Level 1/2 CamNat Enterprise & Marketing (R064/01)

A sole trader business has unlimited liability. One key feature of unlimited liability is that ...

• ... they are responsible for all of their debts.

• ... they are working with a number of other people.

• ... they cannot get finance from a bank.

• ... they work on their own.

Which ONE of the following is an external factor that could impact on product development?

• Departmental communication

• New legislation

• Staffing costs

• Store layout

A restaurant has created a new pizza dough recipe for their pizzas. Which ONE of the following is a legal issue they need to consider to protect their new pizza dough recipe?

• Business plan

• Discrimination

• Inflation

• Patent

Which of the following may be a reason for a small business to complete market research?

• To advertise for a new sales manager

• To aid decision-making about their product

• To help track stock levels

• To inform staff of changes to their product

Which of the following is an aspect of the design mix model that contributes to the successful design of a new handbag?

• A design which has an appealing appearance

• A design which is cheaply priced

• A design which is produced by a computer program

• A design which is widely advertised

Which of the following is an economic external factor that could affect product development?

• Change in pricing

• Change in taxation

• Copyright challenge

• Digital development

Which of the following correctly represents the stages of the product lifecycle?

• Development, Introduction, Growth, Maturity, Decline

• Development, Introduction, Maturity, Growth, Decline

• Introduction, Development, Growth, Maturity, Decline

• Maturity, Development, Introduction, Growth, Decline

A shoe shop is on a retail park that has two other shoe shops. It is moving to a retail park with only clothes and household goods shops.

This will help the business to achieve:

• cheaper advertising

• lower production costs

• product differentiation

• reduced variable costs

A variable cost can be best defined as:

• a cost that cannot be measured

• a cost that changes with demand

• a cost that changes with output

• a cost that increases and decreases

Which of the following is a typical benefit to the business of the growth stage of the product lifecycle?

• Competition increases

• Profit margins improve

• Sales volumes peak

• Highest price is set