Possible Exam Questions

Question 1

Which of the following activities is most likely to be carried out by the marketing function of a clothes shop

Answer 1

Set the price of a product

Question 2

If a total revenue is equal to the total cost of business will…

Answer 2

Break even

Question 3

Name one reason why a business needs to segment its market

Answer 3

Its customers require different benefits from a product

Question 4

Name and example of a technological development which may affect product development

Answer 4

Launch of the new production machinery

Question 5

Name and example of a fixed cost for a shoe retailer

Answer 5

Insurance fork shop premises

Question 6

Sources of capital which usually involves individuals contributing finance by buying equity in the business

Answer 6

Crowdfunding

Question 7

Alex is thinking of buying a franchise from a well-known chain of coffee shops
Which of the following is a disadvantage to
Alex coming to franchise

Answer 7

Royalty payments have to be made to the franchisor

Question 8

The owner of her by Harry LTD forecasts that it will cut the hair of 60 customers during its first month of opening the average price of a haircut will be £45
How much sales revenue will be made during the first month of trading

Answer 8

2900

Question 9

Divide in the market by age occupation or income is the technique known as…

Answer 9

Market segmentation

Question 10

Limited liability means that

Answer 10

Owners do not risk losing personal possessions to repair the debts of the business

Question 11

What is the name given to a pricing strategy which usually involves all the prices and the 99p

Answer 11

Psychological pricing

Question 12

A business aims to break even during its first year of trading which section of the business plan is most likely to include this information

Answer 12

Business objectives

Question 13

The functional area of the business would be responsible for developing which new products meet the customers needs
this is called

Answer 13

Marketing

Question 14

Which of the following is a method which a customer may use to get feedback on the business

Answer 14

Customer comment card

Question 15

What example of a method to add value to a product

Answer 15

Improve the specification of the product

Question 16

Purposes of market research

Answer 16

Aims to reduce uncertainty and risk

Aims to fill in a gap in the market

Provides information about variables involved in the decision on the possible outcomes of marketers decisions and actions

Question 17

Examples of primary research marketing

Answer 17

Observation
Postal services
Telephone interviews
Online surveys
Face-to-face surveys
Focus groups

Question 18

The benefits of carrying out primer a market research

Answer 18

So you what your customers prefer
To see if there is any gaps you could filling in the market
Reduces the risk of failure
Allows you to discuss and decide on a reasonable price

Question 19

Benefits of running a business as a sole trader

Answer 19

It’s cheap and easy to begin
They don’t need to employ any specialist services
You are in total control
You keep the profit as you are the owner

Question 20

Explain what it is meant by the term unique selling point

Answer 20

A price which customers are willing to pay however the price must be different to other shops

Question 21

Explain one legal factor which may affect the development of an ice cream shop planning to sell limited edition citrus flavour ice cream

Answer 21

Products safety
Or
Copyright

Question 22

Identify three product lifestyle extension strategies which could be used by your business in the future

Answer 22

Advertising
Price change
New packaging

Question 23

Explain one reason why your business plan is needed

Answer 23

And outlines your goals, who you want to come or how long you want to last

Question 24

Explain what is meant by point of sale advertised

Answer 24

Creating competition such as buy one get one free or buy one get your next free

Question 25

Identify two sales promotion techniques which you could use

Answer 25

Coupons | Point card

Question 26

Identify one line on a typical breakeven graph

Answer 26

Revenue

Question 27

Staying explain to decisions which the breakeven graph may help you to make

Answer 27

Predicaments-reject the effect of cost and efficiency changes on profitability or predict changes Relationship-otherwise the relationship of fixed costs and variable costs

Question 28

A sole trader business has unlimited liability | Okay feature of a liability is that...

Answer 28

They are responsible for their own debts

Question 29

What is an external factor lack of impact on product development

Answer 29

New legalisation

Question 30

What is the following legal issue that needs to be considered to protect their new pizza dough recipe

Answer 30

Patent

Question 31

Why should a small business complete market research

Answer 31

Toaid decision-making about their product

Question 32

What is an aspect of the design mix model that contributes to the successful design of new handbags

Answer 32

A design which has an appealing appearance

Question 33

What is an economic external factor that could affect product development

Answer 33

Change in taxation

Question 34

What is the order of the stages of the project lifecycle

Answer 34

Development introduction growth maturity and decline

Question 35

Variable costs can be best defined as

Answer 35

Just that changes with input

Question 36

what is an example of price skimming

Answer 36

Set on a high price for a new fashion trainer at the first and lowering it overtime

Question 37

What is considered as an extension strategy

Answer 37

Creating new packaging for exist in the range of video games

Question 38

Identify two items that may be detailed in a business plan

Answer 38

``` Business objectives Business strategies Sales plan Marketing plan Financial forecast ```