Pearson Edexcel Level 3 GCE Business Advanced Subsidiary PAPER 1s
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Course
GCE Business
Institution
GCE Business
Pearson Edexcel Level 3 GCE Business Advanced
Subsidiary PAPER 1s
1. Which of the following is the primary goal of a business?
• A) Maximizing employee satisfaction
• B) Maximizing shareholder wealth
• C) Minimizing costs
• D) Reducing competition
Rationale: The primary goal of a bu...
Pearson Edexcel Level 3 GCE
Business Advanced
Subsidiary PAPER 1:
Marketing and People QP
MAY 2024 Questions AND
Answers 100% A+
[Document subtitle]
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Pearson Edexcel Level 3 GCE Business Advanced
Subsidiary PAPER 1s
1. Which of the following is the primary goal of a business?
• A) Maximizing employee satisfaction
• B) Maximizing shareholder wealth
• C) Minimizing costs
• D) Reducing competition
Rationale: The primary goal of a business is typically to maximize shareholder wealth,
ensuring profitability and sustainability.
2. Which type of business organization limits the liability of its owners?
• A) Sole proprietorship
• B) Partnership
• C) Limited liability company (LLC)
• D) Cooperative
Rationale: A limited liability company (LLC) limits the liability of its owners, protecting
their personal assets from business debts.
3. What is market segmentation?
• A) Dividing a market into distinct groups of buyers
• B) Selling the same product to all customers
• C) Setting prices based on production costs
• D) Merging two or more companies
Rationale: Market segmentation involves dividing a market into distinct groups of
buyers with different needs or characteristics.
4. A business that is structured as a partnership typically involves:
• A) Unlimited liability for all partners
• B) Limited liability for some partners
• C) No written agreement required
• D) Government ownership
Rationale: In a partnership, partners usually have unlimited liability, meaning their
personal assets can be at risk for business debts.
5. Which of the following is a characteristic of a monopoly?
• A) Many sellers in the market
• B) Homogeneous products
• C) Price competition
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• D) Single seller dominating the market
Rationale: A monopoly is characterized by a single seller dominating the market, often
leading to higher prices and less choice for consumers.
6. What is the purpose of a SWOT analysis?
• A) To analyze financial statements
• B) To assess a company's strengths, weaknesses, opportunities, and threats
• C) To determine market share
• D) To create advertising strategies
Rationale: A SWOT analysis helps businesses assess their internal strengths and
weaknesses and external opportunities and threats for strategic planning.
7. Which of the following is an example of a fixed cost?
• A) Raw materials
• B) Utilities
• C) Salaries of permanent staff
• D) Sales commissions
Rationale: Salaries of permanent staff are considered fixed costs because they do not
change with the level of production.
8. What is the primary purpose of market research?
• A) To eliminate competition
• B) To understand customer needs and preferences
• C) To set pricing strategies
• D) To develop advertising campaigns
Rationale: The primary purpose of market research is to understand customer needs and
preferences, helping businesses make informed decisions.
9. A business's pricing strategy that involves setting prices based on competitors' prices is
called:
• A) Cost-plus pricing
• B) Penetration pricing
• C) Competitive pricing
• D) Price skimming
Rationale: Competitive pricing involves setting prices based on the prices charged by
competitors for similar products.
10. Which of the following best describes corporate social responsibility (CSR)?
• A) Focusing solely on profit maximization
• B) Balancing profit with social and environmental concerns
• C) Reducing employee wages
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