Chapter 1:

1) Define the term ‘adding value’.

2) Define the term ‘entrepreneur’.
3) Analyse one characteristic of successful entrepreneurs.
4) Explain one barrier faced by entrepreneurs, apart from limited finance.
5) Explain one example of opportunity cost for an individual planning to become an
entrepreneur.
6) Analyse one way a country is likely to benefit from the expansion of its business
enterprises.
7) Explain one role of an intrapreneur in an existing business.
8) Analyse one benefit of a detailed business plan to an entrepreneur.
9) Explain one limitation of business plans.
10) Explain one reason why a new hairdressing business will need a factor of
production of your choice.
11) Explain one need that a new business must fulfil if it is to be successful.
12) Analyse one way a supermarket could add value to the food and other goods it
buys in.
13) Explain one reason why there are so many new business enterprises providing
consumer services.
14) Explain one way in which an entrepreneur could overcome the barrier of having
no savings to invest.
15) Analyse one benefit of entrepreneurship to your country’s economy

Chapter 2:

1) Explain one difference between private-sector and public-sector organisations.

2) Explain one difference between a sole trader and a private limited company.
3) Analyse one reason why there is usually a distinction between who owns and who
controls a public limited company.
4) Explain one benefit for a business of engaging in a joint venture.
 5) Analyse one reason why the directors of a public limited company might decide to
convert the business back into a private limited company by buying back all of the
shares.
6) Explain one way in which legal identity and continuity help companies to operate
effectively.
7) Explain one way in which limited liability makes it easier for companies to raise
finance.
8) Analyse one way in which the relationship between ownership and control differs
in two forms of business ownership.
9) Analyse one reason why the form of business ownership affects a business’s
ability to raise finance.
10) Explain one reason why an entrepreneur might decide not to take out a franchise
agreement but to establish an independent business instead.
11) Analyse one difference between private limited companies and public limited
companies.
12) Explain one key feature of social enterprises.
13) Explain one reason why the owners of a business might decide to establish it as a
social enterprise.
14) Define the term ‘cooperative’.
15) Explain one difference between the primary sector and the tertiary sector.
16) Analyse one reason why an entrepreneur opening a hairdressing business might
have a greater chance of success if they bought a franchise licence than if they
attempted to establish an independent business.

Chapter 3:

1) Explain why one stakeholder group might want to compare the size of one
business with another.
2) Explain one reason why capital employed might not be the appropriate way to
compare the size of two businesses.
 3) Explain one reason why comparing the size of two businesses by the number of
employees might give a misleading picture.
4) Explain one way in which the market capitalisation measure of business size will
be affected by a stock exchange crash.
5) Analyse one effect on business stakeholders of horizontal integration.
6) Analyse one effect on business stakeholders of forward vertical integration.
7) Analyse one potential strength for the business if the owner, who is retiring,
encourages their children to continue owning and managing the business.
8) Analyse one benefit to your country’s economy that would result from the growth
of the number of small firms.
9) Analyse one problem for a business of it being small.
10) Explain to a manager one difference between organic and external growth.
11) A fast-food business wants to expand using retained earnings to purchase more
cafés. Analyse one advantage to the business from this form of growth.

Chapter 4:

1) Explain one purpose of a mission statement.

2) Explain one practical limitation of mission statements.
3) Analyse how the objective of ‘increasing shareholder value’ might conflict with
corporate social responsibility.
4) Explain one reason why the objective of a private-sector business might be
different to the objective of a public-sector business.
5) Define the term ‘SMART objectives’.
6) Analyse the ‘triple bottom line’ concept when applied to social enterprises.
7) Explain one reason why the objectives of a business might have to change over
time.
8) Analyse one benefit to a business of having SMART objectives.
9) Explain one way in which ethics can influence business activities.
 10)Analyse one reason why some businesses might decide not to act ethically in a
competitive market.
11) Explain one example of a SMART objective that could be set for your school or
college.
12) Explain one business objective a manufacturing business could establish.
13) Analyse one reason why short-term profit maximisation might not be an
appropriate objective for a medical drug research business.
14) Explain one reason why the owners/directors of a small private limited company
would set a profit-satisficing objective.
15) Analyse one reason why business objectives might change over time.
16) Analyse one possible benefit to a clothes retailer of strictly observing an ethical
code when choosing its suppliers.
17) Analyse one way in which a company’s marketing strategy depends on the
company’s objectives

