NCUK BUSINESS Exam Questions and
answers 2025
What .is .added .value?
What .is .the .formula .for .Added .value .- .ANS✓✓-- .The .difference .between .the .sell
ing .price .of .a .product .and .the .cost .of .bought .in .materials .and .components.
- .Selling .Price .- .Direct .costs .
- .Added .value .is .also .the .ways .in .which .a .company .increases .the .value .of .a .pr
oduct .so .as .to .justify .a .higher .price .range. .
Note: .Direct .costs .are .costs .that .are .expressly .linked .to .production.
What .are .the .ways .businesses .add .value? .- .ANS✓✓-- .Good .after .sales .
- .Shorter .time .period/ .Convenience
- .Better .quality .
- .Good .branding .
- .Design .
- .Unique .selling .point .
- .Unique .work .e.g .( .A .cake .design .you .can't .get .anywhere .else)
What .is .a .unique .selling .point .(USP) .- .ANS✓✓-
This .is .a .feature .of .a .product .which .differentiates .it .from .its .competitors .and .is
.appealing .customers. .
Examples: .Organic .produce, .Catchy .slogan, .locally .sourced, .homegrown .etc .
Apples .Operating .system .is .a .USP .
KFC's .famous .slogan .constitutes .as .a .USP
What .is .a .business .? .What .is .the .purpose .of .business .activity .? .- .ANS✓✓-
A .business .is .an .organisation .that .provides .goods .and .services. .The .purposes .
of .businesses .are: .
I) .Provide .goods .and .services .
II) .Wealth .creation .( .Through .paying .salaries .and .tax)
What .are .the .four .factors .of .production? .- .ANS✓✓-
land, .labor, .capital, .enterprise .
Land- .these .are .natural .resources .that .are .used .in .production .e.g .farm .land, .wa
ter .body: .Reward .is .rent
Labour- .these .are .Human .Resources .: .reward .is .salary/ .wage .
Capital- .manufactured .resources .e.g .machinery: .reward .is .interest .
,Enterprise- .the .factor .that .organises .all .other .factors .and .takes .risks: .reward .is
.profits
What .is .primary ., .secondary .and .tertiary .production .- .ANS✓✓-
Primary .production .deals .with .raw .materials .
Secondary .production .deals .with .semi- .finished .goods .
Tertiary .production .- .deals .with .services
What .are .the .four .functional .areas .of .business .? .- .ANS✓✓-- .Human .Resource .
management .- .deals .with .labour .
- .Operations .- .deals .with .production .
- .Finance .- .deals .with .cash .flow .
- .Marketing .- .deals .with .trying .to .promote .and .achieve .objectives.
What .is .the .dynamic .nature .of .business? .- .ANS✓✓-
This .refers .to .the .ever .changing .business .landscape .in .regards .to .the .internal .
and .external .factors .which .affect .a .business.
What .are .some .factors .affecting .business .? .
Both .external .and .internal .- .ANS✓✓-
Internal- .Human .Resources, .Financing, .Technology .
External .- .PESTLE .
(Political, .Economic, .Social, .Technological, .Legal, .Environmental)
What .are .business .objectives? .- .ANS✓✓-
The .aims .or .targets .that .a .business .works .towards. .These .are .tailored .or .specif
ic .goals .of .a .business. .
- .The .difference .between .business .sim .and .objective .is .that .aims .are
What .are .the .different .types .of .business .objectives. .- .ANS✓✓-- .Survival, .Profit .
maximisation, .Growth, .CSR( .Corporate .Social .responsibility) ., .Improving .cash .fl
ow, .staff .retention, .increasing .share .holder .value, .diversifying .product.
Explain .the .following .Acronyms .pertaining .to .Objectives- .S.M.A.R.T .and .M.O.S.
T .- .ANS✓✓-
SMART .objectives- .Specific, .Measurable, .Achievable, .Realistic, .Time-bound. .
MOST- .Mission, .Objectives, .Strategies .and .Tactics
What .are .the .qualities .of .Successful .entrepreneurs? .- .ANS✓✓-
Diligence, .Innovation, .Communication, .leadership, .Emotional .intelligence, .Passi
on.
An .entrepreneur .is .a .risk .taker .that .manages .all .factors .of .production .in .order .t
o .produce .goods .and .services.
Why .would .a .businesses .objective .change .over .time? .- .ANS✓✓-
Business .objectives .change .mostly .according .to .consumer .trends. .When .consu
mers .change .a .business .will .change .with .it. .For .example, .more .consumers .are .
, concerned .with .the .environment. .A .business .will .have .to .tailor .its .objectives .to
.align .with .that.
