Lesson 3.1.1

3.1.1 Understanding the nature and purpose of business Quiz: AQA Business, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 3.1.1, Understanding the nature and purpose of business: 20 multiple choice questions for the AQA Business (7132), Unit 1: What is business?, 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. What term describes the overall overarching purpose and long-term direction of a business?

    • Objective
    • Mission
    • Tactics
    • Strategy

  2. Which of these is an example of a social objective for a business?

    • Cutting total costs
    • Fair employee pay
    • Maximising profit
    • Increasing market share

  3. Which formula is used to calculate total business profit?

    • Revenue minus costs
    • Revenue plus costs
    • Costs minus revenue
    • Revenue times costs

  4. Which of these is an example of a variable cost for a manufacturer?

    • Factory rent
    • Business rates
    • Managerial salaries
    • Raw materials

  5. Which term is synonymous with total revenue in business accounting?

    • Turnover
    • Capital expenditure
    • Net profit
    • Gross profit

  6. Which of these is an example of a fixed cost for a retailer?

    • Delivery fuel
    • Property rent
    • Piece-rate wages
    • Packaging materials

  7. What is the primary focus of a cash flow objective?

    • Boosting share price
    • Maintaining liquidity
    • Minimising variable costs
    • Maximising dividends

  8. A business has revenue of 240,000, variable costs of 96,000 and fixed costs of 84,000. What is its profit?

    • 60,000
    • 156,000
    • 144,000
    • 36,000

  9. A business sells 5,000 units at 12 each. Variable cost is 5 per unit and fixed costs are 15,000. What is the profit?

    • 45,000
    • 20,000
    • 40,000
    • 35,000

  10. Which objective is most critical for a struggling business facing immediate closure?

    • Profit maximisation
    • Market penetration
    • Survival
    • Diversification

  11. A business accepts higher costs to source ingredients ethically. Which type of objective does this decision mainly reflect?

    • A liquidity objective
    • An ethical objective
    • A profit maximisation objective
    • A growth objective

  12. A business reports revenue of 500,000 and total costs of 430,000. What is its profit as a percentage of revenue?

    • 70%
    • 86%
    • 14%
    • 16%

  13. What primary reason explains why a profitable business might lack cash to pay wages?

    • Rising fixed costs
    • Delayed credit sales
    • High depreciation
    • Low profit margins

  14. What converts a general corporate mission statement into specific, measurable operational targets?

    • Vision statements
    • Tactical plans
    • Core values
    • Objectives

  15. A business sells 8,000 units at a price of 25 each. Variable cost is 15 per unit and fixed costs are 40,000. What are its total costs?

    • 120,000
    • 200,000
    • 40,000
    • 160,000

  16. Which objective most directly conflicts with short-term profit maximisation?

    • Ethical sourcing
    • Revenue growth
    • Market share growth
    • Capacity utilisation

  17. What is the main risk of pursuing rapid revenue growth alongside a survival objective?

    • Cash flow shortages
    • Increased product range
    • Higher staff turnover
    • Declining unit costs

  18. Which measure evaluates business performance beyond financial profit?

    • Gross profit margin
    • Return on capital
    • Dividend yield
    • Environmental impact

  19. Total costs rise from 200,000 to 230,000 when output rises from 10,000 to 12,000 units, with fixed costs unchanged. What is the variable cost per unit?

    • 30
    • 15
    • 20
    • 11.50

  20. A business has revenue of 100,000 and costs of 80,000, giving profit of 20,000. Revenue then rises 20% and costs rise 30%. What is the new profit?

    • 36,000
    • 20,000
    • 16,000
    • 24,000

All AQA Business quizzes