Lesson 2.1.4a

2.1.4a Ethical considerations and trade-offs with profit Quiz: Pearson Edexcel Business, Unit 6

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.1.4a, Ethical considerations and trade-offs with profit: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 6: Growing the business, written with Revision Ninja.

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The 20 questions

  1. What is a key example of an ethical business consideration?

    • Reducing overheads
    • Cutting staff
    • Fair stakeholder treatment
    • Maximising revenue

  2. What does a trade-off between ethics and profit typically involve?

    • Higher sales volume
    • Instant market dominance
    • Zero business costs
    • Lower short-term profit

  3. Which business action represents an ethical decision that may reduce profit?

    • Sourcing cheapest materials
    • Paying fair supplier prices
    • Lowering staff wages
    • Delaying tax payments

  4. Which stakeholder group is most directly affected by fair wage decisions?

    • Competitors
    • Government
    • Employees
    • Shareholders

  5. Fair trade products are an example of which business approach?

    • Aggressive pricing
    • Predatory selling
    • Ethical sourcing
    • Cost minimisation

  6. What is a frequent financial consequence of ethical sourcing for a firm?

    • Eliminated fixed costs
    • Zero tax liabilities
    • Higher operating costs
    • Immediate cost savings

  7. Paying staff above the legal minimum wage is an example of what?

    • Cost minimisation
    • Financial negligence
    • Legal requirement
    • An ethical trade-off

  8. Which scenario clearly demonstrates an ethical trade-off with profit?

    • Outsourcing to sweatshops
    • Ignoring safety laws
    • Buying sustainable cotton
    • Sourcing cheapest fabrics

  9. A firm pays £2 per item to an ethical supplier instead of £1.60 from a cheaper one. For 10,000 items, how much extra does it pay?

    • £3,600
    • £40,000
    • £400
    • £4,000

  10. A retailer's profit margin falls from 20% to 15% after switching to fair trade suppliers. By how many percentage points has the margin fallen?

    • 5 percentage points
    • 35 percentage points
    • 25 percentage points
    • 15 percentage points

  11. Refusing animal-tested products in exchange for reputation shows what business concept?

    • Financial failure
    • Market saturation
    • Economies of scale
    • An ethical trade-off

  12. Dropping cheap clothes made in unsafe factories most likely causes what short-term effect?

    • Lower short-term profit
    • Reduced fixed costs
    • Increased daily sales
    • Higher profit margins

  13. Which stakeholder group benefits most directly from paying a living wage?

    • Suppliers
    • Employees
    • Shareholders
    • Competitors

  14. A company plans to use recycled packaging costing 5p more per unit. It sells 200,000 units. What is the extra cost?

    • £1,000
    • £100,000
    • £10,000
    • £10

  15. Which action best demonstrates an ethical trade-off for a clothing firm?

    • Reducing staff numbers
    • Lowering product quality
    • Cutting advertising budgets
    • Independent factory audits

  16. Who is directly affected if a business uses suppliers paying low wages?

    • Company directors
    • Business shareholders
    • Retail customers
    • Supplier factory workers

  17. Stopping harmful wildlife products to act responsibly while losing sales is known as what?

    • Cost leadership
    • An ethical trade-off
    • Product recall
    • Market penetration

  18. Prioritising ethical sourcing despite cheaper rivals shows which business approach?

    • Aggressive discounting
    • Ethical commitment
    • Cost minimisation
    • Price leadership

  19. What is the primary long-term profit benefit of ethical business behaviour?

    • Customer loyalty
    • Zero advertising costs
    • Immediate tax relief
    • Lower staff wages

  20. A firm pays £50,000 more for ethical supplies. It gains new customers worth £80,000 of extra revenue, with no other extra costs. What is the net gain?

    • £30,000
    • £130,000
    • £50,000
    • -£30,000

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