Lesson 5.1.4

5.1.4 Challenges of Growth Quiz: NCFE Business & Enterprise, Unit 5

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

This lesson looks at the challenges a growing business must manage. It covers extra physical, human and financial resources, cash-flow problems when growth outpaces income, and expanding overseas, where culture, law, tariffs and quotas matter. It also considers how local residents are affected by new sites and the cost of new technology.

Key points

  • Physical resources are tangible things such as premises, machinery, vehicles and stock, and all must expand as output grows.
  • Growth needs more human resources, met by recruiting extra staff and training existing ones for bigger roles, and tasks become specialist jobs.
  • Growing firms need extra finance for premises, machinery and stock before the extra sales bring any cash in.
  • Rapid growth can cause cash-flow problems, because wages and stock are paid before customers settle bills, even while sales rise.
  • New technology such as a stock-control system brings speed and accuracy, but costs money and requires staff training.
  • Entering an overseas market means researching local customs, law and buying habits, since ignoring them risks offence, fines or goods seized at the border.
  • A tariff taxes imports so they cost more, while a quota caps the quantity that may be imported, limiting an exporter's growth.

Key terms

Physical resources
Tangible assets a business uses, such as premises, machinery, vehicles and stock.
Cash flow
The movement of money into and out of a business over time.
Overtrading
Growing so fast that cash runs short, even though the business is making sales.
Tariff
A tax on imported goods that makes them cost more.
Quota
A limit on the quantity of a good that may be imported.
Cultural sensitivity
Adapting products and messages to respect the customs, tastes and beliefs of another country.

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.

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The 20 questions

  1. A bakery is expanding. Which of these is a physical resource it must plan for?

    • The owner's know-how
    • A second delivery van
    • Its brand reputation
    • A newly hired baker

  2. Why might a rapidly growing business need larger premises?

    • To pay lower rent
    • To hold more stock
    • To shorten working hours
    • To reduce staff numbers

  3. How do factory equipment needs change as output increases?

    • Sell all heavy machinery
    • Switch to manual labour
    • Upgrade to faster machines
    • Remove production lines

  4. Why must a fast-growing online retailer usually upgrade its IT systems?

    • Brand redesign
    • Factory automation
    • Strict data laws
    • Higher order volume

  5. Why do individual job roles become specialist as a business expands?

    • Tasks grow too complex
    • Sales volume drops
    • Staff work fewer hours
    • Wage rates decrease

  6. A café doubles its opening hours but full-time staff cannot work longer. What must it do?

    • Cut daily production
    • Retrain existing workers
    • Recruit additional staff
    • Reshuffle current shifts

  7. Why must a firm research local customs before entering an overseas market?

    • To increase profit margins
    • Ads may cause offence
    • To lower shipping fees
    • To speed up deliveries

  8. Which concern are local residents most likely to raise about a new depot?

    • Increased local taxes
    • Extra traffic and noise
    • Reduced job availability
    • Lower local house prices

  9. What is the main legal risk of selling goods abroad without checking local law?

    • Automatic patent grants
    • Immediate tax rebates
    • Free warehouse space
    • Fines or trading ban

  10. What does a government-imposed import quota mean for a manufacturing business?

    • Production subsidy
    • Import tax
    • Quantity limit
    • Total ban

  11. Which major challenge does a business typically face during rapid growth?

    • Lower demand
    • Cash flow shortages
    • Excessive profits
    • Zero competition

  12. Which action shows cultural sensitivity when opening shops in Japan?

    • Stopping all marketing
    • Keeping identical menus
    • Adapting recipes for locals
    • Lowering staff wages

  13. Which of these is an additional physical resource needed by a growing manufacturer?

    • Bank loan capital
    • Skilled human labour
    • Larger factory unit
    • Shareholder investment

  14. What is the best way to prepare before entering an overseas market?

    • Borrow maximum loans
    • Ignore foreign competitors
    • Research customs and laws
    • Copy domestic packaging

  15. What is the main effect when a government adds a tariff to imported goods?

    • Foreign suppliers profit
    • Domestic costs fall
    • Import prices rise
    • Import demand increases

  16. How can a growing business best meet its need for skilled workers?

    • Recruit and train staff
    • Outsource all management
    • Cancel product lines
    • Reduce opening hours

  17. Why can rapid growth cause severe cash-flow problems?

    • Payments precede receipts
    • Overheads instantly drop
    • Customers pay instantly
    • Suppliers give free goods

  18. What is the primary risk of ignoring foreign trading rules at the border?

    • Faster delivery times
    • Goods seized at border
    • Exemption from tax
    • Higher retail prices

  19. What is the primary financial drawback of installing a new stock control system?

    • Slower production
    • Lower accuracy
    • High cost
    • Job losses

  20. What does a government-imposed import quota do?

    • Limits annual import quantity
    • Removes import tariffs
    • Doubles overseas sales
    • Bans all foreign goods

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