gcse business studies ocr paper 1

Question 1

What does OCR stand for in GCSE Business Studies?

Answer 1

Oxford Cambridge and RSA Examinations

Question 2

What is the purpose of a business plan?

Answer 2

To outline the goals, strategies, and financial forecasts of a business.

Question 3

True or False: A sole trader has limited liability.

Answer 3

False

Question 4

What are the four main factors of production?

Answer 4

Land, labor, capital, and enterprise.

Question 5

Fill in the blank: The __________ is the amount of money a business makes after all costs have been deducted.

Answer 5

profit

Question 6

What is market segmentation?

Answer 6

The process of dividing a market into distinct groups of buyers.

Question 7

Which type of business ownership has shareholders?

Answer 7

Limited company

Question 8

What is the formula for calculating profit?

Answer 8

Profit = Total Revenue - Total Costs

Question 9

True or False: A business with high market share is usually more competitive.

Answer 9

True

Question 10

What does ‘cash flow’ refer to?

Answer 10

The total amount of money being transferred in and out of a business.

Question 11

What is a variable cost?

Answer 11

A cost that changes with the level of output.

Question 12

Name one advantage of being a sole trader.

Answer 12

Complete control over the business.

Question 13

What is ‘market research’?

Answer 13

The process of gathering, analyzing, and interpreting information about a market.

Question 14

Fill in the blank: __________ is the price at which the quantity demanded equals the quantity supplied.

Answer 14

Equilibrium price

Question 15

What does SWOT stand for?

Answer 15

Strengths, Weaknesses, Opportunities, Threats

Question 16

What is the main goal of marketing?

Answer 16

To identify and satisfy customer needs.

Question 17

True or False: A franchise allows a business to operate under a recognized brand.

Answer 17

True

Question 18

What is a target market?

Answer 18

A specific group of consumers at which a business aims its products.

Question 19

What does ‘break-even’ mean?

Answer 19

The point at which total revenue equals total costs, resulting in no profit or loss.

Question 20

What is the role of an entrepreneur?

Answer 20

To create and run a new business venture.

Question 21

Fill in the blank: __________ is a legal document that outlines the rights and responsibilities of a business.

Answer 21

Contract

Question 22

What is the purpose of advertising?

Answer 22

To promote products or services to increase sales.

Question 23

What does ‘economies of scale’ refer to?

Answer 23

Cost advantages that a business obtains due to the scale of operation.

Question 24

True or False: All businesses aim to maximize profit.

Answer 24

False

Question 25

What is a business's 'mission statement'?

Answer 25

A brief description of a company's fundamental purpose.

Question 26

What is the difference between 'goods' and 'services'?

Answer 26

'Goods' are tangible products, while 'services' are intangible activities.

Question 27

What is a 'competitive advantage'?

Answer 27

An attribute that allows a company to outperform its competitors.

Question 28

Fill in the blank: __________ is the process of developing a unique product or service to meet customer needs.

Answer 28

Product differentiation

Question 29

What is the role of a manager?

Answer 29

To plan, organize, lead, and control resources to achieve organizational goals.

Question 30

True or False: Limited liability means that owners are personally responsible for business debts.

Answer 30

False

Question 31

What are fixed costs?

Answer 31

Costs that do not change with the level of production.

Question 32

What is the purpose of financial accounting?

Answer 32

To provide financial information to external users.

Question 33

What is a 'business objective'?

Answer 33

A specific result that a business aims to achieve in a given timeframe.

Question 34

What is 'branding'?

Answer 34

Creating a unique name and image for a product in the consumer's mind.

Question 35

What is meant by 'business ethics'?

Answer 35

Moral principles that guide the way a business behaves.

Question 36

Fill in the blank: __________ is the process of monitoring and evaluating employee performance.

Answer 36

Appraisal

Question 37

What is 'e-commerce'?

Answer 37

Buying and selling goods or services over the internet.

Question 38

True or False: The primary role of a bank is to lend money to businesses.

Answer 38

True

Question 39

What is 'customer service'?

Answer 39

The assistance and advice provided by a company to those who buy or use its products.

Question 40

What is a 'stakeholder'?

Answer 40

Any individual or group that has an interest in the success of a business.

Question 41

What is 'supply and demand'?

Answer 41

The relationship between the quantity of a product available and the desire for that product.

Question 42

Fill in the blank: __________ is the strategy of increasing market share by reducing prices.

