Business GCSE EDEXCEL

One drawback to a business if a tariff is placed on the raw materials it imports is:

• Increased production costs

• Improved product quality

• Decreased market competition

• Enhanced customer satisfaction

One benefit to a business from exporting its products is:

• Increased market reach

• Higher production costs

• Decreased brand visibility

• Reduced customer base

One benefit to a business of using loan capital as a source of finance is:

• It provides tax benefits.

• It dilutes ownership.

• It requires no repayment.

• It increases operational risk.

Explain one drawback to a business of using batch production.

• Increased storage costs due to large quantities of products being produced at once.

• Higher labor costs due to the need for skilled workers.

• Increased risk of product defects due to continuous production.

• Limited flexibility in product design and customization.

One impact improved technology may have on a business is:

• Increased operational efficiency

• Decreased customer satisfaction

• Higher employee turnover

• Reduced market share

One reason why an entrepreneur would produce a business plan is to:

• attract investors

• increase product prices

• reduce employee salaries

• expand office space

One possible conflict that can exist between stakeholders of a business is:

• disagreement over profit distribution

• different working hours

• location of the business

• choice of business logo

One possible objective of employees within a business is:

• Achieving personal growth

• Increasing company profits

• Improving customer satisfaction

• All of the above

One advantage to a business of providing ongoing training to its employees is:

• Increased employee turnover

• Higher operational costs

• Improved employee skills and productivity

• Decreased employee satisfaction

One drawback to a business of not being able to retain its employees is:

• Increased training costs for new employees

• Improved employee morale

• Decreased customer satisfaction

• Higher employee retention rates