WJEC General Certificate of Secondary Education (GCSE) Business Studies Practice Test

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• Which cost is fixed regardless of output?
• Which term describes selling products at the point of sale to encourage immediate purchase?
• Which method involves selling a fixed asset and then leasing it back to continue using it?
• Which term describes gathering existing information from sources such as articles and websites?
• Which element of the Marketing Mix deals with the locations and channels through which a product is sold?
• What word describes anyone with an interest in or affected by a business's actions?
• Costs which do vary according to output. These costs are directly related to making the product?
• Buying and selling products/services online is known as what?
• If total cash inflow is 500,000 and total cash outflow is 320,000, Net Cash Flow is?
• Which term describes an organisation that uses resources to meet the needs of customers by providing a product or service they demand?
• Which process describes a trade union negotiating terms on behalf of its members?
• Which term describes a private company with limited liability that can have its shares held by family and friends?
• Which rate moves with the Bank of England base rate?
• Which arrangement involves paying in instalments to hire a item and using it until the last payment is made?
• What term describes the amount left after all payroll deductions are taken into account?
• Where are shares of companies bought and sold on the main securities market?
• What term refers to costs incurred from exchanging currencies when trading internationally?
• The number of items that are ordered?
• Which pricing strategy would a firm use to enter a market by setting a relatively low price compared to rivals?
• What is net cash flow?
• Which term describes cost advantages from increasing production, leading to lower average costs per unit?
• Which term is the total of fixed assets and net current assets?
• The process of gathering and interpreting data about customers and some competitors within a firm's target market.
• Which concept includes the four elements Price, Product, Place and Promotion?
• Which term describes the total income from sales before any costs are deducted?
• Which of the following best describes working capital?
• Which document outlines what the job entails?
• Which payment method allows a buyer to receive goods now and pay later, typically within 30, 60 or 90 days?
• A product that is unique in the eyes of the customer is described as what?
• The four stages Introduction, Growth, Maturity and Decline describe which concept?
• Formula for Breakeven?
• When larger businesses can afford to employ specialists whose salaries are high, these can be spread over the large number of goods produced so that the cost for the each of the workers is small
• What type of economies occur when a firm buys inputs in bulk, reducing average costs?
• Which term describes an organization focused on social goals and may generate profit?
• A tax on businesses profits, paid by LTD and PLCs.
• Which training is designed to introduce new workers to the company and their role?
• Which term is defined as fixed assets plus net current assets?
• Which term describes a person who provides capital to a business but does not take part in day-to-day management?
• Liabilities the business owes in the short term.
• Which term is the level at which new orders are placed?
• Which term best describes the assortment of products a business offers, including all lines and variations?
• Which type of deductions are optional and not mandated by law?
• What is the amount paid after deductions called?
• What is the liability of the business owners who are personally responsible for its debts?
• Continuous improvement in business practices is also known as what?
• Which exchange is the main UK market for trading company shares?
• Which term describes setting prices in relation to what competitors charge?
• Which of the following is an exogenous shock?
• What term describes profit defined as sales revenue minus total costs?
• Which term is commonly used to describe the practice of making small, incremental improvements over time?
• Which term describes gathering new information directly from customers through field research?
• Which element of the Marketing Mix concerns advertising and communications with customers?
• Which term is used for the measure of liquidity equal to current assets minus current liabilities?
• The least stock a firm wants to hold?
• Which description matches Re-Order Quantity?
• Fixed assets + net current assets equals what?
• Which term describes a company that can raise capital by selling shares on a public stock exchange?
• A group of individuals who work together to make a profit, they have unlimited liability.
• Which pricing method adds a profit percentage to the cost of producing goods?
• Which document provides a brief personal summary included with a job application?
• An entrepreneur is a person who has possession of a new enterprise venture or idea and is accountable for the inherent risks and the outcome of a product. Which term best matches this description?
• Which statement measures profitability over a year or more?
• Which process is responsible for anticipating, identifying and satisfying customer needs profitably?
• Total Costs are equal to?
• Which term refers to economies of scale gained by negotiating lower interest rates with banks?
• Which term describes a strategy where a company buys into another firm at an earlier stage of production (upstream)?
• Current assets minus current liabilities equals what?
• Which option refers to funds raised from outside the business?
• Where businesses promote their product at the point of sale?
• If Turnover is 500,000 and Net Profit is 75,000, Net Profit Margin is?
• What is the term for funds raised by issuing shares?
• Which pricing strategy is used when firms set prices much lower than the main competition to gain market share?
• Which term describes the economies of scale achieved when investing in machinery leads to higher productivity and lower average costs?
• What term describes the practice of focusing on specific activities where a business has strengths?
• SPICED is a currency mnemonic describing the effects of a strong pound. Which statement is true?
