The Multiple Choice Questions Blog

Price discrimination is …?

Select ONE answer:

1. Charges the same price for the same goods
2. Sets a price by adding percentage to costs
3. Uses a high price to enter a market
4. Uses a low price to enter a market
5. Sets different prices for different customers for the same good or service

Give a real-life example of price discrimination:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 5 – Price discrimination is the practice of charging a different price for the same good or service.

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In the figure below, Product A is a?

Select ONE answer:

1. Dog
2. Cash cow
3. Star
4. Problem child
5. Panther

What actions are firms likely to take with this type of product?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 1 – Dogs are products with low market share in a mature, slow-growing industry. These products typically “break even”, generating barely enough cash to maintain the business’s market share. Though owning a break-even product might provide the social benefit of providing jobs and possible synergies that assist other products, they are from an accounting point of view such a product is worthless, by not generating cash for the company. They depress a profitable company’s return on assets ratio, which is used by many investors to judge how well a company is being managed. Dogs should if possible be sold off.

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The axes of the Boston Matrix are?

Select ONE answer:

1. Market share and sales
2. Market share and market growth
3. Market growth and profits
4. Sales and time
5. Profits and cash

What is meant by a market share?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 2 – BCG matrix is a corporate planning tool, which is used to portray firm’s brand portfolio on a quadrant which has a relative market share axis (horizontal axis) and a speed of market growth axis (vertical axis).

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The Boston Matrix is an example of?

Select ONE answer:

1. Productivity analysis
2. Promotional pricing
3. Segmentation analysis
4. Market research
5. Product portfolio analysis

What is meant by a market segment?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 2 – Like Ansoff’s matrix, the Boston Matrix is a well known tool for the marketing manager. It was developed by a large US consulting group called Boston Consulting and is an approach to product portfolio planning. It has two determining aspects namely relative market share (which is relative to your competition) and market growth.

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A “Question Mark” product in the Boston Matrix has?

Select ONE answer:

1. Low sales in a slow-growth market
2. Low sales in a high-growth market
3. High sales in a slow-growth market
4. High sales in a high-growth market
5. is a mature product

Identify and give an example of ONE high-growth and ONE mature market you have seen recently:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 2 – A Question Mark has a low market share or sales in a fast-growing market. Whilst this type of product is likely to generate some revenue it may not be enough to sustain rapid growth and it may become a net consumer of cash as it struggles to retain its market share.

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