©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Edexcel GCSE Business Paper 2 Exam
Questions With Verified Answers
What's intrernal growth? - Answers✔When a business expands by itself
What are methods of internal growth? - Answers✔New markets
New products
New technology
What is external/inorganic growth? - Answers✔Business growth by joining forces with another
What are the 2 types of inorganic growth? - Answers✔Merger
Takeover
What is a merger and a takeover? - Answers✔Merger = 2+ businesses voluntarily agree to join
up and work as one
Takeover = when 1 business buys another (buying 50%+ shares)
What is a PLC? - Answers✔a business that can sell shares on the stock exchange
What are the pros and cons of being a PLC? - Answers✔+ limited liability
+ a lot of capital can be raised
- Risk of takeover
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
- accounts have to be made public so less privacy around financial performance
What are examples of internal finance sources? - Answers✔Sale of assets
Retained profit
What are examples of external finance sources? - Answers✔Loan capital
Share capital
What are dividends? - Answers✔a sum of money paid regularly by a company to its shareholders
out of its profits
What is globalisation? - Answers✔When a business operates internationally + they become more
connected
How does globalisation affect businesses? - Answers✔imports (lower prices of products and raw
materials than they would be able to produce in the UK)
Exports (new international markets)
where the business is located
What is a multinational? - Answers✔Large company with facilities and markets around the
world
What are the pros and cons of globalisation? - Answers✔+ new market opportunities
+ access to tech and resources
- threat from foreign competition
- challenge of adapting products and services to meet the needs of foreign consumers
What are the trade barriers? - Answers✔Tariffs (taxes on imports)
2
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Trade blocs (promoting trade between a small group of countries)
Why are trade barriers needed? - Answers✔Protect jobs in domestic industries
tariffs help domestic firms stay competitive
What are ethics in buisneses? - Answers✔Moral principles that guide the behaviours of
individuals and businesses
How can businesses reduce the impact on the environment? - Answers✔Use renewable energy
Reduce food miles
Use biodegradable packaging
How might pressure groups impact a business? - Answers✔they could run a campaign against
the business causing bad publicity and forcing them to change their marketing mix (e.g make
product more ethical)
What is the trade off of acting ethically and environmentally? - Answers✔- implementing this
can be costly
+ it can attract more customers and improve brand image
What is the design mix? - Answers✔
What are the stages in the product life cycle? - Answers✔
What are extension strategies? - Answers✔Attempts to maintain the sales of a product and
prevent it from entering the decline stage of the product life cycle.
What are examples of extension strategies? - Answers✔New marketing campaign
Adding new features to the product
Changing the packaging
3
ALL RIGHTS RESERVED.
Edexcel GCSE Business Paper 2 Exam
Questions With Verified Answers
What's intrernal growth? - Answers✔When a business expands by itself
What are methods of internal growth? - Answers✔New markets
New products
New technology
What is external/inorganic growth? - Answers✔Business growth by joining forces with another
What are the 2 types of inorganic growth? - Answers✔Merger
Takeover
What is a merger and a takeover? - Answers✔Merger = 2+ businesses voluntarily agree to join
up and work as one
Takeover = when 1 business buys another (buying 50%+ shares)
What is a PLC? - Answers✔a business that can sell shares on the stock exchange
What are the pros and cons of being a PLC? - Answers✔+ limited liability
+ a lot of capital can be raised
- Risk of takeover
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
- accounts have to be made public so less privacy around financial performance
What are examples of internal finance sources? - Answers✔Sale of assets
Retained profit
What are examples of external finance sources? - Answers✔Loan capital
Share capital
What are dividends? - Answers✔a sum of money paid regularly by a company to its shareholders
out of its profits
What is globalisation? - Answers✔When a business operates internationally + they become more
connected
How does globalisation affect businesses? - Answers✔imports (lower prices of products and raw
materials than they would be able to produce in the UK)
Exports (new international markets)
where the business is located
What is a multinational? - Answers✔Large company with facilities and markets around the
world
What are the pros and cons of globalisation? - Answers✔+ new market opportunities
+ access to tech and resources
- threat from foreign competition
- challenge of adapting products and services to meet the needs of foreign consumers
What are the trade barriers? - Answers✔Tariffs (taxes on imports)
2
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Trade blocs (promoting trade between a small group of countries)
Why are trade barriers needed? - Answers✔Protect jobs in domestic industries
tariffs help domestic firms stay competitive
What are ethics in buisneses? - Answers✔Moral principles that guide the behaviours of
individuals and businesses
How can businesses reduce the impact on the environment? - Answers✔Use renewable energy
Reduce food miles
Use biodegradable packaging
How might pressure groups impact a business? - Answers✔they could run a campaign against
the business causing bad publicity and forcing them to change their marketing mix (e.g make
product more ethical)
What is the trade off of acting ethically and environmentally? - Answers✔- implementing this
can be costly
+ it can attract more customers and improve brand image
What is the design mix? - Answers✔
What are the stages in the product life cycle? - Answers✔
What are extension strategies? - Answers✔Attempts to maintain the sales of a product and
prevent it from entering the decline stage of the product life cycle.
What are examples of extension strategies? - Answers✔New marketing campaign
Adding new features to the product
Changing the packaging
3
