Assessment test - Unit 4 Making a business effective

Which one of the following is not an element of the marketing mix?

• Product

• Price

• Production

• Place

Which one of the following has limited liability?

• Sole trader

• Partnership

• Private Limited Company

• Shareholder

Which one of the following is not a factor that influences business location?

• Proximity to market

• Proximity to materials

• The speed of the business website

• The ability to sell online

Which two of the following are advantages of starting up as a partnership?

• Limited Liability

• Shared responsibility

• More ideas

• Shared profit

• Possible disputes over decisions

One benefit to a business of operating as a franchise is:

• Access to an established brand and support

• Complete independence from any rules

• No need to share profits

• Guaranteed business success

One disadvantage to a business of being a sole trader is:

• Unlimited liability for business debts

• Ability to raise large amounts of capital easily

• Shared decision-making with partners

• Limited responsibility for business debts

One reason a business might have to adapt its marketing mix is:

• Changes in customer preferences

• Stable market conditions

• Consistent sales over time

• Lack of competition

A new business owner should write a business plan because:

• it helps set clear goals and strategies for the business.

• it guarantees immediate business success.

• it eliminates all risks involved in business.

• it is required by law for all businesses.

What is the main purpose of the table shown in the image?

• To list business expenses

• To describe assessment criteria for marking answers

• To provide a business plan template

• To show company profits

According to the table, which level demonstrates accurate knowledge and understanding of business concepts throughout, including appropriate use of business terminology?

• Level 1

• Level 2

• Level 3

• Level 0