Edexcel A Level Business: Paper 3 (Advanced
Information) EXAM QUESTIONS WITH
CORRECT ANSWERS.
Administrative barriers - CORRECT ANSWERS✔✔Rules and regulations (such as trading standards and
strict specifications) that make it difficult for importers to penetrate an overseas market
Anti-competitive or restrictive practices - CORRECT ANSWERS✔✔Attempts by firms to prevent or
restrict competition
appreciation of currency - CORRECT ANSWERS✔✔a rise in the price of one currency relative to another
Apprenticeship - CORRECT ANSWERS✔✔a combination of classroom instruction and on-the-job training
as a novice learns a trade or skills from other skilled workers.
Auction Sites - CORRECT ANSWERS✔✔Web-based businesses offering participants the ability to list
products for consumer bidding for a fee.
Average Rate of Return (ARR) - CORRECT ANSWERS✔✔Measures the annual net return on an
investment as a percentage of its initial cost
Average Rate of Return Formula - CORRECT ANSWERS✔✔Net return (profit) per annum / Capital Outlay
(cost) x 100
Barriers to entry - CORRECT ANSWERS✔✔obstacles to competition that prevent others from entering a
market
Base rate - CORRECT ANSWERS✔✔the rate of interest established by the Bank of England around which
commercial banks e.g. Natwest, HSBC structure their own interest rates.
, Boom - CORRECT ANSWERS✔✔A time of fast economic growth where GDP is growing at its fastest.
Business confidence - CORRECT ANSWERS✔✔a measure of the degree of optimism of firms regarding
the future of the economy. The more optimistic they are about the future the more likely they are to
take risks and to investment in new projects.
Capacity - CORRECT ANSWERS✔✔the maximum amount that a business is capable of producing with
existing resources.
Capacity utilisation - CORRECT ANSWERS✔✔The proportion of maximum output capacity currently
being achieved.
Capacity utilisation formula - CORRECT ANSWERS✔✔Current output/maximum possible output x 100
Capital Cost - CORRECT ANSWERS✔✔The amount of money spent when setting up a new venture
Colluding - CORRECT ANSWERS✔✔In business, where several businesses (or countries) make
agreements among themselves which benefit them at the expense of either rival businesses or
customers
Collusion - CORRECT ANSWERS✔✔two or more businesses agreeing to a restrictive practice such as
price fixing.
Competitive Market - CORRECT ANSWERS✔✔a market in which there are many buyers and many sellers
so that each has a negligible impact on the market price
Competitive Pricing - CORRECT ANSWERS✔✔When the product is priced in line with or just below
competitors' prices to try to capture more of the market.
Information) EXAM QUESTIONS WITH
CORRECT ANSWERS.
Administrative barriers - CORRECT ANSWERS✔✔Rules and regulations (such as trading standards and
strict specifications) that make it difficult for importers to penetrate an overseas market
Anti-competitive or restrictive practices - CORRECT ANSWERS✔✔Attempts by firms to prevent or
restrict competition
appreciation of currency - CORRECT ANSWERS✔✔a rise in the price of one currency relative to another
Apprenticeship - CORRECT ANSWERS✔✔a combination of classroom instruction and on-the-job training
as a novice learns a trade or skills from other skilled workers.
Auction Sites - CORRECT ANSWERS✔✔Web-based businesses offering participants the ability to list
products for consumer bidding for a fee.
Average Rate of Return (ARR) - CORRECT ANSWERS✔✔Measures the annual net return on an
investment as a percentage of its initial cost
Average Rate of Return Formula - CORRECT ANSWERS✔✔Net return (profit) per annum / Capital Outlay
(cost) x 100
Barriers to entry - CORRECT ANSWERS✔✔obstacles to competition that prevent others from entering a
market
Base rate - CORRECT ANSWERS✔✔the rate of interest established by the Bank of England around which
commercial banks e.g. Natwest, HSBC structure their own interest rates.
, Boom - CORRECT ANSWERS✔✔A time of fast economic growth where GDP is growing at its fastest.
Business confidence - CORRECT ANSWERS✔✔a measure of the degree of optimism of firms regarding
the future of the economy. The more optimistic they are about the future the more likely they are to
take risks and to investment in new projects.
Capacity - CORRECT ANSWERS✔✔the maximum amount that a business is capable of producing with
existing resources.
Capacity utilisation - CORRECT ANSWERS✔✔The proportion of maximum output capacity currently
being achieved.
Capacity utilisation formula - CORRECT ANSWERS✔✔Current output/maximum possible output x 100
Capital Cost - CORRECT ANSWERS✔✔The amount of money spent when setting up a new venture
Colluding - CORRECT ANSWERS✔✔In business, where several businesses (or countries) make
agreements among themselves which benefit them at the expense of either rival businesses or
customers
Collusion - CORRECT ANSWERS✔✔two or more businesses agreeing to a restrictive practice such as
price fixing.
Competitive Market - CORRECT ANSWERS✔✔a market in which there are many buyers and many sellers
so that each has a negligible impact on the market price
Competitive Pricing - CORRECT ANSWERS✔✔When the product is priced in line with or just below
competitors' prices to try to capture more of the market.
