit margin might suggest ____
that suppliers are charging higher prices
that suppliers are charging lower prices
that the business is charging customers higher prices
that operating (other) expenses have increased
What does the net profit margin tell us?
How many staff are employed
What type of ownership the business has
How efficiently a business is run
The cash inflows and outflows
Why might the gross profit margin go down?
The enterprise has improved their profitability
Enterprise charging lower prices
Enterprise charges the same prices
Enterprise charging higher prices
What does the net profit margin tell us?
How effectively a business turns operating expenses into profits
How effectively a business turns cost of sales into profits
How effectively a business turns costs into profits
How effectively a business turns sales into profits
Which type of production would be used at Warburtons or Hovis?
Which of the following best describes the term 'diversification'?
To join with a business in the same industry as you
To join with a business that can supply you with raw materials
To join with a business that sells something similar to you
To join with a business in a completely unrelated industry
Which of the following is an example of a horizontal merger/takeover?
A chocolate producer buys another chocolate producer
A chocolate producer buys a cocoa farm
A chocolate producer buys a chain of coffee shops
A chocolate producer buys a car producer
Some mergers / takeovers in the UK are blocked by the government (CMA). This is because mergers / takeovers can lead to a lack of choice for consumers. A lack of competition between businesses in a market could lead to...
Lower prices and better customer service
Higher prices and worse customer service
Kraft took over Cadbury in 2010. Which type of business growth is this an example of?
Internal (organic) growth
External growth
The first Tesco store was built in London. Tesco have since opened stores all accross the UK and in other countries. Which type of business growth is this?
Internal (organic) growth
External growth
Dyson started by selling vacuum cleaners...they now sell hand dryers, washing machines, and fans. Which type of business growth is this an example of?
Internal (organic) growth
External growth
Which of the following is NOT a method of internal (organic) growth?
Increasing output
Gaining new customers
Developing new products
Merging with / taking over another business
Which of the following is most likely to be a benefit of business growth?
Increased costs
Increased sales
Increased competition
Increased chance of failure
which one of the following is not an example of a barrier to international trade?
quota
exchange rate complications
tariff
globalisation
The amount of product sold is known as
profit
sales revenue
sales volume
variable costs
Businesses can increase sales volume by
raising the price
cutting the price
Which of the following is an example of a low margin, high volume retailer?
What are the features of a mass market?
High levels of competition
High prices
Low prices
High levels of consumption
Businesses in a niche market are likely to have
Low profit margins
High profit margins
Which of the following is most likely to be a drawback to businesses of using product trials?
They are often very expensive
The business has less/no control over the message communicated
The image of the brand might be damaged in the long term
The product is more likely to be a success when launched
A high street clothes store targets customers with digital promotions. This is an example of:
Viral advertising
Advertising online to specific market segments
An e-newsletter
Sponsorship
Which two of the following are most likely to be drawbacks of television advertising as a promotion strategy?
It can be expensive for the business
No guarantee the target audience will receive the message
A large quantity of people will receive the message
Appropriate time slots and programmes can be chosen
Messages can be communicated with sight, sound and motion
Which of the following is NOT a method of internal (organic) growth?
Increasing output
Gaining new customers
Developing new products
Merging with / taking over another business
Which two of the following are examples of external influences on a business?
Skill level of employees
Company's Equipment
Employment Law
Sales Revenue
Exchange Rate
What is meant by "Organic growth" in a business?
Expansion through mergers and acquisitions.
Growth through increasing headcount and physical locations.
Growth which occurs as a business sells more of its own products.
Growth achieved through outsourcing.
Which of the following is an example of a business behaving ethically?
Paying employees above the living wage
Buying non fair trade products rather than the fair trade alternative
Paying suppliers the lowest possible price for raw materials
Setting high retail prices as the only producer of an essential product
Which of the following methods would an environmentally responsible business use to manage waste?
Send all waste to landfill
Reduce the amount of waste created and recycle where possible
Incinerate waste
Use non-recyclable packaging
Which of the following best describes the term pressure group?
An individual that has shares in a business
Anyone who has an interest or is affected by the activities of a business
An individual or organisation that provides a business with materials
An organisation with shared aims that seek to influence opinions, decisions and policy
Which of the following best describes the term trade-off?
Having more of one thing may mean having less of another
Having more of one thing may mean having even more of another
Having the same amounts of everything
Having less of everything
Which of the following is an example of a cosmetics business prioritising profit over the environment?
Using more expensive ingredients that create less pollution
Using less expensive ingredients that create less pollution
Using more expensive ingredients that create more pollution
Using less expensive ingredients that create more pollution
Which of the following statements best describes the term sustainability?
