IGCSE Edexcel Business Practice Test

These questions are part of the practice quiz. Start practicing

• Which term describes appointing workers from inside the business?
• Which type of segmentation groups customers by lifestyles?
• Which of the following is a benefit of training for employees?
• What is a potential negative consequence of online shopping related to customer service?
• A trade bloc is defined as?
• Which statement best describes the ownership pattern of multinationals?
• Which need is at the bottom of Maslow's hierarchy?
• Which of the following is NOT listed as an example of fringe benefits?
• One reason for product development is to replace outdated products.
• Which statement best describes distribution channels for consumer goods?
• Which of the following is NOT an advantage of newspaper and magazine promotion?
• Which statement is true about a private limited company?
• Which of the following is an example of written communication?
• For a labour-intensive manufacturing operation, which factor is most beneficial?
• Having a higher minimum wage can lead to more disposable income and greater consumer spending. This is most likely to increase which of the following?
• Which statement is NOT a reason to promote a product?
• In Maslow's hierarchy, which level covers relationships, love and belonging?
• In a franchise arrangement, who trades under the franchisor's name?
• Location (geographical) segmentation describes which?
• A public limited company can raise higher levels of capital by selling shares to the public.
• Which is a disadvantage of memorandums?
• Which types of e-tailing are listed?
• Which of the following is an example of above-the-line promotion?
• Which description matches a wholesaler?
• Which Boston Matrix category is high market share and low growth?
• Which is a purpose of market research?
• Which of the following is an example of a market segmentation approach?
• Which of the following is a feature of social enterprises?
• A product-oriented business focuses on what?
• Bonus payments are
• Which is a way to fulfil physiological needs?
• Privatization can involve which of the following actions?
• What best describes a sole trader?
• Which statement best describes off-the-job training?
• Which need is the highest in Maslow's hierarchy as described in the material?
• Which of the following is a disadvantage of forms?
• Secondary research is defined as
• A limitation of a piece rate system is that it
• On the job training involves which description?
• Which of the following is NOT a direct selling method?
• Which of the following is an advantage of posters and billboards?
• Privatization may occur as a result of which of the following?
• Which term describes dividing a large quantity into smaller quantities?
• Which statement describes an advantage of secondary data?
• Which option best describes the main purpose of a distribution channel?
• What is the term for the list of the most suitable people for a job, chosen from all applicants?
• A long chain of command can act as a barrier to communication by causing?
• Which statement best describes a feature of multinational companies?
• Which document lists personal details, qualifications, work experience and referees used by job seekers?
• Competition-based pricing uses competitors' pricing for the same or similar product as the basis in setting a price.
• Strong brand and image can allow a firm to raise prices.
• Which packaging factor relates to environmental concerns?
• Which retailer type is typically a large store offering a wide range of goods under one roof and often with promotions?
• Which is an advantage of noticeboards in business communication?
• Market analysis is
• Vegetable farming requires which type of land?
• Which of the following describes a driver for responding to market changes?
• Brownfield site is defined as?
• Which document used by a job seeker lists personal details, qualifications, work experience, referees and other details?
• A niche market is best described as?
• Which medium allows the audience to refer back to the message later?
• Which of the following is a disadvantage of a partnership?
• Predatory pricing involves setting a low price with the aim of driving rivals out of the market.
• A strong brand image can allow a company to do which of the following?
• Which promotional technique is commonly used to build brand awareness?
• Which statement best describes primary data?
• What does limited liability mean for a business owner?
• Horizontal communication is the exchange of information between which parties?
• What is sold in mass markets?
• Which of the following is a core marketing activity?
• Which barrier arises from cross-cultural differences including language?
• Which of these is an example of formal communication within a business?
• Which of the following is an advantage of a partnership?
• Which item is included in below-the-line promotion?“
• Wholesalers supply to retailers through which pairing?
• Which promotional approach can include temporary price reductions to encourage purchases?
• Jargon in business communication can cause what problem?
• Which of the following is a factor affecting price?
• Which of the following describes a social enterprise?
• A business with high employee motivation may attract more applicants due to a good workplace reputation. Which statement best supports this?
