Btec Business Revision Questions
and Answers | Latest Version |
2025/2026 | Correct & Verified
What is the main purpose of a business plan?
✔✔To outline business goals, strategies, and how the business will operate.
Why is market research important for a business?
✔✔It helps identify customer needs, market trends, and competition.
What is the difference between goods and services?
✔✔Goods are tangible products, while services are intangible and performed for customers.
Why do businesses need a mission statement?
✔✔To communicate their purpose, values, and overall goals.
What is the role of management in a business?
✔✔To plan, organize, lead, and control resources to achieve business objectives.
Why is effective communication important in a business?
✔✔It ensures clear understanding, reduces errors, and improves teamwork.
What is a sole trader?
1
,✔✔A business owned and run by one person who is personally responsible for debts.
Why might a business choose to become a partnership?
✔✔To share responsibilities, resources, and risks between two or more owners.
What is the difference between a private limited company and a public limited company?
✔✔A private limited company cannot sell shares to the public, while a public limited company
can.
Why is cash flow important for a business?
✔✔It ensures the business has enough money to pay expenses and continue operations.
What is the purpose of a SWOT analysis?
✔✔To identify strengths, weaknesses, opportunities, and threats to a business.
Why do businesses conduct a PESTLE analysis?
✔✔To assess external factors like political, economic, social, technological, legal, and
environmental influences.
What is the function of human resources in a business?
✔✔To manage recruitment, training, employee relations, and performance.
2
, Why is customer service important in business?
✔✔It improves customer satisfaction, loyalty, and reputation.
What is the difference between fixed costs and variable costs?
✔✔Fixed costs remain the same regardless of production, while variable costs change with
production levels.
Why is pricing strategy important for a business?
✔✔It helps maximize profit, attract customers, and remain competitive.
What is the purpose of a marketing mix?
✔✔To combine product, price, place, and promotion strategies to meet customer needs.
Why is market segmentation used?
✔✔To target specific groups of customers more effectively.
What is the role of leadership in a business?
✔✔To motivate, guide, and influence employees toward achieving organizational goals.
Why is ethical behavior important in business?
✔✔It builds trust, enhances reputation, and ensures compliance with laws.
3
and Answers | Latest Version |
2025/2026 | Correct & Verified
What is the main purpose of a business plan?
✔✔To outline business goals, strategies, and how the business will operate.
Why is market research important for a business?
✔✔It helps identify customer needs, market trends, and competition.
What is the difference between goods and services?
✔✔Goods are tangible products, while services are intangible and performed for customers.
Why do businesses need a mission statement?
✔✔To communicate their purpose, values, and overall goals.
What is the role of management in a business?
✔✔To plan, organize, lead, and control resources to achieve business objectives.
Why is effective communication important in a business?
✔✔It ensures clear understanding, reduces errors, and improves teamwork.
What is a sole trader?
1
,✔✔A business owned and run by one person who is personally responsible for debts.
Why might a business choose to become a partnership?
✔✔To share responsibilities, resources, and risks between two or more owners.
What is the difference between a private limited company and a public limited company?
✔✔A private limited company cannot sell shares to the public, while a public limited company
can.
Why is cash flow important for a business?
✔✔It ensures the business has enough money to pay expenses and continue operations.
What is the purpose of a SWOT analysis?
✔✔To identify strengths, weaknesses, opportunities, and threats to a business.
Why do businesses conduct a PESTLE analysis?
✔✔To assess external factors like political, economic, social, technological, legal, and
environmental influences.
What is the function of human resources in a business?
✔✔To manage recruitment, training, employee relations, and performance.
2
, Why is customer service important in business?
✔✔It improves customer satisfaction, loyalty, and reputation.
What is the difference between fixed costs and variable costs?
✔✔Fixed costs remain the same regardless of production, while variable costs change with
production levels.
Why is pricing strategy important for a business?
✔✔It helps maximize profit, attract customers, and remain competitive.
What is the purpose of a marketing mix?
✔✔To combine product, price, place, and promotion strategies to meet customer needs.
Why is market segmentation used?
✔✔To target specific groups of customers more effectively.
What is the role of leadership in a business?
✔✔To motivate, guide, and influence employees toward achieving organizational goals.
Why is ethical behavior important in business?
✔✔It builds trust, enhances reputation, and ensures compliance with laws.
3
