Business QUIZ 2 GRADE 9

What is the role of technology in modern marketing?

• Technology plays a crucial role in modern marketing by facilitating data-driven strategies, enhancing customer engagement, and automating processes.

• Technology is irrelevant to customer engagement.

• Technology is only used for product manufacturing.

• Technology has no impact on marketing strategies.

How can technology enhance customer engagement?

• By limiting access to customer feedback

• By increasing product prices

• By reducing the number of customer interactions

• By offering personalized experiences and real-time communication.

What are trade discounts and how do they work?

• Trade discounts are penalties for late payments.

• Trade discounts are mandatory fees charged by sellers.

• Trade discounts are price reductions offered by sellers to buyers, based on purchase volume or buyer-seller relationships.

• Trade discounts are only available to new customers.

List two types of trade discounts commonly used in business.

• Loyalty discounts

• Promotional discounts

• Quantity discounts, Seasonal discounts

• Cash discounts

What is a cash discount and why is it offered?

• A cash discount is a penalty for not paying in cash.

• A cash discount is a price reduction for early payment of an invoice.

• A cash discount is a fee for late payment of an invoice.

• A cash discount is a tax applied to all purchases.

How does a cash discount benefit both the seller and buyer?

• A cash discount benefits buyers by reducing costs and sellers by improving cash flow.

• A cash discount has no impact on cash flow for sellers and does not affect buyers' expenses.

• A cash discount increases the overall price for buyers and decreases sales for sellers.

• A cash discount only benefits the seller by attracting more customers without any cost reduction for buyers.

Define markup in the context of pricing strategies.

• Markup is the percentage of sales revenue that goes to advertising.

• Markup is the selling price minus the profit margin.

• Markup is the difference between the cost of a product and its selling price, expressed as a percentage of the cost.

• Markup is the total cost of producing a product.

What is a markdown and when is it typically applied?

• A markdown is a discount applied only during holidays.

• A markdown is a price reduction applied to products to encourage sales.

• A markdown is a price increase to boost profits.

• A markdown is a type of clothing fabric.

How do markups and markdowns affect profit margins?

• Markups and markdowns are irrelevant to profit margins.

• Markups generally increase profit margins, while markdowns can decrease them.

• Both markups and markdowns have no effect on profit margins.

• Markups decrease profit margins, while markdowns increase them.

Explain the concept of breakeven analysis.

• Breakeven analysis is used to calculate employee salaries.

• Breakeven analysis focuses on market trends and consumer behavior.

• Breakeven analysis helps businesses understand the minimum sales needed to avoid losses.

• Breakeven analysis determines the maximum profit a business can achieve.