GCSE Edexcel Business 1.1, 1.2 and 1.3

Why do new business ideas come about?

• Changes in government policies

• Changes in technology

• Changes in global trade

• Changes in population growth

Which of the following is a reason for a product becoming obsolete?

• Improved marketing

• Increased advertising

• Technological advancements

• Higher quality materials

What is an example of adapting an existing idea?

• Inventing a smartphone

• Adding a new feature to an existing phone

• Designing a completely new car

• Selling a traditional product in a new market

What is an original idea in business?

• Improving a competitor's product

• Creating a new product that has never existed before

• Advertising an existing product

• Reducing production costs

How do changes in consumer wants influence business?

• Businesses produce more of the same products

• Businesses innovate to meet customer demands

• Consumers stop buying products

• Government regulates business activity

What is a common financial risk for a business?

• Customer loyalty

• Profit maximization

• Lack of funds

• Better branding

What is an example of a reward for a successful business?

• Paying debts

• Gaining independence

• Struggling with competitors

• Losing market share

Which of these is a risk in starting a business?

• Profits

• Independence

• Business failure

• Customer loyalty

Which of the following is NOT a reward of starting a business?

• Financial security

• Business success

• Financial loss

• Independence

Why might someone start a business despite the risks?

• To avoid competition

• To gain independence and profit

• To increase financial losses

• To reduce consumer choice