New business ideas come about because products become obsolete, this means

They no longer meet customer needs

The ROLE of business enterprise is to

Provide customers with goods and services they want and need

What is over trading?

The business grows too quickly without the resources to cope

Which of the following is evidence that cash is NOT the same as profit

Income used to calculate profit MUST come from sales revenue

Which two of the following are risks when the business grows RAPIDLY

Overtrading, Over confidence of staff

What is a sales forecast?

A prediction of revenue for a business

Which one of the following is a risk at the START of a business?

Not securing enough start up capital

Which one of the following is a risk in the early stages of business development

Running out of energy and self belief

A competitive advantage is

Feature of a company/product making it different to others

Which of the following NOT a reward of setting up a business

Bankruptcy and loss of personal assets

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Edexcel 9-1 GCSE Business 1.1 Entrepreneurship

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Entrepreneurship

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Questions 20

Answers

1
New business ideas come about because products become obsolete, this means
They become hard to manufacture
They meet exactly what customer want
They break a lot
They no longer meet customer needs
2
The ROLE of business enterprise is to
Provide customers with goods and services they want and need
To make a profit for shareholders
To create jobs
To compete with other businesses
3
What is over trading?
The business grows slowly and carefully
The business has a lot of cash
The business is highly profitable with high sales
The business grows too quickly without the resources to cope
4
Which of the following is evidence that cash is NOT the same as profit
Cash is used to calculate profit
Profit is the reward for entrepreneurship
Sales- cost of sales = gross profit
Income used to calculate profit MUST come from sales revenue
5
Which two of the following are risks when the business grows RAPIDLY
Overtrading
Over confidence of staff
Running out of energy and self belief
Not securing enough start up capital
6
Huge changes in customer demand have arisen from
changes in demographics
changes is products
changes in technology
changes in prices
7
Which qualities and skills are needed to be an entrepreneur?
Resilience
Risk taker
All of the answers
Well organised
8
What is a sales forecast?
A prediction of break even for a business
A prediction of sales volume for a business
A prediction of cash flow for a business
A prediction of revenue for a business
9
The price of a product with lots of added value is normally
the same as others
higher than others
lower than others
based on costs
10
Which one of the following is a risk at the START of a business?
Overtrading
Over confidence of staff
Running out of energy and self belief
Not securing enough start up capital
11
Goods are
intangible
tangible
reliable
edible
12
Which of the following is NOT a risk of setting up a business
Keeping all the profit
Lack of financial security
Unlimited liability for sole traders
Stress on family life
13
Which one of the following is a risk in the early stages of business development
Running out of energy and self belief
Not securing enough start up capital
Overtrading
Over confidence of staff
14
There are 5 ways to add value. Which of the following is NOT one of them
Great design
A low price
Strong branding
Unique selling point
15
A competitive advantage is
Feature of a company/product making it different to others
A product which is cheaper than the competition
Features that are similar to other products and companies
A product which is less well known
16
Business is dynamic. This means
It uses technology extensively
It is declining
It stays the same
It is constantly changing
17
Select the financial motivator for entrepreneurs
Making a profit
Enjoying risk & challenge
Job satisfaction
Control over business decision
18
Services are
Intangible but give a benefit
Have little worth and intangible
Tangible and have little worth
Tangible but give a benefit
19
Which one of the following is NOT part of the role of an entrepreneur
Organising resources
Making business decisions
Showing leadership
Being inflexible
20
Which of the following NOT a reward of setting up a business
Getting a buzz from start up
Independence and control
Bankruptcy and loss of personal assets
Potential profit and wealth

Edexcel 9-1 GCSE Business 1.1 Entrepreneurship Flashcards | StudBud