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Edexcel Business Studies - Theme 1 Flashcards | StudBud
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Edexcel Business Studies - Theme 1
Edexcel Business Studies - Theme 1
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Know the basic knowledge for Edexcel GCSE Business Studies
Flashcards
100 cards
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Questions
100
Answers
1
What does interest rate mean?
The total amount borrowed from a bank
The percentage added to a payment over time
2
What are Variable Costs?
The total amount of output from a business
The costs that don't change with level of output
The costs that change with the level of output
The costs that business don't have to pay
3
What is a stakeholder?
Someone who has an interest in the business, e.g. Employees
Someone who owns part of the business
4
Calculate the Break Even Point; Price = £300, Fixed Costs = £2 400 000, Variable Costs = £140
10 000 Consoles
15 000 Consoles
20 000 Consoles
17 000 Consoles
5
Which of these is NOT the role of Market Research?
Know how much profit you want to make
Understand trednds in the market
Identify and understand customer needs
Identify gapsin the market
6
What does Variable Interest Rates mean?
Do change over the time of a loan
Do not change over the time of a loan
7
What are Fixed Costs?
Costs that don't change from level of output
Costs that change from level of output
The costs that the business doesn't have to pay
The total amount of output from a business
8
What does innovation mean?
Creating new products
Improving products
9
Which of these is NOT the importance of Cash to a business?
Repay the bank
Not being able to buy raw materials
Promote the business
Pay off its suppliers
10
What are the advantages of a Private Limited Company?
Share profits
Limited liability
Harder to set up
Shareholders may disagree
11
What is meant by m-commerce and e-commerce?
E-commerce - Sells online M-commerce - Physical location
M-commerce - Sells online E-commerce - Physical location
12
Which of these is not a drawback of a Competitive Market?
Lower prices in orderto compete
Higher profit margins
Monitor competitors closely
13
What is meant by Promotion?
Commuication between the business and customers - awareness
Why they sell the product
How the business sells its product
What the product is
14
The purpose of a business plan?
To show others you can produce a business plan
To show off the skills from an entrepreneur
Convince the bank to give you a loan
15
What is meant by Product?
What the products are used for
Why the products are used
The product meeting Customer needs
What is the product
16
Which of these is NOT a Customer Need?
High Price and Low Quality
Choice
Quality
Price
17
How do Entrepreneurs benefit the economy?
Manufacture products - creating CO2
Creating jobs
18
Which of these is NOT a type of Primary Research?
Observations
Focus groups
Surveys
Internet sites
19
What is Cash Flow?
The money just coming out of the business
The money just coming in to the business
The money flowing in and out of the business
The money the business has
20
What does Qualitative data mean?
People opinions and judgements
Data that can be expressed by numbers and statistically
21
What is meant by Price?
Evaluating why the product or service is priced specifically
How much the business sells their product/servise for
How its priced like that
Why the price is a certain price
22
Who would benefit from the Business Plan?
Partners
Investors
Customers
Owners
23
What is a Franchisor?
The business that is their own business
The person/people who ask/receive the rights
The business that has failed
The business that gives out the rights
24
What does SMART stand for?
Smart, Measurable, Achievable, Realistic, Time
Specific, Measurable, Achievable, Realistic, Time
25
What does having Unlimited Liability mean for a business?
The owner only risks what they put in to the business
Owner risks personal assets if the business goes in to debt
26
Which of these are advantages of Market Segmentation?
Meet specific customer needs
Customer characteristics change over time
Focusing on one segment can mean missing opportunities
27
Which of these do NOT effect Competition?
Lower Prices
Better Design
Higher Quality
Different Target Market
28
What is the margin of Safety?
Break Even Point - Profit
Profit + Loss
Actual Sales - Break Even ales
Revenue - Costs
29
A disadvantage to a business of investing in to new Technology?
Employees will have to be trained
They wouldn't earn enough revenue
The customers could be more satisfied
The business would fail
30
What is an Entrepreneur?
Someone who owns and runs their own business
They want to study business
A risk taker who has confidence to follow their ideas
Someone who wants to employ at least 5 people
31
What is an Aim?
Very specific to the business
Helps them achieve their objectives
More general targets for a buiness
32
What does Unlimited Liability mean?
