Lesson 2.1.2b
2.1.2b How aims and objectives change as businesses evolve Quiz: Pearson Edexcel Business, Unit 6
20 questions
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Lesson 2.1.2b, How aims and objectives change as businesses evolve: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 6: Growing the business, written with Revision Ninja.
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The 20 questions
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A business whose main aim is to keep trading during a downturn is focusing on:
- exporting
- takeover
- survival
- rapid growth
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Entering a market means:
- starting to sell in a market it did not previously serve
- reducing the number of products it offers to customers
- merging with a competitor in the same market as before
- stopping sales in a market that it has served for years
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Exiting a market means:
- hiring more staff to serve a market that is already large
- starting to sell products in a new country for the first time
- buying a rival business in the same market it already serves
- stopping selling in a market it previously served
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A business decides to add more products to its range. This is:
- increasing the product range
- decreasing the product range
- exiting markets
- focusing on survival
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Which of these is a change focusing on growth?
- Reducing the number of product lines
- Selling the business's main site
- Closing unprofitable stores
- Opening new stores in additional towns
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A change focusing on survival would most likely involve:
- cutting costs and reducing the product range
- increasing staffing levels sharply to meet rising demand
- launching many new products at once to win back sales
- opening overseas branches quickly to find new customers
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Which is a sign that a business is moving from survival to growth?
- Falling sales forcing it to close a factory
- Exiting its main market
- Cutting the product range to a single line
- Rising sales allowing it to hire more staff
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A company cuts its product range from 30 items to 10 to improve profits. Which change is this?
- Decreasing the product range
- Entering a market
- Increasing the product range
- Growing the workforce
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A business reduces its staff from 200 to 120 because demand has fallen. Which aim change does this reflect?
- Reducing the workforce, probably to focus on survival
- Increasing the product range to focus on growth
- Growing the workforce to focus on growth
- Entering new markets to focus on growth
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A restaurant chain opens five new branches in a year after strong profits. Which aim changes are shown?
- Survival and reducing the workforce
- Survival and exiting markets together
- Exiting markets and decreasing the product range
- Growth and growing the workforce
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A company that has always sold in the UK withdraws from Spain after losses. Which change is this?
- Exiting a market
- Increasing the product range
- Growing the workforce
- Entering a market
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A business's aim changes from 'grow market share' to 'maintain cash flow'. Which best describes the change?
- A move from exiting markets to entering markets
- A move from survival towards growth
- A move from one product to many products
- A move from growth towards survival
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A clothing shop goes from selling 3 ranges to 9. Which change is this, and what does it focus on?
- Reducing the workforce, focusing on survival
- Decreasing the product range, focusing on survival
- Increasing the product range, focusing on growth
- Exiting markets, focusing on growth
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Which is the most likely reason a business would shift from entering markets to exiting markets?
- A merger with a larger firm in another sector
- Falling profits and losses in the new market
- A rise in sales of all its existing products
- A government grant for new factories
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A bakery takes its lowest-selling cakes off the menu and adds three new breads. Which change is shown?
- Reducing the workforce to cut costs after falling sales
- Changing the product range by swapping some products
- Entering a new geographic market by opening a second shop
- Focusing on survival through deep price cuts on every item
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Which combination of aim changes would most likely signal a business moving towards survival during a recession?
- Exiting profitable markets and growing workforce together
- Growing workforce, increasing product range, and entering new markets
- Entering new markets and increasing product range together
- Reducing workforce, decreasing product range, and exiting unprofitable markets
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Why might a growth-focused business enter new markets rather than simply raise its prices?
- Higher prices always increase market share in every market
- Growth needs more customers, and new markets can add sales volume
- Entering markets removes the need for any marketing
- Raising prices is illegal in almost every market
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A firm exits a market after reaching its growth aims elsewhere. Is this consistent with its aims?
- No, exiting a market always means the firm has failed
- No, firms can never exit markets once they enter them
- Yes, but only if the firm has gone bankrupt
- Yes, if the market no longer fits the firm's strategy
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A business reduces its product range but increases its workforce. What is the most likely explanation?
- It is shifting to fewer, higher-value products that need more staff to serve
- It is exiting all markets while expanding its sales force
- It is shifting towards survival with fewer staff and fewer products
- It is reducing costs by cutting both its staff and its products
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Which is the best reason a business's aims might move from growth back to survival?
- A decision to enter every available market at once
- A surge in demand that makes expansion easier
- A sustained fall in demand that makes expansion too risky
- An increase in the product range for all products
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