Edexcel Business A level
Paper 1 (Themes 1 and 4)
Questions with Answers
Solved.
Adapting to change - CORRECT ANSWER✅✅In order to adapt to change businesses
must be:
Flexible
Conducting market research
Investing
Continually improving
Developing a niche
Added value - CORRECT ANSWER✅✅Added value is the difference between the
price of the finished product and the cost of making it.
Added value as an extension strategy - CORRECT ANSWER✅✅Adding value to a
product in some way like adding new feature to an iPhone can keep it in the maturity
stage for longer.
Advertising - CORRECT ANSWER✅✅Advertising promotes the product or service to
its target market using various methods like TV ads, Billboards ect.
Advertising as an extension strategy - CORRECT ANSWER✅✅Advertising can be
used to get a new audience and keep the product in the maturity stage for longer.
Advertising jobs in specialist trade publications - CORRECT ANSWER✅✅This method
involves advertising vacancies in magazines or newsletters commonly read by
professionals in a particular industry.
Aesthetics - CORRECT ANSWER✅✅How the product appeals to customers in terms
of looks, feel, scent.
Aim - CORRECT ANSWER✅✅A long term goal achieved through setting objectives
Aims of a Mass Market - CORRECT ANSWER✅✅- Create a product with universal
appeal
- Aim for leadership of the largest market segment
- Building strong brands
,- Exploit economies of scale to earn high profits
Appreciation - CORRECT ANSWER✅✅When one currency's value increases in
relation to another currency
ASEAN - CORRECT ANSWER✅✅A trading bloc consisting of countries within
Southeast Asia to promote growth, social progress and socio-cultural evolution.
Assessing countries as markets - CORRECT ANSWER✅✅Disposable income
Ease of doing business
Infrastructure
Political stability
Assessing countries as production locations - CORRECT ANSWER✅✅Cost of
production
Skills and availability of labour
Infrastructure
Location in a trading bloc
Government incentives
Ease of doing business
Political stability
Natural resources
Likely return on investment
Autocratic leadership - CORRECT ANSWER✅✅Leader has complete control over
decision making with little to no input form others.
Barriers to entrepreneurship - CORRECT ANSWER✅✅Support and finance
Lack of viable business idea
Gender
Basic law of demand - CORRECT ANSWER✅✅Demand varies inversely with price, as
price decreases demand increases.
Basic law of supply - CORRECT ANSWER✅✅As the price of a product rises,
businesses will increase supply to the market.
Benefits for the franchisee - CORRECT ANSWER✅✅+ Tested and developed format
+ Advice, support and training
+ Easier to raise finance
+ Lower risk
Benefits for the franchisor - CORRECT ANSWER✅✅+ Proven growth strategy
+ Enables rapid geographical growth with minimal investment
,Benefits from international trade - CORRECT ANSWER✅✅+ Export revenues and jobs
reduce poverty
+ Lower prices for consumers as markets are more competitive
+ Technology is spread
+ Knowledge and skills cross borders
+ Economies of scale
+ Better use of scarce resources
Benefits of a flat structure - CORRECT ANSWER✅✅+ Promotes a culture of
collaboration and open communication
+ Decision-making can be faster and more efficient
+ Encourages creativity and innovation, as employees have more autonomy and
flexibility
+ All of the above increases efficiency and motivation
Benefits of a joint venture - CORRECT ANSWER✅✅+ JV partners can benefit from
each others resources
+ Reduces the risk of a growth strategy especially when entering a new market or
diversifying
Benefits of a loss leader - CORRECT ANSWER✅✅+ Attracts more customers
+ Cross promotion
Benefits of a matrix structure - CORRECT ANSWER✅✅+ Promotes cross-functional
collaboration and communication
+ Allows for specialisation and expertise within each functional area
+ Enables efficient allocation of resources and coordination of multiple projects
+ All of the above increases efficiency and motivation
Benefits of a tall structure - CORRECT ANSWER✅✅+ Provides a clear hierarchy of
authority and defined roles and responsibilities