The owners and the businesses have the same identity
The owners and the businesses have different identities
33
What is inflation?
The average change in Product prices in the economy
The average change in Profits in a business
34
What are the principles of Consumer Laws?
Terms in the contract should be fair
Businesses should disclose all information
Customers have the right to return or reject goods
Products sold should be of a good quality
35
Which of these do businesses NOT do?
Produce
Buy
Steal
Sell
36
Which of these is an advantage of of Consumer Law?
Business has to keep up to date
Bad publicity
They can restrict businesses
Good publicity if followed
37
Which of these is NOT included in the Employment Law?
Fair wages
Health and Safety
Treated equally
Discriminated against
38
What is Market Segmentation?
A group of buyers with different characteristics
How a business groups up the market
39
Which of these is NOT a type of secondary market research?
Government reports
Market reports
Social Media
Telephone directories
40
What does it mean by Long Term Finance?
Repaid over a longer period of time (up to 25 years)
Takes a long time to recieve
41
What is the formula for Calculating Interest on Loans?
(Total Borrowed - Repayment Amount)/(Borrowed Amount) x 100
(Total Repayment - Borrowed Amount)/(Borrowed Amount) x 100
42
What does invention mean?
Improving products
Creating new products
43
Which of these is an example of a Financial Objective?
Challenge
Customer Satisfaction
Survival
Personal Satisfaction
44
What is the Consumer Law?
Laws to protect Customers and Consumers from a business
Protects businesses from customers
45
How has Technology affected Promotion?
Products need constantly innovating
May be focussing on social media rather than newspapers
46
The Two business ownership types with Unlimited Liability?
Sole trader and Partnership
Private Limited and Public Limited companies
47
The Two business ownership types with Limited Liability?
Sole Trader and Partnership
Private Limited and Public Limited Companies
48
Why is added value important?
Allows you to make a profit
Means you have a higher risk of making a loss
49
Which of these is an example of a Risk?
Gained independence
Business Success
Profit made
Business Failure
50
A Venture Capitalist is good for...
Raising capital from investors with knowledge
Investing in to a business with no knowledge or money
51
If Ashley borrowed £10 000 from the bank. She pays back over 3 years, interest rate=5% per year
She'd pay back £11 500
She'd pay back £15 500
She'd pay back £20 000
She'd pay back £25 000
52
What is Total Revenue?
The amount the product costs to make
The total input from sales in a business
The total output from a business
The amount of products/services a business sells
53
Which is an example of Stakeholder conflict?
Managers and directors
Stakeholders want higher prices, customers want lower prices
54
What is the Formula for the Break even point?
Variable Costs / (Sales Price - Fixed Costs)
Price x Quantity
Price / Quantity
Fixed Costs / (Sales Price - Variable Costs)
55
How has Technology affected Price?
Customers can easily compare prices online
Products need constantly innovating
56
What does Limited Liability mean?
The owners and the business have separate identities
The owner and the business have the same identity
57
Why is business location important?
Access to raw materials, target market, competitors, labour
If the place looks nice
58
What is the Break even Point?
When the Total Revenue = Fixed Costs - Variable Costs
When the Fixed Costs = Variable Costs
When the Total Revenue = Total Costs
When the Variable Costs = Total Revenue
59
What does it mean by Competitive Market?
Small number of businesses with the same target market
Large number of businesses with the same target market
60
Which of these are examples of Market Segmentation?
Location
Demographics
Income
Lifestyle
61
What is Total Costs?
The costs that change with level of output
The sum of all the costs at any level of output
The costs that don't change with level of output
The sum of the Variable costs and Profit
62
What is added value?
The selling price of the product - the cost to make it
The total amount of profit
63
Which of these is NOT an example of personal circumstances?
Finacial Needs
Personal Tastes and Preferences
None of the above
Family Needs
64
What does it mean by Short Term Finance?
Easy and quick to get
Repaid quite quickly
65
Which of these is an advantage of a Franchise?
No or little control
Prices can be high
Well established brand
Can't keep all profits
66
What is a Business Plan?
Knowing the name of the business
Predicting development of business, forecasts, sales, costs
A record of profits
Designing business cards
67
Which of these is NOT a method of adding value?
