Measuring Business Success and Business Failure

Which of the following is a possible cause of business failure owing to ineffective marketing?

• Charging a price that's too high

• Investing too much in fixed assets

• over borrowing

• relocating production to a country where wages are lower

What term describes a business that begins trading with insufficient capital?

• overtrading

• undercapitalised

• overdrawn

• insolvent

Which of the following is most likely to cause a cash flow problem?

• obtaining a bank overdraft

• investing too little in innovation

• spending too much on expensive fixed assets

• a weak marketing strategy

overtrading might occur if a business tries to do which of the following

• expand too quickly

• take over a rival

• sell in overseas markets

• outsource production

This business failed because it failed to respond to the success of the iPhone

• Nokia

• Motorola

• Blackberry

• Ericsson

This company turned down the opportunity to buy Netflix

• Microsoft

• Disney

• Blockbuster

• 20th Century Fox

This company let Steve Jobs have much of the key research that helped launch Apple's success

• Microsoft

• IBM

• Dell

• Xerox

Which of the following is most likely to be used by shareholders to measure the success of a business

• revenue

• dividend growth

• the quality of customer service

• social impact

which of the following might be used by a business to help measure customer satisfaction

• online survey

• labour turnover

• sales forecasts

• cash flow forecast statement

employees might measure the success of a business by looking at

• dividend growth

• turnover

• job security

• net profit margin