Luxury Goods Flashcards
1
Q
1
A
Business is vulnerable to changes in average incomes
2
Q
2
A
If many people lose their jobs, there will be a fall in incomes
3
Q
3
A
This will lead to a significant fall in demand for a business’s goods as consumers switch to cheaper alternatives
4
Q
4
A
Leading to a fall in revenue resulting in a fall in gross profit
5
Q
5
A
Could lead to them making an operating loss putting them under pressure to reduce their expenses
6
Q
6
A
Could involve selling their non-current assets such as stores and factories
7
Q
7
A
Reducing scale
