GCSEBusinessEdexcelExam Questions1. Investigating Small Business1.1 Enterprise & Entrepreneurship

Enterprise & Entrepreneurship (Edexcel GCSE Business): Exam Questions

Exam code: 1BS0

2 hours38 questions
Easy
Medium
Hard
1
2 marks

Case Study

Last Course Patisserie Ltd is a small private limited company based in Devon which produces hand-made desserts and puddings. The business was established in 1986. Its owners previously worked in the food industry but felt they could offer better value for money to customers. All of the desserts are made fresh to order which has provided Last Course Patisserie with a reputation for being flexible when meeting customer needs.

Getting the best ingredients for the desserts is a vital part of the business. Last Course Patisserie found excellent suppliers of free range eggs and dairy products close to its business location. This means all ingredients could be delivered quickly when needed.

Last Course Patisserie has recently employed a new head chef from Switzerland who has introduced a new range of products to the menu. This has proved to be very popular with customers and the business now struggles to keep up with demand. Last Course Patisserie is receiving increased orders for desserts but, due to the size of its business premises, struggles to meet this increase in demand. The owners have decided that it is the right time for Last Course Patisserie to expand and possibly relocate to new premises.

Outline one risk taken by the owners when starting Last Course Patisserie.

How did you do?

2
1 mark

Which one of the following is an example of a reward from business activity?

Select one answer.

  • Financial loss

  • Increased overheads

  • Independence

  • Lack of security

Choose your answer

3
1 mark

Which one of the following is a type of technology that could be used by a business?

Select one answer.

  • Consumer law

  • Crowd funding

  • Digital communication

  • Marketing mix

  • Pricing strategy

Choose your answer

4
1 mark

State one role of an entrepreneur.

How did you do?

5
1 mark

Mel is a sole trader selling candles made from natural ingredients.

Which one of the following is an example of a risk for Mel's business?

  • Mel has forecast that demand will rise over the next year

  • Mel has calculated a negative cash flow for June

  • Mel is anticipating that the cost of wax will fall next year

  • Mel has estimated that she will need to work an extra 15 hours per week to meet demand for her products

Choose your answer

6
2 marks

Outline one way a hairdressing business might add value to its service.

How did you do?

7
2 marks

Outline one reason why a product or service may become obsolete.

How did you do?

8
1 mark

State one way a fast food business can meet customer needs.

How did you do?

9
1 mark

Which one of the following is not a method of adding value?

  • Product branding

  • Reducing prices

  • Differentiating the product

  • Providing high quality customer service

Choose your answer

10
1 mark

State one purpose of business activity.

How did you do?

11
2 marks

Outline one reason why a business may adapt an existing product.

How did you do?

12
1 mark

Which one of the following would be an example of adapting a product for a bakery?

Select one answer.

  • Advertising a product

  • Increasing portion sizes

  • Changing the price of its sandwich range

  • Training staff to serve customers more quickly

Choose your answer

13
1 mark

Which one of the following could help a business add value?

  • Reducing quality

  • Using strong branding

  • Paying higher interest

  • Increasing taxation

Choose your answer

14
2 marks

Case Study

Sarah is the sole owner of a sandwich shop located in a busy town centre. The shop opened two years ago and employs two part-time staff members who help prepare food and serve customers. The shop sells freshly made sandwiches, soups and hot drinks, which are prepared on site each day.

The business attracts office workers, students and shoppers. Sarah prides herself on the freshness and quality of her products, which are made to order. Her prices are slightly higher than pre-packaged sandwiches sold in supermarkets.

Recently, a large supermarket chain opened nearby, selling cheaper sandwiches. Since then, Sarah has noticed her sales have started to fall. In March, Sarah’s revenue was £8,000, but in April this dropped by 15%. Her costs, however, have stayed the same at £6,200 per month.

Sarah is considering ways to respond. One option is to lower her prices to match the supermarket. Another option is to emphasise freshness, quality and customer service to encourage loyalty. She is also looking at launching online orders with local delivery to reach more customers and boost sales.

Outline one risk Sarah faced when starting her business.

How did you do?

15
1 mark

Which one of the following is an example of a service?

  • Birthday cake

  • Fitness equipment

  • Mobile phone

  • Newspaper

  • Train journey

Choose your answer

16
1 mark

Which one of the following is a role of an entrepreneur?

  • Going to university

  • Completing the business accounts

  • Personal satisfaction

  • Taking risks

  • To be a sole trader

Choose your answer

17
1 mark

Which one of the following could a small business use to add value?

