Take this Quiz: GCSE Business: Business in the Wider World | Zestly

Question 1

A local shop owner proposes opening on Sundays to increase revenue. Which of the following best describes the conflict of interest between stakeholders?

Accepted Answer

The owner may gain higher revenue, but staff may lose leisure time and customers might face higher prices to cover extra staffing costs.

Answer

The owner loses potential revenue, while staff gain more free time and customers benefit from lower prices.

Answer

The owner and staff both lose money, while customers gain from the convenience of shopping on a seventh day.

Answer

The owner gains profit, while customers and staff both benefit from the increased convenience and extra hours.

Question 2

A business has a loan of twenty thousand pounds. The interest rate rises from five per cent a year to eight per cent a year. What is the increase in the annual interest cost?

Accepted Answer

Six hundred pounds

Answer

One thousand six hundred pounds

Answer

Two thousand six hundred pounds

Answer

One thousand pounds

Question 3

A clothing manufacturer buys all its fabric from abroad. The value of the pound falls significantly against the currency used by its suppliers. What is the most likely impact on the business?

Accepted Answer

The business will face higher costs for materials and must decide whether to absorb these or raise prices for customers.

Answer

The business will automatically increase its profits because it can charge higher prices to local customers.

Answer

The business is unaffected because it only sells its finished clothes to customers within the country.

Answer

The business will see its costs fall because the pound is now worth less, making imports cheaper.

Question 4

Household incomes fall across the country. One invented retailer sells expensive optional items such as jewellery; another sells everyday groceries. Which of the two is more exposed, and why?

Answer

Neither is affected, since a fall in incomes changes what people buy rather than how much they spend altogether.

Answer

The grocery retailer, because food takes a larger share of a small household budget and so is the first thing cut.

Answer

Both are affected equally, since a fall in incomes reduces spending on everything in the same proportion.

Answer

The jewellery retailer, because a purchase that can be postponed usually is when money is short, while people go on buying food whatever happens to their income.

Question 5

A customer buys a kettle that stops working after two weeks. The shop manager claims they cannot help because the customer did not buy an extended warranty. Why is the manager incorrect?

Answer

The manager is wrong because the customer is always entitled to a full refund regardless of the reason for the return.

Answer

The manager is wrong because the shop must provide a replacement even if the customer broke the item themselves.

Answer

The manager is wrong because goods must be of satisfactory quality, fit for purpose, and as described by law.

Answer

The manager is wrong because the shop is legally required to offer a free repair for any item that lasts less than a year.