Edexcel A Level Business -
Theme 1: Marketing and
People Questions with correct
solved answers.
Adding value - CORRECT ANSWER✅✅The process of adding value to the cost of
inputs through the production process in order to charge a higher price
Advertising - CORRECT ANSWER✅✅Paid for communication aimed at encouraging
people to purchase a product
Advertising - CORRECT ANSWER✅✅Paid for communication aimed at encouraging
people to purchase a product
Aesthetics - CORRECT ANSWER✅✅How a product is designed to look in order to
appeal to a consumer and offer differentiation
Agents - CORRECT ANSWER✅✅A specialist type of distributor that doesn't hold stock
and usually works in the tertiary sector (travel, insurance, publishing)
Agents - CORRECT ANSWER✅✅A specialist type of distributor that doesn't hold stock
and usually works in the tertiary sector (travel, insurance, publishing)
Aim - CORRECT ANSWER✅✅The overall vision for what the business wants to
achieve
Autocratic / Authoritarian - CORRECT ANSWER✅✅A leadership style where the
manager makes all of the decisions and employees are told what to do and how to do it
Bias - CORRECT ANSWER✅✅Where the opinion of the person interferes with their
answers and judgements
Bonuses - CORRECT ANSWER✅✅An additional payment made to an employee as a
reward for completion of a task / meeting a target
Boston Matrix - Cash Cow - CORRECT ANSWER✅✅A product that has high market
share but in a low growth market. They are successful, established products that won't
require much investment
,Boston Matrix - Cash Cow - CORRECT ANSWER✅✅A product that has high market
share but in a low growth market. They are successful, established products that won't
require much investment
Boston Matrix - CORRECT ANSWER✅✅A model used to analyse the strategic
position of a product and brand portfolio, by looking at market share and market growth
Boston Matrix - CORRECT ANSWER✅✅A model used to analyse the strategic
position of a product and brand portfolio, by looking at market share and market growth
Boston Matrix - Dog Product - CORRECT ANSWER✅✅A product that has low market
share and operate in a low growth market. This means these products might break even
but will rarely be worth investing in.
Boston Matrix - Dog Product - CORRECT ANSWER✅✅A product that has low market
share and operate in a low growth market. This means these products might break even
but will rarely be worth investing in.
Boston Matrix - Problem Child / Question Mark - CORRECT ANSWER✅✅A product
that has low market share but operate in a high growth market. These products have
potential but require investment to hopefully gain market share and become Stars
Boston Matrix - Problem Child / Question Mark - CORRECT ANSWER✅✅A product
that has low market share but operate in a high growth market. These products have
potential but require investment to hopefully gain market share and become Stars
Boston Matrix - Star Product - CORRECT ANSWER✅✅A product that has high market
share and high market growth. They have a large market share over competition in a
market that is growing.
Boston Matrix - Star Product - CORRECT ANSWER✅✅A product that has high market
share and high market growth. They have a large market share over competition in a
market that is growing.
Brand - CORRECT ANSWER✅✅A product that is easily distinguished from other
products (through a logo, style, slogan etc)
Brand - CORRECT ANSWER✅✅A product that is easily distinguished from other
products (through a logo, style, slogan etc)
Brand - CORRECT ANSWER✅✅A symbol, logo or design that is recognisable and
distinguishes a product from competitors
, Centralisation - CORRECT ANSWER✅✅An organisational structure where authority
rests with senior management at the centre of a business
Centralisation - CORRECT ANSWER✅✅An organisational structure where authority
rests with senior management at the centre of a business
Chain of command - CORRECT ANSWER✅✅The lines of authority within a business.
For example: Boss is responsible for Emp1, Emp2, Emp3. Further down, Emp2 is
responsible for Emp4 and Emp5.
Chain of command - CORRECT ANSWER✅✅The lines of authority within a business.
For example: Boss is responsible for Emp1, Emp2, Emp3. Further down, Emp2 is
responsible for Emp4 and Emp5.
Commission - CORRECT ANSWER✅✅Where in addition to a wage, an employee is
paid a percentage of the sale value. This is most commonly found in sales jobs, such as
a product or car salesperson
Competition - CORRECT ANSWER✅✅Other businesses that provide a similar product
/ service
Competitive Market - CORRECT ANSWER✅✅Where there are many rivals selling
similar products
Complementary goods - CORRECT ANSWER✅✅Products that are consumed or used
together, so are purchased together
Consumer behaviour - CORRECT ANSWER✅✅How consumers make decisions about
how they choose and use products and services
Corporate objective - CORRECT ANSWER✅✅Objectives set for the whole business
Cost minimisation - CORRECT ANSWER✅✅The process of ensuring that costs are
kept to their lowest possible amount
Cost plus pricing - CORRECT ANSWER✅✅A strategy where the prices is set by
applying a percentage margin to the unit cost. For example, adding 50% to the cost of
producing the product
Database - CORRECT ANSWER✅✅A collection of data stored electronically
Decentralisation - CORRECT ANSWER✅✅An organisational structure where authority
is delegated further down the hierarchy, away from the centre.