  • Locate in a convenient place

  • Pay a higher rate of taxation

  • Reduce its cash inflows

  • Use a long-term source of finance

Choose your answer

18
1 mark

Case Study

Ripple is an energy company aimed at providing green and renewable energy to homes and businesses across the UK. It is the country’s first consumer-owned wind farm, generating green energy that does not have a damaging effect on the environment.

Instead of customers paying Ripple to supply them with energy, they become members of the business and buy a part of a wind farm located in a remote area of South Wales. Customers are then supplied with energy to their homes based on the amount of money they invested. The amount of money that customers can invest varies on their energy needs, but Ripple claims that it can supply energy cheaper than its competitors.

The process of becoming a member is very simple. Firstly, Ripple will ask customers a few questions to identify their energy needs. It will then create a green energy plan to establish how much each customer should invest into the wind farm. Ripple manages the wind farm and provides energy to each customer’s home or business.

Ripple’s business plan fits in with the UK government’s cleaner energy strategy. This strategy includes plans for the country to have net zero carbon emissions by 2050 and to create 220,000 new jobs in the green energy sector of the economy.

State one example of a risk for an investor in Ripple.

How did you do?

19
2 marks

Case Study

Adikoggz is a small business based in Leeds. It offers the customising of trainers. It was set up by Keilan Kogut in 2018. The business designs personalised trainers including those associated with the colours and images of football teams or music bands. Customers can either supply their own trainers to be customised or pay Adikoggz to source and design a new pair of trainers to meet their needs. Adikoggz charges up to £200 for a new pair of customised trainers. It also offers a service to deep clean trainers. The price for this is £20.

The business started as a hobby but after showing off the designs on social media platforms such as Facebook and Instagram, Keilan started to receive follower requests asking him to customise or source unique styles of trainers. This gave him the inspiration to start Adikoggz and the business now receives orders from all over the world.

Keilan still carries out much of the work himself, but the growing number of orders has led him to struggle to keep up with demand. He now employs four people to help him with customisations. However, he still feels that the USP of Adikoggz is the personalised service it offers and that every customer will receive a unique product at the end of the process.

Outline one possible risk to Keilan from setting up Adikoggz.

How did you do?

1
3 marks

Explain one benefit to a small business of having a unique selling point.

How did you do?

2
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3 marks

Explain one reason why new business ideas come about.

How did you do?

3
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6 marks

Discuss the impact on a small business of failing to meet customers' needs.

How did you do?

4
3 marks

Explain one reward of starting up a business.

How did you do?

5
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3 marks

Explain one reason why a business may decide to change a brand name.

How did you do?

6
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3 marks

Explain one way a change of technology can create a business opportunity.

How did you do?

7
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3 marks

Explain one role of an entrepreneur.

How did you do?

8
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3 marks

Explain one reason why someone might want to set up their own business.

How did you do?

9
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3 marks

Explain one reason why a market may be described as 'dynamic'.

How did you do?

10
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6 marks

Discuss the impact of entrepreneurial roles on the success of a start-up business.

How did you do?

11
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6 marks

Case Study

Sports Tours Ltd was established in 1989 and is one of the leading online specialist sports tour operators in the United Kingdom. It arranges tours for teams to destinations in the United Kingdom and Europe in sports such as football, rugby, hockey and netball. The business not only organises travel, accommodation and meals, but it also arranges games and entry to tournaments for the sports team whilst on tour.

Sports Tours Ltd has very high standards. It carries out full risk assessments for all tours including possible pre-tour inspection visits. Tours are licensed and authorised through official agencies. All tours have regular contact with a member of staff from Sports Tours Ltd.

In recent years the business has faced increasing competition. This is not only from other sports tour operators but also from teams organising their own tours. Changing levels of consumer income and exchange rates have also had an impact on demand for tours by sports teams.

Sports Tours Ltd are confident that the high level of service they offer will help them to remain competitive. However, it is always looking for more ways to add value to its business activities.

Analyse the impact on Sports Tours Ltd of operating in a dynamic market.

How did you do?

12
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6 marks

Case Study

Last Course Patisserie Ltd is a small private limited company based in Devon which produces hand-made desserts and puddings. The business was established in 1986. Its owners previously worked in the food industry but felt they could offer better value for money to customers. All of the desserts are made fresh to order which has provided Last Course Patisserie with a reputation for being flexible when meeting customer needs.

