BTEC TECH AWARD - ENTERPRISE Exam All Possible Questions and Answers with complete solution

What is promotion? - Answer-Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. What is the purpose of promotion? - Answer-inform, persuade, remind. What is a brand image? - Answer-A set of beliefs and opinions associated with a product, service or enterprise in the minds of consumers. Benefits of PR - Answer-Free positive publicity from a neutral source such as a newspaper. Reaches a wide audience. Improve brand image and sales. Limitations of PR - Answer-Enterprise has no control over how journalists may write up the story - If the story is 'negative' consumers may not want to be associated with brand image. News story may not be picked up by the media. Difficult to measure impact on reputation. Methods of promotion? - Answer-Advertising, sales promotion, personal selling, public relations, direct marketing. What is the purpose of advertising? - Answer-Inform or persuade. What is B2B market? - Answer-An enterprise sells its goods to another enterprise. Also, B2B stands for business to business. What is B2C market? - Answer-An enterprise sells it's products - goods and services - directly to individuals for their own use. What are psychographic segments? - Answer-Likes and dislikes, values, attitudes, interests, lifestyle, personality.What is the process of financial documents? - Answer-Purchase order - delivery note - invoice - receipt - credit note - statement of account. What types of payment methods are there? - Answer-Debit card, credit card, cash, direct debit, payment technologies, cheque. What are the main two types of running costs? - Answer-Fixed costs and variable costs. Name 4 types of fixed costs? - Answer-Heating and lighting charges, rent, business rates, insurance. Calculating turnover? - Answer-Turnover = Price per item X Quantity sold Calculating retained profit? - Answer-retained profit = Net profit - Amount of net profit paid to owners of enterprise. Calculating net profit? - Answer-Net profit = Gross profit - Expenditure. Examples of assests? - Answer-Cars/trucks, computer equipment, machinery, business premises, inventory, cash in the bank and money owed to the business by it's customers. Types of capital? - Answer-Business loan, retained profit, money invested in the enterprise by the owner. Gross profit margin? - Answer-(Gross profit ÷ sales revenue )x 100