Tag: Business Studies

Which ONE of the following could be the effect on small businesses if interest rates were to rise significantly?

Select ONE answer:

1. Improved net cash flow
2. The risk of insolvency is greater
3. Fixed costs will fall
4. Overdrafts will become cheaper

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

Which ONE of the following could be the effect on small businesses if interest rates were to rise significantly?

Select ONE answer:

1. Improved net cash flow
2. Reduced consumer demand
3. Fixed costs will fall
4. Overdrafts will become cheaper

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

Alex moved from Belgium with his family in 2014 to live in England. In 2016 he set up as a sole trader making unique ice creams, which he only sold to local retailers. His business soon prospered and he moved production to a small factory. Local retailers liked his ice cream as it was different. He realised that this could be the opportunity he was looking for to develop his business further.

Which ONE of the following is likely to lead to repeat purchases?

Select ONE answer:

1. Charging a higher price
2. Increasing ice cream production
3. Introducing a customer loyalty scheme
4. Having customer feedback sheets

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

Alex moved from Belgium with his family in 2014 to live in England. In 2016 he set up as a sole trader making unique ice creams, which he only sold to local retailers. His business soon prospered and he moved production to a small factory. Local retailers liked his ice cream as it was different. He realised that this could be the opportunity he was looking for to develop his business further.

Which ONE of the following is likely to lead to repeat purchases?

Select ONE answer:

1. Charging a higher price
2. Increasing ice cream production
3. Ensuring customer orders are accurate
4. Having customer feedback sheets

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

Alex moved from Belgium with his family in 2014 to live in England. In 2016 he set up as a sole trader making unique ice creams, which he only sold to local retailers. His business soon prospered and he moved production to a small factory. Local retailers liked his ice cream as it was different. He realised that this could be the opportunity he was looking for to develop his business further.

Alex has seen the price of milk, a commodity he uses, increase.

Which factor is the likely causes of this increase?

Select ONE answer:

1. Lower demand for milk
2. Milk farmers pay higher wages
3. Farmers increase milk production
4. Alex’s energy costs increase

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