Lesson 1.5.3

1.5.3 Business objectives Quiz: Pearson Edexcel Business, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 1.5.3, Business objectives: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 1: Marketing and people, written with Revision Ninja.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. Which objective is most likely to be the priority for a new business in its first months of trading?

    • Employee welfare
    • Profit maximisation
    • Social objectives
    • Survival

  2. Cutting prices to gain market share from rivals best aligns with which objective?

    • Market share
    • Employee welfare
    • Profit maximisation
    • Cost efficiency

  3. Which of the following is an example of an other objective of a business?

    • Customer satisfaction
    • Profit maximisation
    • Maximising marginal revenue
    • Survival

  4. At what point is economic profit maximised for a firm?

    • AC equals AR
    • TC equals TR
    • MC equals MR
    • MR equals zero

  5. A business sets a target of reducing waste and energy use by 20% to lower its average costs. Which objective is this?

    • Survival
    • Market share
    • Cost efficiency
    • Sales maximisation

  6. Which outcome occurs when a firm prioritises sales maximisation over profit maximisation?

    • Lower sales volume
    • Higher unit costs
    • Reduced total revenue
    • Lower profit margins

  7. Which objective is most closely linked to a business paying above-average wages and offering training?

    • Sales maximisation
    • Profit maximisation
    • Employee welfare
    • Survival

  8. A social enterprise aims to create jobs for long-term unemployed people. Which objective best describes this?

    • Cost efficiency
    • Market share
    • Profit maximisation
    • Social objectives

  9. A firm earns total revenue of £500,000 and total costs of £380,000. What is its profit?

    • £500,000
    • £380,000
    • £880,000
    • £120,000

  10. Gaining market share often conflicts with profit maximisation because it requires what action?

    • Raising prices
    • Reducing output
    • Increasing costs
    • Lowering prices

  11. What is a major long-term benefit of pursuing a customer satisfaction objective?

    • Instant profit growth
    • Higher tax relief
    • Lower fixed costs
    • Repeat custom

  12. Investing in staff development and working conditions directly supports which business objective?

    • Cost efficiency
    • Market share
    • Employee welfare
    • Profit maximisation

  13. What is the primary benefit of adopting a social objective alongside financial aims?

    • Improved corporate reputation
    • Reduced income tax
    • Lower production costs
    • Guaranteed profit margins

  14. A firm reports that its profit margin has fallen even though its sales have risen. Which objective could be at risk?

    • Employee welfare
    • Profit maximisation
    • Social objectives
    • Customer satisfaction

  15. Which business objective is most likely to conflict directly with sales maximisation?

    • Survival
    • Customer satisfaction
    • Market share
    • Profit maximisation

  16. When a firm balances multiple competing objectives, what must managers manage?

    • Dividends
    • Bankruptcy
    • Trade-offs
    • Economies of scale

  17. Keeping prices fair to build trust with buyers primarily addresses which objective?

    • Customer satisfaction
    • Profit maximisation
    • Cost efficiency
    • Social entrepreneurship

  18. Cutting prices to achieve a large increase in unit sales indicates a focus on what?

    • Employee welfare
    • Profit maximisation
    • Sales volume
    • Cost efficiency

  19. A firm wants repeat business rather than chasing new customers. Which objective is this?

    • Sales maximisation
    • Customer satisfaction
    • Survival
    • Profit maximisation

  20. Which action directly supports a cost efficiency objective for a manufacturer?

    • Expanding product lines
    • Increasing prices
    • Reducing unit costs
    • Raising staff bonuses

All Pearson Edexcel Business quizzes