Author: stuart001uk2014

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

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

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.

Jo’s Floorings is a business that installs linoleum floors, is considering the market positioning of its new range of wooden flooring products. 

Which of the following is a method of market positioning?

Select ONE answer:

1. Product range
2. Market sampling
3. Market mapping
4. Product orientation

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 3

1. Not correct
2. Not correct
3. Correct ==> Definition of market positioning: How you differentiate your brand, product or service from your competitors, in the mind of the customer.  Market mapping is a diagram illustrating a range of positions a business, product or service can take in a market based on any two variables that are important to customers.  By using market mapping Jo’s Floorings will be able to identify where it compares with competitors on variables such as high versus low price, and linoleum versus wooden flooring.
4. Not correct

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