What .are .the .advantages .and .Disadvantages .of .CSR .? .- .ANS✓✓-Advantages .
-) .Attracts .new .customers .
-) .increases .customer .retention .
-) .Increases .profitability .(CSR .leads .to .high .pricing)
-) .Increased .Brand .Recognition .(It's .own .form .of .PR) .
-) .Leads .to .growth .of .an .organisation .(tapping .into .new .market .e.g .Vegan) .
-) .Attracts .passionate .staff .
Disadvantages .
-) .It .negatively .impacts .competitiveness .(For .smaller .corporations) .
-) .It's .costly .to .implement .
-) .Contrasting .stake .holder .interest .
-) .Increased .scrutiny
Why .are .business .objectives .important? .- .ANS✓✓-- .Increases .focus .
- .Motivates .staff .
- .co- .ordinate .business .activity .
- .They .serve .as .a .reminder .of .what's .importance .
- .Gives .clear .instructions .of .aims
What .is .a .business .plan? .- .ANS✓✓-
a .document .that .outlines .a .proposed .firm's .goals, .the .strategy .for .achieving .the
m, .and .the .standards .for .measuring .success. .It .also .comprises .of .mission .state
ment. .
- .Business .plans .can .be .used .to .secure .loans .and .attract .investors
What .are .stakeholders? .Why .are .they .important? .What .role .do .they .play .in .stra
tegic .management? .- .ANS✓✓-
Stakeholders .are .individuals .or .factors .affected .by .a .firms .decisions. .
Stakeholders .are .the .individuals, .groups, .and .organizations .that .can .affect .the .f
irm's .vision .and .mission, .are .affected .by .the .strategic .outcomes .achieved, .and .
have .enforceable .claims .on .the .firm's .performance.
Stakeholders .continue .to .support .an .organization .when .its .performance .meets .
or .exceeds .their .expectations. .Also, .research .suggests .that .firms .that .effectivel
y .manage .stakeholder .relationships .outperform .those .that .do .not. .Stakeholder .r
elationships .and .the .firm's .overall .reputation .among .stakeholders .can .therefore
.be .a .source .of .competitive .advantage.
What .are .internal .and .external .stakeholders? .- .ANS✓✓-
Internal .stakeholders .are .stakeholders .from .within .the .business- .Employees .an
d .Employers .
answers 2025
What .is .added .value?
What .is .the .formula .for .Added .value .- .ANS✓✓-- .The .difference .between .the .sell
ing .price .of .a .product .and .the .cost .of .bought .in .materials .and .components.
- .Selling .Price .- .Direct .costs .
- .Added .value .is .also .the .ways .in .which .a .company .increases .the .value .of .a .pr
oduct .so .as .to .justify .a .higher .price .range. .
Note: .Direct .costs .are .costs .that .are .expressly .linked .to .production.
What .are .the .ways .businesses .add .value? .- .ANS✓✓-- .Good .after .sales .
- .Shorter .time .period/ .Convenience
- .Better .quality .
- .Good .branding .
- .Design .
- .Unique .selling .point .
- .Unique .work .e.g .( .A .cake .design .you .can't .get .anywhere .else)
What .is .a .unique .selling .point .(USP) .- .ANS✓✓-
This .is .a .feature .of .a .product .which .differentiates .it .from .its .competitors .and .is
.appealing .customers. .
Examples: .Organic .produce, .Catchy .slogan, .locally .sourced, .homegrown .etc .
Apples .Operating .system .is .a .USP .
KFC's .famous .slogan .constitutes .as .a .USP
What .is .a .business .? .What .is .the .purpose .of .business .activity .? .- .ANS✓✓-
A .business .is .an .organisation .that .provides .goods .and .services. .The .purposes .
of .businesses .are: .
I) .Provide .goods .and .services .
II) .Wealth .creation .( .Through .paying .salaries .and .tax)
What .are .the .four .factors .of .production? .- .ANS✓✓-
land, .labor, .capital, .enterprise .
Land- .these .are .natural .resources .that .are .used .in .production .e.g .farm .land, .wa
ter .body: .Reward .is .rent
Labour- .these .are .Human .Resources .: .reward .is .salary/ .wage .
Capital- .manufactured .resources .e.g .machinery: .reward .is .interest .
,Enterprise- .the .factor .that .organises .all .other .factors .and .takes .risks: .reward .is
.profits
What .is .primary ., .secondary .and .tertiary .production .- .ANS✓✓-
Primary .production .deals .with .raw .materials .
Secondary .production .deals .with .semi- .finished .goods .