Chapter 5:

1) Explain one difference between the shareholder concept and the stakeholder
concept.
2) Analyse one reason why a business might have lower profits by meeting
stakeholder aims.
3) Analyse one reason why a business might have higher profits by meeting
stakeholder aims.
4) Explain one difference between a business acting legally and acting socially
responsibly.
5) Explain one way in which there might be conflicts between stakeholder aims.
6) Explain one difference between internal stakeholders and external stakeholders.
7) Explain one responsibility a business in the oil industry might have to a
stakeholder group.
 8) Explain one responsibility a business in a tertiary industry might have to
stakeholder groups.
9) Analyse one business decision that could involve a conflict of stakeholder
interests.
10) Explain one way the business in Q9 could attempt to resolve this conflict.

Chapter 10:

1) Explain one important role of an HR department.

2) Analyse one reason why the recruitment of appropriate employees is important to
a business.
3) Explain one difference between a job description and a person specification.
4) Analyse one reason why the costs of training employees should be weighed
against the costs of not training them.
5) Analyse one benefit of employee training and development programmes for the
business and the employee.
6) Define the term ‘employee appraisal’.
7) Analyse one reason why it is important to the business and the employee to have a
contract of employment between them.
8) Explain one difference between dismissal and redundancy.
9) Explain one benefit of work–life balance.
10) Analyse one benefit to a business of an employee diversity policy.
11) Explain one benefit of a person specification to the selection process for a hospital
nurse.
12) Explain one reason for recruiting an external candidate.
13) Explain one difference between on-the-job training and off-the-job training.
14) Explain one benefit of aiming for equality when recruiting employees.
15) Analyse one benefit of management–worker cooperation for a business.

Chapter 11:
1) Define the term ‘motivation’.
2) Explain one main result of Mayo’s Hawthorne research.
3) Explain one reason why studying human needs is believed to be an important part
of motivation theory.
4) Explain one example of how an individual can revert to a lower level of Maslow’s
hierarchy of human needs.
5) Explain one of the levels of Maslow’s hierarchy. Explain how this need could be
satisfied at work.
6) Explain one difference between Herzberg’s motivators and hygiene factors.
7) Explain one reason why Herzberg considered it important to differentiate between
movement and motivation.
8) Explain one key feature of job enrichment.
9) Analyse one reason why McClelland believed that achievement was so important
to motivation.
10)Explain one difference between content and process motivation theories.
11) Explain one way a fixed monthly salary could help to satisfy one of the needs
identified in Maslow’s hierarchy, apart from physical needs.
12) Analyse one benefit to a private limited company of introducing a profit-sharing
system for the workforce.
13) Explain one difference between job rotation and job enrichment.
14) Explain one benefit to employees from being organised into teams.
15) Analyse one way in which management style could influence the motivational
methods adopted by managers.
16) Analyse one limitation of introducing performance-related pay for teachers.
17) Analyse one disadvantage for a retailing business, such as a high-quality clothing
shop, of low motivation of sales staff.
18) Explain one feature of Taylor’s research that might be relevant to modern
manufacturing industries.
 19) Explain one problem of using the piece-rate system in a business that uses a flow-
line production system.
20) Explain one benefit to a firm that might be gained from adopting teamwork in a
factory making computers.
21) Explain one fringe benefit that might be offered to senior managers.
22) Analyse one potential benefit of using worker participation in a fast-food
restaurant.
23) Analyse one benefit of using a commission-based pay system for computer shop
employees

Chapter 12:

1) Explain one function of managers.

2) Explain one way managers can contribute to business performance.
3) Define the term ‘autocratic style of management’.
4) Explain one difference between democratic and laissez-faire leadership styles.
5) Analyse one difference between McGregor’s Theory X and Theory Y approaches
to management attitudes.
6) Explain which one management style is likely to be used by managers who adopt
the Theory X approach to workers.
7) Analyse one of Fayol’s functions of management.
8) Analyse one of Mintzberg’s managerial roles.
9) Define the term ‘paternalistic style of management’.
10)Explain one scenario in which the autocratic style of management might be
necessary. 11 Analyse how the manager of a multinational business operating in
your country could demonstrate one of Mintzberg’s roles of management.
11)Analyse one possible benefit to employees of democratic management.
12)Analyse one reason why a manager may need to adopt different styles of
management in different circumstances.
 13) Explain one business context in which the laissez-faire style of management
would not be an appropriate style of management

Chapter 17:

1) Define the term ‘marketing’.

