Business Mock Exam Revision – 2024 WITH CORRECT ANSWERS 100%

What is business growth? - Correct AnswerWhen a business increases the scale of its operations. What are different types of growth? - Correct AnswerOrganic (Internal) and Inorganic (External). What is organic growth? - Correct AnswerGrowth from within a business e.g. developing or selling products. What is inorganic growth? - Correct AnswerGrowth from outside a business e.g. takeover or merger. What are the negatives of takeover? - Correct AnswerHostile as dominant business takes full control. What is expanding overseas? - Correct AnswerWhen a business sells its products abroad. What are benefits of expanding overseas? - Correct Answer- Larger market - More customers - Increase in brand awareness What are the negatives of expanding overseas? - Correct Answer- Risky as less understanding of new market - Expensive due to tariffs How does a business take advantage of technology? - Correct AnswerIt makes use of e-commerce and m-commerce. What is research and development? - Correct AnswerWhen a business finds new customers to buy its products. What are different types of ownerships? - Correct Answer- Sole trader - Partnerships - Private Ltd Company What are the benefits of becoming a PLC? - Correct Answer- Allows shares to be sold to general public via stock market - Has access to loads of potential investors - Shareholders benefit from limited liability What is limited liability - Correct AnswerIf business falls into debt you only pay back what you invested. What is share capital? - Correct AnswerWhen shareholders invest money into the business. What is loan capital? - Correct AnswerMoney provided externally in terms of a loan which has to be paid back. What are overdrafts? - Correct AnswerShort-term source of finance that enables a business to spend more than account holds. What are negatives of overdrafts? - Correct AnswerHave to be repaid quickly due to high interests. What is globalisation? - Correct AnswerFree movement of goods and services across the world. What are the benefits of globalisation? - Correct Answer- Increased markets - Access to cheap labour and raw materials What are the negatives of globalisation? - Correct Answer- International competitors with cheaper costs - Effects of events in other countries What is a Multinational Company? - Correct AnswerA business with operations in different countries. What is an advantage of a Multinational company? - Correct AnswerMinimizes production and distribution costs. What is a quota? - Correct AnswerA limit on the number of goods that can be imported.