Theme 1 & 2 mixed questions

Which two of the following are methods of internal (organic) business growth?

• Acquisition

• Changing the marketing mix

• Innovation

• Merger

• Takeover

Which one of the following would best describe the term 'tariff?'

• A good (or service) brought into a country from another country

• A fee levied on goods (or services) brought into a country

• A good (or service) leaving one country to another country

• A political and economic union between countries

Which one of the following is the third phase of the product life cycle?

• Decline

• Growth

• Introduction

• Maturity

Which two of the following are external reasons why a business's aims and objectives may change as it evolves?

• A change in ownership

• A change in the business structure

• Age of the business

• Changes in the level of competition

• New legislation

Which one of the following is not directly related to an element of the marketing mix?

• Product life cycle

• Retailing

• Sponsorship

• Training

Which one of the following is most likely to be a barrier to effective communication?

• Flow production

• Poor customer service

• Tariffs

• The use of jargon

Which one of the following would best describe the term 'trade bloc?'

• A group of buildings within an area of a city where people can go to buy goods and services

• A high rise building where the buying and selling of goods and services takes place

• A political and economic union between countries

• A restriction placed on the sale of a particular type of good or service

If sales revenue is £360,000 and net profit is £44,000, which one of the following is the nest profit margin rounded as a %?

• 8%

• 12%

• 88%

• 122%

Answer explanation

The net profit margin is the proportion of revenue left over after all costs have been deducted. It is calculated as follows: (Net profit/sales revenue) x 100.

Therefore: (£44,000/360,000 x 100 = 12.22%, rounded to 12%)

Which two of the following are external sources of finance for a growing and established business?

• Bank loan

• Director's loan

• Retained profit

• Sale of business assets

• Stock market flotation

If the rate of exchange between the British Pound and the Euro is 1 GBP = €1.15, which one of the following would be the cost in Euros, of one of its product priced at £28?

• €24.35

• €26.85

• €32.20

• €41.07