Y11 Key terms (1)

What does cash flow refer to in a business context?

• The total profit made by a business
• The money that flows into and out of a business from sales and expenses
• The amount of money saved by a business
• The money borrowed by a business

How does competition in business affect pricing strategies?

• It only affects large corporations.
• It allows businesses to raise prices without concern.
• It encourages businesses to lower prices to attract customers.
• It has no effect on pricing strategies.

What is competitive pricing?

• Setting a price based on production costs
• Setting a price by comparing it to rival businesses
• Offering discounts to loyal customers
• Pricing products based on consumer demand

How does consumer income influence spending habits?

• Higher income typically allows for more spending on needs and wants.
• Spending is only influenced by advertising.
• Consumer income has no impact on spending.
• Higher income leads to less spending.

Which of the following best describes consumer rights?

• Rights that limit consumer access to products
• Rights that protect businesses from lawsuits
• Rights that ensure consumers receive quality products and services
• Rights that allow consumers to negotiate prices

What is crowdfunding?

• A method of raising finance through internet appeals from many small investors
• A strategy for reducing business expenses
• A way to secure loans from banks
• A type of investment in real estate

How do demographics help businesses in market segmentation?

• They are irrelevant to marketing strategies.
• They only focus on geographical locations.
• They provide insights into consumer preferences based on age, gender, and income.
• They only apply to large corporations.

What are the elements of the design mix of a product?

• Function, aesthetics, and cost
• Quality, brand, and price
• Marketing, sales, and distribution
• Features, packaging, and warranty

Why is distribution important in the supply chain?

• It only affects the pricing of products.
• It determines how products are marketed.
• It ensures products reach consumers efficiently.
• It is not relevant to business operations.

What is a dividend?

• A type of investment strategy
• A fee paid to customers for using a service
• A tax on business profits
• The share of profit received by a shareholder