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