• Which term represents the overall value on the balance sheet formed by combining fixed assets and net current assets?
• Who are the people below a manager in the chain of command?
• What do you call a government grant that does not need to be repaid?
• Which form of liability means owners' personal assets are at risk for all debts?
• Which term describes businesses that operate in many countries, with many offices and factories around the world?
• Which loan is repaid over 10 years or more?
• When a business merges with or takes over another business, this is an example of which growth approach?
• Which term describes individuals or groups affected by a business's actions, including employees and customers?
• All the costs associated with running the business are referred to as what?
• The person or business that offers to franchise to other businesses using its trading methods, products and branding.
• Which term describes unpredictable events that can impact a business, such as volcanic ash clouds or disease outbreaks?
• Which document outlines the specific requirements needed for a job?
• Which loan is borrowed from a bank and repaid, with interest, over a period of 0-3 years?
• What are the costs of changing currency?
• What is sustainability in a business context?
• What term is used when one business buys another business outright (purchasing another firm)?
• VAT stands for which of the following?
• What describes the cost advantages that occur as output increases and average costs fall?
• Balance Sheets show a business's financial position at a point in time and show which items?
• VAT is a tax on what?
• Which type of business involves two or more people sharing profits and unlimited liability?
• Tariffs are...
• Which concept involves giving employees more autonomy to decide how to perform their work, often boosting motivation?
• An organisation whose primary aim is social. Social enterprises can make a profit.
• Which level triggers a new purchase order to replenish stock?
• Which term describes dividing a market into groups with similar characteristics?
• What term describes two or more businesses merging to form a single company?
• Which document describes the general qualities and abilities required for the job?
• What term describes the cost of borrowing and the reward for saving?
• Which term is used when workers are paid for the hours they work?
• Which concept shows the layers of authority within a business?
• Which term describes advertising to people within the organization?
• General rise in prices over time is called what?
• Which of the following is an example of a fixed asset?
• Long-term loans. E.g. Mortgage.
• What term describes expanding by purchasing suppliers at an earlier stage of production?
• What term is used for different designs or variations of the same product?
• Costs that do not vary with the level of output are called?
• What term describes managers handing authority to subordinates to carry out tasks?
• What is the general term for organisations that provide goods or services to satisfy customer demand using resources?
• Which term is used for online buying and selling activity?
• What economies arise when large firms can employ specialists whose high salaries are spread over many outputs?
• Which term describes an organization with the aim of benefiting customers or employees?
• What term describes intangible activities that businesses can carry out for customers?
• Which financial statement shows assets and liabilities?
• What term describes a common market allowing free movement of goods, services, capital, and people within member states?
• Working capital is best described as what?
• Net/Gross profit margin equals Net Profit divided by Turnover × 100. Which option expresses this calculation correctly?
• Which source of finance comes from profits kept in the business rather than paid to shareholders?
• What is it called when a bank allows a business to withdraw more money than its balance?
• Which term describes the maximum stock a firm wants to hold?
• Which term describes a group that represents workers to negotiate over working conditions and pay?
• A person or business buying the franchise.
• Which liability protects owners so they are only liable up to the amount invested?
• Which term describes money invested by shareholders on the balance sheet?
• Which term refers to strategies to extend a product's life by changing it, such as renaming, rebranding, redesigning, or changing advertising?
• Which pricing concept involves charging different prices to different customers for the same product?
• If interest rates rise, borrowing tends to become more expensive and saving tends to increase. Which option correctly states this?
• Which role is responsible for supervising the work of other staff?
• Trade Credit terms usually require payment within which timeframes?
• An organization that represents workers to improve working conditions is called?
• Which term represents the level structure that shows who reports to whom in a business?
• Which stage involves assessing a candidate's suitability through interviews?
• Which term describes money coming into the business to cover day-to-day outgoings?
• Which term describes the number of people a manager is directly responsible for?
• Which term describes a legal contract outlining the partners' share in the business and how profits are distributed?
• Which term describes the strategy of making a product stand out from competitors due to distinctive features?
• Which approach is used to shape a company’s public image and relationships with customers?
• Which option is an internal source of finance that uses profits kept in the business?
• How can a firm grow from within without acquiring other firms?
• Which business sells products in bulk to other businesses?
• Which term refers to the contractual arrangement where one business grants another the rights to operate using its trading methods and branding?
• Which term measures the value of one currency against another?
• The study of behaviour in an economy, including government policy and international policy, is called?
• Which liability means shareholders are only responsible for the amount invested?
• Which term describes a strategy where a company buys into another firm at a later stage of production (downstream)?
• What term describes expanding by combining with firms in unrelated industries to spread risk?
• Which term describes a company with limited liability that can issue shares to family and friends if all workers agree?
• What is the term for the money needed to start and run a business?
• What describes a willingness to take risks and show initiative in order to establish new business ventures?