• Which statement best describes esteem needs in the context of motivational theory?
• Which extension strategy aims to find new markets for a product?
• Which is a disadvantage of a sole trader related to business continuity?
• Which stage is associated with sales leveling off, profits being made, and some businesses leaving the market?
• What is the advantage of internet-based businesses regarding premises?
• Which statement about salary is true?
• Which statement best describes a limited partnership?
• Which statement about limited companies is true?
• Which extension strategy is used to encourage more frequent use of a product?
• Which statement correctly describes a public corporation?
• In the past, businesses tended to be
• A questionnaire sent by mail with printed questions is known as a
• Which level in Maslow's hierarchy is associated with self-fulfillment and achieving one's potential?
• What does the product life cycle describe?
• Which of the following is considered below-the-line promotion?
• Which of the following is NOT a source of secondary data?
• What describes a market-oriented business approach?
• Skimming pricing involves setting a high price initially and then lowering it later.
• Which of the following is a commonly cited reason against public ownership?
• Which of the following is NOT a typical mass-market product category?
• A motivated workforce is typically easier for a business to do which of the following?
• Which distribution action is commonly associated with marketing?
• Which promotional method involves giving away trials of a product?
• What is mentoring in the workplace?
• Commission is
• Which of the following is NOT a type of on-the-job training?
• Which statement correctly describes Herzberg's two-factor theory?
• Which act makes it unlawful for a business to discriminate on the grounds of disability?
• What is a limitation of geographic and demographic segmentation that leads to lifestyle segmentation?
• Internal communication refers to communication occurring where?
• External recruitment can bring into the organisation what?
• Taylor's Theory of Scientific Management proposes what main idea?
• A sample must be representative of all the people in the market.
• Which step involves advertising the job using appropriate media?
• Branding can help to create customer loyalty.
• Legal controls over employment are laws that do what?
• Piece rate is
• Which facility is associated with service businesses to help avoid parking problems and improve accessibility?
• Induction training involves which of the following?
• Which of the following is listed as a recommended action for workers?
• Which document shows clearly the tasks, duties and responsibilities expected of a worker for a particular job?
• Which statement is NOT listed as an advantage of using social media for market research?
• Salary is
• If data is out of date or inaccurate, decisions based on the data are likely to be unsound.
• Which pricing method is used to start with a low price to gain market share, with potential price increases later?
• In internet-based location decisions, which factor becomes increasingly important?
• Which of the following is considered a hygiene factor in Herzberg's theory?
• In online communication, which risk relates to unauthorized access to information?
• Which statement is NOT an advantage of posters and billboards promotion?
• Internal recruitment can have the advantage of which of the following?
• What is a way to fulfil love and belonging needs?
• Downward communication is best described as which of the following?
• Sex Discrimination Act 1975 requires what?
• Producing a product customers are prepared to buy.
• Which stage follows shortlisting in the recruitment process?
• What term describes dividing a market into smaller groups with similar characteristics?
• Cost-plus pricing is defined as adding a standard markup to the cost of the product.
• Which item is a PR approach commonly used for publicity?
• Which of the following is an advantage of external recruitment?
• Training is defined as which of the following?
• Which of the following is listed as a limitation related to employees leaving after training?
• Which statement about bonus payments is true?
• Which stage is characterized by sales starting to level off after rapid growth?
• Which description defines a distribution channel?
• Which statement describes a risk of on-the-job training?
• In Herzberg's hygiene factors, which is considered a hygiene factor?
• Overtime refers to
• Which segmentation approach targets nearly all consumers?
• Consumer panels involve feedback over time from which group?
• Why is downward communication important in a business?
• Which retailer type is typically very large and stocks a wide range of products at low prices?
• Which of the following is a method of market segmentation?
• Interviewing is defined as:
• Which of the following is NOT a technology-based promotion method?
• Performance related pay is
• Which statement best describes privatization?
• Which type of business can raise capital by selling shares?
• If many employees work in offices, what type of facilities should a location provide?
• Which is an example of using technology in promotion?
• What best defines fringe benefits?
