Lesson 3.6.1

3.6.1 Causes and effects of change Quiz: Pearson Edexcel Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.6.1, Causes and effects of change: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 3: Business decisions and strategy, written with Revision Ninja.

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The 20 questions

  1. Which internal factor is a common cause of business restructuring?

    • Exchange rates
    • High inflation
    • Poor performance
    • New legislation

  2. Which PESTLE category includes changes to the national minimum wage?

    • Technological
    • Economic
    • Social
    • Legal

  3. What is a likely short-term effect of organisational change on labour productivity?

    • Immediate doubling
    • Zero change
    • Permanent cessation
    • Temporary dip

  4. What is the primary focus of a transformational leader during change?

    • Routine budgeting
    • Vision and culture
    • Strict compliance
    • Daily operations

  5. How do employees often feel about their jobs during major corporate change?

    • Empowered
    • Insecure
    • Complacent
    • Indifferent

  6. What immediate financial effect does downsizing usually cause for a firm?

    • Zero expenses
    • Higher dividends
    • Tax rebates
    • Redundancy costs

  7. What is the most likely outcome for a firm following a takeover by a new owner?

    • Strategy changes
    • Reduced output
    • Instant liquidation
    • No disruption

  8. A firm's market share falls from 20% to 15% after a new competitor enters. What is the percentage fall in market share?

    • 15%
    • 5%
    • 33%
    • 25%

  9. How can switching from a tall to a flatter structure improve competitiveness?

    • More bureaucracy
    • Faster decisions
    • Higher overheads
    • Stricter control

  10. What is the immediate financial impact of complying with a new environmental regulation?

    • Higher costs
    • Lower taxes
    • Higher revenue
    • Zero impact

  11. Why might a board of directors choose to restructure after poor performance?

    • Delay audits
    • Cut costs
    • Expand offices
    • Increase salaries

  12. What is the long-term effect on productivity of embedding new digital systems?

    • Productivity rises
    • Productivity falls
    • Output halts
    • No change

  13. How do one-off redundancy costs affect a firm's financial statements in the period incurred?

    • Increased cash
    • Zero effect
    • Reduced profit
    • Higher assets

  14. A firm's revenue rises from 3.0m to 3.6m after a change programme. What is the percentage increase in revenue?

    • 16.7%
    • 20%
    • 120%
    • 0.6%

  15. When a firm relocates production abroad, which stakeholder group suffers job losses at home?

    • Local employees
    • Government regulators
    • Shareholders
    • Overseas suppliers

  16. Which external factor can force a firm to change despite strong internal performance?

    • Strong cash flow
    • New competitors
    • High staff morale
    • High profit margins

  17. What is a common effect on communication when a firm grows rapidly in size?

    • Slower communication
    • Instant feedback
    • Zero bureaucracy
    • Eliminated layers

  18. When a rival buys a firm and changes the product range, which stakeholder is most affected?

    • Tax authorities
    • Competitors
    • Trade unions
    • Suppliers

  19. Why might a firm be forced to adopt new technology used by market rivals?

    • Maintain competitiveness
    • Increase tax bills
    • Reduce customer base
    • Lower product quality

  20. What often drops temporarily during poorly managed rapid business change?

    • Brand equity
    • Asset value
    • Staff productivity
    • Market share

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