Business Studies GCSE

Question 1

Which of the following is a benefit to an entrepenuer of operating as a sole trader
A) can sell shares
B) easy to set up
C) limited liabilibity
D) many owners

Answer 1

B) easy to set up

Question 2

Which of the following is a method of internal recruitment

Answer 2

C) advertising on a noticeboard in the staffroom

Question 3

Which of the following describes when induction training should take place

Answer 3

A) when employees first join the business

Question 4

Which is correct for a flat organisational structure

Answer 4

D) short chain of command

Question 5

Which is a likely effect of a decrease in interest rates

Answer 5

A) borrowing will be cheaper

Question 6

Which of the following is an example of a fixed cost

Answer 6

A) interest payments

Question 7

Explain one method of growth used by a business when expanding organically or externally

Answer 7

Can expand internally through mergers

This helps the business access new markets and increase its market share quickly

Question 8

Explain one way a person specification can be used as part of recruitment process

Answer 8

Outlines skills and qualifications for the job

Helps employers choose the best people if they match job needs

Question 9

Explain why a business uses delayering

Answer 9

Reduce costs as less managers and supervisors employed

Question 10

Explain the meaning of a term need using an example

Answer 10

A need is a basic human requirement such as food and water

Question 11

Explain one disadvantage to a business of expanding through external growth

Answer 11

Diseconomies of scale and unit costs increase

Question 12

Identify and explain 2 factors of production other than land

Answer 12

Labour - people working in the business

Capital - money or equipment to provide the good and services

Question 13

Explain one benefit to a business of employing workers on a part-time contract

Answer 13

Business saves money as they only pay employees for the hours they work

Question 14

Explain one benefit of growth to a business

Answer 14

Economies of scale as the business increases its output unit costs fall

Question 15

Elaine ordered 20 hair treatments for £300

Calculate unit cosst for each treatment

Answer 15

300 ➗ 20 = £15

Question 16

The supplie offered 35% discount

Calculate unit cost of 120 orgainc hair treatments with discount

Answer 16

120 x 15 = £1800

35/100 x 1800 = £630

1800 - 630 = £1170

Question 17

One benefit to a business providing a high level of customer service

Answer 17

Increases cutomer loyalty

Question 18

Explain one benefit to Bootmills Ltd using total quality management

Answer 18

Improved product quality leads to higher customer satisfaction

Question 19

Calculate percentage chqnge in value of the pound against value of the euro December to March

Answer 19

1.17 - 1.20 = -0.03€

-0.03€ ➗ 1.20 x 100 = -2.5%

Answer is 2.5%

Question 20

Analyse 1 impact of the falling value of the pound on the profits of Bootmills Ltd

Answer 20

Importing goods from other countries is more expensive.

This increases production costs

Higher costs = less profit

Ltd is in a competetive market, raising prices may lead to losing customers furthermore reducing profits

Overall it’s negative impact

Question 21

Advantages of just in case stock control

Answer 21

Ready for extra demand - business won’t run out of stock if more customers buy than expected

No delays - if problem with suppliers production won’t stop

Always having stock keeps customers satisfied

Cheaper bulk buying

Question 22

Disadvantages of just in case stock control

Answer 22

Expensive storing extra stock

Items could go out of date

Money spent on stock could be used elsewhere

Harder to manage a lot of stock

Question 23

1 factor which would be considered when making a decision to change supplier

Answer 23

Cost - business will look for cheaper supplier

If supplier offers lower prices this saves money and increases profits

But business also needs to think about quality of goods as cheap prices may lead to lower quality leading to complaints or returns

If new supplier is cheaper but provudes good quality, the business saves money without losing customers

Question 24

Explain how 1 financial method of boots Ltd to motiavte employees

Answer 24

Profit sharing awarded to employees

Employee turnover is low

Employees benefit from an increase in the business’s profits

Increases loyalty as they feel valued and rewarded

Boosting productivity as high profits equals high reward

Question 25

Advantages flow production

Answer 25

Increase efficiency as more products made at a time

Lowers costs per unit allowing them to increase profit margins

Question 26

Disadvantages of flow production

Answer 26

Expensive as require heavy machinery

Repetitive tasks reduce employee morale leading to high staff turnover

Low quality products