• Which statement describes a retailer?
• What is the first stage of the recruitment process described?
• Which of the following is a limitation of training?
• What documents are essential before forming a company?
• Which of the following is a purpose of branding?
• Why does privatization take place?
• External recruitment is the process of:
• Lack of clarity in a message can lead to what outcome?
• Which statement is true about internal communication?
• A good questionnaire should be
• A strong brand image can lead to which outcome?
• Which statement is true about internet promotion?
• What is the relationship between motivation and labour productivity?
• Which statement indicates measurement of internet promotion impact?
• Which stage occurs when customer needs change and the product is withdrawn from the market?
• Equal opportunities policies aim to prevent discrimination on grounds such as which of the following?
• In which stage are sales zero and costs high, potentially harming cash flow?
• Branding helps with recognition.
• What are the methods used to extend the life of a product called?
• Which scenario best describes a desire to be creative and challenged, as per the self-actualisation concept?
• Reliability in market research depends on the number of people questioned and whether they represent everyone.
• What term describes giving workers the authority to make choices about how they work?
• Which would fulfil self-actualisation needs?
• Which stage involves creating a list of the most suitable candidates chosen from those considered?
• Which market would include the sale of housing?
• Which statement best describes promotional pricing?
• Which of the following is an advantage of internal recruitment?
• Informal communication uses which type of channels?
• Which of the following describes how a business might respond to changes in the market?
• Consumer panels are groups of customers asked for feedback about products over a period of time. Which option best describes this concept?
• What is a disadvantage of a private limited company?
• In Herzberg's two-factor theory, which factors are associated with job satisfaction?
• Which of the following is a disadvantage of off-the-job training?
• A sample is defined as
• Which of the following best defines market research?
• After documents are accepted, which document allows the company to trade as a limited company?
• Branding helps to develop an image.
• Which is an advantage of memorandums?
• In the present, many businesses are
• In response to competition, a business might:
• Which of the following is NOT an example of electronic communication?
• Downward communication moves information from which level to which?
• Which of the following is NOT a primary research method?
• Which statement best reflects one benefit of upward communication?
• Why do governments set minimum wages?
• Which option is a PR approach commonly used to gain publicity?
• An apprenticeship is defined as which?
• What is an agent or broker?
• Which statement about a public corporation is correct?
• What is a Deed of Partnership?
• Which of the following is a disadvantage of off-the-job training?
• Why can going public be expensive?
• Which statement about electronic communication is true?
• Which of the following is a disadvantage of forms?
• Which of the following is NOT a demographic segmentation factor?
• Which of the following is a time-related limitation of training?
• Qualitative data is defined as
• A product with low growth and low market share is called a dog.
• Qualitative data is best described as information that is
• Which of the following is an advantage of cinema promotion?
• What does the certificate of incorporation allow a new company to do?
• Which of the following is a disadvantage to the franchisee?
• What is a primary purpose of branding?
• Which of the following is an example of a fringe benefit?
• What is the document that shows tasks, duties and responsibilities for a job?
• Which is a disadvantage of using noticeboards for internal communication?
• Which step comes last in the recruitment process described?
• Which pricing method would you use if you set prices in line with close rivals for similar products?
• Which of the following is a PR approach?
• Which of the following is part of marketing?
• Which medium is particularly suited for demonstrating how a product works?
• Which of the following is a value-added service retailers may provide?
• Which statement about newspaper and magazine promotion is true?
• A market research sample should be representative of all the people in the market. Which option best reflects this requirement?
• Net pay is
• Why is monitoring competition important for a business?
• Which of the following is a disadvantage of letters?
• During the development stage, which statement is true?
• Which promotional tactic can be tailored to different market segments?
• Which retailer type is typically a small, independently owned shop with a limited range?
• Remuneration refers to what?
• Which of the following is a benefit of market segmentation?
• Private limited company shares cannot be bought by the general public.
• Which pricing method involves setting a high price at launch and lowering it later?
• Time rate is defined as what?
• Which of the following are methods of market segmentation?
• Which of the following is an advantage of on-the-job training?
• Which item is included in below-the-line promotion?
