NCUK BUSINESS EXAM QUESTIONS AND ANSWERS LATEST UPDATE 2025 GRADED A+
What is added value?
What is the formula for Added value - Answers - The difference between the selling 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 product 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? - Answers - Good after sales
- Shorter time period/ Convenience
- Better quality
- Good branding
- Design
- Unique selling point NCUK BUSINESS EXAM QUESTIONS AND ANSWERS LATEST UPDATE 2025 GRADED
A+AND
- Unique work e.g ( A cake design you can't get anywhere else)
What is a unique selling point (USP) - Answers 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 ? - Answers 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? - Answers land, labor, capital, enterprise
Land- these are natural resources that are used in production e.g farm land, water 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 - Answers 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 ? - Answers - 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? - Answers 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 - Answers Internal- Human Resources, Financing, Technology
External - PESTLE (Political, Economic, Social, Technological, Legal, Environmental)
What are business objectives? - Answers The aims or targets that a business works towards. These are
tailored or specific goals of a business.
- The difference between business sim and objective is that aims are
What are the different types of business objectives. - Answers - Survival, Profit maximisation, Growth,
CSR( Corporate Social responsibility) , Improving cash flow, 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 - Answers SMART
objectives- Specific, Measurable, Achievable, Realistic, Time-bound.
MOST- Mission, Objectives, Strategies and Tactics
What are the qualities of Successful entrepreneurs? - Answers Diligence, Innovation, Communication,
leadership, Emotional intelligence, Passion.
An entrepreneur is a risk taker that manages all factors of production in order to produce goods and
services.
Why would a businesses objective change over time? - Answers Business objectives change mostly
according to consumer trends. When consumers 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 ? - Answers 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? - Answers - Increases focus
- Motivates staff
- co- ordinate business activity
What is added value?
What is the formula for Added value - Answers - The difference between the selling 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 product 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? - Answers - Good after sales
- Shorter time period/ Convenience
- Better quality
- Good branding
- Design
- Unique selling point NCUK BUSINESS EXAM QUESTIONS AND ANSWERS LATEST UPDATE 2025 GRADED
A+AND
- Unique work e.g ( A cake design you can't get anywhere else)
What is a unique selling point (USP) - Answers 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 ? - Answers 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? - Answers land, labor, capital, enterprise
Land- these are natural resources that are used in production e.g farm land, water 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 - Answers 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 ? - Answers - 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? - Answers 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 - Answers Internal- Human Resources, Financing, Technology
External - PESTLE (Political, Economic, Social, Technological, Legal, Environmental)
What are business objectives? - Answers The aims or targets that a business works towards. These are
tailored or specific goals of a business.
- The difference between business sim and objective is that aims are
What are the different types of business objectives. - Answers - Survival, Profit maximisation, Growth,
CSR( Corporate Social responsibility) , Improving cash flow, 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 - Answers SMART
objectives- Specific, Measurable, Achievable, Realistic, Time-bound.
MOST- Mission, Objectives, Strategies and Tactics
What are the qualities of Successful entrepreneurs? - Answers Diligence, Innovation, Communication,
leadership, Emotional intelligence, Passion.
An entrepreneur is a risk taker that manages all factors of production in order to produce goods and
services.
Why would a businesses objective change over time? - Answers Business objectives change mostly
according to consumer trends. When consumers 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 ? - Answers 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? - Answers - Increases focus
- Motivates staff
- co- ordinate business activity
