Ultimate Trivia Facts And Questions On Business Studies!

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Ultimate Trivia Facts And Questions On Business Studies! - Quiz

Ultimate Trivia Facts and Questions on Business Studies! No one can come to the business and know all the secrets to what it takes to do a successful business. A lot of time and energy goes into unlocking the wisdom of building an empire. Below is an Edexcel unit 3 business studies multiple choice quiz that is designed to test how much you know about the business.

Questions and Answers

1.

Business finance can come from either internal or external sources. (a) Which of the following is an internal source of finance?
- A.
  
  A loan from a bank.
- B.
  
  An overdraft.
- C.
  
  Selling assets.
- D.
  
  A stock market flotation.
Correct Answer
C. Selling assets.

Explanation
Selling assets is considered an internal source of finance because it involves using the company's own resources to generate funds. This means that the company is selling its own assets, such as equipment or property, to raise money. Internal sources of finance are typically more sustainable and less risky compared to external sources, as they do not involve borrowing or relying on external parties.

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2.

Amazon is a well-known online retailer. It has grown by differentiating itself from its rivals and being highly competitive. Amazon is an online retailer. (a) Which one of the following elements of the marketing mix does this represent?
- A.
  
  Price.
- B.
  
  Product.
- C.
  
  Promotion
- D.
  
  Place.
Correct Answer
D. Place.

Explanation
The given statement suggests that Amazon is an online retailer, which indicates the element of the marketing mix represented is "Place." This element refers to the distribution channels and locations where the product is made available to the customers. As an online retailer, Amazon's "place" is the virtual platform where customers can access and purchase their products.

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3
2
3.

Select one answer.
- A.
  
  Decline
- B.
  
  Maturity.
- C.
  
  Growth.
- D.
  
  Introduction.
Correct Answer
B. Maturity.

Explanation
The correct answer is Maturity. Maturity is the stage in the product life cycle where the product has reached its peak in terms of sales and market share. It is a stable phase where the product is well-established and has gained acceptance from the target market. During this stage, the competition is high, and the market becomes saturated. The focus shifts from acquiring new customers to retaining existing ones. The product may undergo minor improvements or modifications to sustain its position in the market.

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2
0
4.

A business breaks even at the level of output where:
- A.
  
  Total profits = total costs
- B.
  
  Fixed costs = total revenue
- C.
  
  Variable costs = fixed costs
- D.
  
  Total revenue = total costs.
Correct Answer
D. Total revenue = total costs.

Explanation
The correct answer is "total revenue = total costs." This means that a business reaches the break-even point when the total revenue generated from sales equals the total costs incurred to produce and sell the goods or services. At this point, there is no profit or loss, and the business covers all its expenses. It is an important milestone for a business as it indicates the minimum level of sales required to cover costs and start generating profits.

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2
0
5.

Which of the following is most likely to be a barrier to effective communication between workers?
- A.
  
  De-stocking.
- B.
  
  Poor customer service.
- C.
  
  Pressure groups.
- D.
  
  Use of jargon.
Correct Answer
D. Use of jargon.

Explanation
The use of jargon can be a barrier to effective communication between workers because it involves using specialized terminology or language that may not be understood by everyone. This can lead to confusion, misinterpretation, and misunderstandings, ultimately hindering the flow of information and ideas between individuals.

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1
2
6.

Apple produces home electronics, including strong brands like the iPod and iPhone, for the mass market. Product design is an important part of its success. (a) Product design is most likely to help a business:
- A.
  
  Generate quantitative research.
- B.
  
  Differentiate its products.
- C.
  
  Improve its organisational structure.
- D.
  
  Reduce productivity.
Correct Answer
B. Differentiate its products.

Explanation
Product design is most likely to help a business differentiate its products. This means that through unique and appealing design elements, a business can set its products apart from competitors in the market. This differentiation can attract customers, increase brand recognition, and ultimately lead to higher sales and success for the business.

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0
1
7.

