Mr Frayne A Level Theme 1 Mixed

Which is the best definition for the dynamic nature of a business?

• The idea that business is ever changing because of external factors

• The idea that business need to change their product range every month to remain up to date.

• The idea people within business change their minds all the time.

• The idea business needs to change its location every month to remain competitive.

Figure 1 shows the annual total revenue of £1 200 000 for five businesses.

What is the market share for Business 2?

• 12.5%

• 20.8%

• 25.0%

• 29.2%

Economies of scale is when production is cheaper because you are making more of a product.

This is likely to help _________ more.

• Mass marketed products

• Niche marketed products

What is a niche market?

• A market in which businesses sell to a large customer group with similar needs.

• A market in which businesses sell to a variety of customers.

• A market in which businesses sell to a small customer group with specific needs.

• A market in which businesses sell one product to many consumers.

Chocolate flavoured ice-cream is.........

• A product in a niche market

• A product in both markets

• A product in a mass market

• Very tasty

Example of

• Ansoff's Matrix

• Boston Matrix

• Market Mapping

• Market Segmentation

The target market of a Caribbean cruise ship holiday is couples aged 65 years and over with a keen interest in travel. This is an example of segmentation according to:

• Income and gender

• Age and location

• Lifestyle and age

• Gender and location

Discount supermarkets, such as Aldi and Lidl, are most likely to segment the market according to:

• Gender

• Location

• Age

• Income

What is one of the reasons why Marks & Spencer charges more for their food than Aldi?

• Convenience

• Branding

• Quality

• Design

The Law of Supply states:

• as price increases, supply increases
• as prices decrease, supply increases