Lesson 7.1.1.7

7.1.1.7 Competitive Environment Quiz: NCFE Business & Enterprise, Unit 7

20 questions · by Revision Ninja

In partnership with Revision Ninja

This free Competitive Environment quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 7: External Environment. It covers lesson 7.1.1.7, Competitive Environment, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

Host this setFree Play

All NCFE Business & Enterprise quizzes

The 20 questions

  1. A fifth barber shop opens on a high street that already has four. What is the most likely effect on the existing shops?

    • Each shop wins a larger market share
    • They can raise prices without losing trade
    • Demand for haircuts on the street falls
    • They must work harder to win each customer

  2. Smartphone makers add new camera features every year. Which market condition best explains why?

    • One firm controls most of the market
    • Buyers show little interest in new tech
    • High barriers stop new firms entering
    • Many rivals sell very similar handsets

  3. Which change is most likely to create a growth opportunity for a sportswear brand?

    • A rival launching a similar shoe range
    • A rise in import duties on trainers
    • A shortage of skilled machine operators
    • Growing interest in home fitness

  4. How has the rapid rise of electric vehicles changed the car industry for established manufacturers?

    • It has hit fuel retailers, not carmakers
    • It has slowed the pace of technical change
    • It has opened a segment they must enter
    • It has cut the number of rivals they face

  5. App-based banks have taken customers from the high street. What does this show about new entrants to a market?

    • They struggle to compete in regulated markets
    • They tend to push prices up across the market
    • They can overturn established trading models
    • They leave rivals' market share untouched

  6. A café is listing its competitors. Which businesses should it include?

    • Nearby outlets selling similar food and drink
    • The wholesalers that supply its coffee beans
    • Firms in other towns selling different goods
    • Any business trading on the same high street

  7. Two rival trainer brands sell at the same price. Why might one of them redesign its range?

    • To lower its production costs
    • To meet a new safety rule for footwear
    • To copy the rival's design more closely
    • To stand out from the rival brand

  8. What is a likely benefit for shoppers when competition in a market increases?

    • Lower prices and a wider choice of goods
    • Higher prices, as firms fund research
    • Prices agreed between the top sellers
    • Fewer brands, making choices simpler

  9. What is a drawback for a business of trading in a very competitive market?

    • Suppliers can charge higher prices for stock
    • Profit margins are squeezed by price cuts
    • Skilled staff become harder to recruit
    • Total demand for the product falls away

  10. A discount rival opens near a long-standing grocery shop. Which action best helps the shop keep its trade?

    • Promoting its fresh stock and local service
    • Cutting its opening hours to save on wage costs
    • Stocking exactly what the discounter sells
    • Raising prices to recover the lost sales

  11. A market contains many rival firms selling similar goods. What effect does this have on a firm in that market?

    • It can spend less on marketing and keep its share
    • It must make its product stand out to win customers
    • It gains the power to set the market price itself
    • Total demand for the product falls as rivals enter

  12. Why do firms in a crowded market keep launching updated versions of their products?

    • To stop customers switching to a rival's newer model
    • To win share from rivals by undercutting them on price
    • Because newer models use fewer parts and cost less to make
    • To use up spare factory capacity and cut the cost per unit

  13. Where do new growth opportunities in a competitive market usually come from?

    • Shifts in what customers want and in technology
    • Stable demand that stays the same year after year
    • A fall in the number of rivals chasing the same buyers
    • Licensing rules that keep new rivals out of the market

  14. A new firm enters an established market with a very different way of operating. What is the likely impact on the firms already there?

    • Brand loyalty and economies of scale let them carry on as before
    • The new firm will struggle and soon leave the market
    • They must raise prices to cover any lost sales
    • They may lose customers and must change how they work

  15. App-based banks with lower fees enter the market. What is the best response for a high-street bank?

    • Wait to see whether the new banks survive first
    • Invest in its own app to match customer expectations
    • Start a price war by cutting its fees below those of the new banks
    • Rely on its branch network to keep older customers

  16. Rivals in the smartphone market launch a new handset every year. What is the main risk for a firm that keeps selling the same one?

    • It can charge a premium for a classic design
    • Customers see it as outdated and switch elsewhere
    • It saves money on research and makes more profit
    • Loyal customers will keep buying the older model

  17. A cafe finds that two new coffee shops have opened on its street. Which decision is this most likely to push it towards?

    • Raising its prices to cover the lost customers
    • Spending less on staff training to cut costs
    • Reviewing its prices and refreshing its menu
    • Doing nothing, as its regulars will stay loyal

  18. What is the usual effect of strong competition between firms on the customers who buy from them?

    • Quality falls because firms cut costs to survive
    • Prices are pushed down and choice becomes wider
    • Prices rise because firms spend more on adverts
    • Choice narrows as firms copy the market leader

  19. A bakery is one of five on the same high street. Which action would give it a unique selling point?

    • Baking gluten-free loaves its rivals do not sell
    • Advertising in the local paper each weekend
    • Running a loyalty card like the other bakeries
    • Matching the lowest price on the high street

  20. A bus firm is the sole operator on a rural route. What is the likely effect on its passengers?

    • Fares fall as the firm spreads costs over more riders
    • Fares stay high, as no rival is undercutting it
    • Service improves as the firm chases new customers
    • The council sets the fares, so they cannot rise