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AS business test

1. Tesco plc, owned by British entrepreneur Jack Cohen, has a large workforce made up of employees ranging from full-time permanent to part time seasonal staff. Workers feel that Jack takes the time to listen to their views and often allows staff to vote on decisions. Which of the following management styles would most apply to Jack Cohen? A Democratic B Paternalistic C Autocratic D Laissez Faire

Answer

(1)

(b) Explain why this answer is correct. (3)

2. Burger King conducts secondary research in order to assist in improving its market position as one of the leading fast food restaurants. Which of the following is not an example of secondary research? A In-depth interviews with customer B Using market intelligence reports C Information from the published records of McDonald’s D Articles in the weekly grocer magazine Answer (1)

(b) Explain why this answer is correct. (3)

The retail price of Apple iPods fell. broadband and free evening and weekend telephone calls to new customers. on average. (3) . In January 2008 Sky TV introduced a £16 promotional package which offered satellite TV. (3) 4. by 50% between 2007 and 2009.Name AS business test 3. Which of the following is most likely to happen as a result of the above A An increase in the price offered by Virgin TV for their satellite package B A decrease in the demand for the Radio Times (TV guide magazine) C A decrease in demand for Virgin’s satellite TV D A decrease in the price of recordable DVD players Answer (1) (b) Explain why this answer is correct. The most likely explanation for this was: A A rise in consumer incomes B The rate of tax on profits was increased C Price of substitutes fell D Productivity of workers manufacturing iPods fell Answer (1) (b) Explain why this answer is correct.

Which of the following is not a market segment for the above businesses? A Makeup artists B Beauticians C Boots stores D Teenage girls Answer (1) (b) Explain why this answer is correct.net serve different segments of the market for cosmetic products. tastes and preferences C Employee wage costs D Weather Answer (1) (b) Explain why this answer is correct. Asda used to enjoy a competitive advantage over its main rivals Tesco and Sainsburys by supplying free home delivery to its customers. Which of the following is least likely to be a factor which directly affects the supply of a product or service? A Natural disasters B Fashion. (3) . Strawberry. (3) 6.Name AS business test 5.

B niche marketing. the founder of The Body Shop. showed the typical characteristics of a successful entrepreneur. (3) .Name AS business test 7. Which one of the following is a least likely characteristic of a successful entrepreneur? A Risk averse B Flexibility/adaptability C Self-confidence D Resilience Answer (1) (b) Explain why this answer is correct. D market sampling. (3) 8. The establishment of Polish food shops and restaurants in Britain is evidence of (1) A market mapping. The Daily Telegraph reported that ‘Polish food shops and restaurants are continuing to open up and thrive on Britain’s high streets’. Answer (1) (b) Explain why this answer is correct. This trend continued to 2009. In April 2006. The late Anita Roddick. C adding value.

(3) 10. a town in the north of England. Before Sunny Delight mass produced its soft drinks.Name AS business test 9. Which one of the following might be regarded as the most likely reason for a business like Sunny Delight to undertake product trials? (1) A An increase in interest rates B To segment the market C To assess the possible demand for a product D To reduce liability Answer (1) (b) Explain why this answer is correct. When Sue Wragg opened up her hair salon in the Mailbox shopping mall in Birmingham. (3) . she considered a number of ways to add value. it underwent product trials in Carlisle. Which one of the following is least likely to add value for Sue’s clients? (1) A Creating a website for supporting clients’ on-line bookings B Furnishing the waiting area with leather sofas C Increasing prices D Providing magazines and refreshments for clients Answer (1) (b) Explain why this answer is correct.

each correct answer is worth 1 point 1. Competitive advantage 2. Quantitative data 4. Paul Lindley set up a children’s healthy drinks and snacks company known as Ella’s Kitchen. Sampling 3. Paul spent the first 18 months developing and positioning his product.Name AS business test 11. In 2004. Which one of the following would Paul have been most likely to use when positioning Ella’s Kitchen products? (1) A Transport cost information B Cash-flow forecasting C A knowledge of competitors’ products D Business development grants from the local council Answer (1) (b) Explain why this answer is correct. Ethical stance . (3) Define the following key terms.

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