AQA Business Unit 1

Question 1 of 20

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Which two of the following are possible objectives for someone setting up business as a sole trader?
Select two answers,

Select one or more of the following:

  • To allow other people to make all the decisions

  • To benefit from limited liability

  • To gain financial support from shareholders

  • To take all the profits

  • To have full control of the decisions

Question 2 of 20

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A small manufacturing company has variable costs.
Which three of the following are examples of variable costs?
Select three answers

Select one or more of the following:

  • Raw Materials

  • Insurance premiums

  • Packaging

  • Loan repayments

  • Gas/electricity bills

  • Salaries

Question 3 of 20

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Which of the following is an internal source of finance?
Select one answer

Select one or more of the following:

  • A loan from a bank

  • An overdraft

  • Selling assets

  • A stock market flotation

Question 4 of 20

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Which three of the following are examples of market segments for a small sports retailer?
Select three answers

Select one or more of the following:

  • Rival sports retailers in the same area

  • Young members of local sports teams

  • A questionnaire conducted with customers

  • Individuals with interests in specialist sports

  • Manager of a local netball team

  • An advertisement in a local newspaper

Question 5 of 20

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The 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

Select one or more of the following:

  • An increase in cash outflows

  • Higher National Insurance payments

  • Lower variable costs

  • Higher fixed costs

  • Lower value added tax (VAT) payments

Question 6 of 20

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Joshua has applied for a patent for his product
The main purpose of a patent is...
Select one answer

Select one or more of the following:

  • To make it easier for Joshua to pay any taxes due

  • To ensure that Joshua gets repeated purchases

  • To place a limit of the number of people who can copy Joshuas idea

  • To register a new invention so Joshua has sole rights to its use

Question 7 of 20

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Which two of the following are examples of lateral thinking techniques?
Select two answers

Select one or more of the following:

  • Mind mapping

  • Brainstorming business ideas with a group

  • Producing a business plan

  • Providing a wide range of products

  • Producing a cash flow forecast

Question 8 of 20

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Which two of the following are disadvantages of using personal savings as a source of finance?
Select two answers

Select one or more of the following:

  • No interest will have to be paid

  • The amount available might not be sufficient

  • The money will not have to be repaid

  • Less money available to deal with emergencies

  • The money is instantly available

Question 9 of 20

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Identify two advantages to Andrew of setting up as a private limited company rather than starting as a sole trader
Select two answers

Select one or more of the following:

  • The potential to raise more finance

  • All profits will go to Andrew

  • Andrew has total control of the business

  • Less risk due to limited liability

  • Fewer legal requirements

Question 10 of 20

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Which one of the following is NOT a source of added value for the retailer when selling crisps to the consumer?
Select one answer

Select one or more of the following:

  • The brand name of the crisps

  • A unique selling point of the crisps

  • Competitors' crisp prices

  • The quality of the crisps

Question 11 of 20

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Which one of the following is an example of long term finance for a sole trader?
select one answer

Select one or more of the following:

  • Share Capital

  • Overdraft

  • Bank loan

  • Trade credit

Question 12 of 20

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Which two of the following are the most likely advantages of starting a new business as a franchise?
Select two answers

Select one or more of the following:

  • Training and support are provided

  • Ability to offer a different service

  • Can buy goods to sell from any supplier

  • Banks are more willing to lend money

  • Can pay staff lower wages

Question 13 of 20

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What are 3 ways of motivating staff working at Tesco, other than increasing their wage?
Select 3 answers

Select one or more of the following:

  • Discounts

  • A company car

  • Praise

  • Training

  • Housing

Question 14 of 20

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Which two of the following would be drawbacks to business facing increased competition?
Select two answers

Select one or more of the following:

  • Offering good products and service

  • Ability to increase prices

  • Need to cut staff levels

  • Not developing opportunities

  • An increase in innovation e

Question 15 of 20

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In 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

Select one or more of the following:

  • What are the set hours I will work?

  • Why not go at it alone?

  • What is the business were to fail?

  • Is the risk worth taking?

Question 16 of 20

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Some businesses produce goods while others produce services. Which two of the following are examples of goods?
Select two answers

Select one or more of the following:

  • A bus journey

  • Freshly-prepared sandwiches

  • A newspaper

  • Haircut

  • Computer repairs

Question 17 of 20

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Which two of the following are subject to legislation to protect workers from discrimination?
Select two answers

Select one or more of the following:

  • Qualifications

  • Age

  • Ability

  • Race

  • Skill

Question 18 of 20

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Which two of the following are examples of variable costs for a small manufacturing business?
Select two answers
Payment for..

Select one or more of the following:

  • Rent of the business premises

  • Insurance payments

  • Raw materials used in production

  • Advertising costs

  • Packaging of the finished products

Question 19 of 20

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Which two of the following methods are most likely to give Jack a competitive advantage? Select two answers

Select one or more of the following:

  • Providing high quality tuition

  • Operating as a sole trader

  • Providing a personalised service

  • Operating in a competitive market

  • Providing a service for a community

Question 20 of 20

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In 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

Select one or more of the following:

  • The price of wheat will fall

  • Charles will have to pay more for his pasta

  • The cost of wheat will rise

  • The demand for wheat will fall

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AQA Business Unit 1

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AQA multiple choice questions

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