Answer 42

Price competition

Question 43

What is a 'limited company'?

Answer 43

A business structure where the owners have limited liability.

Question 44

What is 'corporate social responsibility'?

Answer 44

A business model that helps a company be socially accountable.

Question 45

What does 'gross profit' represent?

Answer 45

Revenue minus the cost of goods sold.

Question 46

True or False: A business can have both private and public limited company status.

Answer 46

False

Question 47

What is market equilibrium?

Answer 47

The point where supply equals demand.

Question 48

What is a 'niche market'?

Answer 48

A specific, focused segment of a larger market.

Question 49

What is the role of the government in business?

Answer 49

To regulate and support businesses to ensure a stable economy.

Question 50

Fill in the blank: __________ is the amount of money a business needs to operate on a daily basis.

Answer 50

Working capital

Question 51

What is 'market share'?

Answer 51

The portion of a market controlled by a particular company or product.

Question 52

What is the difference between 'primary' and 'secondary' research?

Answer 52

Primary research involves collecting new data, while secondary research analyzes existing data.

Question 53

True or False: A business's target market can change over time.

Answer 53

True

Question 54

What is 'retail'?

Answer 54

The sale of goods to the public in relatively small quantities.

Question 55

What does 'B2B' stand for?

Answer 55

Business to Business

Question 56

What is 'market penetration'?

Answer 56

A strategy to increase market share by increasing sales of existing products.

Question 57

Fill in the blank: __________ is the process of analyzing a business's financial statements.

Answer 57

Financial analysis

Question 58

What is a 'business cycle'?

Answer 58

The fluctuations in economic activity that an economy experiences over time.

Question 59

What is 'human resources'?

Answer 59

The department responsible for managing employee relations and workforce planning.

Question 60

True or False: A good marketing strategy is essential for business success.

Answer 60

True

Question 61

What is 'social media marketing'?

Answer 61

Using social media platforms to promote products and services.

Question 62

What is meant by 'business growth'?

Answer 62

The increase in size, revenue, or market share of a business.

Question 63

Fill in the blank: __________ is the practice of managing a business's resources efficiently and effectively.

Answer 63

Operations management

Question 64

What is 'financial forecasting'?

Answer 64

The process of estimating future financial outcomes based on historical data.

Question 65

What is 'price elasticity of demand'?

Answer 65

A measure of how much the quantity demanded of a good responds to a change in price.

Question 66

True or False: A high level of customer satisfaction can lead to repeat business.

Answer 66

True

Question 67

What is a 'business merger'?

Answer 67

The combination of two companies to form a new entity.

Question 68

What is 'diversification' in business?

Answer 68

The strategy of entering into new markets or introducing new products.

Question 69

Fill in the blank: __________ is a method of promotion that encourages potential customers to buy a product.

Answer 69

Sales promotion

Question 70

What is 'corporate governance'?

Answer 70

The system of rules and practices that direct and control a company.

Question 71

What is a 'business incubator'?

Answer 71

An organization designed to help new businesses develop by providing services such as management training.

Question 72

True or False: All businesses need a marketing strategy.

Answer 72

True

Question 73

What is 'profit margin'?

Answer 73

A profitability ratio calculated as net income divided by revenue.

Question 74

What is a 'supply chain'?

Answer 74

The entire system of production, processing, and distribution of goods.

Question 75

Fill in the blank: __________ is the practice of promoting a product through various media channels.

Answer 75

Advertising

Question 76

What is 'customer loyalty'?

Answer 76

The tendency of customers to continue buying from a particular brand.

Question 77

What is 'business ethics'?

Answer 77

The study of proper business policies and practices regarding potentially controversial issues.

Question 78

True or False: An entrepreneur is someone who takes on the risk of starting a new business.

Answer 78

True

Question 79

What is a 'business opportunity'?

Answer 79

A situation that presents itself to an entrepreneur that they can exploit to achieve profit.

Question 80

What is 'financial literacy'?

Answer 80

The ability to understand and effectively use various financial skills.

Question 81

What does 'B2C' stand for?

Answer 81

Business to Consumer

Question 82

Fill in the blank: __________ is the process of creating and maintaining a fit between the organization’s objectives and capabilities.

Answer 82

Strategic planning

Question 83

What is 'lean management'?

Answer 83

An approach to running an organization that supports the concept of continuous improvement.