AS Level Business MCQs with answers
Practise AS Level Business (9609) with 383 exam-style MCQs, each with the answer and a short explanation. Every test is marked the moment you finish and shows your score chapter by chapter, so you know what to revise next. It is free and needs no sign-up.
383 questions · 5 chapters
What each chapter covers 5 chapters
The questions follow the syllabus chapter by chapter. You can test the whole subject or one chapter at a time.
- Business and its environment 85 questionsEnterprise, Business structure, Size of business, Business objectives, Stakeholders in a business
- Human resource management 72 questionsHuman resource management (HRM), Motivation, Management
- Marketing 72 questionsThe nature of marketing, Market research, The marketing mix
- Operations management 54 questionsThe nature of operations, Inventory management, Capacity utilisation and outsourcing
- Finance and accounting 100 questionsBusiness finance, Sources of finance, Forecasting and managing cash flows, Costs, Budgets
Sample AS Level Business MCQs with answers 12 questions
12 questions from the test, one or two from each chapter. Try each one, then open the answer.
1. Which event would most likely lead a firm to change its main objective from growth to survival?
- A
a rise in the firm's market share in its main market
- B
the launch of a new and very successful product
- C
a takeover of a smaller rival by the firm
- D
a sudden fall in demand caused by a recession
Show answer
Answer: D. Objectives change with circumstances. A serious fall in demand threatens the firm's finances so survival takes priority.
2. A manager decides how to divide a limited budget between two departments and negotiates a new contract with a supplier. Which of Mintzberg's role types is this?
- A
an interpersonal role
- B
an informational role
- C
a supervisory role
- D
a decisional role
Show answer
Answer: D. Allocating resources and negotiating are decisional roles, alongside entrepreneur and disturbance handler.
3. Which describes a niche market?
- A
the whole population of a country buying similar goods
- B
a market in which all of the products are identical
- C
a market in which there are no customers at all
- D
a small segment with specific needs
Show answer
Answer: D. Niche markets are small specialised parts of a larger market, such as luxury organic pet food.
4. Why might a business deliberately avoid operating at 100% capacity utilisation?
- A
it would result in the lowest possible fixed cost per unit
- B
it would make workers less productive by leaving them idle
- C
it leaves room for urgent orders and for maintenance
- D
full capacity use is illegal in most countries
Show answer
Answer: C. Running at 100% leaves no room for repairs, breakdowns or a sudden order, so quality and delivery can suffer. Lower fixed cost per unit is a benefit of high utilisation, not a reason to avoid it.
5. A retailer takes on a second shop, buying inventory and fitting out the premises. What reason for needing finance does this best illustrate?
- A
to survive a fall in sales
- B
to grow the business
- C
to start up the business
- D
to pay a dividend
Show answer
Answer: B. Finance to open new outlets or expand output is finance for growth. Start-up finance is needed to launch the first business, and survival finance keeps a firm going in difficulty.
6. How does a strategic alliance differ from a merger?
- A
the firms create a single company with one board
- B
one firm buys most of the shares in the other
- C
one firm sells the other firm's products under its brand name for a fee
- D
the firms cooperate on a project but stay separate companies
Show answer
Answer: D. In an alliance the businesses keep their own ownership and independence, whereas in a merger they combine.
7. A company pays the same rate to men and women doing the same job and promotes on merit. What is it demonstrating?
- A
multi-skilling of the workforce
- B
job rotation between departments
- C
collective bargaining with unions
- D
equality in the workplace
Show answer
Answer: D. Equal pay and promotion on merit demonstrate equality, which can improve morale and reduce the risk of legal claims.
8. A line graph of a firm's monthly sales shows a peak every December and higher sales each year. Which conclusion is supported?
- A
sales are falling from one year to the next
- B
sales are the same in every month of the year
- C
the firm has no seasonal pattern in its sales
- D
sales are seasonal and have an upward trend
Show answer
Answer: D. A regular December peak indicates seasonality, and rising levels each year indicate an upward trend.
9. A business changes from JIC to JIT inventory management. What is the likely effect on its working capital?
- A
the business requires a larger overdraft to pay for storage
- B
trade payables become smaller as suppliers are paid
- C
more cash is tied up in inventory held in the warehouse
- D
less cash is tied up in stock, so more is available
Show answer
Answer: D. Lower inventory means less money is invested in stock, releasing cash and reducing the need for short-term finance. This benefit must be weighed against the risk of stock-outs.
10. On a break-even chart, what is shown at the point where the total revenue line crosses the total cost line?
- A
the break-even point, with no profit and no loss
- B
the margin of safety of the business at that output
- C
the level of the fixed costs of the business
- D
the maximum profit that the business can earn
Show answer
Answer: A. At the crossing point revenue equals total costs. To the right revenue is higher, so there is profit; to the left there is a loss.
11. A sole trader is considering converting to a private limited company. Which is a likely advantage?
- A
the accounts no longer have to be prepared
- B
the owner keeps full control of decisions without consulting anyone
- C
the owner's personal assets are protected by limited liability
- D
the business can sell shares to the public on a stock exchange
Show answer
Answer: C. Limited liability is the main attraction, and it also makes raising capital from selling shares easier. However, the company must follow more legal rules, and shares are not offered to the public.
12. The Hawthorne experiments, associated with Elton Mayo, found that output rose when
- A
pay was cut for all of the workers involved
- B
supervision was completely removed from the workplace
- C
workers felt valued as part of a group
- D
the workers were kept apart from each other at work
Show answer
Answer: C. Mayo concluded that attention, social relations and group membership were important motivators, not just pay and physical conditions.
Try 371 more questions
Ways to practise 5 ways
- Quick check. 10 questions drawn fresh each time, about 10 minutes.
- By chapter. 10 questions from one chapter, for the topic you are revising now.
- Full paper. A full-length timed paper across the whole syllabus.
- Practice mode. See the right answer and an explanation after every question, with no clock.
- Exam mode. Timed like the real paper, with no going back.
Common questions
Is this AS Level Business test free?
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Are these past paper questions?
The 383 MCQs are our own, written to the syllabus in the style of the exam.
How is the test marked?
Instantly. You get your score, the right answer and an explanation for every question, and a list of the topics to work on.
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