+ Promotes specialisation and expertise within each department or function
+ Offers opportunities for career advancement and promotion within the organization
+ All of the above increases efficiency and motivation
Benefits of adding value - CORRECT ANSWER✅✅+ Can charge higher prices
+ Protection against cheaper competitors
+ Focuses business on its target market
+ Unique selling point (USP)
Benefits of advertising - CORRECT ANSWER✅✅+ Wide coverage
+ Control over the message
+ Effective for building brand loyalty and awareness
, Benefits of advertising jobs online - CORRECT ANSWER✅✅+ Can reach a wide range
of people
+ Relatively low costs
Benefits of being a sole trader - CORRECT ANSWER✅✅+ Quick and easy to set up
+ Minimal paperwork
+ Easy to shut down
Benefits of being in a partnership - CORRECT ANSWER✅✅+ Minimal paperwork
+ Relatively easy to set up
+ Can benefit from a range of skills and expertise
+ Easier to raise finance
Benefits of branding - CORRECT ANSWER✅✅+ Adds value
+ Can charge higher prices
+ Builds customer loyalty
+ Reduces price elasticity of demand
Benefits of competitive pricing - CORRECT ANSWER✅✅+ Easy to calculate
+ Low risk
+ Can be combined with other pricing strategies
Benefits of cost plus pricing - CORRECT ANSWER✅✅+ Easy to calculate
+ Price increases can be justified when costs rise
+ Can be confident that each product is being sold at a profit
Benefits of direct distribution - CORRECT ANSWER✅✅+ Cheap
+ Fast
+ Business has full control over distribution
+ Closer to consumer
Benefits of direct marketing - CORRECT ANSWER✅✅+ Targeted promotion
+ Personalised
+ Easy to measure the success of promotion
+ Cost effective
Benefits of external recruitment - CORRECT ANSWER✅✅+ Wider range of candidates
available
+ Get new ideas or skills
+ No future vacancy is created
Benefits of FDI - CORRECT ANSWER✅✅+ Take advantage of lower costs
+ Operate closer to raw materials
+ Avoid protectionist measures
+ Supports growth strategies like market development
Paper 1 (Themes 1 and 4)
Questions with Answers
Solved.
Adapting to change - CORRECT ANSWER✅✅In order to adapt to change businesses
must be:
Flexible
Conducting market research
Investing
Continually improving
Developing a niche
Added value - CORRECT ANSWER✅✅Added value is the difference between the
price of the finished product and the cost of making it.
Added value as an extension strategy - CORRECT ANSWER✅✅Adding value to a
product in some way like adding new feature to an iPhone can keep it in the maturity
stage for longer.
Advertising - CORRECT ANSWER✅✅Advertising promotes the product or service to
its target market using various methods like TV ads, Billboards ect.
Advertising as an extension strategy - CORRECT ANSWER✅✅Advertising can be
used to get a new audience and keep the product in the maturity stage for longer.
Advertising jobs in specialist trade publications - CORRECT ANSWER✅✅This method
involves advertising vacancies in magazines or newsletters commonly read by
professionals in a particular industry.
Aesthetics - CORRECT ANSWER✅✅How the product appeals to customers in terms
of looks, feel, scent.
Aim - CORRECT ANSWER✅✅A long term goal achieved through setting objectives
Aims of a Mass Market - CORRECT ANSWER✅✅- Create a product with universal
appeal
- Aim for leadership of the largest market segment
- Building strong brands
,- Exploit economies of scale to earn high profits
Appreciation - CORRECT ANSWER✅✅When one currency's value increases in
relation to another currency
ASEAN - CORRECT ANSWER✅✅A trading bloc consisting of countries within
Southeast Asia to promote growth, social progress and socio-cultural evolution.
Assessing countries as markets - CORRECT ANSWER✅✅Disposable income
Ease of doing business
Infrastructure
Political stability
Assessing countries as production locations - CORRECT ANSWER✅✅Cost of
production
Skills and availability of labour
Infrastructure
Location in a trading bloc
Government incentives
Ease of doing business
Political stability
Natural resources
Likely return on investment
Autocratic leadership - CORRECT ANSWER✅✅Leader has complete control over
decision making with little to no input form others.
