Year 9 Business Gap-Analysis

Which one of the following is a disadvantage of providing a niche product or service?

• Less competition than for a mass market product

• Low scale production can be flexible and responsive to change

• Demand may be affected by changes in trends and fashions

• May be possible to charge a premium price

Which one of the following is an area of competitor strengths a business should analyse?

• Total number of employees

• Number of competing businesses in the market

• Standard of customer service

• Location of suppliers

Which one of the following is an example of market segmentation?

• Interview

• Questionnaire

• Observation

• Income

Which one of the following is an example of primary market research?

• Observation

• Internet

• Market Report

• Government Statistics

Which is a disadvantage of secondary market research?

• Time consuming to collect and analyse

• Requires substantial financial investment

• Research data may not be up-to-date

• Specialist training and skills required to conduct effectively

Which one of the following could be classed as a financial aim for a business start-up?

• Growing the number of employees

• Increase profits by 15%

• To satisfy a personal challenge

• To sell a product line that benefits the local community

Which one of the following is an example of a non-financial aim for a new start-up business?

• Increase market share

• Survival

• Financial security

• Independence

Which one of the following could be classed as a variable cost?

• The managing director's monthly salary of £2000

• The wages paid at £8.50 per hour

• The buildings insurance premium of £590 per annum

• The rent payment of £1200 per month

Jon can only afford to pay £150 in interest per year. Calculate the highest interest rate that Jon can afford to pay on a loan of £2400.

• 17%

• 6.25

• 6.25%

• 8.25%

Which one of the following is a definition of the break-even level of output?

• The level of output where total fixed costs equal total revenue

• The level of output where total fixed costs equal total variable costs

• The level of output where total revenue equals total variable costs

• The level of output where revenue equals total costs