CCEA A-Level Business Studies A2 2 The Competitive Business Environment overview quiz quiz

An advantage over rivals that lets a firm outperform them

The total amount of profit a business makes in a year

The number of competitors operating in a market

The legal protection a business has from regulation

Perfect competition

Monopoly

Oligopoly

Monopolistic competition

Becoming the lowest-cost producer in the market

Cutting its prices below those of every rival

Reducing the quality of its product to save money

Building a strong brand and superior customer service

Demand and sales fall, especially for non-essential goods

Consumer spending and confidence rise sharply

Inflation and wages always rise quickly

Unemployment falls to very low levels

It raises demand because saving becomes less attractive

It reduces demand because customers have less to spend after higher repayments

It has no effect at all on consumer demand

It only affects businesses, never consumers

Makes exports cheaper and imports more expensive

Makes both exports and imports more expensive

Makes imports cheaper and exports more expensive

Has no effect on either exports or imports

Changing government spending and taxation

Setting the central bank's base interest rate

Controlling the money supply

Adjusting the exchange rate directly

A business that trades only within its home country

A business owned entirely by the government

A business that owns or controls operations in more than one country

A small business that exports occasionally

Access to much larger international markets

Greater competition from overseas low-cost producers

The ability to source materials more cheaply abroad

Greater economies of scale from a bigger market

To guarantee every business makes a profit

To prevent anti-competitive behaviour such as price-fixing and abuse of monopoly power

To set the minimum wage that firms must pay

To require firms to advertise their products

Health and safety law

Competition law

Employment law

Consumer protection law

It removes all costs from the business

It protects reputation and avoids fines and legal action

It guarantees higher sales every year

It exempts the firm from paying any tax

A business acting in the interests of society and the environment, not just profit

A business focusing solely on maximising shareholder profit

A legal requirement to donate a fixed share of profit to charity

A government department that inspects businesses

Maximising output regardless of environmental cost

Meeting present needs without compromising future generations

Always choosing the cheapest possible materials

Avoiding any investment in new technology

Responsibility always increases profit immediately

Responsibility and profit are completely unrelated

Acting responsibly can raise short-term costs but bring long-term benefits

Responsibility only matters for very large businesses