Location
Convenience
USP
Brand
68
What are the advantages of a sole trader?
Harder to raise the money
Sole trader makes all the decisions
Unlimited liability
A lot of pressure on one person
69
Which of these are disadvantages of Market Segmentation?
Meet specific customer needs
Customer characteristics change over time
develop a unique brand image
70
What are the advantages of a Partnership?
Partners may disagree
Easier to raise the finance
No longer exists if one person leaves
Profits are shared
71
Why is Market Mapping used?
To see where your competition is located
A diagram that allows a gap in the market to be discovered
72
Which one of these is an example of a Non-Financial Objectives?
Profit
Business Recognition
Financial Security
Survival
73
Which of these is a disadvantage of Consumer Law?
Improved relationships with stakeholders
Businesses need to keep up to date
74
Which of these is an example of a Reward?
Business Success
Financial loss
Lack of security
Business Failure
75
Bank overdraft is:
A Short Term Source - good for covering short term expenses.
A Long Term Source - good for covering long term expenses.
76
What is the Formula for Total Costs?
Variable Costs x Break Even Point
Fixed Costs x Profit
Variable Costs + Fixed Costs
Profit - Loss
77
Two types of Technology that may be used by a business?
Email
Contactless Payment Systems
3D printing
78
What does Fixed Interest Rates mean?
Do change over the time of a loan
Do not change over the time of a loan
79
What is a franchisee?
The business asking/receiving the rights
The business that wants to start on its own
The business that fails
The business giving out the rights
80
How has Technology affected Product?
E-commerce allows more effective selling
Products need constantly innovating
81
How is Risk lower in some businesses than others?
A highly competitive market
A large market
Seasonal demand
An owner who doesn't know much about how to run a business
82
What does a business having Limited liability mean?
Owner loses personal assets if the business goes in to debt
The owner only loses what is put in to the business
83
What does Obsolete mean?
Still wanted but no longer made
No one uses it anymore so its isnt made anymore
84
What is a Franchise?
The person who owns the shop
Right given by a business to another to sell with their name
The person who wants to open a shop
A person who shops in a shop
85
Selling shares is a Long Term Source of Finance?
True
False
86
What is the Cash Flow Forecast?
Predicts just the revenue
Predicts just the profit
Predicts how cash will flow through a business over time
Predicts just the margin of safety
87
What does Quantitative data mean?
People opinions and judgements
Data that can be expressed by numbers and statistically
88
How can Risk be reduced?
Produce a business plan
Get a bank loan rather than personal savings
Detailed Market Research
89
What of these is NOT an example of an External Influence?
Legislation
Recruitment of employees
Technology
Climate
90
Which of these does Changing technology NOT mean?
Make products safer
Make products more dangerous to use
Make products and services cheaper
Make products quicker and more efficient
91
Which of these is NOT a reason for finance (in terms of business)?
Buying a personal House
Expanding the business
Paying for expenses
Starting up a new business?
92
What is the formula for Total Revenue?
Profit x Break Even Point
Price x Quantity Sold
Loss x Profit
Price x Break Even Point
93
Which of these is a short term source finance?
Venture Capital and Crowd Funding
Bank Overdraft and Trade Credit
94
How has Technology affected Place?
Products need constantly innovating
Customers can easily compare prices online
95
What does it mean by Falling Interest Rates?
Fall in interest rates will lower the costs of borrowing
Fall in interest rates will increase the costs of borrowing
96
What is an Objective?
The businesses thoughts on the business
The businesses predictions of profit
Very general, not specific
More specific than aims, help the business achieve the aims
97
What is meant by Place?
Where the product is Distributed
Where the product is Used
Where the product is Manufactured
Where the product is Produced
98
What is the Opening Balance?
The profit the business made in one month
The money the business has at the start of the month
The same as the closing balance from the previous month
The loss the bsuiness made at the start of the month
99
What does it mean by Rising Interest Rates?
Rise in interest rates will decrease the costs of borrowing
Rise in interest rates will increase the costs of borrowing
100
What is Net Cash Flow?
Net Cash Flow = Cash Inflows - Cash outflows
Net Cash Flow = Cash Outflows - Cash Inflows
