Tag: GCSE

What is the importance of market share to businesses?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 2 – Market share is the proportion of a market served by a particular brand or business. Gaining market share is classed as a financial (as opposed to non-financial) aim or objective when starting up a business. It cannot be calculated without knowledge of market size, which is summarised in Option A. Option C is a definition of a market segment. Option D is a definition of a ‘share’ in a business.

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What is meant by a business adding value?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – Customer needs and expectations concern: price – value for money; quality – products/services that are fit for purpose; adequate choice – so that at least one product closely matches each customer’s needs; convenience – products/services that can be quickly and easily accessed.

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What are the principle sources of finance for start-up businesses?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answers are 3 and 5 – The main purposes of business activity (and roles of a business enterprise) are to produce goods or services, to meet customer needs and to add value (in order to generate income and wealth for business owners). Finance may need to be raised and jobs may be created in order to fulfill these purposes/roles, but these are not reasons why businesses exist.

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Tyler is a small independent shoe store. It is located on a local high street. A new hypermarket that sells shoes as part of its product offering has just been built at the bottom of the high street. Tyler has seen its sales fall in recent months and the owner is looking at ways he can compete more effectively.

Which ONE of the following is MOST LIKELY to help reduce Tyler’s costs in an effort to compete more effectively?

Select ONE answer:

1. Increase its advertising in the local newspaper
2. Provide better service by taking on more staff
3. Increase the range of its shoes
4. Ordering cheaper shoes from its suppliers
5. Relocating to new premises

What are the other things that Tyler could do become more competitive through cost reduction?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 4 – Cheaper shoes will allow Tyler to reduce the price he charges and allow him to be more competitive as a result against his larger rival.

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Valerie owns a dairy farm in Cornwall. In 2007 she decided to use some of the milk they produce to make their own brand of ice cream. After analysing the local competition they developed a brand called Truro’s best. It is very rich and creamy and is sold at a premium price. Most of their customers are in the catering industry – hotels and restaurants. Valerie has now an established product range and can also produce ice cream in any flavour to order.

Which ONE of the following suggests that there was an opportunity in the local market for Valerie’s ice cream to enter?

Select ONE answer:

1. Unemployment in the region was rising
2. Ice cream is made from milk
3. There was only one supplier of premium-priced ice-cream in the area
4. The pound is getting stronger against the Euro
5. Large ice-cream manufacturers can supply ice-cream to order

What are other things would you consider to be important in determining whether there is an opportunity for Valerie in the premium ice-cream market?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – if there is only one other supplier then there is an opportunity for Valerie to enter the local market as she can supply an established product range and flavours to order.

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