Business Unit 1

December 2025 Mock

The three sectors of the ____ include: primary, secondary, and ____

Economy, tertiary

The primary ____ of the economy provides the raw ____ that are used for production

Sector, materials

The secondary sector of the ____ are the ____; where the product is crafted

Economy, manufacturers

The ____ sector of the economy provides customer ____, marketing and selling the product

Tertiary, service

An SME is a small/____ ____

Medium, enterprise

There are 4.9 million ____ businesses in the UK

SME

SME’s in the UK employ over ____ million people

24.3

Revenue is the ____ a business makes from ____ 

Money, sales

Total revenue = ____ sold x selling ____

Quantity, price

Fixed costs are costs that may change in the ____ run - like rent or employee ____

Long, wage

Variable costs are costs that change in direct ____ to a business’ number of ____

Proportion, sales

Total costs = fixed ____ + ____ costs

Costs, variable

Semi-variable costs are costs that contain ____ and variable ____

Fixed, features

Profit = total ____ - total ____

Revenue, costs

Contribution is the measurement of seeing whether a business’ sales ____ is enough to cover their ____ - money leftover after this is their ____

Revenue, costs, profit

Contribution per unit = selling ____ per unit - ____ costs per unit

Price, variable

Direct costs are costs that are ____ to that business’ production, for example, ____ fees or shop rent

Specific, licence

Overhead (or ____) costs are costs that are not directly related to ____, such as advertising or employing a secretary

Indirect, production

To break-even means to not make a ____ or a ____

Profit, loss

Breaking even allows a business to ____ their financial position

Understand

A break-even graph contains the break-even point, (____) revenue, costs, and number of ____ sold

Bep, products

The margin of safety is the difference between sales and the ____ point - it shows how much ____ can fall before they start to lose ____

Break-even, sales, money

Sources of finance are ways for a _____ to earn _____ to fund the business

Business, capital

Working capital is the money needed to finance the ____ running of the business - it includes providing stock, wages, and paying ____

Day-to-day, bills

Investment capital helps the business ____

Grow

Capital expenditure is the money spent on ____ assets, such as buildings

Fixed

Internal sources of finance are generated within the ____ or from business ____

Business, owners

External sources of finance is money ____ from outside the business

Raised

Retained profit is an ____ source of finance, and is when a business owner uses their own ____ for something

Internal, money

The sale of ____ is an internal source of ____, and means to sell a business’ assets

Assets, finance

A bank loan is an ____ source of finance, and allows someone to ____ a fixed amount of money for a ____ of time

External, borrow, period

An overdraft is an ____ source of finance, and allows someone to withdraw more _____ than they have in their bank account, resulting in a ____ balance

External, money, negative

Trade credit is an _____ source of finance, and allows someone to buy ____ and products for their business and pay for them ____

External, materials, later

Leasing is an ____ source of finance which allows a ____ to use an asset without ever ____ it

External, business, owning

Hire purchase is an ____ source of finance which lets someone use an asset by paying a monthly ____

External, fee

Sale and leaseback is an ____ source of finance which is when a company ____ an asset and ____ is back

External, sells, leases

Venture capitalists are an ____ source of finance where ____ invest money into small and medium sized ____

External, investors, businesses

Government grants are an ____ source of finance where the government offer ____ to businesses who are just ____

External, assistance, starting

The location of a business can be determined by - access to and for ____, access to product ____, and minimising ____

Customers, production, costs

The location of a business is important in considering its ____

Success

Managers may want to locate in an area close to ____ or friends - this is a ____ reason to choosing business location

Family, social

An anchor tenant is a business which is considered the main place in a ____ centre, and is what usually brings ____ to the area

Shopping, customers

The location of a business can be influenced by the ____ of labour, the ____ of labour, and the skills

Cost, availability 

Many manufacturers locate in lower-class ____ where the cost of ____ is cheap

Countries, labour

In some areas, the ____ will ask for businesses to locate so that the people can go into ____ or training

Government, employment

Business location can be influenced by the quality of ____ in the area - this includes roads, rails, etc, but also ____ related things like communication systems

Infrastructure, technology

Infrastructure has a different meaning to ____ based businesses than to heavy goods manufacturers

E-commerce

Economies of concentration is when a number of ____ within the same ____ locate close together - they gain mutual ____ doing this

Businesses, industry, advantages

Footloose businesses are businesses that move from one ____ to another whenever their ____ change

Location, needs

Economies of scale are the cost ____ that a business receives when they sell a ____ number of products

