Unit 7 Business Decision Making – Practice Questions & Worked Answers 2026

Unit 7 Business Decision Making –
Practice Questions & Worked Answers
2026




start up a business - ANSWER ✔✨---show potential investors there is a market for the product



Gap in the market - ANSWER ✔✨---Represents opportunities for companies to expand:

Business

Customer base



Finding a gap can be done by:

Businesses strengths

Finding a niche

Developing/improving/copying

Research trends



Competitors - ANSWER ✔✨---Rival against another business that offers similar product



Can carry out competitor analysis - gives a competitive advantage

, Location

Pricing



competitor analysis - ANSWER ✔✨---an organized approach for evaluating the strengths and
weaknesses of current or potential competitors' marketing strategies



Current Trends - ANSWER ✔✨---Ability to respond to changes in economic,market and social
trends



economic trends - ANSWER ✔✨---Increase in the size and power of corporations



market trends - ANSWER ✔✨---Shifting preferences in the market. Trends reflect changing
opinions, habits, and ideas that can affect what types of products and services customers will buy.



Social Trends - ANSWER ✔✨---The patterns of change in society



Likely demands - ANSWER ✔✨---Can be discovered through market research



Size of market

Price

Sale volume/turnover

Consumer views



Developing business - ANSWER ✔✨---Generates new ideas if outdated may switch to competitors



Changes in economic climate - ANSWER ✔✨---The general state of regional,national or global
economy



Reflects state of jobs and market