IGCSE Business Studies: Multiple Choice Questions (Cambridge CIE)

IGCSE Business Studies: Multiple Choice Questions

This section contains 20 multiple-choice questions to test your knowledge of IGCSE Business Studies concepts as per the Cambridge (CIE) syllabus.

1. Question 1: Business Activity

   Which of the following is NOT a primary sector business activity?

   • A) Fishing
   • B) Mining
   • C) Car manufacturing
   • D) Agriculture

2. Question 2: Stakeholders

   Who among the following is considered an internal stakeholder of a business?

   • A) Customers
   • B) Suppliers
   • C) Employees
   • D) Government

3. Question 3: Business Objectives

   A business aiming to increase its market share is pursuing which type of objective?

   • A) Profit maximisation
   • B) Social responsibility
   • C) Growth
   • D) Survival

4. Question 4: Economies of Scale

   Bulk buying is an example of which type of economy of scale?

   • A) Technical
   • B) Managerial
   • C) Marketing
   • D) Purchasing

5. Question 5: Types of Business Organisation

   Which business type has unlimited liability for its owner(s)?

   • A) Public limited company
   • B) Private limited company
   • C) Sole trader
   • D) Franchise

6. Question 6: Marketing Mix

   The 'Place' aspect of the marketing mix refers to:

   • A) The price of the product
   • B) How the product is distributed to customers
   • C) The promotional activities
   • D) The physical attributes of the product

7. Question 7: Market Research

   Collecting data directly from customers through surveys is an example of:

   • A) Secondary research
   • B) Quantitative research
   • C) Primary research
   • D) Qualitative research

8. Question 8: Pricing Strategies

   Setting a low price for a new product to quickly gain market share is known as:

   • A) Penetration pricing
   • B) Price skimming
   • C) Differentiated pricing
   • D) Cost-plus pricing

9. Question 9: Human Resources

   The process of attracting, selecting, and appointing suitable candidates for jobs within an organisation is called:

   • A) Training
   • B) Recruitment
   • C) Motivation
   • D) Appraisal

10. Question 10: Motivation Theories

    According to Maslow's Hierarchy of Needs, which need must be satisfied before safety needs?

    • A) Esteem needs
    • B) Physiological needs
    • C) Social needs
    • D) Self-actualisation needs

11. Question 11: Sources of Finance

    Which of the following is a source of long-term finance for a large company?

    • A) Bank overdraft
    • B) Trade credit
    • C) Retained earnings
    • D) Factoring

12. Question 12: Financial Statements

    The document that shows a business's assets, liabilities, and capital at a specific point in time is the:

    • A) Income Statement
    • B) Cash Flow Statement
    • C) Balance Sheet
    • D) Budget

13. Question 13: Break-Even Analysis

    The formula for the break-even point in units is:

    • A) Total Fixed Costs / (Selling Price per Unit - Variable Costs per Unit)
    • B) Total Revenue - Total Costs
    • C) Selling Price per Unit x Quantity
    • D) Total Variable Costs / Total Fixed Costs

14. Question 14: Quality Control

    Inspecting products at the end of the production process to ensure they meet standards is known as:

    • A) Quality assurance
    • B) Total quality management (TQM)
    • C) Quality control
    • D) Kaizen

15. Question 15: Operations Management

    The use of machinery and equipment to perform tasks that would otherwise be done by humans is:

    • A) Job production
    • B) Automation
    • C) Lean production
    • D) Inventory control

16. Question 16: External Influences

    Changes in interest rates are an example of which external influence on business?

    • A) Social
    • B) Technological
    • C) Economic
    • D) Legal

17. Question 17: Globalisation

    The increasing interdependence of world economies is referred to as:

    • A) Localisation
    • B) Globalisation
    • C) Protectionism
    • D) Regionalisation

18. Question 18: Ethical Considerations

    A business choosing to use environmentally friendly packaging is demonstrating:

    • A) Profit maximisation
    • B) Ethical behaviour
    • C) Market leadership
    • D) Cost reduction

19. Question 19: Communication

    Which of the following is an example of downward communication?

    • A) Employee feedback to manager
    • B) Manager instructing employee
    • C) Departmental meeting discussion
    • D) Informal chat between colleagues

20. Question 20: Business Growth

    When a business takes over another business at the same stage of production, it is known as:

    • A) Vertical integration backward
    • B) Horizontal integration
    • C) Vertical integration forward
    • D) Diversification

Answer Key

1. C
2. C
3. C
4. D
5. C
6. B
7. C
8. A
9. B
10. B
11. C
12. C
13. A
14. C
15. B
16. C
17. B
18. B
19. B
20. B