Marks and Spencer sells clothes, furniture and food. It is recognised by customers as having very good levels of customer service. (a) Which of the following is the most likely result of good customer service at Marks and Spencer?
- A.
  
  Increased repeat purchases.
- B.
  
  Lower profits.
- C.
  
  Lower margin of safety.
- D.
  
  Increased cash outflows.
Correct Answer
A. Increased repeat purchases.

Explanation
Good customer service at Marks and Spencer is likely to result in increased repeat purchases. When customers have a positive experience with a company's customer service, they are more likely to become loyal and return to make future purchases. This can lead to increased sales and revenue for the company.

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8.

Which of the following is a cash inflow?
- A.
  
  Payments to suppliers.
- B.
  
  Purchasing assets.
- C.
  
  Longer credit terms for customers.
- D.
  
  Taking out a bank loan.
Correct Answer
D. Taking out a bank loan.

Explanation
Taking out a bank loan is considered a cash inflow because it involves borrowing money from a bank, which increases the cash available to the business. This loan is not a payment or purchase, but rather a source of funds that will contribute to the company's cash balance.

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9.

Which of the following is an environmental problem resulting from a business?
- A.
  
  Lower profits
- B.
  
  Higher costs
- C.
  
  Pollution
- D.
  
  Poor communication
Correct Answer
C. Pollution

Explanation
Pollution is an environmental problem resulting from a business. Businesses often contribute to pollution through their manufacturing processes, waste disposal, and emissions. This can have harmful effects on the environment, including air and water pollution, habitat destruction, and negative impacts on human health. Pollution is a significant concern that needs to be addressed by businesses to ensure sustainable and responsible practices. Lower profits, higher costs, and poor communication, on the other hand, are not directly related to environmental problems caused by businesses.

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2
0
10.

Which of the following best describes the term minimum wage?
- A.
  
  A fixed yearly payment paid monthly
- B.
  
  A payment made to employees for working extra hours
- C.
  
  The lowest amount legally a firm can pay its employees
- D.
  
  A payment for reaching an employees target
Correct Answer
C. The lowest amount legally a firm can pay its employees

Explanation
The term minimum wage refers to the lowest amount that a firm is legally required to pay its employees. This ensures that workers receive a fair and reasonable compensation for their work, preventing exploitation and ensuring a basic standard of living. It is a mandated wage floor set by the government to protect workers from being paid unreasonably low wages.

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1
0
11.
- A.
  
  Revenue by more than costs
- B.
  
  Fixed costs
- C.
  
  Variable cots by more than fixed costs
- D.
  
  Ticket prices
Correct Answer
A. Revenue by more than costs

Explanation
Increasing revenue while keeping costs in check or reducing costs while maintaining or growing revenue are common strategies for boosting profits. In this case, if EasyJet can make a profit of £2 million per year from each of the new planes it ordered, it implies that increasing revenue by more than the costs associated with those planes would lead to increased profits.

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0
3
12.
- A.
  
  Maturity
- B.
  
  Decline
- C.
  
  Growth
- D.
  
  Introduction
Correct Answer
D. Introduction

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Current Version
Sep 12, 2023

Quiz Edited by
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May 15, 2013

Quiz Created by
Leeaaronbaker

Ultimate Trivia Facts And Questions On Business Studies!

Business finance can come from either internal or external sources. (a) Which of the following is an internal source of finance?

Amazon is a well-known online retailer. It has grown by differentiating itself from its rivals and being highly competitive. Amazon is an online retailer. (a) Which one of the following elements of the marketing mix does this represent?

Select one answer.

A business breaks even at the level of output where:

Which of the following is most likely to be a barrier to effective communication between workers?

Apple produces home electronics, including strong brands like the iPod and iPhone, for the mass market. Product design is an important part of its success. (a) Product design is most likely to help a business:

Marks and Spencer sells clothes, furniture and food. It is recognised by customers as having very good levels of customer service. (a) Which of the following is the most likely result of good customer service at Marks and Spencer?

Which of the following is a cash inflow?

Which of the following is an environmental problem resulting from a business?

Which of the following best describes the term minimum wage?