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

  1. A business whose main aim is to keep trading during a downturn is focusing on:

    • exporting
    • takeover
    • survival
    • rapid growth
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. 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
  10. 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
  11. 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
  12. 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
  13. 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
  14. 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
  15. 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
  16. 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
  17. 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
  18. 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
  19. 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
  20. 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

All Pearson Edexcel Business quizzes