When a business behaves in a way that is viewed as morally right
The contamination of the environment
When a business considers its behaviour as ethical
The use of resources which does not lead to environmental damage
Which of the following behaviours by a car manufacturer could be classed as unethical?
Paying the lowest possible price for raw materials to increase profits
Paying a higher price for fair trade supplies at the expense of profit
Paying suppliers late to improve cash flow
Paying employees the lowest wage possible to increase profits
Which two of the following are benefits to a business of behaving in an environmentally responsible way?
The business receives good publicity
Consumers may be prepared to pay higher prices for products
Profits may be reduced
Higher prices may make the business uncompetitive
Which two of the following are possible drawbacks to a business of behaving ethically?
Positive advertising
Higher costs
Motivated workforce
Easier to recruit new employees
May have to accept lower profits
If a business currently has sales of £250,000 in a market worth £2 million, what is it's market share?
10%
12.5%
17.5%
25%
David works in a biscuit factory and is responsible for procurement.
Which task is not likely to be part of David’s job role?
Buying sugar
Ordering biscuit packaging materials
Purchasing stationery
Selling biscuits
A manufacturer has decided to run a marketing campaign on national television in a month’s time.
As a result of this decision, which one of the following actions might also be necessary?
Finance should stop monitoring cash flow
Human resources should employ some temporary production workers
Operations management should reduce output
Purchasing should buy smaller quantities of raw materials
Choosing how products will be delivered to customers is an example of a:
flow production issue
liquidity problem
logistical decision
purchasing concern
A company operates in several countries.
This is an example of:
a multinational organisation
customer engagement
international branding
operations management
Which one of the following businesses is most likely to use telesales?
A burger van
A petrol station
A school
An insurance company
Consumer law requires shops to sell goods that are:
cheap
high quality
safe
unique
A perfume shop has a gross profit margin of 50%.
This means:
for every £10 of sales, it makes £5 profit after all costs have been paid
the perfume shop’s variable costs are exactly half of its fixed costs
the shop charges customers double what it pays when buying the perfume
to make £10 of profit, it needs to sell £50 of perfume
QT Homeware Ltd manufactures small kitchen appliances. The company has recently received a number of emails complaining that its kettles leak.
Which of the following actions would help QT Homeware Ltd deal with this problem?
Include a cloth to wipe up any leaks in the box of all new kettles
Launch a promotional campaign in a housekeeping magazine
Meet with production workers to discuss how to reduce costs
Physically test every hundredth kettle to ensure it is watertight
Which one of the following is the most likely reason for a greeting card manufacturer to locate its factory on an out-of-town industrial estate?
Council incentives offering reduced business rates
Greeting cards are destroyed if they get wet during transportation
Lots of people who work on the industrial estate will buy cards
The need to be close to the market because customers are unwilling to travel
Which of the following would be a variable cost for a restaurant?
Fruit and vegetables
Advertising fees
Buildings insurance
Chef’s salary
Which of the following is a benefit to a public limited company of using a share issue to raise finance
Dividends will need to be paid
New skills will be brought into the company
No interest will be paid
Repayments will be spread over a long period of time
The marketing function of a well-known action toy manufacturer is about to launch a major advertising campaign. The advertising campaign will affect the operations function of the business because:
job production will need to be used to speed up production
market research into which toy figures are most popular will be required
more sets of action toy figures will need to be produced
vacancies for action toy designers will need to be advertised
Which functional area is responsible for providing information about a firm’s revenue?
Finance
Logistics
Marketing
Production
The concept of quality requires a business to:
charge low prices for its services
produce the best goods on the market
provide services to required standards
source its raw materials from ethical suppliers
A company has made a net profit of £16 000.
Which of the following statements must be true?
The company has at least £16 000 in its bank account
The company will have no difficulty paying its bills
The company’s cash outflows were £16 000 more than its cash inflows
The company’s revenue exceeded its costs
The length of a firm’s supply chain:
affects how quickly it can respond to changes in demand
depends on the production method used by the business
has no impact on the procurement function
is shown on an organisation chart
A business has decided to update all of its computers and printers.
This decision will:
increase selling prices
reduce fixed costs
require financial resources
temporarily increase cash inflows
A store that sells mobile phones wishes to improve the level of customer service it offers to those who come into the store.
Which one of the following will not improve the level of customer service the store offers?
Demonstrating to all staff how to be attentive, polite and helpful
Giving the sales assistants lists detailing the features of each phone
Offering a free phone case with every mobile phone purchased
Training the store manager to deal with technical queries
At break-even a firm’s total revenue equals its:
fixed costs
gross profit
net profit
total costs
Breakfast biscuits are becoming increasingly popular. HealthBisc Ltd predicts that in future years it will have difficulty producing enough breakfast biscuits to keep up with demand.
