AS Business Studies Unit 1 Re-Exam

Name:_______________
Marks:_______/44
1.

IKEA announced a rise in operating profits to 10 million. This information necessarily means that IKEAs
A total revenues must have risen substantially
B operating costs must have reduced
C surplus of sales over costs increased
D prices rose substantially
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2.

If the value of the (pound sterling) rose against the euro,

This change would have most likely benefited European
A tourists holidaying in England
B exporters who sold their products in the UK
C consumers, because overall the inflation rate fell as a result
D importers, because they were able to improve their profit margins
Answer ______________

Explanation:
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3. Sports channels like STAR Sports, ESPN, STAR Cricket, and Fox Sports target a niche of sports lovers.
Which of the following is true about niche markets?

A Prices tend to be low

B Supply tends to be high
C The number of consumers is relatively low
D The quality is good

Answer ______________

Explanation:
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4. The electronic product market in the United Kingdom (UK) is highly segmented.
In a segmented market there will always be

A many competitors in the segmented market

B small differences in sales levels between regions
C consumers needs cannot be satisfied
D distinct types of products to meet varied preferences of consumer types
Answer ______________

Explanation:
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Pierres Personalised T-Shirts

Pierre is a university student. He started up a one-man business by himself since he was 19. He sells
T-shirts and prints slogans and messages on them as requested by customers. The market for
personalized T-Shirts is competitive and fast-growing. There are a number of firms in the market
and the market grows 5% per year.

Pierres T-shirts have both women and mens cutting. The sizes of T-shirts range from XXS to XXL.
Larger or smaller sizes are available upon requests by customers. Also, the quality of his T-shirts is
good as they are made by 100% cotton.

As Pierre had limited funds available but was able to use his skills in website design to create
a website to promote his business and allow online purchasing on the website. He received at least
100 online orders daily and his shop became more famous.

There are even a few organizations and schools approached Pierre to order T-Shirts. Pierre is
planning to expand his business by hiring staff to help him after he graduated from university. Pierre
believed that his business will continuous to grow in the future. His family and friends are all being
very supportive of his business and planning to provide funds for him to run the business.

9) Using the case study, state and explain three entrepreneurial characteristics that best describe Pierre. (6)

10) Explain why it was a good idea for Pierre to sell the T-shirts online. (4)

11) Evaluate the likely value to Pierre of using market mapping. (8)