• Which term is used as a liquidity measure and equals current assets minus current liabilities?
• Which source of finance uses money saved by the business owner from personal funds?
• A feature which differentiates a product from competitors is called what?
• Which pay method rewards workers for each item produced?
• Which term refers to the group of 28 European countries that work together politically and economically?
• Which leadership style places full control with the leader and expects workers to obey?
• Which process involves negotiating terms between a union and employer to agree on conditions?
• Which term describes a business owned and run by private individuals?
• What term describes the portion of profits paid to shareholders?
• Which term describes deductions that are not required by law and are chosen by the employee?
• What term describes deductions that are legally required from payroll?
• A firm breaks even if it doesn't make any profit or loss?
• Which term is used for organisations that are government-owned and openly run?
• What is the overall pay amount before deductions?
• Which tax is charged on individuals' earnings?
• When a business makes its product unique from others, this strategy is known as what?
• An asset which can be used in the long term, e.g. A piece of machinery, is called?
• Which leadership style believes decision making can be improved when it is shared?
• Large businesses can afford to advertise in the mass media which reduces average cost per person.
• Which term describes developing strategies to satisfy customer needs and drive profitable growth?
• Organisations whose aims are to benefit customers or employees.
• Which organisations are owned and run by the government?
• Which of the following is NOT typically considered stock in inventory management?
• Which type of deductions are compulsory by law?
• Which term describes employees who are paid by the number of items produced?
• What is the correct formula for breakeven point in units?
• Which term describes pay when workers are paid a fixed amount each year?
• Money that the business has been invested in the business by shareholders.
• What term describes the eighteen countries who use the euro as their currency?
• What term describes money generated from selling goods or services?
• Which item is described as variable costs?
• Which term describes a person who starts a new venture and takes on the risks and rewards?
• Which term describes money generated from selling goods or services?
• Which term describes giving employees more freedom to decide how to carry out their work, often linked with greater autonomy?
• Which term refers to the total assortment of different products and lines that a company offers?
• Which type of company can sell shares in the stock exchange and has limited liability?
• If Gross Profit is 120,000 and Expenses are 60,000, Net Profit equals?
• A marketing arrangement allowing another business to trade in the same style as an existing business.
• What is the aim of public relations activities?
• Which term refers to costs that do not change with output?
• What is the path that products take from producers to consumers called?
• A payment made to the franchiser based on the sales turnover of the franchisee.
• Which source of finance is raised from outside the business?
• Which pricing approach involves charging a high price at launch to maximise profits on each item?
• Profit and Loss Account shows a business's profit or loss over a period of time (6-12 months).
• Market segmentation divides a market into groups based on characteristics such as gender, age and geography. Which of the following is an example basis for segmentation?
• Which term describes the non-varying cost that a business must pay regardless of output?
• Which growth strategy involves entering into unrelated industries to spread risk?
• What term refers to funds raised by selling ownership shares to investors?
• Which leadership style describes decision making that is shared among the team?
• The money directly generated from sales is Sales Revenue/Turnover.
• Gross profit - expenses =
• The time between placing the order and receiving it?
• Which pricing strategy involves selling a product at a loss to attract customers?
• Which term equals current assets minus current liabilities?
• Two businesses at the same stage of production merge to become one.
• What term describes expanding by purchasing distributors or retailers at a later stage of production?
• A short-term asset that can be converted to cash quickly.
• Which term describes gathering new information through fieldwork such as surveys and questionnaires?
• Which term describes advertising outside of the organization?
• Which term denotes the money that shareholders have invested in the business?
• Which business sells products directly to individual customers?
• Planned actions by a trade union to press for better conditions are known as?
• What does the SPICED mnemonic describe?
• The number of people directly managed by a supervisor is called what?
• Which term is used to describe money earned from selling goods or services?
• Which intermediary buys large quantities from producers to supply other businesses?
• Which organisations are owned by private individuals?
• Which term best describes many rules and regulations a firm faces when operating across borders?
• The phrase for the variety of product lines that a company produces or stocks is what?
• An individual who may employ other people but who owns and operates the business, they have unlimited liability.
• Which term describes the amount left after subtracting current liabilities from current assets?
• Closing balance is calculated by adding net cash flow to which value?
• Which economies arise from advertising and reaching a larger audience?
• Which tax is paid by both the employer and the employee?
• In recruitment, which stage involves selecting a smaller group of applicants to proceed to interviews?
• PAYE is a system used to collect which tax?
• Just In Time Production (JIT) is a system where materials are ordered to arrive just in time for production. Which option matches this description?
• Costs which do not vary according to output?
• A market with many competitors is described as which of the following?
• Which term describes advertising within the organization to current employees?
• Sleeping Partners invest in the business but do not have dealings in the day to day running of the enterprise.