Edexcel A-Level Business Paper 3 QUESTIONS AND ANSWERS LATEST UPDATE market definition anywhere buyers and sellers meet mass market aim and eg aimed at everyone eg. cornflakes pros of mass markets (2) - large market - economies of scale

Edexcel A-Level Business Paper 3 QUESTIONS AND ANSWERS LATEST UPDATE market definition anywhere buyers and sellers meet mass market aim and eg aimed at everyone eg. cornflakes pros of mass markets (2) - large market - economies of scale economies of scale definition spread your costs over a large number of units cons of mass markets (2) - more competition - more expensive to operate in niche market definition and eg small subset of the market with specific needs eg. children's wheelchairs pros of a niche market (2) - less competition - can charge more cons of a niche market (2) - less customers - can quickly attract competition if successful market share formula (Sales of business / total sales in market) x 100 market value formula avg price x no. of units sold market growth formula (change / original) x 100 dynamic market definition and eg a market subject to rapid or continuous change eg. tech what challenges do you face from more competition? - product differentiation - promotion -competitive pricing - place (accessibility to your product for customers eg online) Net profit Operating profit - Financing costs and tax OR Revenue - Cost of sales - Fixed overheads - Financing costs and tax Profitability The extent to which a business is able to make a profit. Liquidity The extent to which a business is able to use cash to meet debts as they are due.