Tag: Edexcel

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This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – Fewer managers in a flat structure due to having fewer layers in the structure.
2. Correct – A flat organisational structure e.g. where there are few levels/layers in the hierarchy. A small number of levels/layers results in better communication between managers and workers at Electromac. Because of a small number of levels there are fewer managers therefore decisions can be made more quickly than with other structures.
3. Not correct – A flat organisational structures tend to have a wide span of control due to managers having more employees under their direct authority.
4. Not correct – A long chain of command would have more layers than a flat organisational structure such as Electromac.

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This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – export prices will now be cheaper for foreign buyers
2. Correct –Depreciation of a currency is a decrease in the value of a country’s currency relative to one or more foreign currencies. The pound has depreciated meaning that European and American buyers need to exchange less of their own currency to buy the same number of pounds. This means that UK exports are now cheaper in Europe and America so the demand for exports increases.
3. Not correct – imports will now be more expensive to the UK businesses and therefore orders will decrease.
4. Not correct – import prices will increase as more pounds have to be exchanged for the same amount of euros and dollars.

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This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – Electromac is introducing a new technology, not aiming to force rivals out by offering a price so low it will not recover costs such as research and development.
2. Correct – Price skimming is a pricing strategy used by businesses to initially set a high price for a new product which will reduce over time. Hard-core games players will pay higher prices to have the next generation equipment as soon as it is available. This allows Electromac to maximise its revenues in the early stages of the new Kenyo launch and price skimming will allow Electromac to recoup R&D costs and still make profit.
3. Not correct – using standard mark-up pricing will not take advantage of the introduction of new technologies and the long-awaited launch of a next generation Kenyo.
4. Not correct – Electromac’s new technology means there are no immediate competitive substitutes so they don’t need to offer a competitive price yet.

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This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – because penetration pricing would not be needed as there is less competition and demand is likely to be price inelastic.
2. 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.
3. Not correct – because special offers are unlikely to be used as the product is more important than the price.
4. Not correct – because the cost would be prohibitive for a small company and is more suitable for a mass market.

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This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – because Bob is making one-off clothing so will not be concerned over how quickly he produces each piece of clothing.
2. 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.
3. 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.
4. Not correct – because designer clothes are not made for everyday wear (i.e. functional).

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