Edexcel GCSE: Business Fundamentals Quiz

17 Questions | Total Attempts: 184

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GCSE Quizzes & Trivia

The contents covers Business, Understanding Customer Needs, Market Mapping, Market Segmentation, Competition, Added Value and Franchising.


Questions and Answers
  • 1. 
    What is the purpose of a business?
    • A. 

      To produce goods and products for customers.

    • B. 

      To gain profit by producing products.

    • C. 

      To sell goods or a service to consumers.

    • D. 

      To produce good or a service to meet the needs of customers.

  • 2. 
    What does a supplier do?
    • A. 

      Sells raw materials to another business.

    • B. 

      Purchases materials for a business.

    • C. 

      Creates products using raw materials.

    • D. 

      Supplies a business with money.

  • 3. 
    What are customer needs based upon? 
    • A. 

      Quality, customer service, growth and shrink in the market and price.

    • B. 

      Quality, product range, convenient locations, good customer service and price.

    • C. 

      Features, convenient locations, after care service, price and age and gender.

    • D. 

      Price, main competitors, good quality, location and product range.

  • 4. 
    What does market research tell a business?
    • A. 

      Features, quality of products, price, age and gender, location and the growth and shrink of a market.

    • B. 

      Price, location, quality of products, product range, customer service and age and gender.

    • C. 

      Features, price, location, age and gender, competitors and the growth and shrink of a market.

    • D. 

      Customer service, product quality, location and competitors.

  • 5. 
    What is primary and secondary research?
    • A. 

      Primary and secondary research is collecting data.

    • B. 

      Primary research is collecting data that already exists and secondary is data that does not exist.

    • C. 

      Secondary and primary research is collecting data that already exists.

    • D. 

      Primary research is collecting data that did not exist and secondary is data that already exists.

  • 6. 
    What are examples of primary research and the benefits? 
    • A. 

      Examples are focus groups, observations, experiments, questionnaires and surveys.

    • B. 

      Examples are focus groups, experiments, observations, questionnaires, surveys and the benefits are it is accurate, up to date, specific, effective at retrieving qualitative data and allows direct customer contact.

    • C. 

      The benefits are it is accurate, up to date, retrieve qualitative data, specific and allows direct customer contact.

    • D. 

      Examples are sites, newspapers, government statistics, market reports, telephone directories and sales data and the benefits are it is quick and effective at retrieving quantitative data.

  • 7. 
    What are examples of secondary research and the benefits?
    • A. 

      Examples are sites, newspapers, government statistics, market reports, telephone directories and sales data.

    • B. 

      Examples are sites, newspapers, government statistics, market reports, telephone directories and sales data and the benefits are it is general, quicker and effective at quantitative data.

    • C. 

      Examples are focus groups, experiments, observations, questionnaires, surveys and the benefits are it is accurate, up to date, specific, effective at retrieving qualitative data and allows direct customer contact.

    • D. 

      Examples are sites, newspapers, market reports, telephone directories and sales data and the benefits is it effective at quantitative data.

  • 8. 
    A market segment is a group of buyers with similar characteristics and buying habits, what can these be identified as? 
    • A. 

      Age, gender, location, ethnicity, religious groups and income.

    • B. 

      Gender, age, income.

    • C. 

      Location, ethnicity, religious groups, income, gender and lifestyle.

    • D. 

      Age, gender, income and lifestyle.

  • 9. 
    What does market segmentation enable a business to do?
    • A. 

      Focus on target market activity and develop a USP to increase profit by enabling repeat purchases.

    • B. 

      It allows a business to gather qualitative and quantitative data.

    • C. 

      It allows a business to identify gaps in the market where customer needs are not being met.

    • D. 

      Meet specific needs, differentiate its product (USP), focus on specific groups, target market activity, develop a unique brand image and close customer relationships.

  • 10. 
    What are ways a business can compete? 
    • A. 

      Develop a unique selling point.

    • B. 

      Improve its product range, quality, after sales service, experience, design, brand image and features of the product.

    • C. 

      Reduce its prices so that customers are attracted to the products that the business offers.

    • D. 

      Improve its product range, experience, design, brand image and features of the product.

  • 11. 
    What is branding? 
    • A. 

      When a business develops a unique brand image.

    • B. 

      When a customer associates and identifies with a product, and sees it as being different which allows it to develop a unique brand image.

    • C. 

      Putting labels onto products to attempt to increase purchases.

    • D. 

      Gaining brand recognition.

  • 12. 
    What is added value?
    • A. 

      Making a product different in a way which increases the chance of customers buying it.

    • B. 

      The increased worth a business creates for a product and the difference between supplying expenses and the selling price.

    • C. 

      Making a product more convenient, increasing the speed of a service, adding a better design, improving the quality and branding and developing a USP.

    • D. 

      The increased worth a business creates for a product.

  • 13. 
    A franchise is the right given by one business to another to sell goods or services using its name; what is a franchisor? 
    • A. 

      A franchisor is the business that gives the franchisee the right to sell its good/service.

    • B. 

      A business that agrees to manufacture, distribute or provide a branded product under license.

    • C. 

      A business that gives the right to sell its product in exchange for products.

    • D. 

      A franchisor is business like McDonald's.

  • 14. 
    What are the benefits of a franchise to a franchisee? 
    • A. 

      It increases the chance of survival.

    • B. 

      Established brand name, constant support, training, equipment, access to goods and services, advertising and promotion and operating in an exclusive area.

    • C. 

      They are able to close down the business whenever they like.

    • D. 

      Support, training, equipment, access to goods and services, advertising and promotion, guaranteed success and cheaper to set up.

  • 15. 
    What are the benefits of a franchise? 
    • A. 

      Established brand name, equipment, access to goods and services, advertising and promotion and operating in an exclusive area.

    • B. 

      Higher chance of survival.

    • C. 

      There are less risks than starting up your own business, as all starting costs are covered, there is a large amount of control and high success rate.

    • D. 

      Expensive marketing costs are covered, established brand image, higher chance of survival, established customer base, tried and tested products and on going support and training.

  • 16. 
    What are the drawbacks of a franchise? 
    • A. 

      There are none - a franchise is a guaranteed way for an entrepreneur to start a business which generates large sums of profit.

    • B. 

      It reduces the chance of added value which causes the chance of survival and long term growth to also decrease as your control over the business is limited.

    • C. 

      Unable to change the product/service sold and the store which increases the chance of failure.

    • D. 

      You have limited control, the start up is expensive as well as the royalty payments and there is a complicated application process.

  • 17. 
    What factors influence a business when choosing a location?
    • A. 

      Competition proximity, cost, passing trade and accessibility.

    • B. 

      Existing market, demand for the product and the buying characteristics of the people in the area.

    • C. 

      Cost, demand for the product and existing competition.

    • D. 

      All of the above.

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