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2 (a) Which two of the following are examples of secondary market research? Select two answers - Edexcel - GCSE Business - Question 2 - 2020 - Paper 1
Question 2
2 (a) Which two of the following are examples of secondary market research? Select two answers. - Focus group - Internet - Market report - Observation - ... show full transcript
Worked Solution & Example Answer:2 (a) Which two of the following are examples of secondary market research? Select two answers - Edexcel - GCSE Business - Question 2 - 2020 - Paper 1
Step 1
Which two of the following are examples of secondary market research?
Answer
The correct answers are B - Internet and C - Market report.
- The Internet is a common source for secondary data, as it provides access to existing market reports, studies, and statistics.
- A Market report, similarly, is a documented analysis of market conditions that is used for decision-making purposes.
Step 2
Which two of the following are examples of variable costs?
Answer
The correct answers are C - Packaging and D - Raw materials.
- Packaging is a variable cost as it depends on the level of production; more units produced require more packaging.
- Raw materials are also variable costs because their costs fluctuate based on the production output.
Step 3
Using the information in Table 1, calculate the net cash flow for this month. You are advised to show your workings.
Answer
To calculate the net cash flow for the month, we can use the following formula:
Net Cash Flow = Total Cash Inflows - Total Cash Outflows
Total Cash Inflows:
Selling Price per unit: £15
Units sold: 200
Total Inflows = 200 units * £15 = £3,000
Total Cash Outflows:
- Rent: £500
- Wages: £1,000
- Advertising: £150
Total Outflows = £500 + £1,000 + £150 = £1,650
Net Cash Flow = £3,000 - £1,650 = £1,350.
Step 4
Explain one disadvantage of starting a small business as a partnership.
Answer
One disadvantage of starting a small business as a partnership is that partners share the profits. This can sometimes lead to conflicts over profit distribution, and if one partner is perceived to be contributing less, it may create friction. Additionally, partners are jointly responsible for the debts of the business, which can create personal financial risk.
Step 5
Explain one way the marketing mix of a small business may change due to changing consumer needs.
Answer
One way the marketing mix may change due to changing consumer needs is through product adjustments. For instance, if consumers are increasingly seeking sustainable products, a small business may need to adapt its product offerings by introducing eco-friendly alternatives. This change not only reflects consumer preferences but also positions the business as responsive to market trends.