Month: August 2020

What is Qualitative data?

Select ONE answer:

1. Information about opinions, judgements and attitudes
2. Goods or services sold to foreign buyers
3. Part of a market that contains a group of buyers with similar buying habits
4. Raw materials such as coal, oil, copper, iron ore and wheat

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy imports high quality pasta from Southern Italy for sale at his delicatessen in Stafford.

The exchange rate between the pound (£) and the euro (€) is important for Lucy.

She buys 100 kg of pasta every month. The price of pasta is €5 per kg.

Pasta is made from wheat.

In 2019, good weather led to a large increase in the wheat harvest.

Which of the following is the most likely effect of this increase?

Select ONE answer:

1. The price of wheat will fall.
2. Lucy will have to pay more for her pasta.
3. The cost of wheat will rise.
4. The demand for wheat will fall.

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy imports high quality pasta from Southern Italy for sale at his delicatessen in Stafford.

The exchange rate between the pound (£) and the euro (€) is important for Lucy.

She buys 100 kg of pasta every month. The price of pasta is €5 per kg.

In June the exchange rate changed to £1.00 = €1.20 from €1.25. What effect would this have on Lucy’s business?

Select ONE answer:

1. The cost of importing pasta from Italy stays the same.
2. Her net cash flow will improve.
3. The euro price of pasta will rise.
4. Her import costs will rise.

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy imports high quality pasta from Southern Italy for sale at his delicatessen in Stafford.

The exchange rate between the pound (£) and the euro (€) is important for Lucy.

She buys 100 kg of pasta every month. The price of pasta is €5 per kg.

In May, the exchange rate is £1.00 = €1.25. How much does Lucy have to pay to buy her pasta?

Select ONE answer:

1. £625
2. £500
3. £400
4. £250

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy was fed up with having her smartphone stolen; four times in the last year! She used her design background to develop ‘NoPhoneTheft’, a lightweight but strong case which secured the phone within it. The design made it very difficult for anyone to steal a smartphone.

Lucy hoped that her invention would be of interest to mobile phone manufacturers. There were few similar products like this on the market.

Which ONE of the following is the most important for Lucy in spotting a new business opportunity?

Select ONE answer:

1. Being able to produce his product cheaply.
2. Being a keen cyclist.
3. Having a large amount of personal savings.
4. Knowing who his possible competitors were.

Show the workings to arrive at your answer, and explain and justify your reasons: