Theme 2 Summary quiz Part 2

Which of the following is a drawback to a business of developing a new, differentiated product?

• Costs of research and development are usually high

• Opportunity to generate high profits 

• Business may be able to charge high prices

• Customers will perceive the product as unique

Market data usually relates to information regarding:

• The financial performance of an individual business

• Internal data that a business generates, such as sales figures

• General trends in a market, such as if a market is growing

• Legislation that all businesses must stick to in that market

Which of the following types of business ownership would enable a business to finance growth through a stock market flotation?

• A sole trader

• A partnership

• A private limited company

• A public limited company

Which of the following is a potential advantage to a business of having a consistently high labour turnover?

• Recruitment and selection costs will be lo

• Labour productivity rate will be high

• It will gain a positive reputation as a good employer

• New ideas may be introduced into the workplace

Which of the following describes the way in which a business uses product, price, promotion and place to market and sell its goods/services?

• A competitive advantage

• A market segment

• The target market

• The marketing mix

Which of the following is a disadvantage of centralisation?

• Decisions made may not be in line with the overall business aims

• Increased costs of training

• Inconsistent decision making across the organisation

• Low levels of motivation amongst junior managers

The table below shows some financial information for a planned business expansion:

Based on this information, which of the following is the correct average rate of return for this investment?

• 4.76%

• 5%

• 5.26%

• 20%

The correct formula to calculate a percentage change across time is:

• New number – Old number / Old number

  x 100

• Old number – New number /

  Old number

  x 100

• New number – Old number / New number

  x 100

• Old number – New number / New number

  x 100

A business recruits an employee to work for 40 hours a week for a period of six months only. Which of the following best describes this way of working?

• Full time permanent employment

• Full time temporary employment

• Part time permanent employment

• Part time temporary employment

Exports are a feature of global markets. Which of the following is an example of a UK export?

• A bicycle made in the UK sold to a business in the UK

• A bicycle made in Italy sold to a business in the UK

• A bicycle made in the UK sold to a business in Spain

• A bicycle made in the USA sold to a business in Germany