A sole trader business has unlimited liability. One key feature of unlimited liability is that;
they are responsible for all of their debts
they are working with a number of other people
they cannot get finance from a bank
they work on their own
Which ONE of the following is an external factor that could impact on product development?
Departmental communication
New Legislation
Staffing Costs
Store layout
A restaurant has created a new pizza dough recipe for their pizzas. Which ONE of the following is a legal issue they need to consider to protect their new pizza dough recipe?
Business plan
Discrimination
Inflation
Patent
Which of the following may be a reason for a small business to complete market research?
To advertise for a new sales manager
To aid decision-making about their product
To inform staff of changes to their product
To help track stock levels
Which of the following is an aspect of the design mix model that contributes to the successful design of a new handbag?
A design which has an appealing appearance
A design which is cheaply priced
A design which is produced by a computer program
A design which is widely advertised
Which of the following is an economic external factor that could affect product development?
Change in pricing
Change in taxation
Copyright challenge
Digital Development
Which of the following correctly represents the stages of the product lifecycle?
A shoe shop is on a retail park that has two other shoe shops. It is moving to a retail park with only clothes and household goods shops.
This will help the business to achieve:
cheaper advertising
lower production costs
product differentiation
reduced variable costs
A variable cost can be best defined as;
a cost that cannot be measured
a cost that changes with demand
a cost that changes with output
a cost that increases and decreases
Which of the following is a typical benefit to the business of the growth stage of the product lifecycle?
Competition increases
Profit margins improve
Sales volumes peak
Highest price is set
Which of the following would be effective in attracting and retaining customers in a mobile phone sales franchise?
A delivery fee is charged on all new phones
A single brand of phone is sold
An extended warranty is offered on all phones
Phone sales are by appointment only
If you advertised your intended new business on different social media platforms and asked a large number of people to invest money into the business, you would be looking for which source of capital?
A group loan
Business angel financing
Crowdfunding
Social media funding
Which of the following is an example of price skimming?
Keeping the price of a fashion trainer high to make it exclusive
Keeping the price of a fashion trainer low so that more customers
can afford it
Pricing a new fashion trainer in line with other fashion trainers
Setting a high price for a new fashion trainer at first and lowering
it over time
Which of the following would be considered an ‘extension strategy’?
Advertising a weekend sale deal on an existing range of tablet
cases
Applying competitive pricing to a new range of smart watches
Creating new packaging for an existing range of video games
Developing a customer service strategy to be used by all staff
As a new business owner you may use ‘desk research’ to research competitors’ products.
Which of the following is a benefit of using ‘desk research’?
It allows you to gain information about your specific product
It allows you to gain the views of a large number of potential
customers
The cost of accessing information is usually low
The information available is always accurate
Which of the following would help to achieve product differentiation for a new business selling school trainers?
A marketing campaign aimed at school children
Offering a range of sizes and colours
Producing personalised trainers with the name printed on them
Setting up an online-only business to reduce fixed costs