GCSE Business Studies Unit 1: Introduction to Small Business Section 1: Spotting a Business

Opportunity

1) Which one of the following is an example of primary market research?

Select one answer:

A Government statistics.
B Newspaper articles.
C Survey of customers.
D Internet research.

2) Identify two possible disadvantages of operating a business as a

franchise.
Select two answers:

A The cost of the initial investment can be high.

B Franchises have to take out a patent.
C Franchises have to pay a higher rate of Value Added Tax (VAT).
D A lack of freedom for the owner in making decisions.
E It can access help and advice from the franchise owner.

Use the information from the Market Map below to answer questions 3-5
GCSE Business Studies Unit 1: Introduction to Small Business Section 1: Spotting a Business
Opportunity

3) According to the market map, where is there a gap in the market?

A business which provides:

Select one answer:

A High price/traditional.
B High price/fashion.
C Low price/traditional.
D Low price/fashion.

4) The market map opposite has four sectors, A, B, C and D.

To which part of the market map would Mark’s skills be most suited?

Select one answer:

AA
BB
CC
DD

5) Which two of the following are sources of added value for Mark’s
business?
Select two answers:

A Offering late-night opening appointments.

B Asking customers to complete a questionnaire after their appointment.
C Ensuring he manages cash flow effectively.
D Providing free refreshments and drinks for customers.
E Locating in an area where other hairdressers already operate.

6) Which one of the following is the definition of innovation?

Select one answer:

A Bringing a new idea to market

B Taking a calculated risk
C The process of thinking ahead
D Developing competitive advantage
GCSE Business Studies Unit 1: Introduction to Small Business Section 1: Spotting a Business
Opportunity

7) Which three of the following are examples of market segments for a

small sports
retailer?

Select three answers:

A Rival sports retailers in the same area
B Young members of local sports teams
C A questionnaire conducted with customers
D Individuals with interests in specialist sports
E Manager of a local netball team.
F An advertisement in a local newspaper

8) Some businesses produce goods whilst others produce services.

Which two of the following are examples of goods?

Select two answers:

A A bus journey
B Freshly-prepared sandwiches
C A newspaper
D Haircut
E Computer repairs

9) Gail uses the internet to gather other information. This approach is an

example of
which type of market research?

Select one answer.

A Focus group
B Primary research
C Secondary research
D Segmentation

10) Michael wants to add more value to the products he sells.

Which three of the following might be sources of added value for a business
such as
Stateside?

Select three answers.

A Total revenue less total costs of the business
B Only UK retailer selling official US baseball team kit
C Ensuring high quality products
GCSE Business Studies Unit 1: Introduction to Small Business Section 1: Spotting a Business
Opportunity

D Using more short-term sources of finance

E Creating a well-known brand name
F Operating as a private limited company

Use the information above to answer question 11 and 12

11) Which two of the following methods are most likely to give Sam
a competitive
advantage?

Select two answers.

A Providing high quality tuition.
B Operating as a sole trader.
C Providing a personalised service.
D Operating in a competitive market.
E Providing a service for the community.

12) Which two of the following would have been possible

advantages to Sam if he had
decided to buy into a franchise?

Select two answers.

A He would not have to pay any tax.
B He would have no stakeholders.
C Customer service would not be so important.
D A recognised brand name.
E Access to help and advice when running his business.

13) Businesses supply goods and services to consumers. Which of

the following is an
example of a service?

Select one answer:

GCSE Business Studies Unit 1: Introduction to Small Business Section 1: Spotting a Business
Opportunity

A A magazine
B An MP3 player
C A train journey
D A bottle of water

14) Which two of the following are possible disadvantages to an

individual starting up a new business as a franchise?

Select two answers:

A – The franchisor receives all the profits of the business

B – High initial start-up costs for the franchise

C – The franchisor provides ongoing support and guidance

D – A franchisee pays a higher rate of VAT than a sole trader

E – The franchisee has less flexibility to make business decisions

15) Which of the following is not a source of adding value for the
retailer when selling crisps to the consumer?

Select one answer:

A – The brand name of the crisps

B – A unique selling point of the crisps

C – Competitors crisp prices

D – The quality of the crisps

16) What is the purpose of a business? Select one answer.

A – To give everyone a job

B – To make big profits for owners

C – To produce goods and services

D – To pay taxes to the government

 GCSE Business Studies Unit 1: Introduction to Small Business Section 1: Spotting a Business
Opportunity

17) A part of a market that contains a group of buyers with similar

characteristics is called a market……..

A – Map

B – Segment

C – Gap

D – Resource

18) Mix and match the key term with the definition

Customer needs Information about opinions and attitudes

Market research Data that can be expressed as numbers

Focus group The wants and desires of buyers of a product

Qualitative data Group of people that answer questions and discuss about a product
Customer needs
Quantitative data Process of gaining information about customers through data

19) Mix and match the key term with the definition

Added value Business that agrees to manufacture a branded product under licence
by a franchisor
USP
Business that gives the franchisee the right to sell its product
Franchise
Increased worth that a business creates for a product
Franchisor
A characteristic of a product that makes it different from other similar
Franchisee products

The right given by one business to another to sell goods using its name
GCSE Business Studies Unit 1: Introduction to Small Business Section 1: Spotting a Business
Opportunity

20) Which one of the following is a type of primary research?

A – Conducting a survey
B – Analysing past sales figures of other businesses
C – Reading market reports
D – Consulting local newspapers

21) A market map is a visual means of showing

A – Where the business is located

B – The conclusion of a market survey

C – Where a product is positioned in the market

D – Market segments

22) What is a market?

A – Where buyers and sellers meet to exchange goods and services

B – The person who ultimately uses the product

C – A business which sells products

D – A business which buys a product

___________ Out of 40
GCSE Business Studies Unit 1: Introduction to Small Business Section 1: Spotting a Business
Opportunity