Edexcel GCSE: Business Studies Quiz

19 Questions | Total Attempts: 293

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Edexcel GCSE: Business Studies Quiz

19 questions = 36 marks


Questions and Answers
  • 1. 
    Which one of the following is the definition of innovation? Select one answer:
    • A. 

      Bringing a new idea to market

    • B. 

      Taking a calculated risk

    • C. 

      The process of thinking ahead

    • D. 

      Developing competitive advantage

  • 2. 
    Which two of the following are methods of protecting business ideas? Select two answers:
    • A. 

      Franchising

    • B. 

      Limited liability

    • C. 

      Copyright

    • D. 

      Business plan

    • E. 

      Patent

  • 3. 
    Which three of the following are examples of market segments for a small sports retailer? Select three answers:
    • A. 

      Rival sports retailers in the same area

    • B. 

      Young members of local sports teams

    • C. 

      A questionnaire conducted with customers

    • D. 

      Individuals with interests in specialist sports

    • E. 

      Manager of a local netball team.

    • F. 

      An advertisement in a local newspaper

  • 4. 
    Which three of the following are the most likely causes of the fall in the price of cocoa? Select three answers:
    • A. 

      Less supply of cocoa by African producers

    • B. 

      Higher demand for cocoa by European chocolate manufacturers

    • C. 

      Increased awareness of the possible dangers of cocoa consumption

    • D. 

      Good harvests of cocoa in producer countries

    • E. 

      Rising consumption of goods for which cocoa is an ingredient

    • F. 

      Greater demand for cocoa substitutes

  • 5. 
    Hayley Franks wants to own and run her own shoe shop. She can set up as a sole trader or as a franchise with a major UK shoe brand. Research shows that the franchise has an 80% success rate. The sole trader has a 50:50 chance of survival. Using the principle of calculated risk, which decision should Hayley make? Select one answer:
    • A. 

      Don’t choose either option as both have a chance of failing

    • B. 

      Choose the franchise as it is the least risky option

    • C. 

      Choose to start as a sole trader as she will keep all profits made

    • D. 

      Choose to start as a sole trader as there is a 50% chance of success

  • 6. 
    Hayley decides to produce a business plan to help minimise the risk when starting up her business. Which two of the following would not be necessary to include in her business plan? Select two answers:
    • A. 

      Name and addresses of all employees

    • B. 

      A summary of market research she has carried out

    • C. 

      A cash flow forecast

    • D. 

      Photograph of the business owner

    • E. 

      An overview of the nature of the business

  • 7. 
    According to the information in the cash flow forecast, which two conclusions can be drawn from the data? Select two answers:
    • A. 

      Total net cash flow for May to June will be £9 000

    • B. 

      A bank would be likely to grant this business an overdraft

    • C. 

      Hayley’s business will make a profit of £13 600 in June

    • D. 

      Other costs’ are forecast to decrease between April to June

    • E. 

      The cash flow for July to December will be positive

  • 8. 
    Hayley imports all her stock from the USA. What would be two effects on the business if the pound weakened against the dollar by 20%, assuming all other costs and receipts remain the same? Select two answers:
    • A. 

      Fixed costs would increase by 20%

    • B. 

      Total costs would increase

    • C. 

      Hayley could charge a lower price for her shoes

    • D. 

      Raw materials costs would fall by 20%

    • E. 

      The net cash flow position of the business would worsen

  • 9. 
    Job Advertisement Trainee Accountant Hammills Accountants are looking to appoint a young trainee accountant. Candidates should have 5 GCSEs at A*-C, including Maths and English, plus at least two A-Levels at grade C or higher. Experience is desirable but not essential as full training is given. The successful candidate must be aged between 18 and 25 and will be expected to work as part of a team. Applicants should not have any record of illness in the previous 12 months. Hammills Accountants received nine applications for the post. Two candidates – Amandeep and David – were shortlisted for interview. David arrived at the interview in his wheelchair. Following the interview the owner of the business decided to appoint Amandeep, even though her qualifications were not as good as David’s. The owner felt that Amandeep did better in the interview. He was also worried that David’s wheelchair would put him at a disadvantage. Which two of the following broke employment legislation in this recruitment process? Select two answers:
    • A. 

