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AQA Business Unit 1
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Questions in this quiz (20)
1Which two of the following are possible objectives for someone setting up business as a sole trader?
Select two answers,- ATo allow other people to make all the decisions
- BTo benefit from limited liability
- CTo gain financial support from shareholders
- DTo take all the profits
- ETo have full control of the decisions
2A small manufacturing company has variable costs.
Which three of the following are examples of variable costs?
Select three answers- ARaw Materials
- BInsurance premiums
- CPackaging
- DLoan repayments
- EGas/electricity bills
- FSalaries
3Which of the following is an internal source of finance?
Select one answer- AA loan from a bank
- BAn overdraft
- CSelling assets
- DA stock market flotation
4Which three of the following are examples of market segments for a small sports retailer?
Select three answers- ARival sports retailers in the same area
- BYoung members of local sports teams
- CA questionnaire conducted with customers
- DIndividuals with interests in specialist sports
- EManager of a local netball team
- FAn advertisement in a local newspaper
5The bank increases the rate of interest on the Hardacres loan to 10.5%
Identify two effects of this change on the business
Select two answers- AAn increase in cash outflows
- BHigher National Insurance payments
- CLower variable costs
- DHigher fixed costs
- ELower value added tax (VAT) payments
6Joshua has applied for a patent for his product
The main purpose of a patent is...
Select one answer- ATo make it easier for Joshua to pay any taxes due
- BTo ensure that Joshua gets repeated purchases
- CTo place a limit of the number of people who can copy Joshuas idea
- DTo register a new invention so Joshua has sole rights to its use
7Which two of the following are examples of lateral thinking techniques?
Select two answers- AMind mapping
- BBrainstorming business ideas with a group
- CProducing a business plan
- DProviding a wide range of products
- EProducing a cash flow forecast
8Which two of the following are disadvantages of using personal savings as a source of finance?
Select two answers- ANo interest will have to be paid
- BThe amount available might not be sufficient
- CThe money will not have to be repaid
- DLess money available to deal with emergencies
- EThe money is instantly available
9Identify two advantages to Andrew of setting up as a private limited company rather than starting as a sole trader
Select two answers- AThe potential to raise more finance
- BAll profits will go to Andrew
- CAndrew has total control of the business
- DLess risk due to limited liability
- EFewer legal requirements
10Which one of the following is NOT a source of added value for the retailer when selling crisps to the consumer?
Select one answer- AThe brand name of the crisps
- BA unique selling point of the crisps
- CCompetitors' crisp prices
- DThe quality of the crisps
11Which one of the following is an example of long term finance for a sole trader?
select one answer- AShare Capital
- BOverdraft
- CBank loan
- DTrade credit
12Which two of the following are the most likely advantages of starting a new business as a franchise?
Select two answers- ATraining and support are provided
- BAbility to offer a different service
- CCan buy goods to sell from any supplier
- DBanks are more willing to lend money
- ECan pay staff lower wages
13What are 3 ways of motivating staff working at Tesco, other than increasing their wage?
Select 3 answers- ADiscounts
- BA company car
- CPraise
- DTraining
- EHousing
14Which two of the following would be drawbacks to business facing increased competition?
Select two answers- AOffering good products and service
- BAbility to increase prices
- CNeed to cut staff levels
- DNot developing opportunities
- EAn increase in innovation e
15In deciding to set up in a business and manufacture the product herself, which of the following questions should Mandy NOT have asked herself?
Select one answer- AWhat are the set hours I will work?
- BWhy not go at it alone?
- CWhat is the business were to fail?
- DIs the risk worth taking?
16Some businesses produce goods while others produce services. Which two of the following are examples of goods?
Select two answers- AA bus journey
- BFreshly-prepared sandwiches
- CA newspaper
- DHaircut
- EComputer repairs
17Which two of the following are subject to legislation to protect workers from discrimination?
Select two answers- AQualifications
- BAge
- CAbility
- DRace
- ESkill
18Which two of the following are examples of variable costs for a small manufacturing business?
Select two answers
Payment for..- ARent of the business premises
- BInsurance payments
- CRaw materials used in production
- DAdvertising costs
- EPackaging of the finished products
19Which two of the following methods are most likely to give Jack a competitive advantage? Select two answers
- AProviding high quality tuition
- BOperating as a sole trader
- CProviding a personalised service
- DOperating in a competitive market
- EProviding a service for a community
20In 2009, good weather led to a large increase in the wheat harvest.
Which of the following is the most likely effect of this increase?
Select one answer- AThe price of wheat will fall
- BCharles will have to pay more for his pasta
- CThe cost of wheat will rise
- DThe demand for wheat will fall
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- lauren_binney
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