• Which document provides a personal profile of the type of person needed to do a particular job?
• Are limited companies incorporated or unincorporated?
• A limitation of performance related pay is that
• Which statement about reports is correct?
• Which of the following is a common barrier to effective business communication?
• What is the primary aim of marketing?
• Which of the following is not a feature of social enterprises?
• What is job rotation?
• In which stage do sales begin to grow and revenue rises, often with a steep growth curve?
• Mass markets are
• Which of the following is an advantage of a sole trader?
• What is market share?
• Which law makes it illegal to practise racial discrimination in education, employment, and housing?
• What can poor motivation lead to in a business?
• A product with high growth but low market share is categorized as a question mark.
• Which of the following is a feature of limited companies?
• Which distribution method is typically associated with operating from small stalls in markets and on street corners?
• What is a loss leader?
• Which of the following is an advantage of a private limited company?
• Which statement best defines a franchise?
• Market segmentation helps a business to
• Which of the following is an example of written communication?
• Branding can help to create which of the following outcomes?
• Which statement about fringe benefits is true?
• What is a key implication of internet-based businesses regarding premises?
• Which of the following is not listed as a key retailer service?
• Which statement about induction training is true?
• Which term refers to the group of most suitable candidates for a job?
• An apprenticeship is defined as which of the following?
• Induction training is best described as training given to new employees when they first start a job. Which option correctly names this type of training?
• Which is a benefit to businesses of online distribution?
• A multinational company is defined as a large business with significant production or service operations in at least two different countries.
• Which of the following is NOT an advantage of using social media for market research?
• In product development, which stage comes after Development?
• Locating within a trade bloc can help a business because it avoids trade barriers when selling to which group?
• Which statement is a benefit to online retailers regarding payments?
• What does unlimited liability mean for a sole trader?
• Which of the following is a common reason for public ownership of a business?
• If turnover is high, what is likely to happen in a business?
• Where is an oil refinery typically located?
• For service businesses, traffic congestion leads to delays; what is a recommended response?
• Which statement best defines self-actualisation?
• Which step involves evaluating applicants and selecting a shortlist for an interview?
• Which of the following is NOT an advantage of face-to-face communication?
• Face-to-face communication is best described as
• How is motivation defined in business contexts?
• What is Public Relations?
• Branding can create customer loyalty.
• In a partnership, which is a financial advantage?
• Above-the-line promotion includes which of the following?
• Which of the following is a feature of limited companies?
• What term describes the levels of sales a product experiences over time?
• Which of the following is a disadvantage of television promotion?
• Market share formula
• Market-oriented firms place importance on?
• On the job training is best described as training that takes place where?
• Which is another consumer benefit of online distribution?
• Well-motivated workers are more likely to cooperate, leading to what outcome in the team?
• Formal communication is defined as the use of which channels?
• What is a risk when technology used for communication fails?
• Which of the following is a listed benefit of minimum wage to businesses?
• Which statement is NOT an advantage of a private limited company?
• What is the term for the range of products a business is currently marketing?
• Which action helps build customer relationships?
• Which of the following is a benefit of training?
• Which segmentation is used to target a fine dining restaurant that's interested in sophisticated menus and fine wines?
• Which of the following best describes a distributor's function in a consumer goods channel?
• Product Life Cycle: Which stage comes after Introduction?
• Which option is listed as part of what workers should do?
• What is the minimum number of members required to form a limited company?
• What is the main goal of penetration pricing in its initial stage?
• Which statement best describes a disadvantage of television promotion?
• Which of the following is an example of using technology in promotion?
• Which statement is true about market analysis?
• Which statement is NOT a typical tool governments use to influence location decisions?
• When a company goes public, which document must be prepared for investors?
• Which of the following is a method of external recruitment?
• Promotion is
• What is the primary purpose of induction training?
• The Equal Pay Act 1970 states what?
• Which is NOT an aspect of market analysis?
• Commodity markets are for what type of goods?
• Which form of business is typically associated with more owners and the ability to raise more capital?
• Which of the following is NOT a typical feature of a public corporation?