Tertiary .production .- .deals .with .services
What .are .the .four .functional .areas .of .business .? .- .ANS✓✓-- .Human .Resource .
management .- .deals .with .labour .
- .Operations .- .deals .with .production .
- .Finance .- .deals .with .cash .flow .
- .Marketing .- .deals .with .trying .to .promote .and .achieve .objectives.
What .is .the .dynamic .nature .of .business? .- .ANS✓✓-
This .refers .to .the .ever .changing .business .landscape .in .regards .to .the .internal .
and .external .factors .which .affect .a .business.
What .are .some .factors .affecting .business .? .
Both .external .and .internal .- .ANS✓✓-
Internal- .Human .Resources, .Financing, .Technology .
External .- .PESTLE .
(Political, .Economic, .Social, .Technological, .Legal, .Environmental)
What .are .business .objectives? .- .ANS✓✓-
The .aims .or .targets .that .a .business .works .towards. .These .are .tailored .or .specif
ic .goals .of .a .business. .
- .The .difference .between .business .sim .and .objective .is .that .aims .are
What .are .the .different .types .of .business .objectives. .- .ANS✓✓-- .Survival, .Profit .
maximisation, .Growth, .CSR( .Corporate .Social .responsibility) ., .Improving .cash .fl
ow, .staff .retention, .increasing .share .holder .value, .diversifying .product.
Explain .the .following .Acronyms .pertaining .to .Objectives- .S.M.A.R.T .and .M.O.S.
T .- .ANS✓✓-
SMART .objectives- .Specific, .Measurable, .Achievable, .Realistic, .Time-bound. .
MOST- .Mission, .Objectives, .Strategies .and .Tactics
What .are .the .qualities .of .Successful .entrepreneurs? .- .ANS✓✓-
Diligence, .Innovation, .Communication, .leadership, .Emotional .intelligence, .Passi
on.
An .entrepreneur .is .a .risk .taker .that .manages .all .factors .of .production .in .order .t
o .produce .goods .and .services.
Why .would .a .businesses .objective .change .over .time? .- .ANS✓✓-
Business .objectives .change .mostly .according .to .consumer .trends. .When .consu
mers .change .a .business .will .change .with .it. .For .example, .more .consumers .are .
, concerned .with .the .environment. .A .business .will .have .to .tailor .its .objectives .to
.align .with .that.
What .are .the .advantages .and .Disadvantages .of .CSR .? .- .ANS✓✓-Advantages .
-) .Attracts .new .customers .
-) .increases .customer .retention .
-) .Increases .profitability .(CSR .leads .to .high .pricing)
-) .Increased .Brand .Recognition .(It's .own .form .of .PR) .
-) .Leads .to .growth .of .an .organisation .(tapping .into .new .market .e.g .Vegan) .
-) .Attracts .passionate .staff .
Disadvantages .
-) .It .negatively .impacts .competitiveness .(For .smaller .corporations) .
-) .It's .costly .to .implement .
-) .Contrasting .stake .holder .interest .
-) .Increased .scrutiny
Why .are .business .objectives .important? .- .ANS✓✓-- .Increases .focus .
- .Motivates .staff .
- .co- .ordinate .business .activity .
- .They .serve .as .a .reminder .of .what's .importance .
- .Gives .clear .instructions .of .aims
What .is .a .business .plan? .- .ANS✓✓-
a .document .that .outlines .a .proposed .firm's .goals, .the .strategy .for .achieving .the
m, .and .the .standards .for .measuring .success. .It .also .comprises .of .mission .state
ment. .
- .Business .plans .can .be .used .to .secure .loans .and .attract .investors
What .are .stakeholders? .Why .are .they .important? .What .role .do .they .play .in .stra
tegic .management? .- .ANS✓✓-
Stakeholders .are .individuals .or .factors .affected .by .a .firms .decisions. .
Stakeholders .are .the .individuals, .groups, .and .organizations .that .can .affect .the .f
irm's .vision .and .mission, .are .affected .by .the .strategic .outcomes .achieved, .and .
have .enforceable .claims .on .the .firm's .performance.
Stakeholders .continue .to .support .an .organization .when .its .performance .meets .
or .exceeds .their .expectations. .Also, .research .suggests .that .firms .that .effectivel
y .manage .stakeholder .relationships .outperform .those .that .do .not. .Stakeholder .r
elationships .and .the .firm's .overall .reputation .among .stakeholders .can .therefore
.be .a .source .of .competitive .advantage.
What .are .internal .and .external .stakeholders? .- .ANS✓✓-
Internal .stakeholders .are .stakeholders .from .within .the .business- .Employees .an
d .Employers .
