Growing the Business (Edexcel GCSE Business)

Topic Questions

11 mark

Which one of the following is an example of an internal source of finance?

Select one answer.

  • Loan capital

  • Selling assets

  • Share capital

  • Stock market flotation

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21 mark

Which one of the following is a barrier to international trade?

Select one answer.

  • Aesthetics

  • Ethics

  • Tariffs

  • Trade-offs

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31 mark

Read the following extract before answering.

State one drawback to Mind Candy of organic growth.

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42 marks

Which two of the following are methods of external growth for a business?

Select two answers.

  A. Improve promotion
  B. Innovation
  C. Merger
  D. Research and development
  E. Takeover

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51 mark

Read the following extract before answering.

Define the term pressure group.

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61 mark

Read the following extract before answering.

State one impact on Tesla of continuing to make a loss.

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72 marks

Read the following extract before answering.

Outline one advantage to ASOS of increasing the range of products offered for sale on its website.

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82 marks

Outline one way a business could implement a retrenchment strategy.

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91 mark

Which one of the following is an example of ethical business practice?

  • Responsible sourcing of raw materials

  • Employing workers from overseas

  • Operating unsustainably

  • Treating workers and suppliers unfairly

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101 mark

Fairstone Ltd changes the features and designs of its products in order to adapt to customer tastes, cultures and legal requirements in other countries.

What term describes this strategy?

  • Diversification

  • Globalisation

  • Branding

  • Market penetration

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111 mark

Which one of the following is an example of horizontal integration?

Select one answer.

  • A business merges with a larger competitor

  • A business takes over a key supplier

  • A business merges with one of its major customers

  • A business takes over a business in a different industry

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123 marks

Read the following extract before answering.

Outline one drawback to Tesla of a government introducing tariffs on imports from the US.

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19 marks

Read the following extract before answering.

In order to raise the £1.2 million of extra finance needed, Mind Candy considered two options:

Option 1: retained profit

Option 2: share capital.

Justify which one of these two options Mind Candy should choose.

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212 marks

Read the following extract before answering.

Evaluate the likely impact on Sainsbury’s of replacing Fairtrade with its own Fairly Traded scheme. You should use the information provided as well as your knowledge of business.

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39 marks

Read the following extract before answering.

In order to raise the finance for its new Chinese factory, Tesla is considering two options:

Option 1: share capital

Option 2: loan capital.

Justify which one of these two options Tesla should choose.

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13 marks

Explain one advantage to a business of improving its environmental sustainability.

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23 marks

Explain one impact on a business from increased globalisation.

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33 marks

Explain one impact that a pressure group can have on a business.

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46 marks

Read the following extract before answering.

Analyse the impact on Mind Candy of reducing the size of its workforce.

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6 marks

Discuss the impact on a business of becoming a public limited company (plc).

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63 marks

Explain one benefit to a business of merging with a supplier.

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73 marks

Explain one disadvantage to a business of financing growth through the issue of shares.

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86 marks

Read the following extract before answering.

Analyse the impact of supply chain issues on KFC's marketing mix

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93 marks

Explain one reason why governments establish barriers to trade.

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103 marks

Explain one benefit of international trade to a UK business.

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116 marks

Discuss the impact on a business of operating ethically.

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123 marks

Explain one way a business may change its products in order to successfully enter international markets.

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