Business revision questions / quiz -

GCSE/iGCSE
(answers at bottom)

1. What is the difference between a permanent and a temporary labour contract?

2. What are the owners of a limited liability business called?

3. Give two types of equity capital.

4. What is the formula for LABOUR TURNOVER?

5. What is the name given to the difference between cash inflow and cash outflow?

6. What is a USP?

7. What is the formula for the break-even point?

8. What is a FIXED COST?

9. What is the name for SALES – COST of GOODS SOLD?

10. What is DEPRECIATION?

11. What is the meaning of a ‘TALL ORGANISATION’?

12. What is the definition of SPAN of CONTROL?

13. What does CAPITAL INVESTMENT mean?

14. What is the meaning of MARGIN of SAFETY?

15. What are the 4 P’s? (Marketing mix)

16. What is a MARKET SEGMENT?

17. What is a MARKETING MAP?

18. What is the difference between NICHE and MASS MARKETING?

19. What fixed cost may be affected by a change in the location of a business?
20. What is an EXCHANGE RATE?

21. What is an INTEREST RATE?

22. What is INFLATION?

23. If a business manages to increase its selling price and everything else remains
constant, which
ratio will be affected?

24. What is the difference between ADVERTISING and SPONSORSHIP?

25. What is the purpose of PRIMARY MARKET RESEARCH?

26. What is a FOCUS GROUP?

27. What is MARKET SEGMENTATION?

28. Name TWO pieces of information about a market which may be revealed by
SECONDARY
MARKET RESEARCH.

29. Give ONE method of NON-FINANCIAL MOTIVATION?

30. What does REDUNDANCY mean?

31. What is the difference between a PART-TIME and FULL-TIME JOB?

32. What is the name of the variable which expresses the SIZE of an ECONOMY?

33. Explain ONE EFFECT on a business of a LOW RATE OF UNEMPLOYMENT.

34. What does it mean if a currency APPRECIATES against another currency?

35. What is ONE RISK taken by an entrepreneur?

36. Name ONE REWARD of being an entrepreneur?

37. How do businesses protect themselves from the cost of having to pay for an accident
in the
workplace?

38. What is the most common cause of BUSINESS FAILURE?

40. What is a PARTNERSHIP?

41. What does PROFIT MARGIN mean?

42. What document do banks always want to see when considering granting a business
a LOAN?

43. What is the formula for MARKET SHARE?

44. What is the danger of a business adopting a new technology too soon?

45. What is the name given to the period of time between buying goods from a supplier
and paying the supplier?

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ANSWERS

1. Permanent is an ongoing contract with no end date, temporary has an end date.
2. Shareholders
3. Retained profit and share capital
4. (Number of employees left per annum)/ (Average employees employed per annum)
5. Net cash flow
6. Unique selling point , a feature of a product or service that differentiates it from its
competitors
7. Fixed costs / contribution
8. a cost that doesn’t vary with output
9. gross profit
10. depreciation is the amount by which a product falls (decreases) in value per annum
fall in value of fixed asset over time
11. a tall organization is when their is narrow span of control between managers and their
employees, many layers
12. span of control is the amount of people who a manager is watching and surveillance on
employees which are ranked below them.
13. it is when a business conducts in long term investment (machines or buildings) using
capital, either equity or debt
14. margin of safety is the amount of units sold after you break even, (expected - break
even) / break even
15. product price place promotion
16. a group of customers who have the same needs from a product / service
17. a market map is a tool/graph which shows the competitors products in a grid with two
characteristics of a product in order to allow the business to differentiate their product
and find gap in market and position it in a place with low competition
18. niche business target one market, mass is more than one market
19. rent
20. the value of one currency in another currency
21. the cost of borrowing or return on investment
22. rise of prices over time reward of saving
23. GPM
24. advertising is doing ads, sponsorship is when you host an event advertising you or
sponsoring a famous person
25. to find out about your target market segments customer needs - thoughts and feelings
26. a group of people which a business hires to conduct primary market research, these
people present the target market segment of the business
27. it is the method of segmentation to divide the market into different sizes
28. total sales sold in that market,
29. job rotation / training
30. the process when employers have to let go of one or more employees dueto
circumstances unrelated to job performance or behavior
31. part time jobs are shorter and not guaranteed, full time jobs are full day shifts 5 days a
week.
32. GDP
33. they will have less potential workers and therefore may get less specialized workers
34. it means one currency will become more expensive in exchange rate and gain value, so
it will cost more to purchase that currency
35. lack of security
36. independence
37. labour law
38. insolvency
39. they have to stop operating
40. a business that is started with more than one entrepreneur working together
41. it is the percentage of revenue that turns into profit
42. income statement
43. profit of business / profit of market
44. new technology will be advancedly invented and used by competitors, therefore they will
have an advantage
45. credit