Edexcel GCSE: Business Studies Quiz- II

19 Questions | By Leeaaronbaker | Last updated: Mar 22, 2022 | Total Attempts: 3633

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Edexcel GCSE: Business Studies Quiz- II - Quiz

19 questions = 36 marks

Questions and Answers

1.

Which one of the following is an example of long-term finance for a sole trader? Select one answer.
- A.
  
  Share capital
- B.
  
  Overdraft
- C.
  
  Bank loan
- D.
  
  Trade credit
2.

Which two of the following are possible objectives for someone setting up business as a sole trader? Select two answers.
- A.
  
  To allow other people to make all decisions
- B.
  
  To benefit from limited liability
- C.
  
  To gain financial support from shareholders
- D.
  
  To take all the profits
- E.
  
  To have full control of the decisions
3.

KooKoo is a successful cafe and employs five people. The owner of KooKoo wants to expand the business. He believes that changing the elements of the marketing mix will help achieve this expansion. Which three of the following are examples of changes to the marketing mix that the owner of KooKoo might make? Select three answers.
- A.
  
  Introducing new items for sale
- B.
  
  Employing one additional worker
- C.
  
  Conducting primary market research in the area
- D.
  
  Offering a ‘buy one get one free’ offer on drinks
- E.
  
  Charging lower prices than the main local competitor
- F.
  
  Producing a yearly cash flow forecast
4.

Gail uses the internet to gather other information. This approach is an example of which type of market research? Select one answer.
- A.
  
  Focus group
- B.
  
  Primary research
- C.
  
  Secondary research
- D.
  
  Segmentation
5.

Identify two examples of market knowledge that Gail might gain through direct customer contact. Select two answers.
- A.
  
  How much profit is made by her competitors
- B.
  
  Customer spending habits
- C.
  
  What rate of interest will be charged by banks
- D.
  
  Latest fashions trends that customers like
- E.
  
  The location of other retailers
6.

Gail prefers to use lateral thinking techniques as a way of developing new business ideas. Which two of the following are examples of lateral thinking techniques? Select two answers.
- A.
  
  Mind mapping
- B.
  
  Brainstorming business ideas with a group
- C.
  
  Producing a business plan
- D.
  
  Providing a wide range of products
- E.
  
  Producing a cash flow forecast
7.

For the period above Michael’s monthly order from America was exactly the same. Identify two effects on Michael’s business as a result of the changes in the exchange rate. Select two answers.
- A.
  
  Higher fixed costs
- B.
  
  Deteriorating net cash flow position
- C.
  
  Ability to charge lower prices
- D.
  
  Lower variable costs
- E.
  
  Lower profit on each item sold
8.

In July 2012 Stateside imported 300 baseball caps from America. Each cap cost Michael $5.00. The July exchange rate was $1.60 to £1. What was the cost, in pounds (£), to Stateside of this order? Select one answer
- A.
  
  £306.60
- B.
  
  £937.50
- C.
  
  £1 100.00
- D.
  
  £1 500.00
9.

Michael wants to add more value to the products he sells. Which three of the following might be sources of added value for a business such as Stateside? Select three answers.
- A.
  
  Total revenue less total costs of the business
- B.
  
  Only UK retailer selling official US baseball team kit
- C.
  
  Ensuring high quality products
- D.
  
  Using more short-term sources of finance
- E.
  
  Creating a well-known brand name
- F.
  
  Operating as a private limited company
10.

Which one of the following is the best definition of a stakeholder? Select one answer.
- A.
  
  The shareholders of a limited company who receive dividend payments
- B.
  
  Any individual or group with an interest in the success of a business
- C.
  
  Anyone who works within a business
- D.
  
  A person or group that is able to influence the decisions of a business
11.

For each of the scenarios below, identify the two stakeholder groups that are most likely to be in conflict as a result of the decision. Scenario 1 – a business decides that it will increase the wages of its lowest paid workers from £6.70 an hour to £7.50. Which stakeholder groups are most likely to be in conflict with each other as a result of this decision? Select one answer.
- A.
  
  Shareholders and local residents
- B.
  
  Customers and competitors
- C.
  
  Suppliers and local residents
- D.
  
  Shareholders and workers
12.

Scenario 2 – a UK manufacturing business decides to buy its raw materials from a German company and not from its usual UK supplier. Which stakeholder groups are most likely to be in conflict with each other as a result of this decision? Select one answer.
- A.
  
  Shareholders and local residents
- B.
  
  Customers and competitors
- C.
  
  Suppliers and managers
- D.
  
  Shareholders and managers
13.

Oil is the main raw material used by the business. What would be the most likely effect on the business of an increase in the cost of oil? Select one answer.
- A.
  
  Interest rates will increase
- B.
  
  Variable costs will increase
- C.
  
  Revenue will increase
- D.
  
  Profits will increase
14.

Which two of the following are subject to legislation to protect workers from discrimination? Select two answers.
- A.
  
  Qualifications
- B.
  
  Age
- C.
  
  Ability
- D.
  
  Race
- E.
  
  Skill
15.

Lydia Smith, a sole trader, owns and runs Good Reads, a small bookshop. The business faces stiff competition from rivals such as supermarkets. Profits have been falling and Lydia is looking to improve her business. Which two of the following are the most likely methods Lydia could use to help Good Reads compete with its rivals? Select two answers.
- A.
  
  Charge lower prices than supermarkets
- B.
  
  Improve the quality of its customer service
- C.
  
  Provide an online ordering service
- D.
  
  Open three more stores in local towns
- E.
  
  Launch a national advertising campaign
16.

Lydia Smith, a sole trader, owns and runs Good Reads, a small bookshop. The business faces stiff competition from rivals such as supermarkets. Profits have been falling and Lydia is looking to improve her business. Which two of the following will Lydia have to pay in the course of running the business? Select two answers.
- A.
  
  Corporation tax
- B.
  
  Distribution tax
- C.
  
  Income tax
- D.
  
  Labour tax
- E.
  
  National Insurance
17.

Which three of the following are the most likely explanations for the changes in revenue? Select three answers.
- A.
  
  An increase in variable costs
- B.
  
  The product being seasonal
- C.
  
  A rise in profits
- D.
  
  A higher level of sales
- E.
  
  A successful advertising campaign
- F.
  
  A new competitor entering the market
18.

Which one of the following is an example of calculated risk for the owner of this business? Select one answer.
- A.
  
  Revenue increases by 400% between July and December
- B.
  
  Revenue in July is 30% lower than in December
- C.
  
  There is a 25% chance of profits falling in the next six months
- D.
  
  Variable costs increase by 40%