Theme 1: Marketing and
People Questions with correct
solved answers.
Adding value - CORRECT ANSWER✅✅The process of adding value to the cost of
inputs through the production process in order to charge a higher price
Advertising - CORRECT ANSWER✅✅Paid for communication aimed at encouraging
people to purchase a product
Advertising - CORRECT ANSWER✅✅Paid for communication aimed at encouraging
people to purchase a product
Aesthetics - CORRECT ANSWER✅✅How a product is designed to look in order to
appeal to a consumer and offer differentiation
Agents - CORRECT ANSWER✅✅A specialist type of distributor that doesn't hold stock
and usually works in the tertiary sector (travel, insurance, publishing)
Agents - CORRECT ANSWER✅✅A specialist type of distributor that doesn't hold stock
and usually works in the tertiary sector (travel, insurance, publishing)
Aim - CORRECT ANSWER✅✅The overall vision for what the business wants to
achieve
Autocratic / Authoritarian - CORRECT ANSWER✅✅A leadership style where the
manager makes all of the decisions and employees are told what to do and how to do it
Bias - CORRECT ANSWER✅✅Where the opinion of the person interferes with their
answers and judgements
Bonuses - CORRECT ANSWER✅✅An additional payment made to an employee as a
reward for completion of a task / meeting a target
Boston Matrix - Cash Cow - CORRECT ANSWER✅✅A product that has high market
share but in a low growth market. They are successful, established products that won't
require much investment
,Boston Matrix - Cash Cow - CORRECT ANSWER✅✅A product that has high market
share but in a low growth market. They are successful, established products that won't
require much investment
Boston Matrix - CORRECT ANSWER✅✅A model used to analyse the strategic
position of a product and brand portfolio, by looking at market share and market growth
Boston Matrix - CORRECT ANSWER✅✅A model used to analyse the strategic
position of a product and brand portfolio, by looking at market share and market growth
Boston Matrix - Dog Product - CORRECT ANSWER✅✅A product that has low market
share and operate in a low growth market. This means these products might break even
but will rarely be worth investing in.
Boston Matrix - Dog Product - CORRECT ANSWER✅✅A product that has low market
share and operate in a low growth market. This means these products might break even
but will rarely be worth investing in.
Boston Matrix - Problem Child / Question Mark - CORRECT ANSWER✅✅A product
that has low market share but operate in a high growth market. These products have
potential but require investment to hopefully gain market share and become Stars
Boston Matrix - Problem Child / Question Mark - CORRECT ANSWER✅✅A product
that has low market share but operate in a high growth market. These products have
potential but require investment to hopefully gain market share and become Stars
Boston Matrix - Star Product - CORRECT ANSWER✅✅A product that has high market
share and high market growth. They have a large market share over competition in a
market that is growing.
Boston Matrix - Star Product - CORRECT ANSWER✅✅A product that has high market
share and high market growth. They have a large market share over competition in a
market that is growing.
Brand - CORRECT ANSWER✅✅A product that is easily distinguished from other
products (through a logo, style, slogan etc)
Brand - CORRECT ANSWER✅✅A product that is easily distinguished from other
products (through a logo, style, slogan etc)
Brand - CORRECT ANSWER✅✅A symbol, logo or design that is recognisable and
distinguishes a product from competitors
, Centralisation - CORRECT ANSWER✅✅An organisational structure where authority
rests with senior management at the centre of a business
Centralisation - CORRECT ANSWER✅✅An organisational structure where authority
rests with senior management at the centre of a business
Chain of command - CORRECT ANSWER✅✅The lines of authority within a business.
For example: Boss is responsible for Emp1, Emp2, Emp3. Further down, Emp2 is
responsible for Emp4 and Emp5.
Chain of command - CORRECT ANSWER✅✅The lines of authority within a business.
For example: Boss is responsible for Emp1, Emp2, Emp3. Further down, Emp2 is
responsible for Emp4 and Emp5.
Commission - CORRECT ANSWER✅✅Where in addition to a wage, an employee is
paid a percentage of the sale value. This is most commonly found in sales jobs, such as
a product or car salesperson
Competition - CORRECT ANSWER✅✅Other businesses that provide a similar product
/ service
Competitive Market - CORRECT ANSWER✅✅Where there are many rivals selling
similar products
Complementary goods - CORRECT ANSWER✅✅Products that are consumed or used
together, so are purchased together
Consumer behaviour - CORRECT ANSWER✅✅How consumers make decisions about
how they choose and use products and services
Corporate objective - CORRECT ANSWER✅✅Objectives set for the whole business
Cost minimisation - CORRECT ANSWER✅✅The process of ensuring that costs are
kept to their lowest possible amount
Cost plus pricing - CORRECT ANSWER✅✅A strategy where the prices is set by
applying a percentage margin to the unit cost. For example, adding 50% to the cost of
producing the product
Database - CORRECT ANSWER✅✅A collection of data stored electronically
Decentralisation - CORRECT ANSWER✅✅An organisational structure where authority
is delegated further down the hierarchy, away from the centre.
