Font size
WorksheetsBusiness Studies More Paper 1 100 Q
Total questions: 100
Worksheet time: 51mins
What is revenue?
Total costs
Total profit
Money from sales
Business savings
What is profit?
Revenue minus costs
Costs minus revenue
Total expenses
Cash flow
Which is a fixed cost?
Raw materials
Wages per unit
Rent
Packaging
Which is a variable cost?
Insurance
Rent
Raw materials
Loan repayments
What is cash flow?
Profit level
Money coming in and out
Sales volume
Bank balance only
Which is an internal source of finance?
Bank loan
Overdraft
Retained profit
Venture capital
Which source must be repaid with interest?
Grant
Share capital
Loan
Retained profit
What is a grant?
Loan from a bank
Money that must be repaid
Government funding not repaid
Shareholder investment
Which finance is most suitable for short-term problems?
Mortgage
Overdraft
Share issue
Venture capital
Which source involves giving up some control?
Loan
Overdraft
Venture capital
Grant
What is market research?
Advertising products
Collecting customer information
Setting prices
Designing packaging
Which is primary research?
Internet reports
Government statistics
Customer surveys
Newspapers
What does the product life cycle show?
Cost changes
Sales over time
Profit per unit
Customer satisfaction
Which stage has the highest sales growth?
Decline
Introduction
Growth
Extension
Which is part of the marketing mix?
People
Place
Profit
Productivity
Which pricing strategy involves high initial prices?
Penetration
Competitive
Skimming
Loss leader
Penetration pricing aims to:
Maximise short-term profit
Enter a market quickly
Reduce quality
Increase costs
Which promotion method uses the internet?
Billboards
Personal selling
Social media
Leaflets
What is advertising?
Direct contact with customers
Paid promotion of products
Price reduction
Market research
Which promotion builds brand loyalty?
Sales promotion
Advertising
Price cuts
Discounts only
What is productivity?
Output per worker
Total profit
Sales revenue
Costs per unit
Which method uses machines instead of labour?
Labour-intensive
Capital-intensive
Batch production
Job production
Which production method is used for one-off products?
Mass
Flow
Job
Batch
What is quality control?
Inspecting at the end
Staff training
Checking throughout production
Marketing strategy
What is quality assurance?
Final inspection
Employee motivation
Preventing mistakes
Advertising quality
What is recruitment?
Training staff
Hiring employees
Paying wages
Dismissing workers
Which document advertises a job?
CV
Job description
Person specification
Contract
Which pay method rewards performance?
Salary
Hourly wage
Piece rate
Basic pay
What is motivation?
Staff discipline
Willingness to work
Job application
Recruitment process
Which theory focuses on basic human needs?
Taylor
Maslow
Herzberg
Mayo
Which factor affects interest rates?
Social
Economic
Legal
Environmental
What is a legal constraint?
Customer tastes
Inflation
Health and safety laws
Exchange rates
Which factor includes ethical sourcing?
Economic
Environmental
Social
Technological
Which external factor affects online selling?
Political
Social
Technological
Legal
What is business ethics?
Legal requirements
Moral principles in business
Marketing strategies
Financial rules
Which is an ethical business practice?
Child labour
False advertising
Fair trade sourcing
Tax evasion
What is sustainability?
Short-term profit
Using resources responsibly
Increasing output
Reducing wages
Why might ethical behaviour increase sales?
Higher costs
Better reputation
Fewer products
Lower quality
Which group pressures firms to be ethical?
Competitors
Consumers
Managers
Banks
What is business growth?
Reducing costs
Increasing size
Closing branches
Lower sales
Which is organic growth?
Merger
Takeover
Opening new stores
Joint venture
What is a merger?
One firm buys another
Two firms join equally
A business
What is globalisation?
Local trading
International trade growth
National ownership
Reduced competition
Which is a benefit of globalisation?
More competition
Higher costs
Fewer markets
Trade barriers
Which is a risk of rapid growth?
Economies of scale
Loss of control
Increased efficiency
Higher reputation
What is an economy of scale?
Rising costs per unit
Falling average costs
Higher prices
Reduced output
Which economy of scale involves bulk buying?
Technical
Marketing
Purchasing
Financial
What is diseconomy of scale?
Lower costs
Increased efficiency
Rising average costs
Expansion benefits
Which factor may cause diseconomies of scale?
Better communication
Poor management
Automation
Bulk discounts
What is a franchise?
State-owned business
Buying the right to use a brand
Partnership agreement
Merger
Which is a benefit to the franchisee?
Full independence
Established brand
No fees
No rules
Which sector extracts raw materials?
Primary
Secondary
Tertiary
Quaternary
Which sector provides services?
Primary
Secondary
Tertiary
Manufacturing
What is outsourcing?