Barriers to entrepreneurship - CORRECT ANSWER✅✅Support and finance
Lack of viable business idea
Gender
Basic law of demand - CORRECT ANSWER✅✅Demand varies inversely with price, as
price decreases demand increases.
Basic law of supply - CORRECT ANSWER✅✅As the price of a product rises,
businesses will increase supply to the market.
Benefits for the franchisee - CORRECT ANSWER✅✅+ Tested and developed format
+ Advice, support and training
+ Easier to raise finance
+ Lower risk
Benefits for the franchisor - CORRECT ANSWER✅✅+ Proven growth strategy
+ Enables rapid geographical growth with minimal investment
,Benefits from international trade - CORRECT ANSWER✅✅+ Export revenues and jobs
reduce poverty
+ Lower prices for consumers as markets are more competitive
+ Technology is spread
+ Knowledge and skills cross borders
+ Economies of scale
+ Better use of scarce resources
Benefits of a flat structure - CORRECT ANSWER✅✅+ Promotes a culture of
collaboration and open communication
+ Decision-making can be faster and more efficient
+ Encourages creativity and innovation, as employees have more autonomy and
flexibility
+ All of the above increases efficiency and motivation
Benefits of a joint venture - CORRECT ANSWER✅✅+ JV partners can benefit from
each others resources
+ Reduces the risk of a growth strategy especially when entering a new market or
diversifying
Benefits of a loss leader - CORRECT ANSWER✅✅+ Attracts more customers
+ Cross promotion
Benefits of a matrix structure - CORRECT ANSWER✅✅+ Promotes cross-functional
collaboration and communication
+ Allows for specialisation and expertise within each functional area
+ Enables efficient allocation of resources and coordination of multiple projects
+ All of the above increases efficiency and motivation
Benefits of a tall structure - CORRECT ANSWER✅✅+ Provides a clear hierarchy of
authority and defined roles and responsibilities
+ Promotes specialisation and expertise within each department or function
+ Offers opportunities for career advancement and promotion within the organization
+ All of the above increases efficiency and motivation
Benefits of adding value - CORRECT ANSWER✅✅+ Can charge higher prices
+ Protection against cheaper competitors
+ Focuses business on its target market
+ Unique selling point (USP)
Benefits of advertising - CORRECT ANSWER✅✅+ Wide coverage
+ Control over the message
+ Effective for building brand loyalty and awareness
, Benefits of advertising jobs online - CORRECT ANSWER✅✅+ Can reach a wide range
of people
+ Relatively low costs
Benefits of being a sole trader - CORRECT ANSWER✅✅+ Quick and easy to set up
+ Minimal paperwork
+ Easy to shut down
Benefits of being in a partnership - CORRECT ANSWER✅✅+ Minimal paperwork
+ Relatively easy to set up
+ Can benefit from a range of skills and expertise
+ Easier to raise finance
Benefits of branding - CORRECT ANSWER✅✅+ Adds value
+ Can charge higher prices
+ Builds customer loyalty
+ Reduces price elasticity of demand
Benefits of competitive pricing - CORRECT ANSWER✅✅+ Easy to calculate
+ Low risk
+ Can be combined with other pricing strategies
Benefits of cost plus pricing - CORRECT ANSWER✅✅+ Easy to calculate
+ Price increases can be justified when costs rise
+ Can be confident that each product is being sold at a profit
Benefits of direct distribution - CORRECT ANSWER✅✅+ Cheap
+ Fast
+ Business has full control over distribution
+ Closer to consumer
Benefits of direct marketing - CORRECT ANSWER✅✅+ Targeted promotion
+ Personalised
+ Easy to measure the success of promotion
+ Cost effective
Benefits of external recruitment - CORRECT ANSWER✅✅+ Wider range of candidates
available
+ Get new ideas or skills
+ No future vacancy is created
Benefits of FDI - CORRECT ANSWER✅✅+ Take advantage of lower costs
+ Operate closer to raw materials
+ Avoid protectionist measures
+ Supports growth strategies like market development