Which one of the following actions could help HealthBisc Ltd deal with this problem?
Automate the production process
Improve its after-sales service
Reduce its prices
Switch to job production
What does the term 'Quality assurance' refer to?
The process of hiring new employees
The marketing strategies to promote products
Setting up processes in production to ensure that quality is achieved
Developing new business locations
What is the primary focus of public relations in a business context?
To ensure all employees are satisfied
To promote a business using media and other indirect methods to foster a positive image
To directly increase sales through advertising
To manage the financial accounts of the business
A customer comes into a travel agency to book a holiday to Australia. An assistant serves the customer. Which of the following is this an example of?
Face to face selling
International branding
Sales promotion
Telesales
Choosing which supplier to use is a:
marketing decision
pricing decision
procurement decision
sales decision
A supermarket decides to extend its opening hours.
The supermarket is likely to need:
a longer supply chain
fewer staff
lower quality products
reliable suppliers
A manufacturer makes chocolate bars. All of the chocolate bars are passed through a machine to check for production mistakes before being boxed.
This is an example of:
product development
product recall
quality assurance
quality control
Which of the following tasks is not a finance function?
Advertising price reductions
Applying for a bank loan
Calculating break-even
Measuring profit and loss
A manufacturer is experiencing a range of problems.
Which of the following problems would be classed as a ‘liquidity problem’?
A breakdown on the production line
Being short of funds to pay suppliers
Experiencing high levels of wastage during the production process
Having insufficient financial information to make business decisions
A company’s total costs are too high. The finance manager advises that this is being caused by increasing wage costs as the company expands. Which one of the following actions would provide a long term solution to this problem?
Applying for an overdraft
Automating the production process
Employing a finance assistant
Switching to job production
A company’s total costs in 2019 were £9 million. The company’s labour costs were 40% of the company’s total costs. The company’s labour costs in 2019 were:
£3.6 million
£5.4 million
£12.6 million
£14.4 million
Variable costs:
are not affected by changes in output
fall as output rises
increase as output rises
remain constant over time
A customer has ordered an electric shower from a plumbing firm. By law, the plumbing firm must:
charge a lower price than other plumbers
fit the shower without turning the water off
supply a shower that meets current safety standards
use an environmentally friendly supplier
Following recent financial success, a business has decided to double the size of its workforce. This decision will significantly increase the workload of the:
finance function because new recruits need to be trained
human resources function because applicants need to be interviewed
marketing function because person specifications need to be produced
purchasing function because contracts of employment need to be issued
The concept of ‘quality’ refers to making products:
by hand
of a satisfactory standard
that are better than the leading brand
to the highest possible specification
A business finds it relatively easy to gain customers but has great difficulty retaining these customers.
Which aspect of the business is most likely to need improving?
After-sales service
E-commerce
Marketing
Procurement
Which of these is NOT a monetary method of motivation?
Comission
Pay Rise
Recognition
Bonuses
Motivating staff by giving them additional responsibility is known as ...
Delegation
Delayering
Job Enrichment
Job Rotation
Which of the following organisations are financed through the selling of shares to the public?
Partnership
Private Limited Company
Public Limited Company
Soletrader
Which of the following businesses operates in the Private Sector?
Social Enterprise
Public Limited Company
Charity
UK Government
Which one of the following is an internal source of finance? Select one answer.
Share capital
Loan capital
Sales revenue
Selling assets
Which two of the following documents would be used by a business as part of its recruitment process? Select two answers.
Person plan
Job specification
Person specification
Job plan
Which one of the following documents would not be produced by a business as part of the recruitment process? Select one answer.
CV
Job advert
Job description
Person specification
Which one of the following is not a form of training? Select one answer.
Formal
Informal
Ongoing
Retention
Which one of the following is a barrier to effective communication? Select one answer.
New information
New machinery
Jargon
Job description
Which one of the following is a barrier to international trade? Select one answer.
Aesthetics
Ethics
Tariffs
Trade-offs
Which one of the following is a non-financial method of motivating an employee? Select one answer.
Bonus
Commission
Job rotation
Remuneration
Which one of the following is a stage in the sales process? Select one answer.
Advertising
Customer engagement
Product quality
Use of different payment systems
Which one of the following is a type of organisational structure? Select one answer.
Freelance
Hierarchical
Permanent
Temporary
Which one of the following is an element of the design mix? Select one answer.
Cost
Price
Product
Quality
Which one of the following is an example of an internal source of finance? Select one answer.
Loan capital
Selling assets
Share capital
Stock market flotation
Which two of the following are not elements of the design mix? Select two answers.
Cost
Function
Materials
Aesthetics
Quality