      Requiring candidates to have specific qualifications

    • B. 

      Not appointing the candidate with the best qualifications

    • C. 

      Rejecting David due to his disability

    • D. 

      Advertising for a trainee accountant aged between 18 and 25

    • E. 

      Stating that experience is desirable

  • 10. 
    When recruiting staff employers need to ensure they find someone with the right skills and attitudes. Which two of the following are examples of the employee attitudes that might be desirable for Hammills? Select two answers:
    • A. 

      A willingness to undertake training

    • B. 

      Having experience of similar work

    • C. 

      Being able to operate different office equipment

    • D. 

      Having a range of academic qualifications

    • E. 

      Being prepared to work as part of a team

  • 11. 
    Some businesses produce goods whilst others produce services. Which two of the following are examples of goods? Select two answers:
    • A. 

      A bus journey

    • B. 

      Freshly-prepared sandwiches

    • C. 

      A newspaper

    • D. 

      Haircut

    • E. 

      Computer repairs

  • 12. 
    Andrew Plant lost his job as a fitness instructor at a local gym. He always wanted to run his own business. He was keen to use his interest in cooking. Andrew had a talent for producing high quality desserts. He decided to set up a business, with three friends, as a private limited company supplying desserts to local restaurants. Identify two advantages to Andrew of setting up as a private limited company rather than starting as a sole trader. Select two answers:
    • A. 

      The potential to raise more finance

    • B. 

      All profits will go to Andrew

    • C. 

      Andrew has total control of the business

    • D. 

      Less risk due to limited liability

    • E. 

      Fewer legal requirements

  • 13. 
    Which one of the following sources of finance would be most appropriate in starting a private limited company? Select one answer:
    • A. 

      Retained profit

    • B. 

      Share capital

    • C. 

      Overdraft

    • D. 

      Sale of business assets

  • 14. 
    A business has the following cost and price information: Variable Costs: 􀁴 Raw materials – £2.70 per unit 􀁴 Packaging – £1.20 per unit 􀁴 Delivery – £0.50 per unit Fixed Costs: 􀁴 £450 per month The selling price for each unit of output is £10 The business produces 500 units in one month. What is the total monthly value of variable costs? Select one answer:
    • A. 

      £4.40

    • B. 

      £454.40

    • C. 

      £1 350

    • D. 

      £2 200

  • 15. 
    A business has the following cost and price information: Variable Costs: 􀁴 Raw materials – £2.70 per unit 􀁴 Packaging – £1.20 per unit 􀁴 Delivery – £0.50 per unit Fixed Costs: 􀁴 £450 per month The selling price for each unit of output is £10 If the business sells 500 units but its fixed costs rise by £200, what is its monthly profit? Select one answer:
    • A. 

      £2 150

    • B. 

      £2 350

    • C. 

      £2 550

    • D. 

      £2 600

  • 16. 
    The business is looking at ways of raising awareness of a new product. Which element of the marketing mix would it use? Select one answer:
    • A. 

      Price

    • B. 

      Product

    • C. 

      Promotion

    • D. 

      Place

  • 17. 
    Hardacres is a small family-run hardware business. It has one shop which provides a range of household equipment. The business has taken out a bank loan of £25 000 in order to carry out improvements to the shop. The bank charges Hardacres an interest rate of 8.5% on the loan. Hardacre’s has a large number of customers who regularly return to shop at the store. This is an example of: Select one answer:
    • A. 

      Market mapping

    • B. 

      Repeat purchase

    • C. 

      Customer service

    • D. 

      Business offering

  • 18. 
    The bank increases the rate of interest on Hardacres loan to 10.5%. Identify two effects of this change on the business. Select two answers:
    • A. 

      An increase in cash outflows

    • B. 

      Higher National Insurance payments

    • C. 

      Lower variable costs

    • D. 

      Higher fixed costs

    • E. 

      Lower Value Added Tax (VAT) payments

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