2) Explain one difference between customer orientation and product orientation.
3) Analyse one benefit to a business of being customer-oriented.
4) Explain one reason why a business that has the second largest market share would
be keen to become market leader.
5) Explain one factor that could lead to an overall decline in the size of a market.
6) Explain one factor that could lead to a business experiencing declining market
share in a growing market.
7) Analyse one benefit to a business of using mass marketing.
8) Explain one way of segmenting a market.
9) Explain one difference between selling to industrial markets and selling to
consumer markets.
10) Analyse one benefit to an online shoe retailer of customer relationship marketing.
11) Explain one possible example of marketing objectives that Coca-Cola might set.
12) Analyse one strategy that Coca-Cola could use to help the business achieve this
objective.
13) Analyse one way a manufacturer of small cars could segment the market for its
product.
14) Explain one benefit to a jewellery retailer of segmenting the market it operates in.
15) Explain one difference between market share and market size.
16) Explain one problem for a business if it fails to link marketing decisions with
other business departments.
17) Analyse one way a manufacturer of jeans could try to increase market share.
18)Analyse one way a retailer could improve its customer relationship marketing.
 19)Analyse one reason why an electric oven manufacturer might need to adapt its
marketing when it starts marketing to business customers such as restaurant chains
(B2B).

Chapter 18:

1) Explain one difference between primary research data and secondary research
data.
2) Explain one reason why it is important to use secondary data, when available,
before investing in expensive primary market research.
3) Explain one reason why secondary data might prove to be inaccurate for a firm’s
specific purposes.
4) Explain one advantage primary research has over secondary research.
5) Explain one reason why primary research data might prove to be inaccurate.
6) Explain one reason why it is important to consider the target market for a new
product before starting primary research.
7) Explain one reason why sampling is used in consumer surveys.
8) Explain one disadvantage of using a small sample.
9) Explain one reason why a business might find qualitative results useful.
10) Analyse one difference between qualitative and quantitative research.
11) Analyse one reason why both types of data are necessary for a firm to assess the
sales performance of an existing product.
12) Explain one reason why sample size influences the reliability of research results.
13) Analyse one business context in which primary research data could be more
useful than secondary research data.
14) Analyse one piece of information a sports shoe retailer needs from market
research before opening a new store.
15) The sports shoe retailer in question 14 decides to conduct primary research
amongst existing customers. Explain one reason why the data collected might not
be reliable
Chapter 19:

1) Define the term ‘marketing mix’.

2) Explain one example of a tangible attribute of a product.
3) Analyse one reason why the 4Ps should be integrated for a clothing brand aimed
at high-income consumers.
4) Define the term ‘intangible attribute’.
5) Explain one reason why the pricing decision is an important one.
6) Define the term ‘product portfolio analysis’.
7) Analyse one reason why a business might use competitive pricing and not a cost
based pricing method for an existing product.
8) Explain one reason why pricing decisions should not be taken in isolation from
other marketing-mix decisions.
9) Define the term ‘cost-plus pricing’.
10) Define the term ‘psychological pricing’.
11) Explain one way in which a price change could extend a product’s life cycle.
12)Analyse one reason why new product development is important to a consumer
products manufacturer.
13) Explain one way in which consumers could benefit from price discrimination.
14)Analyse one benefit of using the Boston Matrix to examine a product portfolio.
15) Explain one element of the marketing mix for a supermarket.
16) Analyse one reason why it is important that product and price decisions are
integrated, that is, that they give a consistent image of the product.
17) Explain one situation in which contribution-cost pricing would seem to be more
appropriate than mark-up pricing.
18)Explain one reason why airlines use dynamic pricing, especially when selling
tickets to online customers.
19) Explain one difference between a skimming pricing strategy and a penetration
pricing strategy.
20) Explain one example of a business likely to gain from using loss-leader pricing.