This multiple-choice question is suitable for Business Studies KS4 & KS5 classes
The answer is 2
Not correct – because penetration pricing would not be needed as there is less competition and demand is likely to be price inelastic.
Correct – A niche market is a small part of the overall market that has certain special characteristics or marketing strategies e.g. the combination of the 4Ps used to promote the product to the target market to achieve their goals. The Big Adventure Company only offers a small range of holidays and is not targeting the mass holiday market so focuses on specific types of holidays. Specialist magazines will be read by the target market and therefore provide the most effective means of communication.
Not correct – because special offers are unlikely to be used as the product is more important than the price.
Not correct – because the cost would be prohibitive for a small company and is more suitable for a mass market.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
Not correct – because there will be fewer management positions as no additional managers are being employed.
Not correct – because an increased span of control means managers have less time with each employee.
Correct – Definition of span of control e.g. the number of employees under a manager’s direct control or definition of organisational structure e.g. the number of layers in the business or definition of wider span of control e.g. managers will have more employees to control/supervise. Although more employees have been recruited there has been no change to the number of layers within the organisational structure. This will increase output without increasing layers/overheads
Not correct – because it will be more difficult to control the increased number of employees because the number of managers has not increased.
This multiple-choice question is suitable for Business Studies KS4 & KS5 classes
The answer is 2
Not correct – because Bob is making one-off clothing so will not be concerned over how quickly he produces each piece of clothing.
Correct – Design Mix refers to the proportions in which the function, aesthetics and economic manufacture are combined in the overall design. As a designer, Bob will be more concerned with how the clothing looks (i.e. the aesthetic aspect of the design mix). Often catwalk designs sell because of what they look like rather than the function or price of the clothing.
Not correct – because economic manufacture is concerned with how cheaply a product can be made for and designer clothes have high price tags and one-off consumers are not mainly concerned with low prices.
Not correct – because designer clothes are not made for everyday wear (i.e. functional).
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