2024 O/N - 2

How is industry defined?

• activities that lead to the satisfying of human wants

• buying and selling products

• extraction, manufacturing and construction

• provision of direct services

What is an advantage of specialisation to factory workers?

• better production quality

• fewer tools used

• improved skills

• over-production

Mr. X has started a business selling cheese to Germany.

Which types of interrelated commercial activities is Mr. X involved in?

• commercial services and direct services

• commercial trade and direct services

• export trade and commercial services

• import trade and commercial services

What is a feature of a multiple chain store?

• centralised purchasing

• less than five branches

• many departments

• wide range of services

Why is the branding of goods important for self-service store?

• Customers can identify the goods they require.

• Goods are less likely to be damaged.

• Perishable goods may be stored for long periods.

• Prices of goods are clearly marked.

The diagram shows a customer buying goods from a retailer.

• loyalty schemes

• mobile retailing

• omnichannel retailing

• showrooming

Which method of credit is most likely to be used to buy a new luxury car?

• credit card

• extended credit

• hire purchase

• informal credit

The diagram shows three channels of distribution for goods.

Which statement best explains why wholesalers have been eliminated from channels 2 and 3?

• Manufacturers are producing goods that are perishable.

• Manufacturers are selling goods that do not require storage.

• Manufacturers are trying to reduce costs and increase profits.

• Manufacturers want to control the supply of goods.

A retailer purchased goods from a wholesaler and received an invoice for $10 000. The wholesaler then sent the retailer a credit note for $2000.

How much does the retailer owe the wholesaler?

• $2000

• $8000

• $10 000

• $12 000

How much would a buyer save when given a cash discount of 2.5% on an item originally priced at $600?

• $5

• $15

• $24

• $30