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WorksheetsEdexcel Business Theme 1 2022 AI
Total questions: 22
Worksheet time: 11mins
Niche market is
Unsegmented
Small
smaller segment of a larger market, where customers have specific needs and wants
largest part of the market, where there are many similar products on offer
Market share is
quantity of total market sales of a product/business
share of the total market that is owned by a product/business
sales revenue of a product/business
share capital of a business
Innovation in a dynamic market can best be described as...
Can result in added value
Newly invented product
Enables firms to charge higher prices
Better or improved product
Qualitative research using a focus group will require
Random sampling
Stratified/Quota sampling
Statistical numerical analysis
a product orientated approach
"examining customer purchasing patterns and looking at the demographics and psychographics of customers to build predictive profiles" can best be described as
Product orientated approach
Use of social networking to support market research
Database marketing
Market mapping
"splitting up a market into different types of customers to enable a business to better target its products to the relevant customers" can best be described as
Market Positioning
Market segmentation
Market Mapping
Market Research
Which of the following will shift supply to the right
Increase in wages
Introduction of new technology
Increase in indirect tax
Increase in flooding
Which of the following which shift supply left
Fall in cost of production
Cut in indirect tax
Cut in government subsidies
Improvement in delivery time by suppliers
Intermediaries are
a form of direct marketing
Producers and wholesalers
Wholesalers and retailers
Retailers and consumers
Which of the following illustrates a change in distribution to reflect social trends:
Disney streaming service rather than selling DVDs
BP moving from oil-based energy to solar-powe energy
Gymshark advertsiing on TikTok
BMW (Munich) have a quota of at least 30% women on their board of directors
Which one of the following is a charactertistic of an entrepreneur
Shows initiative
Problem solving
Communication
Good at planning
Which of the following is a non-financial reason why people set up a business
Profit maximisation
Keeping shareholders satisfied
Earning enough to have an enjoyable lifestyle
Social objectives
An advantage of a sole traders is
You do not have to inform the Inland Revenue for VAT purposes
You get to keep all the net profit
Business affairs are public
Limited liability
A disadvantage of sole trader is
Problem of continuity
You are your own boss
Easy to start up
Business affairs are private
Amount of capital each partner should provide (i.e. starting cash).
How profits or losses should be divided.
How many votes each partner has (usually based on proportion of capital provided).
Rules on how to take on new partners.
How the partnership is brought to an end, or how a partner leaves
This is known as
Certificate of incorporation
Royalty payments
Deed of partnership
Share issue certificate
The advantage of a sole trader becoming a partnership are
Spreads risk
Shares profit
Less control
Lack of finance
In a private limited company
there is less paperwork to do, because the business does not have to register with Companies House and file annual financial reports.
the business’s financial information remains private
any new shareholders need to be invited, which protects the business from outside influence
there is unlimited liability
Shares in a public limited company (plc) can be traded on the Stock Exchange and can be bought by members of the general public.
The issued share capital of a plc (the initial value of the shares put on sale) must be greater than £? in a plc
£5,000
£50,000
£500,000
£5,000,000
A disadvantage of a PLC is
additional funds for the business and can be a raised. When shares in a "plc" are first offered for sale to the general public as the company is given a "listing" on the Stock Exchange.
Paying a higher rate of Corporation Tax
Financial information is private
Shareholders expect a steady stream of income from dividends, which might mean that the business has to concentrate on short term profits over market share
Franchising arises when
a franchisee grants a licence (franchise) to another business (franchisor) to allow it trade using the brand / business format
a franchisor grants a licence (franchise) to another business (franchisee) to allow it trade using the brand / business format
A franchise is bought by the franchisor
The franchisee is the business whose sells the right to another business to operate a franchise
A disavantage to the Franchisee
Less investment is required at the start-up stage since the franchise business idea has already been developed
Cost to buy franchise can be very expensive and have to pay a percentage of your profit to the business you have bought the franchiser from.
Cost to buy franchise can be very expensive and have to pay a percentage of your revenue to the business you have bought the franchiser from.
Lack of marketing and staff training support from the franchisor
A = Profits are reinvested for one or more social purposes in the community, rather than the need to satisfy investors
B = maintaining a sense of control over work-life balance
A and B are
A= lifestyle business
B = social enterpise
A= social enterprise
B= lifestyle business
A=partnership
B = online business
A= online business
B = partnership
