Month: July 2021

In October 2014, Apple announced that it was no longer going to manufacture and sell its sixth-generation iPod Classic MP3 player. 

The most likely reason for this decision is?

Select ONE answer:

1. environmental considerationsthe iPod Classic was not a well-known product
2. very high profit margins from the iPod Classic
3. less competition from other MP3 players in the market
4. the end of the iPod Classic’s product life cycle

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Definition of product life cycle e.g. the different stages a product passes through from introduction to withdrawal or eventual demise.  The iPod Classic has already been extended 6 times and had declining revenue & sales.  The IPod cannot be extended again in a profitable way so is no longer being manufactured.

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A UK Retailer had suppliers in the Rana Plaza building, Bangladesh, that collapsed in 2013. Employees of these suppliers were then paid by the UK Retailer until 2015. 

This demonstrates what of the UK Retailer?

Select ONE answer:

1. environmental considerations
2. fair trade agreement
3. health and safety regulations
4. ethical considerations

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Definition of ethical considerations: these are about doing the right thing and what is morally correct. The UK Retailer’s clothes suppliers and their employees would not be able to earn any income while they dealt with the impact of the tragedy.  They are under no obligation to support its suppliers and therefore this demonstrated their ethical behaviour.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Retailer Alex International offers free tasting of food and drink products to its customers every day.

The MOST LIKELY reason for offering free samples to customers is?

Select ONE answer:

1. to identify potential bias
2. to encourage a purchase
3. to measure market size
4. to increase product safety

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – Definition of free samples: small amounts of a product given to consumers without charge.  Alex offers free samples every day as an incentive to its customers to taste products they may not have tried before. Customers may like the sample products offered, leading to regular purchases, product loyalty and increased sales.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The MOST LIKELY explanation for this was the?

Select ONE answer:

1. increasing strength of the Japanese currency
2. increasing unemployment level in Japan
3. increasing rate of inflation in Japan
4. increasing Japanese interest rates

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct ==> Definition of a strengthening currency; its value is increasing and will buy more of other currencies OR definition of an exchange rate; The price of one currency expressed in terms of another currency.  Japanese buyers now get more sterling for their yen as the yen has appreciated against the sterling.  This makes Lucy Michelle products cheaper for buyers in Japan so demand has increased.
2. Not correct
3. Not correct
4. Not correct

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Business Referral Networking UK offers the opportunity to buy one of its franchises for £25 000.

Which ONE of the following is an advantage of buying a franchise?

Select ONE answer:

1. Product rangeBuyer keeps all the profit
2. Buyer chooses own suppliers
3. Buyer makes all the decisions
4. Buyer uses existing brand name

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct ==> Definition of franchise; A business model that allows an individual or business to acquire a licence to use another firm’s branding, product knowledge and systems for a prescribed period of time.  Business Referral Marketing UK a licence to trade using their brand name, products and business systems at a cost of £25 000.  Franchisees who buy into the Business Referral Marketing UK franchise may find it easier and less risky to build a successful business with an existing brand name rather than start with a new and unknown business name.

This work is licensed under a Creative Commons Attribution 4.0 International License.