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Developing business - ANSWER ✔✨---Generates new ideas if outdated may switch to competitors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