Possible Exam Questions Flashcards
Which of the following activities is most likely to be carried out by the marketing function of a clothes shop
Set the price of a product
If a total revenue is equal to the total cost of business will…
Break even
Name one reason why a business needs to segment its market
Its customers require different benefits from a product
Name and example of a technological development which may affect product development
Launch of the new production machinery
Name and example of a fixed cost for a shoe retailer
Insurance fork shop premises
Sources of capital which usually involves individuals contributing finance by buying equity in the business
Crowdfunding
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
Royalty payments have to be made to the franchisor
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
2900
Divide in the market by age occupation or income is the technique known as…
Market segmentation
Limited liability means that
Owners do not risk losing personal possessions to repair the debts of the business
What is the name given to a pricing strategy which usually involves all the prices and the 99p
Psychological pricing
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
Business objectives
The functional area of the business would be responsible for developing which new products meet the customers needs
this is called
Marketing
Which of the following is a method which a customer may use to get feedback on the business
Customer comment card
What example of a method to add value to a product
Improve the specification of the product
Purposes of market research
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
Examples of primary research marketing
Observation Postal services Telephone interviews Online surveys Face-to-face surveys Focus groups
The benefits of carrying out primer a market research
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
Benefits of running a business as a sole trader
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
Explain what it is meant by the term unique selling point
A price which customers are willing to pay however the price must be different to other shops
Explain one legal factor which may affect the development of an ice cream shop planning to sell limited edition citrus flavour ice cream
Products safety
Or
Copyright
Identify three product lifestyle extension strategies which could be used by your business in the future
Advertising
Price change
New packaging
Explain one reason why your business plan is needed
And outlines your goals, who you want to come or how long you want to last
Explain what is meant by point of sale advertised
Creating competition such as buy one get one free or buy one get your next free
Identify two sales promotion techniques which you could use
Coupons
Point card
Identify one line on a typical breakeven graph
Revenue
Staying explain to decisions which the breakeven graph may help you to make
Predicaments-reject the effect of cost and efficiency changes on profitability or predict changes
Relationship-otherwise the relationship of fixed costs and variable costs
A sole trader business has unlimited liability
Okay feature of a liability is that…
They are responsible for their own debts
What is an external factor lack of impact on product development
New legalisation
What is the following legal issue that needs to be considered to protect their new pizza dough recipe
Patent
Why should a small business complete market research
Toaid decision-making about their product
What is an aspect of the design mix model that contributes to the successful design of new handbags
A design which has an appealing appearance
What is an economic external factor that could affect product development
Change in taxation
What is the order of the stages of the project lifecycle
Development introduction growth maturity and decline
Variable costs can be best defined as
Just that changes with input
what is an example of price skimming
Set on a high price for a new fashion trainer at the first and lowering it overtime
What is considered as an extension strategy
Creating new packaging for exist in the range of video games
Identify two items that may be detailed in a business plan
Business objectives Business strategies Sales plan Marketing plan Financial forecast