Getting the best ingredients for the desserts is a vital part of the business. Last Course Patisserie found excellent suppliers of free range eggs and dairy products close to its business location. This means all ingredients could be delivered quickly when needed.

Last Course Patisserie has recently employed a new head chef from Switzerland who has introduced a new range of products to the menu. This has proved to be very popular with customers and the business now struggles to keep up with demand. Last Course Patisserie is receiving increased orders for desserts but, due to the size of its business premises, struggles to meet this increase in demand. The owners have decided that it is the right time for Last Course Patisserie to expand and possibly relocate to new premises.

Analyse the impact on Last Course Patisserie of adding value to its products.

How did you do?

13
3 marks

Explain one risk for an entrepreneur when starting a new business.

How did you do?

14
3 marks

Explain one way a small business could add value to a product.

How did you do?

15
6 marks

Discuss the impact on a small business from adapting existing products to develop new business ideas.

How did you do?

16
6 marks

Discuss the way a small business could use branding to add value.

How did you do?

1
Sme Calculator
9 marks

Case Study

Last Course Patisserie Ltd is a small private limited company based in Devon which produces hand-made desserts and puddings. The business was established in 1986. Its owners previously worked in the food industry but felt they could offer better value for money to customers. All of the desserts are made fresh to order which has provided Last Course Patisserie with a reputation for being flexible when meeting customer needs.

Getting the best ingredients for the desserts is a vital part of the business. Last Course Patisserie found excellent suppliers of free range eggs and dairy products close to its business location. This means all ingredients could be delivered quickly when needed.

Last Course Patisserie has recently employed a new head chef from Switzerland who has introduced a new range of products to the menu. This has proved to be very popular with customers and the business now struggles to keep up with demand. Last Course Patisserie is receiving increased orders for desserts but, due to the size of its business premises, struggles to meet this increase in demand. The owners have decided that it is the right time for Last Course Patisserie to expand and possibly relocate to new premises.

In order to increase the number of desserts that can be produced to meet the extra demand, Last Course Patisserie is considering two options:

Option 1: investing in new machinery

Option 2: employing more staff.

Justify which one of these two options Last Course Patisserie should choose.

How did you do?

2
Sme Calculator
9 marks

Case Study

Sports Tours Ltd was established in 1989 and is one of the leading online specialist sports tour operators in the United Kingdom. It arranges tours for teams to destinations in the United Kingdom and Europe in sports such as football, rugby, hockey and netball. The business not only organises travel, accommodation and meals, but it also arranges games and entry to tournaments for the sports team whilst on tour.

Sports Tours Ltd has very high standards. It carries out full risk assessments for all tours including possible pre-tour inspection visits. Tours are licensed and authorised through official agencies. All tours have regular contact with a member of staff from Sports Tours Ltd.

In recent years the business has faced increasing competition. This is not only from other sports tour operators but also from teams organising their own tours. Changing levels of consumer income and exchange rates have also had an impact on demand for tours by sports teams.

Sports Tours Ltd are confident that the high level of service they offer will help them to remain competitive. However, it is always looking for more ways to add value to its business activities.

In order to add value to its business activities Sports Tours Ltd is considering two options:

Option 1: using professional sports venues for tournaments

Option 2: providing teams with top class coaching when on tour.
 
Justify which one of these two options Sports Tours Ltd should choose.

How did you do?

3
12 marks

Case Study

That Feeling is a unique barber shop in Potters Bar, Hertfordshire. Its owner, Justin Carr, started the business, aged 25, because of his passion for being a barber. When he left school after his GCSEs he was advised to follow a different career path. However, he wanted to work in a creative industry. This ambition led him to opening a barber shop where his regular customers include England international footballers such as Kyle Walker, Kieran Trippier and Dele Alli.

The unique nature of That Feeling not only comes from the high quality haircuts but also from the way it looks after its customers. They can play on arcade games and get drinks whilst waiting for their appointment. The shop also sells That Feeling branded clothes and vintage glasses frames.

When asked about his business objectives Justin was very clear that non-financial objectives are crucial. Justin stated:

‘It is important to be passionate about what you do and always try to be the best you can. The financial rewards of running a business will come if you get the other things right.’

Justin now acts as a mentor to staff members at That Feeling by giving help and advice about their career. Most of the employees are aged between 19 and 22. Justin feels that if they are given the opportunity to develop their skills they will bring new ideas and creativity to the business.

Evaluate the importance of Justin Carr's entrepreneurial roles to the success of That Feeling. You should use the information provided as well as your knowledge of business.

How did you do?