Lesson 1.2.4b
1.2.4b Impact of competition on business decision making Quiz: Pearson Edexcel Business, Unit 2
20 questions
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Lesson 1.2.4b, Impact of competition on business decision making: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 2: Spotting a business opportunity, 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.
The 20 questions
-
How might a business react to a rival launching a much cheaper version of a product?
- Stopping sales
- Lowering prices
- Closing down
- Ignoring profits
-
A rival offering a wider product range may force a business to alter what?
- Tax bracket
- Business name
- Product portfolio
- Legal status
-
Why might a business improve customer service to counter strong market competition?
- To retain customers
- To reduce sales
- To borrow loans
- To pay tax
-
A business opening a second shop after a rival expands locally is reacting to what?
- Exchange rates
- Rival location
- Corporation tax
- Sole trader laws
-
What primary effect does market competition have on business decision-making?
- Removes taxation
- Guarantees profit
- Eliminates costs
- Forces adaptation
-
What non-price feature can a business emphasise to counter a rival's lower prices?
- Product quality
- Basic design
- Fewer staff
- Higher taxes
-
A rival introducing free delivery will directly impact which business decision?
- Delivery policy
- Legal structure
- Business name
- Company logo
-
What is a major risk of ignoring competition when making business decisions?
- Higher profits
- Increased market share
- Losing customers
- Lower operating costs
-
Why might strong competition encourage a business to target a niche market?
- To increase factory size
- To avoid rivals
- To pay higher dividends
- To hire more managers
-
Matching a rival's opening hours while keeping independent prices demonstrates what type of response?
- Price fixing
- Total surrender
- Complete imitation
- Selective adjustment
-
What primary factor limits how much a business can reduce prices to match a rival?
- Employee uniform
- Marketing budget
- Store location
- Production costs
-
What term describes a market where multiple firms compete for the exact same customers?
- Controlled economy
- Monopoly market
- State enterprise
- Competitive environment
-
How might online competition typically force a local retail shop to adapt its services?
- Adding delivery services
- Reducing opening days
- Removing customer seating
- Stopping card payments
-
Stocking unique products that are not sold by your main rival is an example of which decision?
- Recruitment decision
- Location decision
- Financing decision
- Product range decision
-
Running a campaign highlighting advantages over a rival is an example of responding through what?
- Production
- Procurement
- Marketing
- Administration
-
Why must a business monitor its competitors regularly in a dynamic market?
- To fix staff rotas
- To order stationery
- To pay utility bills
- To respond promptly
-
What is the best first step when sales fall suddenly after a rival opens nearby?
- Increase all prices
- Liquidate the firm
- Ignore the change
- Investigate rival offer
-
Which business action responds directly to intense local competition?
- Increasing product prices
- Extended opening hours
- Lowering staff wages
- Reducing marketing spend
-
What is the most likely effect of intense market competition on business profit margins?
- Revenue spikes
- Margins fall
- Margins double
- Costs disappear
-
Why might a strong brand successfully avoid cutting prices when a rival does?
- Government subsidies
- Customer loyalty
- Guaranteed monopoly
- Legal protection
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