Topic 1.3 Business GCSE

Question 1

What does the term ‘business’ refer to?

Answer 1

An organization that produces goods or services to meet the needs of customers.

Question 2

True or False: A business can only be for profit.

Answer 2

False

Question 3

Fill in the blank: The main purpose of a business is to _______.

Answer 3

make a profit

Question 4

What is a ‘stakeholder’?

Answer 4

Any individual or group that has an interest in the success of a business.

Question 5

Multiple choice: Which of the following is NOT a type of business ownership? A) Sole trader B) Partnership C) Corporation D) Department

Answer 5

D) Department

Question 6

What is a ‘sole trader’?

Answer 6

A business owned and operated by one individual.

Question 7

True or False: Partnerships require a formal contract.

Answer 7

False

Question 8

What is the main advantage of a limited company?

Answer 8

Limited liability for its owners.

Question 9

Fill in the blank: In a partnership, profits are usually _______ among partners.

Answer 9

shared

Question 10

What does ‘limited liability’ mean?

Answer 10

Owners are only responsible for the business’s debts up to the amount they invested.

Question 11

Multiple choice: Which of the following is a disadvantage of being a sole trader? A) Unlimited liability B) Limited control C) Higher taxes D) Difficulty in raising finance

Answer 11

A) Unlimited liability

Question 12

What is a ‘franchise’?

Answer 12

A business model where a franchisee pays to use the branding and business model of a franchisor.

Question 13

True or False: Franchising allows for independent business operation.

Answer 13

True

Question 14

What are the three main types of business objectives?

Answer 14

Profit maximization, growth, and survival.

Question 15

Fill in the blank: A business’s _______ are specific targets it aims to achieve.

Answer 15

objectives

Question 16

What is ‘market research’?

Answer 16

The process of gathering, analyzing, and interpreting information about a market.

Question 17

Multiple choice: Which method is NOT commonly used for market research? A) Surveys B) Focus groups C) Guessing D) Interviews

Answer 17

C) Guessing

Question 18

True or False: Primary research involves collecting data that already exists.

Answer 18

False

Question 19

What is ‘secondary research’?

Answer 19

The analysis of data that has already been collected by others.

Question 20

Fill in the blank: A _______ is a detailed plan that outlines how a business will achieve its objectives.

Answer 20

business plan

Question 21

What is the purpose of a business plan?

Answer 21

To guide the business and attract investors.

Question 22

Multiple choice: Which section is NOT typically included in a business plan? A) Executive summary B) Marketing strategy C) Personal history D) Financial forecasts

Answer 22

C) Personal history

Question 23

What does ‘cash flow’ refer to?

Answer 23

The total amount of money being transferred into and out of a business.

Question 24

True or False: Positive cash flow means a business is receiving more money than it is spending.

Answer 24

True

Question 25

Fill in the blank: A _______ is a financial document that shows a business's income and expenses.

Answer 25

profit and loss account

Question 26

What is 'break-even analysis'?

Answer 26

A calculation to determine the sales volume at which total revenues equal total costs.

Question 27

Multiple choice: At break-even point, a business's profit is: A) Positive B) Negative C) Zero D) Unknown

Answer 27

C) Zero

Question 28

What are 'fixed costs'?

Answer 28

Costs that do not change regardless of the level of production.

Question 29

True or False: Variable costs fluctuate based on production levels.

Answer 29

True

Question 30

Fill in the blank: The _______ is the amount left after all expenses are deducted from revenue.

Answer 30

net profit

Question 31

What is the significance of 'branding'?

Answer 31

It helps differentiate a business's products from competitors.

Question 32

Multiple choice: Which of the following is NOT a benefit of effective branding? A) Customer loyalty B) Higher sales C) Increased costs D) Brand recognition

Answer 32

C) Increased costs

Question 33

What does 'target market' mean?

Answer 33

A specific group of consumers at which a business aims its products and services.

Question 34

True or False: Businesses should only target one market segment.

Answer 34

False

Question 35

Fill in the blank: A _______ is a visual representation of a product's life cycle.

Answer 35

product life cycle

Question 36

What are the stages of the product life cycle?

Answer 36

Introduction, growth, maturity, and decline.

Question 37

Multiple choice: At which stage do sales typically peak in the product life cycle? A) Introduction B) Growth C) Maturity D) Decline

Answer 37

C) Maturity

Question 38

What is 'customer service'?

Answer 38

The assistance and advice provided by a company to those who buy or use its products.

Question 39

True or False: Good customer service can lead to repeat business.

Answer 39

True

Question 40

Fill in the blank: _______ refers to the way a business communicates with its customers.

Answer 40

Marketing