business studies mock mistakes

Question 1

what is a impact of a decrease in interest rates

Answer 1

customers will borrow more money

Question 2

explain one way the internet may affect where a small business chooses to allocate

Answer 2

• could chose cheaper location- e commerce
  -good internet connection- communicate with stakeholdres
  -barriers in communication

Question 3

explain on disadvantage to a small business of not paying its employees on time

Answer 3

the employees will be mad and can quit leading to less workers therefore a decrease in profit would happen

Question 4

discuss the impact on a small business from adapting existing products todevelop new businesses ideas

Answer 4

• may not be as innovative
• may not meet customers needs
• increase waste of money

Question 5

explain one impact on a business using flow production

Answer 5

Flow production reduces the lead time, as items move along a continuous flow of automated machines. A short lead-time means that the product can be delivered more quickly, which improves customer satisfaction

Question 6

explain one reason why business may decide to reduce the size of its workforce

Answer 6

-help to reduce overrall business costs

Question 7

explain one disadvantage to a business of having poor relationship with its suppliers

Answer 7

• lack of transparency
  -if the buyer and supplier relationship isn’t open and transparent, this can lead to a misunderstanding of business needs. If the correct information isn’t shared between each party, this can mean that vital business opportunities could be missed.

Question 8

give one stage of the sales process

Answer 8

• presentation
  -preparation
  -approach

Question 9

define the term person specification

Answer 9

a description of the qualifications, skills, experience, knowledge and other attributes (selection criteria) which a candidate must possess to perform the job duties.

Question 10

define the term quality control

Answer 10

how a company measures product quality and improves it if need be.

Question 11

state one reason why a business may provide induction training for new employees

Answer 11

-new employees are more familiar

Question 12

state one reason why a business would employ temporary staff

Answer 12

a busy time of the year when a furniture sales is hapenning requires more sales assistances

Question 13

explain one reason why cash flow forecatsing is important to a business

Answer 13

it will tell you if you’ll have enough cash to run the business or expand it. It will also show you when more cash is going out of the business than in

Question 14

explain one reason why diseconomies of scale may occur

Answer 14

when a company or business grows so large that the costs per unit increase

Question 15

explain one reason why businesses continually design new products

Answer 15

• to target new markets, -increase market share,
  -sell more
  -increase revenue

Question 16

outline one reason why a business would read reports issued by goverments

Answer 16

• if a government reported that it was going to reduce the amount of money people would have to spend by increasing income tax, this could mean that peole might nor purchase more products