Employing more staff
Producing goods internally
Using external suppliers
Increasing wages
Why do businesses outsource?
Increase costs
Focus on core activities
Reduce quality
Increase control
What is meant by enterprise?
Taking financial risks to start a business
Managing employees
Selling products online
Making a profit only
Which characteristic is most associated with an entrepreneur?
Risk-averse
Innovative
Passive
Dependent
What is intrapreneurship?
Starting a charity
Running a franchise
Being entrepreneurial within an existing business
Owning multiple businesses
Which is an example of a business risk?
Increased motivation
Loss of personal savings
Staff training
Market research
Which skill is most important for an entrepreneur?
Creativity
Punctuality
Obedience
Routine
Which type of business is owned by one person?
Partnership
Sole trader
Private limited company
Franchise
One disadvantage of being a sole trader is:
Limited liability
Shared decision-making
Unlimited liability
Separate legal identity
How many owners does a partnership have?
One
Two or more
Up to five only
Unlimited shareholders
Which business has shareholders?
Sole trader
Partnership
Private limited company
Cooperative
What does limited liability mean?
Owners share profits
Owners are fully responsible for debts
Owners only lose what they invest
The business cannot fail
What is a common business aim?
Increase unemployment
Maximise profit
Reduce sales
Avoid competition
An objective should be SMART. What does the 'M' stand for?
Manageable
Measurable
Motivational
Monetary
Which objective focuses on customers?
Growth
Profit
Market share
Survival
Which aim is most likely for a new business?
Global expansion
Survival
Takeover competitors
Profit maximisation
Which objective is long-term?
Daily sales target
Monthly costs
Expansion into new markets
Staff rotas
Which group is an internal stakeholder?
Customers
Government
Employees
Suppliers
What do shareholders mainly want?
Job security
Low prices
Dividends
Better working conditions
Which stakeholder is concerned with tax payments?
Employees
Government
Customers
Competitors
Why might stakeholders have conflicting interests?
All want profit
They have different priorities
They work together
They share ownership
Which stakeholder wants safe products?
Suppliers
Customers
Owners
Banks
Which stakeholder is most interested in job security?
Shareholders
Suppliers
Employees
Customers
What is a key feature of a private limited company?
Shares traded on the stock exchange
Unlimited liability
Owned by the government
Shares owned privately
Which is a reason why a business might set ethical objectives?
To improve reputation
To reduce staff motivation
To avoid paying taxes
To increase costs
Which of the following is a benefit of being an entrepreneur?
Guaranteed income
Fixed promotion path
No responsibility
Flexible working hours
Who is responsible for the debts of a partnership?
All partners
Only the managing partner
Only shareholders
Only employees
What is the main purpose of setting business objectives?
To increase confusion
To reduce profits
To provide direction and focus
To avoid competition
Which of the following is a short-term business objective?
Launch a new product next month
Increase annual profit
Open a new branch in five years
Expand internationally
Who benefits most directly from increased business profits?
Customers
Shareholders
Government
Suppliers
Which of the following best describes a stakeholder?
Anyone who buys products
Anyone affected by business activities
Only business owners
Only employees
What is the break-even point?
The point at which a business makes a loss
The point at which revenue and total costs are the same, meaning the business makes neither a profit nor a loss
The point at which a business makes a profit
How is a loss shown on a break-even graph?
A shaded area between the revenue and total costs lines below the break-even point
A shaded area between the revenue and total costs lines above the break-even point
It is represented on the Y axis
What is the difference between an aim and an objective?
An aim is the overall goal and objectives are the steps to achieve it
An objective is the overall goal and aims are the steps to achieve it
A aim is where the business wants to be in 10 years and the objectives are where the business wants to be in five years
What are the two main types of objective?
Short-term and long-term objectives
Big objectives and small objectives
Financial and non-financial objectives
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
Which of these has unlimited liability?
Sole Trader
Private Limited Company
Public Limited Company
Multi National Company
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 rewards of business
Risk of financial loss
Lack of security
Personal Wealth
Independence
Personal Debt
Which of these is part of the marketing mix?
Product, Price, Place, Promotion
Profit, People, Price, Promotion
Product, People, Place, Profit
Price, Promotion, Profit, Planning
Which source of finance must be repaid with interest?
Bank loan
Retained profit
Owner’s savings
Selling assets
Which of these is a fixed cost?
Raw materials
Rent
Packaging
Wages (hourly)
Which of the following is a benefit of a business plan?
It guarantees business success
It helps secure finance from investors
It eliminates all risks
It ensures high profits
Which of the following is an example of a financial objective for a small business?
To improve customer satisfaction
To increase market share
To achieve a 10% profit margin
To reduce employee turnover
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
