MCQ Summary Test 5. Edexcel GCSE Business Theme 2: Building a business summary test 5 Multiple Choice Question Test Bank

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1 Theme 2 Edexcel Business Edexcel GCSE Business Theme 2: Building a business summary test Multiple Choice Question Test Bank MCQ Summary Test This MCQ test contains 13 questions covering the specification content for Theme 2: Building a business

2 Instructions: There are 13 questions in this test. Your teacher will determine how long you have to complete this test and under what conditions. Only one answer per question is allowed for questions 1-11 inclusive. Two answers should be selected for questions 12 and 13. For each answer, completely fill in the circle alongside the appropriate answer(s). If you want to change your answer, you must cross out your original answer. If you wish to return to an answer previously crossed out, ring the answer you now wish to select. 0 1 Which of the following is most likely to be true for a supervisor working in a hierarchical organisational structure? A Lots of freedom given in decision-making There will be more promotional opportunities available compared to B working in a flat structure Communication with staff at the top of the organisational structure C will be easy Difficult to monitor the workload of subordinates due to wide spans of D control 0 2 Which of the following is a disadvantage of organic growth? A Unit costs can be reduced as the business grows B Growth may be slow C Can often be financed through internal funds D It is often hard to control and manage compared to external growth 0 3 Which of the following is an example of a fringe benefit? A Holiday pay B Overtime payment C Praise at work D Free lunches

3 0 4 Which of the following products is likely to be made using job production? A Heinz baked beans B Cadburys Dairy Milk C Land Rover car D Made to measure wedding dress 0 Which of the following is a likely result to a business of having a highly productive workforce? A It should have more flexibility in its pricing B It will find it more difficult to compete with rivals C Its labour costs per unit will rise D Its profit margins may fall 0 6 Many businesses use social media to communicate with buyers of their products. Which of the following describes this process? A The sales process B Post-sales service C Customer engagement D Product knowledge

4 0 7 The market share of 4 different businesses in a small, local market is shown in the pie chart below. Market share of different businesses in a local market 30% 12% 20% 38% Business A Business B Business C Business D If the market size by value is 120,000, what is the value of sales in s made by Business B? A 14,400 B 24,000 C 36,000 D 4, A business expects its sales revenue to stay the same next year whilst experiencing an increase in cost of sales. Which of the following is the most likely impact on the business? A Gross profit and net profit will increase B Gross profit and net profit will decrease C Gross profit will increase and net profit will decrease D Gross profit will decrease and net profit will increase

5 0 9 Which of the following would be the most suitable place for a large public limited company to advertise for a senior director? A National newspaper B Job centre C Staff noticeboard D Company intranet 1 0 Which of the following is an example of an internal source of finance? A Loan capital B Selling assets C Share capital D Stock market flotation 1 1 Which of the following best describes the term staff retention? A The number of people that leave a firm in a set period of time B The number of staff that remain working in a firm in a set period of time C The number of staff that are promoted in a firm in a set period of time D The number of staff that are made redundant in a firm in a set period of time 1 2 Which two of the following are limitations to a business of using job production? A Employee demotivation due to the boring nature of work B High cost of purchasing the production line machinery C Difficult to change the production line D Unit costs are likely to be high E Difficult for the business to grow due to shortages of specialist skills [2 marks]

6 1 3 A successful public limited company is looking to expand into new markets whilst minimising the risk of takeover. The business wants to use internal sources to raise funds. Which two of the following sources of finance would be the most suitable to fund this expansion? A Share capital B Selling unwanted assets C Retained profit D Stock market flotation E Loan capital [2 marks] ANSWERS TO THIS MCQ TEST

7 Q CORRECT 1 B 2 B 3 D 4 D A 6 C 7 B 8 B 9 A 10 B 11 B 12 D,E 13 B,C