Advantages, large

The private sector consists of businesses that are set up by ____ or individuals for their own ____

Groups, reasons

The public sector consists of businesses run by the ____ in order to provide ____ to the public, such as the police force

Government, services

Goods are items produced through raw ____ by the ____ sector so they can be sold to the ____

Materials, secondary, public

Consumer goods are goods used by ____

Consumers

Producer goods are goods that are bought by other ____ to create different ____, like machinery

Businesses, goods

Single use goods are goods that can only be used ____, like food

Once

Durable goods are goods that can be used ____ times, like a kettle

Multiple

Services are tasks performed in return for ____

Payment

A business aim is a long-term ____ that is focused on in order for the business to ____ something

Intention, achieve

A business objective is a smaller ____ that is completed to meet the overall ____ and have priorities going in the right ____

Target, aim, direction

Public goods are goods that would not be provided if they were not ____ and are available for ____ service

Free, public

Public goods have no rivalry, meaning the ____ of the good does not diminish someone else having it

Consumption

Public goods are non-excludable, meaning it is impossible for someone to not ____ from its usage

Benefit

Sole traders are business owners who run the business ____ - they can ____ people, but they are the only owner

Alone, employ

Sole traders are able to keep all ____ after costs and are in control of their work ____

Profit, hours

Sole traders are usually more ____ about the type of business they run are can provide more ____ about it

Passionate, knowledge

Sole traders and partnerships can request government ____ for starting their business

Grants

A partnership is a business owned by a minimum of ____ people and a maximum of ____

Two, twenty

The Deed of Partnership is a ____ agreement that displays the rights and ____ of each partner, and how they will split ____

Legal, responsibilities, profit

The Deed of Partnership contains the amount of ____ that each partner is contributing, the procedure of ____ the partnership, and rules for taking on new ____

Capital, ending, partners

A private limited company (LTD) is a ____ business that do not exchange shares on the ____ market

Small, stock

A public limited company (PLC) is a ____ business that sells their ____ on the stock market

Large, shares

Charities are ____ organisations that aim to collect ____ to pursue a certain ____

Not-for-profit, money, goal

Charities can earn ____, the equivalent of a profit, but it must be ____ into the organisation

Surpluses, reinvested

A social enterprise includes for-profit and not-for-profit ____ with social objectives such as providing for the ____ or environment

Organisations, community

Social enterprises are often placed in the ____ sector, neither public or private

Third

Stakeholders are people who have ____ in a business and can affect the ____ of it

Interest, activity

Owners and ____ are interested in how much ____ the business makes

Shareholders, profit

Managers are interested in their ____

Salary

Employees are interested in their ____ and having a good work ____

Wages, environment

Customers want the business to provide good ____ at ____ prices and to be able to choose from a range

Products, reasonable

Suppliers want the business to ____ their products 

Buy

Competition are interested in what other ____ are doing and how they can ____ up

Businesses, keep

Financiers are interested in being ____ on time

Repaid

The local community are interested in how the business will effect their ____, like noise, light, etc

Environment

The government are interested in whether the business follows the ____, how many ____ are for offer, and how much ____ the business must pay

Law, jobs, tax

Pressure groups will fight for the ____ of their members and put pressure on businesses to ____

Rights, change

Shareholders are the owners of a ____ company - most shareholders will have similar ____

Limited, objectives

____ shareholders want the business to be successful in the ____ run and will purchase high ____

Institutional, short, dividends

Directors and managers in a ____ organisation focus on achieving ____ term objectives

Large, long

When a business is successful, the government increases their ____ payments, create more ____ opportunities, and lower their ____ payments

Tax, employment, benefit

Market research is the process of gathering ____ and secondary data on customer buying ____ and lifestyles

Primary, habits

Primary research is data that does not previously ____, and is usually gathered through ____ and questionnaires

Exist, surveys

Secondary research is data that already exists, and can be found in books, on the ____, documents, etc

Internet

Quantitative research is data that can be ____ - it is ____ data that can be presented in ____

Measured, statistical, numbers

Qualitative data collects information about beliefs and ____ and is presented through words or ____

Intentions, pictures

A sample is a group of ____ to market research and represent the ____ of the research

Respondents, views

Sample size is important and must be large enough to be ____ valid - it is ____ to do large samples

Statistically, expensive

Quota sampling is sampling based on ____ of a group - the population is divided into certain ____

Characteristics, demographics

Random sampling is when every member of the ____ has an equal ____ of being chosen

Population, chance