• What is a way to fulfil safety and security needs?
• Which of the following is typically considered below-the-line promotion?
• Which is an advantage of a sole trader?
• Which is an advantage of a public limited company over a private limited company?
• What term describes the use of electronic systems to sell goods and services?
• Which of the following is a type of social enterprise?
• Which extension strategy involves modifying the product to refresh its appeal?
• Which extension strategy relates to changing appearance or packaging to attract buyers?
• Which of the following is a disadvantage of cinema promotion?
• Which of the following is a disadvantage of online communication?
• Job enrichment is defined as making jobs more challenging and interesting by expanding the range of skills required. Which option best describes this?
• What is privatization?
• What is the final step in the recruitment process described?
• Which of the following is not typically provided as a retailer service?
• During which stage do sales start to level off and firms may use extension strategies to sustain profits?
• Branding improves recognition by ensuring consumers remember the product.
• Which action is part of a good marketing strategy for a product?
• Which of the following is an advantage of off-the-job training?
• Geographic segmentation mainly considers which factor?
• Which of the following is a disadvantage of a public limited company?
• Which is a consumer benefit of online distribution?
• Which statement about memorandums is correct?
• Which is a likely result of ineffective internal communication?
• Which of the following is a disadvantage of secondary data?
• Which of the following is a characteristic of a good questionnaire?
• Quantitative data refers to
• Which statement describes a public limited company?
• Which statement best describes a disadvantage of internet promotion?
• Which scenario best illustrates informal communication?
• Which is a disadvantage of e-tailing?
• Which of the following is NOT an advantage to the franchisor?
• Niche markets are
• Which stage is most associated with profits being earned as growth slows and competition increases?
• Which of the following is a disadvantage of face-to-face communication?
• What is upward communication?
• Why is ethnic origin used as segmentation?
• Which of the following is an advantage of television promotion?
• Using the wrong medium is a barrier to communication. Which option describes this barrier?
• Which of the following is an advantage of letters?
• What is the minimum wage?
• Which statement is true about sole traders?
• Who is typically responsible for employing staff within a business?
• Which is an advantage of a public limited company in terms of market presence?
• Shortlisting is the process of sifting through applications to identify suitable candidates for a job.
• Gross pay is
• Poor communication skills can be indicated by which of the following?
• A product with low growth but high market share is called a cash cow.
• Which of the following is a type of social enterprise?
• External communication involves which of the following?
• Direct applicants are best described as which of the following?
• A partnership is defined as a business owned by how many people?
• Which level of Maslow's hierarchy includes basic needs such as food and shelter?
• Which statement best describes marketing?
• What does the term product portfolio describe?
• Which of the following is an advantage of reports?
• During which stage might a firm use pricing strategies such as penetration pricing or skimming?
• Market research helps to identify gaps in the market.
• Which factor is NOT a listed method of segmentation?
• What is a Greenfield site in business terms?
• Primary research is defined as which of the following?
• Which pay system ties earnings to the value of sales?
• Retailers typically source their goods from which option?
• Which of the following is a disadvantage of a sole trader?
• In the Boston Matrix, a product with high growth and high market share is called a star.
• Which type of questionnaire method involves collecting data by talking to respondents over the phone?
• Equal opportunities typically include which areas?
• Which of the following is NOT an advantage to the franchisee?
• Which of the following is a stated reason for privatization?
• Which statement best defines market segmentation?
• Which statement best defines a market?
• Which of the following is a source of secondary data?
• Which factor is listed as important when choosing distribution channels?
• Which of the following is an aspect of market analysis?
• What fulfils esteem needs?
• Which of the following is NOT listed as a proximity-related factor influencing location decisions?
• Why might customer needs differ by geography?
• A benefit of a piece rate system is that it
• Which of the following is NOT part of below-the-line promotion?
• Which of the following is typically considered a fringe benefit?
• Which is the correct order of stages in product development?
• Which of the following is a disadvantage of on-the-job training?
• Dairy farmers require which type of land?
• Which option best defines an intermediary?
• Which packaging aspect describes ease of handling and opening?
• Cinema promotion can be used to target which group?